Aberdeen Asset Management

Aberdeen outperformed all other China funds with a 1 year return of (-1.84%). The rest: JP Morgan (-15.76%), Fidelity (-15.84%), Templeton (-15.78%), HSBC (-17.97%), Manulife (-20.67%).

Pruksa Iamthongthong explains which positions paid off for the portfolio.

HK must kick its property addiction

HK must kick its property addiction
Andy Xie warns that Hong Kong’s dependence on the housing sector to drive economic growth is feeding another asset bubble. When it bursts, he says, the government should resolve to kick the addiction

Apr 23, 2012

Hong Kong did not learn from the property crash and economic collapse of 1998. Instead, it has tried hard to reinflate the bubble. After squeezing supply for over a decade and with the help of the US Federal Reserve’s zero interest rate, the bubble is back. But it is a Pyrrhic victory.
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How Exercise Could Lead to a Better Brain

By GRETCHEN REYNOLDS
New York Times
April 18, 2012

The value of mental-training games may be speculative, as Dan Hurley writes in his article on the quest to make ourselves smarter, but there is another, easy-to-achieve, scientifically proven way to make yourself smarter. Go for a walk or a swim. For more than a decade, neuroscientists and physiologists have been gathering evidence of the beneficial relationship between exercise and brainpower. But the newest findings make it clear that this isn’t just a relationship; it is the relationship. Using sophisticated technologies to examine the workings of individual neurons — and the makeup of brain matter itself — scientists in just the past few months have discovered that exercise appears to build a brain that resists physical shrinkage and enhance cognitive flexibility. Exercise, the latest neuroscience suggests, does more to bolster thinking than thinking does.
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Set up rainy-day fund before investing

Given uncertainty and higher costs of living, experts advise saving 6 to 12 months of pay
01 Apr 2012
by AARON LOW

One of the most basic rules for personal financial planning is to establish a personal emergency fund for a rainy day. The conventional wisdom is that the emergency fund should comprise between three and six months’ worth of one’s salary. So for instance, if a person earns $4,000 a month, his emergency fund should be built to at least $12,000.

But increasingly, this conventional wisdom is being challenged on many fronts.

For one thing, financial advisers say that the uncertain economic outlook and higher costs of living mean that three months of savings may simply not be enough.

Mr Patrick Lim, director of financial advisory firm PromiseLand, advises his clients to save between six and 12 months of salary as an emergency fund.
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Why protection?

Investment and protection are two distinct strategies that address two very different needs. Both, however, are necessary in order to meet an individual’s financial goals

Manpreet Gill, Senior Investment Strategist, Standard Chartered Bank
04 Jan 2012

MOST of us tend to relate our financial goals with our investments. Within this framework, success in our investments correlates with meeting our investment goals, while protection is usually incorporated to the extent that it addresses the downside risks of the investment portfolio.

We think protection and its role in meeting one’s overall financial goals, however, have a much wider meaning. Downside risk extends beyond the risk of losses on one’s investment portfolio. For example, if an individual were unfortunate enough to be rendered disabled such that returning to a regular job was impossible, his or her income would be reduced or stop completely. But financial commitments and goals will not change. Without a similar level of income, it would be increasingly difficult or impossible to meet their financial goals.
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Home of HK$33 wontons could fetch HK$180m

An example of why you should never sell a good asset.

Home of HK$33 wontons could fetch HK$180m
Ho Hung Kee’s landlord puts famed noodle shop up for sale amid Causeway Bay retail boom just a year after buying it from family for HK$100m
Sandy Li
SCMP Apr 11, 2012

A 1,000 square foot noodle shop that has survived in Hong Kong’s cutthroat restaurant market for 38 years and boasts a Michelin star is in the news – but not for its lunchboxes.

Just a year after being sold for HK$100 million, the long, narrow shop space that houses Ho Hung Kee is up for sale again and could fetch nearly twice the price. The street-level shop at 2 Sharp Street East in Causeway Bay, the world’s second-most expensive street for retailers, is now valued at around HK$180 million – including its 600 sq ft cockloft.

The Ho family, who have operated Ho Hung Kee since 1946, bought the shop for HK$350,000 in 1974, but decided to cash in on rocketing retail property prices, and last year sold the shop to an investor for HK$100 million on a two-year lease-back.

Property consultants said the wonton noodle restaurant currently pays about HK$125,000 a month in rent, and the lease is due to expire in mid-2013. Not counting utilities, salaries and food costs, that means Ho Hung Kee needs to sell 126 of its HK$33 bowls of wonton noodles a day, seven days a week, to cover the monthly rent payment.

Isaac Wai, a senior marketing manager at Ricacorp Properties said a 400 sq ft shop selling T-shirts at 9 Sharp Street East, opposite Ho Hung Kee, is paying HK$170,000 a month, while another at 7 Sharp Street East is being offered for lease at HK$200,000 a month.

“The shop could definitely pay HK$250,000 in rent a month, and if it changes hands at a higher price, it’s logical for the new owner to raise the rent when its lease is due for renewal,” he said.

It is unclear how the property sale will affect the noodle shop, still run by the Ho family, according to a woman who identified herself as the owner.

“It’s too early to say,” she said. “We’ll continue with business as usual because our lease hasn’t expired yet.”

But she also said it would be tough to survive if the landlord raised the rent significantly.

“We only charge HK$33 for a bowl of wonton noodles. But thanks to our loyal customers, our business is still strong at the moment.”

The family plans to open a new shop in the soon-to-be opened Hysan Place in Causeway Bay, she said.

Yesterday, the property’s owner appointed Colliers International to offer the shop for sale.

Pierre Wong Tsz-wa, chief executive of commercial property agency Midland IC & I, said the owner wanted to cash in on the retail boom.

“Due to tight supply, retail shops in Causeway Bay have fetched jaw-dropping prices,” said Wong, who estimated that the shop, with its proximity to Times Square, could fetch as much as HK$180 million .

Helen Mak, director of retail services at Colliers International Hong Kong, said two recent transactions in nearby Lee Garden Road had generated more than HK$200,000 per square foot.

“Space is scarce, so retail properties in the district are being snapped up the minute they come on the market because investors see the potentially high returns,” she said.

The monthly rent for Ho Hung Kee in the current market could go as high as HK$350,000, she said.