Threadneedle launches China opportunities fund

Threadneedle Investments has added a new fund to its Far East & Asian Equity range with the launch of the Threadneedle China Opportunities Fund.

Gigi Chan, China market specialist and fund manager, will lead management of the new fund with support from Jan de Bruijn as deputy fund manager.

The fund will use three main themes in its investment approach: domestic consumption, urbanisation and infrastructure spending. Gigi’s thematic strategy aims to create a flexible portfolio which captures the dynamic growth across the Chinese market cap range.

Vanessa Donegan, manager of the Threadneedle Asia Fund and Head of Far East & Asian Equities said: “We are high conviction believers in China and the opportunities yet to be exploited by investors. We’re excited by China’s long term prospects because of its strong corporate profits, robust economic growth and pent up investor demand.”

“Gigi is an impressive stock picker and she significantly contributed to the team’s out performance last year when she earned her spurs through successful stock picking in China and Hong Kong markets for Threadneedle funds. Her early call to go overweight China was a key driver in the outperformance of the company’s Asia Fund.”

Gigi Chan, fund manager of the Threadneedle China Opportunities Fund, commented: “We have spotted lots of opportunities in the mid to small cap segment of the market which is quite under-researched. Liquidity inflows have gone mainly into large caps which have become less attractive in terms of valuation.”

“I would describe the fund’s approach as bottom up blended with the house’s thematic philosophy. China’s development is exciting and fast paced so local market knowledge and company visits are crucial. On average, I meet with over 100 corporates per year to get to know every level of the supply chain and understand the whole competitive landscape.”