GUANGZHOU (Fund China) – It is learnt today that Guangfa Fund Management Company’s 9th fund, Guangfa Core Enhanced Equity Fund has been approved to be issued by the China Securities Regulatory Commission. And the fund will be available in Industrial and Commercial Bank of China and other major banks.

The funds is an equity fund whose share asset take up 60 to 95 percent of total asset and cash asset, bond asset and share option asset take up 5 to 45 percent of total asset. Besides, the market value of its share option shall not exceed 3 percent of its net asset value. And the proportion of cash and government bonds within a year shall not be less than 5 percent of the total asset.

The fund uses the strategy of Core and Satellite. The share asset will be divided into two parts. One is called Core Asset which will use 80 percent share asset to invest in 300 constituent stocks in Shanghai and Shenzhen. Another is called Satellite Asset which will use 20 percent share asset to invest in the hot market so as to increase the revenue rate.

Copyright Fund China 2009.

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