1.
The 2nd in World GDP and Rising
Source: GE Presentation

2.
The 2nd in World GDP and Rising
Source: GE Presentation

3.
Beat Target over 11 Years in a row
Source: CEIC, Central Government’s Website, CLSA Asia-Pacific Markets

4.
Beat Target over 11 Years in a row
Source: CEIC, Central Government’s Website, CLSA Asia-Pacific Markets

5.
Energy Consumption in China
Energy consumption in US, China and India 1990-2035 (quadrillion Btu)
Source: U.S. Energy Information Administration
Source: McKinsey Insights China

6.
Natural Gas Demand
Non-OECD Asia Net Natural Gas Trade 2008-2035 (trillion cubic feet)
World Natural Gas consumption Natural Gas consumption in non-OECD Asia
2008-2035 (trillion cubic feet) 2008-2035 (trillion cubic feet)
Source: U.S. Energy Information Administration

7.
Electricity Consumption
Trillion kilowatt-hours
Source: U.S. Energy Information Administration
Source: McKinsey Insights China

8.
Changing demographics
Source: McKinsey Insights China

9.
High Saving Rate
Source: World Bank, 2011

10.
Shift in GDP Composition
Less Investment & Export  More Consumption
Source: FT.com
GDP = CONSUMP + INVEST + GOVT + (EX – IM)

11.
Low Debt Per GDP

12.
Interest Rate Cut move Stock Market

13.
Excess Liquidity Move Stock
WHEN
MONEY SUPPLY
GROW MORE THAN
GDP
HK MARKET GOES UP

14.
Yuan Appreciation
2005 CNY Revaluation
Source: XE.com

15.
New City New Transport System
Source: Yum Brand Presentation

16.
Infrastructure Champion
$900B + infrastructure funding only China alone
Source: GE Presentation

17.
Infrastructure Champion
Source: GE Presentation

18.
High Speed Rails & Roads
Source: Morgan Stanley Research

19.
Low PE compared to History
Source: USFunds.com

20.
Simple 10-20 Rule Concept
Buy at a P/E of 10 and Sell at a P/E of 20
Date Yrs Hold Return
1974 1.3 180%
1982 4.8 463%
1989 4.4 430%
1995 2.6 126%
1998 1.8 116%
2008 2.2 88%
2012 Buy XXX %
Now P/E = 9.2
Price As of 28/6/12

21.
Fund Asset Allocation

22.
Portfolio Holding

23.
China National Offshore Oil
Fundamental
• Revenue – 293.81bn HKD
• Net Profit – 85.67bn HKD
• EPS – 1.91 HKD
Ticker: 0883
Listed: HSKI, NYSE • Debt/Equity – 14.5%
• Dividend Yield – 3.55%
Qualitative • P/E – 7.66X
• China No.1 Offshore Producer • ROE – 29.36%
• Daily production 900,000 BOE
• 15 Projects under construction
• 6 – 10% CAGR Next 5 years
• No.3 NOC (National Oil Company)
Source: FT.com/ Businessweek.com/ Reuters.com As of 28/6/12

24.
CHINA Mobile Limited
Fundamental
• Revenue – 643.85bn HKD
• Net Profit – 153.49bn HKD
Ticker: 0941 • EPS – 7.56 HKD
Listed: HSKI, NYSE
• Debt/Equity – 4.4%
• Dividend Yield – 3.97%
Qualitative • P/E – 11.09X
• World’s Largest Mobile Carrier • ROE – 20.52%
• Subscriber 644 millions
• TD-SCDMA Standard
• iPhone 4S deal in Q2’12
• SOE (State Owned Enterprises)
Source: FT.com/ Businessweek.com/ Reuters.com As of 28/6/12

25.
CHINA Mobile Limited

26.
ICBC
Fundamental
• Revenue – 771.93bn HKD
• Net Profit – 263.16bn HKD
• EPS – 0.7415 HKD
Ticker: 1398
Listed: HSKI, SHH • Debt/Equity – 203.68%
• Dividend Yield – 5.82%
Qualitative • P/E – 5.73X
• The world's most profitable bank • ROE – 22.79%
with the largest market capitalization
in the world, 2011
• Net profit has increased yoy with the
highest net profits among its peers
Source: FT.com/ Businessweek.com/ Reuters.com As of 28/6/12

27.
Anhui Conch Cement Company Limited
Fundamental
• Revenue – 59.33bn HKD
• Net Profit – 14.13bn HKD
Ticker: 0914
Listed: HSKI, NYSE • EPS – 2.67 HKD
• Debt/Equity – 33.90%
Qualitative • Dividend Yield – 2.08%
• China No.1 Cement Producer • P/E – 7.93X
• Products used by over 20 countries • ROE – 24.95%
• "Top Quality and Sincere Service"
• Earning growth contributors 
rural & public housing projects
• SOE (State Owned Enterprises)
Source: FT.com/ Businessweek.com/ Reuters.com As of 28/6/12

28.
Anhui Conch Cement Company Limited
Source: FT.com/ Businessweek.com/ Reuters.com As of 28/6/12

29.
Why Invest in Gold ?
Store of Value
Safe Haven
Alternative Currency

30.
Why Invest in Gold ?
Inflation
Store of Value
Value
Safe Haven
Alternative Currency

31.
Why Invest in Gold ?
Inflation
Economic Crisis
Store of Value
Value
Safe Haven
War
Alternative Currency

32.
Why Invest in Gold ?
Inflation
Economic Crisis
Central bank Reserve
USD Weakness
Lower Interest Rate
Store of Value
Value
Money into risk asset
Safe Haven
War
Alternative Currency

33.
Gold vs. Dollar

34.
Gold vs. Dollar

35.
SPDR Gold Trust

36.
Gold Mining vs. Gold Price
2. The mining had to “catch up” to expectations which
already built into the gold markets.
3. Mining companies issue new shares to raise capital that
decrease EPS while Market Cap inflated a lot

37.
Newmont Mining
Fundamental
• Revenue – 10.36bn USD
• Net Profit – 502mn USD
• EPS – 0.9713 HKD
• Debt/Equity – 33.4%
Ticker: NEM • Dividend Yield – 2.73%
Listed: NYSE • P/E – 52.79X
Qualitative • ROE – 3.83%
• A gold producer operate in North
America, South America, Asia Pacific
and Africa.
• Gold Reserves of 98.8 million ounces
Source: FT.com/ Businessweek.com/ Reuters.com As of 28/6/12

38.
BHP Billiton
Fundamental
• Revenue – 74.40bn AUD
• Net Profit – 22.25bn AUD
• EPS – 4.10 AUD
Ticker: BHP • Debt/Equity – 40.41%
Listed: ASX • Dividend Yield – 4.25%
• P/E – 8.45X
Qualitative
• ROE – 38.59%
• A largest global resources producer
operate in 25 countries
• Mines copper, aluminum, diamonds,
uranium, iron, gold, and coal, and
has proved oil reserves
Source: FT.com/ Businessweek.com/ Reuters.com As of 28/6/12

39.
Agricultures
Source: USAID.gov As of 28/6/12

40.
Agricultures
Source: USAID.gov As of 28/6/12

41.
PowerShares DB Agricultures

42.
Department Organization Chart

43.
Department Organization Chart

44.
Our Investment Approach

45.
Our Investment Process

46.
Our Investment Process

47.
Performance Summary

48.
Thank You
Questions
&
Answers