China A Share Fund
CAF CUSIP: 617468103
China A Share Fund
CAF CUSIP: 617468103

China A Share Fund

CAF CUSIP: 617468103
 
 
 
 
Investment Approach

We seek capital growth by investing in A-shares of Chinese companies listed on the Shanghai and Shenzhen Stock Exchanges. We believe the key to investing in the China 'A' universe is to combine top-down macroeconomic analysis with a bottom-up fundamental security analysis. As such, we utilize an integrated investment process that considers dynamics, valuation and sentiment from both top-down macroeconomic and bottom-up stock perspectives. We believe an integrated process offers the most effective approach given the return and risk potential of this asset class. Our experience has found that there are certain nuances to investing in China A Share and a single, rigid approach is not effective over time.

 
 
Pricing & Performance

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please select the "month" timeframe or call 1-800-548-7786. Investment returns and principal value will fluctuate and fund shares, when redeemed, may be worth more or less than their original cost. For additional important information, please click here.

As of 05/31/2019

As of 06/25/2019

As of 05/31/2019

As of 06/25/2019


    
Past performance is not indicative of future results.
 
 
Average Annual Total Returns (NAV) As of 05/31/2019 As of 03/31/2019
1 YR 3 YRS 5 YRS 10 YRS Since Inception
CAF (%) -15.42 9.87 16.64 9.45 14.18
MSCI China A Onshore Index (%) -11.03 -0.61 6.50 2.77 9.38
1 YR 3 YRS 5 YRS 10 YRS Since Inception
CAF (%) -3.87 13.73 19.74 12.00 15.51
MSCI China A Onshore Index (%) -9.23 0.95 8.44 4.75 10.31
2014 2015 2016 2017 2018
CAF (%) 46.96 16.30 -7.64 42.18 -16.93
MSCI China A Onshore Index (%) 46.53 7.08 -19.11 20.28 -32.99
 
Average Annual Total Returns
As of 05/31/2019
TIMEFRAME CAF USD (%) MSCI China A Onshore Index (%)
1 Yr -15.42 -11.03
3 Yrs 9.87 -0.61
5 Yrs 16.64 6.50
10 Yrs 9.45 2.77
Since Inception 14.18 9.38
As of 03/31/2019
TIMEFRAME CAF USD (%) MSCI China A Onshore Index (%)
1 Yr -3.87 -9.23
3 Yrs 13.73 0.95
5 Yrs 19.74 8.44
10 Yrs 12.00 4.75
Since Inception 15.51 10.31
TIMEFRAME CAF USD (%) MSCI China A Onshore Index (%)
2014 46.96 46.53
2015 16.30 7.08
2016 -7.64 -19.11
2017 42.18 20.28
2018 -16.93 -32.99
Past performance is not indicative of future results.
 
 
Distributions
 
Record Date Ex-Date Payable Date Net Investment Income ($ per share) Long-Term Capital Gains ($ per share) Short-Term Capital Gains ($ per share) Total Capital Gains ($ per share)
12/21/2018 12/20/2018 12/27/2018 0.063982 0.815200 0.000000 0.815200
10/19/2018 10/18/2018 11/15/2018 0.060686 0.467300 0.323000 0.790300
12/22/2017 12/21/2017 12/29/2017 0.000000 0.350400 0.832300 1.182700
06/30/2017 06/28/2017 07/14/2017 0.034016 0.000000 0.000000 0.000000
Record Date Ex-Date Payable Date Net Investment Income ($ per share) Long-Term Capital Gains ($ per share) Short-Term Capital Gains ($ per share) Total Capital Gains ($ per share)
12/21/2018 12/20/2018 12/27/2018 0.063982 0.815200 0.000000 0.815200
10/19/2018 10/18/2018 11/15/2018 0.060686 0.467300 0.323000 0.790300
12/22/2017 12/21/2017 12/29/2017 0.000000 0.350400 0.832300 1.182700
06/30/2017 06/28/2017 07/14/2017 0.034016 0.000000 0.000000 0.000000
 
 
Composition As of 05/31/2019
  Fund
Common Stocks 96.67
  Fund
Health Care 23.16
Financials 21.56
Industrials 15.62
Consumer Discretionary 10.64
Consumer Staples 6.25
Real Estate 6.02
Information Technology 4.56
Communication Services 3.58
Energy 3.25
Materials 2.03
  Fund
Chinese Yuan Renminbi 80.81
Hong Kong Dollar 14.89
US Dollar 0.97


Geography As of 05/31/2019
  Fund
China 96.36
Hong Kong 0.31


Holdings As of 05/31/2019
Fund
China Resources Sanjiu Medical 9.75
Bank of Communications Co. Ltd 6.02
China Pacific Insurance 5.38
Beijing Thunisoft Corp Ltd 4.28
Qingdao Haier Co. Ltd 4.27
China Merchants Shekou Industr 4.06
China Cyts Tours Holding Co. Lt 4.03
Shenzhen Airport Co. 3.92
Ind and Comm Bank of China 3.89
Shanghai Pharmaceuticals Holding 3.68
Total 49.28


 
 
Portfolio Managers
Gary Cheung
Managing Director
16 years industry experience
May Yu
Managing Director
20 years industry experience
 
 
 

Where the net expense ratio is lower than the gross expense ratio, certain fees have been waived and/or expenses reimbursed. These waivers and/or reimbursements will continue for at least one year from the date of the applicable fund’s current prospectus (unless otherwise noted in the applicable prospectus) or until such time as the fund's Board of Directors /Trustees acts to discontinue all or a portion of such waivers and/or reimbursements. Absent such waivers and/or reimbursements, returns would have been lower. Expenses are based on the fund's current annual report.

