BenchmarkA
80 % MSCI Golden Dragon Index (Net) 20 % CSI 300 Index (Net)
Investment objective
Long term capital appreciation through investments primarily in equity securities of companies with substantial assets in, or revenues derived from, the People's Republic of China, Hong Kong, Taiwan and Macau.
Fund statistics
Fund manager		Emerson Yip
Listed		New York Stock Exchange
Net Assets (as at 30/04/15)		USD 153.07m
Launch date		16th July 1992
Dividends (Ex-dividend date)		USD 0.1270 (10 December 2014)
Actual LeverageB		9.1%

Market capitalization breakdown

(as at 30/04/15)

A	On 01/03/01 the benchmark of the Fund was changed from 25% TWII, 20% BNPPCI, 50% MSCI HK, 5% HSBC to MSCI Golden Dragon Index (Total). On 13/04/12 the benchmark was changed to 80% MSCI Golden Dragon Index, 20% CSI 300 Index. On 01/10/13 the Fund’s benchmark was changed to a net, rather than gross, basis. Formerly JF China Region Fund, Inc., the Fund name was changed on 06/12/13
B	Actual leverage represents the excess amount above shareholders’ funds of total assets less cash/cash equivalents, expressed as a percentage of shareholders’ funds. If the amount calculated is negative, this represents a net cash position.

 

Performance Data

(as at 30/04/15)

Cumulative  performance				(as at 30/04/15)
%	1 mth	3 mths	2015 YTD	1 year	3 year	5 year	10 years
Share price	13.0	20.6	20.7	46.9	62.7	61.0	232.1
Net asset value	14.0	21.7	22.4	50.8	65.7	63.5	197.5
BenchmarkA	12.7	20.3	22.0	48.9	59.2	67.7	198.1

Rolling 12 month performance			(as at 30/04/15)
%	2015/2014	2014/2013	2013/2012	2012/2011	2011/2010
Share price	46.9	-3.1	14.3	-18.6	21.6
Net asset value	50.8	-1.4	11.4	-18.3	20.7
BenchmarkA	48.9	-0.2	7.2	-11.1	18.5

 

Past performance is no guarantee of future results. Investment returns and principal value will fluctuate and shares, when sold, may be worth more or less than original cost. Current performance may be lower or higher than the performance data quoted. All return data includes investment management fees, administrative and custodial charges, bank loan expenses and assumes the reinvestment of all distributions. Returns for periods less than one year are not annualized.

 

Top 10 Holdings		(as at 30/04/15)
Holding	Fund %	BenchmarkA weight
Tencent Holdings	5.0	4.2
Taiwan Semiconductor Manufacturing	4.8	4.7
Ping An Insurance*	4.0	2.3
China Construction Bank*	3.6	2.9
AIA Group	3.3	3.2
CK Hutchison Holdings	2.8	1.2
Agricultural Bank of China*	2.5	0.7
China Pacific Insurance*	2.2	0.8
China Merchants Bank*	2.0	1.1
China Petroleum & Chemical	1.9	1.0
Sub-Total	32.1	22.1

*Denotes China A-share holding

Sector

(as at 30/04/15)

Fund Information
Share price		USD 20.41
NAV per share		USD 23.74
Discount (-) / Premium Current		-14.0%
Shares in issue		6,447,637
Fund code
Bloomberg		JFC US
ISIN		US46614T1079
Sedol		2471392

 

Portfolio

(as at 30/04/15)

Portfolio review

(as at 30/04/15)

Greater China equities surged, led by the MSCI China Index, as the Chinese government not only revised rules to ease domestic mutual funds’ ability to invest in Hong Kong-listed equities but also signaled comfort with the rally in mainland stock markets. China also cut the required reserve ratio for banks while announcing more fiscal stimulus measures benefiting domestic companies operating both in China and overseas (the “one belt, one road” initiative). The MSCI Hong Kong Index followed China’s performance, although continued negative comments and policies on mainland tourist visitations caused Macau and Hong Kong retail stocks to resume their underperformance. The MSCI Taiwan Index rose only slightly, as lacklustre demand for technology exports offset the positive sentiment from mainland officials signalling a study of a so-called Taipei-Shanghai Stock Connect program.

Market Outlook

(as at 30/04/15)

We expect China to continue easing policy as the domestic economy falters. Stock markets had previously factored in the latter (economic weakness) but not the former (policy response). New to this calculus is that the government appears to be utilizing rising equity markets as a way for corporates to de-leverage given difficulties in generating growth. Given the policy-sensitive nature of the market, we expect that this impetus means that the rally will continue until new equity supply eventually overwhelms demand.

Further information

Investment Adviser	JF International Management Inc.
Website:	www.jpmchinaregionfund.com
Administration:	Lucy Dina +44 (0)20 7742 3735
US Representative:	Khimmara Greer +1 (617) 624 6329

Source: J.P. Morgan, Reuters, Bloomberg

Benchmark Source: MSCI. The MSCI data is comprised of a custom index calculated by MSCI for, and as requested by, JPMAM (UK). The MSCI data is for internal use only and may not be redistributed or used in connection with creating or offering any securities, financial products or indices. Neither MSCI nor any other third party involved in or related to compiling, computing or creating the MSCI data (the “MSCI Parties”) makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and the MSCI Parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to such data. Without limiting any of the foregoing, in no event shall any of the MSCI Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

All equity indices stated as ‘Net’ are calculated net of tax as per the standard published approach by the index vendor unless stated otherwise.

This material should not be relied on as including sufficient information to support an investment decision. US recipients of this information that wish to receive further information or effect transactions in the Fund’s shares should contact JPM New York and not other brokers who may be listed in this report.

This document contains information concerning the performance of JF Investment Companies. It does not constitute or contain, and may not be used for the purposes of or in connection with, any offer or invitation or solicitation by or on behalf of any of the investment companies described herein to subscribe for or to purchase securities by anyone in any jurisdiction in which such offer, invitation or solicitation is not authorised, or to any person to whom it is unlawful to make such offer, invitation or solicitation. There is no assurance that the Fund will achieve its investment objective. You should remember that past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and you may not get back the full amount invested. All performance assumes reinvestment of all dividends and capital gain distributions. Total return based on share price reflects changes in market value. Total return based on net asset value reflects changes in the Fund’s net asset value during each period. Shares of the Fund may trade above or below its net asset value. Current performance may be lower or higher than the performance data quoted. When a subscription involves a foreign exchange transaction, it may be subject to the fluctuations of currency values. Exchange rates may also cause the value of underlying overseas investments to go up or down. Investments in emerging markets may involve a higher element of risk due political and economic instability and underdeveloped markets and systems. Investments in smaller companies may involve a higher degree of risk as markets are usually more sensitive to price movements. Concentrating investments in the greater China region subjects the Fund to more volatility and greater risk of loss than geographically diverse funds. The views expressed herein are not to be taken as advice or a recommendation to buy or sell any investment.