Looking back to the beginning of Q3 2014, investors had basked in an incredible run in the U.S. markets and were being rewarded locally due to triple-digit oil prices and substantial movement within the energy sector; but what did investors do with those earning? In July 2014, our research team released our Q3 Outlook Commentary and amongst the insights provided in this report was a piece dedicated to investing in China.
We were and continue to be overweight in Chinese equities since the Q3 Outlook Commentary. Through our disciplined investment process, we have found many compelling companies that, at the time, were undervalued. Since that time, the Chinese H-Shares listed in Hong Kong substantially outperformed the North American indices; and as a result, Canadian investors who focused their portfolios on sector and geographic diversification benefited immensely from the powerful performance of the Chinese equity market. Given our belief that some of the Chinese companies are still substantially undervalued – particularly the financial firms – we think there is still room for the share prices to increase before the market reflects fair valuation.
At CWB McLean & Partners we stand by our investment process as the foundation for stock selection, and we strongly believe that the disciplined application of this process allows us to achieve our stated objective: to minimize risk while achieving above average long-term results.
*Returns plus dividend re-invested into the market
Investors can gain access to our disciplined process and geographic diversification through our International Equity and Global Dividend Growth Strategies. Further information on these strategies can be found through our Quarterly Outlook commentaries or here on our website.