The Allianz Global Investors China Strategic Growth Fund seeks to generate returns from China's growth by investing in Greater China-listed equities and has generated consistent outperformance.

The Manager's investment approach emphasizes fundamental stock research. It highlights the edge provided by its Grasses Research team, which generates “grass roots" data from journalists, field investigators, and industry experts to obtain an early lead on trends impacting the industry and individual stocks.

Risk management uses various modeling to test liquidity and correlations across a portfolio of between 40-59 securities.   According to cited examples, the team's active portfolio management and stock rebalancing during COVID-19 turmoil generated strong outperformance.   We do note performance likely has a trade-off with volatility/ risk with a 36-month standard deviation at 21% and the most significant Fund drawdown of 30-35%, with a high manager turnover over the past 12 months.

The fund follows Allianz Group policy with explicit ESG integration. It has a dedicated ESG analyst to rate and score each investment – if any score is too low, further justification is required for investment. 

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