CS Emerging Consumer Growth Fund (160127)

Overview

The China Southern Consumption Growth Equity Fund is a forward-looking investment product operational since March 13, 2012. Managed by China Southern Asset Management Co., Ltd., it represents an open-ended equity mutual fund with a distinct focus on the public equity markets of China, particularly zooming in on the consumption sector. This strategic emphasis is reflective of the burgeoning consumer market within the country, offering potential growth trajectories fueled by the evolving purchasing behaviors and increasing disposable incomes of Chinese households. Typically, the fund zeroes in on stocks of companies that are entrenched within various consumption-driven industries, ranging from retail to consumer services. It benchmarks its performance against a composite index composed of 80% CSI China Mainland Consumer Index and 20% SSE T-bond Index, which serves as a hybrid yardstick combining equity performance with the stability of treasury bonds. Domiciled in China, this fund embodies a tailored investment vehicle aiming at tapping into consumption-led growth narratives within the world's second-largest economy.

Products and Services

China Southern Consumption Growth Equity Fund, entrenched within the suite of offerings by China Southern Asset Management Co., Ltd., provides a targeted investment strategy focused on the dynamic consumption sector of China.

• EQUITY INVESTMENTS IN THE CONSUMPTION SECTOR: The core of the fund's portfolio concentrates on equity investments within the Chinese consumption sector. This entails allocating capital to companies that operate within industries directly influencing consumer behavior and spending, including but not limited to retail, consumer durables, and services. The objective is to leverage the consumption growth wave propelled by an expanding middle class and evolving consumer preferences in China.
• BENCHMARKED PERFORMANCE TRACKING: To ensure a clear gauge on its performance and strategic position, the fund tracks its growth against a meticulously selected composite index. This benchmark is composed of 80% CSI China Mainland Consumer Index, reflecting the equity market performance within the consumption sector, and 20% SSE T-bond Index, which introduces a degree of fixed income stability into the evaluation metric. This dual-index benchmarking strategy facilitates a balanced assessment of both growth potential and risk mitigation.