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Categories
| Pacific Mutual launches China-focused fund |
| Personal Finance | |||
| Written by Celine Tan | |||
| Tuesday, 19 May 2009 18:14 | |||
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Of late, China has been a favourite of fund managers when investing for investors who can look beyond the current economic and corporate uncertainties to the prospects of an earnings recovery in 2010/11. “Currently, the third-largest economy after the US and Japan, China is likely to remain among the fastest-growing major economies of the world for the foreseeable future. It sits on the largest foreign exchange reserves of US$1.95 trillion [as at end-December 2008], is politically stable and has demonstrated astute macroeconomic management skills,” says Daniel Chan, chairman of Pacific Mutual Bhd and CEO and chief investment officer of Lion Global Investors Ltd, an asset management company in Singapore. Pacific Mutual has teamed up with Lion Global Investors to launch an aggressive growth fund, Pacific Focus China Fund. The fund aims to achieve capital growth in the medium to long term by investing predominantly in equities and equity-related securities of companies listed in the greater-China region, which covers China, Hong Kong and Taiwan, and may invest in companies listed in other markets that have significant or potentially significant business in the greater-China region. The new fund provides an opportunity for the public to participate in the robust Chinese economy. “Investors will gain access to China’s long-term industrial capacity and capability as the manufacturing hub of the world, unrivalled commercial and infrastructure growth potential, exploding domestic consumption from a growing middle class, backstopped by robust country financials inclusive of the world’s largest foreign exchange and gold reserves, massive foreign direct investments, and a very high personal savings rate,” says Michael Auyeung, CEO and chief investment officer of Pacific Mutual. In a statement, the two asset management companies say the fund has the luxury of picking companies that have survived the crisis so far and will continue to survive and even prosper, going forward. “Besides that, it has the mandate of investing in companies that currently derive or are projected in the next two to five years to derive at least 30% of their earnings from the greater-China region. Also included are companies that currently have or are projected to have at least 30% of their assets in the region.” The benchmark for Pacific Focus China Fund is the MSCI Golden Dragon, an aggregate of the MSCI Hong Kong Index, the MSCI China Free Index and the MSCI Taiwan@65% Index (the MSCI Taiwan index has an inclusion weight at 65% of its market capitalisation in the MSCI index series). Investments start from RM100. The sales charge is 5.5% of the funds net asset value per unit.
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