Yuanta Securities eyes European momentum for investment

The European market, which has recently shown signs of an economic rebound, offers a golden opportunity for investors, according to Yuanta Securities.

The China-based securities firm recommended its Hana UBS Europe Opportunity Fund, a comprehensive product investing in multinational companies listed in Europe.

“The quantitative easing of the European Central Bank, combined with the economic momentum in the region, is an investment opportunity,” said Kim Yong-tae, product development manager of the company.

In order to maximize profits, the corresponding fund adopts a long-short strategy, purchasing what it sees as undervalued stocks, while selling off overvalued ones -- taking long positions on the former, and short positions on the latter.

But to keep the level of volatility and risk within limits, the company limits the stock position to the net asset amount, according to officials.

“Europe is showing clear signs of economic momentum, which is raising a sense of expectancy among local companies and multinational exporters,” Kim said.

“We advise our clients to invest extensively into such companies through our Hana UBS Europe Opportunity Fund.”

The preemptive sales charge of the fund is 0.97 percent annually for Class A and 1.67 percent for Class C. The covering charge is 10 percent of the profits within 30 days of subscription.

Further details are available on the company’s website (www.MyAsset.com).

By Bae Hyun-jung (tellme@heraldcorp.com)