UBS Asset Management has launched a new China fund targeting high-net-worth individuals in Singapore.
The UBS (Lux) Equity SICAV All China fund, which was launched on 24 May, is managed by Citywire AAA-rated Bin Shi.
Unlike its other existing China funds, the new all-in-one China equity fund can have a flexible asset allocation to China onshore and offshore markets, depending on where Shi and his team spot opportunities.
Previously, UBS’ China strategies – UBS (Lux) Equity fund – China Opportunity (USD) P-acc and China A strategies – can only invest in the onshore and offshore markets respectively.
The company’s spokesperson told Citywire Asia that the UBS (Lux) Equity SICAV All China fund allows investors to incorporate A-shares into their portfolios through a Ucits-compliant structure and takes away the guesswork out of the allocation decision between A or H-shares.
It also adopts the team's hallmark high conviction, best ideas investment style.
Now that A-shares are part of the MSCI indices, investors who follow the benchmark closely will have to allocate to the names included, Shi said.
He added that the inclusion of China’s A-shares in MSCI index makes A-shares a mandatory investment.
What’s more, investors - particularly passive operators – would have a greater choice of names to invest in within the China equity space.
Shi said overseas investors' holdings of Chinese equities have grown 55% in the last year, reaching RMB1.2 trillion ($180 billion) at end-March.
Aside from this new fund, UBS (Cay) China A Opportunity is another UBS China fund that is available for accredited investors in Singapore.