GARTMORE CHINA OPPORTUNITIES

This is undoubtedly the China fund with the greatest pedigree. It has just enjoyed its 25th anniversary, continues to attract stronger inflows than any other China fund, and was the best performing fund of its kind in 2007. As exporters are expected to suffer from a global slowdown in 2008, the manager, Charles Awdry, is focussing on domestic demand, which remains strong, despite interest rates going up through 2007.  

Chinese inflation is heading up, suggesting more action to curb demand (and therefore inflation) from Chinese authorities. On the other hand, recent sharp falls do appear to be discounting a lot of this, and there is now an opportunity to buy. This is obviously a focussed fund, not inherently diversified, but then nor is a US fund, and they are both powerhouses in their own right. Exposure should not exceed 5% of your portfolio, and the risks are greater than with a global emerging markets fund. Consider monthly contributions.  

To achieve a long-term return, in excess of the long-term return that is typically achieved from investments in Hong Kong and Chinese equity markets.