 |
| Page 1 |
 |
| Page 2 |
 |
| Page 3 |
 |
| Page 4 |
 |
| Page 5 |
 |
| Page 6 |
 |
| Page 7 |
 |
| Page 8 |
 |
| Page 9 |
 |
| Page 10 |
 |
| Page 11 |
 |
| Page 12 |
 |
| Page 13 |
 |
| Page 14 |
 |
| Page 15 |
 |
| Page 16 |
 |
| Page 17 |
 |
| Page 18 |
 |
| Page 19 |
 |
| Page 20 |
|
|
|
CHALLENGER
CHINA SHARE FUND
|
This fund is aimed at investors looking for
higher returns and should be considered for the
higher risk element of your portfolio. |
|
|
This month we posed some questions to Richard Wong concerning the current investment opportunity in China and where he sees opportunities over the coming year |
Manager: Richard Wong
| |
“The equity market has benefited from infrastructure spending in the run up to the Olympic Games this year and tourism-related sectors will also benefit.” |
|
|
China has shown rapid double digit economic growth in recent times, can this be sustained?
“The economy is well supported by strong domestic consumption (retail sales up 18.8% year on year in November 2007) and investment (fixed asset investment up 26.8% year on year in November 2007). Therefore, we do not expect a marked slow down in growth.”
What would happen in the event of a US-led recession?
“A US recession may marginally lead China's export growth to slow, but the impact is unlikely to be severe. Over the past few years, China has increasingly broadened its export base and reduced its dependence on the US which only accounts for about 21% of China's total exports.”
China is obviously benefiting from being host to the 2008 Beijing Olympics. Will there be a lull afterwards?
“The equity market has benefited from infrastructure spending in the run up to the
How to Olympic Games this year and tourism-related sectors will also benefit. However, there will not be a sharp market decline after the games. China is a vast country with strong growth happening nationwide and not limited to Beijing. We do not expect an economic slowdown after the Olympics. If there is a market correction after the Olympics, we believe it would represent a good buying opportunity.” |
|
| Which sectors offer the best opportunities and
why? |
“Opportunities can be found amongst consumer related, travel, infrastructure, selected commodities such as coal, cement on the back of China's rising income and spending power and the rapid fixed asset investment (for example road, rail, power plant) to keep up with China's high GDP growth.” |
| Funds Focus investment offer |
| |
With corporate tax being cut from 33% down to 25%
in January 08, the Beijing Olympics and a growth in domestic income and consumption, we remain bullish in for China for the short term at least. Recent market volatility is likely to create mispricings in stocks that an actively managed fund like the Challenger China Share Fund is likely to benefit from.
As a local fund manager fund that’s part of the HSBC group, we feel that Halbis are in an excellent position to offer investors the best potential for returns in this sector.
Asian stock markets are high risk and volatile, so can rise and fall sharply in a short space of time. We’ve seen this in the last few months with China, so we suggest clients keep their overall exposure in emerging markets below 20%, however this could be an excellent entry point to benefit from Asia’s long term growth potential and the Challenger China Share Fund is an excellent fund choice.
|
|
|
|
 |
|
| FUNDS FOCUS Investment newsletter: Issue 1, January 2008 |
|
Order a ZERO entry fee PDS
To download or request a hard copy Product Disclosure Statement with no entry fee, please complete order form below. Portfolio Healthchecks and the Wealth Focus annual report can be faxed back on 1300 55 98 70 or posted to us for free at Wealth Focus, Reply Paid 760, Manly, NSW, 1655 |
|
| |
|
| What do we get paid |
Wealth Focus will rebate 100% of entry fee on managed fund investments as additional units. Wealth Focus may receive a trailing commission of up to 1.00% pa. depending on the manager we have a relationship with. This trailing commission is paid by the fund manager and is NOT an additional charge to the investor. |
|
|
|
|
 |
 |
This month’s issue examines the opportunities that exist as a result of the “new economy”, where they are and how you can minimise some of the resulting volatility. |
| |
Challenger China Share Fund
The Asian growth story and China’s emergence into the outside world remains as compelling as ever. Could now be an opportune time to invest?
p12 |
| |
Merrill Lynch International Gold Fund
Gold can be considered an effective diversifier. Gold often performs well when financial markets perform poorly as investment managers look around for ‘insurance’ against financial instability and poor equity performance.
p14 |
| |
Macquarie - Globalis
BRIC Fund
Emerging markets continue to be the
fastest growing economies. We
examine Macquarie’s joint venture
into the BRIC economies and how
you can take part in the fastest
growing economies in the world.
p16 |
| |
Launch offer – Free
Portfolio Healthcheck
Probably the worst thing you can do
is sit on an portfolio full of proverbial
“dogs” in the hope that they’ll
somehow get their act together and
produce you the great returns
overnight. We’re giving investors the
opportunity to get a free report
across all their managed fund
investments.
p19 |
| |
 |
 |
|
|
