The latest in the launches, innovations and upgrades in investments for the Asia-Pacific region.

Invesco
Available to institutional and retail investors in the UK and in some European countries, Invesco has launched two new China focused UCITS funds: Invesco China A-Share Quality Core Equity Fund and Invesco China A-Share Quant Equity Fund.

The new equity fund will focus on A-shares investments in companies listed on the Shanghai and Shenzhen stock exchanges that display sustainable growth potential “underpinned by strong business models and sound balance sheets,” the investment firm announced yesterday. The portfolio will be managed by Chris Liu in Hong Kong and will typically consist of 30 to 40 stocks.

The second quant fund will take in a multi-factor investment approach by investing in A-shares of Chinese companies, again listed on the Shanghai and Shenzhen stock exchanges. This fund will be managed by Alex Tavernaro in Frankfurt and Andrew Tong leading Invesco’s quants strategy in Hong Kong.

The firm noted that MSCI increased the weight of China A-shares in its indices last year, increasing exposure from 5 to 20 per cent. This parlays to inclusion of 253 large and 168 mid-cap China A-Shares, including 27 ChiNext shares, on a pro forma basis, in its Emerging Markets Index, and represents a weight of 3.3 per cent in the index.

Invesco has built a strong presence in China, with capabilities covering both public and private markets. It was an early entrant in 2003 launching the Invesco Great Wall Management Company, one of the first Sino-US joint venture fund management companies in China, now managing around $41 billion in assets in equities and fixed income. Overall, the US firm manages roughly $82 billion in Chinese assets.

“We’ve launched two A-Share funds, each with a distinct investment style to accommodate different investment needs,” Chin Ping Chia, head of China A investments, business strategy and development at the firm said.

Chin Ping described China’s A-share market as “one of the largest and most exciting investment universes” that is opening up to international investors. “However, because the market remains relatively young with areas of inefficiency, we believe an active approach will allow us to capture these opportunities,” he added.