Fund Management

Citigroup, ChinaAM Hong Kong Launch Equity-Focused Fund

Vanessa Doctor, Asia Editor, 22 November 2010

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Citigroup First Investment has partnered with China Asset Management (Hong Kong) to launch a new investment fund that focuses on Chinese equity investments.

The China Select Fund, the first Hong Kong Securities and Futures Commission-authorised Chinese equity fund to be managed by ChinaAMC (HK), is designed for investments traded both onshore and offshore. The fund's portfolio will be invested in domestic and overseas-listed companies headquartered in or which have significant business exposure to the country; approximately 10 to 30 per cent of the portfolio will be exposed to China A-shares listed on the Shanghai and Shenzhen stock exchanges.

"Given their market potential and sustainable long-term growth outlook, Chinese equities are currently under-represented in the global equities portfolio. The [fund] has been designed to generate alpha and enable investors to capitalise on these market opportunities," Anthony Ho, deputy chief executive of ChinaAMC (HK), said in a statement.

The fund is an open-ended unit trust with multiple share classes and a minimum initial investment of $1,000 in any of the currencies available. It is authorised for distribution to the Hong Kong public and is available in Singapore on a restricted basis as a restricted scheme, subject to regulatory approvals.

Citigroup First Investment is a global asset management business under Citigroup Global Markets. CFIM funds are tailored to institutional, retail and wealth management clients and individual investors.

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