Bank of China (Suisse)-managed Heritage Fund up +3.45% in June, +39.19% YTD, seeks to focus on China related securities

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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 reviewChinese 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 February combined. Urban fixed-asset investment climbed +32.9% YoY in May, the highest surge in five years.

For full story: http://www.opalesque.com/53842/Bank_of_China_Heritage_Fund_up842.html

Hong Kong Securities and Futures Commission’s half yearly review of the securities market shows economic recovery is emerging

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From Komfie Manalo, Opalesque Asia:
The Hong Kong Securities and Futures Commissioner has just released its latest research paper entitled: “Half Yearly review of the Hong Kong Securities Market” which shows that despite the recent strong rebound of the global stock markets, fundamental support to the surge in the stock markets has not been broad-based. Signs of economic recovery are emerging at best. The recent rally in the stock market seems to be underpinned by a strong capital inflow, but it should be noted that capital movements are known to be volatile and subject to sudden reversals.
According to the paper, since the trough in early March this year, major stock markets have rebounded some 30% – 60% until the end of June. However, it is worth noting that such strong rebound might not be uncommon following a crisis.
The report says that Hong Kong stocks fell at the start of the year on uncertainties over the global economic performance and concerns about financial institutions in the U.S. The Hang Seng Index (HSI) and Hang Seng China Enterprise Index (HSCEI) dropped to this year’s trough in early March. Later, markets rebounded strongly on optimism over global economic recovery amid signs of stabilization in economies. In addition, strong capital inflow to the Hong Kong banking system and stock market also lifted the markets. During the first half of 2009, the HSI and the HSCEI rose 27.7% and 38.9% respectively from their end-2008 levels.
Full story: http://www.opalesque.com/53590/Hong_Kong_Securities_and_Futures_half590.html