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China Universal International Series -CUAM China-Hong Kong Strategy Fund A USD

匯添富中港策略基金 A類美元

HK0000316452

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

USD1,500.00Min. Subscription

1.25%

USD1,500.00Min. Subscription

USD

USD1,500.00Min. Subscription

USD1,500.00

USD1,500.00

Daily

14:00

2020-09-30

*Not include dividends (If applicable)

Fund Performances (including dividend, if any)

1 mth
-1.88%
3 mth
+21.73%
6 mth
+59.45%
1 yr
+64.74%
3 yr
+77.82%
5 yr
-

Analytical Figures (3 years)

Annualized Return
+21.15%
Annualized Volatility
+24.29%
Sharpe Ratio
+0.89

Fund Information

Fund Houses
China Universal Asset Management (Hong Kong) Company Limited
Launch Date
2017-05-17
Fund Manager
Michael Wan
Daisy Kong
Sunny Yang
Manager Start Date
N/A
Geographical Focus
Greater China
Asset Class/ Sector
Balanced - Equity biased
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 )
-
Management Fee
1.25%
Latest Dividend
N.A.

Sector Leaders

    No Funds

Dealing Information

Secure Transaction

Derivatives knowledge not required

USD1,500.00Min. Subscription

1.25%

USD1,500.00Min. Subscription

USD

USD1,500.00Min. Subscription

USD1,500.00

USD1,500.00

Daily

14:00

2020-09-30

Dividend Records

No Dividends

Investment Objective

CUAM China-Hong Kong Strategy Fund seeks to achieve medium to long-term capital growth through investing primarily in securities of companies which are established in Greater China or having their income, revenue, assets, economic activities, business or operations associated with Greater China.

