Strategy. Under normal market conditions, the Fund invests at least 80% of its net assets in securities of "China companies. The Fund invests primarily in the equity securities of China companies, which are those: that are organized under the laws of, or with a principal office in, the Peoples Republic of China (China), Hong Kong or Taiwan; or. for which the principal trading market is in China, Hong Kong or Taiwan; or that derive at least 50% of their revenues from goods or services sold or produced, or have at least 50% of their assets, in China. The equity securities in which the Fund invests are primarily common stock. The Fund also invests in American, Global and European Depositary Receipts. China … Show more… Under normal market conditions, the Fund invests at least 80% of its net assets in securities of "China companies. The Fund invests primarily in the equity securities of China companies, which are those: that are organized under the laws of, or with a principal office in, the Peoples Republic of China (China), Hong Kong or Taiwan; or. for which the principal trading market is in China, Hong Kong or Taiwan; or that derive at least 50% of their revenues from goods or services sold or produced, or have at least 50% of their assets, in China. The equity securities in which the Fund invests are primarily common stock. The Fund also invests in American, Global and European Depositary Receipts. China companies may be any size across the entire market capitalization spectrum, including midsize companies and smaller, newly organized and relatively unseasoned issuers. Investments in Chinese companies may be made through a special structure known as a variable interest entity (VIE) that is designed to provide foreign investors with exposure to Chinese companies that operate in certain sectors in which China restricts or prohibits foreign investments. In addition to the Fund's main investments, the Fund may invest up to 20% of its net assets in securities that do not qualify as China company securities, but whose issuers, in the judgment of the investment manager, are expected to benefit from developments in the economy of China, Hong Kong or Taiwan. The Fund is a "non-diversified" fund, which means it generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. When choosing equity investments for the Fund, the investment manager applies a fundamental, research-driven, long-term approach, focusing on companies with sustainable earnings power that are trading at a discount to intrinsic worth. In assessing individual investment opportunities, the investment manager considers a variety of factors, including a companys profit and loss outlook, balance sheet strength, cash flow trends and asset value in relation to the current price of the companys securities. The investment manager also focuses on incorporating environmental, social and governance (ESG) factors throughout the investment process, including the Funds security-selection and portfolio construction process. The Fund focuses on companies with appropriate and/or good management of material ESG issues, and in analyzing ESG factors, the investment manager conducts a materiality-based ESG assessment through both in-depth research and engagement with companies as appropriate to assess how a company's practices are aimed at improving or maintaining the ESG footprint of its operating model. The following provides examples of ESG elements that can be taken into consideration when assessing a company: Environmental considerations, which can include issues such as resource efficiency, carbon emissions management, waste prevention and recycling and pollution prevention and control. Social considerations, which can include issues such as labor standards, fair wages, diversity and gender balance, health and safety practices and product safety. Governance considerations, which can include issues such as appropriate accounting practices, alignment of interests, board effectiveness, capital allocation, shareholder rights and quality of disclosures. In addition, the investment manager assesses the potential for improvement through the Funds engagement as an active owner. These are targeted engagements with specific goals and objectives based on scope for improvement. The investment manager seeks companies that are good or improving stewards aligned with shareholder interest and the investment managers governance assessment includes regular dialogue with companies, monitoring material ESG issues and voting proxies. The Fund also applies specific ESG exclusions, including companies which, according to the investment managers analysis: repeatedly and/or seriously violate the United Nations Global Compact Principles; manufacture nuclear or controversial weapons defined as anti-personnel mines, biological & chemical weaponry, depleted uranium and cluster munitions or those that manufacture components intended for use in such weapons (companies that derive more than 5% revenue from any other weapons are also be excluded); derive more than 25% of their revenue from thermal coal extraction; or manufacture tobacco or tobacco products. The investment manager may consider selling an equity security when it believes the security has become overvalued due to either its price appreciation or changes in the companys fundamentals, when there is significant deterioration of its ESG factors, or when the investment manager believes another security is a more attractive investment opportunity. Show less