BOCIP China Value Fund A HKD

中銀保誠中國價值基金 A類 港元

HK0000074358

Risk Rating: Level 5

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 five (5) or six (6), these are mainly aimed at providing capital appreciation to investors by investing primarily in single market equities, single industry equities or derivatives etc. For more details, please refer to the Due Diligence section under the Procedures page.

Non-dealing Hours
HKD

7.6699

Latest Price: 2019-03-24

Dealing Information

0%

Subscription Fee
As low as 0 %

Secure Transaction

Derivatives knowledge not required

HKD4,000.00Min. Subscription

1.80 %

HKD4,000.00Min. Subscription

HKD

HKD4,000.00Min. Subscription

HKD4,000.00

*Not include dividends (If applicable)

Fund Performaces

1 mth
-1.10
3 mth
+12.94
6 mth
+0.29
1 yr
-5.13
3 yr
+22.86
5 yr
+18.05

Analytical Figures (3 years)

Annualized Return
+7.10
Annualized Volatility
+17.52
Sharpe Ratio
+0.61

Fund Information

Fund Houses
BOCI PRUDENTIAL ASSET MANAGEMENT LTD
Launch Date
2017-01-20
Fund Manager
Team managed
Manager Start Date
2011-01-21
Geographical Focus
China
Asset Class/ Sector
Equity - All cap
Risk Rating
Risk Level 5

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 five (5) or six (6), these are mainly aimed at providing capital appreciation to investors by investing primarily in single market equities, single industry equities or derivatives etc. For more details, please refer to the Due Diligence section under the Procedures page.

Fund AUM(As of 2019-03-24)
HKD 1,334,882,000
Management Fee
1.80 %
Latest Dividend
HKD 0.0885 (2019-01-01)

Sector Leaders

Dealing Information

0%

Subscription Fee
As low as 0 %

Secure Transaction

Derivatives knowledge not required

HKD4,000.00Min. Subscription

1.80 %

HKD4,000.00Min. Subscription

HKD

HKD4,000.00Min. Subscription

HKD4,000.00

Dividend Records

Dividend DateDividend Records (HKD)
2019-01-010.0885
2018-10-010.0998
2018-07-020.1379
2018-04-020.1063
2018-01-010.1056
2017-10-020.1024
2017-07-020.0972
2017-04-020.0971
2017-01-020.0909
2016-10-020.0960
2016-07-030.0904
2016-03-310.0948
2016-01-030.1007
2015-10-010.1014
2015-07-010.1285
2015-03-310.1227
2015-01-010.1213
2014-10-020.1213
2014-07-010.1200
2014-03-310.1213
2014-01-010.1169
2013-10-010.1169
2013-07-010.1169
2013-04-010.1169
2013-01-010.0970
2012-10-020.0970
2012-07-020.0970
2012-04-010.0967
2012-01-020.1250
2011-10-020.1250
2011-07-030.2500

Investment Objective

The Sub-Fund seeks to achieve long term capital growth by investing primarily in securities issued by or linked to companies which activities and business are closely related to the economy of the People’s Republic of China (“PRC”).

