Mackenzie interview: More Chinese clients than people in Canada

With the largest deal in China’s asset management industry done and dusted, Mackenzie Investments CEO Barry McInerney thinks investors should consider separate allocations to China.

McInerney says Chinese equity markets are mature enough for some investors to consider separate allocations.

Easier market access and risk diversification are reasons why some investors might hold China outside of a broader emerging markets allocation, he says.

“China is more investable today. Whereas before you could only enter through QFII [the ‘qualified foreign institutional investor’ regime], things are moving fairly quickly now that we have the Stock Connect programmes,” says McInerney, who is now president and chief executive of Mackenzie Investments, another Canadian asset manager. Stock Connect refers to cross-border trading initiatives involving the Shanghai, Shenzhen and Hong Kong stock exchanges.

He adds: “What’s really interesting about Chinese equities is they are a risk diversifier. At the current point in time, the correlation of the China stock market is very low – not just to developed markets, but also to emerging markets.”

He adds: “When I started in the industry in the late 1980s, emerging markets were brand new. People saw they were very volatile markets, but eventually people began to make separate allocations to EM outside of their global equity allocations.”

© 2020 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST