China A-shares Strategy

Capturing China’s compelling domestic growth through the onshore equity market.

Strategy overview

The Strategy will aim to provide long-term capital growth primarily through investment in equities or equity-related securities issued by companies listed in China or with significant operations in, or revenue derived from China.
Key Features
  • A best ideas approach that invests primarily in Chinese equities listed onshore with offshore flexibility
  • Managed using 4Factor’s consistent and repeatable evidence-based investment process
  • High conviction adaptable portfolio: style and size agnostic built from the bottomup
  • Proven track record managing dedicated All-China and Asia strategies, with experience in Chinese equities since 1999

Explore the Deliberating EM equities series

We are focused on selecting the most attractive stocks in a style-agnostic way as the China onshore equity market opens up.
Wenchang Ma
Joanna Yang

Investment approach

01

Strict disciplined process benefits from the behaviours of retail investors.

02

Combines local on-the-ground portfolio managers and analysts with global skillsets and coverage.

03

Integrates ESG into fundamental research applying global standards to Chinese companies.

04

Aims to reduce drawdowns and provide a lower volatility return profile than the broader A-share market.

05

Provides low overlap with the China exposure of generalist EM portfolios.

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General risks. Past performance is not a reliable indicator of future results, losses may be made.

Specific 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. 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. 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. 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.

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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