Fund Objective

The Fund's investment objective is to provide long term capital growth by investing at least two thirds of its total non-cash assets in a well diversified portfolio of equities and equity related securities of companies which have their registered office in, and with an official listing on a major stock exchange or other regulated market of the People's Republic of China ("China"), including Hong Kong SAR, as well as those companies which carry out a predominant part of their business activities in China.

View on Past Performance

The US financial crisis and the potential fallouts of European financial institutions weighed down the market. HK was the best performing country whilst China was the worst. Utilities were the best performing sector while the consumer staple sector was the worst.We stayed away from small caps, and switched to large cap and liquid stocks with strong balance sheets. Our underweight in China and overweight in Taiwan added value. Our underweight in the financial and industrial sectors added value, but overweight in the consumer discretionary sector detracted value.

Future Expectations

Local economies are likely to deteriorate further given the tight liquidity conditions and global economic downturn. The market is unlikely to see a meaningful recovery despite attractive valuation. We shall continue to adopt a defensive strategy, and stay with big caps with solid balance sheets.

Fund Details