M&G has brought the M&G China fund to market, citing a ‘strategic’ long-term opportunity as Chinese equity valuations reach all-time lows.
The fund will be managed by co-head of Asia Pacific equity David Perrett, supported by Singapore-based deputy fund manager Jamie Zhou and the wider Asia Pacific equity team.
The team currently manages $23bn assets across the region.
M&G China will select stocks from a universe of 300 Chinese companies, with a focus on risk pricing and bottom-up stockpicking.
“In our view, China’s stockmarket capitalisation is currently disproportionately small compared to the size of its economy, with many stocks trading at compelling levels of valuation,” Perrett said.
“At the same time, many Chinese companies are showing improving operational resilience during recent tough times and are increasingly focused on maximising profits and boosting shareholder returns through both higher dividends and share buy-backs.”
This article first appeared in our sister publication, Portfolio Adviser.
