Guotai Jinma Stable Return Securities Investment Fund

Profile
Transaction code: 020005
Date of establishment: June, 18, 2004
Size: 3 billion
Type: Contract type open-end
Fund trustee: China Construction Bank
Accounting firm: PRICEWATERHOUSECOOPERS Zhong Tian Accounting Firm

Investment Conception
Study and find value, adhere to the fundamental layer analysis and value investment

Fund manager’s comment
We think that although the overvalue of the A-share market will continue to face the pressure from the international connection, yet the four-year adjustment, the investment attraction for the domestic A-share market has risen a lot, part of the listed companies already is provided with the absolute investment value even in the international context. Jinma Fund will focus on two aspects in the industrial selection: 1. The bottleneck industries of the economic development: such as the primary energy and transportation, especially the listed companies with the feature of natural monopolization; 2. The industries with continuous increase potential, most of which are the downstream consumption concerned industries; such as food, drink, textile, papermaking, network service, etc.

Investment Objective
The fund is to achieve persistent long-term growth in terms of rational assets allocation of equities, bonds and cash and the phenomena of dynamic macro-economy development in china. By aiming to obtain the resulting profit, the fund is invested in such industries and public companies that either had significant contribution to the presence of GDP growth or were apparently benefit from GDP rapid growth.

Investment Strategy
It is adhere to the philosophy that valuable investment is endowed with investment returns from investment opportunities on bullish prospect of industries such as consumption service, finance and real estate, information technology and equipment manufacture. Meanwhile, the fund tries to gain profit by seeking investment rising from enterprises reconstruction and resource reevaluation as well as the flexible investment strategies conducting.

A Bond investment is to actualize a positive bond portfolio management mainly on the basis of long-term interest rate tendency, medium to short-term economic cycle, macroeconomic policy direction and yield curve analysis. The fund assets’ stock assets investment is 40%-95%, bond assets investment is 0-55%, and cash or government bond maturity within one year is no less than 5%.