Maybank Asset Management Launches First-Of-Its-Kind China Equity Fund which Focuses Beyond the 100 Largest Chinese Stocks
(From L-R: Ahmad Najib Nazlan, Chief Executive Officer of Maybank Asset Management Group and Elsie Chan, Head of Distribution for Asia ex-Japan at T. Rowe Price)
KUALA LUMPUR, 5 January 2022 – Maybank Asset Management Malaysia today announced a partnership with global investment firm T. Rowe Price to offer T. Rowe Price’s premier China-focused equity strategy to Malaysian investors via the MAMG China Evolution Equity Fund (“the Fund”).
The Fund leverages T. Rowe Price’s dedicated China equity investment strategy, the T. Rowe Price China Evolution Equity Strategy (“the Strategy”), which looks beyond the Chinese mega-caps to seek to identify the future winners on the right side of China’s secular change and undiscovered leaders. China’s 100 largest companies make up only 2% of the Chinese equities universe. The Fund will focus on the under-explored 98% of the opportunity set, which comprises over 5,500 companies to identify the future winners on the right side of China’s new phase of economic growth which focuses on quality and innovation.1 It favors companies that the portfolio manager believes are best positioned to capitalize on the dynamic change and growth in China including companies moving up the value chain through innovation, niche players within industries, companies poised to benefit from disruption, as well as companies in the energy transition, smart vehicles and high performance computing space. It is benchmarked against the MSCI China All Shares Index Net.2
The Strategy is managed by Wenli Zheng, Hong Kong-based portfolio manager who has over 13 years of investment experience at the global asset manager. With deep experience in Chinese market research and multi-industry know-how, his investment approach combines contrarian ideas with style-agnostic active stock picking that seeks to generate an excess return for investors in the long-term by investing into China, the second largest economy in the world. The Fund is differentiated by its focus to go beyond the mega-caps to seek to identify the rising stars and future compounders.
Ahmad Najib Nazlan, Chief Executive Officer of Maybank Asset Management Group, said, “With MAMG China Evolution Equity Fund, we are thrilled to present yet another innovative product for Malaysian investors to kick-off 2022.
We are the first asset management company in Malaysia to offer this first-of-its-kind fund where we seek to uncover the hidden gems of China’s economic transformation. By extending our reach beyond the top 100 stocks into a universe of over 5,500 untapped stocks, this unique pivot provides us with an unconstrained All-China investment approach to pick the best and most valuable upcoming companies; coupled with our ESG fundamentals to ensure business sustainability.
Together with T. Rowe Price’s extensive knowledge and experience of the China market, we are confident our partnership will reap positive benefits for our investors.”
Elsie Chan, Head of Distribution for Asia ex-Japan at T. Rowe Price, said, “China is a deep market with over 5,500 onshore and offshore-listed companies, offering a huge opportunity set to investors. It remains a fertile hunting ground for investors seeking sustainable businesses and potential excess return opportunity through bottom-up fundamental research. We are pleased to partner with Maybank Asset Management to offer this unique investment strategy for investors in Malaysia to complement their investment portfolios and pursue the attractive but overlooked opportunities amidst China’s economy upgrade.”
T. Rowe Price has a decades-long history of investing in China through its global strategies, including those focused on emerging markets and Asia. Since establishing a presence in Asia in 1987, it has been committed to helping local investors create resilient investment portfolios that meet their needs through a wide-array of high-quality investment solutions offerings across equity, fixed-income and multi-asset.
To know more about the Fund, investors can visit maybank-am.com.my. Investors may subscribe to this Fund through Maybank Asset Management’s authorised distributors nationwide.
 The opportunity set is defined as all Chinese companies listed onshore and offshore in the China Universe. The 100 largest companies (with a market cap above roughly USD30 billion) represent around 2% of this opportunity set. This 2% takes up roughly 70% of the MSCI China Index so investors could be heavily exposed to the 100 largest companies, implying underexposure to the remaining 98% of Chinese companies.
 The Benchmark is used for performance comparison.
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