Year ahead 2021: seeking clarity amid macro uncertainty
As market volatility could persist in 2021, how can investors cut through the fog of uncertainty?
The global public health crisis has disrupted economic activity in China but the country’s various industries are gradually recovering with the support of fiscal and monetary policies. As China strives to overcome this challenging situation, renewed geopolitical risk has emerged as another hurdle ahead. With these two economic hurdles, which Chinese sectors could leverage on the growth opportunities accelerated by structural transformation? And which could likely ace the competitive landscape as the strong that could become stronger?
1. New growth opportunities
2. Seeking import substitution
1. A Chinese equity portfolio with long-term growth potential
The A-Share market’s diverse sector composition allows the Funds to capture long-term growth opportunities which can be found in sectors with diverse “New China” opportunities. Supported by our Greater China Team’s comprehensive research and local knowledge, our fund managers focus on identifying quality Chinese companies with long-term growth potential.
Compared with their respective benchmarks, our Funds have an overweight view on information technology and healthcare sectors, as of end-May 2020. Both sectors are also the top contributors to the Funds’ year-to-date performance2.
2. Bottom-up stock selection supported by macro insights
Leveraging our on-the-ground research which focuses on company fundamentals, our fund managers integrate bottom-up stock selection with top-down macro and policy views to identify high conviction stock ideas. The Funds adopt an all-cap, high conviction, growth-oriented approach, focusing on a concentrated pool of investment opportunities.
Greater China experts3
3. Access to A-Share investing with RMB/USD as base currencies
The JPMorgan China A-Share Opportunities Fund is denominated in renminbi (RMB) with two other share classes – one in Hong Kong dollar (HKD) and one in US dollar (USD) while the JPMorgan China Pioneer A-Share Fund is denominated in USD, offering different choices to investors with different needs.
As China recovers and continues to transform its economy, this has accelerated the development of structural growth trends such as domestic technology and healthcare innovation1. A focus on bottom-up fundamental research helps identify quality Chinese corporates which could capture long-term investment opportunities.