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Liontrust China Fund

Q3 2023 review

Past performance does not predict future returns. You may get back less than you originally invested. Reference to specific securities is not intended as a recommendation to purchase or sell any investment.

The Liontrust China Fund -0.8% over the quarter, versus the IA China/Greater China sector average of 0.1% and 2.1% from the MSCI China Index (both comparator benchmarks)*^.

 

Chinese equities began the quarter positively supported by rising optimism for policy stimulus following the July politburo meeting, with stimulus directed towards consumption and housing. However, this enthusiasm petered out later in the quarter as a resilient US economy and surging yields reignited fears that much tighter monetary policy would eventually lead to economic weakness and recession next year.

 

Weaker equities came despite some positive surprises in Chinese economic data and further announcements of nationwide stimulus for the first time since 2015. US - China dialogue increased meaningfully and Biden and Xi look set to meet at the Asia-Pacific Economic Cooperation meeting in November. The MSCI China Index managed to end the quarter with a modest positive return of +2.1%, just ahead of both emerging and developed markets.

 

The Liontrust China Fund returned -0.75% during the third quarter. The dispersion in sector returns was again high, with the energy and consumer discretionary sectors generating positive returns of +8-12% while industrials, technology and utilities fell by 5-8%. Key positive contributions came from online games developer Netease, mining group CMOC and pharma company Wuxi Biologics. These were offset by weakness in some energy transition stocks including wind turbine manufacturing and lithium mining.

 

Discrete years' performance (%)**, to previous quarter-end:

 

 

Sep-23

Sep-22

Sep-21

Sep-20

Sep-19

Liontrust China C Acc GBP

-9.2%

-24.1%

-3.4%

22.6%

0.2%

MSCI China

-3.7%

-22.0%

-11.2%

27.3%

1.7%

IA China/Greater China

-11.4%

-19.7%

1.6%

26.8%

4.8%

Quartile

2

4

3

3

4

 

*Source: FE Analytics as at 30.09.23

 

**Source: FE Analytics as at 30.09.23. Quartiles generated on 09.10.23.

Understand common financial words and terms See our glossary
KEY RISKS

Past performance is not a guide to future performance. The value of an investment and the income generated from it can fall as well as rise and is not guaranteed. You may get back less than you originally invested.

The issue of units/shares in Liontrust Funds may be subject to an initial charge, which will have an impact on the realisable value of the investment, particularly in the short term. Investments should always be considered as long term.

Investment in the Fund involves foreign currencies and may be subject to fluctuations in value due to movements in exchange rates. The Fund may invest in emerging markets/soft currencies or in financial derivative instruments, both of which may have the effect of increasing volatility.

DISCLAIMER

This is a marketing communication. Before making an investment, you should read the relevant Prospectus and the Key Investor Information Document (KIID), which provide full product details including investment charges and risks. These documents can be obtained, free of charge, from www.liontrust.co.uk or direct from Liontrust. Always research your own investments. If you are not a professional investor please consult a regulated financial adviser regarding the suitability of such an investment for you and your personal circumstances.

This should not be construed as advice for investment in any product or security mentioned, an offer to buy or sell units/shares of Funds mentioned, or a solicitation to purchase securities in any company or investment product. Examples of stocks are provided for general information only to demonstrate our investment philosophy. The investment being promoted is for units in a fund, not directly in the underlying assets. It contains information and analysis that is believed to be accurate at the time of publication, but is subject to change without notice. Whilst care has been taken in compiling the content of this document, no representation or warranty, express or implied, is made by Liontrust as to its accuracy or completeness, including for external sources (which may have been used) which have not been verified. It should not be copied, forwarded, reproduced, divulged or otherwise distributed in any form whether by way of fax, email, oral or otherwise, in whole or in part without the express and prior written consent of Liontrust.

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