M&G Investments on Tuesday 25 March 2025 announced the launch of the M&G (Lux) China Fund, stating that China’s stock market capitalisation is disproportionately small compared to the size of its economy, with many stocks trading at attractive valuations. The fund aims to provide investors with access to what M&G identifies as long-term opportunities in the Chinese equity market, focusing on companies demonstrating improving operational resilience, higher dividends and increased share buy-backs.
The fund is managed by David Perrett, who has over 30 years of experience investing in China and the wider Asia-Pacific region. He will be supported by deputy fund manager Jamie Zhou and the Asia-Pacific equity investment team, which manages approximately €23.8bn in assets across the region. The investment strategy focuses on a universe of around 300 Chinese stocks, selected through years of research and coverage. M&G stated that its approach combines rigorous risk pricing with high-conviction, bottom-up stock selection, leveraging its extensive knowledge and corporate network in China.
Perrett noted that many Chinese businesses have also emerged as global leaders in sectors such as renewable energy and digital supply-chain management. He stated that M&G’s combination of stock selection and risk management is designed to generate consistent and attractive returns.
M&G has previously invested in Asian and Japanese equities on behalf of M&G Life’s €155bn with profits fund and external investors. In 2021, it was awarded a Chinese equities mandate, which has since grown to €1.7bn. The launch of the fund is part of the firm’s broader strategy to expand access to its investment capabilities for external investors.
Fabiana Fedeli, CIO of equities, multi asset and sustainability at M&G Investments, stated that active management is essential for capturing China’s long-term growth potential while managing market volatility. She commented that the fund’s leadership team brings decades of experience in navigating the region’s investment landscape.
M&G plans to hold between 50 and 80 stocks, focusing on companies with strong balance sheets, sustainable cash flows and attractive valuations. Structured as a sub-fund of a undertaking for collective investment in transferable securities (Ucits) Luxembourg Sicav, the fund is available to institutional and wholesale investors in Europe as well as professional investors across Asia.