Ashmore, a UK-based emerging market specialist, has rolled out three new Sicavs on the Chinese market following its approval of RMB Qualified Foreign Institutional Investors (RQFII) status by the China Securities Regulatory Commission (CSRC).
The new Luxembourg-domiciled SICAV structured funds will provide access to local Chinese markets.
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The new funds include Ashmore Chinese Debt Fund, Ashmore Chinese Equity Fund and Ashmore Chinese Multi-Strategy Fund.
The Debt Fund seeks to generate returns from a strategy of Chinese debt securities issued by sovereigns, quasi sovereigns and public and private sector corporates denominated in RMB and traded on the China Interbank Bond market and or the China exchange traded bond market.
The Equity Fund will invest in Chinese A-shares listed on the Shanghai and/or Shenzhen stock exchanges, while the Ashmore Chinese Multi-Strategy Fund will generate returns from a balanced strategy of both debt and equity strategies.
Additionally, Northern Trust will offer all aspects of fund administration in Luxembourg, and HSBC will act as the onshore sub custodian for the new fund range.
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By GlobalDataChristoph Hofmann, global head of distribution, Ashmore, said: "The launch of these funds changes this dramatically. Investors now have unparalleled access to local Chinese securities and these funds provide investors the opportunity to invest in one of the most dynamic markets in the world.
"Domestic Chinese equities and fixed income assets are significantly under-represented in most global portfolios and these funds will allow our clients to make dedicated investments in China and suitably diversify their asset allocation," he added.
Jan Dehn, head of Research at Ashmore said: "We think the transformation of the Chinese economy will be especially positive for the domestic bond market which will play a central role macroeconomic policy.
"Local Chinese equities have been hit by poor investor sentiment amidst slower growth but we believe this has created a buying opportunity. Valuations are depressed, Chinese indices remain around 75% lower on a price-to-earnings basis compared to pre-crisis peaks and P/BV multiples are at near decade lows," he added.
