General risks: The value of investments, and any income generated from them, can fall as well as rise. Where charges are taken from capital, this may constrain future growth. Past performance is not a reliable indicator of future results. If any currency differs from the investor's home currency, returns may increase or decrease as a result of currency fluctuations. Investment objectives and performance targets may not necessarily be achieved, losses may be made.
Until recently China’s role in the global economy was confined to it being the world’s largest trading nation.
China is now stirring and expanding its role beyond trade to include finance and investment.
Investors are well aware of the urbanisation story in China. Yet it is rural China, making up 40% of the population, which is now the focus of Xi Jinping’s next great transformation.
Written in partnership with SOAS’ Robert Ash, the Investec Investment Institute has analysed the significance of this opportunity, the political and economic drivers and the implications for investors.
Exploring the ‘soft power’ negotiating tools used by the US against rising adversary China.
Read moreTechnology is quickly becoming the most significant area of competition in the US-China rivalry.
President Trump launched his trade war in an effort to blunt China’s economic rise. But is he too late?
Read more
The Strategy aims to provide long-term capital growth primarily through investment in equities or equity-related securities issued by Chinese companies listed anywhere in the world.
Greg Kuhnert
Co-Portfolio Manager
Wenchang Ma
Co-Portfolio Manager
*Performance target may not necessarily be achieved, losses may be made.
The above guidelines are internal and subject to change without prior notice.
The Strategy aims to provide income with the opportunity for long-term capital growth primarily through investment in a portfolio of debt securities issued by Chinese borrowers both offshore and in mainland China.
Wilfred Wee
Portfolio Manager
Peter Eerdmans
Portfolio Manager
Performance target will not necessarily be achieved, losses may be made.
Specific risks
All China Bond and All China Equity have the following risks:
Geographic / Sector: Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean that the resulting value may decrease whilst portfolios more broadly invested might grow. Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income. Emerging market (inc. China): These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems.
All China Bond has the following risks:
Default: There is a risk that the issuers of fixed income investments (e.g. bonds) may not be able to meet interest payments nor repay the money they have borrowed. The worse the credit quality of the issuer, the greater the risk of default and therefore investment loss. Derivatives: The use of derivatives may increase overall risk by magnifying the effect of both gains and losses leading to large changes in value and potentially large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss. Interest rate: The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise. Government securities exposure: The Fund may invest more than 35% of its assets in securities issued or guaranteed by a permitted sovereign entity, as defined in the definitions section of the Fund’s prospectus.
All China Equity has the following risks:
Derivatives: The use of derivatives is not intended to increase the overall level of risk. However, the use of derivatives may still lead to large changes in value and includes the potential for large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss. Equity investment: The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company. Concentrated portfolio: The portfolio invests in a relatively small number of individual holdings. This may mean wider fluctuations in value than more broadly invested portfolios.
Important information
All information is as at 31.12.18 unless otherwise stated.