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First State Greater China Growth Inclusive - Class A - Accumulation (GBP)

Sell:898.08p Buy:898.08p Change: 4.97p (0.55%)
Prices as at 18 October 2019
Sell:898.08p
Buy:898.08p
Change: 4.97p (0.55%)
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
Prices as at 18 October 2019
Sell:898.08p
Buy:898.08p
Change: 4.97p (0.55%)
Prices as at 18 October 2019
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund does not feature on our Wealth 50 list of what we believe are the best funds in each sector. If a fund is not within our Wealth 50 this is not necessarily a recommendation to sell. However, if you are thinking of adding to your investments we believe Wealth 50 funds are superior alternatives. View funds on the Wealth 50 »

We believe First State is home to one of the best Asian and emerging markets investment teams. This fund offers exposure to the team's best ideas in China, Hong Kong and Taiwan. We favour their conservative approach to investing in what can be a volatile market and would expect them to deliver good returns for investors with a long investment horizon.

Our view on the sector

China has continued to grow its economy strongly but the rate of growth has slowed in recent years. The economy is going through a transition, shifting from a focus on low-value exports, high investment and infrastructure spending, to domestic consumption and services. Companies are also benefiting from looser regulation, anti-corruption policies, rising consumer spending and improved healthcare and technology. China's a higher-risk emerging market though. The transition from an export-driven to consumption-driven economy will not happen overnight. It could take years to come to fruition and there will be setbacks along the way.

Performance Analysis

The team at First State have delivered exceptional results over the long term and value has been added through both sector positioning and stock selection. They typically focus on companies with more defensive characteristics, meaning the fund has generally held up relatively well in a falling market while largely keeping pace with rising markets.

Investment Philosophy

The team at First State seek quality companies they can purchase at sensible valuations. They favour well-managed companies with sound balance sheets, barriers to entry from competition, and a record of generating sustainable returns throughout a variety of market conditions.

Process and Portfolio Construction

This fund invests in Chinese, Hong Kong and Taiwanese companies. The team's investment universe covers more than 5,000 stocks, although this is reduced to around 300 companies when the team's quality constraints are considered. This is reduced further once company reputation and financials are taken into account. Around 40-70 stocks make it into the final portfolio. This allows each holding to have a significant impact on performance although it increases risk.

The fund will invest in higher-risk small and medium-sized companies in addition to larger firms. It is also likely to have a bias to consumer sectors. By contrast it has tended to have relatively little exposure to economically-sensitive sectors such as banks and basic materials.

question mark Manager Track Record Based on HL Quantitative Research

  • First State Greater China Growth...
  • FTSE Greater China All Cap Index
FROM: TO:


Fund Track Record

18/10/14 to 18/10/15 18/10/15 to 18/10/16 18/10/16 to 18/10/17 18/10/17 to 18/10/18 18/10/18 to 18/10/19
Annual return 5.39% 34.80% 18.50% -9.50% 23.00%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

First State Investments originates from Australia and is part of the Commonwealth Bank of Australia. First State offers a range of funds across areas including Asia, emerging markets, global resources, global equities, property securities and infrastructure. As fund managers, their expertise has been noted in specialist areas like Asia and emerging markets where First State has recruited some of the industry's most talented investment professionals.

Information about the fund

Fund manager biography

manager photo
Manager Name: Martin Lau
Manager start date: 1 December 2003
Manager located in: Hong Kong

Martin Lau was appointed Director, Greater China Equities in October 2003 following the merger of the Edinburgh-based Asia Pacific team with the Hong Kong and Singapore Asian teams in September 2003. Martin joined First State Investments in April 2002 as Senior Portfolio Manager, responsible for the management of First State's Greater China and regional funds. Martin started his investment career in 1995 with BZW in London as part of their risk management team. He subsequently spent six years with Invesco as a fund manager responsible for the Greater China funds, Smaller Companies fund and regional portfolios. Martin graduated from Cambridge University with a Bachelor of Arts degree and a Masters degree in Engineering. He is also a CFA charterholder.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account