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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 133.03 million (31-08-2020)
Base currency RMB
Unit priceRMB 105.26 per unit
 HKD 0.00 per unit
 USD 9.35 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
2020-06-242020-06-262020-07-031.18N/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% 45.8%

* 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% 9.7%

* 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% 25.7%

* 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
0.1% 0.5% 0.3% 1.5% 2.2% 11% 28.3%

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
0.2% 4.1% 4.5% 3.6% 7.1% 8.6% 20%

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)

2020-09-29105.260.00
2020-09-28105.200.00
2020-09-25105.290.00
2020-09-24105.290.00
2020-09-23105.290.00
2020-09-22105.290.00
2020-09-21105.240.00
2020-09-18105.230.00
2020-09-17105.200.00
2020-09-16105.220.00

Fund Manager Commentary

August Review

China economy continued to recover in August. Both manufacturing and service PMI edged up to move higher above 51% and 55% for the month, supported by activities uptick in manufacturing industry, particularly the high-tech equipment manufacturing as well as service sectors. Export continued to rebound strongly in August as foreign demand further recovered despite the strengthening CNY trend.
The RMB Bond market was down in August, with gradual recovery of fundamentals are keeping interest rates range-bound. Although PBOC still commits to policies openness in supporting the economy and pledged to maintain reasonable liquidity in the financial system; the continuous squeeze of interbank deposit rate together with the increased supply of rate bonds have suppressed fixed income investors sentiment during the month of August. 10yrs government bond yield edged up from 2.97% to 3.02% while short end rates papers sold off by 25bps. The curve bear flattened.
Credit bonds spread tightened 5-20bps and outperformed the rates sell off in August, nonetheless mark-to-market price still softened in Aug due to weaker buying tone in RMB fixed income. Most of the positive return was contributed by the carry of the higher coupon bonds in the portfolio.

 

Outlook

After August correction with yield tested higher, CNY bond at its current valuation is considered much more appealing in the eyes of domestic investors, with bond-stock relative returns back to its historical median level. From international investors perspective, CNY bond is one attractive asset class which is still under allocated, and provides attractive relative value as compare to other asset classes, particularly as China-US bond yield differential widened to historical high of over 240bps.

As we mentioned before, a lot of the economic positivity has been priced in and further policy easing is less likely. However marginal improvement will continue to be seen in pockets of economy e.g. retail sector, construction etc., all in all keeping bond yield range-bound around 3% for 10yrs. 

We see current yield level a good entry point to pick up onshore opportunistic credit exposures in sectors which will likely to benefit from targeted policies support and domestic growth recovery e.g renewable energy, clean transportation, Infrastructure, household electronics manufacturing, retail etc. 

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 31 August 2020.

 


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As of 31 August 2020

Ping An of China SIF - RMB Bond Fund

1.Monthly Fund Factsheet (08-2020)DownloadFile Size: 208.82KB
2.Ping An of China SIF – RMB Bond Fund - Notice to UnitholdersDownloadFile Size: 221.6KB
3.Fund Dividend Composition InformationDownloadFile Size: 541.15KB
4.PRODUCT KEY FACTSDownloadFile Size: 670.69KB
5.EXPLANATORY MEMORANDUMDownloadFile Size: 1MB
6.Interim Report 1 July to 31 Dec 2019DownloadFile Size: 642.61KB
7.Ping An of China SIF - RMB Bond Fund - Notice (Nov 2019)DownloadFile Size: 326.33KB
8.Annual Report (06-2019)DownloadFile Size: 407.06KB
9.Announcement and AddendumDownloadFile Size: 301.71KB
10.Interim Report 1 July to 31 Dec 2018DownloadFile Size: 153.98KB
11.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.