Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Hyperinflation in Zimbabwe Ė Itís back, but maybe not for long
By: JP Koning

Gold Versus Bitcoin: The Pro-Gold Argument Takes Shape
By: John Rubino

Gold's Interesting Day
By: Rick Ackerman

Asian Metals Market Update: November-20-2017
By: Chintan Karnani, Insignia Consultants

GoldSeek.com Radio: John Williams and Louis Navellier, and your host Chris Waltzek
By: radio.GoldSeek.com

Gold Market Update
By: Clive Maund

Technical Scoop - Weekend Update Nov 19
By: David Chapman

Zero Hedge invites Financial Times to heed GATA's urging on gold suppression
By: Chris Powell

The Great Retirement Con
By: Adam Taggart

Perspective on the Gold/Oil Ratio, Macro Fundamentals and a Gold Sector Bottom
By: Gary Tanashian

 
Search

GoldSeek Web

 
Hereís Why China Region Stocks Are in the Spotlight Right Now


 -- Published: Friday, 29 September 2017 | Print  | Disqus 

By Frank Holmes

Chinese automaker geely saw an 80% increase in sales in the first eight months of 2017

Between escalating tensions with North Korea and a U.S. Congress in gridlock, it can sometimes be challenging to stay positive. Thatís why Iím pleased to share with you this good news: Our China Region Fund (USCOX) was up more than 45 percent for the 12-month period as of September 22, 2017, beating its benchmark, the Hang Seng Composite Index (HSCI), which gained 20.7 percent over the same period. This means USCOX outperformed the index by roughly 25 percent.

China Region Fund USCOX outperformed its benchmark by roughly 25% for 12-month period
click to enlarge

Put another way, USCOX has beaten the HSCI in eight of the past 11 months, or 73 percent of the time, with the greatest monthly spread between fund and index occurring in June.

china region fund uscox bet its benchmark 73% of past 11 months
click to enlarge

One of the main contributors to our outperformance is our overweight positions in information technology and consumer discretionary stocks, which made up a combined 61 percent of the fund as of September 22. As we see it, these sectors are where the growth is, driven by innovative tech firms, from Sunny Optical to Tencent, and automakers such as Geely Automative, Guangzhou Automotive and Great Wall Motor.

asian stocks excluding Japan are the frontrunner of 2017
click to enlarge

Asian Stocks Look Cheap Compared to the American and European Markets

When measured against the American and European markets, Asian stocks, excluding Japan, have been the top performers of 2017 so far, returning more than 30 percent year-to-date. Thatís compared to an 11.7 percent gain for the S&P 500 Index and 20 percent gain for the STOXX Europe 600.

Asian stocks also have a more attractive valuation than these other two regions. With the S&P 500 trading at 21.4 times earnings and the STOXX Europe 600 trading at 21.2 times earnings, the MSCI Asia Pacific ex-Japan Index looks more reasonable at 15.6 times earnings.

The China Region Fund, meanwhile, trades at 15.5 times earnings, making it, I believe, an exceptional value.

Cars, Tech and Sportswear Driving Growth

We believe our exposure to Chinese automakers and tech firms makes USCOX well-positioned for long-term growth. Not only is China the largest passenger car market in the world, it was also the fastest growing. In the first eight months of this year, auto sales in the country were up close to 5 percent compared to the same eight months in 2016, according to the China Association of Automobile Manufacturers. Geely, which completed its acquisition of Volkswagen in 2010, sold 718,000 vehicles during this period, an amazing 88 percent increase year-over-year.

Tech manufacturers, especially those that supply Apple, look very attractive. Our favorite right now is Sunny Optical, which specializes in lenses for a number of advanced applications. The company announced that shipments of handset lenses surged 96 percent in August, while vehicle lenses rose 65 percent. For the 12-month period as of September 22, its stock was up 264 percent.
Weíre also fans of Anta Sports Products, Chinaís largest sportswear company by revenue. By selling pricier athletic gear under its Fila brand, the company is seeking to capitalize on rising incomes and the Chinese governmentís push to boost participation in sports. According to Bloomberg, the government aims for 435 million of its citizens, a third of its population, to work out more frequently by 2020. This bodes well for Anta.

The sportswear company is among our top 10 holdings.

See what other companies round out the fund!

Past performance does not guarantee future results.

Please consider carefully a fundís investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Foreside Fund Services, LLC, Distributor. U.S. Global Investors is the investment adviser.

Total Annualized Returns as of 6/30/2016
 One-YearFive-YearTen-YearGross Expense Ratio
China Region Fund33.80%7.01%-0.35%2.76%
Hang Seng Composite Index28.24%9.43%4.60%n/a

Expense ratios as stated in the most recent prospectus. The Adviser of the China Region Fund has voluntarily limited total fund operating expenses (exclusive of acquired fund fees and expenses of 0.02%, extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments) to not exceed 2.55%. With the voluntary expense waiver amount of 0.38%, total annual expenses after reimbursement were 2.36%. U.S. Global Investors, Inc. can modify or terminate the voluntary limit at any time, which may lower a fundís yield or return. Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance does not include the effect of any direct fees described in the fundís prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS.

Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. By investing in a specific geographic region, a regional fundís returns and share price may be more volatile than those of a less concentrated portfolio.

The Hang Seng Composite Index is a market-cap weighted index that covers about 95% of the total market capitalization of companies listed on the Main Board of the Hong Kong Stock Exchange. The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The STOXX Europe 600 Index is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800 Index. With a fixed number of 600 components, the STOXX Europe 600 Index represents large, mid and small capitalization companies across 18 countries of the European region. The MSCI AC Asia Pacific Index captures large and mid-cap representation across 5 Developed Markets countries and 9 Emerging Markets countries in the Asia Pacific region. With 1,034 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. The MSCI AC Asia Pacific ex-Japan Index captures large and mid-cap representation across 4 of 5 Developed Markets countries (excluding Japan) and 9 Emerging Markets countries in the Asia Pacific region.

Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the China Region Fund as a percentage of net assets as of 6/30/2017: Tencent Holdings Inc. 6.20%, Sunny Optical Technology Group Co. Ltd. 6.75%, Apple Inc. 0.00%, AAC Technologies Holdings Inc. 3.00%, Guangzhou Automobile Group Co. Ltd. 4.63%, Geely Automobile Holdings Ltd. 8.96%, Great Wall Motor Co. Ltd. 1.01%, HSBC Holdings PLC 0.00%, AIA Group Ltd. 0.00%, ANTA Sports Products Ltd. 2.57%.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.


| Digg This Article
 -- Published: Friday, 29 September 2017 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.