China Equity

Seeking to deliver long-term outperformance through a contrarian style and absolute return mindset.

Reasons to invest

Strong, stable team with long-term track record

Having founded our Asia ex-Japan strategy in 2010 the team has consistently outperformed the relevant benchmark1.

Large and liquid, with likely increasing importance in key benchmarks

The China A-share market is the second largest globally by market cap, liquidity and turnover.

Low correlation

Low correlations to other global stock exchanges, offering risk-adjusted diversification benefits.

Inefficiencies

Capital structure inefficiencies provide opportunities to add alpha opportunistically.

Contrarian style is differentiated

A contrarian style and absolute return mindset that we believe works well in volatile and inefficient markets.

Appropriate ESG integration

Effective engagement with companies open to improving their ESG profile.

1 The inception date for the Asia ex-Japan Strategy is 1 January 2010; the benchmark is MSCI China All Shares Index. Returns achieved by our Asia ex-Japan Strategy do not guarantee similar, future results for our China Strategy. Past performance is not a reliable indicator of future results.

Why China Equity?

Sandy Pei
By investing with high conviction in companies leading the sustainability transition, we target financial outperformance and positive outcomes.
Sandy Pei
- Co-portfolio manager

How we invest

High-conviction, bottom-up process industry screening and thematic research
Active engagement to bring about change
Robust risk management framework

Investment philosophy and process

Reducing 7,500 stocks to a high conviction portfolio of 30-60 holdings:
Animation investment process
Chart

Team

6012, 6016, 6011
Jonathan Pines

Jonathan Pines, CFA

Lead Portfolio Manager, Asia ex-Japan, Federated Hermes Limited

Sandy Pei

Sandy Pei, CFA

[12:02] Ptolemy Archard-Noble Deputy Portfolio Manager, Asia ex-Japan, Federated Hermes Limited

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