Silver anniversary for Gartmore's China Oportunties Fund

As the Chinese New Year celebrations comes to an end, the award winning Gartmore China Opportunities Fund approaches its 25th anniversary.

Launched in 1983, the Year of the Pig, the Fund enjoyed an exceptionally successful 2007 returning an impressive 71.2%, making it the best performing UK mutual Fund over the year. Charlie Awdry, manager of the £761m Fund provides his outlook for the Chinese economy and highlights some key themes for 2008.

“China’s economy has been growing robustly for the past five years as the Country continues to create a modern socialist economy.

“As we enter the Year of the Rat, there is much to be positive about.

“China is currently experiencing an energy intensive phase of development, so commodities such as coal present a great opportunity especially as it will take time to increase supply in line with demand.

“In addition, we have identified some cyclical headwinds driven primarily by slowing external demand, as Western economies deal with the after-effects of US credit problems. However, more importantly, domestic earnings growth, which is the key focus of the Fund’s investments, remains strong, despite tighter monetary policy announced in December 2007.

“Furthermore, we believe that an appreciating local currency will boost domestic consumption and be of long-term benefit to the Chinese economy.”

The Gartmore China Opportunities Fund has been awarded a three star rating from Morningstar and has a S & P ‘A’ rating. The Fund has an impressive performance record over both long and short term periods. The Fund has been ranked first amongst its peers over 1, 2, 3, 4 and 5 years as well as since its launch 25 years ago.