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First State China Growth Fund 31 August 2011 Client Update Irish VCC Investment Objective & Policy Fund information The Fund aims to achieve long term capital appreciation. The Fund invests primarily in Launch date 17/08/1999 securities issued by companies with either assets in, or revenues derived from the Fund size (US$m) 4,300 People's Republic of China that are listed, traded or dealt in on Regulated Markets in Benchmark* MSCI China Index China, Hong Kong, Taiwan, the US or in a member state of the OECD. *The benchmark changed from MSCI Golden Dragon Index to the above on 01/06/2002 Number of holdings 70 Fund managers Martin Lau / Xian Quanqiang ISAable fund No Cumulative performance (% in USD) to 31 Aug 2011 Minimum investment US$1,500 lump sum / US$1,000 subsequent Charges Initial 5.0%; Annual 2.0% 3 6 1 3 5 10 Since Period mths mths yr yrs yrs yrs Launch Share type Accumulation & Income Fund return -9.0 -2.1 1.0 34.7 129.9 832.8 858.9 Benchmark return -13.4 -6.9 -0.1 10.1 78.6 400.7 249.7 Sector return - - - - - - - Quartile rank - - - - - - - Annual performance (% in USD) to 31 Aug 2011 Ten largest holdings 12 mths to 12 mths to 12 mths to 12 mths to 12 mths to Stock name % Stock name % Period 31/08/11 31/08/10 31/08/09 31/08/08 31/08/07 ENN Energy Holdings 5.4 China Resources Power 3.8 Fund return 1.0 31.7 1.3 -19.3 111.4 CNOOC 5.2 China Construction Bank (h) 3.4 Benchmark return -0.1 9.4 0.8 -20.0 102.7 Yantai Changyu 4.7 China Merchants Bank 3.4 Sector return - - - - - China Telecom 4.4 China Resources Enterprise 3.2 Quartile rank - - - - - China Oilfield Services 4.0 Belle International 3.0 Manager s Manager's comments Sector breakdown • Global markets pulled back in August, as investor risk appetite was negatively Consumer Staples: 16.3% (*5.5%) affected by Europe’s debt problem and continued softness in the US Financials: 15.0% (*34.1%) Consumer Discretionary: 14.5% (*6.0%) economy. Utilities: 11.9% (*2.0%) • The MSCI China Index closed lower, led down by financial, materials and Energy: 9.4% (*18.7%) Telecom Services: 8.9% (*13.6%) industrial stocks. Information Technology: 6.6% (*6.0%) • The underlying economy is robust, even though investors are nervous about a Industrials: 5.4% (*6.9%) Materials: 4.4% (*6.4%) ‘hard landing’. Health Care: 3.9% (*0.8%) Multiple sectors: 1.7% (*0.0%) • However, inflation remains stubbornly high, rising to 6.5% in July. Cash: 2.2% (*0.0%) • We bought Wuxi Pharmatech, a well-run contract research organisation, and Sinoma, China’s leading cement equipment maker, at cheap valuations. Share class breakdown • We sold Belle, taking profits in the company as valuations had become Red Chips: 41.5% expensive. China H Shares: 23.3% Hong Kong: 13.2% • In the longer term, China will continue to grow its domestic economy and level China B Shares: 7.0% of urbanisation, benefiting companies such as ENN Energy and China US Listed: 5.6% Taiwan: 2.2% Resources Power. Japan listed: 2.0% China A Shares: 1.7% • We continue to prefer companies with visible earnings growth and proven Shanghai - B: 0.9% Singapore: 0.4% management track records. Cash: 2.2% *Index Allocation How to contact us Client Services team: 0800 587 4141 Dealing line: 0800 587 3388 E-mail: firstname.lastname@example.org Important Information / Risk Factors: Past performance is not a guide to future performance, and investment markets and conditions can change rapidly. If your fund invests in equity markets, it will be more volatile than an investment in cash or fixed deposits. The value of your investment may go down as well as up. There is no guarantee you will get back the amount invested. If your fund invests in overseas markets, currency movements may affect both the income received and the capital value of your investment. If it invests in the shares of small companies, in emerging markets, or in a single country or sector, it may be less liquid and more volatile than a broadly diversified fund investing in developed equity markets. This fund should be considered a long-term investment. You should read the fund’s Prospectus before investing, including in particular the sections on the risk factors applicable to any investment. The views expressed herein should not be relied upon when making investment decisions. Statistical sources: All performance data as at 31 August 2011 : Source for fund - First State (using Barra Enterprise Performance), net of fees with income reinvested gross of tax; source for benchmark - RIMES, income reinvested gross of tax. All other portfolio details and non performance information (top 10 holdings, fund size, sector and country breakdown): First State's own records. Any research or analysis used in the preparation of this document has been procured by First State for its own use and should not be relied upon by others. Since launch performance figures have been calculated from 17 August 1999. Further details: First State China Growth Fund - Class I is a sub-fund of First State Global Umbrella Fund plc, an open-ended investment company with variable capital and with segregated liabilities between sub-funds, incorporated with limited liability under the laws of Ireland with registered number 288284 authorised in the Republic of Ireland. Copies of the Prospectus and Simplified Prospectus for the First State Global Umbrella Fund plc are available free of charge by writing to: Client Services, First State Investments (UK) Limited, 23 p p p p g y g 3 St Andrew Square, Edinburgh, EH2 1BB, by telephoning 0800 587 4141 between 8am and 5pm Monday to Friday or by printing the documents out from the website www.firststate.co.uk. Issued by First State Investments (UK) Limited, authorised and regulated by the Financial Services Authority. A member of IMA. Registered number: 2294743. Registered address: 3rd Floor, 30 Cannon Street, London EC4M 6YQ.
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