Equity Strategies

China Equity

A core active Greater China-focused equity strategy with a long-term track record.

Early Proponent of China

Nikko AM has been investing in China for close to 15 years, being the first asset management company to be certified by the Chinese authorities as a qualified foreign institutional investor (QFII) in December 2003. The firm has built on this first mover advantage by working in partnership with its local associate Rongtong Fund Management Co. Ltd to develop a differentiated China equity proposition with an intuitive understanding of the China market and nuances at its core – and turning insights into sustainable investment opportunities for clients.

Designed for Insights Intensity

The colossal Chinese market is characterised by an intensity of information that demands a whole new level of research and connectivity that the Nikko AM team is purposefully designed for.
The collaborative team of six portfolio managers and analysts have diverse and complementary background bespoke to China’s evolving structure and developments. The close partnership with Rongtong enables the team to further tap into the expertise and market intelligence of a home-grown entity which is plugged into the uniquely local information network.
The Nikko AM and Rongtong teams with a combined strength of over 40 investment professionals have established strong rapport in analysing information about companies and market research that culminates in the selection of high conviction stocks for our portfolios.

Institutional Make-up

The research advantage complements the institutional DNA of Nikko AM’s portfolio construction process – an investment process that is aligned with client interests and time tested. With institutional discipline and high conviction, the team looks beyond crowded trades for growth stocks with the potential for sustainable returns. The research-driven, structured approach distils inherent market inefficiencies to systematically manage client portfolios towards achieving target alpha with lower volatility and within agreed risk parameters.

The Investment Process

Idea Generation 01

All team members attend structured meetings to discuss stock ideas.

Fundamental Research 02

From idea generation, stocks are selected for further detailed fundamental analysis including Environmental, Social and Governance (ESG) assessment, and actively debate and challenge to determine sustainability of investment thesis. Substantiated with a minimum of 3-year cashflow and earnings forecast.

Portfolio Construction 03

Includes the buying and selling of stocks based on the internal qualitative and quantitative assessment. Portfolio’s relative sector and style tilts versus macro expectations are assessed to help identify and avoid unintended risks.

Risk Management 04

Risk control involves daily portfolio risk management processes managed by independent risk teams spanning four functions, namely Investment Management, Risk Management, Investment Compliance and Enterprise Risk Management.

Important Information

The funds mentioned are Singapore registered funds approved for sale or purchase in Singapore. By proceeding, you are representing and warranting that you are either resident in Singapore or the applicable laws and regulations of your jurisdiction allow you to access the information.

The information on this website is not intended to be an offer, or a solicitation of an offer, to buy or sell any product or service to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the laws of such jurisdiction.

This website may contain links to the website of certain overseas affiliates of Nikko Asset Management Asia Limited (“Nikko AM Asia”). However, providing such links should not be considered as offering or solicitation by Nikko AM Asia of any product or service of its affiliates to any person.

This website is purely for informational purposes only with no consideration given to the specific investment objective, financial situation and particular needs of any specific person. It should not be relied upon as financial advice. The mention of individual securities, sectors, regions or countries within this website are for illustration purposes only and does not imply a recommendation to buy or sell. You should seek advice from a financial adviser before making any investment. In the event that you choose not to do so, you should consider whether the investment selected is suitable for you. Investments in funds are not deposits in, obligations of, or guaranteed or insured by Nikko AM Asia.

Past performance or any prediction, projection or forecast is not indicative of future performance. The Funds or any underlying funds may use or invest in financial derivative instruments. The value of units and income from them may fall or rise. Investments in the Funds are subject to investment risks, including the possible loss of principal amount invested. You should read the relevant prospectus (including the risk warnings) and product highlights sheet of the Funds, which are available and may be obtained from appointed distributors of Nikko AM Asia or our website (www.nikkoam.com.sg) before deciding whether to invest in the Funds.

The information contained herein may not be copied, reproduced or redistributed without the express consent of Nikko AM Asia. While reasonable care has been taken to ensure the accuracy of the information as at the date of publication, Nikko AM Asia does not give any warranty or representation, either express or implied, and expressly disclaims liability for any errors or omissions. Information may be subject to change without notice. Nikko AM Asia accepts no liability for any loss, indirect or consequential damages, arising from any use of or reliance on this website.

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