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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 149.89 million (26-02-2021)
Base currency RMB
Unit price
Class A RMB 105.51 per unit
Class A HKD 101.37 per unitClass A (Accumulation) HKD 100.02 per unit
Class A USD 9.83 per unitClass A (Accumulation) USD 9.99 per unit
Dealing frequency Daily (1)
Dividend policy Semi-annual basis for Class A (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:Class A RMB: RMB 10,000
Class A HKD: HKD 10,000
Class A USD: USD 1,000
Class A (Accumulation) RMB: RMB 10,000
Class A (Accumulation) HKD: HKD 10,000
Class A (Accumulation) USD: USD 1,000
Minimum holding:Aggregate minimum value of Units held:
Class A RMB: RMB 10,000
Class A HKD: HKD 10,000
Class A USD: USD 1,000
Class A (Accumulation) RMB: RMB 10,000
Class A (Accumulation) HKD: HKD 10,000
Class A (Accumulation) USD: USD 1,000
Minimum redemption:Aggregate minimum value of Units held:
Class A RMB: RMB 10,000
Class A HKD: HKD 10,000
Class A USD: USD 1,000
Class A (Accumulation) RMB: RMB 10,000
Class A (Accumulation) HKD: HKD 10,000
Class A (Accumulation) USD: USD 1,000
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 (Class A RMB) HK0000079084 ;
(Class A HKD) HK0000096476 ;
(Class A USD) HK0000096484 ;
(Class A (Accumulation) RMB) HK0000688108;
(Class A (Accumulation) HKD) HK0000688116;
(Class A (Accumulation) USD) HK0000688124
Bloomberg Code (Class A RMB) PARRMBA HK ;
(Class A HKD) PARAHKD HK ;
(Class A USD) PARAUSD HK ;
(Class A (Accumulation) RMB) ;
(Class A (Accumulation) HKD) PARAAHK HK;
(Class A (Accumulation) USD)PARAAUS HK
Reuters Code (Class A RMB) LP68090801 ;
(Class A HKD) LP68180641 ;
(Class A USD) LP68180642 ;
(Class A (Accumulation) RMB) ;
(Class A (Accumulation) HKD) ;
(Class A (Accumulation) USD)
Lipper ID (Class A RMB) 68090801 ;
(Class A HKD) 68180641 ;
(Class A USD) 68180642 ;
(Class A (Accumulation) RMB) ;
(Class A (Accumulation) HKD) ;
(Class A (Accumulation) USD)

Dividend Record (3)

Fund Inception Date: 2011-04-28

Record DateEx-DatePayment DateDividend Distribution (per unit)
Class A
RMB
Class A
HKD
Class A
USD
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)


Class A RMB : 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% 48.3%

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

Class A HKD : Calendar Year Performance (%)

2010201120122013*201420152016** Since Fund Launch
N/AN/AN/A5.32%0.03%-0.97%5.17% 17.6%

* 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.

Class A USD : 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%

* 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

Class A RMB : Cumulative Performance (%)

1 month 3 months 6 months YTD 1 year 3 years 5 years
0.3% 0.5% 1.6% 0.9% 2.1% 10.8% 23.8%

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

Class A HKD : 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.

Class A USD : Cumulative Performance (%)

1 month 3 months 6 months YTD 1 year 3 years 5 years
0.3% -0.1% 3.7% 1% 11.5% 7.4% 23.3%

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


Class A (Accumulation) HKD : 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

Class A (Accumulation) USD : 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


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)

2021-04-19105.510.00
2021-04-16105.470.00
2021-04-15105.460.00
2021-04-14105.450.00
2021-04-13105.450.00
2021-04-12105.440.00
2021-04-09105.390.00
2021-04-07105.360.00
2021-04-01105.340.00
2021-03-31105.320.00

