Over the last 20 years, China's economy has grown remarkably and it is now poised to be the world's second largest economic superpower behind the US. The vast majority of this growth has been driven by the export market, but China has begun rebalancing this growth in favour of the domestic economy, particularly since the credit crisis in the west.
The growth in exports has however produced some undesirable consequences creating imbalances such as a growing income gap between the rural and urban areas. Pollution, water shortages and an inefficient use of resources has also presented severe problems. The Chinese authorities have implemented various reforms including the improvement of infrastructure and social services. There are also reforms relating to education, healthcare and the environment and herein lies the opportunity.
The Jupiter China Sustainable Growth Fund looks to capture the growth associated with the environmental, social and economic developments affecting the urbanisation of China. According to the manager, Philip Ehrmann, these themes and sectors are the main building blocks that may enable China to develop a broadly based domestic economy where growth is not reliant on exports alone.
This is not a 'green' fund but it aims to capture growth from niche areas of the Chinese market, some of which may have a positive impact on the environment. The main areas of investment include energy, water, healthcare, education, construction, waste management and agriculture.
This is a focused portfolio of 30 to 40 companies operating in a single country and it has a bias in the small and medium sized companies. While this increases risk, we believe it has the potential to deliver exceptional long term returns through these emerging themes in China. We also hold Philip Ehrmann in high regard and believe the fund makes a valuable addition to the Wealth 150 list of our favourite funds in each sectors. However, because of its very specialised nature, we would suggest an investors' first purchase in this region be through a global emerging markets fund.
Key Features of the Jupiter China Sustainable Growth Fund
The growth in exports has however produced some undesirable consequences creating imbalances such as a growing income gap between the rural and urban areas. Pollution, water shortages and an inefficient use of resources has also presented severe problems. The Chinese authorities have implemented various reforms including the improvement of infrastructure and social services. There are also reforms relating to education, healthcare and the environment and herein lies the opportunity.
The Jupiter China Sustainable Growth Fund looks to capture the growth associated with the environmental, social and economic developments affecting the urbanisation of China. According to the manager, Philip Ehrmann, these themes and sectors are the main building blocks that may enable China to develop a broadly based domestic economy where growth is not reliant on exports alone.
This is not a 'green' fund but it aims to capture growth from niche areas of the Chinese market, some of which may have a positive impact on the environment. The main areas of investment include energy, water, healthcare, education, construction, waste management and agriculture.
This is a focused portfolio of 30 to 40 companies operating in a single country and it has a bias in the small and medium sized companies. While this increases risk, we believe it has the potential to deliver exceptional long term returns through these emerging themes in China. We also hold Philip Ehrmann in high regard and believe the fund makes a valuable addition to the Wealth 150 list of our favourite funds in each sectors. However, because of its very specialised nature, we would suggest an investors' first purchase in this region be through a global emerging markets fund.
Key Features of the Jupiter China Sustainable Growth Fund
