Affin Hwang AM launches China A Opportunity Fund

Affin Hwang AM chief marketing and distribution officer Chan Ai Mei expected the fund to benefit from the inflows into China.

KUALA LUMPUR: Affin Hwang Asset Management Bhd launched its Affin Hwang World Series - China A Opportunity Fund on Tuesday.

It said the wholesale feeder growth fund provides access to the vast opportunities in China’s domestic equity market by investing in a collective investment scheme, namely UBS (Lux) Investment SICAV - China A Opportunity (target fund).

The target fund is a Luxembourg-based fund managed by UBS Asset Management. 

“To achieve its investment objective, the fund will invest a minimum of 80% of the fund’s net asset value (NAV) into the target dund and a maximum of 20% of the fund’s NAV into money market instruments, deposits and / or liquid assets,” it said.

Affin Hwang AM chief marketing and distribution officer Chan Ai Mei expected the fund to benefit from the inflows into China as it continues to liberalisen and demonstrate its commitment to opening up its capital market.

“The gradual inclusion of China A shares into the MSCI Emerging Market Index would see sizeable fund flows and draw greater global investor interest. In the event of full inclusion, the total weightage of China equities could make up to 40% of the entire index weight,” she said.