Hong Kong, 23 September 2019 – The Securities and Futures Commission (SFC) of Hong Kong on 17 September authorized UBS Asset Management's UBS (Lux) Equity SICAV – All China (USD) (hereinafter referred to "UBS All China Equity Fund" or "the fund"), which provides access to China's offshore and onshore markets via a single portfolio, for distribution to retail investors in Hong Kong. The fund has been available to professional investors since May last year.
Coming hard on the heels of the "UBS China Opportunity Equity Fund", the fund is managed by a multi-award winning team led by Bin Shi, Head of China Equities at UBS AM.
The fund invests in onshore China equities listed on stock exchanges in Shanghai and Shenzhen (via Stock Connect) and also in offshore China equities, including those listed on the Hong Kong Stock Exchange. They include China A, B and H shares, Red chips, P chips and ADRs.
"As China opens its capital markets, and in line with increasing investor demand for access to China stocks, global indices are clamouring to include A-shares. UBS All China Equity Fund allows investors to capture opportunities in A and H-shares in a single portfolio, leaving the allocation decision to UBS AM's award-winning investment professionals," said Markus Egloff, Head of Wholesale Client Coverage APAC at UBS AM.
"China is the world's second-largest economy but remains under-represented in global indices. However, the situation is being redressed and the inclusion of A-shares in global indexes is a growing long-term trend. In addition, China equities have undergone huge structural change over the last three years. Increasingly, stock performance is driven by fundamentals, which are a good basis for long-term investment," said Bin Shi.
"At the same time, structural changes to the economy in China including the urbanization, an aging population, innovation, and increasing consumer demand, remain intact and continue to drive the sectors we favour. We have also seen a range of stimuli in recent months via supportive government policy which can be expected to sustain growth through 2020," added Shi.
"Onshore markets offer investors exposure to sectors like traditional Chinese medicine, home appliances and liquor while offshore markets offer exposure to sectors like gaming & media, education services and e-commerce," said Shi.
The fund follows a tried-and-tested investment philosophy of investing early in industry leaders or potential leaders in secular growth sectors, and by focusing on high quality names with long-term perspectives.
UBS AM's China Equities team now manages the largest China equity fund globally, with AuM exceeding USD 7.3 billion1. Today, aggregate AuM in UBS AM's China equity strategy suite is in excess of USD 14 billion2.
Sherman Ko (Hong Kong), Sherman.Ko@teneo.com, +852 3655 0522
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