Neuberger launches China A-Shares UCITS fund
Managed by Ning Meng
Neuberger Berman has launched a China A-Share UCITS fund for Ning Meng, who joined the firm from HFT Investment Management in 2019.
The Neuberger Berman China A-Share Equity fund will look for high-quality companies with proven management teams and consistent, long-term performance in areas with long-term domestic secular growth trends, the firm said.
The fund will hold between 30 and 50 companies and target a tracking error of between 4% and 8%. It will be benchmarked against the MSCI China A (Onshore) index.
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Neuberger said the fund's management team would work closely alongside its global ESG team to review the ESG scoring of its portfolio holdings on a regular basis.
Meng said the focus on high-quality domestic Chinese companies would "ensure we are positioned for the long term". "This strategy lends itself particularly well to China, as the A-share market is inherently volatile and often presents the opportunity to buy these companies at cheap valuations," he added.
"We see growth potential in 'new infrastructure' and the real estate sector in particular. Amid the disruption caused by Covid-19 and trade tensions, new government-backed technology infrastructure projects including artificial intelligence, 5G, industrial IoT and electric vehicle charging stations are set to be some of the key drivers for long-term economic growth in China."
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Head of intermediary for EMEA and Latin America Jose Cosio said: "The China A-share market is now the second largest in the world in terms of market capitalisation and cash turnover.
"It has become increasingly popular amongst international clients who want to gain access to the breadth of well-managed domestic companies in the Chinese market."
Meng is based in Shanghai and supported by a core team of analysts with an extensive local network, Neuberger said.
The local team will be assisted by the firm's equity research teams based in Taiwan and Hong Kong, which cover the communications, consumer, financials, industrials and IT sectors, as well as the firm's broader emerging market equity teams.
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