Magdalena Miller, Fondsmanagerin, "Standard Life IG SICAV China Equities A" (30.03.2011): "Standard Life Investments´ investment philosophy is ´Focus on Change´. We look for changes in Industry Structure, Company Behaviour, New Developments that could affect a corporate´s future profitability and cash flow to shareholders and how these factors are reflected in the share prices."
Mark Mobius, Fondsmanager, "Templeton China I (acc) USD" (29.03.2011): "Unrest in the Middle East and North Africa led investors to adopt a more risk-adverse position in February, resulting in volatile stock markets globally and significant outflows from Chinese markets. The MSCI Golden Dragon Index ended the month with a decline of 4.35% in U.S.-dollar terms. Concerns of an interruption in oil supplies due to turmoil in Libya and contagion spreading throughout the region led to a sharp spike in oil prices. High oil prices, coupled with increasing food prices in many markets, further fueled concerns about slower global economic growth and higher inflation. In an effort to curb liquidity and inflation, the People’s Bank of China raised its one-year deposit and lending interest rates by 25 basis points in February, its first increase this year. Inflationary pressures remained high, with consumer prices rising 4.9% year-over-year (y/y) in January compared to an increase of 4.6% y/y in December 2010. Higher food prices remained the leading contributing factor, increasing 10.3% y/y in January. Foreign direct investment (FDI) inflows surged 23.0% y/y to US$10 billion in January compared to a 15.7% y/y increase in December 2010. The services and manufacturing sectors recorded significant inflows."
Martha Wang, Fondsmanagerin, "Fidelity Funds - China Focus A-USD" (30.03.2011): “When I look at the fundamentals of Chinese companies, I tend to look at those companies that offer growth at reasonable valuations. The key stock selection decisions are based around:
1) Growth prospects: above average industry growth, growth supported by secular trends, top line growth with improving profitability, positive earnings surprises
2) Management track record: creation of shareholder value, good disclosure/corporate governance
3) Attractive valuation in terms of relative to mid-term earnings outlook, relative to historical ranges, relative to domestic and global industry peers and current valuation discount to NAV.”
Louisa Lo, Fondsmanagerin, "Schroder ISF Greater China I Acc" (25.03.2011): "The fund invests in high quality companies that grow shareholder value. Such companies generate returns on invested capital greater than their weighted average cost of capital. The investment team believe these companies will outperform their peers over the medium to long term."
Christina Chung, Fondsmanagerin, "Allianz RCM China – A – USD" (30.03.2011): "We believe that management quality and earning visibility are the most important factors for assessing chinese equities."
Bin Shi, Fondsmanager, "UBS (Lux) Eq Fd – Greater China (USD) P-acc“ (30.03.2011): "We look for companies who have good structural growth drivers and are attractively valued from a mid-long term perspective. We tend to focus on companies with the ability to manage economic cycles well or with the ability to power through cycles. Adjustments are made to the portfolio based on stock valuations and changing economic backdrop."
Sherene Ban, Client Portfolio Managerin, "JF China C Acc USD" (29.03.2011): "Growth, inflation, retail sales, wage growth, monetary policy, government policy."
e-fundresearch: "What is you general outlook for China and Greater China stocks over the coming 12-18 months? Where do you see opportunities and where are the risks?"
Magdalena Miller, Fondsmanagerin, "Standard Life IG SICAV China Equities A" (30.03.2011): "Standard Life Investments is positive on China over the coming 12-18 months as valuation is supportive and growth momentum remains strong. In particular, we are seeing improvement in corporate profitability and cash flow generation with new products/markets beyond what is priced in. With the tremendous credit growth last year, there is risk of misallocation of capital, so some sectors with overcapacity problems should be avoided. However, we see ample opportunities for profitable growth, consumption areas are still fertile ground for stock hunting but one has to differentiate cyclical from secular growth as well as be very wary of the level of competition. Within the consumer sector, there are healthcare, services and travel companies with strong defensible franchises."
Mark Mobius, Fondsmanager, "Templeton China I (acc) USD" (29.03.2011): "Chinese officials are concerned about future developments in their country. As a result of some labor shortages and rising wages in the low-end labor intensive manufacturing sector, some managers are moving parts of their production out of China to lower-cost countries such as Vietnam. This of course raises the question of unemployment in the export-oriented area which, combined with inflation, could result in social turmoil and labor unrest, if it’s not well-managed. One positive aspect is that the Chinese government recognizes the issues and addresses many of them in their new Five-Year Plan.
