Schroders launches new China multi-asset private fund

Multi-asset domestic private fund is the fifth private fund to be launched by the firm in China

Schroder Investment Management (Shanghai) Limited (Schroders Shanghai), the wholly foreign-owned enterprise (WFOE) of Schroders in mainland China, has launched a new multi-asset domestic private fund – the Schroder PFM China Multi Asset Dynamic Allocation FOF No.1.

The move closely followed the launch of three private funds in May 2019 and forms part of the firm’s commitment to growing with the Chinese asset management industry as it celebrates its 25th anniversary this year of entering the Chinese market.

The fund is managed by Shanghai-based Evan Zhou, fund manager, multi-asset, with support from the local research team and the resources of the Schroders global multi-asset team, which comprises more than 100 investment professionals and manages over US$95 billion in assets globally.

“Investors should always bear in mind the importance of diversification, and that taking a dynamic asset allocation investment approach could give them a smoother ride through different market cycles. Our multi-asset strategy leverages our rigorous fundamental research and allows us to be flexible in pursuing investment opportunities in different asset classes and mitigate any unwanted risks,” says Zhou.

“Looking at recent market developments, ongoing global trade tension has caused Chinese A-shares to recede, but this has presented a buying opportunity of selective names for mid to long-term allocation. Risk aversion has driven down Chinese bond yields, but Chinese sovereign bonds offer relatively attractive yield and valuation as we enter a new round of global monetary easing. Overall, we remain positive but cautious on China’s economic outlook as stimulus measures continue to support growth. Against this mixed backdrop, a multi-asset strategy could be an appropriate investment approach for investors to consider,” Zhou adds.

David Guo, head of China Business, Schroders, says, “We are pleased with the pace of growth in our China onshore offering. Our ability to sustainably introduce relevant investment solutions to Chinese investors is the outcome of understanding our clients’ objectives, and our latest multi-asset product offering is the result of our ongoing effort in enhancing our on-the-ground investment capability. Acquiring the right local talent has been our growth strategy in Mainland China and we look to further expand our WFOE team in the coming months and years.”

The new fund brings the total number of Schroders private funds on offer in China to five.

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