Aberdeen Asset Management (Thailand) Limited, a subsidiary of abrdn plc, announced its plan to introduce “abrdn China Next Generation Fund” invested in master fund with the focus on small- and mid-cap companies in China that address lifestyles of new generations to attain better quality of living in all aspects. The master fund provides compelling growth opportunities as China is expected to recover with bright market outlook after the Chinese government shows commitment in its economic stimulus.
Mr. Robert Penaloza, CEO of abrdn Thailand, revealed that abrdn has a plan to offer “abrdn China Next Generation Fund” which has an investment in master fund that tilted toward quality and top-performing small- and mid-caps (SMID) with promising growth potential tied to the rising China’s economy, covering investments in megatrends in equity instruments with ample growth opportunities in China. Moreover, it allows Thai investors to access the Shanghai Stock Exchange Science and Technology Innovation Board (STAR) which is mostly available to Chinese investors and qualified foreign institutional investors (QFII). This will unlock investment potential and offer investment opportunities that respond to lifestyles of new generations and lead to the better future.
The “abrdn China Next Generation Fund” will invest through the Aberdeen Standard SICAV I – China Next Generation Fund which invests in high-quality Chinese equities with exponential growth tilted toward new economy and innovation industries driven by rapidly expanding demand of the premium consumer class and the new generations. The master fund will focus on various megatrends such as consumer goods, healthcare, green technology, and tech. It enables investors to tap into stocks with appealing growth rates and compelling alpha potential.
Mr. Robert further added that recently, Chinese stock market, especially the large-cap stocks, was significantly affected by internal and external factors, which made investments in China appear sluggish. Nevertheless, the Chinese government is expected to implement economic stimulus measures aiming to boost the domestic economy and gear it toward an expansion as the economy appears to bounce back from the bottom.
abrdn believes China’s equity market is still interesting and fascinating especially for SMID which are considered the top picks of the market. This segment is diverse, covering multiple industries including new economy, growth and innovation, while business models are well-defined to address changing demand in the future on top of solid fundamentals. Unlike large cap stocks that are exposed to price fluctuations recently, the SMID segment is relatively less influenced by macro market factors. Additionally, government policies are supportive of small- and mid-cap companies as the government regards them as crucial in driving China’s economy toward high and sustainable growth. “Small- and mid-cap equities are considered a good alternative to diversify investment risks especially during the period that the stock market is materially impacted by factors mainly affecting large caps. Therefore, we clearly see investment opportunities in small- and mid-caps and we also see them as rising stars of the future,” Mr. Robert noted.
abrdn also has a team of investment professionals with longstanding investment experience and expertise in Asia-Pacific especially in China’s equity market for over 30 years. abrdn’s local investment professionals focus on the best businesses. The team prioritises company quality defined as Quality, ESG, Sustainable competitive advantage, attractive industry characteristics, management execution and track record, and superior financials. It also integrates ESG at every stage of the investment process and invests in sustainability leaders and engage improvers to raise standards. Through active ownership, the team generates, protects and enhances value for investors.
“abrdn China Next Generation Fund” is to be offered through an IPO during 29 August – 9 September 2022 with 2 share classes: ABCNEXT-A (Accumulation) and ABCNEXT-SSF (Super Savings Fund). Special offers will also be available for those investing during the period. For more information, please visit https://bit.ly/3KrgVau or contact Client Services via [email protected] or call +662-352-3388 to receive prospectus or for further queries.
