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Hong Kong Authorized Unit Trusts

Ping An of China SIF - RMB Bond Fund

Risk Disclosure

Ping An of China SIF – RMB Bond Fund (the “Fund”) principally invests in RMB denominated Income Instruments (as defined below).

The value of the Fund can be volatile and can go down substantially within a short period of time. It is possible that a certain amount or the entirety of your investment could be lost.  The Fund is an investment product and is not equivalent to bank deposits. There is no guarantee in respect of repayment of principal. 

The Fund may invest in (i) debt securities rated below investment grade or unrated; (ii) debt securities issued or guaranteed by governments or authorities; (iii) debt instruments with loss-absorption features which are subject to the risk of being written down or converted to shares upon the occurrence of trigger events resulting in a significant or total reduction in value; (iv) urban investment bonds issued by Chinese local government financing vehicles; and (v) asset-based securities, all of which are typically subject to higher default, volatility and liquidity risks.  The Fund is also subject to other risk associated with debt securities (e.g. credit/counterparty, interest rate, credit rating and downgrading, valuation, credit rating agency, convertible bond and dim sum bond market risks).

The Fund’s investments are concentrated in RMB Income Instruments (as defined below) and in China which is an emerging market. The value of the Fund may be more volatile than that of a fund having a more diverse portfolio, and more susceptible to adverse event affecting the Chinese markets. Investing in emerging markets may involve increased risks, such as liquidity, currency, political, economic, legal, taxation, settlement and custody risks and higher volatility. The Fund is also subject to RMB currency and conversion risks and China tax risks.

The Fund may use derivatives for hedging or investment purposes.  Use of derivatives may expose the Fund to significant losses.

There is no guaranteed dividend payment. Distributions may be paid out of capital which amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investments and may result in an immediate reduction of the NAV per unit.

The investment decision is yours. You should not base your investment decision on this material alone. Please refer to the Fund’s explanatory memorandum and product key facts statement (including the risk factors and charges stated therein) for further details.

For the definition of RMB Income Instruments, please refer to the Explanatory Memorandum of the Fund.

Fund Information

Fund Manager Ping An of China Asset Management (Hong Kong) Co. Ltd.
Inception date 28-Apr-11
Fund size RMB 165.91 million (30-11-2020)
Base currency RMB
Unit priceRMB 104.96 per unit
 HKD 101.29 per unit
 USD 9.84 per unit
Dealing frequency Daily (1)
Dividend policy Semi-annual basis (2)

Fund Objective

Ping An of China SIF-RMB Bond Fund (the "Fund") seeks to provide total return comprised of interest income and capital growth by investing principally in RMB denominated fixed or floating rate debt securities.

Fund Strategy

1The Manager seeks to achieve investment returns through active management of the major risks associated with RMB Income Instruments: duration, term structure, sector allocation, product selection and credit rating where applicable.

The Manager will construct the portfolio to take advantage of the expected change in the general level of RMB interest rates based on expectations of global and China's macroeconomic cycle, fiscal policy and monetary policy. The portfolio will consist of RMB Income Instruments of different maturities and credit quality and bank deposits, and each instrument in the portfolio will be selected based on extensive in-house and external fundamental research.

The Fund will not invest in any derivatives or structured deposits or products.

The Manager currently does not intend to enter into any securities lending or repurchase transactions in respect of the Fund.


General Information

Minimum investment amount RMB10,000 (initial), RMB10,000 (additional)
Minimum holding Units of aggregate minimum value of RMB10,000
Minimum redemption mount Units of aggregate minimum value of RMB10,000
Subscription fee Up to 5%
Switching fee 1% (Switching of Units is subject to the limitations as set out in the Explanatory Memorandum and that no switching is allowed to be made between Units denominated in RMB of the Sub-Fund and Units denominated in another currency of the Sub-Fund or other Sub-Funds (if any).)
Management fee 1% p.a.
Financial year end 30 June
Trustee BOCI-Prudential Trustee Limited

Codes

ISIN Code (RMB Class) HK0000079084; (HKD Class) HK0000096476; (USD Class) HK0000096484
Bloomberg Code (RMB Class) PARRMBA HK; (HKD Class) PARAHKD HK ; (USD Class) PARAUSD HK
Reuters Code (RMB Class) LP68090801; (HKD Class) LP68180641; (USD Class) LP68180642
Lipper ID (RMB Class) 68090801; (HKD Class) 68180641; (USD Class) 68180642

