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
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Team

6032, 6036, 6031
Jonathan Pines

Jonathan Pines, CFA

Co-portfolio manager

Sandy Pei

Sandy Pei, CFA

Co-portfolio manager

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Product Information

For the latest performance and vital information – including prices, key facts, identifiers and ratings

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Insights

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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.

Active ESG on blue background

Responsible, active investing for long-term performance.

Federated Hermes
China Equity
Sustainable on green background

Thematic and values-based approaches for sustainable outcomes.

Impact on orange background

Mission-led investment strategies to create positive impact.