GUANGZHOU (Fund China) - Since the CSRC has approved, Guotai Golden Deer Guaranteed Fund (the second issue) will be issued on May 6. In 2008, this is the only one guaranteed fund that is approved to be issued.

In fact, the fund is a continuation of Guotai Golden Deer Guaranteed Fund. Guotai Golden Deer Guaranteed Fund was established in April 28, 2006. Its preservation period will be end on April 28 and then it will turn to Guotai Golden Deer Guaranteed Fund (the second issue). In the past two years, Guotai Golden Deer Guaranteed Fund successfully completed the mission of capital preservation and value-added. According to Galaxy Securities statistics, by April 25, the fund’s unit net has reached 1.489 Yuan and its cumulative net value is 1.514 Yuan. Meanwhile, the cumulative net rate of return is over 50 percent since the establishment. Because of the appropriate risk control, the company created substantial revenue for their investors.

Some experts said that now the total number of various types of funds is over 350, but the number of capital preservation funds is only 5, including one QDII capital preservation fund. Since its technical requirements of capital preservation is high and it needs powerful institutions to provide financial guarantees, coupled with the impact of the bull market over the past two years, capital preservation fund has been relatively scarce in domestic.

It is known that Guotai Asset Management Company is the only one company that manages two capital preservation funds at the same time. Besides Guotai Golden Deer Guaranteed Fund, the cumulative net rate of return in Guotai Golden Elephant Guaranteed Fund also reached 97.06 percent in its 3 years preservation period. During their operation period, the nets of the two funds have always been over 1 Yuan.

Copyright Fund China 2008.

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