View the article online at http://citywire.co.uk/money/article/a608066
First State flags up size of Asia Pacific Leaders fund
(Update) First State says it will not allow Angus Tulloch's popular Asia Pacific Leaders fund to be listed on any more investment websites.
(Update) First State Investments has highlighted the size of its flagship Asia Pacific Leaders fund as an issue for investors to consider.
The same applies to its Global Merging Markets Select III fund, run by Jonathan Asante.
In itself this is not a problem as Tulloch's fund, a star pick of our Citywire Selection team, is already on most, if not all, the main investment websites, such as Alliance Savings, Barclays Stockbrokres, Best Invest, FundsNetwork and Hargreaves Lansdown.
In a statement the company said that customers on these platforms would still be able to buy units in his fund.
It said: 'First State are not accepting new platforms for the First State Asia Pacific Leaders Fund or the First State Global Emerging Markets Select fund. Individuals can still buy units for the First State Asia Pacific Leaders fund. The First State Global Emerging Markets Select fund does not have a retail share class.'
Tulloch is admired for applying a conservative investment approach to one of the fastest growing regions of the world. Over five years his fund is ranked third out of 79 Asian Pacific funds with a 66% return. Although there has been no signs of underperformance, the firm's move signals some concern that the fund could be too big to handle.
The move came as Tulloch, who co-manages Asia Pacific Leaders alongside Alistair Thompson, spoke to investors and issued his latest market outlook.
He said China's government will not be able to control growth as much as the world thinks, but the Asia veteran also believes that India will offer 'exciting' opportunities.
Fearing the impact of the long-running euro crisis on flows from the West, as well as problems in the US and the Middle East, Tulloch (pictured), said there was clear evidence the tiger was slowing and policy makers would begin to shift their attention from inflation, which has been easing, to creating jobs.
They will also be keen to quash renewed problems in the property market, Tulloch explained, though the government may not be able to do meet expectations on activity.
Tulloch explained: 'Retail sales are coming off; the government is doing what it usually does, reacting sensibly to a problem. I think it will focus on employment and shift from inflation, which has been slowing, but is concerned about property. It's fine tuning, but fine tuning is difficult to get right. We do not think it is as able to control growth as much as the world thinks.'
Given all the global uncertainties, the First State Asia Pacific manager said he is staying cautious and believes that thematic bets are not worth the risk.
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by Daniel Grote on Feb 27, 2015 at 18:36