Hermes has partnered with Hong Kong based fund manager CSOP Asset Management to launch a China A Shares fund run by some of the country's own up and coming stockpickers.
CSOP will act as the investment manager on the fund, picking between 3-5 managers within China who specialise in running unconstrained portfolios for high net worth and institutional investors.
The fund aims to provide concentrated exposure to China in areas the managers expect to benefit from the sweeping changes taking place across the region.
Hermes said the fund will invest directly in China's A share market via CSOP's Renminbi Qualified Foreign Institutional Investor (RQFII) quota.
This quote, issued by the Chinese government, allows funds raised abroad to be channeled into the domestic market. Previously, many shares trading on the Shanghai stock exchange were off-limits to foreign investors.
Hermes Asia co-head Mike Curry said: "It is exciting to be launching this truly unique fund offering international investors access to the very best of China’s fund management talent.
"CSOP’s knowledge of the Chinese market and their experience managing a number of existing RQFII vehicles allows us provide access to a specialist area that has previously been off-radar or inaccessible to international investors."
CSOP is the largest RQFII manager in the world, and has reserved a portion of its A-shares quota for the new Hermes fund.
