From: First Financial Daily
Compiler: http://www.fundcn.org

The examination period, the Fund performance remains disappointing.

With June 2007 the last trading day of the end of the Fund in 2007 to hand over the period of examination results. According to the China Galaxy Securities Research Center Fund statistics, the past six months, 116 Equity Fund’s average net growth of 65.70%; 16 Index-Fund’s average net growth of 73.37%; 53 partial shares – Fund’s average net growth of 62.80%; 53 Balanced Fund’s average net increase of 62.80%.

“This is a pretty good report card.” If the performance of the Fund in 2006 as a reference point to more than half in 2007, the mandate of the Fund have completed half. 2006 full year, stock-fund net average growth rate of 121.41%; Index-Fund’s average net increase of 125.87%; Partial shares – Fund’s average net increase of 112.48%; Balanced Fund’s average net increase of 108.89%. A fund study said, it can be forecast, 2007 Fund hope to repeat 2006’s success.

But in early 2007 when made a rare global history of the very few high returns of the fund industry in China in the rush to disassociate and history. Fund companies market various important work of the Ministry is to reduce the fund holders are expected to return. “The performance in 2006 can not be reproduced”, “2007 will be ups and downs in the market,” “Fund in 2007 the expected rate of return is 20% ~ 30%,” so the discourse frequently appear in newspapers. Even then, this is also the supervision of funds an important sector of the work.

2006 is the first big bull market, the A-share market is rising trend of unilateralism, and in the long bear market earlier, The low valuation of the stock cheaper strewn everywhere. And the 2007 A-share market appeared bewildering, and the rapid adjustment of concussion, the relatively high valuation of units dangerous signal has enveloped the market, Fund managers have lamented, “It is reassuring to be hard to find cheap stocks.”

Fund to enhance the ability to earn the same time, the size of the fund is also increasing. 2006, the total fund amount to 800 billion, a net increase of the year in about 300 billion, In the first quarter of 2007, the total size of the already exceeded one trillion. with the second quarter of the new fund issued separate fund to dividends Placement, the Fund had a total increase significantly. Base increased, the total return on the scale is also increased. According to statistics, the first half of this year, the Fund’s dividend payments had already surpassed last year’s total.

This fund researchers noted that the Fund as a fiscal expert tools, but it should hold firm. 2006 stock-fund average of 120% If the 2007 Fund made a 120% return on average, through the Olympic Games in 2008 Dongfeng, Fund a 120% return, then held three years of fund holders will be over 10 times. But in fact, a quarter of this year, Shanghai and Shenzhen 300 Index from the beginning of 2073 points in the past quarter to the end of 2781, During redemption totaled 469.2 billion yuan, 500.6 billion yuan purchase amount. In other words, a large number of fund holders Fund during the exchange warehouses, but is left to redeem or switch to the new fund, to enjoy all the benefits of rising investor very little.

“Now investment, to hold a one – is commendable long-term investments. “many fund companies Markets said, Equity Fund in 2006, the average rate of return is 120% However access to the integrity of the holders of income, the proportion was less than 5%. ICBC Hangzhou channels Marketing Director Qin Hong, said : “Many investors in the rate of return at 20% on the choice of redemption.”

Copyright Fund China 2009.

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