The Fund saw a rise in its unit price of 2.1% underperforming the index. Despite stock selection contributing positively by 1%, overall asset allocation was negative due to being overweight s-chips, and underweight the HKD. Our star performer was Want Want, China's leading rice cracker manufacturer which rallied 15.6% over the month after announcing excellent sales growth. China's financial sector was mixed over the month.Banks fell in line with the index due to fears of slowing loan growth, whilst insurance stocks outperformed with Ping An contributing positively rallying 5.8% after reporting a strong set of results. Parkson Retail rose 4.4% where results continue to show a strong management team and increasing sales in China. The Hong Kong stock market fell 6.5% over the month, primarily on the back of China Mobile falling 14.6% due to continued fears of rising competition.Hopewell Holdings performed well rising 6.2%, after news that the HK-Zhuhai-Macau Bridge will now be funded by the government. Taiwan was the best performing market due to ending the month relatively flat with technology stocks bouncing back from steep falls in July. In reality however, recent results from Hon Hai Precision showed both weaker sales and margin erosion, which does not bode well for the entire technology sector.The Singapore S-chips index was the worst performing market falling 16.9%, in-line with the local Chinese market. Again environmental stocks faired better with Epure International and Sino- Environment remaining relatively flat. Currencies saw big moves over the month with the Hong Kong dollar and Chinese yuan strengthening by 8% against sterling, and the Singapore and Taiwanese dollar strengthening around 5%.This is resulting from a weak UK economy.
