The asset management arm of the UK's Old Mutual Wealth has made changes to its Greater China equity fund, subject to regulatory approval.

Old Mutual Global Investors has tweaked its Chinese equity strategy to enhance its long-term focus on mainland China.

The $66.5 million Hong Kong-based Old Mutual Greater China Equity Fund will become the Old Mutual China Equity Fund. It will specialise in equities relating to mainland China, with the requirement that there must only be a minimum exposure to Taiwan removed. 

To track long-term performance, the fund will move over from the MSCI Golden Dragon Index to the MSCI Zhong Hua 10/40 Index. These changes allow the fund's manager, Diamond Lee, to invest in Taiwanese securities freely, making adjustments as necessary with market movements. 

“Following this modification to the fund, I will have more flexibility to allocate investments across China, Hong Kong and Taiwan,” Lee said.  

“It is well known that the pace of Chinese growth is slowing down gradually, however we firmly believe this transition will offer a multitude of opportunities, as the economy transitions from investment to consumption led, and the growth engine switches from manufacturing to services. The fund will continue to be managed in a focused, high conviction style.”

Based in Hong Kong, Lee joined OMGI late last year and has headed the fund since January. The firm currently has assets under management of £22.2 billion (about $33.8 billion).