Chinese automaker geely saw an 80% increase in sales in the first eight months of 2017

Between escalating tensions with North Korea and a U.S. Congress in gridlock, it can sometimes be challenging to stay positive. That’s why I’m pleased to share with you this good news: Our China Region Fund (USCOX) was up more than 45 percent for the 12-month period as of September 22, 2017, beating its benchmark, the Hang Seng Composite Index (HSCI), which gained 20.7 percent over the same period. This means USCOX outperformed the index by roughly 25 percent.

China Region Fund USCOX outperformed its benchmark by roughly 25% for 12-month period
click to enlarge

Put another way, USCOX has beaten the HSCI in eight of the past 11 months, or 73 percent of the time, with the greatest monthly spread between fund and index occurring in June.

china region fund uscox bet its benchmark 73% of past 11 months
click to enlarge

One of the main contributors to our outperformance is our overweight positions in information technology and consumer discretionary stocks, which made up a combined 61 percent of the fund as of September 22. As we see it, these sectors are where the growth is, driven by innovative tech firms, from Sunny Optical to Tencent, and automakers such as Geely Automative, Guangzhou Automotive and Great Wall Motor.