Featured insight
Deliberating EM equities
Emerging markets generate 58% of global GDP but represent just 9% of equity portfolios. To help investors unlock long-term value in the asset class, we share our latest ideas.
Strategy overview
Strategy overview
Investment Approach
We seek to combine fundamental research with insights derived from our machine learning alpha model to unlock alpha, while considering sustainability without bias
Investment Opportunity
Diversified allocation to onshore Chinese equities
Investment Universe
Invests in equities listed or traded on Chinese stock exchanges
Target Return
Outperform the performance comparison index (net of fees) over a full market cycle
The role the strategy can play in portfolios
Insulated exposure to China's growth
Our approach provides little overlap with the China exposure of generalist EM portfolios, capturing diversification
Risk-adjusted returns
Aims to reduce drawdowns and provide a lower volatility return profile than the broader A-share market
Helps avoid behavioural bias
Strict disciplined process benefits from the behaviours of retail investors
Manage ESG risk
ESG integrated into the investment process to help mitigate ESG risk and/or catalyse an alpha-positive outcome
Investment Philosophy
Key facts
Asset Subclass
EM EquityCurrency
USDInception date
01/01/2020
Team
4Factor teamGeographical Focus
Emerging MarketsESG Classification
ESG IntegrationComparative Benchmark
MSCI China A Onshore Index
Portfolio & Holdings
Date as of 31/12/2024
Sector breakdown (%)
Top holdings (%)
Top & bottom sector weightings vs comparative index (%)
Top & bottom stock weightings vs comparative index (%)
Index
Strategy
Industrials
16.7
Information Technology
19.3
Financials
21.4
Consumer Discretionary
8.6
Consumer Staples
9.4
Health Care
6.6
Materials
9.1
Communication Services
2
Energy
2.5
Utilities
3.4
Other
1
Cash
Based on a related portfolio within the strategy with substantially similar objectives as those of the services being offered. The portfolio may change significantly over a short space of time. This is not a buy, sell or hold recommendation for any particular security. For further information on Indices and Specific Portfolio Names, please reference the sections in https://ninetyone.com/-/media/documents/miscellaneous/91-further-information-en.pdf.
Why Ninety One for China A Shares Strategy
Contact our client service teams.
Risks
Concentrated portfolio
The portfolio invests in a relatively small number of individual holdings. This may mean wider fluctuations in value than more broadly invested portfolios.
Currency Exchange
Changes in the relative values of different currencies may adversely affect the value of investments and any related income.
Emerging Market (inc. China)
These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems.
Equity Investment
The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company.
Foreign Investment
Investing in foreign securities may be subject to risks pertaining to overseas jurisdictions and markets, including (but not limited to) local liquidity, macroeconomic, political, tax, settlement risks and currency fluctuations.
Geographic / Sector
Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean that, in certain market conditions, the value of the portfolio may decrease whilst more broadly-invested portfolios might grow.