Comgest has renamed its Greater China fund to reflect its keener focus on the country's domestic equity market, the company has announced.
Comgest said the change reflects its increasing opportunity set in domestic Chinese equities, thanks to the opening of the mainland Chinese equity market to foreign investors.
Comgest has gradually expanded its China research and holdings in mainland China over the years, receiving a QFII licence in 2011 and gaining access to 1500 stocks via the Shanghai and Shenzhen Hong-Kong Stock Connect programmes, launched in 2014 and 2016.
Given the opportunities on the Chinese mainland equity market, the fund’s exposure to Chinese equities is likely to increase further over the coming years. Because of this, the fund’s comparative index becomes the MSCI China index, rather than the MSCI Golden Dragon index.
Commenting on the change, Yu said: 'Since we opened the Comgest Growth Greater China fund in 2000 we have seen a large increase in the number of liquid domestic Chinese equities available to foreign investors.
'The domestic Chinese equity market has a high potential for alpha generation as evidenced in its very high share return dispersion. That makes it particularly attractive for active investors.'