BMO Global Asset Management has followed the launch of its Responsible Asian Equity Fund with a fund focused on the China A-Shares equity market.
The BMO LGM Responsible China A-Shares Equity Fund broadens the company’s responsible and sustainable range to 15 strategies.
The latest fund will be managed by BMO GAM’s emerging markets equity specialist team — LGM Investments — alongside the company’s responsible investment team.
“As China continues to transform and develop, we see increased opportunities for long-term investors,” lead fund manager June Lui said in a media statement on Tuesday (25 August).
“In recognising the governance issues in the onshore market, we believe these can be addressed by ensuring ESG factors are a focal point in the decision making process.”
The new fund will invest in companies listed and traded on mainland stock markets in China, and have a focus on strong corporate governance and the management of environmental and social issues.
Its mandate is to focus specifically on investment opportunities in China’s domestic economy that are predicted to grow as a result of urbanisation, income growth and technology advancement.
The fund will identify opportunities from core areas impacted by global thematic shifts that are relevant to emerging markets secular growth. Such examples include changes in health and wellbeing, food and nutrition, the energy transition, responsible finance, sustainable infrastructure and technological innovation.
“We aim to generate strong long-term, risk-adjusted returns by investing in a conviction portfolio of high-quality companies that demonstrate responsible business practices and a positive contribution to society,” Lui added.
Lui, a CFA charterholder, currently runs the BMO GAM Greater China Strategies and is based in Hong Kong.
The LGM Investments team, which supports her work, has 17 professionals based in London and Hong Kong.