Baillie Gifford has formed a dedicated China equities investment team to better serve its existing and potential clients.
The 10-person team spans the Edinburgh and Shanghai offices, and is led by Linda Lin, a partner at the firm. The team will also be supported by investment specialists, a news release said.
The firm has invested in Chinese equities since 1994. It has almost £1.4 billion ($1.8 billion) in assets under management in China strategies, a spokesperson said.
Sophie Earnshaw, an investment manager, and Lin will co-manage the Baillie Gifford China Growth Trust and the Baillie Gifford China Fund. Those strategies had been managed within the emerging markets team, the news release said. Earnshaw has been managing the China strategy for a decade and the trust since Baillie Gifford took over management of the trust in September 2020.
The spokesperson added that emerging markets teams will still invest in China.
"Investors are struck by fear or FOMO when it comes to investing in China," said James Budden, director, marketing and distribution, in the release. "Purely focusing on China's risks could find investors missing out on growth opportunities. The Chinese government is back to supporting private enterprise in a bid to achieve promised prosperity. Despite geopolitical tensions, China is the home of world-beating growth companies pioneering many disruptive trends of the future."
The single, dedicated team will help to align motivation, incentives and accountability, the release added. It will also strengthen the ties between Shanghai and Edinburgh to leverage both global and local perspectives, it said.
Baillie Gifford has £223 billion in assets under management.
