PineBridge Launches China A-Shares Quantitative UCITS Fund
Direct Access to A-Shares, Managed with a Leading Onshore Quantitative Team
LONDON, 4 April 2019 – PineBridge Investments, (“PineBridge”) a global asset manager focused on active, high conviction investing, today announced the launch of the PineBridge China A-Shares Quantitative Fund (the “Fund”). The Fund seeks to give global investors access to the domestic equity market in China through a quantitatively managed, active equity strategy that invests in equity and equity-related securities connected to the economic development and growth of China. As one of the only UCITS products in the market to adopt a quantitative approach to Chinese equities, the Fund aims to deliver alpha through the combination of local knowledge and a systematic investment process.
The Fund is managed by PineBridge Investments Asia Ltd., with investment advice from Huatai-PineBridge Fund Management Co., an onshore Shanghai-based joint venture between PineBridge and Huatai Securities established in 2004. Huatai-PineBridge manages US$16 billion1 in assets under management and is one of the largest active quantitative managers in China.2 Huatai-PineBridge’s active quantitative team is one of China’s most established, supported by 34 onshore fundamental investment professionals, and trading execution, compliance, risk and operations teams. In addition, Huatai-PineBridge manages an onshore ETF business, featuring one of the largest and most liquid China A Shares ETFs in the world.3
“International index inclusion and continued economic liberalization in China are expected to drive substantial flows and increasing allocations towards China A-shares. The large and liquid domestic A-shares market aims to offer attractive, long-term return opportunities from China’s growth and innovation, and finding the most attractive stocks in this dynamic market requires an established local presence,” said Anik Sen, Global Head of Equities, PineBridge Investments. “The onshore universe presents extraordinary alpha opportunities and we are thrilled to bring investors the combination of PineBridge’s strength in Asia and Huatai-PineBridge’s investment expertise in Mainland China.”
Huatai-PineBridge’s Deputy General Manager, Chief Investment Officer of Quantitative investment, and Portfolio Manager, Hanqing Tian, said, “With over 21 years of experience and more than 10 years of track record in managing active quant strategies, we believe that a disciplined approach that identifies and targets performance drivers, while navigating unique investor behaviours and market risks, can deliver consistent risk-adjusted returns. For this reason, our process unites a quantitative approach underpinned by fundamental signals and views.”
The Fund’s reference index, the MSCI China A International Total Return Net Index, reflects the opportunity set of China A-shares for the international investor taking into consideration the progressive A-share inclusion and foreign ownership limits. MSCI’s methodology has been at the forefront of the gradual inclusion of onshore Chinese equities into investor portfolios around the world and the index universe includes both large- and mid-caps, representing a broader equity market set.
"The further weight increase of A-shares in the MSCI indices is a significant milestone for the opening of China’s capital market,” said Jack Lin, Managing Director and APAC Head of Client Coverage at MSCI, “We are pleased that PineBridge has chosen MSCI China A International Total Return Index as the reference benchmark for their new fund."
The PineBridge China A-Shares Quantitative Fund is domiciled in Ireland and registered for sale across Europe.4
1Data as of 31 December 2018
2Source: Wind, as of 31 December 2018
3Source: Bloomberg, as of 28 December 2018
4Countries of registration currently include the United Kingdom, Germany, Sweden, Italy, Finland, Norway, Denmark, and Switzerland. Further countries are pending registration. The Fund may not be authorized for distribution in jurisdictions outside those listed herein. Not all investors may be able to invest in the Fund. Authorized does not imply official recommendation.
About PineBridge Investments
PineBridge Investments is a private, global asset manager focused on active, high-conviction investing. The firm draws on the collective power of our experts in each discipline, market, and region of the world through an open culture of collaboration designed to identify the best ideas. Our mission is to exceed clients’ expectations on every level, every day. As of 31 December 2018, the firm managed US$89.6 billion across global asset classes for sophisticated investors around the world.
In jurisdictions where the Fund is not registered, this material is for professional and institutional investors use only. Investors should seek professional advice and read the prospectus for further details including risk factors before investing in the Fund. The material does not constitute an offer or solicitation to buy or sell or a recommendation for securities and does not take into account the investment objectives or needs or suitability of a specific investor.