A focus on Asia—and providing compelling investment solutions for our clients—is what we believe distinguishes us among investment managers. Our insights into investment opportunities and risks are backed by proprietary research, a collaborative culture and 30 years of experience.
Investment involves risk. Past performance is not a guide to future performance. It is possible to lose the principal capital of your investment.
The Fund invests primarily in companies located in China which is an emerging market. Investments in emerging markets may involve increased risks such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
The Fund invests primarily in equity securities, which may result in increased volatility.
The Fund may invest in smaller companies, which are likely to carry higher risks than larger companies.
The Fund may invest in financial derivative instruments (“FDIs”). Risk associated with FDIs include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. Exposure to FDIs may lead to a high risk of significant loss by the Fund.
The Fund may use hedging techniques to attempt to offset certain market risks but there is no guarantee that hedging techniques will fully and effectively achieve their desired result.
Pandemics and other public health emergencies can result in market volatility and disruption.
Investors should not invest in the Fund solely based on the information in this website. Please read the Hong Kong Offering Document carefully for further details including risk factors before investing.
The Fund promotes environmental and social characteristics according to Article 8 of SFDR. Furthermore, the Fund uses both activity- and norm-based exclusions. Information relating to the environmental and social characteristics of this Fund is available in the prospectus.
Strategy
The Fund seeks to achieve its investment objective by investing, directly or indirectly, at least 65% of its total net assets, in equities of small companies located in China, and may invest the remainder of its net assets in other permitted assets on a worldwide basis. For the purpose of this policy, China includes the People’s Republic of China, its administrative and other districts, such as Hong Kong, as well as Taiwan. The Fund defines Small Companies as companies with market capitalization no higher than the greater of US $5 billion or the market capitalization of the largest company included in the Fund's primary benchmark, the MSCI China Small Cap Index.
China and Taiwan: China includes its administrative and other districts, such as Hong Kong.
SFDR Classification
Article 8
Fees & Expenses
Management Fee
1.00%
Total Expense Ratio
1.25%
( USD )
1.25%
( GBP )
Objective
Seeks to achieve long term capital appreciation.
Strategy
The Fund seeks to achieve its investment objective by investing, directly or indirectly, at least 65% of its total net assets, in equities of small companies located in China, and may invest the remainder of its net assets in other permitted assets on a worldwide basis. For the purpose of this policy, China includes the People’s Republic of China, its administrative and other districts, such as Hong Kong, as well as Taiwan. The Fund defines Small Companies as companies with market capitalization no higher than the greater of US $5 billion or the market capitalization of the largest company included in the Fund's primary benchmark, the MSCI China Small Cap Index.
Performance
Monthly
Quarterly
Annual Returns
As of 31/07/2024
Annualized Returns
Name
1MO
3MO
YTD
1YR
3YR
5YR
10YR
Since Inception
Inception Date
China Discovery Fund (USD)
-4.81%
-10.20%
-8.88%
-21.22%
-21.10%
0.71%
4.07%
5.39%
29/02/2012
MSCI China Small Cap Index (USD)
-3.65%
-5.84%
-9.19%
-23.67%
-23.08%
-9.20%
-4.82%
-2.09%
China Discovery Fund (GBP)
-6.23%
-12.33%
-9.70%
-21.07%
-18.87%
n.a.
n.a.
-2.24%
30/01/2020
MSCI China Small Cap Index - GBP (GBP)
-5.17%
-8.21%
-9.87%
-23.53%
-21.02%
n.a.
n.a.
-8.95%
As of 30/06/2024
Annualized Returns
Name
1MO
3MO
YTD
1YR
3YR
5YR
10YR
Since Inception
Inception Date
China Discovery Fund (USD)
-5.62%
-1.90%
-4.27%
-10.20%
-21.65%
1.71%
4.80%
5.85%
29/02/2012
MSCI China Small Cap Index (USD)
-5.43%
1.98%
-5.75%
-14.07%
-24.89%
-8.90%
-4.07%
-1.81%
China Discovery Fund (GBP)
-5.12%
-1.93%
-3.70%
-10.17%
-19.21%
n.a.
n.a.
