The Fund's managers sold CSL and replaced it with Rio Tinto after CSL had performed particularly well and no longer offered attractive prospects. Rio Tinto is a diversified mining company in Australia with a global portfolio of low cost assets. Quantas Airways was sold soon after the company agreed to be bought by a private equity firm. The managers took the view that its prospects were limited and sold the entire holding. Other purchases included SSCP and President Chain Store.The Pacific Basin Fund trailed the index during the month. The Fund's high level of exposure to Hong Kong and a limited position in South Korea hindered performance. On the positive side, the Fund benefited from good stock selection in Australia, China, and Singapore. Its limited weighting in the poorer performing markets such as China and India also added value. In stock terms, the best performers included the Australian companies CSL and Woolworths,which announced strong results, as well as Olam International in Singapore. The poorest holding in the Fund was the financials stock Wing Lung Bank, while not holding Kookmin Bank also had a negative impact. Despite increased risk aversion among investors, which was one of the factors in recent market volatility, the medium-term growth profile of China and other markets in Asia remains strong. In China, the authorities still favour strong growth policies,and any measures they may take will not be too onerous. As a result, the overall economic situation should remain strong.
294.50p
