We invested in this Hong Kong based fund after 18-months of due diligence which included meeting with the portfolio managers on multiple occasions.
We wanted to exposure to the listed Chinese equity market, but we also wanted to mitigate the risk of one of the most volatile markets in the world.
Where as an ETF (exchange-traded fund) would replicate the Chinese index, most investors are not aware that approx. 43% of the MSCI China Index is made of two companies (Alibaba & Tencent).
The China AMC Opportunities Fund takes a more balanced approach with exposures to domestic industries that are more reflective of the broader & well-established Chinese economy.
These industries include domestic healthcare, transport & consumer staples.
We are more than comfortable forgoing returns from the high flyers listed in China to achieve a risk-adjusted return well within our internal parameters.