Ping An of China SIF – RMB Bond Fund (the "Fund") principally invest in RMB denominated income instruments which may fall in value and therefore your investment in the Fund may suffer loss.
The price of the Fund can be volatile and can go down substantially within a short period of time. In the worst case scenario, the value of the Fund may be worth substantially less than the original amount you have invested and in an extreme case could be worth nothing.
The Fund is an investment product and is NOT equivalent to bank deposits, therefore there is no guarantee in respect of repayment of principal.
There is no guaranteed dividend payment.
The investment decision is yours. You should not invest in the Fund unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives. Investors should not only base their decision on this website alone. The investor should refer to the Fund's explanatory memorandum (including the risk factors and charges stated therein) to get further details.
RMB Currency Risk
RMB is not a freely convertible currency and is subject to foreign exchange control policies and restrictions on the repatriation of funds out of mainland China. There is no guarantee that RMB will not depreciate. Investors have to understand that there is a limitation on the daily conversion amount of RMB in Hong Kong and this may have an adverse effect on the return for investors.
Credit Risk of Counterparties
The Fund is exposed to the credit/insolvency risk of the issuers of the RMB Income Instruments† and bank deposits. RMB Income Instruments that the Fund invests in may or may not be of investment grade. The Fund is fully exposed to the credit/insolvency risk of its counterparties as an unsecured creditor.
Interest Rate Risk
An increase in interest rates may adversely affect the value of the RMB Income Instruments held by the Fund, causing the Fund to suffer a loss in its investments if it disposes of the RMB Income Instruments before their maturity.
Risk of Limited Pool of Investments
The quantity of RMB Income Instruments issued or distributed outside mainland China that is available to the Fund is currently limited. The Fund may hold a significant portion of assets in bank deposits if there are insufficient RMB Income Instruments for the Fund to invest in. This may adversely affect the Fund's return and performance.
For RMB Income Instruments issued or listed outside mainland China, there may not be an active secondary market. The Manager may have to liquidate such investments at a discount to meet redemption requests. The bid and offer spread of the price of RMB Income Instruments may be large, so the Fund may incur significant trading and realization costs and may suffer losses when selling such investments.
Risks Associated With Distributions Out Of Capital
It is the current intention of the Manager to make distributions out of the net income (the income net expenses). However, at the Manager's discretion, distributions may be paid (1) out of capital of the Fund; or (2) out of gross income while charging / paying all or part of the Fund's fees and expenses to / out of capital of the Fund. Unitholders should note that the distributions paid out of capital or effectively out of capital amount to a return or withdrawal of part of a Unitholder's original investment or from any capital gains attributable to that original investment. Any distributions involving payment of distributions out of the Fund's capital or payment of distributions effectively out of the Fund's capital may result in an immediate reduction of the Net Asset Value per Unit. The Manager may amend the distribution policy subject to SFC's prior approval and by not giving less than one month's prior notice to Unitholders.
† For the definition of RMB Income Instruments, please refer to the Explanatory Memorandum of the Fund.
|Fund Manager||Ping An of China Asset Management (Hong Kong) Co. Ltd.|
|Fund size||RMB 161.8 million (30-11-2019)|
|Unit price||RMB 105.27 per unit|
|HKD 0.00 per unit|
|USD 9.20 per unit|
|Dealing frequency||Daily (1)|
|Dividend policy||Semi-annual basis (2)|
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.
The 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.
|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|
|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|
Fund Inception Date: 2011-04-28
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 (%)
|2010||2011*||2012||2013||2014||2015||2016||2017||2018||Since Fund Launch|
* Since fund inception on 28 April 2011 to 31 December 2018.
HKD share class: Calendar Year Performance (%)
|2010||2011||2012||2013*||2014||2015||2016**||Since Fund Launch|
* 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 (%)
|2010||2011||2012||2013||2014||2015||2016||2017||2018||Since Fund Launch|
* Since 1 Mar 2013 to 31 December 2018.
RMB share class: Cumulative Performance (%)
|1 month||3 months||6 months||YTD||1 year||3 years||5 years|
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|
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|
Total return performance is based on NAV-to-NAV with dividend invested (if any), in USD.
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.
Fund Manager Commentary
Leading growth indicators continued to surprise on the upside e.g. Both Caixin and official Manufacturing PMI came out better than market expectation in month of November. Services PMI also indicated strong expansionary momentum at 54.4, suggesting resilient domestic consumption despite overhanging uncertainties around trade war. Consumer price index gradually rose from Q1 below 2% to as high as 4.5% yoy in November, as impact of first round tariff and climbing pork and fuel prices filtered through.
