China Evolution Equity Fund

Investment involves risk. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

Strategy

Fund Summary

Actively managed and invests mainly in a diversified portfolio of shares of Chinese companies and may have significant exposure to smaller capitalisation companies.

No data available

Risks

The following risks are materially relevant to the fund. Please click here to view the definitions of the risks listed below.

Country risk – China
Currency
Emerging markets
Equities
ESG
Geographic concentration
Investment fund
Issuer concentration
Management
Market
Operational
Small/mid cap
Stock Connect

Typical Investor

Designed for investors who plan to invest for the medium to long term.

The fund may appeal to investors who:

are interested in investment growth.
are looking to diversify their investments, in particular existing investments in developed markets
understand and can accept the risks of the fund, including the risks of investing in China.

Purchases

Please Note

There is currently limited Purchases & Sales data for this fund. Please contact us for more information.

Sales

Please Note

There is currently limited Purchases & Sales data for this fund. Please contact us for more information.

30-Jun-2022 - Wenli Zheng, Portfolio Manager,

We bought shares of Yantai Jereh Oilfield Services, a manufacturer of oilfield equipment such as those used in fracturing shale to extract oil and gas.�
We invested in China Oilfield Services, one of the largest Chinese oil services companies engaged in offshore drilling, well services, marine support, and geophysical services.
KE Holding is an integrated an integrated online and offline platform for housing transactions. We bought shares of KE Holdings because we think it will benefit from the potential recovery of the property cycle in the second half of the year. The company delivered consensus-beating first-quarter results. The acquisition of KE Holdings shares also ties into our belief that the market opportunity has changed to aftermarket services from property development given the former's potential for longer-term growth.
We sold some shares of Country Garden Services, a property management firm, and China Resources Land, the only property developer we own, to fund the purchase of KE Holdings shares.
We topped up our position in China Resources Mixc Lifestyle Services, a residential and commercial property management company, which was spun off from China Resources Land. Renowned for managing shopping malls, China Resources Mixc has one of the country's largest portfolios of high-end malls.� In our view, the stock is a way to benefit from the consumption upgrade in China.
We bought shares of Yum China Holdings, the license holder of fast-food chain brands in China such as KFC, Pizza Hut, and Taco Bell. We view Yum China as an earnings compounder and a reopening and COVID-off beneficiary. We think the underlying fundamentals of its business are solid despite the disruptions from COVID. We like its strong balance sheet and increasing commitment to return value to shareholders.
H World, formerly known as Huazhu, is one of the top hotel chain operators and franchisors in China. With the relaxation of COVID-induced mobility curbs in the quarter, we expect it to benefit from the return of domestic travel.
We bought shares of Pop Mart International, a collectible toy maker that is known for its trademark "blind boxes" which contain unidentified characters, a format that drives repeated sales as customers, mostly affluent teenagers and young adults, seek to secure the rarest collectibles. We like the company's robust intellectual property capabilities, good product offerings, fast-growing membership, and a high repurchase rate.
Autel Intelligent is a supplier of auto intelligent diagnostic systems. We eliminated our position given the rising costs of chips and shipping, as well as research and development expenses which weighed on the stock.
We bought shares of Zhejiang Hangke Tech, a lithium battery back-end equipment supplier because we believe it will likely benefit from margin recovery, driven by the strong capital expenditure cycle ahead in the global lithium battery industry. Major lithium battery manufacturers have announced capacity expansions driven by strong demand from EV and energy storage systems.� Hangke's order backlog acceleration and margin recovery will likely be boosted by the capex cycle of Korean battery makers, which are among its major clients.
We sold all shares in Ocean's King Lighting Service as heightened competition has negatively affected this leading industrial lighting solution provider.
We sold out of Win Semiconductors, one of the largest foundries for nonsilicon-based semiconductor components, given its global exposure as its products are mainly sold to the U.S. and Europe.
We bought shares in BOE Varitronix, a company engaged in the liquid crystal display (LCD) business, which counts the auto sector as its market. Its market share globally is increasing as EVs are using more screens and larger size panels. BOE is one of a few companies with a more advanced LCD manufacturing facility.

Disclosure on Vendor Indices can be found here.

Current Year Performance

Annualised Performance

Team

Fees

Risks

Typical Investor

Calendar Year Performance

Cumulative Performance

Top 10 Holdings

Purchases

Sales

Sector Attribution

Team