CIMB first to have direct access to China A-Shares
New fund enables investors to tap into China’s new economy
KUALA LUMPUR: CIMB-Principal Asset Management Bhd (CIMB-Principal) has launched its maiden China-focused fund, CIMB- Principal China Direct Opportunities Fund under its Renminbi Qualified Foreign Institutional Investor ( RQFII) licence.
CIMB-Principal is the first entity in Malaysia to be awarded this licence which allows it to invest directly in the China A-Shares market.
The fund is an equity growth fund that aims to provide capital appreciation over the medium to long-term and will invest a minimum of 70 per cent of its net asset value (NAV) in China A-Shares focusing mainly on small and midcap companies with good growth potential, while the remaining 30 per cent of its NAV will be invested in liquid assets.
The fund is co-managed by CCB Principal Asset Management Co Ltd (CCB Principal), one of China’s fastest growing asset management companies – backed by China Construction Bank, US- based Principal Financial Group, and China Huadian Capital Holdings Company Ltd – with US$207 billion of assets under management as at December 2017.
CIMB- Principal chief executive officer Munirah Khairuddin said, “We are excited to offer this fund, the first under our RQFII licence.
“There is no better time to participate in China’s new economy – comprising industries such as information technology, green technology, healthcare and consumer discretionary, which are set to propel China’s next growth trajectory.
“Through this fund, Malaysian investors will have direct access to a hitherto untapped universe of opportunities, previously accessible to only Chinese citizens. Access to the China A-share market also supports CIMB-Principal’s growth
We are excited to offer this fund, the first under our RQFII licence. There is no better time to participate in China’s new economy – comprising industries such as information technology, green technology, healthcare and consumer discretionary, which are set to propel China’s next growth trajectory. Munirah Khairuddin, CIMB-Principal chief executive officer
and diversification strategy, which enhances our overall investment advisory capabilities.”
Munirah added, “We are optimistic of the demand from Malaysian investors, and are confident of achieving our target fund size of US$100 million within the first year of the Fund’s inception.
“We truly believe that CCB Principal’s on- the- ground expertise in China, its solid track record in managing regional and global investments and CIMB Principal’s investment capabilities will form a strong synergy to ensure the optimum performance of not only this fund, but also future China-focused funds by CIMB-Principal.”
With direct access to the China A-Shares market, subscribers to the fund have the opportunity to invest in the world’s second largest equity market, a direct proxy to an economy set to grow at 6.6 per cent in 2018.
China A-Shares are traded on the Shanghai and Shenzhen Stock Exchanges, with trades denominated in renmimbi. Turn to Page B2, Col 5