How does JFam coHow does JFam company help you ampany help you accumulate fortune?ccumulate fortune?

043038 Yeung Pui Yam043038 Yeung Pui Yam043048 Chau Tsz Yan043048 Chau Tsz Yan

043053 Wong Ka Wing043053 Wong Ka Wing043063 Lo Ka Yan043063 Lo Ka Yan

043078 Chan Cheong Kan043078 Chan Cheong Kan

Background of JFBackground of JF

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

•over 660 investment professionals located in 40 locations worldwide.

•original research•company visits

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 & Poor’s

Offshore Fund Awards

JF India JF India FundFund

JF India FundJF India Fund

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

- High risk fund

- Trust Deed dated 23 November,1989

- Terminated on 22 November, 2089 - Trustee : HSBC Institutional Trust S

ervices (Mauritius) Limited

Investment ObjectiveInvestment 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

Allocation of funds(as at 31.10.Allocation of funds(as at 31.10.06 ) 06 )

Computation of Computation of the India fund’s the India fund’s

returnreturn

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

Year Management charge (Average NAV * 1.5%)

1996 22.475*1.5% = 0.337125

1997 25.03*1.5% = 0.37545

1998 23.075*1.5% = 0.346125

1999 35.89*1.5% = 0.53835

2000 54.75*1.5% = 0.82125

2001 38.135*1.5% = 0.572025

2002 28.435*1.5% = 0.426525

2003 42.32*1.5% = 0.6348

2004 62.38*1.5% = 0.9357

2005 89.705*1.5% = 1.345575

Charge (Charge ( 收費收費 ))For each share,Initial ( 認購費 ) 5% of NAV

21.39*5% =1.0695Redemption ( 贖回費 ) 5% of NAV

109.68*0.5% =0.5484Management fee ( 管理費 ) 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

AssumptionAssumption• 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

• The sum of management fee, initial fee & redemption fee for ten years investment:6.332925 +1.0695 +0.5484 =$7.950825 per share

• The total charges of 93 share of India Fund:$7.950825 * 93=739.43

∵The NAV differences from 1996 to 2005109.68 - 21.39=88.29

∴The total return of investing $2000 at Jan. 199688.29*93= 8210.97

The net return after charging the fees

$8210.97 – $739.43 + $20.96(which is the excess from buying 93 JF fund)

= US$ 7492.5

DesignerDesigner of mutual funds of mutual funds• According to different objective of

investment>>> e.g. long term capital growth e.g. Stable income stream• According to the rapid change of

market>>>Brazil, Russia , India , China (Fund

of BRIC)

Flexible, accurate, quick to Flexible, accurate, quick to designdesign

• 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

• 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

Why Why select JF asselect JF as

Your Choice?Your Choice?

Basic ReasonsBasic Reasons• Well established reputation>> over 30 years JF Asset Management is part of JPMogan Asset Management

• Extensive global investment resources>> 660 investment professionals located in 40 locations worldwide

>>>>excellent performance recordexcellent performance record<<<<

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

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%

Fund Awards and ratingFund Awards and rating• 2002 South China Morning Post Fund Manag

er 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 stars:

5)e.g. JF India , JF ASEAN

  Hang Seng “Currency-Linked Capital Protected Investment Deposit “

JF India fund

Return Guaranteed minimum returnE.g. Max :5% p.a., Min :2.8%p.a.

No guarantee returnNo 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.

Comparison of financial Comparison of financial productsproducts

Con’t

Comparison of financial products Comparison of financial products (con’t)(con’t)

MinimumInvestment

HK $500,000 US$ 2000 ~(HK$15,600)

Fee No management feeNo handling fee

1.5 % management fee5% subscription fee0.5% redemption fee

Risk Foreign exchange risk

relatively low

Risk of unstable stock market

relatively high

Risk Factor !!!!Risk Factor !!!!

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

Risk Factor !!!! (con’t)Risk Factor !!!! (con’t)2. Currency risk

India 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$

Risk Factor !!!! (con’t)Risk Factor !!!! (con’t)3. Diversification risk

India fund’s investment is all invested in India market.

4. Hedging riskHedging technique consist certain risk.

Thank You !!Thank You !!