- china fund
Managing volatility, managing the aftermath
Relative calm returned to the Greater China fund universe in the fourth quarter, after the two extremes seen in 2015. Total AUM grew 5.8% to USD162.3bn, reflecting a slight recovery of the significant AUM decline in the third quarter. 2015 was a milestone for China as global investors placed its domestic financial markets on center stage. Yet although the worst of the volatility appears to have passed, the biggest question facing fund managers is how long-lasting the effects will be?
Quite simply, China is now a talking point among investors around the world. This is occurring as regulators are increasingly able to offer greater freedom to foreign managers. Domestic fixed income markets are opening-up to foreign investment and we have identified major gaps in the market for global managers. Greater access to the Mainland should also be vital to equity managers over the coming 12 months. US-listed Chinese firms have announced management buy-out plans, with the intent of relisting on the Mainland. Z-Ben Advisors believes that 2016 will be a transformative year for the Greater China fund industry. Managers that position themselves early will be the first to reap the benefits.
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