Credit growth as indicated by the Total Social Financing (TSF) and Loan growth, which tend to be highly correlated with China’s growth has recovered somewhat from October, the lowest growth of the year but remains at lower than average trend. The cautious tone of credit risk reduction in both the financial and corporate sectors has somewhat casted shadow on future growth confidence.
Despite the push and pull factors of the economy, PBOC’s policy direction remains unwavering, as they lowered benchmark 1yr and 5yrs Loan Prime Rate (LPR) by 5bps to 4.15% and 4.8% respectively in November. Market read it as a continuation of accommodative monetary policy stance going into year end. Supported by the easing policy as well as weaker equities sentiment in November, onshore rates rallied by 10-20bps in bull flattening fashion while offshore CNH bonds rallied by 5bps.
The fund switched from low yielders into higher carry names such as Zhenro Properties Group, Beijing Enterprise Group, and bank’s subordinated debt positioning for next year.
Going into year end, we do not see major policy shift of the Chinese government or directional changes of the macro fundamental trends e.g. the moderating trajectory of growth, temporarily spike of consumer prices and softening export at a margin. Key market drivers which defined the tone and directional movement this year have not changed either, including the accommodative monetary policy stance of PBOC, the supportive fiscal policies, allowing credit differentiation and continue opening up of capital markets. All these factors are conducive for a stable FX environment and provide favorable backdrop for Chinese credits and CNY denominated fixed income among all other asset classes.
The only uncertainty which is here to stay going into 2020 is the trade negotiation with the US. USDCNY has moved up and down as the trade news developed, however the base case market believes is still possible to have a friendly deal to be agreed and avoid additional hostile tariffs. With existing 7.5% and 25% tariff impact mostly priced in and the most likely strategy of kicking the remaining cans down the road, we think there could be potential upside surprise for CNY to strengthen against the USD in near term.
We expect the low yield environment will continue to support credit spread tightening in 2020. Credit supply is seasonally strong in Q1 and hence the fund will continue to fine tune position towards end of the year and save buying power for deployment next year.
Note: CNH is the currency symbol for offshore RMB. Offshore RMB bonds are also known as dim sum bonds.
Top Ten Holdings
|OCEAN WEALTH II LTD 6.5% S/A 27FEB2020||7.46%|
|INDUSTRIAL & COMMERCIAL BANK OF CHINA LTD 6% A PERP REGS (PREFERENCE SHARES)||7.43%|
|SHIMAO PROPERTY HLDGS LTD 5.75% S/A 15MAR2021||6.34%|
|AGRICULTURAL DEVELOPMENT BANK OF CHINA CO LTD 3.75% A 25JAN2029 CDC||6.19%|
|CHINA ORIENT ASSET MANAGEMENT CO LTD 4.33% A 23AUG2029 SHCH||6.19%|
|CHINA STATE RAILWAY GROUP CO LTD 4.1% A 25JUL2039 CDC||6.15%|
|FRANSHION BRILLIANT LTD 5.2% S/A 08MAR2021||5.67%|
|VANKE REAL ESTATE HONG KONG CO LTD 3.85% S/A 13JUN2022||4.98%|
|LENOVO GROUP LTD 4.95% S/A 10JUN2020||4.97%|
|BANK OF CHINA LTD/JOHANNESBURG 4.88% S/A 20APR2020||4.97%|
As of 30 November 2019
Ping An of China SIF - RMB Bond Fund
|1.||Monthly Fund Factsheet (11-2019)||Download||File Size: 231.16KB|
|2.||Prospectus||Download||File Size: 523.83KB|
|3.||Product Key Facts||Download||File Size: 599.53KB|
|4.||Fund Dividend Composition Information||Download||File Size: 615.92KB|
|5.||Ping An of China SIF - RMB Bond Fund - Notice (Nov 2019)||Download||File Size: 326.33KB|
|6.||Annual Report (06-2019)||Download||File Size: 473.19KB|
|7.||Fund Dividend Composition Information||Download||File Size: 372.78KB|
|8.||Announcement and Addendum||Download||File Size: 301.71KB|
|9.||Interim Report 1 July to 31 Dec 2018||Download||File Size: 153.98KB|
|10.||RMB Bond Fund – Notice – Change of Investment Objective and Policy and Other Updates||Download||File Size: 249.11KB|
|11.||Announcement - Clarification on Performance Information on Monthly Fund Factsheet of the Sub-Fund||Download||File Size: 179.42KB|
(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.