At the beginning of each year, you had basically an ETF. You have a couple 在每年年初，你拥有一支ETF。你还可以
of techniques to do ETF. You have full replication of the (of the) index. 对ETF进行一系列操作。例如，你完全复制了指数
That means that your company subscribe, if your (if your) index has 100 stocks, subscribe the 100 stocks. 这意味着，假如指数包含了100支股票，你的公司将认购这100支股票（以组成ETF）
That's it. And you.... It's a full replication. 就是这样，然后，这就是一次完全的复制
Now the technique is an optimizer. You put an optimizer on that, and you 现在有一个优化工具，你将对其运用这个工具，然后
have a hundred stocks, but the optimizer will tell you Okay. It is enough 你原本需要拥有100支股票，但是现在优化工具告诉你并不需要这么多
to have 40, because you will realize ninety nine point nine percent of 只需要40支股票就够了，因为你可以通过（复制）40支股票，实现复制指数99%的
the index return with 40 stocks. Will cost you less because it is not full replication. 收益变动。这会减少你的成本，因为不需要全部复制
You have a (you have a) risk, and then you have some and does not exist anymore, hopefully. （当然）这样做也有风险？？
We did non-full replication, but replication through (through) other techniques 我们做了一个非完全的复制，通过其它技术
and through derivatives. And SOME FINANCIAL INSTITUTION once, in Europe, 以及其它衍生品。在欧洲，一些金融机构曾经
a big European bank, had an ETF, European equity ETF, but behind, the collateral （一家很大的欧洲银行），拥有一支ETF，（名称为）欧洲股票ETF，但实际上，其标的
was Japanese stocks. Went bankrupt, this ETF went bankrupt, and every client received stocks, 是日本的股票。（这家银行）倒闭的时候，这支ETF也进行清算，然后每个客户在其投资组合中得到了股票
Japanese stocks, in the portfolio. So they sold it quite quickly in order （日本公司的股票）。投资者很快的卖掉了股票为了
to mitigate the political risk, but therefore this technique is not allowed anymore. Skills. 减少政治风险（投资者不了解日本情况），但是这个技术已经不再被允许
And you have all these skills, because first thing as you travel, 其实你们具备真正的技能，正如你们从旅行中学习到的技能
the first skill you need to invest internationally is to know what is going 当你需要进行国际投资时，首要学会的技能就是知道
on somewhere else. And I (I) always pretended (it), when I was managing 其它（投资）地区的具体情况。当我管理研究员团队的时候
a couple of teams of researcher, that you can't select someone, or you 如果我没有真正了解他的生活，我不会选择某个人
can't understand someone, if you don't know how he (oh he) or she lives, 或者我不认为我真正理解他
if you have never been on the ground. Impossible to select, 如果你从来没有努力去认真了解情况，那就不可能做出（正确的）选择
especially if we come back to this, especially the more here you the more away from 回到刚才的话题，尤其是当我们距离中心越远
the center you go, the more important it is to know what is their daily life. 我们越需要知道他们每天的生活（事情的本质）
Is it easy? Yes. No. Is it risky? Is it. .. 这简单么？既简单也复杂。风险很大么？或者？
I remember one (one) story quite interesting. (we) When I was at Lombard Odier, 我记得一个有趣的故事。当我还在Lombard Odier的时候
we were planning to (to) have an Asian trip, just two weeks after Lehman bankrupt. 我们曾经计划去亚洲旅行，那时距离莱曼银行倒闭仅仅过去两周
And with my analyst in charge of the Asian research, we asked ourselves Okay. 我和一个主管亚洲研究的分析师一起，我们问自己这时候能否离开
Is it worth to go because (no) nothing will happen. And it was quite interesting. 我们相信不会发生什么，所以我们决定去旅行。然后发生了一些有趣的事情
We went there, and it was quite interesting because we asked the simple 我们到了那里，然后非常有趣的是，我们问了我们自己一个简单的问题
question: How are you? 你真的还好么？
Simple, and with the answer we get, we knew immediately if that business 简单的问题，但是很明显，忐忑不安，因为我们知道业务
was at risk, or if their portfolio was at risk. Especially with boutique 处于风险之中，投资者的组合在风险之中，尤其是对于小型（精品）
manager with small (with small) companies. "How are you." Oh we... 投资经理和投资公司而言（风险承受能力更低）。“你还好么？” 噢
so basically what we did is we cover all the expense. Okay. He is at risk. 我想，或许。。。还好，我们可以负担我们旅行的费用。很明显，他处于风险忧虑之中