Nature and Extent of Risks

Investment involves risks. Please refer to the offering document for details including the risk factors.
1. General investment risk
The Sub-Fund’s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Sub-Fund may suffer losses. There is no guarantee in respect of
repayment of principal.
2. Value stock risk
• Stock selection of the Sub-Fund is based on “intrinsic valuation matrix”. Such value investing strategies involve the risk that the market will not recognize a security’s intrinsic value for a long time or the expected value was misgauged.
• Price of the security may go down even though in theory the price is already undervalued. Value stocks may perform differently from the market as a whole and may be undervalued by the market
for a long period of time or may never be realized.
3. Emerging market/PRC market risk
Investing in emerging markets, such as the PRC, 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.
4. Single country and concentration risk
• The Sub-Fund mainly focuses on investment instruments that are closely related to the economy of the PRC. 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 may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the PRC market.
5. Equity market risk
The Sub-Fund’s investment in equity securities like H shares, shares of companies or ETFs listed on the SEHK, A shares and B shares is subject to general market risks, whose value may fluctuate due
to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.
6. Risk associated with high volatility of the equity market in Mainland China
High market volatility and potential settlement difficulties in the Mainland China equity market may result in significant fluctuations in the prices of the securities traded on such market and thereby may adversely affect the value of the Sub-Fund.
7. Risk associated with regulatory/exchanges requirements/policies of the equity market in Mainland China
Securities exchanges in the PRC typically have the right to suspend or limit trading in any security traded on the relevant exchange. The government or the regulators may also implement policies that may affect the financial markets. All these may have a negative impact on the Sub-Fund.
8. Risks relating to investment in ETFs
Investors should note that the market price of the units of an ETF traded on the SEHK is determined not only by the Net Asset Value of an ETF but also by other factors such as the supply of and demand for the units of the ETF in the SEHK. Therefore, there is a risk that the market price of units of the ETF traded on the SEHK may diverge significantly from the Net Asset Value of the ETF.
9. Investment in ELIs
• Credit risk: The Sub-Fund is exposed to the credit risk of the issuers of the ELIs. If any one of the ELIs issuers fails to perform its obligations under the ELIs, the Sub-Fund may suffer losses potentially equal to the full value of the instrument issued by the relevant issuer. Any loss would result in the reduction in the Net Asset Value of the Sub-Fund and impair the ability of the Sub-Fund to achieve its investment objective.
• Illiquidity risk: There may not be an active market for those ELIs which are not listed or quoted on a market. Even if the ELIs are quoted, there is no assurance that there will be an active market for them. Therefore investment in ELIs can be highly illiquid.
• QFII risk: The Sub-Fund’s exposure to the PRC market via ELIs depends on the ability of the QFII to buy and sell A Shares. The availability of QFII investment quota and any restrictions or any change in the QFII laws and regulations may adversely affect the issuance of ELIs and impair the ability of the Sub-Fund to achieve its investment objective.
10.Risks associated with Shanghai and Shenzhen Connect
The relevant rules and regulations on Shanghai and Shenzhen Connect are subject to change which may have potential retrospective effect. Each of Shanghai and Shenzhen Connect is subject to a set
of Daily Quota, which does not belong to the Sub-Fund and can only be utilized on a first come, first served basis. Where a suspension in the trading through the programme is effected, the Sub-Fund’s ability to invest in A shares or access the PRC market through the programme will be adversely affected. In such event, the Sub-Fund’s ability to achieve its investment objective could be negatively affected.
11. PRC tax risk
• Based on professional and independent tax advice, the Sub-Fund currently will not make the following tax provision (i.e. 10% withholding income tax provision on realised and/or unrealised capital gains from trading of A shares by a QFII in relation to which the underlying A shares to which the relevant ELIs are linked or by the Sub-Fund in investing in A shares via Shanghai-Hong Kong Stock Connect and/or Shenzhen-Hong Kong Stock Connect).
• There are risks and uncertainties associated with the current PRC tax laws, regulations and practice in respect of capital gains realised via Shanghai and Shenzhen Connect or ELIs on the Sub-Fund’s investments in the PRC. Any future changes in the taxation policies in respect of QFII’s or the SubFund’s investment in A shares in the PRC will impact on the Sub-Fund’s returns. It is possible that any future announcement by the PRC tax authority may subject the Sub-Fund to unforeseen tax obligations, which may have retrospective effect.
