BEA Union Investment RMB Core Bond Fund A Inc RMB

東亞聯豐人民幣核心債券基金 A類 Inc 人民幣

HK0000176732

Risk Rating: Level 4

iFund risk rating methodology is a qualitative and quantitative assessment of a single fund’s geographic and asset class focus, investment style and any potential risk factors, as measured from one (1) (lowest risk) to six (6) (highest risk). For the funds with risk rating three (3) or four (4), these are mainly aimed at providing income and capital appreciation to investors by investing primarily in balanced portfolio, including high yield bonds and global equities etc. For more details, please refer to the Due Diligence section under the Procedures page.

Non-dealing Hours
RMB

99.19

Latest Price: 2019-03-24

Dealing Information

0%

Subscription Fee
As low as 0 %

Secure Transaction

Derivatives knowledge not required

HKD4,000.00Min. Subscription

1.00%

HKD4,000.00Min. Subscription

RMB

HKD4,000.00Min. Subscription

HKD4,000.00

*Not include dividends (If applicable)

Fund Performaces

1 mth
-0.09
3 mth
+0.66
6 mth
+1.90
1 yr
+4.17
3 yr
+16.69
5 yr
+24.07

Analytical Figures (3 years)

Annualized Return
+5.28
Annualized Volatility
+1.38
Sharpe Ratio
+1.81

Fund Information

Fund Houses
BEA UNION INVESTMENT MANAGEMENT LIMITED
Launch Date
2014-02-27
Fund Manager
Team Managed
Manager Start Date
2014-02-28
Geographical Focus
China
Asset Class/ Sector
Fixed Income - Hybrid
Risk Rating
Risk Level 4

iFund risk rating methodology is a qualitative and quantitative assessment of a single fund’s geographic and asset class focus, investment style and any potential risk factors, as measured from one (1) (lowest risk) to six (6) (highest risk). For the funds with risk rating three (3) or four (4), these are mainly aimed at providing income and capital appreciation to investors by investing primarily in balanced portfolio, including high yield bonds and global equities etc. For more details, please refer to the Due Diligence section under the Procedures page.

Fund AUM(As of 2019-02-27)
RMB 136,360,000
Management Fee
1.00%
Latest Dividend
RMB 0.3700 (2019-03-14)

Sector Leaders

Dealing Information

0%

Subscription Fee
As low as 0 %

Secure Transaction

Derivatives knowledge not required

HKD4,000.00Min. Subscription

1.00%

HKD4,000.00Min. Subscription

RMB

HKD4,000.00Min. Subscription

HKD4,000.00

Dividend Records

Dividend DateDividend Records (RMB)
2019-03-140.3700
2018-12-160.3700
2018-11-140.3700
2018-10-140.3700
2018-09-160.3700
2018-08-140.3700
2018-07-150.3700
2018-06-140.3700
2018-05-140.3700
2018-04-150.3700
2018-03-140.3700
2018-02-140.3700
2018-01-140.4100
2017-12-140.4100
2017-11-140.4100
2017-10-150.4100
2017-09-140.4100
2017-08-140.4100
2017-07-160.4100
2017-05-140.4100
2016-12-140.3600
2016-11-140.3600
2016-10-160.3600
2016-09-140.3600
2016-08-140.3700
2016-07-140.3700
2016-06-140.3800
2016-05-150.3800
2016-04-140.4000
2016-03-140.4000
2016-02-140.4100
2016-01-140.4500
2015-12-140.4800
2015-11-150.4900
2015-10-140.4900
2015-09-140.4900
2015-08-160.4900
2015-07-140.4900
2015-06-140.4900
2015-05-140.4900
2015-04-140.4100
2015-03-150.4100
2015-02-150.3700
2015-01-140.4200
2014-12-140.4200
2014-11-160.4200
2014-10-140.4200
2014-09-140.3500
2014-08-140.3500
2014-07-140.3500
2014-06-150.3500

Investment Objective

The investment objective of the BEA Union Investment RMB Core Bond Fund is to seek income and long-term capital growth by investing in debt securities and other assets that are denominated in RMB and other currencies.

