Please note: Prior to 26 October 2021, the Company's investment policy was to invest in emerging market funds of funds. Please note that performance data for time periods prior to 26 October 2021 relate to an investment objective and strategy that no longer applies.
Find out more about our investment objective, approach, portfolio and performance.
Our articles, podcasts and videos offer the latest perspectives from our managers on the evolving investment landscape.
In advance of the AGM, in order to provide certainty, whilst encouraging and promoting interaction and engagement with our shareholders, the Board aimed to hold an interactive Online Shareholder Presentation on Wednesday 30 March 2022. The intention was that the shareholders would hear from the Chairman and from the Investment Manager and would be offered the opportunity to ask questions in an interactive question and answer session.
Unfortunately, due to technical difficulties outwith our control that proved to be insurmountable in the time available, we were unable to deliver the presentation or host the Q&A session as planned. We would like to apologise to all those who dialled into the event. We are investigating the causes of the disruption. In the meantime, the Investment Managers have recorded their presentation and answered the pre-submitted questions. The recording of this session is available now below.
An update from our investment manager, Nicholas Yeo - 26 May 2022
As it is still early for the Chinese economy to show signs of recovery following several monetary easing measures, Chinese equities are likely to remain range-bound in the short term. However, incrementally, we have started to see more supportive comments from central government, which is a positive signal and could help to support market sentiment, although we still need to wait for more concrete actions. We remain constructive on the outlook for 2022, especially in the second half, as stimulus starts to work through the system. We also believe Covid measures are gradually likely to become less stringent, while the long-term policy support for the five investment themes that we have identified (aspiration, digitalisation, going green, health and wealth) is intact. Although China is in a loosening monetary cycle, the US Federal Reserve’s policy tightening will continue to see the market tussling between growth and value styles. That said, we do not see the rotation being as sharp as that in developed markets. Nonetheless, we maintain a level of humility over the predictability of such market behaviour by having a balance between value and growth in our portfolio. We believe our barbell approach should help to mitigate volatility, but the underlying premise of only holding quality companies remains unchanged.
China’s equity markets have grown into the second largest financial market in the world, after the US. This is a US$17 trillion market that is both deep and liquid. There are more than 5,000 Chinese companies listed onshore in mainland China and offshore, mostly in Hong Kong and the US, presenting vast opportunity.
Chinese markets are also becoming large and growing components of major global indices. For instance, Chinese equities now make up 33% of the MSCI Emerging Markets Index. If China A Shares (the shares of mainland China-based companies that trade on the two Chinese stock exchanges) were included fully (from the current 20%), this would push the overall weighting of Chinese equities to 53%.
A big driver of growth has been the Stock Connect programme, which was launched in 2014. This opened direct trading links connecting Shanghai and Shenzhen with Hong Kong, making A Shares more accessible to institutional investors outside the mainland. These days, any investor with a brokerage account in Hong Kong can invest in over 2,000 companies listed in Shenzhen and Shanghai. Two-way investor flows between mainland China and Hong Kong have flourished as a result.
Another draw is the low correlation of Chinese equities and other asset classes. In other words, A Shares provide a great opportunity to diversify portfolio risk and potentially enhance returns.
Investing in both the onshore and offshore markets offers an extensive range of opportunities across these markets. With the onshore market, investors gain greater exposure to unique sectors such as baijiu (a popular liquor), as well as the faster growing new economy ones like electric vehicles and batteries, specialist technology and niche industrial areas. As for the offshore market, investors gain more access to internet and e-commerce companies, along with investment opportunities in telecoms.
More broadly, China’s financial reforms continue to improve the accessibility and liquidity of the domestic market. With more international investors’ participation in the A-share market, it could shine a light on global best practice and help to raise governance standards of local companies over time.
abrdn sees tremendous opportunity in China, and the portfolio is well positioned to capitalise on key areas of structural growth.
Nicholas holds a BA (Hons) in Accounting and Finance from The University of Manchester and an MSc in Financial Mathematics from Warwick Business School. Nicholas is a CFA charterholder.
Elizabeth Kwik is an Investment Manager on the China/Hong Kong Equities Team at abrdn where she is responsible for researching the Consumer Discretionary, Automobiles & Components and Banking sectors. Elizabeth sits on the China A share and All China equity fund portfolio construction groups (pods). Elizabeth joined abrdn in 2013.
Elizabeth holds a Bachelor of Science in Economics from the London School of Economics. She is a CFA charterholder.
Director and Head of Equities, China
Nicholas holds a BA (Hons) in Accounting and Finance from The University of Manchester and an MSc in Financial Mathematics from Warwick Business School. Nicholas is a CFA charterholder.
Investment Manager
Elizabeth Kwik is an Investment Manager on the China/Hong Kong Equities Team at abrdn where she is responsible for researching the Consumer Discretionary, Automobiles & Components and Banking sectors. Elizabeth sits on the China A share and All China equity fund portfolio construction groups (pods). Elizabeth joined abrdn in 2013.
Elizabeth holds a Bachelor of Science in Economics from the London School of Economics. She is a CFA charterholder.
United Kingdom Resident - is a partner of Res Familiaris LLP, a London based wealth and corporate management advisory boutique. Prior to joining Res Familiaris in 2010, Eleonore spent 20 years in the financial services industry as an economist, researcher and asset allocator in both the traditional and alternative investment arena. She started her career in 1992 at Dubin & Swieca Capital Management's branch in France, before joining Standard & Poor's Rating Agency in 1998. She was then appointed CIO of a French family office in 2003 before moving to London in 2010.
Guernsey resident - is a chartered accountant and has been employed by Saffrey Champness , a top 20 firm of chartered accountants since 1984. She qualified as a chartered accountant in 1988, and became a partner in the London office in 1998. Since 2000 she has been based in the Guernsey office where she is a Client Liaison Director, responsible for trust and company administration.
She is a director of CQS Natural Resources Growth and Income PLC, Landore Resources Limited, UK Mortgages Limited and JP Morgan Global Core Real Assets Limited. She is Chairman of the Audit Committee.
Chairman
Non-Executive Director
United Kingdom Resident - is a partner of Res Familiaris LLP, a London based wealth and corporate management advisory boutique. Prior to joining Res Familiaris in 2010, Eleonore spent 20 years in the financial services industry as an economist, researcher and asset allocator in both the traditional and alternative investment arena. She started her career in 1992 at Dubin & Swieca Capital Management's branch in France, before joining Standard & Poor's Rating Agency in 1998. She was then appointed CIO of a French family office in 2003 before moving to London in 2010.
Non-Executive Director
Non-Executive Director
Guernsey resident - is a chartered accountant and has been employed by Saffrey Champness , a top 20 firm of chartered accountants since 1984. She qualified as a chartered accountant in 1988, and became a partner in the London office in 1998. Since 2000 she has been based in the Guernsey office where she is a Client Liaison Director, responsible for trust and company administration.
She is a director of CQS Natural Resources Growth and Income PLC, Landore Resources Limited, UK Mortgages Limited and JP Morgan Global Core Real Assets Limited. She is Chairman of the Audit Committee.
Non-Executive Director
| Year End | 31 October |
| Accounts Published | February |
| Annual General Meeting | April |
| Dividend Paid | Annual/semi-annual |
