Dealer group Premium Wealth Management claims its Premium China Fund has become the largest unlisted China fund offered in Australia, surpassing $154 million in funds under management.
Premium, a relatively small Sydney-based dealership, launched the fund in October 2005, joining six other China-specific funds currently offered on the Australian market.
It competes against offerings from global institutional managers, including AMPCapital Investors (two unlisted funds), Challenger, Macquarie Investment Management Aberdeen and Fidelity.
National business development manger Jonathan Wu said the fund had experienced “incredibly fast growth in three years to become the largest China fund in Australia”.
“Remarkably, our fund had zero seed capital in it at launch, and currently we have close to 500 adviser firms from 39 dealer groups using us.”
Wu attributed the fund’s success to “a unique mandate that allows us to invest in companies that either have a majority of assets inside China, or derives a majority of income from China”.
“This has allowed us to invest in Taiwanese stocks, for example, in which we currently hold 7 per cent of our portfolio, as well as in the Nasdaq and even the Footsie.”
The fund is managed by Hong Kong-based fund manager Value Partners, which, as its name suggests, is a value manager with a small cap bias.
Macquarie Bank is the responsible entity, a possible reason why the fund is sometimes mistakenly referred to as the Macquarie Premium China Fund, and the custodian is JP Morgan International
The product is distributed wholesale on 14 major platforms, including Macquarie, BT, Skandia, Navigator, Summit, Netwealth, and Oasis.
