All China Equity Strategy

Capturing the breadth and diversity of opportunities offered in Chinese equities.
Wenchang Ma
Joanna Yang

Strategy overview

The Strategy aims to provide long-term capital growth primarily through investment in equities or equity-related securities issued by Chinese companies listed predominantly in Hong Kong and China but may invest anywhere in the world.
Key Features
  • A holistic approach to fully access the real Chinese market by investing in China A shares, B shares, H shares and ADRs for best ideas
  • Managed using 4Factor’s consistent and repeatable evidence-based investment process
  • High conviction portfolio: style and size agnostic with no benchmark constraints
  • Specialist China team based in London and Hong Kong with a strong track record of picking stocks in China
Our focus is on generating alpha within the fast-growing Chinese equities market by combining disciplined fundamental research with local knowledge.
Wenchang Ma and Joanna Yang

Investment approach

01

We invest in high quality businesses with durable competitive advantages supporting strong cash returns on capital that will compound over time

02

We acquire businesses at a discount to our view of intrinsic value to ensure that we are the beneficiaries of future returns accretion

03

We invest in businesses with improving operating momentum that is not fully factored in by the market, offering a catalyst to realise value

04

We invest in businesses that are receiving increasing investor attention as a sense check to guard against potential behavioural biases

Portfolio Managers

Wenchang Ma
Portfolio Manager
Joanna Yang
Portfolio Manager
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General risks. The value of investments, and any income generated from them, can fall as well as rise. Costs and charges will reduce the current and future value of investments. Past performance does not predict future returns. Investment objectives may not necessarily be achieved; losses may be made. Target returns are hypothetical returns and do not represent actual performance. Actual returns may differ significantly. Environmental, social or governance related risk events or factors, if they occur, could cause a negative impact on the value of investments.

Specific risks. Geographic/Sector: Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean that the resulting value may decrease whilst portfolios more broadly invested might grow. Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income. Derivatives: The use of derivatives is not intended to increase the overall level of risk. However, the use of derivatives may still lead to large changes in value and includes the potential for large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss. 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. 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. 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.

Important information
This communication is provided for general information only should not be construed as advice.

All the information in is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessary reflect those of Ninety One.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon.

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