Successful cases of Ping An Annuity

The annuity plan initiated on Sep. 21st, 2006. It is a long-term annuity investment aggregated plan.

The plan is a stable growth plan. The asset allocation is equity 0-20%, fixed-income 20-50%, currency market tools 30-80%.

The plan emphasized particularly on fixed-income investment, thus were influenced by bond market trends. The bond market slumped in June 2007, affected by the issuance of T-bond. The mid-long term bonds had the highest yield, 5 year T-bond yield rose 35-45np, the yield curve became more abrupt. And we can see that there was some volatility during June. And since Jul. 2007, the upwards trends became more clear, accumulated investment return reached 33.34%. As of Aug. 9th, 2007, the yield of the annuity plan has far outperformed the benchmark by 1082bp, the AUM 65mn.

The volatility of the net value of this annuity investment portfolio was very flat, and it was strong in anti- risk. In May 30th, 2007, stamp tax was adjusted upwards, and thus the sentiments in the stock markets were very low. But even under such environment, the portfolio was limited influenced, only dropped by 2.02%, and later rebounded vigorously. In Jul. the highest weekly rise reached 3.36%.

The plan was initiated on Apr. 4th, 2007. As of Aug. 8th, it has only been run for 4 months.

The asset allocation of the plan is equity 0-30%, fixed-income 20-50%, currency market tool 20-80%.

Since the inception, the portfolio has kept its upward going trends in volatility. After Jul. 20th, the upward trend was more obvious, the accumulated investment yields reaching 10.32% AUM 13mn. As of Aug. 9th, 2007, the 3 months yield reached 6.48%, outperforming the benchmark by 42bp. During the stamp tax adjustments from May 30th to Jun. 6th, the portfolio only dropped by 1.4%. In the later June, obvious adjustments occurred to the markets due to central government’s macro control and worries about the interest rate hike and liquidity tightening. In Jul. under the background of overall economy running shifting from relatively fast to overheating economic running, macro control has become the market focus. There were more wait-and-see attitude in the market; the transaction volume of the two cities fell sharply. During the period of time, the net value of this portfolio only vibrated a little. On July 20th, PBoC claimed to hike interest rate, and adjusted interest tax to 5% from 20%, thus the bad news had all gone out and the market activities increased evidently. The portfolio went upwards and hit new high. Since Jul. the portfolio hit new high every week.

The plan is initiated on Oct. 25th, 2006, and it is a long-term annuity investment aggregated plan.

The portfolio belonged to stable growth investment portfolio. The asset allocation is equity: 0-20%, fixed-income 20-50%, and currency market tools 30-80%.

The plan emphasized particularly on fixed-income investment, thus were influenced by bond market trends. The bond market slumped in June 2007, affected by the issuance of T-bond. The mid-long term bonds had the highest yield, 5 year T-bond yield rose 35-45np, the yield curve became more abrupt. And we can see that there was some volatility during June. And since Jul. 2007, the upwards trends became more clear, accumulated investment return reached 34.20%. As of Aug. 8th, 2007, the yield of the annuity plan has far outperformed the benchmark by 1259bp, the AUM 91mn. The volatility of the net value of this annuity investment portfolio was very flat, and it was strong in anti-risk. In May 30th, 2007, stamp tax was adjusted upwards, and thus the sentiments in the stock markets were very low. But even under such environment, the portfolio was limited influenced, only dropped by 1.5%, and later rebounded vigorously. In Jul. the highest weekly rise reached 2.27%