Janus Henderson China Opportunities Fund I Acc

Asia Equities

Rated Fund 2017-19. Invests in Hong Kong and the US to access Chinese growth

Investors in China have faced difficulties in recent years, but the country’s long-term growth potential remains huge. Charlie Awdry, manager of Janus Henderson China Opportunities since 2006, has proved one of the best at tapping into this market. May Ling Wee joined him as assistant manager in 2015. Awdry is based in London and Ling Wee in Singapore.

Although they buy shares on the Chinese stock exchange, they invest mainly via Hong Kong and increasingly in the US, where many Chinese services companies are listed. More than 65% of Awdry’s £1.1 billion in assets were in companies listed in Hong Kong at the end of 2018 and 15% in the US, with the balance in China-listed companies. The portfolio is concentrated, with just 34 holdings.

The duo looks for companies that can deliver profits growth ahead of expectations, either because of positive industry trends or company specific reasons. The core of the portfolio is in companies with strong competitive positions and high barriers to market entry.

The managers believe there are a number of reasons why investors should consider a stake in China, but the bedrock of the investment case is the rise of consumerism. Young people in China are consuming more than previous generations have, and companies able to pinpoint demand are finding solid opportunities for profit growth.

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 for investors. This is leading to the prospect of tangible change for the better in China. The managers believe the higher returns on capital they expect to materialise are yet to be priced into the Chinese stockmarket.

Narrative and ratings content all as of January 2019.

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
0.87 %
Risk Rating
5
3 Year Sharpe
0.63
3 Year Alpha
0.92
Yield
1.2 %
Benchmark
MSCI AC Zhong Hua GR USD
The Fund aims to provide a combination of capital growth and income. The Fund invests in shares of companies with their registered office in China or Hong Kong or which do most of their business (directly or through subsidiaries) in China or Hong Kong. The Fund may also invest in money market instruments, bank deposits and American depositary receipts (ADRs). The Fund may use derivatives to reduce risk or to manage the Fund more efficiently.
Holding %
Tencent Holdings Ltd 9.78 %
Alibaba Group Holding Ltd ADR 9.51 %
AIA Group Ltd 7.20 %
Ping An Insurance (Group) Co. of China Ltd Class H 5.86 %
Galaxy Entertainment Group Ltd 4.31 %
Sands China Ltd 4.22 %
CNOOC Ltd 4.00 %
ENN Energy Holdings Ltd 3.27 %
China Resources Land Ltd 3.21 %
Ctrip.com International Ltd ADR 3.17 %
Region %
Asia - Emerging 74.90 %
Asia - Developed 24.59 %
Sector %
Consumer Cyclical 35.70 %
Financial Services 16.58 %
Technology 15.55 %
Industrials 6.77 %
Consumer Defensive 6.38 %
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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