Morgan Stanley Investment Management (MSIM) has launched a Luxembourg SICAV domiciled fund version of its China A-shares fund, which was previously only available to institutional investors in a separate account format.
The fund aims to capitalise on pricing anomalies and inefficiencies in the A-shares market, through a high-conviction portfolio of companies with the potential to grow faster than overall GDP growth, or gain market share, or increase their profit margin. The fund aims to hold a portfolio of 25 to 40 stocks of what the investment team think will be China’s leading companies, both now and in the future. The Morgan Stanley China A Equity fund has won awards for the last three years from AsianInvestor.
MSIM lead portfolio manager, Gary Cheung, commented: “We believe China’s economy will shift from being driven by investments and exports, to one that is driven more by consumption and services. In our opinion, exposure to A-shares will be vital for investors to participate in this growth.”
MSIM global head of sales, Paul Price, added: “The China A-shares Fund is another example of how MSIM adds value to clients through active management. Across the platform, our equity portfolios are run by long-tenured portfolio managers with consistent philosophies that deliver low turnover and concentrated products. We’re delighted to be able to offer our China A capabilities to a broader client base via the SICAV structure.”