First State China Fund Secures Gold Rating

Impressive performance, an experienced management team and a lower-than average fund fee means analysts have confirmed First State Great China Growth's Gold Rating

Morningstar Manager Analysts 6 October, 2014 | 4:58PM
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First State Greater China Growth is one of our best ideas for Greater China equity exposure. 
Top-notch portfolio manager Martin Lau has led this strategy for more than a decade and brings 19 years of investment experience to the table. In addition to this fund, he manages a number of Greater China and Asia Pacific mandates where he has proved to be an expert investor in the region. He is supported by a sizable Asia Pacific ex-Japan equities team that contributes to an array of successful First State Stewart strategies and is one of the best resourced teams in the region, in our opinion. 

The team applies a tried-and-tested bottom-up stock selection process where it looks for companies with quality management, sustainable and predictable growth and attractive valuations. Lau invests with an absolute return mind-set and pays little heed to the benchmark when constructing his portfolio.

Therefore, sectors that are typically smaller in the benchmark may be more prominent in this fund, and vice versa. For example, the August 2014 portfolio had 10.47% of its assets in consumer staples compared with the MSCI Golden Dragon index’s 3.11%. 

Lau’s investment savvy and unfaltering application of the investment process has produced an unparalleled long-term track record. The fund’s five- and 10-year annualised returns ranked in the third and second percentiles among peers respectively as of 31 August 2014. Moreover, the focus on management integrity and sustainable growth has made this one of the most resilient funds in its category during market downturns. 

Further adding to its appeal, the fund has a TER of 1.83%, which is 23 basis points cheaper than the category median. All-in-all, this fund encompasses many traits that we value: a capable and long-tenured manager supported by a deep research team, a proven investment process, stellar long-term performance and competitive fees. We therefore maintain the fund’s well-deserved Gold Rating.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
FSSA Greater China Growth A GBP Acc12.03 GBP-0.70Rating

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Morningstar Manager Analysts

Morningstar Manager Analysts  research and rate hundreds of OEICs, unit trusts and investment trusts available for sale in the UK.