Investec Asset Management is planning a double Ucits fund launch to further utilise its Renminbi Qualified Foreign Institutional Investor (RQFII) licence.
The asset manager said it will unveil a Chinese equity fund and an onshore Chinese bond fund ‘in the near future’.
The proposed Investec funds come in the wake of the asset management group receiving a quota under the RQFII programme, which is designed to allow financial institutions to use offshore yuan to invest in the mainland's securities markets, including in stocks, bonds and money market instruments.
In addition, Investec said it would make up of the ability to invest in the Chinese domestic equity market using the Shanghai-Hong Kong Stock Connect, which was launched in November last year. Investec said it is the first global investment manager of Ucits funds to invest using the Stock Connect.
Commenting on the announcement, Greg Kuhnert, who is Citywire A-rated and manages five different strategies including the Investec GSF Asian Equity fund, said the A-share market represents the other 50% of the China pie previously closed to foreign investors.
'This market appears rich with opportunities for investors such as us who are focused on companies demonstrating improving profitability, return on capital, capital discipline and valuations,' he added.
Investec Asset Management’s range of dedicated Asian investment strategies includes the Investec 4Factor All China Equity Strategy and the Investec Asia ex Japan and Investec EM Equity Strategies. It also follows moves by Investec last summer to launch a Ucits-compliant RMB bond fund.