News releases

Schroders launches first fund investing purely in onshore China

08/05/2018

Schroders has launched the Schroder ISF[1] China A-Share – a strategy focused on investing in onshore China equities. The fund will provide investors access to innovative and fast-growing companies in the world’s second largest equity market, with the aim of providing capital growth. 

The strategy currently invests in onshore China A-shares through the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. The onshore China equity market offers a diverse opportunity set of over 3500 stocks and has low correlation to other major equity markets. The investment team will focus on small to mid cap stocks with a quality bias and take an active, bottom-up approach to finding the best opportunities.  

Schroder ISF China A-Share will be managed by Schroders’ Asian Equities team, with Jack Lee, Head of China A-Share Research, as the lead investment professional. The team will harness Schroders’ data science capabilities to provide a conviction ‘edge’ to investment decisions.

The fund launched on 6 December 2017 and is managed by Schroders’ Asian Equities team who currently manage 41 billion[2] on behalf of clients around the world.

Jack Lee, Lead Investment Professional and Head of China A-Share Research said:

“In my 19 years of investing in China, the opening of the ‘Stock Connect’ is providing one of the best opportunities for investment in what is an often a misunderstood market. 

Through our investment lens, we are able to identify exciting opportunities in the dynamic mid to small cap space, particularly within the fast-growing sectors such as technology, healthcare and the consumption space.  It is in the mid to mid cap space that the onshore China market features many compelling companies that demonstrate a combination of strong management and product/service leadership in the fastest growing (soon to be the largest) internal marketplace in the world.”

John Troiano, Global Head of Distribution at Schroders said:

“Schroders has moved quickly to act on the huge opportunity that the opening of the China A-share market has presented for our international clients.

We believe that this active, bottom-up approach will provide investors a strong source of growth, through one of the fastest growing markets in the world; and portfolio diversification, through an equity market that is largely underrepresented in global portfolios and has low correlation to other markets.” 


[1]Schroder International Selection Fund is referred to as Schroder ISF throughout

[2] Schroders as at 31 December 2017

 

For further information, please contact:

Sarah Deutscher                                     Tel: +44 (0)207 658 6139 / sarah.deutscher@schroders.com

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*as at 31 December 2017