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Ashmore launches China-focused funds
29 August 2014
First non-Chinese firm to offer access to the Chinese domestic market
Ashmore has become the first non-Chinese asset manager to
launch funds offering access to the domestic Chinese market.
The three new Sicav structured funds offer unprecedented access
to local markets in China.
The launches follow the award of Ashmore’s
Renminbi Qualified Foreign Institutional Investors (RQFII)
status by the China Securities Regulatory Commission (CSRC) in
January this year. Ashmore was the first manager outside of
Greater China to be awarded this status.
"China is not only the world’s second largest
economy, it is also one of the most difficult to access, with
local markets having been largely inaccessible to foreign
investors. The launch of these funds changes this
dramatically," said Christoph Hofmann, Ashmore's global head of
The Ashmore Chinese Debt Fund seeks to access returns available
from a strategy of Chinese debt securities issued by
Sovereigns, Quasi Sovereigns and public and private sector
Corporates denominated in RMB and traded on the China Interbank
Bond market and or the China exchange traded bond market
Ashmore Chinese Equity Fund invests in Chinese A-shares listed
on the Shanghai and on the Shenzhen stock exchanges and the
Ashmore Chinese Multi-Strategy Fund generates returns from a
balanced strategy of the equity and debt strategies.
China is in the midst of a storming change as it transforms
itself from an export to a domestic-led economy.
"We believe China's aggressive appetite for reform and
forward-looking policies will place the country in a very
strong position to grow in the future," said Jan Dehn, head of
"The transformation of the Chinese economy will be especially
positive for the domestic bond market which will play a central
role macroeconomic policy."
Local Chinese equities have been hit by poor investor sentiment
amidst slower growth but Dehn believes this has created a
buying opportunity. Valuations are depressed, Chinese indices
remain around 75% lower on a price-to-earnings basis compared
to pre-crisis peaks and P/BV multiples are at near decade lows.
"This is despite a strong expected earnings recovery and the
country’s strong fiscal position which means
there’s huge firepower to stimulate growth if
necessary," said Dehn.
Northern Trust provide all aspects of fund administration in
Luxembourg and HSBC will act as the onshore sub custodian.