British fund manager Schroders has unveiled a new fund that will offer exposure to onshore China equities.

The new vehicle, dubbed Schroders ISF China A-Share, will invest in onshore China A-shares through the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect.

The fund will cover the universe of over 3,500 stocks focusing on small to mid-cap companies. It will incorporate an active, bottom-up approach to explore the best opportunities, Schroders said.

Schroders global head of distribution John Troiano said: “We believe that this active, bottom-up approach will provide investors a strong source of growth, through one of the fastest growing markets in the world; and portfolio diversification, through an equity market that is largely underrepresented in global portfolios and has low correlation to other markets.”

The strategy will be managed by the firm’s Asian Equities team, headed by Jack Lee, who also serves as the head of China A-Share research.

“It is in the mid to mid cap space that the onshore China market features many compelling companies that demonstrate a combination of strong management and product/service leadership in the fastest growing (soon to be the largest) internal marketplace in the world,” Lee stated.

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