The three products are fixed income, equity and multi-asset funds. They aim to tap opportunities in China’s onshore markets.
As the name suggests, the LionGlobal RMB Quality Bond Fund intends to invest in high quality bonds in non-developed markets. It aims to maintain an average portfolio rating of BBB- or higher.
The LionGlobal RMB Equity Fund will invest in A-shares listed on China’s stock exchanges. The fund will have a concentrated portfolio of stocks that have attractive valuations and strong growth prospects, focusing particularly on those based on the structural themes of consumption, ageing and “going-green”.
“Notwithstanding that China A-shares have been rallying over the last six months, they are still trading at a discount to pre-global-financial-crisis levels while most other markets have matched or exceeded their pre-global financial crisis levels,” said Gerard Lee, chief executive and chief investment officer.
“Although the anti-corruption drive and economic reform by the current administration continue to be headwinds to the markets, we think it’s a good time for investors to enter the Chinese onshore markets as valuations are reasonable,” Lee added.
The LionGlobal RMB Flexi Fund will adopt a tactical asset allocation approach and invest in the LionGlobal RMB Quality Bond Fund and LionGlobal RMB Equity Fund.
The firm received an RQFII license in September last year from the Chinese Securities Regulatory Commission after it was granted a QFII (Qualified Foreign Institutional Investor) licence in May 2012.
Recent initiatives by Chinese regulators, including the Stock Connect and expansion of the RQFII programme to countries beyond Hong Kong, have made it easier for investors to access to China’s onshore market.
Last week, China’s regulators removed the $1bn investment QFII quota ceiling for overseas fund management firms who want to invest in the mainland.
