The China AMC New Horizon China A-share strategy invests across onshore mainland Chinese equities and has delivered consistent outperformance.

The strategy has a fundamental investment philosophy incorporating quantitative and qualitative research seeking sustainable growth at reasonable valuations. Preferred sectors have included tech, consumer staples, discretionary, and health care with a relatively concentrated portfolio across 30-44 holdings. Well-structured process across analyst team, portfolio managers, and investment committee to manage risk and compliance.

The Manager notes its approach is to stick with a value-based growth style and ignore themes, which have paid off in recent years, enabling performance and lower volatility levels. Impressive performance with the fund returning over 301 basis point above benchmarks on a one, three, and five-year basis.

Has made efforts to institute ESG into investment process and stewardship, and it is also positive to see the Manager signing up to UNPRI. The committee finds that the team, which invests in China A-shares, is doing better on ESG engagement in the investment process than their peers.

Slight concerns are raised on the over-concentration to limited sectors exposing the fund to downside risk and missed opportunities.

This fund has been reviewed by four industry veterans of the Benchmark judging committee.