-0.85%
30/01/2020
MSCI China Small Cap Index - GBP (GBP)
-4.75%
1.91%
-4.96%
-13.58%
-22.63%
n.a.
n.a.
-8.02%
For the years ended December 31st
Name
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
China Discovery Fund (USD)
-15.73%
-30.72%
-2.88%
77.70%
31.36%
-18.79%
56.47%
-1.96%
2.98%
-3.20%
MSCI China Small Cap Index (USD)
-24.82%
-24.77%
-6.26%
27.21%
6.63%
-19.53%
24.62%
-5.95%
3.48%
-0.34%
China Discovery Fund (GBP)
-20.32%
-22.34%
-1.58%
64.20%*
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
MSCI China Small Cap Index - GBP (GBP)
-29.06%
-15.29%
-5.39%
27.96%*
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
* Performance shown from share class launch date to calendar year end. For reference only as there is insufficient data to provide a useful indication of past performance to investors.
Source: Brown Brothers Harriman (Luxembourg) S.C.A.
All returns over 1 year are annualized
The investment policy of the Fund was changed on 15 December 2021. The performance prior to this date was achieved under circumstances that no longer apply.
Unusually high returns may not be sustainable. Due to current market volatility associated with the COVID-19 pandemic, funds may experience significant negative short-term performance.
Since inception performance for share classes with less than one year of history represents actual performance, not annualised. In addition, for share classes less than a year old, Year to Date Return is calculated since inception.
Performance details provided are based on a NAV-to-NAV basis with any dividends reinvested, and are net of management fees and other expenses. These figures show by how much the share class(es) increased or decreased in value during the period or calendar year being shown, where applicable. Performance data has been calculated in the respective currencies stated above, including ongoing charges and excluding subscription fee and redemption fee you might have to pay.
All performance quoted represents past performance and is not indicative of future performance. Investors may not get back the full amount invested. Investors investing in funds denominated in non-local currency should be aware of the risk of currency exchange fluctuations that may cause a loss of principal.
Where no past performance is shown there was insufficient data available in that year to provide performance.
Additional performance, attribution, liquidity, value at risk (VaR), security classification and holdings information is available on request for certain time periods.
Portfolio Characteristics
(as of 31/07/2024)
Fund
Benchmark
Number of Positions
57
235
Weighted Average Market Cap
$4.5 billion
$1.5 billion
Active Share
89.6
n.a.
P/E using FY1 estimates
11.3x
7.3x
P/E using FY2 estimates
10.0x
6.3x
Price/Cash Flow
7.9
4.2
Price/Book
1.6
0.6
Return On Equity
15.6
6.0
EPS Growth (3 Yr)
20.9%
20.5%
Sources: Factset Research Systems, Inc.
Risk Metrics (3 Yr Return)
(as of 31/07/2024)
Category
3YR Return Metric
Alpha
-1.82%
Beta
0.85
Upside Capture
80.15%
Downside Capture
91.58%
Sharpe Ratio
-0.92
Information Ratio
0.16
Tracking Error
12.47%
R²
80.45
-1.82%
Alpha
0.85
Beta
80.15%
Upside Capture
91.58%
Downside Capture
-0.92
Sharpe Ratio
0.16
Information Ratio
12.47%
Tracking Error
80.45
R²
Fund Risk Metrics are reflective of Class I USD ACC shares.
Top 10 holdings may combine more than one security from the same issuer and related depositary receipts.
Source: Brown Brothers Harriman (Luxembourg) S.C.A
Portfolio Breakdown (%)
(as of 31/07/2024)
Sector Allocation
Market Cap Exposure
China Exposure
Sector
Fund
Benchmark
Difference
Industrials
24.9
14.4
10.5
Consumer Discretionary
16.3
12.5
3.8
Real Estate
11.9
10.8
1.1
Information Technology
10.2
9.7
0.5
Consumer Staples
9.3
6.4
2.9
Health Care
7.5
19.7
-12.2
Communication Services
6.4
7.6
-1.2
Materials
4.4
8.6
-4.2
Utilities
4.2
3.5
0.7
Energy
4.1
1.7
2.4
Financials
0.0
5.1
-5.1
Cash and Other Assets, Less Liabilities
0.7
0.0
0.7
Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com.
