Veritas Asset Management, a UK investment firm, said yesterday it will roll out a long/short China fund for investors at the end of October, exploiting what is expected to be continued prosperity in the Asian giant.

The Veritas China Fund, structured as a UCITS3 vehicle, will focus on equities in the China and Hong Kong. The fund will have capacity of up to $500 million and aims to have a target return of 15-20 per cent per annum.

Targeted volatility will be approximately half of the Chinese market as measured by the MSCI Zhong Hua Index.

The fund will be run by Veritas’ Asian team, headed by Ezra Sun, and working with Raymond Foo in Hong Kong. The fund will have a strong thematic approach focusing on the social, political, economic, cultural and technological factors, the firm said.

The fund will have daily liquidity and be available to institutional investors, discretionary managers, professional intermediaries, private banks, funds of hedge funds, family offices and high net worth individuals. 

“We are launching a UCITS fund within an environment where greater regulation and liquidity are the strongest drivers.  This also gives us the opportunity to make the fund accessible to a wider investor base,” said Mr Sun.

The other funds within the Veritas Asian Strategies are the Veritas Asian Fund and the Real Return Asian Fund.