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Quality focus
We have been investing in Chinese equities since 1992. Our stable, experienced on-the-ground team combines local insights with fundamental research. In doing so, the team aims to target and invest in high-quality, well-governed companies with strong balance sheets and clear competitive advantages. We also fully integrate environmental, social and governance (ESG) analysis in our investment process and actively engage managements to improve corporate performance.
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Structural growth
We design portfolios to benefit from structural growth in China, reflecting urbanisation and a rising middle class. As wealth snowballs, we anticipate demand for high-end food and beverages, health care, consumer finance and insurance. Digital interconnectivity bodes well for companies dealing in cybersecurity, the cloud and smart homes. China is a leader in the push for decarbonisation in areas such as renewable energy, electric vehicles, energy storage (batteries) and related supply chains.
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Why China
China's domestic market contains unique home-grown firms in industries not accessible via offshore markets. Low correlation with global markets provides valuable diversification benefits. At the same time, investors can access different types of Chinese businesses listed offshore, such as internet firms and in sectors including education, gaming and telecoms. Both markets offer opportunities to capitalise on China's structural growth.
Our ESG approach to equity investing
We believe that environmental, social and governance (ESG) factors are financially material and can impact a company’s performance – either positively or negatively. Understanding ESG risks and opportunities, alongside other financial metrics, is therefore an intrinsic part of our research process.
We actively engage with the companies in which we invest, sharing insights and encouraging best practice where possible. We combine information from these meetings with the insights of our investment managers, ESG equity analysts and central ESG Investment team. This comprehensive approach means we can build a richer, more holistic view of each company. It also means we can consistently evaluate one company against another.
This approach is all part of our responsible stewardship of our clients’ assets – helping us mitigate risks, unlock opportunities and enhance long-term returns.
Fund in focus
Exceptionally diversified solutions to allow investors to diversify risk and optimise investment opportunity.
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