By Ivan Anderzhanov
The emerging markets investment house Ashmore today launched a Greater China Fund to invest in Chinese equities.
The fund has a US dollar base currency and will invest primarily in on-shore Renminbi denominated investments permitted under the country's Qualified Foreign Institutional Investor (QFII) scheme.
Ashmore was granted a QFII licence by the Chinese Security Regulatory Commission in September 2009, and has more recently been allocated a quota of $200 million by the regulator.
The London-listed group said the fund will invest directly in the domestic market and provide access to the local "A" shares. In addition to equities, the fund can invest in fixed income and cash. As well as benefiting from a much wider and more liquid investment universe, including local equity and credit exposure, investors will benefit from short term currency appreciation and longer term structural upside.
Jerome Booth, head of research at Ashmore, said in a statement: “As one of the select financial institutions who have been granted a QFII licence, we're very encouraged by this quota allocation. This reinforces our commitment to developing our investment capabilities in the Chinese domestic market and underpins our confidence in the growth of the region.”
Ashmore manages about $31.6 billion ) in pooled funds, segregated accounts and structured products.
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