Fund China

From: “China Securities News”
Compiler: Fund China

Three models of selected investment regional

Moderator : QDII fund is invested overseas market, analysis of the current global stock market opportunities.

Xie Weihong : Generally speaking, we believe that the current global economic growth cycle is upward, this trend is very worthwhile to invest more in global investment, which is why we actively launch QDII products reasons.

The difficulty we face is the global market is so big that so many countries and regions, we should put the money where? This is what we should think about. We are particularly concerned about three models : Value model, revenue models and the trend model summing up the three points compared to the case in all markets, then we think good choice of the market. Simply put, Value Model profitability and market value / net, these indicators are the focus of our consideration; profit is the model we all markets resumption of the earnings do a comparative analysis done a judgment; trend model, we believe that the current growth momentum is sustained, the strength and direction into one. Taking these three goals we can be a strategy to be very clear decision.

Moderator : through value, revenue and the trend of scoring?

Xie Weihong : Yes, we basically use the scoring table will, the combination can clearly see which one of the market do what the distribution. Integrated considerations, the United States and Hong Kong is our fund holders of a large number of the stock market, which is the developed market considerations. In addition, Switzerland is also very concerned about the market.

Moderator : For developing markets judgment is not also used this model to do some analysis?

Xie Weihong : Yes, at this stage we think South Korea is a worthwhile investment market.

Moderator : South Korea’s current reserve status with the Asian market relatively large gap?

Xie Weihong : it is relatively low. It will not help with the domestic market compared to, because development of the market not the same. Currently, in the whole Asian market, we can see that the price-earnings ratio of 10 to 15 times are good investment opportunities, South Korea has a lot of opportunities we can find.

The dispersion of pooled investment

Moderator : You tend to concentrate investments or decentralized investment?

Xie Weihong : I started in 1994 overseas investment, 2007 left Taiwan Sunbeam Fund to the (China) Southern with a record. I managed Japan Fund the first quarter of 2007 achieved very good results in Taiwan, the Japan Fund is ranked first. Looking at the world, the Lipper Fund ranked in the scope of global 244 in Japan Fund, we ranked fifth.

If centralized or decentralized to make an assessment of the case, I tend to spread, but it should be said that I was the type of mixed. I attach great importance to spread the risks, we expect the investment return before the most is the need to consider the risks. But we invest in individual subject, we can use the visit by the company, including data analysis, on the future trend of careful study, and in this regard we do in individual companies is very deep, these companies will increase investment.

Moderator : I would like to know what your investment overseas markets to determine how to invest varieties? Mention a few classic cases.

Xie Weihong : fundamental analysis is very important, then mix quantified analysis of the model, so we do a distribution can be a relatively low risk, high returns. Our investment this year in Japan a particularly good record because, Japan’s long-term investment in a very good game of the manufacturing companies — Nintendo. The company had in 2006 before the market for some time without attention. Why the concern this company? We are particularly concerned because the fundamentals of the industry research and analysis, we found a very good opportunity, in 2006 they introduced a new handheld console, we analyzed the marketing situation is indeed especially good. Secondly, we found the second half of 2006 he will introduce a revolutionary new product, called “WII”, Although the game was not yet complete, but we see a brand new game concept. We are very successful in February 2006 investment, we have not short-term operation, I believe the value will gradually be reflected in the market, I believe there will be a good investment returns. If from now the de facto Looking back, and now is the 433% increase.

Moderator : similar to this stock, its market capitalization accounted for is the ratio?

Xie Weihong : we must consider, even the best stock can not exceed 10%, it is our investors to set down. In 2006 its share was 6%, and later has reached 8% -9%, it is because they rose too soon. instead we have to increase the share. Not only the stocks in our investment in this study, there are seven to eight such investments are subject to and scattered in our investment portfolio, this is safe, we have to generate income investors a good way.

Copyright Fund China 2008.

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