Winners rationale

Underpinned by earnings growth and domestic reforms, China A-shares saw remarkable performance in 2017, with the market up more than 20% by close of year. Bullish news, such as the inclusion of China’s A-shares into the MSCI Emerging Markets Index, further lifted the market. ‘New China’ sectors, such as technology and service-oriented industries, benefited the most from consumption upgrades and innovations, as the Chinese government shifted focus from specific growth targets towards enhancing the quality of growth and attaining balanced development.

During this transition from ‘quantity’ to ‘quality’, there is little doubt that inefficiencies will provide significant opportunity for active bottom-up managers to generate alpha – especially in a market where retail investors dominate daily trading volumes. Asia’s private banks capitalised on opportunities in the A-shares space, with some even rolling out specific investment themes around A-shares, including “One Belt One Road”, “supply side reform” and “new China”.

UBS Asset Management, in particular, saw significant AUM growth in China strategies with impressive net inflows from private clients over the course of the year. The asset manager also developed customised strategies and tailor-made segregated portfolios for UHNW clients to meet specific client needs.

In addition, in response to widespread technology disruption in the industry, UBS Asset Management launched its ‘Wholesale House’ platform in 2017 which provides clients with access to investment capabilities across all major traditional and alternative asset classes. The platform also offers bespoke solutions, partnership programs, and client training.

Gatekeepers were near-unanimous in their selection of UBS Asset Management as the region’s Best Fund Provider – China A-share Equity.