We continue to maintain our positive long-term outlook for the greater China region, given its fundamental strength. China is one of the fastest-growing economies in the world and continues to display strong financial and economic fundamentals. In 2010, the country toppled Japan as the world’s second-largest economy after the U.S., solidifying its growing political and economic importance. China could overtake the U.S. economy to become the biggest economy in the world by as early as 2030, if current growth trends continue. According to the International Monetary Fund (IMF), China recorded growth of 10.3% in 2010, more than three times the 3.0% growth recorded in developed economies. The IMF projects that China will grow 9.6% in 2011 and 9.5% in 2012, significantly higher than the 2.5% annual growth projected for developed economies for both years.* China also has the largest store of foreign reserves in the world, at more than US$2.6 trillion, and relatively low debt levels.** Foreign direct investment continues to grow as international investors remain attracted to China’s booming economy. The steady increase in the global supply of money has further supported equity prices as investors search for higher returns in an environment of low interest rates in developed markets and rising inflation in emerging markets.
The potential impact of inflation factors into our investment decisions. Food prices in particular have increased considerably and, we believe, are likely to continue to rise due to increasing demand from fast-growing emerging markets and weather changes around the world. We may have to live with higher food prices unless productivity increases dramatically. For this reason, we prefer companies whose margins can absorb higher costs. As investors, we try to focus on two factors: One, we look for companies that have good brands and can raise prices in line with higher input costs; and two, we look for companies that have a good distribution network to reach their consumers. We believe a number of companies in emerging markets fulfill these criteria."
* Source: International Monetary Fund, World Economic Outlook Update, January 2011.
** Source: International Monetary Fund, World Economic Outlook, October 2010.
Martha Wang, Fondsmanagerin, "Fidelity Funds - China Focus A-USD" (30.03.2011): “The general outlook for China stocks over the next 12-18 months is positive. The key opportunities are around the growth plans of China with the new upcoming 12th Five-Year-Plan as China goes through structural changes which surround following themes: government’s promotion of consumption growth as a growth driver, property market reform/social housing, improvement in medical & pension provisions to gradually reduce savings rate, urbanisation and rural reforms, renewable energy, development of private sectors and strategic industries and financial and fiscal reforms.
In the short-term the key risk surrounds the ongoing tightening by the government to combat inflation and asset prices. In the medium to long term, the challenge would be whether the forthcoming government can successfully transition the country from an export-driven model to a domestic consumption driven model in order to sustain its growth momentum.
For greater china region, the outlook for Hong Kong and Taiwan are bright thanks to the ongoing growth in China and the growth overflow effect to the Greater China region. The current free trade agreements between China and Hong Kong and Taiwan are expected to bring further benefits to all three parties in terms of tourism, finance and cross trade. Taiwan and Hong Kong already reap much benefit from the growth in outbound tourism from mainland China as well as the regionalization of RMB lifting the banking sector for the region. Taiwan in particular has already benefited from a broad re-rating of its stock market since the initiation of the Economic Co-operation Framework Agreement (ECFA) with China in June 2010.”
Louisa Lo, Fondsmanagerin, "Schroder ISF Greater China I Acc" (25.03.2011): "Three countries form the Greater China bloc, or Golden Dragon. These are China, Hong Kong and Taiwan. All share the same culture and are at different stages of development. Hong Kong offers a mature stock market with an international financial centre. Taiwan is a maturing economy with a high technology industry. Both benefit from their interaction with the mainland and its rapid economic expansion. We believe that equity markets are not fully efficient. The investment team exploits market inefficiencies through the application of extensive, rigorous proprietary research aimed at identifying mis-priced opportunities. We believe that in the long term the inherent value of companies will be recognised by the market thus eliminating this mis-pricing, and delivering superior returns."
Christina Chung, Fondsmanagerin, "Allianz RCM China – A – USD" (30.03.2011): "As the Chinese Government continues to focus on fighting inflationary pressure as a top priority, we would expect market sentiment to remain cautious until CPI inflation shows signs of easing over the next few months. The discussion of the policy goals for China´s 12th 5-year plan may create some short-term excitement to specific sectors or stocks. Yet, these are largely within market expectation and hence is unlikely to have a major impact on the market. Once the inflation concerns cease, we expect the better market sentiment."
