Blackrock launches BGF China Fund

BlackRock has launched the BGF (BlackRock Global Funds) China Fund, to be co-managed by Jing Ning and Alan Wang based in Hong Kong.

The BGF China Fund will seek to maximise total returns by exposure to growth in the Chinese economy, driven by increased consumer spending, strong investment in infrastructure and export growth. The BlackRock investment team in Asia, led by Chief Investment Officer Nick Scott, offers a combination of local knowledge and global capital markets expertise, a value orientated approach and robust risk management skills.

The BGF China Fund invests at least 70% of its total assets in the equity securities of companies domiciled in, or exercising the predominant part of their economic activity in, the People's Republic of China. The fund's benchmark is the MSCI China 10/40 Index.

The fund expands BlackRock's breadth of offering to investors in its flagship BGF umbrella, which totals 61 funds, 32 of which are S&P rated. With six AAA-rated S&P rated funds, BGF has more AAA-rated funds than any other Luxembourg SICAV.

Jing Ning, co-manager of the BGF China Fund, said: "China's economy has been a remarkable growth story since the 1980s. Its equity markets have typically been volatile, governed by emotions. We believe that our disciplined, valuation-driven approach to investing will lead to capital growth in the fund."

Nick Scott, Chief Investment Officer for Asian Equities at BlackRock, said: "This launch comes at an exciting time as China reaches a turning point in its economic cycle.It is moving from a low-margin, labour and energy-intensive exporting economy, to becoming a domestically-fuelled economy driven by its transition to a consumer society.

"China's equity markets offer a wide variety of choice from smaller companies listed on mainland China to massive, partially state-owned conglomerates. Jing Ning and Alan Wang's stock-picking abilities combined with BlackRock's strong reputation in risk management stand this fund in good stead to perform for its investors."

The fund is available in the UK and Hong Kong.