Equity market cap of issuer
Fund
Benchmark
Difference
Mega Cap (over $25B)
0.0
0.0
0.0
Large Cap ($10B-$25B)
5.7
0.0
5.7
Mid Cap ($3B-$10B)
47.7
2.5
45.2
Small Cap (under $3B)
45.9
97.5
-51.6
Cash and Other Assets, Less Liabilities
0.7
0.0
0.7
The Portfolio’s market cap exposure breakdown presented is used for comparison purposes and the definition of the capitalization breakdown is from MSCI.
The Fund defines Small Companies as companies with market capitalization no higher than the greater of US$5 billion or the market capitalization of the largest company included in the Fund's primary benchmark, the MSCI China Small Cap Index.
China Exposure
Portfolio Weight
Hong Kong Listed Companies
47.3
Mainland China Listed Companies
29.9
Other
13.5
ADR/GDR
8.5
Cash and Other Assets, Less Liabilities
0.7
Mainland China listed companies includes A Share and B Shares. A Shares are Mainland Chinese companies incorporated in China and listed on the Shanghai or Shenzhen exchanges, available mostly to local Chinese investors and qualified institutional investors. B Shares are mainland Chinese companies listed on the Shanghai and Shenzhen stock exchanges, available to both Chinese and non-Chinese investors. ADRs are American Depositary Receipts and GDRs are Global Depositary Receipts. Hong Kong Listed Companies include SAR (Hong Kong) companies, China-affiliated corporations, and H Shares. SAR companies are companies that conduct business in Hong Kong and/or mainland China. China-affiliated corporations [CAC], also known as "Red Chips," are mainland China companies with partial state ownership listed in Hong Kong, and incorporated in Hong Kong. H Shares are mainland Chinese companies listed on the Hong Kong exchange but incorporated in mainland China. Other represents Chinese companies listed in other countries or non-China companies with a majority of revenue coming from China such as Japan, Singapore, Taiwan and the United States or other non-China companies.
Source: FactSet Research Systems unless otherwise noted. Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Percentage values may be derived from different data sources and may not be consistent with other Fund literature.
Ratings
Ratings based on risk-adjusted return
(as of 31/07/2024)
CATEGORY: Greater China Equity
OVERALL
3 YEAR
5 YEAR
10 YEAR
OVERALL
3 stars
3 YEAR
1 stars
5 YEAR
3 stars
10 YEAR
4 stars
Past performance is no guarantee of future results. High ratings and rankings does not assure favorable performance.
The Overall Morningstar®️ Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and (if applicable) ten-year ratings.
Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
Winnie Chwang is a Portfolio Manager at Matthews and manages the firm’s China Small Companies, China Discovery and China Total Return Equity Strategies and co-manages the China, China A-Share, Pacific Tiger and Asia Dividend Strategies. She joined the firm in 2004 and has built her investment career at the firm. Winnie earned an MBA from the Haas School of Business and received her B.A. in Economics with a minor in Business Administration from the University of California, Berkeley. She is fluent in Mandarin and conversational in Cantonese.
Andrew Mattock is a Portfolio Manager at Matthews and manages the firm’s China, China Small Companies, China Discovery and China A-Share Strategies and co-manages the Pacific Tiger, China Total Return Equity and Emerging Markets Equity Strategies. Prior to joining Matthews in 2015, he was a Fund Manager at Henderson Global Investors for 15 years, first in London and then in Singapore, managing Asia Pacific equities. Andrew holds a Bachelor of Business majoring in Accounting from ACU. He began his career at PricewaterhouseCoopers and qualified as a Chartered Accountant.