Bin Shi, Fondsmanager, "UBS (Lux) Eq Fd – Greater China (USD) P-acc“ (30.03.2011): "We are turning more positive on the Chinese equity market and given the current low valuation, we believe it is a good opportunity to build up positions for a potential market rally in the second half of the year.
The biggest fundamental support for China market is its valuation, which is trading at historical low. Despite all the policy tightening in China and economic uncertainty globally, the China market has remained resilient recently. We believe that short term tightening is beneficial to long-term sustainable growth. As long as we don´t have a hard landing in Chinese economy, the current market represents a very good opportunity for the next 12 months.
China’s economic restructuring will continue as the government aims to increase the consumption share of GDP by 2-3ppt in the 12th Five Year Plan, along with higher targets of household income growth and improvement in livelihood. We favour sectors which can benefit from this structural change, such as Consumer and Health Care, which are also less impacted by China’s rate hikes, macro tightening and the global recovery. We maintain our positive view on the market over the next 12 months as valuation remains attractive from a long-term growth perspective. This is a good opportunity to accumulate quality stocks for the mid-long term as we remain upbeat on the Chinese economy.
Nevertheless, higher than expected or prolonged inflation is a key risk that we would have to monitor on an on-going basis."
Sherene Ban, Client Portfolio Managerin, "JF China C Acc USD" (29.03.2011): "Both A & H Share valuations look attractive after their underperformance in 2010. Among the significant underperformers were policy-constrained sectors including banks and properties, where we believe many uncertainties have been priced in as the government’s tightening policies have been proactive. Risks include government policy, inflation and the direction of monetary policy.
Although continued policy risks remain challenges, both banks and properties have been market laggards with undemanding valuations. Banks are trading at below 10x PE and 2x book with ROE closing to 18-20%, while properties are being pricing in at a 30-50% discount to their NAVs. We see these 2 sectors as an opportunity.
There are also worries of growth deceleration as China is rebalancing towards a more domestic demand-driven economy, but we see a slim chance of an abrupt slowdown.
Over the past few quarters China’s domestic economy has emanated strong momentum, a clear vindication of the government’s determined reform of income distribution, along with existing overhauls to medical care and increasing wages across sectors. Our prediction is that Chinese growth would be 9-9.5% for 2011 and average 8-9% a year over the next five years, with consumption and infrastructure spending the primary drivers."
Question 3:
e-fundresearch: "Please define your investment universe and what are the most important elements in your investment process."
Magdalena Miller, Fondsmanagerin, "Standard Life IG SICAV China Equities A" (30.03.2011): "Our universe includes all HK or overseas listed Chinese companies with a market capitalisation of at least $500m. The most important elements in our investment process are, firstly our ´Focus on Change´ investment philosophy and secondly, our focus on under researched, under-valued mid-cap ideas. Our fund is a highly concentrated fund of around 30-40 stocks with over 25% of the portfolio in companies which market capitalisation are below U$5bn. Our out-performance is mainly generated from these mid-cap names."
Mark Mobius, Fondsmanager, "Templeton China I (acc) USD" (29.03.2011): "Our investment strategy employs a ground-up, long-term approach based on analyzing companies’ fundamentals, and we look at a wide range of criteria to evaluate a company, including earnings, asset value, growth and cash flow potential. Portfolio inflows during the period and our search for attractively valued stocks led us to increase the fund’s investments in coal and consumable fuel producers, automobile manufacturers, diversified banks and food retailers. We also selectively made purchases in industries such as construction materials, industrial machinery, integrated oil and gas, and diversified metals and mining."
Martha Wang, Fondsmanagerin, "Fidelity Funds - China Focus A-USD" (30.03.2011): “The investment universe of FF China Focus fund focuses on China through investments in Chinese securities listed in China and Hong Kong, as well as securities in non-Chinese companies, which derive a significant portion of earnings from China.
As a bottom up stock selection house, the most important element in our investment process is meeting the companies and generating ideas for the portfolio from the fundamental analysis of the companies. Our investment process ensures that our ideas are backed up by our own internal research and analysis before we make our investment decisions. Our depth and width of research pool as one of the biggest buy-side research house gives us the edge to our investment decision making process.”
Louisa Lo, Fondsmanagerin, "Schroder ISF Greater China I Acc" (25.03.2011):
Overweights (%)
Jardine Matheson Holdings 2.4
Hon Hai Precision Industry 2.0
China Mobile 1.9
Wing Hang Bank 1.6
Shenguan Holdings 1.6
Underweights (%)
Bank Of China -2.4
Hutchison Whampoa -1.8
HTC -1.8
Hong Kong Exchange &Clearing -1.6
China Petroleum & Chemical -1.2."
