Fund of the week: The biggest risk in Asia is China

It pays to be wary when investing in Asia. But that hasn't stopped this Asian-focused fund from profiting in the region.

China's growth story continues but it pays to be wary, warns Matthew Dobbs, manager of Schroders Asian Alpha Plus Fund. The £196.8m fund focuses on capital growth through investment in Asia, ex-Japan. Although 2011 was challenging, the fund lies second out of 66 funds in the regional sector, and produced a cumulative three-year return of 147.9% against the regional index of 86.8%.

The 55-stock fund played aggressively on IT last year "a counter-intuitive position but [which] proved absolutely right and made us quite a lot of money in the second half", Dobbs told Investment Week.

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Samsung Electronics5.8%
Jardine Strategic5%
Taiwan Semiconductor Manufacturing4.3%
Sun Hung Kai Properties3.9%
SembCorp Industries3.8%
Bangkok Bank3.4%
United Overseas Bank3.4%
Swire Pacific3.1%
Kerry Properties2.9%
Techtronic Industries2.7%
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