Sherwood Zhang is a Portfolio Manager at Matthews and manages the firm’s China Dividend, China Total Return Equity and China A-Shares Strategies and co-manages the China, China Discovery, China Small Companies and Asia ex Japan Total Return Equity Strategies. Prior to joining Matthews in 2011, Sherwood was an analyst at Passport Capital from 2007 to 2010, where he focused on such industries as property and basic materials in China as well as consumer-related sectors. Before earning his MBA in 2007, Sherwood served as a Senior Treasury Officer for Hang Seng Bank in Shanghai and Hong Kong, and worked as a Foreign Exchange Trader at Shanghai Pudong Development Bank in Shanghai. He received his MBA from the University of Maryland and his Bachelor of Economics in Finance from Shanghai University. Sherwood is fluent in Mandarin and speaks conversational Cantonese.
Hardy Zhu is a Portfolio Manager at Matthews and co manages the firm’s Asia Discovery, China, China Small Companies, China Dividend, China Total Return Equity, China Discovery, China A-Share, Emerging Markets Small Companies and Emerging Markets Discovery Strategies. Prior to joining the firm in 2011, Hardy was an Equity Analyst with Delaware Investments researching Chinese equities. Before earning his MBA from Duke University in 2007, Hardy was a senior accountant at PNC Global Investment Servicing from 2000 to 2005. Hardy began his career at China National Nonferrous Metals Import & Export Co., one of the largest state-owned international trading companies in China. He received a Master of Accounting degree from the Virginia Polytechnic Institute and State University and a B.S. in Industrial Foreign Trade from Shenyang Polytechnic University in China. Hardy is fluent in Mandarin.
This information contained herein does not constitute or contain an offer, solicitation or investment advice with respect to the purchase of the Fund described herein or any security. This information is not to be construed as a prospectus, a public offering or an offering memorandum as defined under applicable securities legislation. Prospective investors should consult professional legal, tax and financial advisers as to the suitability of any investment in light of your particular circumstances and applicable citizenship, residence or domicile. Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before making an investment decision. The current prospectus, Supplement for Hong Kong Investors, Product Key Facts Statements ("Hong Kong Offering Document") and other offering documents contain this and other information. Fees and expenses vary among Funds and share classes. Portfolio characteristics for the Fund may vary from time to time from what is shown.
The Markit iBoxx Asian Local Bond Index tracks the total return performance of a bond portfolio consisting of local-currency denominated, high quality and liquid bonds in Asia ex-Japan. The Markit iBoxx Asian Local Bond Index includes bonds from the following countries: China (on- and offshore markets), Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand.
The J.P. Morgan Asia Credit Index (JACI) tracks the total return performance of the Asia fixed-rate dollar bond market. JACI is a market cap-weighted index comprising sovereign, quasi-sovereign and corporate bonds and is partitioned by country, sector and credit rating. JACI includes bonds from the following countries: China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea and Thailand.
The MSCI All Country Asia ex Japan Index is a free float–adjusted market capitalization–weighted index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI All Country Asia Pacific Index is a free float–adjusted market capitalization–weighted index of the stock markets of Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI China Index is a free float-adjusted market capitalization-weighted index of Chinese equities that includes H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges, Hong Kong-listed securities known as Red chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China) and foreign listings (e.g. ADRs).
The MSCI China All Shares Index captures large and mid-cap representation across China A shares, B shares, H shares, Red chips (issued by entities owned by national or local governments in China), P chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g. ADRs). The index aims to reflect the opportunity set of China share classes listed in Hong Kong,Shanghai, Shenzhen and outside of China.
The S&P Bombay Stock Exchange 100 (S&P BSE 100) Index is a free float–adjusted market capitalization–weighted index of 100 stocks listed on the Bombay Stock Exchange.
The MSCI Japan Index is a free float–adjusted market capitalization–weighted index of Japanese equities listed in Japan.
The MSCI All Country Asia ex Japan Small Cap Index is a free float–adjusted market capitalization–weighted small cap index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI China Small Cap Index is a free float-adjusted market capitalization-weighted small cap index of the Chinese equity securities markets, including H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges,Hong Kong-listed securities known as Red Chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g., ADRs).
The MSCI India Index is a free float-adjusted market capitalization-weighted index of Indian equities listed in India.
Indexes are for comparative purposes only and it is not possible to invest directly in an index.