Barings set to go Chinese with new funds

Baring Asset Management is to launch two new funds - Baring China Growth Fund and Baring China Select Fund - subject to regulatory approval.

Both funds are designed to achieve long term capital growth by investing in companies deemed likely to benefit from the economic growth and development of China.

The Baring China Growth Fund will be established as a UK domiciled Investment Company with Variable Capital (ICVC). The Baring China Select Fund, on the other hand, will be an Irish domiciled Open Ended Investment Company (OEIC). Both will be run on the same basis, as actively managed 'best ideas' funds able to invest in companies across the full market capitalisation spectrum.

William Fong and Agnes Deng will manage both funds - Fong and Deng members of Barings' Hong Kong-based Asia Pacific Equity team.

Fong argues that despite the recent market turmoil, China and its related markets will continue to be strong drivers of global growth and prove highly resilient economies.

He adds that whilst the majority of the investment opportunities will be in Hong Kong and China, it will be possible to find companies with the potential to benefit from the development of China in countries such as Taiwan and Singapore, where companies have extensive trade links with China. The funds are expected to launch by May.

Minimum investment will be £2000 (Baring China Growth Fund), $5,000 or 5,000 euros (Baring China Select Fund).

Charges will be 5% initial, 1.5% annual. In addition Baring China Growth will be Isable.

15 February 2008 © Moneyextra.com

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