Target Asia Fund Performance Report

As the economy improves, the Asian stock market continued its rally. China’s rapid loan growth, strong property and stock market performance have raised concern that its economy may be over-heating. We believe that such concern is premature. The Chinese government has been monitoring the situation closely and has signaled that it will soon slow down the loan growth. Loan quality is also being checked constantly.

As the world economy recovers, Asia should again outperform. We monitor stock valuation closely and continue to top slice those outperformed stocks where valuation has become too rich too quickly.