S&P assigns rating to Premier China Enterprise Fund

Standard & Poor's Fund Services has announced that it has assigned an A fund management rating to the Premier China Enterprise Fund.

This fund seeks to invest in companies with significant exposure to Greater China, which typically comprises stocks registered in China, Hong Kong and Taiwan. It is benchmarked against the MSCI Golden Dragon index but, despite the disciplined risk controls that are in place, it is benchmark-aware rather than benchmark-driven. There is a clear willingness by the manager to back his judgment, highlighted by off-benchmark investments and the exclusion of some large index constituent companies.

The mandate was changed from that of a generalist Far East portfolio, to Greater China in June 2008 resulting in an inevitable reorganisation of the fund. It is encouraging to note that in 2009 and 2010, the fund delivered consistently above sector average returns.

"Relative to most other Greater China funds S&P has reviewed and rated, this fund has limited resources dedicated to it, yet fund manager Fen Sung has proved to be highly effective. During his 10 years' relevant experience, he has developed a clear and considered investment approach that he applies in a consistent manner. The fund comfortably achieves an S&P A rating," said Linda-Jane Coffin, lead analyst, S&P Fund Services.