The investment objective of the Sub-Fund is to achieve medium to long-term capital appreciation primarily through equity-based investments in equity and equity-related securities of “leading” companies which are incorporated in, have their area of primary activity in or are related to the growth of the economy in Mainland China. There can be no assurance that the Sub-Fund will achieve its investment objective.
The Sub-Fund will invest at least 70% of its Net Asset Value (“NAV”) in equity or equity-related securities of companies whose activities are closely related to the economic development and growth of Mainland China. The Sub-Fund places emphasis on sectors and “leading” companies that, in the opinion of the Manager, exhibit growth investment characteristics, such as above-average growth rates in earnings or sales and high or improving returns on capital. Such companies may also have attained or exhibited potential to attain above average market share in the geography they operate, or in one or more products or services within its principal sector.
These companies may be listed in Hong Kong, Singapore, Taiwan, the United States and Mainland China. Equity and equity-related securities include but are not limited to common stocks, preference shares, American Depository Receipts (“ADRs”) and Global Depository Receipts (“GDRs”). The Sub-Fund may invest in equity or equity-related securities of companies of any capital size. The Sub-Fund may invest into Mainland market with less than 30% of its non-cash assets. The Manager may invest less than 30% of the Sub-Fund's non-cash assets in A-Shares listed on the Shanghai Stock Exchange or the Shenzhen Stock Exchange directly through the Shanghai-Hong Kong Stock Connect or the Shenzhen-Hong Kong Stock Connect (together, the “Stock Connect”) or via the Manager’s RQFII status.
The Manager is of the view that long-term returns can most efficiently be achieved by identifying good quality stocks at a reasonable price and holding them for the long term. An estimate of a company's worth is analysed in two stages, assessing quality then price. Quality is defined with reference to management, business focus, balance sheet and corporate governance. Price is calculated relative to key financial ratios, market, peer group and business prospects. Generally, the Sub-Fund is run with an emphasis on traditional buy-and-hold investment resulting in low turnover.
The Sub-Fund may invest in financial derivative instruments (“FDIs”) for hedging purposes only. The Sub-Fund will not write any options. The Sub-Fund will not invest in any FDIs for investment purpose.
The Sub-Fund may also invest no more than 30% of the NAV in money market funds, cash or cash equivalents, to the extent not invested in accordance with the above, for cash management purpose, except under exceptional circumstances (e.g. market crash or major crisis), the Sub-Fund may invest temporarily up to 100% of the NAV in liquid assets such as bank deposits, certificates of deposit, commercial paper and treasury bills for cash flow management.
The Sub-Fund currently has no intention to invest in structured deposits, structured products or over-the-counter securities, or to take any short positions, and the Manager will not enter into any securities lending, sale and repurchase or reverse-repurchase transactions or other similar over-the-counter transactions in respect of the Sub-Fund. The Sub-Fund will not invest in collateralised and/or securitised securities (including asset backed commercial papers and mortgage backed securities). If any of this changes in the future, prior approval of the SFC will be sought (if required) and not less than one month’s notice will be provided to Unitholders before the Sub-Fund enters into any such transaction.
Class A (Acc) USD
Class A (Dis) USD
Class I (Acc) USD
Class I (Dis) USD
Class A (Acc) HKD
Class A (Dis) HKD
Class I (Acc) HKD
Class I (Dis) HKD
Class X (Acc) HKD
Class X (Acc) USD
Class X (Acc) Hedged RMB
Management Fee (p.a.)
* (% Net Asset Value of the Sub-Fund per annum)
*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.
Copyright? 2023. E Fund Management (Hong Kong) Co., Limited.
E Fund Management (Hong Kong) Co., Limited is the issuer of this report. This report is neither an offer nor solicitation to purchase units of the fund; applications for units may only be made on forms of application available with the Explanatory Memorandum. Investments are subject to investment risks, fund value may go up as well as down and past performance is not indicative of future performance. Investors should read carefully the Explanatory Memorandum (including the section “Risk Factors”) for the relevant risks associated with the investment in the fund before investing.
Distribution of this report may be restricted in certain jurisdictions. This report does not constitute the distribution of any information or the making of any offer or solicitation by anyone in any jurisdiction in which such distribution or offer is not authorized or to any person to whom it is unlawful to distribute such a report or make such an offer or solicitation. This report is exempted from pre-vetting and authorization by the Securities and Futures Commission of Hong Kong and has not been reviewed by the Securities and Futures Commission of Hong Kong.
SFC authorization is not a recommendation or endorsement of a scheme nor does it guarantee the commercial merits of a scheme or its performance. It does not mean the scheme is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.