Fee cut delivers dividends for Premium China Funds Management

Posted on: November 15th, 2019

Category: News

Premium China Funds Management has welcomed the upgrading of its Premium Asia Fund by research and ratings house Zenith.

Zenith upgraded the fund, which is managed by the Hong Kong-based Value Partners, to a “recommended” rating noting that it retained confidence in the Value Partners experienced investment team and approach.

Zenith also noted that recent changes to the Fund’s fee structure had improved the overall attractiveness of the strategy.

The objective of the Premium Asia Fund is to generate positive returns, consisting of both capital growth and income, over a three to five year period by constructing a portfolio of securities providing exposure to the Asia ex-Japan region. Launched in 2009, the Premium Asia Fund has produced double-digit returns in all but two years.

Commenting on the upgrade from Zenith, Premium China Funds Management executive director and chief investment specialist, Jonathan Wu said the company was pleased that value of its fee structure changes had been appropriately noted by the ratings house.

Premium China Fund announced in June that it would be reducing the fee applying to the Premium Asia Fund by 45 basis points – a measure which would sit alongside the removal of the performance fee.

Wu said 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.

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