A new fund which focuses on long-term growth in mainland China is being launched by Aberdeen Asset Management.
The Aberdeen Global – China A Share Equity Fund is domiciled in Luxembourg and comes alive on 16 March, 2015. The fund will make use of Aberdeen’s RMB600m RQFII facility, which was granted to the Group’s Asian arm late last year.
It will be managed by the existing Asian Equities team which is based in Hong Kong and Singapore. The team has been investing in China since the 1980s.
The fund will focus on around 30 of the highest quality companies which, say Aberdeen, must have compelling, long term prospects.
Head of Chinese Equities at Aberdeen Asset Management Nicholas Yeo said: “While we are excited about its potential, China is going through a complex adjustment. A strategy of focusing on quality of growth is right but there will be legacy issues for years to come in the shape of bad debt, corporate malfeasance and even outright fraud. So with this fund we are not saying now is the right time to buy the market, but asking investors to consider China as a long-term proposition – one, furthermore, we have been working on indirectly for many years through the build-up of our team and mainland research. China may be a massive country but it is very much an emerging market that demands discipline and patience.”