Commerzbank C&M to launch China volatility UCITS in partnership with China Asset Management Co

Frankfurt-based Commerzbank has announced that its investment banking services division, Corporates and Markets (C&M) is to launch a new UCITS fund in partnership with China’s largest fund management company, China Asset Management Co (ChinaAMC). The firm, established in 1998, boasts assets under management totalling over RMB300 billion (USD44.9 billion) and has over 13 million investors. The new Lux-domiciled SICAV will be called Commerzbank China Volatility Target Fund and will look to invest in Chinese equities: China’s GDP is set to grow by 9.5 per cent in 2010 according to Citigroup’s summer forecast. And the two fund managers chosen to tap into this economic growth profile are ChinaAMC’s Michael Wen and Edward Wang. Using an all-cap growth strategy the fund will give both institutional and retail investors exposure to Chinese equities with target volatility expected to be 20 per cent. Typical to UCITS funds, volatility will be measured and adjusted accordingly on a weekly basis. Unfortunately neither fund manager was available to comment at the time of writing although Steve Muzzlewhite, a member of Commerzbank C&M’s institutional fund solutions team told the press: “In a market as complex and as fast changing as China, it’s essential to invest through a local manager who has the contacts, the on-the-ground insight and the cultural understanding to know where the real opportunities lie.” It’s not known at this stage how many assets the fund will launch with.