Bosera RMB Bond Fund A Dis RMB

博時人民幣債券基金 A類 Dis 人民幣

HK0000100120

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

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD15,000.00Min. Subscription

1.00%

HKD15,000.00Min. Subscription

RMB

HKD15,000.00Min. Subscription

HKD15,000.00

HKD15,000.00

Daily

15:30

-

*Not include dividends (If applicable)

Fund Performances (including dividend, if any)

1 mth
-0.40%
3 mth
-0.32%
6 mth
+0.62%
1 yr
+2.48%
3 yr
-0.82%
5 yr
+8.04%

Analytical Figures (3 years)

Annualized Return
-0.27%
Annualized Volatility
+2.53%
Sharpe Ratio
-0.60

Fund Information

Fund Houses
Bosera International
Launch Date
2012-02-19
Fund Manager
Team Management
Manager Start Date
N/A
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 2019-09-29)
RMB 57,011,957.57
Management Fee
1.00%
Latest Dividend
RMB 0.400000 (2016-07-03)

Sector Leaders

    No Funds

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD15,000.00Min. Subscription

1.00%

HKD15,000.00Min. Subscription

RMB

HKD15,000.00Min. Subscription

HKD15,000.00

HKD15,000.00

Daily

15:30

-

Dividend Records

Dividend DateDividend Records (RMB)
2016-07-030.400000
2016-01-032.000000
2015-07-061.750000
2015-07-011.750000
2015-01-041.620000
2015-01-011.620000
2014-07-011.380000
2014-01-011.020000
2013-07-011.380000
2013-01-031.500000
2012-07-020.840000

Investment Objective

The investment objective of the Sub-Fund is to seek long-term interest income and capital appreciation through investing all of its assets in RMB-denominated fixed income securities issued within PRC.

