Swiss & Global Asset Management has launched the JB China Evolution fund, which will focus on China’s ‘new economy’.
The portfolio of 30-50 core holdings will consist predominantly of consumer, technology, healthcare, and environmental protection stocks that offer strong earnings growth and attractive valuations.
This will significantly underweight the 70% of the MSCI China index comprised of what Swiss & Global terms the ‘old economy’ of telecommunications, energy and financial companies.
The fund will be managed by Jian Shi Cortesi, who already runs the China portfolio of the JB Asia Focus fund. This returned 6.3% in the year to the end of November, compared with 10% from its benchmark MSCI Asia excluding Japan index.
‘China’s credit-driven economic growth model is unsustainable, but the world’s second largest economy is evolving as it moves away from an overreliance on investment towards increased consumption,’ commented Jian Shi Cortesi (pictured).
‘The new reform packages presented at China’s third plenum meeting, in November 2013, included 60 initiatives which to be implemented over the next 10 years. This ambitious plan will enable China to embark on a new growth path through promoting a market driven economy, supporting private businesses, boosting consumption and deepening the urbanisation process.’
The fund’s management fee will be 1.5%.