Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | 25.1% |
| 2025 | 2024 |
|---|---|
| 25.1% | -1.0% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | 25.1% |
| 2025 | 2024 |
|---|---|
| 25.1% | -1.0% |
The Guinness China A Share Fund outperformed its benchmark in November, falling 1.9% versus the MSCI China A Onshore Index decline of 3.1%. The fund focuses on high-quality companies exposed to structural growth themes in China's A-share market, built upon changes in incomes, demographics, production advances and technology application. China's economy has lost momentum with industrial production at 4.8% while retail sales only 1.3%, reflecting government support favoring industrial upgrades over consumer demand. The managers believe China is reaching a critical transition point where new pillar industries should offset real estate drag by end of next year, though further support is needed for the next 12 months. The fund maintains valuation discipline with only a 16% premium to the benchmark, the lowest in a decade. Rather than relying on macro forecasts, the strategy remains a concentrated, bottom-up portfolio of 30 highest-conviction ideas with durable competitive advantages, positioned to compound returns through uneven growth and policy uncertainty.
The fund invests in high-quality, profitable companies exposed to structural growth themes in China A-share market, focusing on durable competitive advantages and long-term growth potential rather than businesses dependent on short-term policy support.
The managers believe China is reaching a critical transition point where new pillar industries should offset real estate drag by end of next year, though the economy will likely need further support for the next 12 months. They remain focused on company fundamentals rather than macro forecasts, maintaining the fund as a concentrated, bottom-up portfolio of 30 highest-conviction ideas with durable competitive advantages. The combination of quality, development and valuation discipline positions the fund well to compound returns over time in an environment of uneven growth and policy uncertainty.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Dec 31 2025 | 2025 Q4 | 000002.SZ, 000858.SZ, 300014.SZ, 300760.SZ, 600276.SS, 600519.SS, 600887.SS | A-shares, China, consumer, Industrial, Quality, Structural Growth, technology, value | - | The fund focuses on high-quality companies exposed to structural growth themes in China A-share market built upon changes in incomes, demographics, production advances and technology… |
| Oct 30 2025 | 2025 Q3 | - | - | - | - |
| Jul 2 2025 | 2025 Q2 | - | - | - | - |
| Apr 1 2025 | 2025 Q1 | - | - | - | - |
| Jan 8 2025 | 2024 Q4 | - | - | - | - |
| Oct 1 2024 | 2024 Q3 | - | - | - | - |
| Jun 30 2024 | 2024 Q2 | - | - | - | - |
| Apr 2 2024 | 2024 Q1 | - | - | - | - |
| Jan 9 2024 | 2023 Q4 | - | - | - | - |
| Sep 30 2023 | 2023 Q3 | - | - | - | - |
| Jul 1 2023 | 2023 Q2 | - | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
ChinaChina's economic rebalancing appears to be moving forward. Market liquidity, anti-involution and a measured consumer policy are likely to drive a sustained market performance in 4Q. Fiscal support and ongoing reforms in China is supportive of a stronger currency. |
Growth Policy Currency |
QualityThe company emphasizes investing in businesses with excellent economics, durable competitive advantages, and high-integrity management. This quality focus is evident in concentrated equity holdings and operating business acquisitions. |
Durable Advantages Management Quality Economic Moats Competitive Position | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| 000002.SZ | In the Real Estate sector, China Vanke was downgraded by S&P Global, citing its weak liquidity position, which made its financial commitments unsustainable. The company also asked to delay a bond repayment, making it the first state-backed developer to do so. |
| 000858.SZ | In the Health Care sector, Wuxi Apptec, Shenzhen Mindray Bio-Medical and Jiangsu Hengrui Pharmaceutical were the biggest detractors. |
| 300014.SZ | In the Health Care sector, Wuxi Apptec, Shenzhen Mindray Bio-Medical and Jiangsu Hengrui Pharmaceutical were the biggest detractors. |
| 300760.SZ | Shenzhen Mindray Bio-Medical Electronics was listed as a top detractor to quarter-end fund performance. |
| 600276.SS | In the Health Care sector, Wuxi Apptec, Shenzhen Mindray Bio-Medical and Jiangsu Hengrui Pharmaceutical were the biggest detractors. |
| 600519.SS | In the Consumer Staples sector, Kweichou Moutai and Inner Mongolia Yili were the strongest contributors to returns. |
| 600887.SS | In the Consumer Staples sector, Kweichou Moutai and Inner Mongolia Yili were the strongest contributors to returns. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||