INVESTMENT IDEAS

Good Ways To Get Exposure To China And India

FOR RISK MANAGEMENT reasons, retail investors should consider obtaining their exposure to China and/or India through broader Asian or global emerging market funds including investment trusts, whose closed-ended structure is well-suited to holding often illiquid emerging market stocks.

One solid selection is JPMorgan Emerging Markets (JMG), which according to the Association of Investment Companies is one of the best 10-year performers in the global emerging markets sector, having delivered a healthy share price total return of 114% over that period.

JPMorgan Emerging Markets

Investors seeking single-country exposure to China might look to the best 10-year share price total return performer in the AIC’s China/Greater China sector, namely the aforementioned Fidelity China Special Situations, up over 250% on a decade-long view and invested in the likes of Ping An Insurance (2318:HKG), e-commerce-to-internet group Alibaba (9988:HKG) and privately-owned TikTok-parent Bytedance.

The trust, which trades at a 5.7% discount to net asset value, has ongoing charges of 0.84%, among the lowest in the sector reflecting the benefits of its scale.

Managed by seasoned emerging markets expert Austin Forey alongside John Citron, India is its biggest regional allocation at 22.5% followed by China at 21.7%, with top 10 positions including Chinese internet group Tencent (0700:HKG) and India’s Infosys (INFY:NSE), the Bangalore-based business consulting-toinformation technology firm.

Investors with a taste for the hot returns offered by India long-term might be tempted by the topperforming India Capital Growth Fund (IGC), although you’ll have to pay up for the privilege as ongoing charges of 1.5% are the highest in the AIC India sector.

India Capital Growth Fund

For reference, the largest India investment trust in terms of assets is JPMorgan Indian (JII), currently trading on a 16.1% discount.

The trust on the widest discount, 17.9% at the time of writing, is Aberdeen New India, a quality company-focused trust which has faced a style headwind.

09 FEBRUARY 2023

Registration and coffee: 17.15

Presentations: 17.40

During the event and afterwards over drinks, investors will have the chance to:

• Discover new investment opportunities

• Get to know the companies better

• Talk with the company directors and other investors

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Companies Presenting

ARTISANAL SPIRITS COMPANY PLC (LON: ART)

A curator and provider of premium single cask Scotch malt whisky and other spirits for sale primarily online to a discerning global membership.

GETECH GROUP PLC (AIM:GTC) Getech Group generates revenue by locating new energy and mineral resources. The Group works for governments and companies who seek to decarbonise their operations.

MERCIA ASSET MANAGEMENT (LON:MERC)

A proactive, specialist asset manager focused on supporting regional SMEs to achieve their growth aspirations.

OROCO RESOURCE CORP (TSX-V:OCO.V)

The Santo Tomas deposit is an emerging copper giant, with a multi-million tonne resource demonstrated by historical exploration.

RAMSDEN HOLDINGS PLC (LON: RFX)

A diversified financial services provider and retailer operating in: Foreign currency, pawnbroking, purchases of precious metals, jewellery retail segment and income from other financial services.