Mona Shah, assistant fund manager of Rathbone Enhanced Growth
"China is now trading well below its 10-year average due to several macroeconomic and structural headwinds coming to the fore; however, much of that downside is now priced in.""Our valuation focus and long-term approach suggests this is an attractive entry point. It is clear that the era of supersized growth is over and, consequently, we think a highly active stock-picking approach will be rewarded."
"Coupland Cardiff Asia Alpha is a concentrated, capacity-constrained fund that invests in under-appreciated stocks, given the nature of the business cycle; special situations; or undiscovered gems that are under-researched."
"The fund is best able to exploit the above opportunities due to its small size and nimble nature. It can invest in A-shares, but historically has only invested in Hong Kong-listed equities, owing to the valuation distortions in the former."
Rob Burdett, multi-manager at Thames River Capital
"Our focus at Thames River is on managers rather than asset allocation. We feel that having direct exposure to one emerging market country is likely to skew the focus of the fund.""China has certain problems with liquidity and transparency and many of the most investible companies are unlisted. There is also a disconnect between the strength in the overall economy and the stock market. China was the only BRIC economy that lost investors money last year, even though growth was much better than it was here."
"We think the best way to access China is through more general Asia funds. We prefer to invest in the expertise of a manager who knows the macro situation and is able to decide how heavily to invest. Investing directly in China is a play on the country rather than a play on the value added by the manager."
"We have held the First State Asia Pacific fund before, as many people do, but we’ve gone for the more boutique houses recently. We like the Coupland Cardiff Asia Alpha fund as well as the Tiburon Taipan fund."
Patrick Connolly, head of communications at AWD Chase de Vere
"We tend not to invest directly into Chinese funds as the macro-picture can change quite suddenly. We prefer more general emerging markets funds.""But for our clients that do insist they want direct exposure to China, then there’s only one fund we recommend and that is the First State Greater China Growth fund."
"As with all the emerging markets, it’s important to find a team that has the expertise on the ground and a proven track record. The First State team fits the bill on both fronts."
Neil Shillito, director at SG Wealth Management
"The First State Asia Pacific fund is the one we particularly like for our exposure in that part of the world. Martin Lau’s performance has been extraordinary and he’s really doing a good job.""We don’t tend to recommend direct exposure in China and we’ve certainly not even thought about buying Anthony Bolton’s Fidelity China Special Situation Investment Trust. I’m not suggesting that he is anything other than a first-class fund manager but it had the feel of a 'me too' fund when it launched."
"We are great fans of building multi-asset portfolios that can run for some considerable time and a play on Asia, rather than China, gives us more flexibility."