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Risk Disclosure

Investment involves risks. Please refer to the Explanatory Memorandum for details including the risk factors.
 

1. Investment risk
  • The Fund's investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Fund may suffer losses. The Fund is not a bank deposit and there is no guarantee of the repayment of principal.

2. Concentration risk regarding investment in money market instruments and debt securities

  • The Fund will invest primarily in money market instruments and debt securities. The Fund is therefore likely to be more volatile than a broad-based fund that adopts a more diversified strategy.

3. Risks associated with money market instruments and debt securities

  • Money market instruments risk: The Fund will invest significantly in money market instruments, which are not risk-free. Investing in these money market instruments or in the Fund is not the same as placing funds on deposit with a bank or deposit-taking company. As the Fund invests significantly in money market instruments which typically have short maturities, it means the turnover rates of the Fund's investments may be relatively high and the transaction costs incurred as a result of the purchase or sale of short-term instruments may also increase which in turn may have a negative impact on the NAV of the Fund.
  • Credit / Counterparty risk: The Fund is exposed to the credit and default risk of issuers of the money market instruments and debt securities that the Fund may invest in.
  • Interest rate risk: Investment in the Fund is subject to interest rate risk. In general, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise.
  • Credit rating and downgrading risk: Credit ratings assigned by rating agencies are subject to limitations and do not guarantee the creditworthiness of the security and/or issuer at all times. The credit rating of a money market instrument or debt security or its issuer may subsequently be downgraded. In the event of such downgrading, the value of the Fund may be adversely affected. The manager may or may not be able to dispose of the money market instruments or debt securities that are being downgraded.
  • Credit rating agency risk: The credit appraisal system in mainland China and the rating methodologies employed in mainland China may be different from those employed in other markets. Credit ratings given by mainland China rating agencies may therefore not be directly comparable with those given by other international rating agencies.
  • Sovereign debt risk: The Fund's investment in securities issued or guaranteed by governments may be exposed to political, social and economic risks. In adverse situations, the sovereign issuers may not be able or willing to repay the principal and/or interest when due or may request the Fund to participate in restructuring such debts. The Fund may suffer significant losses when there is a default of sovereign debt issuers.
  • Valuation risk: Valuation of the Fund's investments may involve uncertainties and judgmental determinations. If such valuation turns out to be incorrect, this may affect the NAV calculation of the Fund.
  • Volatility and liquidity risk: The money market instruments and debt securities in the emerging markets may be subject to higher volatility and lower liquidity compared to more developed markets. The prices of securities traded in such markets may be subject to fluctuations. The bid and offer spreads of the price of such securities may be large and the Fund may incur significant trading costs and losses may be suffered.

4. Risks associated with bank deposits

  • Bank deposits are subject to the credit risks of the relevant financial institutions. The Fund may also place deposits in non-resident accounts (NRA) and offshore accounts (OSA) with banks in the People's Republic of China ("PRC"). The Fund's deposit may not be protected by any deposit protection schemes, or the value of the protection under the deposit protection schemes may not cover the full amount deposited by the Fund. Therefore, if the relevant financial institution defaults, the Fund may suffer losses as a result.

5. Risks associated with Bond Connect

  • Investing in debt securities via Bond Connect is subject to regulatory risks and various risks such as volatility risk, liquidity risk, settlement and counterparty risk as well as other risk factors typically applicable to debt securities. The relevant rules and regulations on investment via Bond Connect are subject to change which may have potential retrospective effect. In the event that the relevant PRC authorities suspend account opening or trading on Bond Connect, the Fund's ability to invest via Bond Connect will be adversely affected. In such event, the Fund's ability to achieve its investment objective will be negatively affected.

6. PRC tax risks

  • By investing in the PRC inter-bank bond market, the Fund may be at risk of being subject to PRC taxes. There is a possibility that the current tax laws, rules, regulations and practice in the PRC and/or the current interpretation or understanding thereof may change in the future and such change(s) may have retrospective effect. The Fund could become subject to additional taxation that is not anticipated as at the date hereof or when the relevant investments are made, valued or disposed of. Any of those changes may reduce the income from, and/or the value of, the relevant investments in the Fund. No PRC capital gains tax provision will be made regarding the investments in PRC debt securities by the Fund made via Bond Connect.