Fund Manager Commentary

February Review

China’s CPI inflation picked up from -0.3% in January to -0.2% in February. Food inflation remain subdue while energy inflation likely to boost headline CPI and PPI alongside with global oil prices rebound. Still, overall subdued core CPI and consumer goods PPI reflect a temporary soft patch in consumption domestically. In medium term CPI should be on a gradual uptrend given the improvement of COVID situation and the low base effect. This however does not imply a hawkish PBOC, as they are more likely to continue staying behind the curve in the course of policy normalization.
Onshore RMB bonds yield edged higher by 8bps in the long end in bear steepening fashion in February, mainly on the back of higher inflation fear, tighter onshore liquidity, cautious PBOC tone as well as external drivers such as the 33bps spike of USD rates during the month.
In terms of the credit curve, the short-end performance is generally stable, while credit curve has steepened. Credit sentiment is generally weaker as market worried about refinancing pressure on corporates given China’s higher funding cost y-o-y as well as the marginally tighter onshore liquidity condition. While sporadic cases of onshore defaults also added to the fear selling and underperformances including HY properties, selective LGFVs etc.
The RMB Bond Fund returned circa +0.12% in February^ while the onshore and offshore CNY bonds both returned marginally at loss for the month. The relatively shorter duration of the portfolio helped minimized mark-to-market drag during the yield spike while short end higher yielding credits including selected properties names e.g. Hangzhou Binjiang, Powerlong, Zhenro etc. have contributed to the positive performance via carry.

Outlook

Instead of seeing economic recovery and its associated inflation trend as a one way up street, we share a more conservative view that the recovery will be bumpy and selective to specific sectors and countries. Overall structural factors such as demography, technology advancement etc. which persistently suppress growth and inflation globally have actually intensified rather than reversing their course. Hence fixed income as a more predictable asset class will still be in favor in the coming years, with market volatility providing opportunistic entry points.
RMB bonds supply have been record high in 2020 but is expected to normalize this year given PBOC’s cautiousness on potential bubble risk. Visible deleveraging trend in the past 12mths can be seen in both SOEs and POEs e.g. selective industrial and properties names, which is going to be very conducive for their bond performance this year. Credit differentiation and pricing divergence however will continue to play out as one of the key theme.
We continue to favor some of the structurally important or utilities related SOE sector as well as leaders within their industries e.g. property and consumers sector which has prudent financial policies. The fund will continue remain nimble in terms of rates and credit duration to take advantage of the market volatility.

Note: CNH is the currency symbol for offshore RMB. Offshore RMB bonds are also known as dim sum bonds. 
^ Based on Class A RMB.
Information provided in this factsheet was as of 26 February 2021.

 


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CHINA ORIENT ASSET MANAGEMENT CO LTD 4.33% A 23AUG2029 SHCH6.76%
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FRANSHION BRILLIANT LTD 5.2% S/A 08MAR20216.01%
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VANKE REAL ESTATE HONG KONG CO LTD 3.85% S/A 13JUN20225.39%
FIRST ABU DHABI BANK PJSC 3.5% A 02JUL20254.73%
CNI CAPITAL LTD 3.97% S/A 01NOV20223.98%

As of 26 February 2021

Ping An of China SIF - RMB Bond Fund

1.Monthly Fund Factsheet (02-2021)DownloadFile Size: 205.56KB
2.Interim Report 1 July to 31 Dec 2020DownloadFile Size: 387.87KB
3.Ping An of China SIF – RMB Bond Fund - Notice to Unitholders (Dec 2020)DownloadFile Size: 59.62KB
4.Product Key FactsDownloadFile Size: 184.41KB
5.EXPLANATORY MEMORANDUMDownloadFile Size: 580.8KB
6.Fund Dividend Composition Information_Dec 2020DownloadFile Size: 540.84KB
7.Ping An of China SIF – RMB Bond Fund - Notice to UnitholdersDownloadFile Size: 332.12KB
8.Annual Report (06-2020)DownloadFile Size: 1.6MB
9.Ping An of China SIF – RMB Bond Fund - Notice to UnitholdersDownloadFile Size: 221.6KB
10.Ping An of China SIF - RMB Bond Fund - Notice (Nov 2019)DownloadFile Size: 326.33KB
11.Announcement and AddendumDownloadFile Size: 301.71KB
12.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.