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EnglishEquity strategies: China & Japan
Equity strategy: China
Direct access to Chinese equities
The Chinese equity market is particularly interesting for investors due to its structure: a mix of high market capitalization, fair valuation, solid earning power and broad diversification. The composition of the market opens up interesting opportunities for investors – now and in the medium term – because it reflects the successful structural changes in the Chinese economy.
Global market shares in e-mobility, online platforms, pharmaceuticals and high-tech industries are growing steadily. The competitive advantages of top Chinese companies in these sectors are leading to rising profit margins and long-term capital gains for shareholders.
By investing in the Metzler China Equity RMB mutual fund, institutional investors can take advantage of the opportunities associated with the People's Republic of China. Due to its QFII license*, the fund invests directly in Chinese A-shares, i.e. domestic equities traded in renminbi, the local currency.
Metzler China Equity RMB Fund
The Metzler China Equity RMB fund, launched at the beginning of 2013, is an Irish qualified investor alternative investment fund – a so-called non-UCITS securities fund strictly for qualified investors.
ISIN: IE00B79N9Y56
The local fund manager
Metzler has entrusted the management of our Metzler China Equity RMB fund to a renowned local cooperation partner, Zhong Ou Asset Management International Limited ("ZOAM Intl.") in Hong Kong. ZOAM Intl. is a wholly-owned subsidiary of the Shanghai-based company Zhong Ou Asset Management Company Limited. ("ZOAM"), a fast-growing asset manager with over 50% employee share ownership.
Your advantage: Our local manager knows the ins and outs of the Chinese capital market, has an in-depth understanding of the industries in the region, and can draw on many years of experience in fund management.
Our local cooperation partner, ZOAM Intl, together with its parent company ZOAM in Shanghai, has over 90 portfolio managers and analysts who analyze more than 4,000 stocks in mainland China and Hong Kong. The local manager aims to identify high-quality companies with fair valuations and the potential to grow in order to achieve sustainable long-term returns.
Metzler Asset Management has been managing sustainability mandates for 20 years now and was one of the first German asset managers to sign the UN PRI in 2012. ESG criteria are integrated into the investment process for all mutual funds – and in some special AIFs upon request. ZOAM also implements basic sustainability in this Metzler fund and signed the UN PRI in 2021.
Equity strategy: Japan
Personal presence in Tokyo
Japan is the most important foreign market for Metzler Asset Management. In 2001, we established Metzler Asset Management (Japan) Ltd. in Tokyo. Today, we count several major Japanese companies and pension funds among our clients, and our staff members in Tokyo have established themselves as renowned contacts for institutional clients in Japan. We offer our clients excellent financial services in Japan:
- Portfolio management for Japanese clients is carried out by Metzler Asset Management in Frankfurt.
- Client services and reporting in Japanese are provided by our colleagues in Tokyo.
- Metzler advises Japanese companies on M&A transactions in Germany – on the sell side as well as the buy side.
- We support Japanese clients throughout all phases of their real estate investments in the USA and Germany.
Joining forces with cooperation partners
For managing our Japanese equity funds, we work with two experienced cooperation partners based in Tokyo. Both cooperation partners take ESG criteria into account in the investment process when compiling Japanese equity portfolios. Their investment strategies comply with the criteria laid out in Article 8 of the EU Disclosure Regulation. T&D Asset Management and Nissay Asset Management have signed the UN Principles for Responsible Investment (UN PRI).
T&D belongs to the T&D Life Group, Japan’s fifth largest life insurer. As of 2024, T&D Asset Management has around USD 20 billion in assets under management.
Stock picking for the Japanese equity strategy is based on a unique value score model developed specifically by T&D. Using this model, portfolio managers analyze all available company data and forecasts for each company included in the Tokyo Stock Price Index (TOPIX) benchmark. This method is used by fund managers to search for companies that are expected to generate earnings growth in the long term. The thorough analysis of key company figures is supplemented by personal discussions with the management of promising companies. Only then do the fund managers decide whether to include a stock in the portfolio. The aim is to outperform the TOPIX benchmark.
NAM is the asset management company of the Nippon Life Group, Japan’s largest life insurer. As of 2024, Nissay Asset Management has approximately USD 300 billion in assets under management. NAM coordinates its equity strategy with each individual client.
Extensive German-Japanese network
Metzler’s close connection to Japanese culture goes back several decades. Gerhard Wiesheu, CEO at B. Metzler seel. Sohn & Co. AG, first visited Japan in 1981, a trip that marked the beginning of a deep passion and admiration for the country. Mr. Wiesheu lived in Japan for ten years and learned Japanese. His personal and professional ties to Japan have remained very close even after his return to Germany in the late 1990s. As Chairman of the Japanese-German Business Association (DJW) and Chairman of the Foundation Board of the Japanese-German Center in Berlin, Mr. Wiesheu’s key objective is to forge even closer ties between the two countries and to bring Japanese culture to an ever wider audience in Germany.
As an Honorary Member of the Board of Trustees of the Bayreuth Festival, Mr. Wiesheu welcomes many guests from Japan to Germany every year. As President of Frankfurt Main Finance, he believes it is important not only to promote the ongoing development of Frankfurt as a financial center but also to increase the number of Japanese banks and financial service providers in Frankfurt. The largest annual Japanese film festival held outside of Japan, the "Nippon Connection", and the Japanese Main Festival "Main Matsuri" are supported regularly by Metzler Bank.
Your personal contacts
*License as a Qualified Foreign Institutional Investor: Metzler Asset Management GmbH received permission from the Chinese securities regulator in 2012 to invest directly on the stock exchanges in Shanghai and Shenzhen.