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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


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