Jintai Securities Investment Fund

Profile
Transaction code: 500001
Date of establishment: March 27, 1998
Size: 2 billion
Type: Contract type closed-end
Fund trustee: Industrial and Commercial Bank of China·Investment concept
Discovering, persisting and long-term value

Fund managers comment
The structural feature of the market primarily reflected the changes and anticipation of macro-economy of china. Fund Jintai recognize the major features of the market on the whole at the earlier time and began to consciously improve the concentricity of combination, which caused the notable fall on the stock location and concentrated on the leading enterprises with strong cycle risk resistance step by step. Under the influence of the adjustment of the exchange rate system of RMB and the adjustment of relative industrial pattern, the industries with great attention are the non-trade ones whose asset value and profit proportion are likely to rise and the ones with more distinct superiority after the new exchange rate system forms, such as transport industry, paper industry and the electric equipment industry. It is demonstrated in 2007 half-year report that Henna Shuanghui Investment & Development Co., Ltd., Shanghai Pudong Development Bank Co., Ltd., CITIC Securities Co., Ltd, Sany Heavy Industry Co., Ltd. and China Merchant Bank Co., Ltd. were specially focused on made the large contribution to the increase of net value.

Investment objective
The investment objective of this balanced fund is to achieve a stable investment returns in long-term by investing on the value and growth-potential stocks on the premise of risk decentralization and risk evasion.

Investment Strategy
Investment strategy is decided in accordance with the macroeconomic environment and its impact upon the securities market; proportion of bond in investment portfolio lies on the diversification of monetary policy as well as the tendency of interest rates. Stock investments emphasis on in-depth studies of industry and regional economic development situation while specific stock investment portfolio is identified by the survey of listed companies.

The Fund will give priority to stock investment in medium and long-term. In terms of sufficient research managed to complete, key investment will devote most efforts to undervalue and growth stocks in order to stably appreciate fund’s asset.

The portfolio will nonetheless retain a certain proportion of short-term investment primarily on the basis of market fluctuation, discretionary decision-making and investment flexibility to appreciate fund in value on the premise of avoiding risks. In addition, to ensure fund’s assets liquidity and profitability, an appropriate proportion of both long-term and short-term government bonds will be maintained.