Commerzbank enters retail market with China 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...