This is a financial promotion for The First Sentier China Strategy. This information is for professional clients only in the EEA and elsewhere where lawful. Investing involves certain risks including:
- The value of investments and any income from them may go down as well as up and are not guaranteed. Investors may get back significantly less than the original amount invested.
- Currency risk: the Fund invests in assets which are denominated in other currencies; changes in exchange rates will affect the value of the Fund and could create losses. Currency control decisions made by governments could affect the value of the Fund's investments and could cause the Fund to defer or suspend redemptions of its shares.
- Single country / specific region risk: investing in a single country or specific region may be riskier than investing in a number of different countries or regions. Investing in a larger number of countries or regions helps spread risk.
- China market Risk: although China has seen rapid economic and structural development, investing there may still involve increased risks of political and governmental intervention, potentially limitations on the allocation of the Fund's capital, and legal, regulatory, economic and other risks including greater liquidity risk, restrictions on investment or transfer of assets, failed/delayed settlement and difficulties valuing securities..
- Concentration risk: the Fund invests in a relatively small number of companies which may be riskier than a fund that invests in a large number of companies.
- Smaller companies risk: Investments in smaller companies may be riskier and more difficult to buy and sell than investments in larger companies.
For details of the firms issuing this information and any funds referred to, please see Terms and Conditions and Important Information.
For a full description of the terms of investment and the risks please see the Prospectus and Key Investor Information Document for each Fund.
If you are in any doubt as to the suitability of our funds for your investment needs, please seek investment advice.
Specialists in some of the world's fastest-growing markets
Driven by fundamental company research, FSSA Investment Managers delve deep into the Asia Pacific region and Global Emerging Markets to invest in high quality companies that can outperform over the long term. We are bottom-up investors and construct high-conviction portfolios that offer our clients exposure to some of the world’s fastest-growing markets.
We are long-term, responsible investors and have fully integrated environmental, social and governance factors into the investment process. To us, sustainability is not just a label, but a set of values by which we operate. We consider it to be prudent risk management and a fundamental obligation to our clients.
FSSA Investment Managers is an autonomous team within the First Sentier Investors group, with dedicated investment professionals in Hong Kong, Singapore, Tokyo and Edinburgh.
FSSA’s Greater China (China, Hong Kong and Taiwan) and China A-Share portfolios are built company by company and from the bottom up, with little regard for index positioning. We are focused on growth in an absolute return sense and construct portfolios of high quality companies with effective management teams, long-term, sustainable growth drivers and strong financials.
The key investment themes for our China strategies
Dominant consumer franchises
We believe dominant consumer franchises and brands should benefit from rising incomes and the premiumisation trend, and can offer good growth potential over the long term.
High quality financials
Banks and high quality financials should benefit from similar drivers as consumer businesses: demographics, rising incomes and urbanisation.
Rising healthcare spending
China’s per capita spend on healthcare is still relatively low and has room to grow. We believe that companies providing drugs and medical services should benefit from an increased focus on healthcare spending and wellbeing.
We believe an increased focus on research and development should lead to technology champions in niche markets. Domestic component manufacturers could benefit from the trend towards localised production.
CSPC Pharmaceutical is one of the largest drug companies in China. In 2007, a private equity buy-out effectively turned the company into a private enterprise with an ownership structure that aligns management and shareholders .
FSSA Investment Managers has been a long-term shareholder of CSPC and, over time, we have engaged with management on a variety of issues such as broader distribution of compensation and attracting talent.
We also highlighted the benefits of having someone with MNC experience on the board; subsequently the company appointed Mr Chen Chuan, an ex-VP of Johnson & Johnson China, as a director. Our engagement with the company highlighted that management is open-minded and willing to listen, which we see as a positive.
Disclaimer: Reference to specific securities (if any) is included for the purpose of illustration only and should not be construed as a recommendation to buy or sell the same. All securities mentioned herein may or may not form part of the holdings of First Sentier Investors’ portfolios at a certain point in time, and the holdings may change over time.
The FSSA investment team consists of 21 investment professionals based in Hong Kong, Singapore, Tokyo and Edinburgh.
We have a distinct culture and team structure, which has contributed to the stability of the team. Around half of our analysts joined as graduates; and the majority of our portfolio managers have been with us for most of their careers.
Our team members come from diverse backgrounds and speak 15 local languages and dialects, which contributes to the quality of research and analysis when meeting with companies. All portfolio managers are, first and foremost, also analysts; and the entire team contribute stock ideas to each of our client portfolios.
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