Jupiter China fund manager Philip Ehrmann believes the key to successful capital growth for the fund will come through China successfully developing domestic demand.
Jupiter will launch the China fund on October 20 and Ehrmann believes huge opportunities exist for investors in the country as the economy broadens out and becomes less reliant on exports and domestic demand strenghtens.
Ehrmann joined Jupiter from Gartmore prior to the latter’s management buy out which completed last week.
He has over 16 years experience of managing emerging markets most recently as manager of the Gartmore China Opportunities and Asia Pacific funds.
Ehrmann will initially be supported by Simon Somerville and Ben Surtees on the new fund which will be unconstrained by benchmarks and contain between 40 to 50 stocks. The team may grow as assets under management increase.
The fund is expected to be initially overweight in consumer goods and underweight in the banking sector.
Ehrmann says: “China is forecast to sustain real economic growth of 8-10 per cent per annum for a number of years, but the balance of that growth should start to shift towards domestic consumption, both because of the emphasis placed on this by the government and as an increasingly urbanised workforce starts to acquire greater spending power.”