HSBC Jintrust launches another equity fund

The second fund from HSBCÆs Shanghai joint venture approaches Rmb1.5 billion in a four-week IPO period.
HSBCÆs latest fund launch has gathered Rmb1.44bn during its initial public offering period. The HSBC Jintrust Dragon Growth Equity fund, managed by Tom Lin, is part of the Shanghai-based joint venture between HSBC and Shanxi Trust and Investment Corporation (Jintrust) which was officially established in November 2005. Fundraising for the new equity fund closed on September 22.

According to Jin, the fund is focused on three separate areas of mainland China business. ôOne of the categories comprises firms operating in sectors that will benefit from ChinaÆs strong economic growth in the long run,ö he says. ôThis includes consumption, telecommunications equipment, IT, energy and environmental protection.

ôThe other two categories include companies which are highly innovative in terms of their technique and operation, and undervalued stocks with long-term capital growth protection.ö On the macroeconomic front, Jin believes the demand for investments, local consumption and strong exports will drive the Mainland China market to produce strong returns over a mid- to long-term cycle.

The HSBC Jintrust Dragon Growth Equity fund has a composite benchmark split 75:25 between the FTSE Xinhua 600 Style Index (Growth) and post-tax one-year deposit rate respectively.

Blair Pickerell, chief executive of Asia Pacific HSBC Investments, says the initial success of the fund is largely predicated on the reputation of its manager.

ôThis fund has allowed us to strengthen our foothold in the mainland market,ö he explains. ôWe attribute the success of the fund launch to its long-term investment growth strategy, the trust that investors place in our brand and our investment approach and the extensive experience of Tom Lin, who is one of the most experienced fund managers in the China equity market.ö

Following on from the launch of the HSBC Jintrust 2016 Lifecycle fund, Pickerell regards the new fund as a key plank of the joint ventureÆs aim to encourage a long-term savings culture in Mainland China.

Fund manager Lin joined HSBC Jintrust as deputy chief investment officer and, as well as managing the Dragon fund, is responsible for managing portfolios, marketing and client servicing. He has more than eight years experience in the Mainland China asset management industry, at one time running four closed-ended funds and having been assistant to the CIO at Hua An Fund Management.
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