News

The Successful Launch of SMC China New Market Fund - Poised to discover China’s future Microsoft, Biogen and McDonald’s

October, 2009

SMC China New Market Fund has been successfully launched on October 1, 2009. China’s transformation into a dynamic private sector-led economy and its integration into the global economy are among the most important recent global economic developments. With an average GDP growth of 9.8% since 1979, China now ranks as the third largest economy in the world and is expected to surpass Japan to become the second by 2009. Before 1979, China’s private sector accounted for a negligible percent of the overall economy, but the private sector now employs an estimated 300 million people, contributes to 60% of GDP growth, 65% of newly registered patents, and 80% of new products in the economy.

As the only country among the top 10 global economies without a Growth Enterprise Market (GEM), China will join its peers on October 26, 2009 with the launch of a GEM Board on the Shenzhen Stock Exchange. The GEM Board is expected to provide and expand financing channels for young entrepreneurs managing privately-owned, innovative growth companies and start-up businesses, with a strong emphasis on growth potential and profitability. As an investor, this financial environment provides attractive first-mover investment opportunities.

The SMC China New Market Fund, characterized by a long only strategy, intends to invest in high growth listed private enterprises on the new GEM Board, as well as domestic and overseas exchanges. The Fund’s sector focus constitutes consumer & retail, healthcare & pharmaceuticals, new & renewable energy, new materials, educational institutions, information technology and media & entertainment.

SMC China’s fundamental proprietary research and its access to SMC Group’s venture capital / private equity expertise in evaluating early stage companies will allow SMC China Fund to become a strong player in this growth enterprise market. Also, SMC China Opportunity Fund I, our flagship fund has provided an annualized net return to our investors of 25% since January 2006. Thus, our capabilities and experience uniquely position us to seize the opportunities presented by the launch of the new GEM Board.

Fund Target Size: Up to USD 250 million
Subscriptions & Redemptions: Monthly
Subscription: Minimum USD 200,000
Management fee: 1.0%
Performance fee: 20% with a high water mark