Best Fund Provider Greater China Equity
BNP Paribas Asset Management
Best Fund Provider – Greater China Equity
Caroline Yu Maurer
head Greater China equities, BNP Paribas Asset Management
“We are thrilled and delighted to win this award. Our success is built on a commitment to excellence and this was well demonstrated with our Greater China equities expertise.
Our achievement is the product of a strong team and a disciplined process: our local, experienced, well-resourced investment team fully takes an active, high conviction, bottom-up approach to identify attractively-valued Chinese companies able to deliver sustainable earnings growth and presenting sound or improving ESG profiles.
We seek out investments which offer quality growth, strong management, and cash flow predictability — a factor which not only assesses in detail company-specific drivers, but also factors in top-down macroeconomic and government measures which may influence the investment. The steadily growing asset base, expanding list of distinguished clients, as well as recognition from major institutions and consultants worldwide speak volumes about our Greater China Equities team’s ability in meeting the needs of even the most sophisticated clients.”
Winners rationale
An easing trade environment and a supportive central bank and government in China kept pushing China stocks to new highs in 2019, with the MSCI China Index generating an impressive 21% in a year’s time, outperforming its Asian counterparts. On the back of a dedicated team with a robust investment process, BNP Paribas Asset Management stood out amongst its peers in managing Greater China equities in 2019.
Led by Caroline Yu Maurer, head of Greater China equities and lead portfolio manager of the firm’s Greater China strategies, BNP Paribas Asset Management’s Greater China stock solutions have delivered excellent results for clients over the past years, both on an absolute basis and relative to the benchmark.
For instance, since the manager took over, its flagship fund — BNP Paribas China Equity — has enjoyed consistent outperformance over time, generating a strong cumulative excess return of 26.24% (in USD, gross of fees, as of 31 December 2019), with the outperformance mainly driven by stock selection effects.
The team follows a “growth at a reasonable price” style in their investment approach, biased towards the highest quality growth companies backed by positive industry and company specific dynamics. Focusing on a prudent portfolio risk management, the team incorporates environmental, social and governance factors into its portfolio construction, the process of which significantly helps the team in terms of mitigating risk and generating sustainable returns.
As a result, the fund is inherently less volatile than its benchmark. Over the 36 months up to 31 December 2019, the portfolio’s volatility was 18.09% versus 18.48% for the reference benchmark (MSCI China 10/40, net total return).
Inspired by the increasing convergence of the needs of traditional institutional clients with those of private banking clients, the firm decided to carve out the coverage of global and regional private banks in Asia and the Middle East as a standalone client segment in the beginning of 2019, in a bid to serve this client base in a more customised manner.
The investment and distribution team’s superior achievement in Greater China equities is well recognised by the region’s private banking industry. BNP Paribas Asset Management is Asian Private Banker’s choice for Best Fund Provider – Greater China Equity.
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