Krane Funds Advisors (KraneShares), a global asset management firm known for its China-focused exchange-traded funds (ETFs) and innovative China investment strategies, has appointed UBS Asset Management (Americas (UBS Asset Management) as sub-advisor to launch the Krane-UBS China A Share Fund.
The fund is managed by Bin Shi and his team of China-dedicated research analysts who are based in Hong Kong and Shanghai. Bin Shi is the Head of China Equities at UBS Asset Management and has managed their flagship China A Share strategy since its inception in 2007. This fund marks the first time the strategy is available to US investors in a mutual fund.
“Bin Shi has one of the longest track records in the China A Share market,” said Julian Daniels, Managing Director of KraneShares. “The fund has many of the characteristics that investors look for – it is concentrated with high active share, it utilises fundamental research that incorporates ESG considerations, and has a consistent, repeatable investment process.”
The Krane-UBS China A Share Fund is driven by the belief that structural growth and inefficiencies in the A share market produce significant alpha potential for investors. Through rigorous fundamental research that seeks to identify high-quality, leading companies in strategic industries, the Fund is positioned with the aim of capturing this alpha potential. Furthermore, the Fund is concentrated in a select number of holdings and has a long-term investment horizon.
“UBS Asset Management has a long history investing in the Chinese market,” says Shi. “We are excited to partner with KraneShares as we hold the same positive long term outlook for the A Share market. Through this new fund and KraneShares’ established distribution network in the United States, investors will have increased access to this important China opportunity.”