Dividend Record

Fund Inception Date: 2011-04-28

Record DateEx-DatePayment DateDividend Distribution (per unit)
RMBHKDUSD
2020-12-172020-12-182021-01-081.51N/A0.14
2020-06-242020-06-262020-07-031.18N/A0.10
2019-12-272019-12-302020-01-091.6N/A0.14
2019-06-242019-06-252019-07-053.24N/A0.23
2018-12-282018-12-312019-01-211N/A0.09
2018-06-082018-06-112018-07-061.60N/A0.15
2017-12-142017-12-152018-01-122.40N/A0.22
2017-06-092017-06-122017-07-051.70N/A0.15
2016-12-152016-12-162017-01-132.40N/A0.21
2016-06-102016-06-132016-07-071.601.480.15
2015-12-162015-12-172016-01-132.302.140.21
2015-06-122015-06-152015-07-091.551.520.15
2014-12-112014-12-122015-01-072.302.260.22
2014-06-132014-06-162014-07-102.202.150.21
2013-12-122013-12-132014-01-081.801.810.18
2013-06-132013-06-142013-07-102.453.100.40
2012-12-132012-12-142013-01-091.10N/AN/A
2012-06-142012-06-152012-07-101.80N/AN/A
2011-12-142011-12-152012-01-091.00N/AN/A

Distribution figures represent past distributions declared and paid for by the fund. There is no guarantee that any distributions will be declared in the future, or that if declared, the amount of any distribution will remain constant or increase over time.

       

 - Dividend (ex-date)


RMB share class: Calendar Year Performance (%)

20102011*20122013201420152016201720182019 Since Fund Launch
N/A-3.84%7.45%4.93%2.83%4.56%6.98%5.86%3.57%5.03% 47.5%

* Since fund inception on 28 April 2011 to 31 December 2019.

HKD share class: Calendar Year Performance (%)

2010201120122013*201420152016** Since Fund Launch
N/AN/AN/A5.32%0.03%-0.97%5.17% 17.5%

* Since 1 Mar 2013 to 31 December 2016.
** Performance data of Share Class A HKD is as of 28 September 2016, as Share Class A HKD was fully redeemed on 28 September 2016.

USD share class: Calendar Year Performance (%)

2010201120122013201420152016201720182019 Since Fund Launch
N/AN/AN/A5.25%0.10%-1.01%0.94%13.24%-1.96%3.84% 34.2%

* Since 1 Mar 2013 to 31 December 2019.

Note:

  • Past performance information is not indicative of future performance. Investors may not get back the full amount invested
  • The computation basis of the performance is based on the calendar year end, NAV-To-NAV, with dividend reinvested
  • These figures show by how much the Sub-Fund increased or decreased in value during the calendar year being shown. Performance data has been calculated in RMB including ongoing charges and excluding subscription fee and redemption fee you might have to pay
  • Where no past performance is shown there was insufficient data available in that year to provide performance

RMB share class: Cumulative Performance (%)

1 month 3 months 6 months YTD 1 year 3 years 5 years
0.5% 1% 1.4% 0.4% 2.3% 11.4% 28%

Total return performance is based on NAV-to-NAV with dividend invested (if any), in RMB.

HKD share class: Cumulative Performance (%)

1 month 3 months 6 months YTD 1 year 3 years 5 years
N/A N/A N/A N/A N/A N/A N/A

Total return performance is based on NAV-to-NAV with dividend invested (if any), in HKD.

USD share class: Cumulative Performance (%)

1 month 3 months 6 months YTD 1 year 3 years 5 years
1.5% 4.2% 9.8% 1.1% 9.2% 10.4% 30.8%

Total return performance is based on NAV-to-NAV with dividend invested (if any), in USD.

Note:
The performance quoted represents past performance of the Fund. Investment return and principal value of an investment will fluctuate so that an investor's units, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Past performance may not be repeated and is no guide for future returns.

Date

NAV/Unit (RMB)

Dividend payout (ex-date)

2021-01-21104.960.00
2021-01-20104.930.00
2021-01-19104.890.00
2021-01-18104.880.00
2021-01-15104.910.00
2021-01-14104.950.00
2021-01-13104.900.00
2021-01-12104.870.00
2021-01-11104.860.00
2021-01-08104.820.00

Fund Manager Commentary

November Review

A very strong set of November PMI data. The manufacturing PMI climbed from 51.4 to 52.1, while the non-manufacturing one edged up from 56.2 to 56.4. Both new order and production indices picked up to the highest level this year. The solid trade momentum looks set to continue, as reflected in the improvements in new export orders. Meanwhile, the service sector has continued to benefit from activity normalization, suggesting easing disinflationary pressure.
PBOC conducted surprised 1yr MLF liquidity injection of CNY200bn in late-November, in addition to the norm of one batch per month to roll over maturity, resulting in additional liquidity to sooth the short squeeze in within the banking system and keeping a lid on the recent rapid spike of borrowing cost as reflected in the 17bps higher long end bond yields at one point. Yield stabilized and came down post PBOC announcement with 10yrs CGB close the month at 3.27%.
The default in payment by local SOE Yongcheng Coal & Electricity has caused risk sentiment to weaken in both HY and IG Chinese credits. The incident was considered resolved with the help of Financial Stability and Development Committee stepping in, nonetheless credit differentiation and proper pricing of default risk are once again reflected in wider credit spreads.

