CLASS Inv NAV: $27.84
Ticker: CHNAX Change: $0.43
CLASS C NAV: $26.37
Ticker: CHNCX Change: $0.42
CLASS I NAV: $28.56
Ticker: CHNIX Change: $0.45

The Case for China

The Chinese economy is in the midst of dramatic change and growth

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China is the largest country in the world with more than 1.3 Billion residents, equal to 20% of the global population.
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Rapid urbanization to continue as China transitions from an agrarian society to an industrialized nation.

 

The massive size and very high structural growth rate has turned China into one of the largest and most dynamic economies and financial markets in the World.

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Middle class finally emerging and becoming a large force.
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Still a low income country, but aggregates are huge creating massive end markets for consumer goods.
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National champion strategy has created some of the largest, most profitable companies in the world.

 

For US observers, China's prowess in manufacturing and exporting light industrial and low-end consumer goods is well known.

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China's export dependence is overstated, though exports are important.
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Continental economy also contributes to domestic growth; China not dependent on trade for most basic needs.
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China is moving up the value chain in manufacturing, long process but some innovative companies are hiring Japanese / Korean ex-pats for their technological know-how.
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China's domestic economy still has vast infrastructure needs (interior) and consumption potential (rising disposable income and excess savings).
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Rebalancing possible because of the strength of China's banking system, corporate sector, government finances and policy implementation and household sector.

 

Financial reforms have helped develop a large, liquid capital market in China, opening the country up to foreign and domestic investment.

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Aggregate equity market cap. of Hong Kong / China listed shares is $5.5 Trillion or 12.5% of global market cap.
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Volumes on Shanghai and Hong Kong very high.
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Future reforms to unlock captive capital (A-shares vs. H-shares).

Investing in China, Hong Kong, and Taiwan involves risk and considerations not present when investing in more established securities markets. The Clough China Fund may be more susceptible to the economic, market, political, and local risks of these regions than a fund that is more geographically diversified.

This fund is not suitable for all investors. Subject to investment risks, including possible loss of the principal amount invested.

On January 15, 2010, the Old Mutual China Fund (the “Predecessor Fund”) was reorganized into the Clough China Fund (the “Fund”). The historical performance shown for periods prior to January 15, 2010 reflects the historical information for the Predecessor Fund.

The fund is subject to by several risk factors which are explained by clicking here.

An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information, call 866.759.5679 or visit www.alpsfunds.com. Read the prospectus carefully before investing.

Clough China Fund is: Not FDIC Insured - No Bank Guarantee - May Lose Value.

The Clough China Fund is a series of Financial Investors Trust.

ALPS Portfolio Solutions Distributor, Inc. is the distributor for the Clough China Fund

ALPS Portfolio Solutions Distributor, Inc. is not affiliated with Clough Capital Partners, LP.

© 2010-2017 ALPS Advisors Inc. - All rights reserved.

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