M&G Investments today announced the launch of the M&G (Lux) China Fund to provide investors with access to “attractive long-term investment opportunities”, according to a statement by the UK asset manager.
The fund is managed by David Perrett, co-head of the Asia Pacific equity investment team, who has spent more than three decades investing in China and the wider region. He is supported by Singapore-based deputy fund manager, Jamie Zhou and the wider Asia Pacific equity investment team which manages about €23.8bn ($25.7bn) in assets across the region.
The M&G China Fund’s investment approach centres on a universe of around 300 Chinese stocks, with a strong focus on risk pricing. The team’s high conviction, bottom-up stock picking approach leverages its knowledge, network of companies and contacts in the region.
Perrett commented: “In our view, China’s stock market capitalisation is currently disproportionately small compared to the size of its economy, with many stocks trading at compelling levels of valuation. At the same time, many Chinese companies are showing improving operational resilience and are increasingly focused on maximising profits and boosting shareholder returns through both higher dividends and share buy-backs
“In addition to ongoing corporate self-help, many Chinese businesses are also leaders in globally growing areas such as renewable energy and digital supply-chain management,” Perrett added.
“We believe our bottom-up stock picking approach, combined with rigorous risk management should enable us to deliver consistent and attractive returns for our investors.”
Perrett and his team manages sizable mandates, investing in Asian and Japanese equities on behalf of M&G Life’s £128bn ($138m) With Profits Fund as well as external investors, as it has sought to diversify its geographical allocation.
In 2021, they were awarded a mandate to invest in Chinese equities that has grown to €1.7 billion. The launch of this fund is part of M&G’s strategy to make its investment capabilities more widely available to external investors.
The fund is structured as a sub-fund of a UCITS Luxembourg SICAV and will be available to institutional and wholesale investors in Europe, as well as professional investors across Asia.
