Hong Kong Authorized Unit Trusts |
Ping An of China Select Investment Fund Series - |
Ping An of China SIF - RMB Bond Fund |
• 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 Manager | Ping An of China Asset Management (Hong Kong) Co. Ltd. | |||||||||
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Inception date | 28/04/2011 | |||||||||
Fund size | RMB 526.7 million (31/7/2023) | |||||||||
Base currency | RMB | |||||||||
Unit price |
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Dealing frequency | Daily (1) | |||||||||
Dividend policy | Semi-annual basis for Class A (2), except the monthly distribution share classes |
Fund Objective |
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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 |
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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 | |
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Minimum investment: | Class A RMB: RMB10,000 Class A HKD: HKD10,000 Class A USD: USD1,000 Class A GBP: GBP1,000 Class A EUR: EUR1,000 Class A AUD: AUD1,000 Class A RMB (monthly distribution): RMB10,000 Class A HKD (monthly distribution): HKD10,000 Class A USD (monthly distribution): USD1,000 Class A (Accumulation) RMB: RMB10,000 Class A (Accumulation) HKD: HKD10,000 Class A (Accumulation) USD: USD1,000 Class A (Accumulation) GBP: GBP1,000 Class A (Accumulation) EUR: EUR1,000 Class A (Accumulation) AUD: AUD1,000 |
Minimum holding: | Aggregate minimum value of Units held: Class A RMB: RMB10,000 Class A HKD: HKD10,000 Class A USD: USD1,000 Class A GBP: GBP1,000 Class A EUR: EUR1,000 Class A AUD: AUD1,000 Class A RMB (monthly distribution): RMB10,000 Class A HKD (monthly distribution): HKD10,000 Class A USD (monthly distribution): USD1,000 Class A (Accumulation) RMB: RMB10,000 Class A (Accumulation) HKD: HKD10,000 Class A (Accumulation) USD: USD1,000 Class A (Accumulation) GBP: GBP1,000 Class A (Accumulation) EUR: EUR1,000 Class A (Accumulation) AUD: AUD1,000 |
Minimum redemption: | Aggregate minimum value of Units held: Class A RMB: RMB10,000 Class A HKD: HKD10,000 Class A USD: USD1,000 Class A GBP: GBP1,000 Class A EUR: EUR1,000 Class A AUD: AUD1,000 Class A RMB (monthly distribution): RMB10,000 Class A HKD (monthly distribution): HKD10,000 Class A USD (monthly distribution): USD1,000 Class A (Accumulation) RMB: RMB10,000 Class A (Accumulation) HKD: HKD10,000 Class A (Accumulation) USD: USD1,000 Class A (Accumulation) GBP: GBP1,000 Class A (Accumulation) EUR: EUR1,000 Class A (Accumulation) AUD: AUD1,000 |
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 | |
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ISIN Code | Class A RMB: HK0000079084 ; Class A HKD: HK0000096476 ; Class A USD: HK0000096484 ; Class A GBP: HK0000907995 ; Class A EUR: HK0000908001 ; Class A AUD: HK0000908019 ; Class A RMB (monthly distribution): HK0000943230 ; Class A HKD (monthly distribution): HK0000943248 ; Class A USD (monthly distribution): HK0000943255 ; Class A (Accumulation) RMB: HK0000688108 ; Class A (Accumulation) HKD: HK0000688116 ; Class A (Accumulation) USD: HK0000688124 ; Class A (Accumulation) GBP: HK0000908027 ; Class A (Accumulation) EUR: HK0000908035 ; Class A (Accumulation) AUD: HK0000908043 |
Bloomberg Code | Class A RMB: PARRMBA HK ; Class A HKD: PARAHKD HK ; Class A USD: PARAUSD HK ; Class A GBP: PINRMAG HK ; Class A EUR: PINGAER HK ; Class A AUD: PINRMAA HK ; Class A RMB (monthly distribution): PINSARM HK ; Class A HKD (monthly distribution): PINSAHK HK ; Class A USD (monthly distribution): PINSGAU HK ; Class A (Accumulation) RMB: PICSBAC HK ; Class A (Accumulation) HKD: PARAAHK HK ; Class A (Accumulation) USD: PARAAUS HK ; Class A (Accumulation) GBP: PINRAAG HK ; Class A (Accumulation) EUR: PINCHAE HK ; Class A (Accumulation) AUD: PINCHSA HK |
Reuters Code | Class A RMB: LP68090801 ; Class A HKD: LP68180641 ; Class A USD: LP68180642 ; Class A (Accumulation) RMB ; Class A (Accumulation) HKD ; Class A (Accumulation) USD |
Lipper ID | Class A RMB: 68090801 ; Class A HKD: 68180641 ; Class A USD: 68180642 ; Class A (Accumulation) RMB ; Class A (Accumulation) HKD ; Class A (Accumulation) USD |
Dividend Record (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fund Inception Date: 28/04/2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. For details of the Dividend Composition Information, please refer to the Fund Dividend Composition Information Notice posted on Documents & Notices section of this website. |
- Dividend (ex-date)
Class A RMB : Calendar Year Performance (%) | |||||||||||||
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2010 | 2011* | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | Since Fund Launch |
NA | -3.84% | 7.45% | 4.93% | 2.83% | 4.56% | 6.98% | 5.86% | 3.57% | 5.03% | 2.29% | 2.68% | -0.68% | 54.6% |
* Since fund inception on 28 April 2011.
