The fund seeks capital appreciation in the long term by investing in small-size companies located in China.

The investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.

According to the investment team, China includes its administrative and other districts, such as Hong Kong.

The investment team believes a company is considered to be located in a country or a region, if it is organized under the laws of that country or any country in that region, or it derives at least 50% of its revenues or profits from goods produced or sold, investments made, or services performed, or has at least 50% of its assets located, within that country or region.

Then the research team reviews a company’s balance sheet, employee strength, consistency of cash flow, management’s capability, adaptability and integrity, product lines, marketing strategies, corporate governance, and financial health.

Next, the team based on these factors looks for smaller companies demonstrating durable growth.

Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.

The fund may also invest in depositary receipts, including American, European and Global Depositary Receipts.