So the company is at risk. Or "How are you?" It's fine. The portfolio 所以这个公司也处于风险之中。或者，当你问“你还好么？”，他回答，我很好。我们的投资组合
lost 10 percent but it's fine. We are okay. We are okay with the investment. 浮亏了10个点，但是这没问题。我们还不错，我们对于我们的投资很有信心
One simple question, but being on the ground. Because if you can call them, 这是一个简单的问题，但是直指问题本质。当然你可以给他们打电话，问其他的问题
it's already too far away. You have to go there and to ask Okay. How are 但这已经离答案太远了。你必须回到问题的核心所在，并且问自己是否okay？问自己还好么
you? And then you have all this behave. All this none... yeah the behave, 然后你会根据你的表现知道自己的答案
the (the) non-qualified factors. (It's) You know if the guy is at ease or not. 这或许不是个严谨的判断条件，但是通过行为，你会知道一个人处于放松还是紧张不安的状态？？
Because on paper everything is fine. No one will present you something uninteresting, 纸上谈兵，总是头头是道。没有人会向你展示无聊的东西
not (not) performing and not organized. ？？
So basically if you go there, you can see on the ground the organization. ？？
It is very important and it's one of the skill I would say needed (if we) 这是一项我认为我们需要掌握的重要的技能
because knowledge of asset allocation tool, yes of course. But it is mandatory 当然，了解资产配置工具相关的知识是必须的
for all of us, by definition, went to school and, by definition, we saw the CAPM, by definition, 对我们所有人而言，我们去商学院学习资本资产定价模型（CAPM）
with modern portfolio theory and so on. Yes of course. And we know that. 现代资产组合管理理论等等，我们当然需要了解这些知识
We know the benefits of doing international investment. Yes, but... 我们知道一系列国际投资带来的好处。但是，
The cost is important. Foreign trading is important. Yes. Yes of course. 更为重要的是成本。进行国外投资交易很重要，这一点不假
But the cost, even the cost, if you take the cost, I will challenge this 但是如果把现实的成本纳入考虑，就需要重新定结论了
one as well. Because the cost of investing internationally is less and less expensive. 不过国际投资的成本正在变得越来越低
Everything is harmonized. So even the cost is less and less expensive. 许多差异在趋于一致。尽管成本越来越低
(So) but you have to have this knowledge. You have to have these behave 你必须拥有正确进行国际投资的知识，包括行为
of investing internationally. I remember once we went to Korea (Korea), South Korea. 我记得有一次，我们去韩国
We were investing in a small boutique. At a meeting (meeting) room, 我们当时在一个会议室商议投资
we had 15 people in front of us, because they had the feeling, to be obliged, 当时我们面前坐着15个人，因为他们感到受需要
to present to the president, vice president, the first vice president... Okay. 给主席、副主席进行展示汇报，常务副主席。。okay？？
Sorry we are only two. Okay it is a cultural issue. “抱歉，我们只有两个人。”“没关系，这是文化差异”
Remember once, that was just after Fukushima, we went to (to) Japan, 记得又一次，在刚刚发生福岛（核电站泄露）事件之后，我们去了日本
and the people were receiving you without jacket and without tie. And we were 所有接待我们的人没有穿着夹克领带
with jacket and tie. And we felt automatically that they were.... Yeah. 我们穿着夹克领结。然后我们不自觉地感受到
They had this bizarre behavior. They were just explaining us, (first) first sentence, 他们的行为显得有些不合常规，他们向我们解释
they were explaining us After Fukushima, the government asked us to (to) 他们解释在福岛事件（核电站泄露）后，政府要求他们
make sure that the heating system is not too high in (in in in in) winter 确保加热系统在冬天不能太热
and not too low in summertime. So therefore we are allowed to work with 在夏天也不能太冷。因此，他们被允许工作不着夹克 ？？逻辑没看懂
out jacket. But they were just asking... basically were asking us could 他们问我们
you leave your jacket on. 是否能继续穿着夹克
So if you don't understand how to behave (in international) in the international world, 如果你进行国际投资，你将难以理解国际世界中的行为
useless to (you to) invest because (you will not) you will not see the 你将不能真正看到进行国际投资的优势
advantage of investing internationally. Because it is not only on paper. 因为这些知识不在书本之中，不是纸上谈兵
It is (it is) real. 而是我们真实的世界