Technology adoption, healthcare, consumption premiumisation
Dynamic allocation between equities and bonds to enhance the potential capital appreciation and yields
(Dividends are not guaranteed, and distributions may be paid out of income and/or capital) see important note 4
Annualised dividend yieldI as of April 2020, USD 3.7%, HKD 3.7% & RMB Hedged 4.5%
COVID-19 has impacted many major economies. In contrast, the pandemic has been under control in China. The previously suppressed demand has been released. With the substantial policy support from the government, China is expected to take the lead in recovery and will be in a better position for growth potential. Moreover, built upon its solid fundamentals, Chinese economy has transited from speed of growth to quality of growth. Chinese assets have become major choices for individual and institutional investors. From a medium-term perspective, we believe that the three major themes in the stock market include:
Chinese technology development has reached the world standard. Its hardware industry, e-commerce and internet sectors have become the market focus.
E-commerce and internet
The Chinese government has taken a multi-pronged approach by increasing fiscal expenditure, relaxing monetary policy and providing supportive measures to provide more long-term funding, increasing market liquidity, in return alleviating corporate default risks.
Offering low valuation and attractive yields, in addition to exhibiting a low correction with the oil price, Chinese high yield bonds have higher appeal than their US and European counterparts. Chinese bonds are expected to become one of the major asset classes for international investors, providing strong support for the fundamentals of Chinese bond market.Investment focus: Chinese government bonds, policy bank bonds, property bonds
The Fund frequently adjusts the mix of China A shares , Hong Kong equities, American depositary receipts (ADRs), offshore bonds, onshore bonds and cash through dynamic allocation. We actively search for investment opportunities from more than 5,400 companies, and act swiftly in response to market movement to mitigate short-term volatility. The Fund aims to capture opportunities in China’s new economy for long term capital growth and stable return.
The Fund aims to capture capital appreciation through stocks, and to enhance yield as well as to lower the overall volatility through bond holdings and through dynamic asset allocation.
A China mixed-asset fund with investment in Hong Kong stocks, A-shares, ADRs, and Chinese bonds
Uses integrated channels, including the Shanghai and Shenzhen Stock Connects (northbound) and Bond Connect, to access China onshore securities
Aims to provide a monthly dividend (dividend is not guaranteed and distributions may be paid out of income and / or capital*)
Multiple currencies available (USD, HKD, AUD, and RMB)
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