Old Mutual Global Investors changes China equity fund focus

Hong-Kong-China-Asia-Victoria-Habour-700.jpgOld Mutual Global Investors has made changes to its $66.5m Greater China Equity fund, refocusing it on mainland China stocks.

OMGI has changed the focus of the fund, after Diamond Lee took over management of it at the start of this year.

The changes have seen the minimum exposure to Taiwan removed, which currently requires that at least some of the fund must be allocated to the country. The move will allow more flexibility in how the fund is invested.

The fund will also be renamed, from the Old Mutual Greater China Equity Fund to the Old Mutual China Equity Fund.

The benchmark for the fund will be changed from the MSCI Golden Dragon Index to the MSCI Zhong Hua 10/40 Index.

“Following this modification to the fund, I will have more flexibility to allocate investments across China, Hong Kong, and Taiwan. I hope to add more value for clients by having greater freedom to focus on China, whose importance is only likely to rise in the long term,” says Lee.

“It is well known that the pace of Chinese growth is slowing down gradually, however we firmly believe this transition will offer a multitude of opportunities, as the economy transitions from investment to consumption led, and the growth engine switches from manufacturing to services.”

Lee took over the fund in January, after OMGI brought management of it in-house. The fund was previously run by Metisq Capital.

At the end of October the fund had 49 per cent allocated to China, 22 per cent to Hong Kong, 16 per cent to Taiwan and 5 per cent to the US.

The changes are subject to regulatory approval.