5% Cash, 95% stocks

"Unfortunately, this unprecedented financial crisis is not over yet, but the worst may be over," he said. "Masaaki Shirakawa, Governor of the BoJ, Shirakawa the market. But it is clear that the financial crisis has not gone far, and the recovery is unusually difficult in the asset management industry, which is in the midst of a crisis, after all, the recovery is not just about money.　　For Aberdeen Capital Management (Aberdeen Asset Management), China's equity investment director Yao Hongyao, the economy also needs "resilience" in many areas, such as confidence, regulation and self-discipline, even though his strategy of "long-term stock-picking and long-term investment" remains unchanged. June 9, Yao Hongyao in Beijing, including the visit of this newspaper. Aberdeen Asset Management currently manages over 143 billion dollars in third party assets to provide equity, bond and real estate investment services.　　Yiu Zeng is committed to global emerging market investment, responsible for Europe, the Middle East, Africa and Latin America enterprises. 21st Century: Market volatility has been strong in recent years, with H-shares and overseas stock markets more volatile than a-shares.　　Aberdeen has always stressed that he is a "bottom-up" investor, in this market environment, your investment strategy changes? Yao Hongyao: Our stock positions have always been at a high level--that is, keep cash at 5% levels. This is quite common in Western countries. Because clients entrust us with money, we want to help them invest in stocks instead of us helping them manage the cash.　　Although the stock market has the risk of adjustment in the short term, it is more reasonable in the long run. The Chinese economy may have weathered the worst, but it remains to be watched whether the real recovery and how long it will last. The success of the government's injection of the economic system has led to a rebound in industrial output, benefiting heavy industry. However, industries such as steel and concrete face overcapacity problems. If the economy is to sustain growth, government spending alone will not be enough, and personal consumption and external demand must recover.　　We still believe that the possibility of a W-shaped future recovery is greater than that of U-shaped. "21st century": As far as I know, your stock selection will go through a longer process.　　What criteria do you usually use to select stocks? Yao Hongyao: We always uphold our investment philosophy, that is, the high quality of investment companies. In terms of valuation, we are more cautious and hope to absorb it at a low valuation. We actually exchange three to four times a year.　　Because we have been to invest in the company, have known for 5-10 years, so more confident. We mainly study the company's fundamentals, industry experience and management experience. We don't like IPOs because we don't have a chance to inspect the management. The other is to look at the debt rate. Debt rate is low, when the market is good, the ability to improve quickly. There is to see the style of enterprise, whether the enterprise reasonably protects the interests of small shareholders.　　In short, we look at the quality standards first, then look at the valuation criteria. 21st Century: There is a saying that it is now possible to focus on some of the lower-pricedA cyclical industry, such as chemicals.　　What do you think of this view? Yao Hongyao: This is another faction, is the subject matter. In the long run, we are more cautious about the industries with high periodicity, such as chemical and mineral deposits. If the system is not good and the cost is high, it is difficult for such companies to escape the market cycle. This is a big negative factor for long-term investment. So for the cyclical high industry, we still do less, such as shipping.