Swiss & Global Asset Management has launched a Luxembourg-domiciled fund investing in Chinese companies in the technology, healthcare, environmental protection and broad consumer space.
Jian Shi Cortesi, the manager of the JB China Evolution Fund, will hold between 30 and 50 core stocks considered to have potential for strong earnings growth.
The MSCI China Index has an overrepresentation of what Swiss & Global Asset Management refers to as China’s “old economy”: 70% of its constituents are telecommunications, energy and financial companies.
Cortesi, who already manages the China portfolio of the JB Asia Focus Fund, says the current growth model is unsustainable and China is moving towards increased consumption.
Up to 70% of the JB China Evolution fund will therefore be invested in “new economy” sectors, like consumer, technology, healthcare and clean energy.
The new reform packages presented at China’s third plenum meeting in November 2013 included 60 initiatives which are to be implemented over the next 10 years, Cortesi says.
“This ambitious plan will enable China to embark on a new growth path through promoting a market-driven economy, supporting private businesses, boosting consumption and deepening the urbanisation process.”
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