View more on these topics

First State compelled by China


First State Greater China Growth Fund


Growth by investing in companies based in or which derive their income from the People&#39s Republic of China, Hong Kong and Taiwan
Minimum investment: Lump sum $1,500

Investment split: Hong Kong 45.1%, Taiwan 26.5%, other 28.2%, cash 0.2%

Place of registration:

Initial 5%,
annual 1.5%

Initial up to 5%%,
renewal 0.5%

Tel: 0800 917 1717

The First State Greater China growth fund invests a range of companies in the People&#39s Republic of China, Hong Kong, Taiwan
and Macau.

Capital Trust Financial Management partner Bruce MacFarlane believes this fund is good for accessing the compelling story of Chinese economic growth. He says: “The Greater China growth fund will provide investors with an opportunity to invest into what is currently considered to be the world&#39s most significantly developing economy. First State is looking to take advantage of the inefficiencies that exist in emerging markets through a disciplined investment strategy which focuses on a bottom-up stockpicking approach with a disregard for index tracking.”

In MacFarlane&#39s view the charges are in line with the market for this type of product and would be considered fair and reasonable. He thinks the main competition will come from investment funds such as the Fidelity China focus fund.

Identifying the potential drawbacks of the fund MacFarlane says: “I would, however, be wary of investing in China in the short term. China&#39s dependency on the US and the high price of oil and other commodities may have a negative short-term, impact on the economy.”

He concludes: “Funds that invest in developing markets such as China are high risk, high potential return products and should be considered as a complement to an already diversified investment portfolio.”


Suitability to market: Good
Investment strategy: Good
Charges: Average
Commission: Average

Overall 7/10


Confidence in BTL still high despite rate rises

Landlords still have confidence in the buy-to-let property market despite slowing house prices and an increase in the cost of borrowing, according to research by Mortgage Trust. The research, based on 350 replies from residential landlords, found that 90 per cent would not consider selling their investment property because of rising interest rates. Forty-nine per […]

Standard caps Sipp link charges at 1%

Charges on all discretionary investment management within the Standard Life Sipp will be capped at 1 per cent. The life office has signed up 11 business partners, including six discretionary investment management groups, an execution-only stockbroker and three property specialists to its Sipp offering. The six discretionary managers linked to Standard Life&#39s Sipp offering are […]

Select & Protect selected by Whitechurch

Slect& Protect has been appointed as one of the providers being used for home and mortgage payment protection insurance to The Whitechurch Network&#39s members. Select & Protect chief executive Simon Hood says: “Whitechurch has been successful in maintaining their approach to the choices the market offers by being flexible and offering compliance expertisek secong to […]

Dresdner launches hedge fund covered warrant

Dresdner Kleinwort Wasserstein has launched the UK&#39s first covered warrant linked to a hedge fund index.The investment bank is this week launching a three year tracker certificate linked to the returns of the HFRX Global Index. Dresdner launched into the covered warrants market back in February and offers covered warrants based on UK blue chips, […]

Neptune India: three stocks we’re buying & the one we’re not

By Kunal Desai, Head of Indian Equities The Neptune India Fund’s investment process serves as a key differentiating feature of the portfolio versus its peers, contributing to its significant outperformance under Manager Kunal Desai’s tenure. Focusing on industry disruption, accounting quality, liquidity and corporate governance, Kunal sets out three stocks that he’s buying in the […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment