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Euro Pacific China Mutual Fund Announced

17 September 2009 12 Comments

I just recieved information from Euro Pacific regarding their new China Fund available for investors.  For those who may not be familiar with Euro Pacific, this is Peter Schiff’s company who has made a big splash with his excellent predictions of the U.S. economy over the last few years.

If you know anything about Schiff and his economic views, he views China as a major long term opportunity.  At first glance, it looks like this mutual fund will invest directly with Chinese companies on foreign exchanges.  Schiff also focuses on higher dividend companies.

After a quick glance, it looks like the minimum investment is $2,500 and there is a 4.5% front load fee along with 1.75% annual management fee which means that this fund is not cheap.  While I don’t own any mutual funds, I have to admit, this is the first one that I might actually consider since I’m such a fan of Euro Pacific.

You can find more information here.

12 Comments »

  • Bryan said:

    I hate the idea of paying a load to begin with. . .let alone a load that high. Plus your annual expense ration is 1.75%? No way. . .If anything, if you are set on looking for a China heavy fund I would just go with something like the Mathews China fund (MCHFX). However, there is this important element to investing called diversification which is key. How about the Vanguard Emerging Markets Fund. I would recommend to your readers something like the Vanguard Emerging Markets Index (VEIEX). It has an 18% exposure to China, 15% to Brazil, 7.6% India and many more emerging market countries. It has a .25% load and .25% redemption fee but its annual expense ration is .39%. So on day one the Vanguard fund is already beating the performance of the fund you were talking about by like 4%.

  • Kevin said:

    Bryan:

    It’s very expensive, indeed. I’ve seen some of the companies that EuroPac recommends tho over in China and they are companies that I would never find on my own. With regards to a long term investment over many years, it might make sense. Definitely not for everybody.

    Matt:

    That article, for one, is from January. Since then, his foreign investments have skyrocketed much more so than even the U.S. markets.

    While you can criticize any “expert” over his predictions over a short time span, 2 things Schiff has undoubtedly been clear on for many years is buy gold (since early 2000’s) and that the US markets were due for a major collapse, mainly because of housing.

    Fundamentally, I have a hard time disagreeing w/ his major views.

  • Matt said:

    You miss the arguments Mish makes, besides the market collapse. Schiff NEVER hedged for the possibility he could be wrong. Do you really want to tie your money up with a guy that thinks like that? Besides, he’s not gonna be as available now that he’s running for the US Senate. I disagree with your strategy, but why give your money to a loser?

  • Kevin said:

    It’s interesting to me that you’re calling an investment professional a loser. What is it about Peter Schiff that gets people up in arms? Who do you prefer? Nobody is forcing you to invest with him. Obviously I think his strategy is good and you don’t. So what? Don’t invest in the fund.

    Obviously, Schiff isn’t running the actual fund whether he lands a seat in the Senate or not. It’s not a one man show. I like their strategy and the companies they research in China; therefore, I will probably looking into this fund.

    Also, you say Schiff never hedges for the possibility he might be wrong. So, what? Are you planning to give him 100% of your assets? Then YOU can hedge if he’s wrong. I’m not gonna put all my eggs in this China Fund but it’s interesting to me so i might put a lil money in it at some point.

  • Matt said:

    It’s interesting to me that you’re calling an investment professional a lose

    Well, -70% in ONE year, and has he hedged for the possibility that Asian stocks are in a bubble this year? I’m just sayin’ you ouught to be absolutely certain of what this guy’s investment strategy is.

    Also, you say Schiff never hedges for the possibility he might be wrong. So, what? Are you planning to give him 100% of your assets?

    Not at all. But it does seem like an expensive proposition for a guy whose investment strategy is the old decoupling myth. China can only export as long as the US consumer is feeling well, and judging by your sentiment, he has the swine flu.

    Just saying that oftentimes when you pay the high fees Schiff charges, your return is better with a broad-based stock index of US companies that do a good share of business overseas.

  • Kevin said:

    Where do you get -70% from? china is up even more than the US this year

  • Matt said:

    From last year’s returns.

    Again, you always state the weak fundamentals of the US economy. China is in an incestual relationship with us, and if ours is bad, you don’t wanna see the hurt China will put on your investments in the future.

    China – The Next Bubble

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