Class A HKD : Calendar Year Performance (%) | ||||||||||
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2010 | 2011 | 2012 | 2013* | 2014 | 2015 | 2016** | 2020 | 2021 | 2022 | Since Fund Launch |
N/A | N/A | N/A | 5.32% | 0.03% | -0.97% | 5.17% | 0.12% | 5.90% | -9.13% | 9.7% |
* Since share class inception on 1 Mar 2013.
** Performance data of Class A HKD in 2016 was as of 28 September 2016, as the share class was fully redeemed on 28 September 2016; the share class was reactivated on 29 December 2020 with a NAV of HKD 100.
Class A USD : Calendar Year Performance (%) | |||||||||||||
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2010 | 2011 | 2012 | 2013* | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | Since Fund Launch |
N/A | N/A | N/A | 5.25% | 0.10% | -1.01% | 0.94% | 13.24% | -1.96% | 3.84% | 9.31% | 5.29% | -9.21% | 24.2% |
* Since share class inception on 1 Mar 2013.
Note:
Class A (Accumulation) HKD : Calendar Year Performance (%) | |||||
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2018 | 2019 | 2020 | 2021* | 2022 | Since Fund Launch |
N/A | N/A | N/A | 4.60% | -9.27% | -6.8% |
* Since share class inception on 1 Mar 2021.
Class A (Accumulation) USD : Calendar Year Performance (%) | |||||
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2018 | 2019 | 2020 | 2021* | 2022 | Since Fund Launch |
N/A | N/A | N/A | 4.50% | -8.52% | -6.3% |
* Since share class inception on 1 Mar 2021.
Note:
Class A RMB : Cumulative Performance (%) | ||||||
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1 month | 3 months | 6 months | YTD | 1 year | 3 years | 5 years |
-0.3% | -0.3% | 1.6% | 3.2% | 2.1% | 6% | 14.1% |
Total return performance is based on NAV-to-NAV with dividend invested (if any), in RMB.
Class A HKD : Cumulative Performance (%) | ||||||
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1 month | 3 months | 6 months | YTD | 1 year | 3 years | 5 years |
-0.7% | -1.7% | -5.5% | -1.8% | N/A | N/A | N/A |
Total return performance is based on NAV-to-NAV with dividend invested (if any), in HKD.
Class A USD : Cumulative Performance (%) | ||||||
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1 month | 3 months | 6 months | YTD | 1 year | 3 years | 5 years |
-0.5% | -1.6% | -5.2% | -2% | -0.6% | -1.7% | 7% |
Total return performance is based on NAV-to-NAV with dividend invested (if any), in USD.
