Martin Currie has today launched its UK-domiciled China fund managed by James Chong.
The vehicle is similar to Chong's Sicav Greater China fund but will focus on China and Hong Kong, while exposure to the poorly-performing Taiwan market is optional.
The fund is a 40-60-stock, multi-cap portfolio of Martin Currie's best investment ideas across China and Hong Kong. It is benchmarked against the MSCI Zhong Hua index, and has an annual management charge of 1.5% and an initial charge of 5%.
Chong will be based at Martin Currie's Edinburgh headquarters but will utilise the firm's 13-strong team of Mandarin-speaking analysts based in Shanghai.
"Some commentators seem to think that China is in a bubble," Chong says. "I think they are wrong. I believe by investing in China today, investors can harness a hugely powerful shift in the global economy.
"I believe valuations for Chinese equities remain attractive. The H-Share index (comprising those companies incorporated in mainland China but listed in Hong Kong) trades on a prospective earnings multiple of 12x, while the domestic A-share markets are trading at 19x prospective earnings -compared with 40 times a few years ago.
"With corporation earnings set to be up by 25-30% in 2010 and up 25% in 2011, these valuations are undemanding."
Sales, marketing and client services managing director Andy Sowerby adds: "The UK-domiciled Martin Currie China fund is a natural extension of our experience and expertise in Chinese equities, and we believe China now needs to be considered as a stand-alone part of a growth-orientated clients' portfolio."
