Investments  

Fund review: Swiss & Global China Evolution

Swiss & Global Asset Management has launched an equity fund providing access to the ‘new’ economy in China, driven by consumer and tech trends.

The Julius Baer Multistock China Evolution fund consists of 30 to 50 core holdings in

companies with strong earnings growth and attractive valuations, particularly in technology, healthcare, environmental protection and consumer.

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The fund is benchmarked against the MSCI China index, and has a focus on the newer aspects of the economy – as opposed to ‘old’ economy, such as telecoms, energy and financials – allocating up to 70 per cent in emerging fast-growing consumer industries.

Managed by Jian Shi Cortesi, who also managed the JB Asia Focus fund, it is domiciled in Luxembourg under a Sicav structure and will be denominated in the US dollar. The fund has a 1.5 per cent annual management fee.

www.swissglobal-am.com

Comment

For a decade, China has been the market of choice for investors looking to gain strong returns on their investments. The economy has been evolving fast and regulation is transforming the investment world.

Swiss & Global’s take on China’s ‘new’ economy is of definite interest. Many were worried about China’s so-called ‘hard landing’, even though it was more soft than anything. And concerns over the economy slowing in the next few years are mounting. This fund will access parts of the market that are not touched by many fund groups at the moment, which largely hope to achieve success by jumping on the consumer bandwagon.

For investors wanting to get a piece of the market, the Chinese consumer is key. Trends have been growing in a more westernised China and now may be the time to up exposure.

There is plenty of reform coming to the country, as seen in the third plenum meeting in November, which included 60 initiatives that are set to be implemented over the next decade. The plan is to enable China to embark on a new path towards growth and focus on a market-driven economy – much like the US – while supporting private businesses and developing urbanisation.

Additionally, investors will have added security in the fund as it is dollar-denominated, not renminbi.