East Capital has launched a UCITS version of its successful China A-Shares strategy, providing investors with easier access to investment opportunities on the Chinese onshore equity markets.
The strategy, which aims to deliver long-term capital appreciation by investing in high-quality companies across China and which incorporates ESG considerations within its investment and stock selection process, will be benchmarked against the MSCI China A Index.
Peter Elam Håkansson, Chairman and CIO of East Capital, says: “East Capital has had an on-the-ground presence in Asia since 2010, giving us a superior level of expertise into investment opportunities in China and its A-Shares market. We see this launch as a natural step in the evolution of our China A-Shares strategy and one which builds on the terrific results that the team has been able to deliver to our clients since its inception in 2014. We believe that the UCITS structure offers the best format for our clients.”
“A-Shares are becoming increasingly attractive to investors, following the MSCI’s inclusion and the recognition that they typically are a better representation of the growth dynamics with a bias on consumption and services. In addition to this, valuations currently offer good entry points whilst we keep seeing a de-correlation from global indices, providing investors with a welcome layer of diversification to their equities portfolios.
“We continue to believe that companies embracing sustainable practices will enjoy competitive advantages and the ESG component of our strategies therefore continues to be a key focus for the business, both from a risk and opportunity perspective. Whilst emerging and frontier markets continue to make progress in these areas, there remain material differences between real and perceived ESG standards, which require in-depth analysis, insight and management.”