Nature and Extent of Risks

Investment involves risks. Please refer to the Explanatory Memorandum for details including the risk factors.
1. Investment and concentration risks
- You should be aware that investment in the Sub-Fund is subject to normal market fluctuations and other risks inherent in the Sub-Fund’s assets. Accordingly, there is a risk that you may not recoup the original amount invested in the Sub-Fund or may lose a substantial part or all of your investment.
- The Sub-Fund’s exposure to a single country (i.e. the PRC) subjects it to greater concentration risk. The SubFund is likely to be more volatile than a broadly-based fund such as global or regional investment fund as it is more susceptible to fluctuation in value resulting from adverse conditions in a single country.
2. Risks associated with fixed income instruments Interest rate risk
- Generally, the value of fixed income instruments is expected to be inversely correlated with changes in interest rates. Any increase in interest rates or changes in macro-economic policies in the PRC (including monetary policy and fiscal policy) may adversely impact the value of the Sub-Fund’s fixed income portfolio.
Credit risk
- Investment in fixed income instruments is subject to the credit risk of the issuers which may be unable or unwilling to make timely payments of principal and/or interest. In the event of a default or credit rating downgrading of the issuers of the fixed income instruments held by the Sub-Fund, valuation of the SubFund’s portfolio may become more difficult, the Sub-Fund’s value will be adversely affected and investors may suffer a substantial loss as a result. The Sub-Fund may also encounter difficulties or delays in enforcing its rights against the issuers who will generally be incorporated in the PRC and therefore not subject to the laws of Hong Kong.
- Changing market conditions or other significant events, such as credit rating downgrades affecting issuers or major financial institutions, may pose valuation risk as in such circumstances, valuation of the Sub-Fund’s investments may involve uncertainties and judgemental determinations as there is a possibility that independent pricing information may at times be unavailable. If such valuations should prove to be incorrect, the Net Asset Value of the Sub-Fund may need to be adjusted and may be adversely affected. Such events or credit rating downgrades may also subject the Sub-Fund to increased liquidity risk as it may become more difficult for the Sub-Fund to dispose of its holdings of bonds at a reasonable price or at all.
Risks of investing in PRC bond markets and of unrated or lower rated bonds
- The financial market of the PRC is at an early stage of development, and some of the bonds held by the SubFund may be rated BB+ or below by local credit rating agencies or may not be rated by any rating agency of an international standard. Such instruments are generally subject to a higher degree of credit risk and a lower degree of liquidity, which may result in greater fluctuations in value. The value of these instruments may also be more difficult to ascertain and thus the Net Asset Value of the Sub-Fund may be more volatile.
Risks associated with local PRC credit ratings
- Some of the bonds held by the Sub-Fund may have been assigned a credit rating by a local credit rating agency in the PRC. However, the local PRC rating process may lack transparency and the rating standards may be significantly different from that adopted by internationally recognised credit rating agencies. There is little assurance that credit ratings are independent, objective and of adequate quality. In selecting the Sub-Fund’s bond portfolio, the Manager may refer to credit ratings given by local PRC credit rating agencies for reference but will primarily rely on its own internal analysis to evaluate each bond independently. Investors should also exercise caution before relying on any local credit ratings.
Risks of investing in urban investment bonds
- The Sub-Fund may invest up to 20% of its Net Asset Value in urban investment bonds. Although urban investment bonds, which are issued by LGFVs, may appear to be connected with local government bodies, they are typically not guaranteed by such local government bodies or the central government of the PRC. As such, local government bodies or the central government of the PRC are not obligated to support any LGFVs in default. In the event that the LGFVs default on payment of principal or interest on any urban investment bonds within the Sub-Fund’s portfolio, the Sub-Fund may suffer significant loss and the Net Asset Value of the Sub-Fund may be adversely affected.
3. Risk relating to the RQFII regime
- In the event of any default of either a PRC broker or the PRC Custodian (directly or through its delegate) in the execution or settlement of any transaction or in the transfer of any funds or securities in the PRC, the Sub-Fund may encounter delays in recovering its assets which may in turn impact the net asset value of the Sub-Fund.
- The RQFII policy and rules are new and there may be uncertainty to its implementation and such policy and rules are subject to change. The uncertainty and change of the laws and regulations in the PRC (including the RQFII policy and rules) may adversely impact the Sub-Fund and such changes may also have potential retrospective effect.
- Repatriations by RQFIIs in respect of fund such as the Sub-Fund conducted in RMB are not subject to any restrictions, lock-up periods or prior approval. There is no assurance, however, that PRC rules and regulations will not change or that repatriation restrictions will not be imposed in the future. Any restrictions on repatriation of the invested capital and net profits may impact on the Sub-Fund’s ability to meet redemption requests from Unitholders.
4. Risks relating to the PRC
- Investing in emerging markets, such as the PRC, involves a greater risk of loss than investing in more developed markets due to, among other factors, greater political, tax, economic, foreign exchange, liquidity and regulatory risks.
- Investing in PRC-related companies and in the PRC markets involve certain risks and special considerations not typically associated with investment in more developed economies or markets, such as greater political, tax, economic, foreign exchange, liquidity, legal and regulatory risk.
- The concentration of the Sub-Fund’s investments in PRC-related companies may result in greater volatility than portfolios which comprise broad-based global investments.
- There are risks and uncertainties associated with the current Chinese tax laws, regulations and practice in respect of capital gains realised by RQFIIs on its investments in the PRC (which may have retrospective effect). After careful consideration of the Manager’s assessment and having taken and considered independent professional tax advice regarding the Sub-Fund’s eligibility to benefit from the Arrangement between the Mainland of China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (the “China-HK Arrangement”), the Manager considers, in accordance with such advice, that the Sub-Fund should be able to enjoy a PRC withholding income tax exemption on capital gains derived from disposal of debt instruments issued by the PRC government or PRC corporations and has determined to change the tax provisioning approach in respect of the Sub-Fund effective from 21 July 2014 so that it does not make any withholding income tax provision for the account of the Sub-Fund in respect of the gross realised and unrealised capital gains derived from the disposal of debt instruments issued by the PRC government or PRC corporations. It should be noted, however, that there are uncertainties regarding this policy. It is possible that the applicable tax laws may be changed, that the PRC tax authorities may hold a different view or that the PRC tax authorities require the Sub-Fund to provide a Hong Kong Tax Resident Certificate (“HKTRC”) in order to enjoy the relief under the China-HK Arrangement (the Sub-Fund has not currently obtained a HKTRC) and the Manager may not be able to obtain a HKTRC on behalf of the Sub-Fund. In such case the Sub-Fund will bear the actual tax liabilities as no tax provision has been made and the Net Asset Value of the Sub-Fund will be adversely affected. In this case, the then existing and subsequent Unitholders will be disadvantaged as they will bear a disproportionately higher amount of tax liability as compared to that borne at the time of investment in the Sub-Fund.
5. Liquidity risk
- China’s bond market is still in a stage of development and the bid and offer spread of RMB bonds, whether traded on the inter-bank or listed bond market, may be high and the Sub-Fund may therefore incur significant trading costs and may even suffer losses when selling such investments.
- In the absence of a regular and active secondary market, the Sub-Fund may not be able to sell its bond holdings at prices the Manager considers advantageous and may need to hold the bonds until their maturity date. If sizeable redemption requests are received, the Sub-Fund may need to liquidate its listed bonds at a discount in order to satisfy such requests and the Sub-Fund may suffer losses.
6. RMB currency risk
- This Sub-Fund is denominated in RMB and all subscription moneys and redemption proceeds will be payable in RMB. There is no guarantee that RMB will not depreciate. Investors whose assets and liabilities are predominantly in Hong Kong dollars or in currencies other than RMB (being the currency in which the Units are denominated) should take into account the potential risk of loss arising from fluctuations in value between the such currencies and the RMB.
7. Dividends risk
- There is no assurance that the Sub-Fund will declare to pay dividends or distributions. Investors may not receive any distributions. 8. Distribution out of capital risk
- Dividends on Class A Units may be distributable out of capital or effectively out of capital (i.e. where the Sub-Fund pays dividends out of gross income and charges/pays all or part of the fees and expenses to/out of capital resulting in an increase in distributable income). Payment of dividends out of capital 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 investment. Any distributions involving payment of dividends out of capital or effectively out of capital may result in an immediate reduction of the NAV per Class A Unit. The Manager may amend its distribution policy subject to SFC’s prior approval and by giving not less than 1 month’s prior notice to Unitholders.

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