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?
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
Co-portfolio manager
Sandy Pei, CFA
Co-portfolio manager
Product Information
For the latest performance and vital information – including prices, key facts, identifiers and ratings
Our Purpose
To deliver sustainable wealth creation
Aware of limitations specific to that country, Federated Hermes China Equity Strategy aims to deliver Sustainable Wealth Creation: the generation of wealth through investments that enrich investors, society and the environment over the long term.
Our business provides three equally powerful pathways to achieving this aim. China Equity takes the Active ESG route.
Responsible, active investing for long-term performance.
- Financial objective
- Best-practice integration of ESG analysis and engagement insights
- Some capabilities may enforce exclusions that reflect Portfolio Managers’ investment views
- Delivery of sustainable outcomes through effective stewardship
Federated Hermes
China Equity
China Equity
Thematic and values-based approaches for sustainable outcomes.
- Financial and sustainability objectives
- Best-practice integration of ESG analysis and engagement insights
- Exposure to sustainability themes
- Exposure to ESG leaders and industry exclusions that reflect sustainability values
- Delivery of sustainable outcomes through effective stewardship
Mission-led investment strategies to create positive impact.
- Financial and impact objectives
- Best-practice integration of ESG analysis and engagement insights
- Focus on companies generating impact or undergoing positive transformation
- Some capabilities may enforce exclusions that reflect defined sustainability values, impact considerations, or both
- Delivery of sustainable outcomes through effective stewardship
