Manulife unit launches dragon feeder fund

MANULIFE Asset Management and Trust Corp. (Mamtc) has launched a new investment trust fund that enables clients to diversify their portfolio by allowing them to invest their funds in companies in Hong Kong and China.

During a news conference on Wednesday at the Discovery Primea Hotel, Mamtc President and CEO Aira Gaspar said Manulife’s Dragon Growth Equity Feeder Fund enables their investors to take advantage of China’s growth story, as its equity market is seen to be more liberalized, by investing their funds in companies in the Chinese bond market.

“With China’s rapidly changing economic structure, its equity markets will inevitably continue to liberalize and evolve. With the new Dragon Growth Equity Feeder Fund, investors can draw on the talents of our experienced and nimble team who are equipped to seize emerging opportunities and navigate China’s new investment landscape,” Gaspar said.

The fund adopts dynamic allocations in terms of equities between China and Hong Kong, taking into account changes in market conditions in both areas, government policies, industry trends, and individual holdings. Kai Kong Chay, Mamtc’s senior portfolio manager for greater China equities, said there are favorable factors currently driving both the equity markets in China and Hong Kong including its robust inflow of foreign capital, strong consumer spending, and an increase in government support for its research and development.

Investors can take part in Mamtc’s Dragon Growth Equity Feeder Fund for a minimum investment of $100 or P5,000.

Mamtc Client Portfolio Management Asia Head Thierry Taglione said the company sees Chinese bonds included in global bond indices over time as the Chinese bond market is the largest in Asia.

“It’s going to take some time, but over time, China bonds [are seen] to account for around 3 percent of those indices. If you look at the size of the Chinese bond market, it’s the largest in the region,” Taglione said.

Mamtc earlier said the inclusion of China bonds into the global bond indices could be a game changer for global bond investors, a development that could lead to dramatic fund inflow into the local market.

Meanwhile, in line with the local equity market, Mamtc VP and Head of Equities Mark Canizares said it is becoming more positive as inflation has seemed to have peaked.