China Equity Select Strategy

The Strategy seeks to provide a total investment return in excess of the performance of its benchmark index (the "Index") over the long term.

BENCHMARK: MSCI China 10/40 Index

The investment universe for this Strategy is made up of equity securities of large- and mid-cap companies that are domiciled in or that the Team determines to derive a substantial portion of their revenues from China, including Macau and Hong Kong. This may include securities that trade on mainland China, Hong Kong, or other overseas exchanges.

The Strategy uses a fundamental research-driven investment process to build a high-conviction portfolio of equities that we believe offer sustainable growth prospects at a reasonable valuation. After screening the investment universe, our analysts perform detailed company due-diligence including quantitative forecasts of financial metrics and a rigorous assessment of quality scored on proprietary metrics. Portfolio construction is based on choosing the companies that we believe offer the best combination of quality, sustainable growth, and valuation, while managing portfolio risk. The investment approach is disciplined and takes a long-term perspective.

The Team employs the following constraints in managing the Strategy:

• Number of Equity Issuer Holdings: 30 – 60
• Maximum position in equity securities of an issuer: 5% overweight / 20% maximum
• Sector weight versus the Index: +/- 10%

Note:

The MSCI China 10/40 Index is a trademark of MSCI, Inc.

Equity securities are volatile and can decline significantly in response to broad market and economic conditions.  

Investing in foreign domiciled securities may involve risk of capital loss from unfavorable fluctuation in currency values, withholding taxes, from differences in generally accepted accounting principles or from economic or political instability in other nations.

Investing involves risk including the risk of loss of principal.  

Actively managed strategies do not seek to replicate the performance of a specified index. The Strategy is actively managed and may underperform its benchmarks. An investment in the strategy is not appropriate for all investors and is not intended to be a complete investment program. Investing in the strategy involves risks, including the risk that investors may receive little or no return on the investment or that investors may lose part or even all of the investment. 

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.