Aberdeen Asset Management is market testing a UK-based China unit trust with intermediaries. Gary Ma...
Aberdeen Asset Management is market testing a UK-based China unit trust with intermediaries.
Gary Marshall, sales and marketing director at Aberdeen, said the fund would be launched by the end of the year providing it attracts adequate interest.
The fund, to be called China Opportunities, would be based largely on Aberdeen's £20m Dublin-listed, dollar-denominated China Opportunities Fund.
That was launched in 1992 and is managed from Singapore by a team led by Yoon Chou Chong and Hugh Young.
Marshall said the fund has an excellent track record, being ranked second out of 29 funds over three years in the Offshore China sector and first out of 39 funds over one year, to 2 August.
Over one year the fund has risen 60% and over five years it is up 130%, in sterling terms.
He said the unit trust would have a heavy weighting in the Hong Kong-listed H-shares, which are favoured due to more stringent regulations in this market. It would also hold China-listed B shares.
Currently the fund is some 75.5% invested in the Hong Kong-listed shares and 9% in Chinese-listed companies. There is also exposure to Japan, at 5.5% and Singapore at 2.5%. The remainder of the fund is in cash. Aberdeen's intention to launch a China unit trust was first reported in Investment Week in July.
Marshall said: "The attraction of China is enormous due to the sheer size of the population. Another positive factor is the pending ascension into the World Trade Organisation, meaning that a lot of the companies will start to become more internationally competitive."
Top holdings in the offshore fund include Giordana International with a 7% portfolio exposure, Swire Pacific at 6.3%, HSBC Holdings at 6%, Dah Sing Financial at 5.5% and Jardine Strategic Holdings at 5.2%.
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