Presentation for

1
Presentation for National Press
Foundation Teh-Hsiu Fu CEO Everbright Pramerica
Fund Management Company Shanghai China June 8,
2007
2
Introduction of Everbright Pramerica

• Established in April 2004
• A joint venture between Everbright Securities
  Company, Ltd., a subsidiary of China Everbright
  Group and the investment management business of
  Prudential Financial, Inc.
• Everbright Pramerica has a registered capital of
  RMB 160 million with 67 by Everbright Securities
  and 33 by Pramerica.
• Current staff number at 59.

3
EPF Fund Family

• As of June 2007, the company manages four
  investment funds in China, i.e., Quantitative
  Core Equity Fund, Dividend Equity Fund, New
  Growth Equity Fund and Money Market Fund
• The fund assets were invested in the Chinese
  equity and bond markets
• Denominated in RMB, the funds were distributed
  primarily by banks and brokerage firms to Chinese
  investors
• The total AuM of the four funds were RMB 6.63
  billion as of May 31, 2007.

4
Market Background

• Economy
• The Chinese economy grew at a rate of around 10
  in the last few years, mostly driven by
  infrastructure investment and domestic
  consumption needs
• Real Estate
• The government launched several austerity
  measures in 2005-2006 to curb the overheating
  real estate market especially in Beijing and
  Shanghai
• Currency
• The government adopted a more flexible foreign
  exchange mechanism in July 2005 which prompted
  the RMB to appreciate from the previous level of
  8.27 to the current level of 7.65 to 1 US.

5
Recent Market Development

• The most significant transformation of the
  Chinese stock market was the reform program of
  state-owned shares which began in mid 2005
• Record number of retail investors flocked to open
  security trading accounts, providing fresh
  capital which lifted the Chinese equity market to
  record high
• Fear of market bubble led many institutional
  investors to reduce equity exposure in recent
  weeks.

6
QFII Update

• The Chinese government introduced the QFII
  (Qualified Foreign Institutional Investors)
  program in 2003 in order to allow foreign capital
  to invest in the Chinese market in an orderly and
  controlled manner
• So far, there were 52 approved foreign
  institutions to use the QFII quota to invest in
  China with an approved amount of USD 10 billion
• The government recently indicated that the total
  QFII quota will be increased to USD 30 billion.

7
QDII Update

• QDII (Qualified Domestic Institutional Investors)
  program was launched by selected banks, insurance
  companies and fund management companies with
  government approval
• The program allows Chinese investors to invest in
  offshore markets, with Hong Kong as the current
  focus
• Investor interest to invest in US or other
  international markets is modest at this stage due
  to the hot local equity market and the concern
  about the appreciating RMB
• Overtime, we expect that Chinese investors will
  be more interested in QDII products as experience
  in Hong Kong and Taiwan will demonstrate.

8
The Investment Grid
International Market
Chinese Market
Chinese Investors
International Investors
9
Fund Market Overview

• Chinas fund Industry has been developed since
  1997, and the first open-end fund was launched in
  2001
• Number of fund companies in existence 58
• There are 34 local companies and 24 joint venture
  companies, of which 4 are linked with domestic
  big banks
• Foreign partners of the fund companies include
  Prudential (US), ING, J.P.Morgan, Fortis,
  Invesco, Allianz, Paribas, Prudential (UK),
  UBS, Principal, Franklin Templeton, BMO, CSFB,
  SG, Deutsche, ABN AMRO, AIG, Merrill Lynch,
  Schroders, HSBC, etc.

10
Fund Market Overview

• As of March 31, 2007, there were 332 funds in the
  Chinese fund industry, with total assets under
  management of RMB 1,175 billion
• Total AuM of 41 close-end funds were RMB 185
  billion, accounting for 16 of total AuM
• Total AuM of 291 open-end funds were RMB 990
  billion, accounting for 84 of total AuM.

11
Fund Market Overview
12
Fund AuM 2002-March 2007
476
13
Open-end Fund Asset Breakdown
14
Discussion Points What global areas might
Chinas new investment fund be looking at?
Sectors
Regions
US Europe Japan Emerging Markets
Equities Bonds Money Market Real
Estate Commodities Hedge Funds
15

• Everbright Pramerica Fund Management Co.
• Address 46/F Bund Center, No. 222 Yan An Road
  (E), Shanghai, China
• Postcode 200002
• Tel [phone]
• Fax [phone]
• Websitewww.epf.com.cn