Fund Objective

This fund aims to achieve long term capital growth.

View on Past Performance

Global equity markets suffered a torrid month as liquidity tightened further in the aftermath of the failure of Lehman Brothers in September. Central banks around the world eased monetary policy aggressively. The People's Bank of China cut interest rates three times and also reduced the reserve requirement ratio for the banking system. Hang Lung outperformed as it benefited from a liquid balance sheet and Tencent continued to deliver strong results despite the economic slowdown.On the negative side, Dah Sing suffered in line with other small banks and Kingboard Chemical was a casualty of the sell-off in commodity shares. We bought Denway Motors, AU Optronics and Yue Yuen as valuations had reached compelling levels. We sold Mediatek on concerns about the impact of the liquidity crunch on its supply chain.

Future Expectations

We believe the Greater China economies will slow significantly in 2009. There are increasing signs that investors are capitulating which historically signifies a good time to buy. Valuations are starting to look attractive and we are buying selectively.

Fund Details