CSOP FountainCap China Selection Fund

The Fund is a long only equity fund that aims to achieve long-term capital appreciation for its investors, while emphasizing asset protection and preservation.

Investors should be aware that their capital is at risk and that there is no guarantee that the investment objective will be achieved over any time period.

To achieve the Investment Objective, the Fund will invest in stocks of companies that can benefit from China’s economic transformation and with sustainable growth potential or fundamental investment value demonstrating underlying intrinsic economic value distinct from market price, and hold these stocks for the long term

The core investment strategy is based on the Sub-Investment Manager’s thorough understanding of China’s economic cycles and the restructuring changes, and the ability to apply it in investing in equities of companies who have significant exposures to China’s transformation and growth that are listed on major stock exchanges in the Asia-Pacific region.

The Sub-Investment Manager’s key investment strategies are to:

• 1) identify industries or sectors that represent investment opportunities, specifically focusing on industries or sectors where China faces a shortage, scarcity, or has difficulties in developing (natural gas, clean water, safe foods and high-end IP products etc.) and avoiding those that China has in abundant supply (white goods and cheap labour products etc.) and
• 2) invest in those companies it believes will benefit from China’s restructuring program, gain substantial competitive advantages and/or even emerge as industry leaders and/or national champions. As these investment opportunities may or may not emerge directly from China, the Sub-Investment Manager will invest in the broader Asia-Pacific markets.