Guotai Jinlu Principal Guaranteed Value Added Securities Investment Fund

Profile
Transaction code: 020008
Date of establishment: April 28, 2006
Size: 1.08 billion
Type: Contract type open-end
Fund trustee: Bank of China

Investment objective
This fund aims to appreciate the funds’ asset on the premise of principal safety by the end of the period.

Investment strategy
The fund adopts a strategy on the basis of a combination of Constant Proportion Portfolio Insurance technology and Option-Based Portfolio Insurance technology. The principle safety is guaranteed by quantitatively asset allocation. The potential loss of the portfolio can be hedged by fixed-income securities while the fund makes profit from the investment into convertible securities.

In its recent half year report(2007), It is indicated that Minmetals Development Co.,Ltd. ZTE Co., Ltd., Ping An Insurance (group) Co., Ltd. Industrial Bank Co., Ltd., Zhejiang Wolong Hi-Tech Co., Ltd., Henna Shuanghui Investment & Development Co., Ltd., China Unicom Co., Ltd., and China Merchants Bank Co., Ltd. were specially focused on made the large contribution to the increase of net value.