Class A (Accumulation) HKD : Cumulative Performance (%) | ||||||
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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 |
Class A (Accumulation) USD : Cumulative Performance (%) | ||||||
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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 |
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 |
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July Review The Fund delivered a return of -0.13% in July and a year-to-date return of 3.49% in RMB term^. In July, rates yields have oscillated between optimistic sentiment towards various bullish statements from the politburo meetings, and pessimistic sentiment towards the lack of concrete and concerted policies being announced so far. Rates yields finished fairly unchanged into the month end. Onshore credit spreads have traded wider in July, lead by the real estate sector as more property developers suffered liquidity crunch. During the month, we have kept the Fund's duration and core carry holdings stable. Our tactical positions in USD-denominated instruments have worked out well. Our holdings are well-diversified in terms of industries and regions, with the majority in the investment grade space and underweight in the real estate and the local government financing vehicle (LGFV) sectors. Outlook Central banks' pivot thresholds and rates paths have shifted higher given the recent slew of stronger-than-expected hard economic data in almost all major developed markets. Despite the recent uptick in inflation indicators and emphasis on data dependency, we continue to think major central banks are getting close to, or already in, their respective restrictive rate levels. Moreover, the continuous fund outflows from banks and the commercial real estate woes can potentially morph into larger crises with serious repercussions and damages. We think the directions of inflation trajectory in the major global economies are steadily downward from now on. We maintain our view since the beginning of this year that recessionary worries and geopolitical risks, and as volatility builds up, make big risk events due to unknown-unknown factors become more likely. We expect more shoes to drop in the coming months apart from what has already transpired. With regard to China, as we have argued, after the initial stage of encouraging policy shifts and the smooth reopening in the first quarter, the second quarter has been grappled with a weakening level of confidence and a subdued rebound of the real estate sector, as well as the worrying headwind of LGFV financial problems. In our opinion, the policy combination announced so far, though encouraging and substantive in terms of policy re-adjustment and long-term economic development, is lagging behind what the economy needs. The potential risk, which is becoming more and more serious, lies in the scenario that policymakers may have overestimated the short-term cyclical momentum and hence under-delivered stimuli and reforms, especially against the current global political and economic environment. Our view that deposit rate needed lowering as soon as possible was realized, and we expect more rate cuts to come in the near term, as China's real interest rates are relatively high. We think larger-scale policy packages for personal consumption and private sector capital expenditure are urgently needed in order to maintain economic rejuvenation, although there may also be other priorities favored by policymakers. Looking forward, we would prefer being defensive and prudent. Despite recent weakness, we maintain our view that Renminbi FX rate reflects movements with two-way fluctuations based on overall economic trends, which is also preferred by the People's Bank of China (PBOC), rather than being used as an intervening tool to prop up exports with further substantial depreciation. The PBOC's recent usage of counter-cyclical factors and strong fixings corroborate this view. We think Renminbi's next big move will largely depend on the global central banks' next rate hiking/cutting decisions, as well as the fallout of the real estate sector and the economy as a whole. The direction of the international geopolitics is also worth close monitoring. Note: CNH is the currency symbol for offshore RMB. Offshore RMB bonds are also known as dim sum bonds. ^ Based on Class A RMB. |
Top Ten Holdings | |
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CHINA CONSTRUCTION BANK 4.2% A 14SEP2030 CDC | 2.02% |
BANK OF CHINA LTD 4.2% A 21SEP2030 CDC | 2.02% |
INDUSTRIAL & COMMERCIAL BANK OF CHINA LTD 4.2% A 24SEP2030 CDC | 2.02% |
STATE POWER INVESTMENT CORP LTD 3.64% A 16MAR2027 SHCH | 1.98% |
GUANGZHOU METRO GROUP CO LTD 3.72% A 10JAN2025 CDC | 1.97% |
DAIMLER INTL FINANCE BV 3.3% A 27SEP2024 SHCH | 1.96% |
BMW FINANCE NV 3.15% A 16SEP2024 SHCH | 1.96% |
STANDARD CHARTERED BANK 4.18% A 01APR2025 | 1.96% |
HYUNDAI CAPITAL SERVICES INC 3.2% A 11AUG2024 | 1.95% |
CITIC GROUP CORP 3.17% A 19JAN2027 SHCH | 1.95% |
As of 31 July 2023
Documents | ||||
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1. | Explanatory Memorandum | View | ||
2. | Product Key Facts | View | ||
3. | Annual Report | View | ||
4. | Interim Report | View | ||
5. | Monthly Fund Fact Sheet | View |
Notices | |||
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1. | Dividend Notice to Unitholders (13/09/2023) | View | |
2. | Fund Dividend Composition Information (09/2023) | View | |
3. | Dividend Notice to Unitholders (14/08/2023) | View | |
4. | Fund Dividend Composition Information (08/2023) | View | |
5. | Notice to Unitholders (12/07/2023) | View | |
6. | Dividend Notice to Unitholders (23/06/2023) | View | |
7. | Fund Dividend Composition Information (06/2023) | View | |
8. | Notice to Unitholders (23/12/2022) | View | |
9. | Fund Dividend Composition Information (12/2022) | View | |
10. | Notice to Unitholders (01/12/2022) | View | |
11. | Supplemental Notice to Unitholders (10/11/2022) | View | |
12. | Notice to Unitholders (10/11/2022) | View | |
13. | Fund Dividend Composition Information (10/2022) | View | |
14. | Notice to Unitholders (18/08/2022) | View | |
15. | Dividend Notice to Unitholders (21/12/2021) | View | |
16. | Fund Dividend Composition Information (12/2021) | View | |
17. | Dividend Notice to Unitholders (24/06/2021) | View | |
18. | Fund Dividend Composition Information (06/2021) | View | |
19. | Notice to Unitholders (10/12/2020) | View | |
20. | Notice to Unitholders (06/11/2020) | View | |
21. | Notice to Unitholders (19/06/2020) | View | |
22. | Notice to Unitholders (29/11/2019) | View |
(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.