German asset manager ACATIS Investment has unveiled a benchmark-free Asia equity fund designed to take advantage from the growth prospect of China which according to the fund house will become the world's largest economy in 2030.
The ACATIS Qilin Marco Polo Asien Fund is managed in collaboration with Quilin Capital, which will provide underlying research for the fund's asset allocation.
Quilin Capital has an office in Shanghai and is working closely with the Chinese university Tsinghua, which will be contributing to the analysis of the portfolio's companies.
Hendrik Leber, founder and managing director of ACATIS Investment, said: "Until now, investments in Chinese companies often failed due to a lack of local expertise. Now we have found the right partner".
Investments are mainly made in private and non-government-owned companies, which represent the largest portion of the indices due their high market capitalisation, resulting in a portfolio that is independent of the benchmark.
The investment process starts with the analysis of the company' business model, and follows with its future viability and the market position. This stage is followed by an analysis of capital market- relevant indicators such as the price-earnings ratio (P/E ratio), cash flows, debt ratio and book value.
Finally, the behavioural finance analysis is applied to the entire market to assess the market that is often driven by retail investors, with the aim to ensure that country and sector champions can be identified on a systematic basis.