Growth of Investment illustration is based on an initial investment of $10,000 made since fund inception, assumes reinvestment of dividends and capital gains, but does not include sales charges and fees. Performance would have been lower if sales charges and fees had been included. Results are hypothetical.

Please keep in mind that high double-digit returns are highly unusual and cannot be sustained. Investors should also be aware that these returns were primarily achieved during favorable market conditions. 

The Net Asset Value (NAV) per share is determined by dividing the value of the fund's portfolio securities, cash and other assets, less all liabilities, by the total number of common shares outstanding. The common share market price is the price the market is willing to pay for shares of the fund at a given time. Total return assumes an investment at the beginning of the period, reinvestment of all distributions for the period in accordance with the fund's dividend reinvestment plan, and sale of all shares at the end of the period.

Subject to change daily. Fund information and Portfolio Composition are provided for informational purposes only, and should not be deemed as a recommendation to buy or sell any security or securities in the sectors and countries presented. Monthly Holdings are updated 15 calendar days after month-end.

The repurchase information only represents shares repurchased as part of a share repurchase program and does not account for any shares repurchased through a tender offer.

RISK CONSIDERATIONS
There is no assurance that a portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that the market values of securities owned by the portfolio will decline and that the value of portfolio shares may therefore be less than what you paid for them. Accordingly, you can lose money investing in this portfolio. Please be aware that this portfolio may be subject to certain additional risks. Small markets and low trading volume may lead to a lack of liquidity in the Asia-Pacific region. Share prices also tend to be volatile and there is a significant possibility of loss. Concentration in a single region may make the portfolio more volatile than one that invests globally. In general, equities securities’ values also fluctuate in response to activities specific to a company. Fixed-income securities are subject to credit and interest-rate risk. Credit risk refers to the ability of an issuer to make timely payments of interest and principal. Interest-rate risk refers to fluctuations in the value of a fixed-income security resulting from changes in the general level of interest rates. In a declining interest-rate environment, a fixed income portfolio may generate less income. In a rising interest-rate environment, fixed income security prices fall.  Investments in foreign markets entail special risks such as currency, political, economic, market and liquidity risks. The risks of investing in emerging market countries are greater than the risks generally associated with investments in foreign developed countries. Derivative instruments may disproportionately increase losses and have a significant impact on performance. They also may be subject to counterparty, liquidity, valuation, correlation and market risks. Illiquid securities may be more difficult to sell and value than public traded securities (liquidity risk).

The MSCI China A Onshore Index is a free float-adjusted market capitalization index that captures large and mid-cap representation across China securities listed on the Shanghai and Shenzhen exchanges.

Closed end funds, unlike open end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed end funds are sold in the open market through a stock exchange. NAV per share is determined by dividing the value of the trust's portfolio securities, cash and other assets, less all liabilities and preferred shares, by the total number of common shares outstanding. The common share market price is the price the market is willing to pay for shares of the trust at a given time.

Morgan Stanley Investment Management (MSIM) is the asset management division of Morgan Stanley.

Effective March 1, 2018, the MSCI China A Index was renamed the MSCI China A Onshore Index.

 
 

WAM is the weighted average maturity of the portfolio. The WAM calculation utilizes the interest-rate reset date, rather than a security's stated final maturity, for variable- and floating- rate securities. By looking to a portfolio's interest rate reset schedule in lieu of final maturity dates, the WAM measure effectively captures a fund's exposure to interest rate movements and the potential price impact resulting from interest rate movements.

 

WAL is the weighted average life of the portfolio. The WAL calculation utilizes a security's stated final maturity date or, when relevant, the date of the next demand feature when the fund may receive payment of principal and interest (such as a put feature). Accordingly, WAL reflects how a portfolio would react to deteriorating credit (widening spreads) or tightening liquidity conditions.

 

Tracking error and information ratio are calculated using the Portfolio's Blended Index (added October 2, 2013), as this is a better representation of the Portfolio's global multi-asset strategy. The investment team manages the Portfolio relative to this Blended Index.

 

Excess return versus Custom Benchmark is calculated using the Portfolio's Blended Index based on the period since it was added as a benchmark on October 2, 2013.

 

NTM = Next Twelve Months

 

LTM = Last Twelve Months

 

Because the Portfolio had not commenced operations as of the most recent fiscal year end, no portfolio turnover rate is available for the Portfolio.

 

The Reorganization occurred on January 6, 2015. The inception date reflects the inception date of the Private Fund.

 

Global equities is represented by the MSCI All Country World Index.

 

Net exposure % calculated as [(MV of long cash security and derivative positions)-(absolute value of MV in short derivative positions)]/(portfolio MV)

 

Gross exposure % calculated as [(MV of long cash security and derivative positions)+(absolute value of MV in short derivative positions)]/(portfolio MV).

 

Fixed income net and gross exposure is duration adjusted (U.S. Treasury 10-Year equivalents)

 

Security ratings disclosed above have been obtained from Standard & Poor's Ratings Group ("S&P"). S&P's credit ratings express its opinion about the ability and willingness of an issuer to meet its financial obligations in full and on time.'AAA' is the highest rating. Any rating below 'BBB-' rating is considered non-investment grade. Ratings are relative and subjective and are not absolute standards of quality. Ratings apply only to the underlying holdings of the portfolio and does not remove market risk. "NR" or "Not Rated" indicates that no rating has been requested, that there is insufficient information on which to base a rating, or that S&P does not rate a particular obligation as a matter of policy. Futures are not rated.

 

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