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.
Overview
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:
Team
5954, 5958, 5953
Jonathan Pines, CFA
Lead Portfolio Manager, Asia ex-Japan, Federated Hermes Limited
Sandy Pei, CFA
Deputy Portfolio Manager, Asia ex-Japan, Federated Hermes Limited
Product Information
For the latest performance and vital information – including prices, key facts, identifiers and ratings
