T. Rowe Price Funds SICAV
China Evolution Equity Fund
Seeking to identify rising stars in China’s sea change with a differentiated solution that goes beyond the top 100 China mega-cap companies.
Key features
Full flexibility
- No limit on A/H share or American depositary receipt (ADR), with MSCI China All Shares Index Net as benchmark.
Potential future winners
- Identifies beneficiaries of domestic consumption, AI adoption, import substitution, green transition, industrial upgrade, and many more.
- We believe mispricing could arise in areas where future fundamentals will be different from the past.
Differentiated solution
- Seeks to go beyond the obvious top 100 mega-cap names and focus on the less efficient part of the market.
- Results in little overlap with other China equity funds.
Portfolio Manager Wenli Zheng explains how the strategy creates value and opportunities for investors.
Q1: Why should investors consider the China Evolution Equity Strategy?
China Evolution Strategy looks to create value from two angles.
The first one is to identify companies with high growth potential: the companies that can grow from small-cap / mid-cap to large-cap over time.
China is a deep market with some of the best growth opportunities, but we think most of the investors, they concentrate on a very few crowded pockets.
China Evolution looks to go beyond the obvious and identify the under-discovered gems.
Second, China Evolution aims to capitalise on the mispriced opportunities created by this relatively inefficient market.
We believe our fundamental-driven, long-term approach positions us very well for such opportunities.
We believe that having this multi-dimensional framework allows us to go after the best opportunities and navigate through different market cycles.
Q2: What characteristics do you look for in a stock for the China Evolution Equity Strategy?
China Evolution mainly focuses on three types of opportunities.
The first is long-term compounders that can offer durable growth over the medium-to-long term.
The second is the business fundamentals that are improving, driven by product cycles or driven by operational turnaround.
The third bucket contain quality businesses that are trading at attractive valuation due to temporary but fixable issues.
In all these three situations, we look for good or improving fundamentals. At the same time, we emphasise on understanding the factors that drive the disconnect between the fundamentals and valuation.
We believe that a good business can only become a good investment at the right price.
Key takeaway
The strategy looks to create valuefrom two angles: discovering hidden gems and capitalising on opportunities from market inefficiency. When looking for stocks in the strategy, we focus on three key areas:
- Long-term compounders
- Improving fundamentals
- Attractively valued quality businesses
Fund at a glance
China Evolution Equity Fund (Class A-USD)
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.
| Inception date | 10 August 2020 |
| Base currency | USD |
| Annual management fee* | Up to 1.70% |
| ISIN code | LU2187417386 |
| Bloomberg code | TCEEAUI LX |
| Benchmark^ | MSCI China All Shares Net Index |
Documents
More about this fund
* Full details of the fees payable by investors are available within the offering document.
^ This benchmark is shown for comparison purposes only.
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Important Information
Unless otherwise stated, all data is sourced from T. Rowe Price. Certain numbers in this website may not add due to rounding and/or the exclusion of cash.
Investment involves risk. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can fall as well as rise. You may get back less than the amounted invested. The performance returns are denominated in the share class dealing currency which can be a foreign currency and if so, US/SG dollar-based investors are exposed to fluctuations in the US/SG dollar/foreign currency exchange rate. Before deciding to invest in the fund, you should read the offering document/prospectus (including its investment objectives, policies and any risk warnings) and the product highlights sheet which are available and may be obtained from any appointed distributors.
T. Rowe Price Singapore Private Ltd. is the appointed Singapore representative and agent for service of process in Singapore. SICAV refers to the T. Rowe Price Funds SICAV, a Luxembourg investment company with variable capital which is registered with Commission de Surveillance du Secteur Financier and which qualifies as an undertaking for collective investment in transferable securities (“UCITS”).
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