12.Currency hedged class risk
• There is no assurance that any currency hedging strategy employed by the Manager will effectively eliminate the currency exposure of the Sub-Fund and Unitholders of the Currency Hedged Class
may be exposed to currency exchange risk for non-hedged classes.
• If the counterparties of the instruments used for hedging purposes default, Unitholders of the Currency Hedged Class may be exposed to currency exchange risk on an unhedged basis and may therefore
suffer further losses. Where hedging is undertaken, it may preclude Unitholders in the Currency Hedged Class from benefiting from an increase in the value of the Sub-Fund’s base currency.
• Any cost and expenses arising from such hedging transactions will be borne by the Currency Hedged Class, which may be significant depending on prevailing market conditions.
13.Foreign exchange and RMB currency and conversion risks
• Underlying investments of the Sub-Fund may be denominated in currencies (e.g. RMB (specifically offshore RMB (CNH) or onshore RMB (CNY))) other than the base currency of the Sub-Fund. The
Net Asset Value of the Sub-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.
• RMB is currently not freely convertible and is subject to exchange controls and restrictions. Non-RMB based investors are exposed to foreign exchange risk and there is no guarantee that the value of RMB against the investors’ base currencies (for example HKD) will not depreciate. Any depreciation of RMB could adversely affect the value of the investors’ investments in the Sub-Fund. Although
CNH and CNY are the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors.
• Under exceptional circumstances, payment of redemptions and/or distribution payment in RMB may be delayed due to the exchange controls and restrictions applicable to RMB.
• The Sub-Fund may also be subject to bid/offer spread and currency conversion costs when converting to and from Hong Kong dollars and RMB.
14.Risk in relation to distribution
• The indicative per annum distribution rate for the relevant class of Units each year may vary and may go up and down. The Manager retains the absolute discretion to determine or vary the frequency
and dates for distribution.
• The Manager may in its absolute discretion determine that in relation to a particular class of Units, distributions be paid out of its capital, or the Manager may, in its discretion, pay distributions out of its gross income while charging/paying all or part of its fees and expenses to/out of its capital, resulting in an increase in distributable income for the payment of distributions by the relevant class of Units and therefore, the relevant class of Units may effectively pay distributions out of capital. This may reduce the capital that the relevant class of Units has available for investment in future and may constrain capital growth.
• Payment of distributions out of capital and/or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investments. Any such distributions may result in an immediate reduction of the Net Asset Value per unit.
• The distribution amount and Net Asset Value of the Class A – RMB Hedged Currency Class Units may be adversely affected by differences in the interest rates of the reference currency of the Class
A – RMB Hedged Currency Class Units and the Sub-Fund’s base currency, resulting in an increase in the amount of distribution that is paid out of capital and hence a greater erosion of capital than
other non-hedged classes of Units.
15.Cross-class liability risk
Although for the purposes of fund accounting, different fees and charges will be allocated to each class, there is no actual segregation of liabilities between different classes of Units. As such, in the event of insolvency or termination of the Sub-Fund, i.e. where the assets of the Sub-Fund are insufficient to meet its liabilities, all assets will be used to meet the Sub-Fund’s liabilities, not just the amount standing to the credit of any individual class of Units.
16.Potential conflicts of interest
• The Sub-Fund may invest in ETFs and/or CISs managed by the Manager and this may give rise to potential conflicts of interest. • Also, the Manager may promote, manage, advise or otherwise be involved in any other funds or investment companies while they act as the Manager of the Sub-Fund. Furthermore, the Manager and the Trustee are affiliated. Situation may arise where there are conflicts of interest between such entities. If such conflict arises, each of the Manager and the Trustee will have regard in such event to its obligations to the Sub-Fund and will endeavour to ensure that such conflicts are resolved fairly.
17.Derivative instruments risk
The Sub-Fund may use derivatives as one of its investment strategies. The use of derivatives may expose the Sub-Fund to various types of risk, including but not limited to, counterparty, liquidity, correlation, credit, volatility, valuation, settlement and over-the-counter transaction risks. Derivatives may be more sensitive to changes in economic or market conditions and could increase the Sub-Fund’s volatility or can result in a loss significantly greater than the amount invested in the derivatives by the Sub-Fund. Exposure to derivatives may lead to a high risk of significant loss by the Sub-Fund.