Preview
How were certain dedicated China funds able to earn double-digit annualized returns from 2021 through 2023 amid a tumultuous and generally poorly performing China equity market? Motivated to learn more about the drivers of excess returns in the China equity market, our research has culminated in a three-layer framework designed to help investors who have adopted, or are considering adopting, a dedicated China allocation. Investors transitioning to a total portfolio approach, even without a dedicated China strategy, may find the framework useful to bring transparency to a macro- or micro-based investment thesis on China exposures.
A framework to understand unique return drivers in the China equity market
Read the full paper
Read the full paper
Provide your information for instant access to our research papers.
Foundations of Dedicated China Allocations: Part 1
In the first of our "Foundations of Dedicated China Allocations" series, we discuss investment policy and asset allocation as investors think through setting up such a program.
Foundations of Dedicated China Allocations: Part 2
In the second installment of "Foundations of Dedicated China Allocations," we focus on configurating and implementing a dedicated China program.
Foundations of Dedicated China Allocations: Part 3
We present a framework to analyze market-capitalization-weighted indexes' role in setting equity-risk-premium and capital-market expectations. It breaks return drivers into dividend yield, sales-per-share growth, profit margin and valuation change.
The content of this page is for informational purposes only and is intended for institutional professionals with the analytical resources and tools necessary to interpret any performance information. Nothing herein is intended to recommend any product, tool or service. For all references to laws, rules or regulations, please note that the information is provided “as is” and does not constitute legal advice or any binding interpretation. Any approach to comply with regulatory or policy initiatives should be discussed with your own legal counsel and/or the relevant competent authority, as needed.