Christina Chung, Fondsmanagerin, "Allianz RCM China – A – USD" (30.03.2011): "Our investment universe includes all in Hong Kong listed Chinese stocks with a minimum market cap above 100 mn US$. Stock voting is the most important element of the investment process."
Bin Shi, Fondsmanager, "UBS (Lux) Eq Fd – Greater China (USD) P-acc“ (30.03.2011): "The fund’s assets are broadly diversified and allocated to China (roughly two-thirds). However, investments are also made in Taiwan and Hong Kong to further reduce risk and exploit wider opportunities (roughly one-third). The fund can also invest in the restricted Chinese A-shares market, which has the largest investment universe.
Stock picking is a key element in our investment process. Though we utilize both external and internal resources, we are very focused on our internal research to maintain a competitive edge. We conduct intensive bottom-up research to look for companies that are positioned to ride out or even strengthen their positioning against an uncertain macro backdrop. We try to take advantage of valuation anomalies created by the volatile swings in market sentiment by focusing on long-term discounted cashflows. As such, the majority of added value (70%- 80%) is expected to come from stock selection."
Sherene Ban, Client Portfolio Managerin, "JF China C Acc USD" (29.03.2011): "Our universe includes stocks listed in China and deriving a significant portion of earnings from China. We employ a bottom up stock selection process, backed up by country specialists on the ground conducting company visits."
Question 4
e-fundresearch: "Which over- and underweight positions are currently implemented in China or Greater China funds?"
Magdalena Miller, Fondsmanagerin, "Standard Life IG SICAV China Equities A" (30.03.2011): "We are overweight in Healthcare and Consumer Discretionary. Growth is still underestimated by the current valuation and there are companies that are emerging to be global champions (not just feasting on domestic growth). We are underweight in Financials and Materials. Mammoth companies within these sectors are unlikely to surprise as they are well researched and well understood by the market. Their corporate behaviour is very much subject to government policy."
Mark Mobius, Fondsmanager, "Templeton China I (acc) USD" (29.03.2011): "We continue to focus on the two C’s: commodities and consumers. We generally have a significant weighting in commodity companies, such as those related to energy, mining or agriculture, since we expect commodity prices to continue a long-term upward trend, driven by continued demand and relatively inelastic supply, although there will likely be volatility along the way. In terms of consumer-related sectors, we look in areas related to consumer products such as automobiles and retailing as well as consumer services such as finance and banking.
With a consumer base of 1.3 billion people, China has seen consumerism flourish. Domestic demand is likely to play an even more important role in the future as growth in developed markets is expected to be much lower and fraught with fiscal challenges. Growth in domestic consumption is likely to be driven, and hopefully sustained, in two ways: rising per capita income and, more importantly, the maturing of a young, working population, which will be reaching the most productive years of their lives. Rising per capita income and strong demand for consumer goods and services appear to indicate a positive earnings growth outlook for stocks in related sectors."
Martha Wang, Fondsmanagerin, "Fidelity Funds - China Focus A-USD" (30.03.2011): “In the FF China Focus Fund, I have structural overweight positions in Consumer sectors and consumer IT names as well as other consumer related themes across the portfolio, while maintaining underweight exposure to those industries with high government intervention and regulatory risks such as financials, telecoms and energy sectors. My fund focuses on domestic development themes such as the 12th Five-Year-Plan and China’s long-term structural growth story and life-style changes in Chinese population. I currently favor the companies that benefit from China’s plans to create new strategic industries such as cement, building products, construction and machinery names. I am increasingly supportive for those companies that would benefit from government’s initiative to narrow the income gap for the middle income groups.”
Louisa Lo, Fondsmanagerin, "Schroder ISF Greater China I Acc" (25.03.2011): "The Fund implements rigorous active risk management."
Christina Chung, Fondsmanagerin, "Allianz RCM China – A – USD" (30.03.2011):"We overweight Industrials, Technology, Consumer Discretionary, underweight Telecom, Financials and Energy."
Bin Shi, Fondsmanager, "UBS (Lux) Eq Fd – Greater China (USD) P-acc“ (30.03.2011): "Overall, the fund is overweight China as we see more dynamic opportunities at attractive valuations. Fund is neutral on Hong Kong but we are focused on selective names that can benefit from domestic China market. The fund has an underweight position in Taiwan but will focus on sectors which will benefit from improved cross-straits relationship.
