One to Watch: Fund focus on China

INVESTORS can hardly have failed to notice the growing importance and influence of China. With GDP growth this year forecast to be in the region of 8 per cent, central bankers and politicians in the west can only look on with envy. It seems certain China will become an economic powerhouse and account for an increasing share of the global economy.

While investors have been drawn to managed funds investing in emerging markets and Asia, they have been slow to invest in funds focused on China. Until recently the options available to investors have been limited, but this is changing.

When a manager with the pedigree of Fidelity's Anthony Bolton stakes his faith, personal wealth and reputation in a fund investing in China then investors should pay attention.

However, for those wishing to obtain exposure to China there is another option, the Martin Currie China Fund, launching at the same time, but which has attracted far less in the way of column inches.

Martin Currie started to develop its greater China research team in 1994. It opened an office in Shanghai in 1997 when it launched its first fund specialising in Chinese equities. Assets under management have grown significantly and it now manages about $4.7bn in Chinese equities.

The Martin Currie China Fund will be focused and typically comprise 40 to 60 stocks.

The lead fund manager, James Chong, has an established track record of investing in greater China. The emphasis is very much on "stock picking" based on proprietary research and financial analysis.

Only time will tell which fund will perform better, but I consider, that without the fanfare, Martin Currie is offering an interesting option for investors to obtain exposure to the "China growth story".

The value of your investments may fall and you may get back less than you invested. This does not constitute investment advice and you should take professional advice regarding the suitability of this fund for your portfolio.

Bovis

388.7p +7.4p

Broker says BUY

FOLLOWING yesterday's annual results from Bovis, Killik has maintained its "buy" recommendation on the house builder.

"Bovis remains our housebuilder of choice. The shares trade on a 27 per cent discount to the historic tangible net asset value (520p] disclosed with today's results."

Morrison

305p +1p

Broker says SELL

CITI carries a "sell" recommendation on Morrison ahead of the UK's fourth-largest supermarket chain's full-year results this Thursday.

The broker noted: "New chief executive Dalton Philips doesn't start until the end of the month. We do not expect any grand announcements at these results."