CHINA - Bank of Communications and Schroders have officially launched their first fund in China after announcing the joint venture in June.
The first fund will be a medium risk equity fund. Initially, the fund will hold approximately 40% in core defensive stocks, 30% in cyclical growth stocks, and 30% in cash. The fund will also be allowed to invest in fixed income.
Feng Zhao, who will manage the fund, said: “There are a number of mis-priced investment opportunities in the Chinese equity markets. At the same time, investors need to control risk whilst seeking out return. This fund allows us to capture growth opportunities whilst minimising risk thanks to a balanced allocation between stocks and asset classes.”
David Lui, CEO of Bank of Communications Schroder Fund Management Company said: “Looking ahead, we expect to launch a wide range of tailored products across asset classes to meet demand from Chinese retail and institutional investors alike.”
Bank of Communications, China’s fifth largest commercial bank owns 65% in the venture whilst Schroders holds a 30% stake.
The new fund will be open to Chinese investors and qualified foreign institutional investors investors only.
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