The fund has a fine pedigree (back to 1981) and continual outperformance of the benchmark index in recent years.  The managers accept that there has been some over-valuation, but as we write the fund is off 25% from its peak early in November, which hints at a buying opportunity into the Chinese growth story that appears to have decades to run. 

Chinese inflation is heading up, suggesting more action to curb demand (and therefore inflation) from Chinese authorities. On the other hand, recent sharp falls do appear to be discounting a lot of this, and there is now an oppprtunity to buy.  This is obviously a focussed fund, not inherently diversified, but then nor is a US fund, and they are both powerhouses in their own right. Exposure should not exceed 5% of your portfolio, and the risks are greater than with a global emerging markets fund. Consider monthly contributions. 

To achieve capital growth through a portfolio of investments with an exposure to the economies of Hong Kong and China. Exposure to China will be largely obtained through indirect investment in securities traded on other markets and can include other investments that they consider appropriate which may include units in collective investment schemes, warrants and other permitted in investments and transactions.

Samantha Ho & Paul Chan