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From Komfie Manalo, Opalesque Asia:
The Heritage Fund-China Absolute Return was up 3.45% in June, and returned +39.19% YTD. In the fund’s June monthly report, the managers of HF China said they wanted to focus on long-term capital appreciation by investing primarily in China related securities (Hong Kong, H-shares, A-shares, B-shares, Taiwan, U.S., Singapore, and other listings) and in securities with significant exposure to economic developments in China.
The fund is managed by Bank of China (Suisse) Fund Management SA located in Geneva, Switzerland.
According to HF China’s managers, the fund fared well in June compared with the MSCI Golden Dragon Index which was down 1.1% for the month, and was up 34.5% YTD. By maintaining a high cash exposure in recent months (around 30% on average) to reduce volatility, HF China managed to keep its performance in line with the HSCEI Index and MSCI Golden Dragon Index. This shows that HF China’s stock-picking has been able to generate enough alpha to compensate for the 30% cash drag. As a stand alone equity portion, the fund’s stock-pick has substantially outperformed those indices.
China’s market review
Chinese economic fundamentals continue to steadily improve, as strong domestic demand offsets weak external demand. Industrial-output growth accelerated to 8.9% YoY in the first five months of the year compared with a collapse in output growth at 3.8% in January and Febru...................... To view our full article Click here
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