Aberdeen Standard Investments has launched its first onshore private fund in China targeting the country’s high-net-worth and institutional investors.
The new fund – China A-share fund – invests primarily in the A-share market.
Aberdeen Standard said the new onshore fund invests in about 30 A-shares that demonstrate compelling quality to be long-term winners, with an initial focus on the consumer and services sectors.
It will be managed by the Shanghai-based investment team, with full support from the China and Asian equities teams in Hong Kong and Singapore.
The investment team believes that China’s transition towards a consumption-driven economy bodes well for the future of quality companies in the consumer, travel, wealth management and healthcare industries.
Aberdeen Standard told Citywire Asia that the new onshore fund adopts a similar investment strategy to its Aberdeen Global China A Share Equity fund launched in March 2015.
Both funds have strong focus on quality, corporate governance and risk management.
When asked about its plans to launch more private onshore funds in China, the spokesperson said: ‘Our priority is to establish a robust onshore fund management platform and bring our global investment expertise to the domestic market.’
‘In the coming years, we look to diversify our range of product offerings to the local investors across different asset classes, such as fixed income and multi-asset,’ the spokesperson said.
The spokesperson added that Aberdeen Standard is committed to investing more resource on the ground to grow the business.
‘We will expand our team and add talents across various functions including portfolio management, investment execution and operation,’ the spokesperson said.
Aberdeen Standard Asset Management (Shanghai) – its wholly foreign-owned enterprise – was registered as a private securities investment fund manager with the Asset Management Association of China at end-2017.