BMO Global Asset Management has added a China A-shares fund to its 14-strong range of responsible and sustainable funds.
BMO LGM Responsible China A-Shares Equity, which will be managed by the firm's emerging market equity specialist team LGM Investments, will be headed up by Hong-Kong based June Lui - who already manages the firm's Greater China Strategies fund.
Lui and the team will work closely alongside BMO GAM's responsible investment team to employ the firm's responsible investment philosophy, which has a strong focus on corporate governance and the management of environmental and social issues.
The fund will aim to seek domestic opportunities within the Chinese equity market that will grow due to secular trends such as income growth, urbanisation and technological advancement. It will also target secular global and broader emerging market themes such as health and wellbeing, responsible finance, sustainable infrastructure, food and nutrition and energy transition.
Manager Lui said: "We are excited by the potential of the onshore China equity market and are delighted to be among the first to launch a responsible fund in this area. As China continues to transform and develop, we see increased opportunities for long-term investors.
"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."
She added: "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."
The fund will be available across two share classes: F USD accumulating, which will be available for investors based in the UK, Belgium, Finland, France, Germany, Ireland, Luxembourg, Netherlands, Norway, Sweden and Switzerland; and F EUR accumulating, which can be purchased in the UK, Belgium, France, Germany, Ireland, Luxembourg, Netherlands, Spain and Switzerland. Both have annual management charges of 0.4%.