Despite the higher yield and widening credit spread in Nov, the RMB Bond Fund return marginally positive at +0.02%. The defensiveness was mostly thanks to the carry of the higher coupon papers including some of the Chinese properties e.g. Zhenro, CIFI, Shuion etc.

 

Outlook

In December month, onshore liquidity will likely face pressure as refinancing need is large with CNY1.97 trn NCD maturing. PBOC’s support is expected to prevail in order to provide long-term funding to stabilize the market on top of the seasonal fiscal deposit release which will come only in the 2nd half of Dec. Lowering financing costs for enterprises in order to support economic recovery is still going to be the main policy direction going into the year of 2021, on top of other goals such as risk prevention and keeping inflation manageable.
Despite the strong recovery pace seen in 2020, the Chinese economy is not completely immune from external risks, as pandemic is still spreading in rest of the world, and the political tension with western countries has yet to see de-escalation. Looming debt bubbles and stretched fiscal condition post higher default risk at both companies and sovereign levels globally. Investors need to stay vigilant against the potential drawback in risk appetite. On the other hand, any signs of having these issues potentially resolved e.g. successful deployment of vaccine to large population would be a very positive drivers for risk on positioning into 2021.
Our fund will continue to maintain a good balance between HY and IG credit, and look for onshore investment opportunities in growing sectors e.g. renewables, power, retail, infrastructures etc.. The fund is having an average duration of 3.6yrs, which we think is best position for potential bull steepening in coming month after November short squeeze normalizes.

Note: CNH is the currency symbol for offshore RMB. Offshore RMB bonds are also known as dim sum bonds.
Information provided in this factsheet was as of 30 November 2020.

 


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As of 30 November 2020

Ping An of China SIF - RMB Bond Fund

1.Monthly Fund Factsheet (11-2020)DownloadFile Size: 176.59KB
2.Ping An of China SIF – RMB Bond Fund - Notice to Unitholders (Dec 2020)DownloadFile Size: 59.62KB
3.Product Key FactsDownloadFile Size: 184.41KB
4.EXPLANATORY MEMORANDUMDownloadFile Size: 521.38KB
5.Fund Dividend Composition Information_Dec 2020DownloadFile Size: 540.84KB
6.Ping An of China SIF – RMB Bond Fund - Notice to UnitholdersDownloadFile Size: 332.12KB
7.Annual Report (06-2020)DownloadFile Size: 1.6MB
8.Ping An of China SIF – RMB Bond Fund - Notice to UnitholdersDownloadFile Size: 221.6KB
9.Interim Report 1 July to 31 Dec 2019DownloadFile Size: 642.61KB
10.Ping An of China SIF - RMB Bond Fund - Notice (Nov 2019)DownloadFile Size: 326.33KB
11.Announcement and AddendumDownloadFile Size: 301.71KB
12.Interim Report 1 July to 31 Dec 2018DownloadFile Size: 153.98KB
13.RMB Bond Fund – Notice – Change of Investment Objective and Policy and Other UpdatesDownloadFile Size: 249.11KB

(1) The Fund will have dealing on any Business Day.
(2) Currently June and December. Dividend distribution is subject to the manager's discretion, and there is no guarantee on any minimum dividend payment amount.

Ping An of China SIF – RMB Bond Fund (the “Fund”), a sub-fund of Ping An of China Select Investment Fund Series, has been authorized by the Securities and Futures Commission of Hong Kong (“SFC”) (SFC authorization is not an official recommendation or endorsement of the Fund nor does it guarantee the commercial merits of the Fund or its performance. It does not mean the Fund is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors). Certain information contained in this fact sheet is obtained and prepared from sources which Ping An of China Asset Management (Hong Kong) Co. Ltd (“PAAMC”) believes to be reliable. For information sourced externally (as disclosed), PAAMC believes that such information is accurate and complete. This fact sheet is for your information and reference only, and does not constitute an offer. Investment involves risks. Investors should not only base investment decisions on this material alone. The past performance is not indicative of future performance. The price of the Fund may rise or fall and investors may lose some or all of their investment. This material is issued by PAAMC and has not been reviewed by the SFC.