Category: Money tips Release Date: 2006-06-30
Rapid rise and rapid decline in so many investors to fully understand the "roller coaster" the taste, many fund companies have issued equity funds in order to win the biggest bull market gains. The foreign shareholders of the world's largest fund managers with capital preservation is one of KBC Asset Management Limited (KBC AM) of the dollar KBC fund management companies have a better chance of seeing and are seizing the introduction of a capital preservation fund, our staff reporter Yi-Qiang, general manager interviewed.
"China Business": the foreign mature markets of the capital preservation fund will need to use financial derivatives to hedge risks, you have at this time whether the introduction of a capital preservation fund the upcoming stock index futures-related?
Yi-Qiang: We launch of stock index futures will be used when the number of operations to risk hedging. At present we are still using portfolio insurance (CPPI) model of capital preservation investments, such a combination of capital preservation investments are mainly in China stocks and bonds, plus cash, investments by these three kinds of combinations of different proportions to achieve capital preservation.
"China Business": Since the security of the Fund's investment assets, include only the assets and income security of the assets of two parts, this will not affect the final revenue Preservation Fund?
Yi-Qiang: return will not be affected too much impact, we invest in the stock proportionally far greater than the similar products, the maximum can exceed 50%. Most people may not understand. Because the domestic capital preservation fund set relatively low proportion of equity investments, the lowest is 15%, others average about 30%.
"China Business": Why dare to be so high?
Yi-Qiang: The reason why we dare to cast such a large proportion is based on the technology, knowledge and confidence. For our protection of this technology, practice and experience, so that we believe that this ratio could be more than 50%, and, in theory, the stock position to 90% is possible.
"China Business": dollar ratio of investment in KBC's shares will be more than 50% do?
Yi-Qiang: Up to more than 50% of the initial ratio may be set at 20%, depending on how the investment performance of the fund to be determined.
"China Business": Is it Preservation Fund in the Jiancang an initial period of the stock investment performance of the operation of the future will produce relatively large impact?
Yi-Qiang: Yes, the Capital Preservation Fund a position in the most important period. If Jiancang timing was not right, but to most of the funds invested in fixed income, so that would affect earnings. If you have just started to do better, probably later into an ascending channel. Done well, though not at a loss, but not so high returns. Proceeds with the beginning of good and bad stock investment performance has a lot to.
"China Business": The market is now at a sensitive stage, whether this is the better Jiancang period? How the new foundation Jiancang?
Yi-Qiang: We have a simulated portfolio. In the "5.30" crash when we come to a conclusion, if the dropped 3700 points, Opening 5%, fell to 3400 points, plus 10%, if the investment fell to 3000 points on the ceiling to reach 60%. This is the institutional investors, individual investors, with the idea of the different operations.
"China Business": 4000 points, is relatively high above the Jiancang?
Yi-Qiang: I think it is quite reasonable, and can not look at the broad market index.
"China Business": In mature markets, the Capital Preservation Fund the proportion of market share, about how much?
Yi-Qiang: In the United States very few in Europe, 12% ~ 15%, Belgium, Germany, France, close to 20%, while in our country is still relatively small. Specific circumstances, in the bull market Bulgaria Fund will not sell very good, good selling in a bear market. But in fact this was also product development and launch of the product characteristics of the. For example KBC AM's market share started to decline from 2005, but later in a bull market launch of the Capital Preservation Fund, when the return to investors 20% gains. Therefore, according to a bear market, bull market in different circumstances, a reasonable adjustment of capital preservation products.
"China Business": the last two years, and there are no other capital preservation funds high yield funds, how can we allow investors to accept the Capital Preservation Fund?
Yi-Qiang: In fact, the market can speak for themselves. Capital Preservation Fund, the European market rate of return of 30% to 50%, in China, has not been achieved. However, rates of return can not be entirely from the point of view, because the capital preservation funds have a bottom line, other products are not the bottom line. Equity fund returns in the -50% to 50%, while the Capital Preservation Fund is 0 ~ 25%, it is not only by investment income from a comparison can only be appropriate product corresponds to the appropriate people.
