China’s CSOP Asset Management has teamed up with UK’s Hermes Investment Management to launch a new fund that targets mainland China private fund managers.
Dubbed as CSOP Hermes A Share fund, the Ireland-domiciled Ucits fund will invest directly in China’s A-shares market using CSOP’s Renminbi Qualified Foreign Institutional Investor (RQFII) quota.
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The Fund seeks to achieve medium to long-term capital appreciation by participating in the economic growth and potential structural reform in the PRC.
In addition, CSOP and Hermes will work with three and five managers called sunshine managers in China, who will serve as sub-advisors to new Fund. The sunshine managers will focus on investment opportunities emerging from economic growth and structural reforms in China.
CSOP will act as investment manager, while Hermes will act as the investment advisor for the fund.
The fund will tap into unconstrained portfolios currently being offered to HNW and institutional investors investing in the Chinese market.
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By GlobalData"We thought this was a good opportunity to use the expertise of the local Chinese hedge fund managers to advise us on the best shares to invest in. They would also help us with our due diligence and that’s why we decided to launch this unique product," said a spokeswoman for CSOP.
Mike Curry, co-head of Hermes Asia, said: "With ongoing reforms, structural shifts and growing liberalisation, China is currently presenting exceptional opportunities for best-in-class stock pickers."
Mike Curry, co-head of Hermes Asia, said: "CSOP’s knowledge of the Chinese market and their experience managing a number of existing RQFII vehicles allows us provide access to a specialist area that has previously been off-radar or inaccessible to international investors."
