Janus Henderson China Opportunities Fund I Acc

Asia-Pacific Equities

This fund has been placed on performance watch (24 April 2020). For further details see here.

 

Rated Fund 2017-20. Invests in Hong Kong and US to access Chinese growth

Investors looking for a more conventional way to access China than Fidelity China Special Situations could consider Janus Henderson China Opportunities. Although it owns shares listed on the Chinese stock exchange, it invests mainly via Hong Kong and increasingly the US, where many Chinese services companies are listed. Around 65% of its £1.2 billion of assets were in companies listed in Hong Kong at the end of 2019, while 19% was in the US, with the balance in China-listed companies. The portfolio is concentrated in just 37 holdings.

Charlie Awdry, its manager since 2006, runs the fund from London. May Ling Wee joined him as assistant manager based in Singapore in 2015. The duo mixes macro- and micro-thinking: they look for companies that can deliver profits growth ahead of expectations because of either positive industry trends or company-specific factors. The core of the portfolio is in firms with strong competitive positions and high barriers to entry. Turnover is around the 100% mark, as a result of the decisive action often taken when industry views and near-term expectations change.

The managers believe investors should consider a stake in China for several reasons, but the bedrock of the investment case is the rise of consumerism in China. Younger people are consuming more than previous generations did, so companies able to tap into rising consumer demand will be well-placed to prosper.

China’s evolving reform agenda, led by President Xi Jinping, widely regarded as the strongest and most powerful leader since Mao Zedong, is another compelling factor. This is leading to the opportunity for profound change. The managers believe expected higher returns on capital are yet to be priced into the Chinese stockmarket.

Narrative and ratings content all as of January 2020.

See all Money Observer rated funds
Name
Janus Henderson China Opportunities Fund I Acc
Manager
Janus Henderson Investors
Type
Open Ended Investment Company
ISIN
GB00B5T7PM36
Sector
China/Greater China
Launched
27/07/2011
OCF
0.85 %
Risk Rating
4
3 Year Sharpe
0.42
3 Year Alpha
-0.93
Yield
0.9 %
Benchmark
MSCI AC Zhong Hua GR USD
The Fund aims to provide a return, from a combination of capital growth and income over the long term. The Fund invests at least 80% of its assets in a concentrated portfolio of shares (equities) and derivatives (complex financial instruments) of companies, of any size, in any industry, in China or Hong Kong. Companies will have their registered office in or do most of their business (directly or through subsidiaries) in this region. The Fund may invest up to 50% of its assets in China A Shares. The portfolio may be concentrated in terms of its number of holdings and/or the size of its largest holdings.
Holding %
Tencent Holdings Ltd 9.89 %
Alibaba Group Holding Ltd ADR 9.33 %
AIA Group Ltd 7.02 %
Hong Kong Exchanges and Clearing Ltd 3.90 %
Longfor Group Holdings Ltd 3.50 %
NetEase Inc ADR 3.41 %
Ping An Insurance (Group) Co. of China Ltd Class H 3.41 %
China Resources Land Ltd 3.23 %
Midea Group Co Ltd Class A 3.14 %
New Oriental Education & Technology Group Inc ADR 2.83 %
Region %
Asia - Emerging 77.88 %
Asia - Developed 22.12 %
Sector %
Consumer Cyclical 23.28 %
Communication Services 17.43 %
Financial Services 14.58 %
Technology 10.37 %
Industrials 9.22 %
Consumer Defensive 8.12 %
Real Estate 6.85 %
Name
Janus Henderson Investors
Address
80206, Denver, United States
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Charles Awdry
Joined 06/12/2006

Charlie Awdry is an Investment Manager for the Chinese Equities strategy at Janus Henderson Investors. Charlie started his investment career with Gartmore in 2001 and joined Henderson as part of the firm’s acquisition of Gartmore in 2011. After working in Hong Kong from 2005 to 2006, he returned to London and became the China fund manager at Gartmore in 2006. Charlie graduated with a bachelor’s degree with first class honours in geography from the University of Bristol. He holds the Chartered Financial Analyst designation. He has more than a decade of experience as lead manager of China equities portfolios.

May Wee
Joined 06/12/2006

May Ling Wee, CFA, is an Investment Manager at Janus Henderson Investors, a position she has held since joining Henderson in 2015. Previously, May Ling was a portfolio manager with Lloyd George Management in Hong Kong managing Greater China and Hong Kong equities. Prior to that, she was an investment analyst with Deutsche Bank, Hong Kong. She began her investment career as a research analyst at Dresdner Kleinwort Wasserstein Securities, Singapore and later Hong Kong. May Ling holds a BCom degree in economics and finance from the University of New South Wales, Sydney.

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