Fund Rationale: Allianz All China Equity Fund

Allianz All China Equity Fund (the "Fund")
SGD Hedged Class AT Accumulation Shares (ISIN: LU1794554557)
Fund Manager Page, Factsheet
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Endowus has selected the Fund as it offers:

  • Systematic top-down allocation to capture long-term growth opportunities in various sectors across both the onshore and offshore Chinese markets (A, B, H shares and ADR);
  • Top-tier returns generated from stock selection backed by strong fundamental conviction, outperforming the benchmark and peer group;
  • Highly experienced China equity PMs and analysts supported by Allianz’s signature Grassroots Research to further complement the fundamental research process; 
  • ESG integration and SFDR Article 8 classification, which is unique for a China equity fund; and
  • Retail share class with 100% trailer fee rebated back to Endowus investors to achieve lower cost of access.

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Key Information

Fund Objective: The Fund aims to attain long-term capital growth by primarily investing in equities issued by Chinese companies domiciled in onshore and offshore PRC, Hong Kong, and Macau equity markets.

Suitability: Investors who pursue the objective of general capital formation and asset optimisation and/or above-average participation in price changes, have basic knowledge and/or experience of financial products and are capable of bearing a financial loss. May not be suitable for investors who wish to withdraw their capital from the Fund within a short or medium timeframe.

Cost:
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  1. Total Fund-level Fees include fund management fee of 1.75%.
  2. This is a retail share class with 100% trailer fee rebated back to Endowus investors to lower the cost of access.
  3. Endowus do not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Fund Characteristics

Fund Inception: 5 December 2017
Share Class Inception: 13 April 2018
Benchmark: MSCI China All Shares

Fund AUM: SGD 2.52bn
Source: MorningStar as of 2 August 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:
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Sector Allocation:
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Source: MorningStar as of 30 April 2021. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown.

Selection Criteria

Endowus has selected the Allianz All China Equity for its disciplined approaches in delivering top-tier returns through a balanced portfolio of Chinese companies listed in the onshore and offshore exchanges, and managed by a highly experienced China equity team leveraging on Allianz’s deep investing expertise in China.

The strategy believes that one of the best ways to gain exposure to China is through a blend of onshore and offshore markets (A, B, H shares and ADR) -- while the China A equities on the onshore exchanges are characterised by high growth and opportunities to reap alpha, the portfolio is balanced with exposures to companies listed on the offshore markets, such as Hong Kong, Taiwan, Macau, and the US, that have established themselves as the key drivers of the Chinese market. To ensure a systematic exposure to the long-term growth opportunities in both buckets, the Fund operates on a benchmark-aware basis, and will not deviate by more than 10% compared to the benchmark (MSCI China All Shares Index) exposure.

Meanwhile from a bottom-up perspective, the Fund is mandated to identify companies with sustainable growth trajectories and reasonable valuation. Recognising that inefficiencies tend to exist in Chinese markets, especially in the China A space that is dominated by sentiment-driven retail investors, the team emphasises the importance of fundamental-driven stock selection to generate high returns in the long term. Portfolio sizing deliberately reflects the fundamental confidence of the team, where new holdings start out at smaller positions and are added as conviction level increases.

We also like the ESG analysis that is fully integrated in the investment process; every holding in the portfolio is subject to ESG tail risk assessment that ultimately determines the long-term prospects of the companies in terms of both material risk and returns, which in turn is reflected in the conviction of the team in deciding the sizing of the names in the portfolio. With this approach, the Fund has earned an SFDR Classification of Article 8.

The team consists of co-PMs Anthony Wong and Kevin You with 15 years of average experience, as well as more than 10 China and regional analysts who specialise in various sectors and facilitate the idea generation and deep coverage of the holdings. In addition, the team is supported by Allianz’s signature Grassroots Research platform that provides independent and on-the-ground analysis and further grants access to granular details on fundamental research, and therefore enabling a more effective assessment of companies in the universe.

Since inception in 2017, the Fund has consistently achieved top-tier performance relative to its peers and the benchmark. Investors may wish to note the occasional periods of volatility in the short term due to the nature of the China market. For investors who believe in the long term growth story of China, they will be rewarded with one of the best risk-adjusted return to the China market through this Fund.

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Updated by Endowus: August 2021

** Disclaimer: Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.
The prospectus, profile statement, product highlight sheet, fund factsheet or other offer or product documents may contain references about the expected risk tolerance of their target investors. These are in no way indicative of how we at Endowus have assessed your risk tolerance based on your stated objectives and financial situation. Endowus accepts no responsibility for investment decisions made in response to the expected risk tolerance levels mentioned in the product or offer documents.