Martin Currie is launching a China Fund on 10 March 2010 under the stewardship of James Chong who has 15 years' experience in the Chinese market.
The firm has had presence in China for 16 years, and indeed was the first foreign investor in the country when the market opened some years ago. China forms an important part of the Martin Currie business as it has a significant amount (25%) of its total assets invested in the region. It therefore has a dedicated team of analysts based in Shanghai and the fund will also draw on the resources of the Asian team based in Edinburgh.
By some forecasts, China is on track to become the largest economy in the world. Investors in the country are looking to benefit from high economic growth rates in the coming years. While growth has been strong for some time, the Chinese stock market has not grown as quickly according to Martin Currie. They believe that as companies improve their earnings and profits accelerate on the back of rising domestic consumption, this in turn should have a positive impact on the Chinese stock market. Potential investors should remember that this is a specialised fund investing in just one country and it is therefore higher risk. We suggest reading the simplified prospectus, and especially the risks section, before making an investment.
Martin Currie's investment strategy is based on 'change', which it believes is an important driver of returns. This could be change at the individual company level, for example a change in management or strategy which could improve profits, or change at the economic level, for example a change in government policy.
At launch, the fund is expected to have a bias towards the technology sector, which James Chong believes is benefiting from greater market share and improvements in quality. He also expects to invest heavily in consumer areas, which could benefit from government stimulus measures. Conversely, he holds a negative view of Chinese banks as he believes they are likely to suffer negative effects as a result of loose lending practices. He is also wary of the telecommunications sector, which he believes is likely to see a decline in profits.
James Chong has set the bar high in terms of the quality and growth prospects of the companies he expects to include in the portfolio. However, this will be a high octane portfolio of around 40 to 60 companies, and this concentration increases risk.
While Martin Currie has had presence in China for some years, this is the first pure China fund they have offered to UK private investors. Competition in this area is growing and we would like to see how this performs relative to its peers before considering it for inclusion on our Wealth 150 list of favourite funds in each sector.
Key features of the Martin Currie China Fund
Martin Currie China Fund Prospectus
The firm has had presence in China for 16 years, and indeed was the first foreign investor in the country when the market opened some years ago. China forms an important part of the Martin Currie business as it has a significant amount (25%) of its total assets invested in the region. It therefore has a dedicated team of analysts based in Shanghai and the fund will also draw on the resources of the Asian team based in Edinburgh.
By some forecasts, China is on track to become the largest economy in the world. Investors in the country are looking to benefit from high economic growth rates in the coming years. While growth has been strong for some time, the Chinese stock market has not grown as quickly according to Martin Currie. They believe that as companies improve their earnings and profits accelerate on the back of rising domestic consumption, this in turn should have a positive impact on the Chinese stock market. Potential investors should remember that this is a specialised fund investing in just one country and it is therefore higher risk. We suggest reading the simplified prospectus, and especially the risks section, before making an investment.
Martin Currie's investment strategy is based on 'change', which it believes is an important driver of returns. This could be change at the individual company level, for example a change in management or strategy which could improve profits, or change at the economic level, for example a change in government policy.
At launch, the fund is expected to have a bias towards the technology sector, which James Chong believes is benefiting from greater market share and improvements in quality. He also expects to invest heavily in consumer areas, which could benefit from government stimulus measures. Conversely, he holds a negative view of Chinese banks as he believes they are likely to suffer negative effects as a result of loose lending practices. He is also wary of the telecommunications sector, which he believes is likely to see a decline in profits.
James Chong has set the bar high in terms of the quality and growth prospects of the companies he expects to include in the portfolio. However, this will be a high octane portfolio of around 40 to 60 companies, and this concentration increases risk.
While Martin Currie has had presence in China for some years, this is the first pure China fund they have offered to UK private investors. Competition in this area is growing and we would like to see how this performs relative to its peers before considering it for inclusion on our Wealth 150 list of favourite funds in each sector.
Key features of the Martin Currie China Fund
Martin Currie China Fund Prospectus
