Hamon Selected Asian Portfolio
Morningstar Star Rating
Unit Price (30/5/08): US$55.73
Launch Date : 22 November 1989
Cumulative Performance % in US$ (NAV to NAV, with dividend reinvested)
Authorisation : SFC* approved
Trustee : HSBC Institutional Trust Services (Asia) Ltd May 08 YTD 3-year
Bloomberg Code : HAMSAPI HK Hamon Selected Asian Portfolio -0.73% -17.21% 113.52%
Valuation Day : Every Wednesday MSCI Daily TR AC FE ex-Japan Net** -2.43% -8.17% 94.44%
Investment Advisor : Hamon Asset Management Ltd
(NAV in US$)
Source: HSBC Institutional Trust Services (Asia) Limited, Bloomberg
After a slight rebound in April, global markets stumbled in May. Crude
oil tested a new high of US $133/barrel during the month, fuelling
inflationary pressures and dampening the growth outlook for both
The Hamon Selected Asian Portfolio aims to provide developed and emerging economies.
investors with capital growth and income in listed Asian (ex-
The Fund was flat in May, outperforming the MSCI Daily AC FE ex-
Japan) companies. The investment strategy concentrates on Japan index which fell 2.4%. The performance was mainly due to a
the potential of particular companies or industrial sectors rather rebound in the Indonesian market, and good performance from
than the overall size or prospects of national economies or Singapore commodity trader Noble Group, which rose 34.5% in the
economic sectors.*** month on record Q1 profits.
The region was saddened and shocked by the scale of the Sichuan
earthquake and encouraged by the Chinese government’s massive
relief effort. This is in contrast to Burma, who did not help its people.
COUNTRY ALLOCATION We do not expect an substantial economic impact to China as a result
of the Sichuan earthquake, since the affected areas are mostly rural.
Sichuan is a major agricultural province, and damage to property and
transportation links may only impact grain and pork prices. However,
8% 1% Hong Kong food prices fell 3% over the month, offering hope of a CPI retreat in the
Nevertheless, China’s inflation remained a concern in May, with April
CPI rebounding to 8.5%. The PBOC reacted by raising the banks’
reserve ratio requirement (RRR) another 50 basis points to 16.5%, the
China fourth RRR hike this year. However, most nationwide banks will not
4% face liquidity issues until the RRR reaches 18%, according to their 2007
7% Meanwhile, rice prices, which touched record highs last month,
succumbed to profit-taking amidst over-speculation. The US dollar
strengthened against the Euro and the Yen due to better than expected
Korea US data, expectation of a pause in US interest rate cuts and worries
13% about a slowdown in the European economy.
16% The Indonesian government ended uncertainty over inflation and
concerns over fiscal deficit by raising interest rates to 8.25% and hiking
fuel prices 30%. Investors took comfort in the government’s actions and
the JCI index rebounded 6.07% in May, recouping much of the losses
of the previous month. Our core holdings in the metals and mining
Consumer sector, such as Bumi Resources and Timah, performed well.
Discretionary In Taiwan, the TaiEx fell 3.37%. Deregulation of oil and electricity
12% prices brought concern of high inflation and weak corporate earnings to
the market, flattening any optimism surrounding the new president’s
inauguration and the historic Wu/Hu meeting.
The Indian market disappointed in May with the BSE Sensex falling
Industrial 5.04% on concerns of inflation and rising oil prices. Only technology
19% and export firms had something to cheer about, with a reversal of the
rupee appreciation trend of the last few quarters bringing stronger
Materials revenues to these sectors. However, the latest government figures
Utilities 14% show a better-than-expected GDP growth of 8.8% in Q1 – coupled with
3% attractive valuations post-correction, we feel India has the potential to
Info Technology outperform other Asian markets.
Consumer Staples 10%
9% Looking ahead into June, we expect market sentiment will remain
Internet/Telecom sensitive to the US economy, the direction of crude oil prices and
Energy inflation data. We continue to like Taiwan on better growth outlook
6% from the potential improvements in cross-strait relationship. We also
like Asian domestic consumption and infrastructure plays, and we are
• The company valuation indicated are from Hamon’s research and best estimate bullish on coal prices due to world supply/demand imbalance.
*The SFC authorisation does not imply official approval or recommendation to Investors should note the price of units may go down as well as up.
invest in the Fund. Please refer to respective offering document(s).
**The Fund has changed its index from MSCI AC Far East ex-Japan to MSCI Daily
TR AC Far East ex-Japan Net with effect from 1 January 2007.
Hamon Investment Group
***The Fund invests into emerging markets and investors should be aware of the
risks associated with such investments. Please refer to the relevant prospectus for 3510 – 3515 Jardine House, 1 Connaught Place, Central, Hong Kong.
details and risk factors associated with investment in emerging markets. Tel: (852) 2526 4268 • Fax: (852) 2526 7277
Website: www.hamon.com.hk • Email: email@example.com