Mechelany Advisors'CHINA DEEP VALUE PORTFOLIO was launched on Jan 1, 2021 to capitalise on what Mechelany Advisors' sees as a MAJOR SECULAR ENTRY POINT in some of China's corporate giants. The portfolio is structured to generate 8 % gross dividend yield per annum and benefit from a unique potential for long term capital appreciation due to the exceptional value these stocks offer at the moment.
Six weeks into 2021, the MECHELANY ADVISORS CHINA DEEP VALUE PORTFOLIO is up +13.39 %, outperforming each and every Asian And Chinese equity indexes.
Some of our holdings have already risen by 20 % since we structured the portfolio on January 1st 2021, but as the charts below show, this is only the beginning of what we see as new secular bull market in these stocks, fuelled by a significant phenomenon of valuation expansion in the years to come.
Moreover, the companies are major beneficiaries of the Chinese economic momentum ahead and will see what is already attractive dividend levels increasing regularly over time.
A strong incentive to invest in this portfolio today, is also the assumption we make that the Biden administration will have no choice but to ease the investment sanctions put by Donald Trump on November 12th 2020 on some of them, as a normalisation of the US – China relationship is desired by both parties and that these sanctions don’t bring any value to the USA, while Chinese retaliations could be extremely damaging to US businesses operating in China.
We created with Exane a great instrument to invest in this portfolio with a 1 to 1 leverage, giving the benefit of almost 14 % dividend yields and 2x the potential capital gains of the portfolio.
to know more about the products , CLICK HERE or on the image below
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