7. Risks relating to securities lending transactions

  • Securities lending transactions may involve the risk that the borrower may fail to return the securities lent out in a timely manner and the value of the collateral may fall below the value of the securities lent out.

8. Risks relating to sale and repurchase agreements

  • In the event of the failure of the counterparty with which collateral has been placed, the Fund may suffer loss as there may be delays in recovering collateral placed out or the cash originally received may be less than the collateral placed with the counterparty due to inaccurate pricing of the collateral or market movements.

9. Risks relating to reverse repurchase agreements

  • In the event of the failure of the counterparty with which cash has been placed, the Fund may suffer loss as there may be delay in recovering cash placed out or difficulty in realising collateral or proceeds from the sale of the collateral may be less than the cash placed with the counterparty due to inaccurate pricing of the collateral or market movements. The Fund may also be subject to legal risk, operational risks, liquidity risk of the counterparty and custody risk of the collateral.

10. Risks of investing in other collective investment schemes 

  • The underlying funds in which the Fund may invest may not be regulated by the SFC. There may be additional costs involved when investing into these underlying funds. There is also no guarantee that the underlying funds will always have sufficient liquidity to meet the Fund's redemption requests as and when made.

11. Risks relating to hedging and currency hedged classes

  • The Fund may invest in derivatives for hedging purposes and in adverse situations its use of financial derivative instruments ("FDIs") may become ineffective and/or cause the Fund to suffer significant losses. Risks relating to hedging and currency hedged classes include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The leverage element/component of a FDI can result in a loss significantly greater than the amount invested in such FDI by the Fund for hedging purpose. Such exposure may lead to a high risk of significant loss by the Fund.

12. Concentration risk in Asia-Pacific region and emerging market (including Mainland China) risk    

  • The Fund will invest mainly in the Asia-Pacific region. The Fund is therefore likely to be more volatile than a broad-based fund that adopts a more diversified strategy.
  • The Fund invests in emerging markets (including Mainland China) which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.

13. Currency risks

  • Underlying investments of the Fund may be denominated in currencies other than its base currency. Also, a class of shares may be designated in a currency other than the base currency of the Fund. The NAV of the Fund may be affected unfavorably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls.

14. RMB currency risk and RMB denominated classes risk

  • RMB is currently not freely convertible and is subject to exchange controls and restrictions and investors may be adversely affected by movements of the exchange rates between RMB and other currencies.
  • Currency conversion is also subject to the Fund's ability to convert the proceeds into RMB (due to exchange controls and restrictions applicable to RMB) which may also affect the Fund's ability to meet redemption requests from Unitholders in RMB denominated classes of units, and may delay the payment of redemption proceeds under exceptional circumstances.
  • Non-RMB based investors who invest in RMB denominated classes are exposed to foreign exchange risk and there is no guarantee that the value of RMB against the investors' base currency will not depreciate. Any depreciation of RMB could adversely affect the value of investors' investment in the RMB denominated classes of units.
  • Although offshore RMB (CNH) and onshore RMB (CNY) are the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors.

Fund Information

Fund ManagerPing An of China Asset Management (Hong Kong) Company Limited
Fund inception date04/09/2023
Fund sizeUSD 5.06 million (21/12/2023)
Base currencyUSD
Unit priceClass A USD 101.5276
Dealing frequencyMonthly, on the fifth Business Day before month end in each month.
Dividend policyNo distribution to Unitholders.

Fund Objective

Ping An Stable Fund's (the "Fund") objective is to provide stable income by mainly investing in money market instruments and debt securities.

Fund Strategy

The Fund seeks to achieve its investment objective by investing primarily (i.e. not less than 70% of its Net Asset Value) in a broad range of USD-denominated money market instruments and debt securities which are issued by governments, quasi-governments, international organisations, financial institutions and corporate issuers. The money market instruments and debt securities that the Fund invests in may include but are not limited to short-term deposits, government bills, time deposit, certificates of deposit, commercial papers, bankers' acceptances, bonds, notes and money market funds managed by a third party, the Manager, or its Connected Persons.

