The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.

Franklin Templeton
Franklin Templeton has launched its new Franklin Sealand China A-Shares Fund, a sub-fund of the Luxembourg-domiciled Franklin Templeton Investment Funds (FTIF) range. The fund is registered as a Recognised Scheme for sale in Singapore, the firm said in a statement.
 
Managed by Franklin Templeton Sealand Fund Management, a Shanghai-based joint venture with Franklin Templeton, the fund’s investment team has an onshore presence in China and a track record in managing China A-shares, the equity securities of mainland China-based companies trading on the two Chinese stock exchanges – the Shanghai Stock Exchange and the Shenzhen Stock Exchange. Their knowledge of the local economy, policies and other non-economic factors enables the team to identify early trends, opportunities and risks, the firm continued.

The fund’s investment aim is long-term capital appreciation by investing primarily in China A-shares, equity securities of mainland Chinese companies listed in mainland China. It focuses on approximately 35 to 55 stocks for its portfolio. The companies are diversified across industries, sectors and market capitalisation, with a focus on mid and large capitalisation stocks. The fund’s top 10 holdings are expected to account for approximately 45 to 55 per cent of the portfolio.

Christian Bucaro, head of retail for Asia at Franklin Templeton, said: “Against the backdrop of improved access to the Chinese market with enhanced investor protection, and market structure driven by continued reforms and the opening up of China’s capital markets, we believe that this strategy should appeal to investors who are looking to diversify their portfolios through high growth opportunities in onshore Chinese equities.”

“We remain bullish on the medium- to long-term development of the Chinese equity market, and China’s economic growth potential remains significant,” Lirong Xu, general manager and CIO of Franklin Templeton Sealand Fund Management, added. 

“We believe that China's consumption-led post-reopening recovery is still on track, although it will require more time for it to pan out. Our investment approach balances high conviction with diversification by employing a bottom-up and fundamentally research-driven process focusing on corporate quality and a rigorous valuation process. We generate alpha by investing in companies across a diverse range of sectors with sustainable competitive advantages, compelling growth prospects and well-governed management teams, whilst still trading at reasonable valuations,” Xu continued. 

“With inflows into China equities on index inclusions and growth opportunities, supported by a shift in the country’s domestic money flows from household savings to equity assets, we are confident that the China A-shares market can provide good opportunities for active investors,” Xu said.

Mirae Asset
Mirae Asset Global Investments (Hong Kong), part of Asia’s Mirae Asset, has launched a new exchange-traded fund. The Global X USD Money Market ETF is to be listed on the Hong Kong Stock Exchange. 

The ETF invests in short-term deposits and high-quality money market instruments, aiming to achieve a return in line with or above the prevailing US dollar money market rate.

Given the nature of the money market ETF which is investing into high-quality and short-term obligations with minimal risk, this ETF could be an investment tool for investors to earn additional yield from their idle cash in bank accounts, the firm said in a statement. 

"We are pleased to offer investors the opportunity to invest in the Global X USD Money Market ETF amidst the current high interest rate environment,” Wanyoun Cho, chief executive of Mirae Asset Global Investments (Hong Kong) Limited, said. “This ETF will enable them with the flexibility to manage their idle funds while they await the optimal timing to re-enter the capital market.”