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Risk Considerations

  1. The Fund is actively managed and invests mainly in a diversified portfolio of shares of Chinese companies and may have significant exposure to smaller capitalisation companies. 
  2. Investment in the Fund involves risks, including general investment risk, equity market risk, geographic concentration risk,  small and mid-capitalisation shares risk, risks associated with SME board, ChiNext market and STAR board, risks associated with the Stock Connect, emerging markets risk, risk associated with high volatility of equity markets in emerging countries (including China), risk associated with regulatory/exchanges requirements of the equity markets in emerging countries (including China), renminbi (RMB) currency and conversion risks, PRC tax risk, risks associated with depositary receipts and currency risk which may result in loss of a part or the entire amount of your investment.  
  3. The Fund may use derivatives for hedging and efficient portfolio management and is subject to derivatives risk. Exposure to derivatives may lead to a risk of significant loss by the Fund.
  4. The value of the Fund can be volatile and could go down substantially.
  5. Investors should not invest in the Fund solely based on this website.

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.

China Evolution Equity Fund
An actively managed, style agnostic, index unconstrained portfolio investing in c. 40-80 names across A-shares, H-shares and US-listed Chinese stocks. We focus on areas of the market that may be overlooked by some investors, going beyond the top 100 largest companies in the China universe by market cap to identify future winners.
ISIN LU2187417386
30-Nov-2023 - Wenli Zheng, Portfolio Manager,
We believe that China’s subdued post-pandemic recovery is cyclical to a large extent and that the country is going through a financial deleveraging phase, as reflected in its property sector. Still, we continue to find high-quality, attractively priced opportunities in areas that are experiencing industrial upgrading, rising consumption, and companies gaining market share through consolidation.

Fund Summary
Our approach focuses on uncovering stocks where change and growth are underappreciated or undiscovered. Leveraging our long history of investing in China, we seek to identify innovative companies beyond the widely owned mega cap stocks that offer the long-term potential for durable or accelerating growth or a fundamental rerating. The manager is not constrained by the fund's benchmark, which is used for performance comparison purposes only.
Performance - Net of Fees

Past performance is not a reliable indicator of future performance.

30-Nov-2023 - Wenli Zheng, Portfolio Manager,
Chinese equities recorded gains in November in US dollar terms amid hopes of a pivot to more growth-supportive policies, helped by reduced friction with the US following the meeting between US President Joe Biden and Chinese leader Xi Jinping. Within the portfolio, stock selection in information technology boosted relative returns. In particular, our off-benchmark position in a provider of backend equipment for the semiconductor industry helped due to the increasing adoption of advanced packaging in the seminconductor industry. Owning shares of a liquid crystal display maker for automobiles worked well for the fund as the market reacted positively to the company expanding its customer base. Our lack of exposure to financials also served us well due to weakness in insurers and lacklustre third-quarter results. Consumer discretionary lifted relative returns further, thanks to stock selection. Not owning an e-commerce group was beneficial due to market disappointment over its restructuring plans. Among stocks we own, our position in an electric vehicle startup contributed due to its record November sales. Conversely, stock selection in consumer staples hurt. Owning a brewer detracted due to concerns about a recovery in consumption.
30-Nov-2023 - Wenli Zheng, Portfolio Manager,
Industrials and business services was our largest sector position. We favour companies that benefit from the structural trends of industrial or technology upgrading. In this sector, we own names that will likely gain from the electrification trend, such as a component maker for electric vehicles (EVs), a relay producer for EVs, and a maker of aerial work platforms that is transitioning from diesel-powered models to electric ones. We also hold shares in an electrical equipment company that benefits from the digitisation of China’s power grid and a shipbuilder that has profited from a favourable supply-demand outlook and industry consolidation.