Asset owners outside Asia often hire Western firms to manage their Chinese equity portfolios, despite mainland fund houses’ lower charges. But there are pros and cons to weigh up.
Investors globally have been dumping Asia-Pacific equities since 2015, but data shows Chinese stocks are bucking that trend despite trade tensions and slowing growth.
The US fund house has brought in a head of business strategy and development for A-share investment as Chinese equities attract more interest from international investors.
The $33 billion retirement fund is considering setting up a standalone A-shares portfolio, as it reviews its manager structures across asset classes.
Foreign asset owners are still underinvested in Chinese assets, say experts, but that is set to change—albeit slowly—as A-shares' weighting rises in MSCI's indices.
AsianInvestor's look back on our market predictions of a year ago moves to MSCI. Did we see its decision to bring A-shares into its emerging market indices coming?