Commerzbank enters retail market with China fund

clock

Commerzbank is making its derivatives capabilities available via a retail portfolio for the first time, with the launch of the Commerzbank China Volatility Target fund.

The Ucits III fund is the first retail launch on the group’s Luxembourg platform. It is a long-only equity Sicav managed by Michael Wen and Edward Wang of China Asset Management, based in Beijing. Commerzbank then applies a derivatives overlay to the fund to keep it within its 20% annual volatility target. If the fund exceeds the target, the managers use a short position to reduce volatility, but if it undershoots the target, they implement a long futures position to add extra beta. China Volatility Target is structured as a high conviction portfolio of 30 to 60 stocks. The manager...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Emerging markets

Four Graphs explaining India

Four Graphs explaining India

Four experts write

Investment Week
clock 12 February 2024 • 4 min read
JEMI's Omar Negyal: Emerging markets are well positioned to support AI boom

JEMI's Omar Negyal: Emerging markets are well positioned to support AI boom

Early adaption is key

Omar Negyal
clock 11 January 2024 • 2 min read
TSMC and Infosys most frequent top ten holdings across JP Morgan AM trust stable

TSMC and Infosys most frequent top ten holdings across JP Morgan AM trust stable

Emerging markets dominate

James Baxter-Derrington
clock 10 January 2024 • 1 min read
Trustpilot