Magnum Launches China Fund Of Funds

by Mary Swire, Tax-News.com, Hong Kong

07 January 2008

Magnum late last month launched a fund of funds offering investors the opportunity to capitalize on one of the fastest growing economies in the world.

The new Magnum China Fund seeks substantial gains by investing in several of the top-performing funds investing in the Greater China region.

Many of these funds would be difficult to access directly due to lack of capacity or restrictively high minimum investment levels. The fund takes advantage of the tremendous investment opportunities in China, which, since becoming a member of the World Trade Organization, has grown to become one of the world’s dominant economic forces.

China's economic growth rate has averaged 9% since the start of the 1980’s, and is currently over 10% a year. China’s savings rate is over 35%, compared to just 2% in the US, and 40% of China’s output goes to exports, resulting in no crippling foreign debt. China attracted nearly $70 billion in direct foreign investment during 2006, which, combined with its trade surplus, has brought Beijing’s foreign currency reserves to over $1.3 trillion, the largest in the world.

In one decade, China’s manufacturing base for durable goods increased 100-fold, and China’s fixed assets - ports, bridges and roads - are doubling every 2 1/2 years, Magnum revealed.

As a result of such growth, China investments have yielded investors tremendous profits, which the fund seeks to capitalize on. The fund also benefits from the experience of the investment adviser, Magnum Funds, enabling investors to benefit from Magnum’s oversight, research and due diligence with regard to the individual funds that Magnum China Fund is invested in.

This eliminates the need for investors to conduct their own time-consuming due diligence that is otherwise required for making hedge fund investments.

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