Nature and Extent of Risks

Investment involves risks. Please refer to the Explanatory Memorandum for details including the risk factors.
1. Investment risk
The instruments invested by the Sub-Fund 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 of repayment of principal.
2. Currency risk
The Sub-Fund may invest in part in assets quoted in currencies other than its base currency. Also, a class of units may be designated in a currency other than the base currency of the Sub-Fund. The performance and the net asset value of the Sub-Fund will therefore be affected unfavourably by movements in the exchange rates between these currencies and the base currency of the Sub-Fund and by changes in exchange rate controls.
3. Equity market risk
The Sub-Fund’s investment in equity securities 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.
4. Concentration risk
The investments of the Sub-Fund are concentrated in Greater China or specific sectors. The value of the Sub-Fund is likely to be more volatile than a broad-based fund. The value of the Sub-Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting Greater China.
5. China market risk
China is considered as an emerging market which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as and investing in China may subject the Sub-Fund to higher legal, taxation, settlement, custody, economic, political, foreign exchange and currency control, social and regulatory risks. Investments in China may also be less liquid and more volatile.
6. Emerging market risk
The Sub-Fund may invest in emerging markets 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.
7. Eurozone risk
In light of ongoing concerns on the sovereign debt risk of certain countries within the Eurozone, the Sub-Fund’s investments in the region may be subject to higher volatility, liquidity, currency and default risks. Any adverse events, such as credit downgrade of a sovereign or exit of EU members from the Eurozone, may have a negative impact on the value of the Sub-Fund.
8. Risks relating to debt securities
Interest rates risk
The Sub-Fund’s investment in debt securities is subject to interest rate risk. Generally, the prices of debt securities fall when interest rates rise, and vice versa.
Credit risk of issuers or counterparties
The Sub-Fund is exposed to the credit/insolvency/default risk of issuers of the debt securities it invests in.
Risk relating to credit rating
Credit ratings assigned by rating agencies are subject to limitations and are not absolute standards of credit quality and do not evaluate market risks and do not guarantee the creditworthiness of the security and/or issuer at all times.
Downgrading risk
Investment grade securities or the credit rating of the issuer may be subject to the risk of being downgraded to below investment grade or unrated. In the event of such downgrading, the value of the Sub-Fund may be adversely affected. The Manager may or may not be able to dispose of the debt instruments that are being downgraded.
Below investment grade and/or unrated debt securities risk
The Sub-Fund may invest less than 60% of its net asset value in debt securities which are below investment grade or which are unrated. Such securities would generally be considered to have lower liquidity, a higher degree of counterparty risk, credit risk, higher volatility risk and greater risk of loss of principal and interest than higher rated, lower yielding securities.
Sovereign debt risk
The Sub-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 Sub-Fund to participate in restructuring such debts. The Sub-Fund may suffer significant losses when there is a default of
sovereign debt issuers.
Liquidity and volatility risk
Some debt securities the Sub-Fund invests in may be illiquid and more volatile when compared to more developed markets, and may be difficult or impossible to sell. The prices of securities may be subject to fluctuations. The bid and offer spreads of the price of such securities may be large and the Sub-Fund may incur significant trading costs.
Valuation risk
Independent pricing information on debt securities may not be available at all times. Thus, valuation of the Sub-Fund’s investments in debt securities may involve uncertainties and judgmental determinations. If such valuation should prove to be incorrect, the net asset value of the Sub-Fund may be adversely affected.
9. Risk relating to depositary receipts
Exposure to depositary receipts may generate additional risks compare to direct exposure to the corresponding underlying stocks. There could be a risk that underlying shares would not be attributed to holders of depositary receipts in case of bankruptcy of the depositary bank.
There are fees related to depositary receipts which may impact the performance of the depositary receipts. Also, holders of depositary receipts are not direct shareholder rights as shareholders do.
The Sub-Fund may also be subject to liquidity risk.
10. Risk relating to preferred shares
An investment in preferred shares involves additional risks that are not typically associated with an investment in ordinary shares. In certain circumstances, an issuer of preferred shares may redeem the shares prior to a specified date. A special redemption by the issuer may negatively impact the return of the shares held by the Sub-Fund.
Preferred shares are subordinated to bonds and other debt instruments in a company’s capital structure in terms of priority to corporate income and liquidation payments and therefore will be subject to greater credit risk than those debt instruments. Preferred shares may be substantially less liquid than many other securities, including ordinary shares. The value and performance of the Sub-Fund may be adversely affected as a result.
11. Risks relating to convertible bonds
This Sub-Fund may invest up to 30% in convertible bonds, which are a hybrid between debt and equity, permitting holders to convert into shares in the company issuing the bond at a specific future date. As such, convertible bonds will be exposed to equity movement and greater volatility than straight bond investments. Investment in convertible bonds are subject to the same credit risk, interest rate risk, liquidity risk and prepayment risk associated with comparable straight bond
investments.
12. Risk associated with investment in instruments with non-viability/loss absorption convertible features
Trigger level risk/conversion risk
Debt instruments with loss-absorption features are subject to greater risks when compared to traditional debt instruments as such instruments are typically subject to the risk of being written down or converted to ordinary shares upon the occurrence of pre-defined trigger events (e.g. when the issuer is near or at the point of non-viability or when the issuer’s capital ratio falls to a specified level), which are likely to be outside of the issuer’s control. Trigger levels differ and determine exposure to conversion risk. They are complex, and it might be difficult for the Manager to anticipate the triggering events that would require the conversion. These instruments may be converted into shares potentially at a discounted price and the principal amount invested may be lost. In case of conversion, the Manager might be forced to sell these new equity shares and such forced sale may result in the Sub-Fund experiencing losses.
In the event of the activation of a trigger, there may be potential price contagion and volatility to the entire asset class.
Coupon cancellation risk
Coupon payments are entirely discretionary and may be cancelled by the issuer. As a result, these instruments may be volatile and their price may decline rapidly in the event that coupon payments are suspended.
Sector concentration risk
These instruments are issued by banking and insurance institutions. The performance of the SubFund may depend to a greater extent on the overall condition of the financial services industry than for funds following a more diversified strategy.
Novelty and untested nature
The structure of these instruments is innovative yet untested. In a stressed environment, when the underlying features of these instruments will be put to the test, it is uncertain how they will
perform.
Valuation and liquidity risk
Debt instruments with loss-absorption features may also be exposed to valuation and liquidity risk.
Contingent convertible debt securities
The Sub-Fund may invest in contingent convertible debt securities, which are highly complex and are of high risk. Upon the occurrence of the trigger event, contingent convertible debt securities may be converted into shares of the issuer (potentially at a discounted price), or may be subject to the permanent write-down to zero. Coupon payments on contingent convertible debt securities are discretionary and may be cancelled by the issuer at any point, for any reason, and for any length of time.
Non-preferred senior debt securities
The Sub-Fund may invest in non-preferred senior debt securities. While these instruments are generally senior to subordinated debts, they may be subject to write-down upon the occurrence of a trigger event and will no longer fall under the creditor ranking hierarchy of the issuer. This may result in total loss of principal invested.
13. Risk of using financial derivative instruments
The use of financial derivatives instruments may expose the Sub-Fund to risks including market volatility risk, credit risk, counterparty risk, valuation risk, over-the-counter transaction risk and liquidity risk. The leverage element/component of financial derivatives instruments can result in a loss significantly greater than the amount invested in the financial derivative instruments by the Sub-Fund. In adverse situation, the use of financial derivative instruments for hedging purposes
may become ineffective and the Sub-Fund may suffer significant losses.
14. RMB currency and conversion risks and RMB classes related risks
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 investor’s investment in the Sub-Fund. 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. Under exceptional circumstances, payment of redemptions and/or dividend payment in RMB may be delayed due to the exchange controls and restrictions applicable to RMB.
Risk relating to dynamic asset allocation strategy
The dynamic asset allocation of the Sub-Fund may not achieve the desired results under all circumstances and market conditions.
The investments of the Sub-Fund may be periodically rebalanced and therefore the Sub-Fund may incur greater transaction costs than a Sub-Fund with static allocation strategy.