Martin Currie launches new China fund with Lyxor

Date: Friday, April 30, 2010
Author: Joanne Harris, HedgeFunds Review

Martin Currie has unveiled a new China-focused fund on Lyxor’s managed accounts platform.

The Lyxor/Martin Currie China Dragon Fund is a long/short equity fund investing in China, Hong Kong and Taiwan. It has been run by James Chong since February 2008 as a model portfolio, returning 12.6%.

The fund will add to the $4.7 billion already managed by Martin Currie in strategies dedicated to the greater China region. The fund will utilise the company's 13-strong China research and portfolio management team based in Shanghai and Edinburgh to carry out bottom-up analysis of companies in the region.

Allan MacLeod, managing director of sales, marketing and client services at Martin Currie said the China Dragon fund had protected capital, generated alpha and delivered returns with around one-third of market volatility of the market during its two years as a model portfolio.

The fund is the third Martin Currie product to be run on the Lyxor platform. Martin Currie currently runs a Japanese-focused absolute return fund and a global resources fund with Lyxor.

The China Dragon Fund joins 115 other funds aimed at predominantly institutional investors on the Lyxor platform. In total the platform now has $10.5 billion in assets under management, having rebounded from a flood of redemptions during the financial crisis.

The platform's external relations head Ron Oman said the fund was the "only pure-play China fund" on the platform. Oman added it would give investors more emerging markets exposure.

Like other funds on the platform the China Dragon Fund is domiciled in Jersey. Minimum investment is $100,000.