UBS’ All China Equity Fund made available to Hong Kong Retail Investors
The Securities and Futures Commission of Hong Kong has authorised UBS Asset Management’s UBS (Lux) Equity SICAV – All China fund, which has been available to professional investors since mid-2018, for distribution to retail investors in Hong Kong.
The fund provides access to China's offshore and onshore markets via a single portfolio and is managed by UBS’ Head of China Equities, Bin Shi, and his award-winning team.
Bin Shi said of the fund that “China is the world's second-largest economy but remains under-represented in global indices. However, the situation is being redressed and the inclusion of A-shares in global indexes is a growing long-term trend. In addition, China equities have undergone huge structural change over the last three years. Increasingly, stock performance is driven by fundamentals, which are a good basis for long-term investment.”
He added that “At the same time, structural changes to the economy in China including the urbanization, an aging population, innovation, and increasing consumer demand, remain intact and continue to drive the sectors we favour. We have also seen a range of stimuli in recent months via supportive government policy which can be expected to sustain growth through 2020.”
Through Stock Connect, a cross-boundary investment channel, the fund invests in onshore China equities listed on stock exchanges in Shanghai and Shenzhen, and in offshore China equities, including those listed on the Hong Kong Stock Exchange. They include China A, B and H shares, Red chips, P chips and ADRs, according to a press release by UBS Asset Management.
Markus Egloff, UBS’ Head of Wholesale Client Coverage for APAC, has said of the fund that “as China opens its capital markets, and in line with increasing investor demand for access to China stocks, global indices are clamouring to include A-shares.”
He continued that the “UBS All China Equity Fund allows investors to capture opportunities in A and H-shares in a single portfolio, leaving the allocation decision to UBS AM's award-winning investment professionals.”
The fund follows a tried-and-tested investment philosophy of investing early in industry leaders or potential leaders in secular growth sectors, and by focusing on high quality names with long-term perspectives.
UBS AM's China Equities team now manages the largest China equity fund globally, with AuM exceeding USD 7.3 billion.
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