Fund firm seeks US, European companies

By Judy Chen | February 26, 2009, Thursday |

Print Edition

CHINA Asset Management Co, the country's biggest fund manager, said it's seeking investments in the United States and Europe that stand to gain from the growth in emerging markets.

The fund, which manages US$26 billion of assets, said the stock market slump has offered bargains in these countries, and it favors companies based on their management, long-term earnings outlook and the ability to generate cash flow.

''Value has emerged after the big declines in overseas stock markets,'' the Beijing-based company said in an e-mailed reply to queries. ''We would buy at a reasonable price and hold for a period of three to five years.''

The MSCI World Index fell 16 percent this year, extending a record 42 percent drop last year. The Dow Jones Industrial Average and FTSE 100 Index trade at about half of the valuation of the Shanghai Composite Index.

China Asset Management's US$2 billion Global Equity Select Fund, managed by Yang Changheng and Zhou Quan, has fallen 6.7 percent this year, outperforming the MSCI World Index and the 9 percent decline by the Hang Seng China Enterprises Index, which tracks Chinese companies traded in Hong Kong, according to Bloomberg News.

The fund's biggest holdings include China Petroleum and Chemical Corp, Asia's biggest refiner, China Telecom Corp, the country's biggest fixed-line phone carrier, and CNOOC Ltd, the biggest Chinese offshore oil producer, according to its fourth-quarter fund report in January.

Finance

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Fund firm seeks US, European companies

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