Fund Objective

To achieve long-term capital growth.

View on Past Performance

Although most Asian economies showed slower growth, affected by cooling export demand from the US and Europe, their long-term fundamentals remain fi rm. Mortgage demand and property sales across Asia also slowed, prompting us to change our focus towards countries whose fi scal balances are strong enough to support public works and infrastructure spending.

Future Expectations

Inflation should abate further on the back of the falling global oil price and the region's rising food production. China in particular has seen infl ationary pressures recede steadily after hitting a 12-year high of 8.7% in February 2008. This enabled the central bank to change the direction of its monetary policy in September and cut interest rates for the fi rst time in six years.China also stands out as having the biggest fi nancial fi repower in Asia as its fi scal surplus is forecast to grow over the next two years. We expect Premier Wen Jiabao to announce a series of fi scal stimulus measures during the fourth quarter.The Fund continues to focus on specifi c themes which we feel can best weather the current uncertain market environment. As a result of recent volatility, valuation levels have fallen to their lowest level since the launch of the Fund's benchmark in 1994. We believe this offers an excellent opportunity to invest in companies with strong fundamentals and solid earnings prospects at low prices.

Fund Details