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Investec stock connect in Lux range

Investec Asset Management has become one of the first companies to utilise the Shanghai-Hong Kong Stock Connect programme within a Luxembourg domiciled UCITS fund range.

The London and Johannesburg listed company said its Global Strategy Fund range will now have the capacity to invest directly in Chinese domestic equities through the programme which was launched in November last year.

Regulatory approval was granted in December by the new stock exchange’s regulators, the China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission. It is believed Investec is the first company to receive approval for a Luxembourg domiciled UCITS range to use the programme.

The approval appears to have been announced by the Association of the Luxembourg Fund Industry in December, although at the time the association was unable to confirm the name of the asset manager involved.

Greg Kuhnert, Manager of the Investec Asian Equity Strategy said: “The A share market represents the other 50% of the China pie previously closed to foreign investors.

“Because of our long-term investment in the region and investment hub on the ground, this market appears rich with opportunities for investors such as us who are focused on companies demonstrating improving profitability, return on capital, capital discipline and valuations.”

This latest development follows the award of an Renminbi Qualified Foreign Institutional Investor licence last November and the allocation of its RQFII investment quota by the Chinese State Administration of Foreign Exchange.

Part of the Mark Allen Group.