On a sector level, we prefer domestic demand driven stocks and remain positive on Consumers and Health Care sectors as mid to long term growth outlook remains intact. The consumption theme is predicated on the government’s persistent efforts in promoting domestic consumption as well as the presence of strong structural drivers such as favourable demographics, urbanization trend, under-leveraged population with rising disposable incomes. Great upside potential exists given low penetration ratio and better affordability. Recent robust retail sales data suggest that the structural change in Chinese economy is taking place. Over the medium term, we expect to see changes in spending pattern, towards more spending on higher end products, as well as industry consolidation. Healthcare and social security spending is also a key area for Chinese government to stimulate domestic consumption given its low level in the global context amid an aging population.
On the other hand, we are underweight in defensive sectors such as Utilities and Telecoms, whose growth is expected to be relatively low compared to other sectors which can benefit directly from the country´s economic growth. We remain selective in the Financials, Property and Cyclicals sectors but will focus on growth-oriented companies with reasonable valuation."
Sherene Ban, Client Portfolio Managerin, "JF China C Acc USD" (29.03.2011): "We are overweight consumer discretionary, healthcare and property, while maintaining an underweight in telecoms."
Question 5
e-fundresearch: "Please comment on the performance and risk parameters of your fund in the current year as well as over the past 3 and 5 years."
Magdalena Miller, Fondsmanagerin, "Standard Life IG SICAV China Equities A" (30.03.2011): "The Standard Life Investments China SICAV Fund has returned 20.9% over the last 12 months (ending February 2011) compared to an index return of 9.7%. The tracking error is 3.1, giving an information ratio of 3.28. Over the past 3 years, the return was 17.7% compared to an index return of -6% and for 5 years, the fund returned 305% compared to an index return of 111%. The tracking error was 5.03 over 3 years and 6.15 over 5 years, producing an information ratio of 1.5 and 1.3 respectively. We achieved top quartile performance in our peer group over 1,3 and 5 years. Standard Life China Sicav Fund has been generating excellent, consistent returns with good use of risk. All numbers are in US$, which is the base currency of the fund."
Mark Mobius, Fondsmanager, "Templeton China I (acc) USD" (29.03.2011): "For the three months ended 28 February 2011, FTIF Templeton China Fund returned net -1.17% in U.S. dollars. Performance was led by the energy sector but curbed by weakness in the consumer-related and industrials sectors.
The commodity-related energy and, to a lesser extent, materials sectors contributed positively to performance for the reporting period. Returns were supported by large positions in oil, gas and consumable fuels producers within the energy sector as well as select metals and mining firms and construction material suppliers within the materials sector. Commodity prices continued to gain substantially through the three-month period, driven by geopolitical uncertainty in North Africa and the Middle East as well as rising demand from fast-growing emerging markets and a weaker U.S. dollar. The Reuters/Jeffries CRB Index (CRB) of 19 key global commodities extended its rally to a record high in early February, with individual prices of oil and metals such as copper, silver, aluminum, platinum and palladium continuing upward to new highs.*** For example, the price of oil crossed the psychological US$100/barrel level in January, and the price of copper beat its previous January high to settle at a new record level on 14 February 2011.**** Commodity price strength sustained over several months allowed many commodity-related companies to report strong results, increase productivity and embark on new ventures, which further boosted their stock prices.
In the information technology sector, performance was buoyed by positions in Internet companies, semiconductor firms and computers and peripherals makers. Internet companies raised prices and boosted services such as video sharing to add users and counter competition—according to the government, China has more than 450 million Internet users, who are downloading more content using their mobile phones as wireless network speeds increase. Meanwhile, select firms in the semiconductor industry reported better-than-expected earnings for the fourth quarter of 2010 and increased capital spending to record levels in anticipation of higher sales of tablets and smart phones, which could drive semiconductor demand. Elsewhere, individual contributors to performance included a transportation infrastructure company, a machinery firm, a diversified telecommunication services provider and an electric utility.
In contrast, investments in the consumer staples, consumer discretionary and financials sectors detracted from performance for the three-month period, hurt by a spike in global risk aversion, worries about the impact of rising inflation and concerns about the effect of measures to prevent economic overheating. Fund holdings that weighed on performance included food products firms and food retailers within the consumer staples sector; distributors, apparel makers and auto firms within the consumer discretionary sector, and commercial banks and insurers within the financials sector.
