NN Investment Partners (NN IP) and China Asset Management (ChinaAMC) have launched its inaugural ESG-integrated China A-share equities strategy with their NN (L) International China A-Share Equity Fund that targets institutional and wholesale investors.

The fund, which aims to leverage current market developments that underline the importance of integrating environmental, social and governance (ESG) factors in the Chinese market, provides additional alpha potential for Chinese A-shares as they become more mainstream.

The new fund consists of a diversified portfolio of equities issued by companies based in, or having a significant exposure to, mainland China.

Portfolio construction and security selection are based on a fundamental view of the equity markets, while incorporating ESG criteria.

The fund will mainly invest in China A-Shares listed on the Shanghai Stock Exchange or the Shenzhen Stock Exchange.

“Responsible investing is at the core of our investment processes,” says Twan Philipsen, NN IP’s  head of partnership.