How does JFam company help you accumulate fortune?

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How does JFam company help you accumulate
fortune?

• 043038 Yeung Pui Yam043048 Chau Tsz Yan043053
  Wong Ka Wing043063 Lo Ka Yan043078 Chan
  Cheong Kan

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Background of JF

• JF Asset Management
• Invest across 4 regions
• 1) Asia
• 2) Europe
• 3) Japan
• 4) the US

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• over 660 investment professionals located in 40
  locations worldwide.
• original research
• company visits

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• Numerous performance awards and high ratings from
  independent agencies.
• E.g.
• - 2001- 2005 South China Morning Post Fund
  Manager of the Year
• - 2002- 2005 Standard Poors Offshore Fund
  Awards

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JF India Fund
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JF India Fund

• the first open-ended India fund to be authorized
  in HK
• High risk fund

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• Trust Deed dated 23 November,1989
• Terminated on 22 November, 2089
• Trustee HSBC Institutional Trust Services
  (Mauritius) Limited

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Investment Objective

• long-term capital growth through a portfolio of
  securities linked to the Indian economy.
• also invest in derivatives such as forward
  contracts, options, warrants and futures

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Allocation of funds(as at 31.10.06 )
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Computation of the India funds return
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Year NAV of the beginning NAVat the end The highest NAV The lowest NAV Average NAV
1996 21.39 19.80 27.56 17.39 22.475
1997 20.50 22.34 29.77 20.29 25.03
1998 22.55 20.14 26.01 20.14 23.075
1999 20.47 51.31 51.31 20.47 35.89
2000 56.63 37.42 74.16 35.34 54.75
2001 37.89 29.48 40.93 35.34 38.135
2002 29.71 28.78 32.27 24.60 28.435
2003 28.76 59.00 59.00 25.64 42.32
2004 60.67 76.49 76.41 48.35 62.38
2005 77.78 109.68 109.68 69.73 89.705
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Year Management charge (Average NAV 1.5)
1996 22.4751.5 0.337125
1997 25.031.5 0.37545
1998 23.0751.5 0.346125
1999 35.891.5 0.53835
2000 54.751.5 0.82125
2001 38.1351.5 0.572025
2002 28.4351.5 0.426525
2003 42.321.5 0.6348
2004 62.381.5 0.9357
2005 89.7051.5 1.345575
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Charge (??)

• For each share,
• Initial (???) 5 of NAV 21.395
  1.0695
• Redemption (???) 5 of NAV 109.680.5
  0.5484
• Management fee (???) 1.5 p.a.0.337125
  0.37545 0.346125 0.53835 0.82125 0.572025
  0.426525 0.6348 0.9357 1.345575
  6.332925

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Assumption

• The management fee is the average of the highest
  and lowest NAV in the year.
• The lowest price to invest in 1996 is same as
  now, USD2000
• Assume the Bid current price in Jan. 1996 is
  21.28
• Then we can get 93 units of JF India Fund

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• The sum of management fee, initial fee
  redemption fee for ten years investment6.332925
  1.0695 0.5484 7.950825 per share
• The total charges of 93 share of India
  Fund7.950825 93739.43

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• ?The NAV differences from 1996 to 2005109.68 -
  21.3988.29
• ?The total return of investing 2000 at Jan.
  199688.2993 8210.97

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• The net return after charging the fees8210.97
  739.43 20.96(which is the excess from
  buying 93 JF fund)
• US 7492.5

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Designer of mutual funds

• According to different objective of investment
• gtgtgt e.g. long term capital growth
• e.g. Stable income stream
• According to the rapid change of market
• gtgtgtBrazil, Russia , India , China (Fund of BRIC)

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Flexible, accurate, quick to design

• Money market funds
• Bond funds e.g. JF Asian total return bond
• Growth funds e.g. JF Greater China
• Global funds Specialized sector funds
• To satisfy different investor with different
  risk-tolerance
• First Hand Information!
• Because they are fund designer and producer, not
  agent

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• the fees, type of funds of different investment
  companies are almost the same !
• Fidelity Investments Management (HK) Ltd
• First State Investments (Hong Kong) Limited
• HSBC Investments (Hong Kong ) limited

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Why select JF asYour Choice?
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Basic Reasons

• Well established reputation
• gtgt over 30 years
• JF Asset Management is part of
• JPMogan Asset Management
• Extensive global investment resources
• gtgt 660 investment professionals located in
• 40 locations worldwide

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gtgtexcellent performance recordltlt
Name of fund Launch Date 3 Years 5 Years Since Launch
JF Eastern 01.02.71 67.8 123.2 17835.6
JF Pacific Securities 26.05.78 61.1 96.3 7893.5
JF India 23.11.89 212.1 465.3 1425.2
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Name of fund Cumulative performance of 3 month Cumulative performance of 1 year Cumulative performance of 3 years
First state Indian Subcontinent 22.4 52.1 177.3
HSBC GIF Indian equity Fund 21.1 56.1 179.5
JF India fund 23.4 64.1 212.1
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Fund Awards and rating

• 2002 South China Morning Post Fund Manager of the
  Year Awards
• e.g. JF Eastern, JF pacific securities
• 2006 Lipper Fund Awards Hong Kong
• e.g. JF Korea , JF Singapore
• Standard Poor's Fund Ratings (fund stars5)
• e.g. JF India , JF ASEAN

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Comparison of financial products
  Hang Seng Currency-Linked Capital Protected Investment Deposit JF India fund
Return Guaranteed minimum return E.g. Max 5 p.a., Min 2.8p.a. No guarantee return No upper limit (e.g. 23.4 of three month return)
Investment period Short timeTenor 3 or 6 month Long timeNo time limit, but early withdrawal is not suggested.
Cont
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Comparison of financial products (cont)
MinimumInvestment HK 500,000 US 2000 (HK15,600)
Fee No management fee No handling fee 1.5 management fee 5 subscription fee 0.5 redemption fee
Risk Foreign exchange risk ?relatively low Risk of unstable stock market ? relatively high
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Risk Factor !!!!

1. Political and social risks social political
   problem exist in India that have negative effect
   on India market e.g. India and Pakistans
   conflict

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Risk Factor !!!! (cont)

• Currency riskIndia fund is denominated in US
  dollar.The exchange rate between HK vs US or
  US vs Rupee is additional risk to investor.
• E.g.
• When you buy mutual fund HK ? US ? Rupee
• When you redeem mutual fund Rupee? US ? HK

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Risk Factor !!!! (cont)

• Diversification risk India funds investment is
  all invested in India market.
• Hedging riskHedging technique consist certain
  risk.

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Thank You !!