Positions within the industrials sector also weighed on performance, especially industrial conglomerates, makers of electrical equipment, shipping companies and machinery manufacturers. Elsewhere, notable individual detractors from performance included a coal producer and a wireless telecommunication service provider."
*** Source: Commodity Research Bureau, February 2011.
**** Source: London Metals Exchange.
Martha Wang, Fondsmanagerin, "Fidelity Funds - China Focus A-USD" (30.03.2011):
“The fund outperformed MSCI China benchmark for the 1 year, 3 years and 5 years periods. Although the fund is not bound by the benchmark tracking error range, the fund is managed with awareness to the benchmark. The ex-ante tracking error for the fund as at 28 February 2011 was 4% and the tracking error usually ranges between 3-7% for this fund. Looking at the performance in the last one year (ending 28 February 2011), positive stock selection in the financials (underweight property and Chinese banks) added to relative return, stock selection in information technology sector, in particular to high conviction positions in China internet related names SINA corp, Tencent, Baidu added to the relative return. Also added are some of my materials positions, such as Zhaojin Mining Indust (Chinese gold mining company) and China Resources Cement added to the positive contribution.
Over the last three-years period (ending 28 February, 2011), my overweight stance in industrials (China Comms Construction (construction and design of infrastructure and heavy machinery manufacturing) & China Cosco Holdings (Marine cargo transportation service), IT (Tencent (Chinese facebook equivalent and online games) & ZTE Corporation (Chinese telco equipment)) and Consumer Discretionary (Dongfeng Motor (luxury sedans), Belle International Holdings (women’s shoes)) names added to the relative contribution.
Over the last five years my underweight stance in financials has helped my performance (UW Bank of China, OW Ping An Insurance) while some of my key positions in IT (Tencent), selected positions in materials (Anhui Conch Cement) and Consumer Discretionary (Dong Feng Motor) added to the relative contribution.”
Louisa Lo, Fondsmanagerin, "Schroder ISF Greater China I Acc" (25.03.2011): "As inflationary pressures continue to build, persistent monetary tightening by authorities across the region will make 2011 a tricky year for Greater Chinese economies and equity markets. The rate of economic growth is likely to ease off this year but, overall, we remain positive on the progress of the country’s growth prospects. In particular, we are likely to see an improvement in the quality of Chinese economic growth in the medium term as the government’s five-year plan is putting the right emphasis on changing the country’s structural growth model from investment driven to consumption driven. The regional growth story will remain a strong driver of performance for domestically orientated names. Overall, we believe the market is fairly valued and, although there is room for a correction, we are poised for equity market performance to improve into the end of the year. We continue to look for opportunities to build positions in sectors we favour including consumption, clean energy, healthcare and capital goods."
Christina Chung, Fondsmanagerin, "Allianz RCM China – A – USD" (30.03.2011): "The long term performance of the fund has been compelling (22,78 vs 20,63% pa in 5 yr bracket and 6,55% vs 4,68% pa in 3 yr bracket). The typical T/E range is 5-10% p.a. YTD Feb, the fund slightly underperformed the benchmark by 2 per cent."
Bin Shi, Fondsmanager, "UBS (Lux) Eq Fd – Greater China (USD) P-acc“ (30.03.2011):
"1Y to Feb 2011
Our fund underperformed over the past year, mainly due to the underweights in Hong Kong and Taiwan. Underweight in Telecoms sector also contributed negatively. At a stock level, the overweights in China Mengniu Dairy and Ports Design were among the largest detractors. On the other hand, positive stock selection in China, mainly driven by the overweights in Huabao International, Anhui Gujing Distillery and Inner Mongolia Yitai helped performance.
3Y and 5Y to Feb 2011
The China economy and market rebounded quickly after the 2008 financial crisis on the back of the government´s stimulus package and loose monetary policy. Our fund outperformed in this period mainly due to our China-focused strategy while underweighting Hong Kong and Taiwan. In terms of sector allocation in China, overweighting consumer staples and consumer discretionary, while underweighting telecoms and financials contributed the most to our strong performance.
Active risk has been around 5-7% over the past five years."
Sherene Ban, Client Portfolio Managerin, "JF China C Acc USD" (29.03.2011): "We have outperformed by 1.27% net of fees over 5 years with a 3.84 tracking error. For 2010, we ended the year outperforming by 0.07% net of fees."
Alle Performance Daten per 22.03.2011:
