Lowes Wealth Management, a Beijing-based boutique, has made its foray into the British retail investment market with the launch of a global equity fund.
Elite LWM East-West Value is a conviction portfolio of 25-35 holdings from a range of developed and emerging markets.
It opens for trading on January 5. Markos Tando will lead the team, supported by Charles Horton.
Lowes, which has a value investment house style, has run discretionary portfolios using this strategy since 2005. Its products have not previously been directly available to retail investors.
East-West Value will adopt the house investment process, looking for well-established, substantially undervalued companies, with tangible assets and a market capitalisation of at least £100m.
Justin Lowes, the managing director, says that although its portfolio construction has yet to be finalised, at its launch the fund is likely to have a significant weighting towards America.
“We like the US because it is further forward in the cycle and it will come out of the downturn before the UK and Europe. The fund is likely to be underweight Europe and the UK,” he says.
Lowes is also positive on retail spending, the emerging middle class and the infrastructure growth story in Asia, especially China.
In terms of stock ideas, Lowes adds: “Our analysts are conservative on the financial situation and they are erring on the side of the major blue chips.”
Stocks which the managers might include in the portfolio are Aiphone (a Japanese telecoms infrastructure firm), Bukwang Pharmaceutical Industrial, Dow Chemical and Disney.
The fund is in the offer period. The minimum investment is £5,000 and it will be available through Transact.