Ian Fairnie – Edutravel
ONE OFF THE WOOD: Ian Fairnie is a member of the Stockwatch Group, which conducts regular top performing ASX-listed company briefings at the Western Australia Club in Perth.
He is also executive director with Edutravel, which is gearing up to lead a group of investors on a business-focused educational tour of China in October.
What sort of people usually travel on these tours?
Mostly those who attend the Stockwatch Group briefings as well as people who are clients of Travel Directors, the travel company that are helping us put the tour together.
They specialise in tours aimed at a similar demographic, which is people who are looking for tours that provide an educational slant and are not just an off-the-rack sightseeing adventure.
There are a number of key stockbrokers around town who are inviting their clients given the strong demand and interest for exposure to invest in Chinese high-growth sectors.
Why do you run the tour through Travel Directors?
Because I am not a travel agent; I am a person who puts together unique study tours. I guide the travel agent by telling them where we want to go, and where we want to stay to ensure the maximum value is offered for those attending.
What is the purpose of the tour and what does it hope to achieve for those participating?
The tour focuses on companies that are listed on the Australian Securities Exchange that are conducting business in China.
For example, we will be visiting the Algae.Tec facility that is currently under construction in the Shandong province. We will also receive personal boardroom presentations by HSBC, the Hong Kong Monetary Authority and the Haier Corporation who have a strategic joint-venture with Fisher & Paykel.
So for investors that may be following the Algae.Tec story who know the company is building the facility in China they can actually go and see it in operation.
These visits aim to provide a first-hand view of the company operations that would not be available to the general public.
What other highlights for the tour do you have planned?
The touring party will attend briefings given by Australian companies that have spent some time in China, providing them with some insight as to how the Chinese economy is growing.
We often hear about the levels of Chinese government investment in construction and how this has slowed down somewhat giving rise to fears the country may be slipping into a European-type malaise.
The difference the Chinese economy is displaying is that instead of growing at 11 per cent it has slowed to be growing at 9.2 per cent.
China is still steaming along, just not at levels of over 10 per cent.
If you were to describe what the Study Tour actually is, how would you do that?
The essence of the tour is to provide investors with a first-hand look at China – what it is today and where it has come from.
To allow them to understand some of the country’s nuances that underlie the way the Chinese leadership thinks and what is driving that from a historical point of view.
What benefits would investors gain from travelling on your tour than if they were to travel to China under their own steam?
They certainly wouldn’t enjoy the same access to the companies that we are going to see.
That is an important feature of the Study Tour and is something that has been organised by the Stockwatch Group.
Who will the Study Tour group be visiting?
We are starting in Hong Kong where we will be calling on the Hong Kong Monetary Authority.
We will visit the Hong Kong exchange and in Beijing we will be attending briefings from companies such as Westrac.
The tour will provide numerous opportunities that would just not be available to the average tourist who may simply be on a trip to visit the Great Wall or the Forbidden City.
Would it be fair to say the tour provides participants first-hand knowledge affording them a greater appreciation or understanding of China that they can bring to any media report or broker analysis regarding a company’s operations in the country?
Exactly; that plus the fact they have suddenly developed a network of some twenty or so people who they will be able to contact directly to ask any question or discuss any queries they may have.
What demographic are you targeting this tour at?
If it was geared towards any particular demographic I would say that would be self-funded superannuants as opposed to those locked up in a corporate superannuation fund, who would not be influencing any of the investment decisions being made.
It would be more useful to the self-funded investor and would also assist them with any future dialogues they may enter into with their brokers.
The Investor’s Study Tour of China is priced at $2990 (land only) and departs 13 October 2012. Places are strictly limited. For information call 9242 4200 within Western Australia or 1300 856 661 if calling from outside Western Australia.
PLEASE NOTE: This tour is intended to provide general securities advice, and does not purport to make any recommendation that any securities transaction is appropriate to your particular investment objectives, financial situation or particular needs. Prior to making any investment decision, you should assess, or seek advice from your adviser, on whether any relevant part of this report is appropriate to your individual financial circumstances and investment objectives.