During the period of August 1, 2014 to July 31, 2015, Hanerest’s portfolio generated annualized average return of 26% on invested capital. Meanwhile, our assets under management grew 129% during this period.
During the same period, MSCI ACWI gained 3.35%, S&P500 gained 8.18% and Shanghai Composite gained 67.97%.
Hanerest managed a diversified investment portfolio of equities, ETF/Funds, fixed income and alternative investments. During the period, our portfolio had exposure to US, China/Hong Kong and Europe. The investments on China, including equities, fixed income and convertibles, during this period gained an average annualized return of 36%.
As of July 31, 2015, our largest holdings included Berkeley Group Holdings, Compass Diversified Holdings, Leucadia National and The Goldman Sachs Group.
We consistently emphasise the importance of long-term growth and the compound of capital. This requires us to have a deep knowledge on the business we invest, explore opportunities from market inefficiency, assess the risks in a right way, avoid permanent capital loss and be disciplined and think independently. We bear the risk that we think is suitable for the potential return.
We continue to actively seek opportunities from a wide range of areas including business investment, fund investment and trading. We will continue to do our best to achieve long-term growth on our capital.