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Hong Kong Authorized Unit Trusts

Ping An of China SIF - RMB Bond Fund

Risk Disclosure

Investment Risk

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.

 

Liquidity Risk

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 Information

Fund ManagerPing An of China Asset Management (Hong Kong) Co. Ltd.
Inception date28-Apr-11
Fund sizeRMB 233.08million (31-08-2017)
Base currencyRMB
Unit priceRMB 105.18 per unit
 HKD 0.00 per unit
 USD 9.62 per unit
Dealing frequencyDaily (1)
Dividend policySemi-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

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. 


General Information

Minimum investment amountRMB10,000 (initial), RMB10,000 (additional)
Minimum holdingUnits of aggregate minimum value of RMB10,000
Minimum redemption amountUnits of aggregate minimum value of RMB10,000
Subscription feeUp to 5%
Switching fee1% (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 fee1% p.a.
Financial year end30 June
TrusteeBOCI-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 Date Ex-Date Payment Date Dividend Distribution (per unit)
      RMB HKD USD
2017-06-09 2017-06-12 2017-07-05 1.70 N/A 0.15
2016-12-15 2016-12-16 2017-01-13 2.40 N/A 0.21
2016-06-10 2016-06-13 2016-07-07 1.60 1.48 0.15
2015-12-16 2015-12-17 2016-01-13 2.30 2.14 0.21
2015-06-12 2015-06-15 2015-07-09 1.55 1.52 0.15
2014-12-11 2014-12-12 2015-01-07 2.30 2.26 0.22
2014-06-13 2014-06-16 2014-07-10 2.20 2.15 0.21
2013-12-12 2013-12-13 2014-01-08 1.80 1.81 0.18
2013-06-13 2013-06-14 2013-07-10 2.45 3.10 0.40
2012-12-13 2012-12-14 2013-01-09 1.10 N/A N/A
2012-06-14 2012-06-15 2012-07-10 1.80 N/A N/A
2011-12-14 2011-12-15 2012-01-09 1.00 N/A N/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 (%)

200920102011*20122013201420152016 Since Fund Launch
N/AN/A-3.8%7.5%4.9%2.8%4.6%7.0% 31.2%

* Since fund inception on 28 April 2011 to 30 December 2011.


HKD share class: Calendar Year Performance (%)

20092010201120122013*201420152016** Since Fund Launch
N/AN/AN/AN/A5.3%0.0%-1.0%5.2% 9.7%

* Since 1 Mar 2013 to 31 December 2013.

** 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 (%)

20092010201120122013*201420152016 Since Fund Launch
N/AN/AN/AN/A5.3%0.1%-1.0%0.9% 17.1%

* Since 1 Mar 2013 to 31 December 2013.

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 month3 months6 months YTD 1 year3 years5 years
0.4%1.4%3.1% 5.2% 5.3%17.5%30.8%

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


HKD share class: Cumulative Performance (%)

YTD
0%

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


USD share class: Cumulative Performance (%)

1 month3 months6 months YTD 1 year3 years
1.5%5.5%7.6% 11.2% 6.7%9.3%

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.

Fund Manager Commentary

August Review
 

China's manufacturing PMI in August was at 51.7, which was slightly better than market expectations of 51.3, helped by the growth in export volume. China economic data remained solid despite the central bank's efforts to deleverage the financial system. In August 2017, the offshore RMB bond market was relatively quiet with around RMB 10.6 bn of primary issuance, most of which were in the form of CDs and private placements.
 

The dim sum bond market remained robust in August. The RMB continued to appreciate last month and this boded well for the dim sum bond market. The FTSE BOCHK offshore RMB bond index reported a total return of 0.48% in the past month.  On a month-on-month basis, overall average yield has tightened from 4.26% to 4.17% while overall high yield bonds have tightened from 5.31% to 5.19% and investment grade bonds have tightened from 4.17% to 4.09%. At the same time, the average yield for Chinese sovereign bonds has tightened from 4.06% to 4.01%.  
 

Renminbi deposits in Hong Kong slightly increased to RMB 534.73 billon at the end of July, up from RMB 526.08 billon at the end of June.  The total remittance of RMB for cross-border trade settlement amounted to RMB 329.57 billion in July, down from RMB 372.48 billion in June.  PBOC USD-CNY fixing ended the month with 1.89% appreciation, while CNH appreciated 1.92% against USD in August.

 


Outlook

 

The RMB continued to show its strength in August amid a weaker US dollar. Lower than expected US payroll data would continue to weaken USD. China has demonstrated stable growth despite tighter monetary conditions. We expect the government to focus on stability ahead of the 19th National Congress of the Communist Party of China in October. 

We continue to expect a relatively strong RMB for the remainder of the year. Offshore RMB deposits in Hong Kong have shown stabilization and started to rebound. We believe these are positive conditions for the offshore RMB bond market. However, we remain cautious on uncertainty in the global markets, especially with geopolitical tensions in North Korea and the Fed's upcoming balance sheet reduction plans. Uncertainties associated with Trump's policies alongside with US-China tensions would affect market sentiment and risk aversion. Overall, we remain constructive on the RMB bond market and will continue to gradually increase our allocation to investment grade bonds.

 

 

Note:CNH is the currency symbol for offshore RMB. Offshore RMB bonds are also known as dim sum bonds.


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As of 31 August 2017

Ping An of China SIF - RMB Bond Fund

1.Monthly Fund Factsheet (08-2017)DownloadFile Size: 181k
2.Announcement - Clarification on Performance Information on Monthly Fund Factsheet of the Sub-FundDownloadFile Size: 180k
3.Explanatory MemorandumDownloadFile Size: 2116k
4.Announcement and AddendumDownloadFile Size: 309k
5.Product Key FactsDownloadFile Size: 76k
6.Annual Report (06-2016)DownloadFile Size: 579k
7.Interim Report (12-2016)DownloadFile Size: 201k
8.Fund Dividend Composition Information (12-06-2017)DownloadFile Size: 293k

(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 in 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 website is obtained and prepared from sources which Ping An of China Asset Management (HK) Co. Ltd (“PAAMC HK”) believes to be reliable. For information sourced externally (as disclosed), PAAMC HK believes that such information is accurate and complete. Information provided is for reference only and does not constitute any offer. Investment involves risks. Investors should not only base investment decisions on this website alone. The past performance is not indicative of future performance. The unit price of the Fund may rise or fall and investors may lose some or all of their investment. The investor should refer to the Fund’s explanatory memorandum (including the risk factors and charges stated therein) and product key facts statement to get further details and where necessary seek professional advice before making any investment decision and should not only base it on this website alone. This website is hosted by Ping An of China Asset Management (Hong Kong) Co. Ltd. and has not been reviewed by the SFC.