KUALA LUMPUR: Manulife Investment Management (M) Bhd (Manulife IM) on Wednesday launch of Manulife Shariah China Equity Fund which enables investors in Malaysia the opportunity to participate in China’s post-pandemic economic opportunities.

       In a statement on Wednesday, it said investors will have direct access to China offshore and onshore investment opportunities in structural growth areas such as consumer, technology, materials, and healthcare, to name a few.

       It will invest at least 70% of its net asset value in a diversified portfolio of Shariah-compliant equities and Shariah-compliant equity-related securities of companies domiciled in, listed in, or have significant operations in China, which includes but not limited to A-shares, H-shares, and companies domiciled in or have significant operations in China but listed in other countries.

       Manulife IM CEO Jason Chong said the fund is focused on opportunities with the highest conviction and could fulfil the financial objectives of investors in Malaysia.

       China is already the second largest equity market in the world but underrepresented by most international market-cap weighted indices.

       China contributed to around 33% of the world’s GDP in 2019[2], but its weighting in MSCI All Country World Index was only 5.2%.

       “We can expect more investment opportunities in China to unveil themselves as the country continues to develop and become more widely adopted in major global indices,” he said.

       Manulife IM head of retail wealth distribution Ng Chze How aid: “Three key themes are expected to drive China’s long-term economic growth, namely consumption upgrade, technology and innovation, and supportive government policies.

       Ng pointed out innovation is expected to drive growth in the healthcare sector as consumer demand grows and the country moves away from manufacturing generic products to new and innovative medicine and medical discoveries.

       “It is expected that China’s biological drug market could reach US$79bil in 2023. The Manulife Shariah China Equity Fund also allows investors to enjoy peace of mind with Shariah-compliant investments by taking a two-level screening of the companies it invests in – business activity screening and financial ratios screening,” he added.

       The fund is benchmarked against the FTSE Shariah China Index, which offers a universe of more than 550 stocks across multiple sectors and various share types.

       The fund aims to achieve capital appreciation and is suitable for investors who prefer Shariah-compliant investments, have a long-term investment horizon, and wish to seek investment exposure in the China market.

       The Fund is available in A (RM) Class and A (USD) Class, with minimum initial investment of RM1,000 or US$1,000 and minimum additional investment of RM100 or US$100.

       The Fund is now available for subscription through the unit trust advisers of Manulife IM.