Nature and Extent of Risks

Investment involves risks. Please refer to the Explanatory Memorandum for details including the risk factors.
1. Investment risk
The Sub-Fund is an investment fund. The Sub-Fund’s investment portfolio may fall in value and therefore your investment in the Sub-Fund may suffer losses.
2. RMB currency risk
There is no assurance that RMB will not be subject to devaluation. Any devaluation of RMB could adversely affect the value of the investors’ investments. If investors convert other currencies into RMB so as to invest in the RMB classes of Units and subsequently convert the RMB redemption proceeds back into other currencies, they may suffer a loss if RMB depreciates against such other currencies.
Under the current regulations, the rate at which RMB may be exchanged outside the PRC (in the case of Hong Kong, the “CNH” rate) may be different from the exchange rate within the PRC (the “CNY” rate) and such divergence may fluctuate due to supply and demand, and the value of the Sub-Fund which is calculated using the CNH rate will be affected accordingly.
RMB is currently not a freely convertible currency as it is subject to foreign exchange control policies of the Chinese government. The Chinese government’s policies on exchange control and repatriation restrictions are subject to change, and the Sub-Fund’s or the investors’ position may be adversely affected.
3. “Dim Sum” bond (i.e. bonds issued outside of mainland China but denominated in RMB) market risk
The “Dim Sum” bond market is still a relatively small market which is more susceptible to volatility and illiquidity. The operation of the “Dim Sum” bond market as well as new issuances could be disrupted causing a fall in the Net Asset Value of the Sub-Fund should there be any promulgation of new rules which limit or restrict the ability of issuers to raise RMB by way of bond issuances and/or reversal or suspension of the liberalisation of the offshore RMB (CNH) market by the relevant regulator(s).
4. Concentration risk/China market risk
The Sub-Fund’s investments are concentrated in China. The value of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio of investments.
The value of the Sub-Fund me be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the China market.
5. Risks associated with China interbank bond market
Market volatility and potential lack of liquidity due to low trading volume of certain debt securities in the China interbank bond market may result in prices of certain debt securities traded on such market fluctuating significantly. The Sub-Fund investing in such market is therefore subject to liquidity and volatility risks. The bid and offer spreads of the prices of such securities may be large, and the Sub-Fund may therefore incur significant trading and realisation costs and may even suffer losses when selling such investments.
To the extent that the Sub-Fund transacts in the China interbank bond market, the SubFund may also be exposed to risks associated with settlement procedures and default of counterparties. The counterparty which has entered into a transaction with the Sub-Fund may default in its obligation to settle the transaction by delivery of the relevant security or by payment for value.
The China interbank bond market is also subject to regulatory risks.
6. Risk of limited pool of investment and diversification risk
The quantity of RMB denominated debt and other securities that are available for investment is currently limited. The Sub-Fund may have to allocate a significant portion of its assets to RMB deposit until suitable securities are available in the market, and this may adversely affect the Sub-Fund’s return and performance. In addition, where there is a limited supply of and excess demand for RMB denominated instruments, prices of such instruments could be driven up, and their quality could be compromised, and these may have an adverse impact on the value of the Sub-Fund.
The Sub-Fund will invest primarily in securities denominated in RMB or have exposure to RMB. The Sub-Fund is therefore likely to be more volatile than a broad-based fund that adopts a more diversified strategy.
7. Liquidity risk
RMB debt securities that are not listed may be subject to higher liquidity risk. The SubFund may have to liquidate such securities at a substantial discount to meet any sizeable redemption requests and may as a result suffer losses.
The bid and offer spread of the price of RMB debt securities may be large, so the SubFund may incur significant trading and realisation costs and may suffer losses accordingly.
8. Interest rates risk
The Sub-Fund invests directly in debt securities, which are susceptible to interest rate changes and may experience significant price volatility. Any fluctuation in interest rates may have a direct effect on the income received by the Sub-Fund and its capital value.
9. Credit risk of counterparties
If the issuer of any of the securities in which the Sub-Fund invests defaults or suffers insolvency or other financial difficulties, the value of such Sub-Fund will be adversely affected.
RMB debt securities and bank deposits that the Sub-Fund invests in are typically unsecured debt obligations and are not supported by any collateral. The Sub-Fund will be fully exposed to the credit/insolvency risk of its counterparties as an unsecured creditor.
Currently, most of the RMB debt securities that are available to the Sub-Fund are not rated. These debt securities are subject to greater risks because of generally lower credit worthiness and liquidity, greater fluctuation in value and higher chance of default than investment grade debt securities.
10. Below investment grade and non-rated securities risk
The Sub-Fund may invest in below investment grade or non-rated debt securities. Such debt securities are generally subject to more risk and volatility than higher-rated securities because of reduced credit worthiness, liquidity and greater chance of default and can thereby expose the Sub-Fund to losses.
11. Derivative risk
The Sub-Fund may invest in financial futures contracts. Derivative instruments that are not traded on an exchange are subject to, among others, liquidity risk (i.e. the risk that the Sub-Fund may not be able to close out a derivative position in a timely manner and/or at a reasonable price) and counterparty risks (i.e. the risk that a counterparty may become insolvent and therefore unable to meet its obligations under a transaction). In addition, investments in derivative instruments generally involve higher volatility, and may result in a significant loss to the Sub-Fund.
The Sub-Fund may use financial futures, currency forwards and other derivative instruments for hedging purposes. Such hedging may not achieve the intended purpose. In an adverse situation, the Sub-Fund’s use of derivative instruments may become ineffective in achieving hedging and the Sub-Fund may suffer significant losses.
12. Currency risk
The Sub-Fund is denominated in RMB but it may be invested in assets denominated in other currencies. The performance of the Sub-Fund will therefore be affected by movements in the exchange rate between RMB and the currencies in which the assets are held.
Investors who invest in non-RMB denominated classes of Units will also be subject to exchange rate risks between the relevant class currency and RMB
13. Effect of distribution out of capital
The Manager may at its discretion make distributions from income and/or capital in respect of the distributing classes of the Sub-Fund. Investors should note that the distributions paid out of capital amount to a return or withdrawal of part of the unitholder’s original investment or from any capital gains attributable to that original investment. Such distribution may result in an immediate reduction of the Net Asset Value per Unit.
14. Currency hedging risk
Currency hedged class units may be available in each Sub-Fund and are designated in currencies other than the Sub-Fund’s base currency. In such circumstances adverse exchange rate fluctuations between the base currency of the Sub-Fund and the class currency of the currency hedged class units may result in a decrease in return and/or loss of capital for unitholders. The Manager will try to mitigate this usually by hedging the foreign currency exposure of the currency hedged class units into the base currency of the relevant Sub-Fund or into the currency or currencies in which the assets of the relevant Sub-Fund are denominated. However, over-hedged or under-hedged positions may arise and there can be no assurance that these currency hedged class units will be hedged at all times or that the Manager will be successful in employing the hedge.