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NEWS > FINANCIAL PLANNING
Tiger year ushers investors to China
Monday, 15 February 2010 12:25pm
By Ruth Liew  |  In Financial Planning

Planners spent the last decade educating clients about China's potential - but the Year of the Tiger could herald the new boom decade for local investors.

Jonathan Wu, head of distribution and operations at Premium China Funds Management, said the Year of the Tiger could mean markets will be in for a year of volatility, reminiscent of the Tiger's "energetic" characteristic.

However, "at the end of the day, the same core message is that you can make money out of an inefficient market, and you can outperform with a [good] fund manager behind you," he said.

High on the client demand list is planners' advice and ability to find opportunities for exposure to China, he said.

"Post the backdrop of the GFC, we can see solid numbers coming out of China... this decade is the decade for people to embrace China as a whole," said Wu.

As a result, Premium China Funds Management is looking to launch a new structured product following investor feedback, said Wu.

The previous year of the Golden Tiger was 1950, a year that saw the Dow Jones Index gain significantly and end the year on a high, according to the 16th CLSA Feng Shui Index.

Typical of Tiger-years however, investors should prepare for dramatic changes and even an impulsive and risky year ahead.

"Those trading equities should get set to ride the wild tiger. The markets will be volatile with a surge in the first month followed by a decline that turns upwards in June, dips, and then swings up again in September to see the Golden Tiger roar by January 2011," noted CLSA.

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