Fee reduction boosts fund rating
Premium China Funds Management (PCFM) has received an upgrade of ‘recommended’ to its Premium Asia fund by research and ratings house Zenith.
Zenith upgraded the fund, managed by Hong Kong-based Value Partners, noting it retained confidence in Value Partners’ experienced investment team and approach.
They had also noted recent changes to the fund’s fee structure had improved the overall attractiveness of the strategy.
The fund announced in June it would reduce the fee applied to the Premium Asia Fund by 45 basis points, as well as the removal of the performance fee.
Jonathan Wu, PCFM executive director and chief investment specialist, said the company was pleased the value of its fee structure changes had been appropriately noted by the ratings house.
“The fee reduction, which went live on 1 July with the new financial year had represented a significant step on the part of PCFM in circumstances where the Premium Asia Fund was the manager’s most mainstream offering with a strong and consistent performance track record which it believed needed be recognised,” Wu said.
Chart 1: Performance of Premium Asia fund from 1 November, 2016 to 31 October, 2019, accumulative.
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