The Fund will not have limits on the weighted average maturity and weighted average life of the portfolio. The Fund will not have a limit on the remaining maturity of a single investment instrument.

The Fund will invest not less than 70% of its Net Asset Value in debt securities and money market instruments which (i) are rated investment grade or above or (ii) are issued or guaranteed by issuers or guarantors that are rated investment grade or above, by an independent rating agency, e.g. Fitch, Moody's and Standard and Poor's. A debt security is considered investment grade if its short-term credit rating is A-3 or higher by Standard & Poor's or F3 or higher by Fitch Ratings or P-3 or higher by Moody's or equivalent rating as rated by one of the international credit rating agencies, or its long-term credit rating is BBB- or above by Fitch Ratings or Standard & Poor's or Baa3 or above by Moody's or equivalent rating as rated by one of the international credit rating agencies. For onshore China bonds, an investment grade rating is a short-term credit rating of AAA or higher as rated by one of the credit rating agencies in China, or a long-term credit rating of AA+ or higher as rated by one of the credit rating agencies in China. Deposits (e.g. certificates of deposits) invested by the Fund will be issued by investment grade-rated banks or substantial financial institutions, as defined in the SFC's Code on Unit Trusts and Mutal Funds.

The Fund will mainly invest in the Asia-Pacific region including Hong Kong, Singapore and Mainland China (onshore and offshore markets) but it may also invest in other regions including the European Union and the United States. There is no specific geographical allocation of the country of issue of the money market instruments or debt securities, or the location of banks in respect of bank deposits. The Fund will invest not more than 40% of its Net Asset Value in emerging markets (including Mainland China).

The Fund may invest up to 30% of its Net Asset Value in onshore China debt securities, such as government bonds, policy bank bonds and negotiable certificates of deposits, via the mutual bond market access between Hong Kong and Mainland China.

The Fund may invest up to 10% of its Net Asset Value in urban investment bonds (城投債). The Fund may invest up to 10% of its Net Asset Value in "Dim Sum" bonds. The Fund will not invest in any convertible bonds or instruments with loss absorption features.


General Information

Minimum investment
(initial / subsequent) /
minimum holding
(aggregate minimum value of Units held) /
minimum redemption
(aggregate minimum value of Units redeemed):
Class A USD: USD 1
Class A RMB (Hedged): RMB 1
Class A HKD (Hedged): HKD 1
Class A GBP (Hedged): GBP 1
Subscription fee:Up to 3.0%
Redemption fee#:Up to 3.0%
Switching fee#:Up to 3.0%
Management fee#:Class A: 0.35% p.a
Financial year end:30 June
Trustee Limited:BOCI-Prudential Trustee Limited

Codes

ISIN CodeClass A USD HK0000947397
Class A RMB (Hedged) HK0000947405
Class A HKD (Hedged) HK0000947413
Class A GBP (Hedged) HK0000947421
Bloomberg CodeClass A USD PASANFA
Class A RMB (Hedged) PASTBAR
Class A HKD (Hedged) PASTBAH
Class A GBP (Hedged) PINANAG
       
 

Class A USD : Cumulative Performance (%)

1 month 3 months 6 months YTD Since Inception*
N/A N/A N/A N/A N/A

Total return performance is based on NAV-to-NAV, 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.
Annualized Net Yield is available to investors upon request.

Date

NAV/Unit (USD)

25/01/2024
101.5276

Documents

1.Explanatory MemorandumView
2.Product Key FactsView

# Unitholders shall be given not less than 1 month's prior notice should the Management Fee, Switching Fee or Redemption Fee be increased from the current level up to the maximum level as disclosed in the main part of the Explanatory Memorandum.

 

Ping An Stable 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 website 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 website 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 website 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 website is issued by PAAMC and has not been reviewed by the SFC.