Launch of the JB China Evolution Fund
There might still be short-term problems ahead for China’s credit-driven economic growth model, says Swiss & Global Asset Management, whose JB China Evolution Fund launched recently – but just watch how the consumer economy develops as the economy moves away from an over-reliance on investment toward increased domestic consumption.
Swiss & Global’s new fund, a Luxembourg-domiciled Sicav, aims at providing exposure to the thriving consumer and technology aspects of what will probably be the largest global economy in the next decade. The fund is run by Jian Shi Cortesi, who already managed the Julius Baer Asia Focus fund, and it aims to hold 30 to 50 core holdings which focus on companies that combine strong earnings growth with affordable valuations.
About 70% of the portfolio is being invested in consumer-related sectors, including also technology, healthcare, environmental protection and the broader consumer space. These were the areas that were mapped out as priorities for the next decade by last November’s third plenum meeting.
“The launch of this fund will allow investors to participate in investment opportunities created by the economic transition of China,” says Cortesi. Our existing in-house sector expertise in China’s new economy will help to identify undiscovered companies poised to start a strong earnings cycle.”