abrdn China Next Generation Fund (ABCNEXT*)

Invest in the next generation of China future leaders

What is abrdn China Next Generation Fund (ABCNEXT)?

abrdn China Next Generation Fund will mainly invest in units of abrdn SICAV I – China Next Generation Fund (master fund), which is a mutual fund that is established in accordance with the regulations of UCITS under the relevant laws of Luxembourg that is an ordinary member of IOSCO. The fund will invest in USD currency and in the master fund on average at least 80% of the fund's NAV in the accounting year and net exposure related to foreign risks on average in the accounting year at least 80% of the Fund's NAV.

The fund aims to outperform the benchmark (active management).

The master fund’s objective is to achieve long-term total return and outperform its Benchmark. The Fund invests at least 70% of its assets in small and mid-capitalisation equities and equity-related securities of companies listed, incorporated or domiciled in China, or having significant operations and/ or exposure to China.

Small and mid-capitalisation companies are defined as any stock having a market capitalisation less than the 30th percentile stock of the overall China market.

The master fund may invest in Mainland China equity and equity-related securities (not including Hong Kong, Macau, and Taiwan) through the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programme or by any other available means, a 30% limit applies to QFII regime.

Changing World Order - อนาคตของจีนในระเบียบโลกใหม่

Key Benefits of ABCNEXT

ABCNEXT invests into the master fund that provides the key benefits as follows:
  • China mid-small cap opportunities: The master fund will seek Chinese small-medium companies with potential and opportunity to become future leaders
  • New economy: Moving forward with the new economy which is considered the backbone of China that drives employment and innovation
  • Experienced: A team of experts on the ground with over 30 years of experience in Asia, providing local insights of the Chinese market, and integrating ESG into the investment process.**
  • eXposure to unique access: Open doors for Thai investors to the Shanghai Star Market and Beijing Stock Exchange, where only Chinese and Qualified Foreign Institutional Investors (QFII) can access these two markets.
  • Thematic play: Investing in 4 key themes: Aspiration, Green, Tech and Health. Diversified approach covering the consumer sector, green-tech, automation and health care.***

The fund invests in 4 key investment themes

Growth potential

Aspiration

Rising affluence is leading to fast growth in premium consumption in areas including cosmetics, car dealerships and baijiu.

Big Picture

Between 2020-2030 the number of households in china with annual incomes >USD22K is expected to grow by 70%

Portfolio weight

38.0%

Green

Policy makers globally are committing to a greener and lower carbon world and China is in the driver’s seat.’Grid parity’ will be game changing. Our holdings include EV charging station makers.

Big Picture

China dominates the green tech ecosystem with over 90% of global solar production capacity and 75% of the lithium battery market

Portfolio weight

9.9%

Health

Rising disposable incomes are driving demand for healthcare products and services. We see big opportunities in high quality healthcare service providers focused in clinical research and quality control.

Big Picture

The median age is China is 38, and this is set to rise to 46 by 2050. The demographic problem and rising wealth means healthcare is set to benefit.

Portfolio weight

12.2%

Tech

China currently imports over USD300bn of semi-conductors each year. On-shoring of technology and import substitution are also strong trends in areas of automation and robotics. Technology and self-reliance is a key focus for China.

Big Picture

China Currently imports over USD300bn of semiconductors each year, hence the strong motivation to localise key technology

Portfolio weight

25.1%

Weightings are subject to change and provided for informational purposes only.
Forecasts are offered as opinion and are not reflective of potential performance.
Forecasts are not guaranteed and actual events or results may differ materially Investment themes are subject to change.
Source: abrdn, McKinsey, Bernstein, 31 December 2022

Available shareclasses and benefits

*ABCNEXT means ABCNEXT-M which consists of two share classes: ABCNEXT-A and ABCNEXT-SSF
**Source: abrdn, 31 December 2022
***Source: abrdn, 31 December 2022. Investment themes are subject to change.

Our distributors

Being investment professionals, we aim to have our funds objectively marketed by other service providers. Aberdeen Asset Management (Thailand) Limited's funds are available from a range of distributors including e-platforms, banks, insurance, financial advisers and brokerages. if you would like to invest or require financial advice please get in touch with one of these distributors.

Investment terms and conditions apply for each distributor.
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