Category: Money tips Release Date: 2007-07-14
Not blind and benchmarking; daring to hold cash; good rest; to determine the value of regional investment In 2006, the economy is brisk, to see excellent growth prospects in emerging markets, many investors are still concerned about the goal. Last week, ABN Amro Asset Management head of emerging markets fixed-income investments Rapheal Kassin made a special trip to Shanghai to accept the "Daily Economic News" interview, and revealed his own "four major investment tips."
Emerging market bonds because of higher interest rates, but also a popular choice for those who risk appetite. Because the risk of emerging market regions than in developed countries, often with annual interest rate of 10% or even 15% of such interest rate, to attract investors. When such a region's economy to the good, the financial situation improved, the bonds can also benefit from the rating upgrade and currency appreciation, rising even more value.
Last year, the ABN AMRO Global Emerging Markets Bond Fund is among the best performance of similar funds. The Fund was awarded the Best Fund Lipper Performance Award for five years, and in Germany, Switzerland, Spain, Hong Kong, China and other places of the main fund rating agencies and the information provider's rankings, we have achieved first place. Fund was established in 1998, the current dollar investment portfolio of more than 1.5 billion, since the establishment of the average annual investment return rate of 21%.
Four Investment Tips
Kassin full-time management of the past seven years, emerging market bond funds, why can achieve such high returns? Kassin mince words, said he has four major investment "secret."
First of all, do not do blind comparison with the baseline. Fund managers are often very concerned about their own funds the gap between performance and benchmark, but Kassin has focused on identifying investment value. In his view, investment opportunities, consists of two elements: excellent fundamentals and cheap prices. In 2000, he had bought a large scale annual interest rate as high as 25% of the Venezuelan government bonds, the mainstream view is that when the market too risky, he thought that there is a strong oil economies do support the value of bonds in the country has not been fully reflected. Soon thereafter, the big make a fortune.
Second, are not afraid to hold cash. ABN AMRO Emerging Markets Bond Fund is now the cash ratio is 20%, which is similar funds is relatively rare. Kassin's view is that when someone has not found found in an investment opportunity, must have sufficient cash reserves. Earlier this year, the Fund had purchased massive Shigekura Argentina and the Philippines government bonds, less than two months, earned more than 8%. Now part of the investment has been cash in on investment opportunities are waiting for the next one to happen.
Rest is also a good Kassin's exclusive "secret." In this busy industry, he was a day of 8 hours of sleep to feel proud and stressed that a good rest in order to think well.
From the local perspective of a regional investment value make judgments, but also Kassin another experience.
Many people think that emerging markets, must be high-risk market, but as a Brazilian, Kassin in emerging market countries are more understanding of the situation. He would prefer to examine from the perspective of local people in a region that can be really valuable information. The next objective is to Indonesia
In Argentina and the Philippines later, Kassin's next, an investment objective? Although no specific plan, but he is optimistic about Indonesia's debt. Indonesia's economic fundamentals are not bad, but bond prices still low, the country's smaller than the issuance of bonds, the fund to master the timing and means of entry.
For the Philippines, the current unstable political situation, Kassin has considered the impact of the investment market will not have much. He also said that if bond prices fall further, it may be a good time to approach Xihuo.
Among emerging markets, China and Russia can not be ignored in the two economies. Kassin said that China and Russia's economic conditions are good for continued growth momentum is obvious. However, the current price of the bond between the two countries are at record highs, the basic expectations of economic growth has been reflected in bond prices were. Held to maturity for those who want the stability of investors, may be a good choice. However, bond funds not currently included in our portfolio.
