1. How does JFam company help you accumulate fortune? 043038 Yeung Pui Yam 043048 Chau Tsz Yan 043053 Wong Ka Wing 043063 Lo Ka Yan 043078 Chan Cheong Kan

2. Background of JF JF Asset Management Invest across 4 regions : 1) Asia 2) Europe 3) Japan 4) the US

3. over 660 investment professionals located in 40 locations worldwide. original research company visits

4. Numerous performance awards and high ratings from independent agencies. E.g. - 2001- 2005 South China Morning Post Fund Manager of the Year - 2002- 2005 Standard & Poor ’ s Offshore Fund Awards

5. JF India Fund

6. -the first open-ended India fund to be authorized in HK -High risk fund

7. -Trust Deed dated 23 November,1989 -Terminated on 22 November, 2089 -Trustee : HSBC Institutional Trust Services (Mauritius) Limited

8. Investment Objective -long-term capital growth through a portfolio of securities linked to the Indian economy. -also invest in derivatives such as forward contracts, options, warrants and futures

9. Allocation of funds(as at 31.10.06 )

10. Computation of the India fund ’ s return

11. YearNAV of the beginning NAV at the end The highest NAV The lowest NAV Average NAV 199621.3919.8027.5617.3922.475 199720.5022.3429.7720.2925.03 199822.5520.1426.0120.1423.075 199920.4751.31 20.4735.89 200056.6337.4274.1635.3454.75 200137.8929.4840.9335.3438.135 200229.7128.7832.2724.6028.435 200328.7659.00 25.6442.32 200460.6776.4976.4148.3562.38 200577.78109.68 69.7389.705

12. YearManagement charge (Average NAV * 1.5%) 199622.475*1.5% = 0.337125 199725.03*1.5% = 0.37545 199823.075*1.5% = 0.346125 199935.89*1.5% = 0.53835 200054.75*1.5% = 0.82125 200138.135*1.5% = 0.572025 200228.435*1.5% = 0.426525 200342.32*1.5% = 0.6348 200462.38*1.5% = 0.9357 200589.705*1.5% = 1.345575

13. Charge ( 收費 ) For each share, Initial ( 認購費 ) 5% of NAV 21.39*5% =1.0695 Redemption ( 贖回費 ) 5% of NAV 109.68*0.5% =0.5484 Management fee ( 管理費 ) 1.5% p.a. 0.337125 + 0.37545 + 0.346125 + 0.53835 + 0.82125 + 0.572025 + 0.426525 + 0.6348 + 0.9357 + 1.345575 =6.332925

14. Assumption The management fee is the average of the highest and lowest NAV in the year. The lowest price to invest in 1996 is same as now, USD2000 Assume the Bid current price in Jan. 1996 is $21.28 Then we can get 93 units of JF India Fund

15. The sum of management fee, initial fee & redemption fee for ten years investment: 6.332925 +1.0695 +0.5484 =$7.950825 per share The total charges of 93 share of India Fund: $7.950825 * 93 =739.43

16. ∵ The NAV differences from 1996 to 2005 109.68 - 21.39 =88.29 ∴ The total return of investing $2000 at Jan. 1996 88.29*93 = 8210.97

17. The net return after charging the fees $8210.97 – $739.43 + $20.96(which is the excess from buying 93 JF fund) = US$ 7492.5

18. Designer of mutual funds According to different objective of investment >>> e.g. long term capital growth e.g. Stable income stream According to the rapid change of market >>>Brazil, Russia, India, China (Fund of BRIC)

19. Flexible, accurate, quick to design Money market funds Bond funds e.g. JF Asian total return bond Growth funds e.g. JF Greater China Global funds Specialized sector funds To satisfy different investor with different risk-tolerance First Hand Information! Because they are fund designer and producer, not agent

20. the fees, type of funds of different investment companies are almost the same ! Fidelity Investments Management (HK) Ltd First State Investments (Hong Kong) Limited HSBC Investments (Hong Kong ) limited

21. Why select JF as Your Choice?

22. Basic Reasons Well established reputation >> over 30 years JF Asset Management is part of JPMogan Asset Management Extensive global investment resources >> 660 investment professionals located in 40 locations worldwide

23. >>excellent performance record >excellent performance record<< Name of fund Launch Date 3 Years%5 Years% Since Launch% JF Eastern01.02.71+67.8+123.2 +17835.6 JF Pacific SecuritiesPacific Securities 26.05.78+61.1+96.3 +7893. 5 JF India23.11.89+212.1+465.3 +1425. 2

24. Name of fund Cumulative performanc e of 3 month Cumulative performanc e of 1 year Cumulative performanc e of 3 years First state Indian Subcontine nt 22.4%52.1%177.3% HSBC GIF Indian equity Fund 21.1%56.1%179.5% JF India fund 23.4%64.1%212.1%

25. Fund Awards and rating 2002 South China Morning Post Fund Manager of the Year Awards e.g. JF Eastern, JF pacific securities 2006 Lipper Fund Awards Hong Kong e.g. JF Korea, JF Singapore Standard & Poor's Fund Ratings (fund stars:5) e.g. JF India, JF ASEAN

26. Hang Seng “ Currency-Linked Capital Protected Investment Deposit “ JF India fund Return Guaranteed minimum return E.g. Max :5% p.a., Min :2.8%p.a. No guarantee return No upper limit (e.g. 23.4 % of three month return) Investment period Short time Tenor: 3 or 6 month Long time No time limit, but early withdrawal is not suggested. Comparison of financial products Con’t

27. Comparison of financial products (con ’ t) Minimum Investment HK $500,000US$ 2000 ~(HK$15,600) FeeNo management fee No handling fee 1.5 % management fee 5% subscription fee 0.5% redemption fee RiskForeign exchange risk  relatively low Risk of unstable stock market  relatively high

28. Risk Factor !!!! 1.Political and social risks social & political problem exist in India that have negative effect on India market e.g. India and Pakistan ’ s conflict

29. Risk Factor !!!! (con ’ t) 2.Currency risk India fund is denominated in $US dollar. The exchange rate between HK$ vs $US or US$ vs Rupee is additional risk to investor. E.g. When you buy mutual fund: HK$  US$  Rupee When you redeem mutual fund :Rupee  US$  HK$

30. Risk Factor !!!! (con ’ t) 3.Diversification risk India fund ’ s investment is all invested in India market. 4.Hedging risk Hedging technique consist certain risk.

31. Thank You !!