Investec adds to China equity team

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Investec poaches a fundamental equities analyst from rival firm to boost its China and pan-Asia strategies.

Based in Hong Kong, Amy Leung will report to Greg Kuhnert, portfolio manager of Investec’s All China and Asian Equity  strategies, as well as co-head of its 4-factor equities team, which manages $35bn in long-only global equities.

Leung joins from BNY Mellon subsidiary Newton Investment Management in Hong Kong, where she spent six years as a fundamental equity analyst covering Asia-Pacific ex-Japan stocks, including China H- and A-shares. Before working at Newton, she had brief spells at HSBC and Citi.

“Leung’s hire is part of the 4-factor team’s continuing investment in our Chinese equity capability, driven by the opening of Chinese capital markets to the world. Her appointment will…support the growth of our dedicated All China strategy which we launched five years ago to meet the growing demands of our clients for access to the investment opportunity represented by China,” Kuhnert said, in a statement.

Kuhnert co-manages the $1.32bn Investec All China Equity Fund, which has generated a 46.8% three-year cumulative return, significantly outperforming its MSCI China index benchmark (28.71%) and the average return of its 107 peers (16.54%), according to FE Analytics data.

The fund’s annualised volatility over three years is 19.35%, higher than the sector average (17.42%), but lower than the benchmark (20.09%). However, Kuhnert and his co-manager Wenchang Ma have generated alpha of 8.22 over the same period, according to FE Analytics, which has awarded the fund a five-crown rating.

The portfolio is evenly split between holdings in A- and H-shares, and its most recent fact sheet (31 July) shows overweight positions in industrials, utilities, property and consumer staples. Its biggest underweight positions are information technology, consumer discretionary and communication services, indicating a defensive strategy at present.

The fund was the Greater China/China Equity platinum winner in FSA’s 2019 Hong Kong awards, with two fund selector judges highlighting Kuhnert’s “all share, diversified” approach.

 


 

Investec All China Equity Fund versus sector average and benchmark MSCI China index

Source: FE Analytics. Three-year cumulative returns in US dollars.

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