|Fund Manager||Ping An of China Asset Management (Hong Kong) Co. Ltd.|
|Fund manager's name||Elaine HUNG|
|Fund size||RMB 230.08 million (28-02-2017)|
|Unit price||RMB 103.56 per unit|
|HKD 0.00 per unit|
|USD 9.09 per unit|
|Dealing frequency||Daily (1)|
|Dividend policy||Semi-annual basis (2)|
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 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 amount||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 (%)
|2009||2010||2011*||2012||2013||2014||2015||2016||Since Fund Launch|
* Since fund inception on 28 April 2011 to 30 December 2011.
HKD share class: Calendar Year Performance (%)
|2009||2010||2011||2012||2013*||2014||2015||2016**||Since Fund Launch|
* 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 (%)
|2009||2010||2011||2012||2013*||2014||2015||2016||Since Fund Launch|
* Since 1 Mar 2013 to 31 December 2013.
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 (%)
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|
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
China's manufacturing PMI rose to 51.6 in February from 51.3 in January. The rise was led by a strong production index and new orders index. It suggests manufacturing activity growth momentum likely picked up amid positive market sentiment. The export orders and import indices continued to improve, painting a solid trade picture near term. On CNH bond space, there was a primary issuance in February – Ocean Wealth Ltd's 3-year bond where China Orient Asset Management is the obligor. The deal was well supported in both primary market and secondary market.
The dim sum bond market was slightly positive in February. The FTSE BOCHK offshore RMB bond index has reported a total return of +0.48% in the past month. On a month-over-month basis, overall average yield has tightened from 4.73% to 4.69% while overall high yield bonds have tightened from 6.62% to 6.25% and investment grade bonds were almost flat. At the same time, the average yield for Chinese sovereign bond has widened from 4.34% to 4.36%.
Renminbi deposits in Hong Kong decreased to RMB 522.48 billon at the end of January from RMB 546.71 billon at the end of December. The total remittance of RMB for cross-border trade settlement amounted to RMB 271.03 billion in January compared to RMB 287.63 billion in December. PBOC USD-CNY fixing ended the month with 0.24% depreciation, while the USD-CNH almost flat at -0.04% by the end of February.
Despite high uncertainty associated with the Trump administration's trade policy, the Chinese economy appears to have stayed robust at the beginning of 2017, as evidenced by solid PMIs, better exports and imports in January and strong credit expansion. In our view, the above-mentioned indicators point to solid industrial activity and investment growth in Q1. On strategy, RMB 142 billion of CNH bonds will mature in 2017, representing 30% of the total outstanding amount (excluding CDs). Among corporate bonds, we favour short-dated high-yield property names as a big part of Chinese corporate bonds will mature in the first half of 2017. However, short-term funding costs remain high. The high-yield property names provide around 8% yield, which is enough to cover the funding cost. We think reinvestment needs will support the secondary market especially for 2018s bonds and any refinancing needs from issuers will be well supported too.
Note: CNH is the currency symbol for offshore RMB. Offshore RMB bonds are also known as dim sum bonds.
Top Ten Holdings
|NEW WORLD CHINA LAND LTD 5.5% S/A 06FEB2018||9.60%|
|TIMES PROPERTY HLDGS LTD 10.375% S/A 16JUL2017||9.25%|
|LAI FUNG HLDGS LTD 6.875% S/A 25APR2018||9.05%|
|HAIKOU MEILAN INTL AIRPORT INVESTMENT LTD 7.25% S/A 18JUN2018||8.71%|
|INTL OFFSHORE TWO PTE LTD 7.5% S/A 01APR2018||8.49%|
|FANTASIA HLDGS GROUP CO LTD 9.5% S/A 04MAY2019||5.75%|
|LAI SUN GARMENT INTL FINANCE 2014 LTD 7.7% S/A 24JUL2018||5.70%|
|OCEAN WEALTH II LTD 6.5% S/A 27FEB2020||5.30%|
|ROSY CAPITAL GLOBAL LTD 5.25% S/A 30JUL2018||4.77%|
|ITNL INTL PTE LTD 8% S/A 17JUL2017||4.31%|
As of 28 February 2017
Ping An of China SIF - RMB Bond Fund
|1.||Monthly Fund Factsheet (02-2017)||Download||File Size: 205k|
|2.||Explanatory Memorandum||Download||File Size: 2278k|
|3.||Announcement and Addendum||Download||File Size: 309k|
|4.||Product Key Facts||Download||File Size: 220k|
|5.||Annual Report (06-2016)||Download||File Size: 579k|
|6.||Interim Report (12-2016)||Download||File Size: 201k|
|7.||Fund Dividend Composition Information (19-12-2016)||Download||File Size: 295k|
(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.