Launched five years ago, the Allianz Global Investors Greater China Fund invests in Hong Kong, Taiwan, and China companies and has already delivered impressive returns. 

The fund has a relatively concentrated portfolio averaging between 30-34 holdings, and turnover has been relatively low, averaging less than 20% in the past three years. 

ESG is included in the investment process drawing on the proprietary integrated ESG framework developed at Allianz Global Investment Group. For Taiwanese equities, the investment team reviews company Corporate Social Responsibility reports and their ESG scorecard produced by index compilers as part of an overall ESG assessment and rating.  For Chinese A-shares and Hong Kong shares,  Allianz has a dedicated ESG analyst who rates corporates’ ESG scores by incorporating external data sources into the overall analysis. ESG issues are discussed with relevant equity analysts and investment managers to determine if investments can still be made in issuers with lower ratings. 

The fund’s robust performance has been accompanied by considerable volatility, although somewhat typical of China-focused funds.    Returns on IRR is 9.7%, and after the management of 2.0% and 0.26% custodian fee, the net return is only 7.44%. However, volatility over a 36-month annual standard deviation of 71.18%, this fund has super high volatility, which retail investors may not be able to stomach. 

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