China Universal International Series -CUAM Hong Kong Dollar Bond Fund A HKD

匯添富港幣債券基金 A類港元

HK0000161320

Risk Rating: Level 2

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 one (1) or two (2), these are mainly aimed at providing capital preservation for investors by investing primarily in money market instruments and, investment grade sovereign bonds etc. For more details, please refer to the Due Diligence section under the Procedures page.

On Holiday

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD10,000.00Min. Subscription

0.75%

HKD10,000.00Min. Subscription

HKD

HKD10,000.00Min. Subscription

HKD10,000.00

HKD10,000.00

Daily

15:30

2019-09-30

*Not include dividends (If applicable)

Fund Performances (including dividend, if any)

1 mth
-0.13%
3 mth
+0.86%
6 mth
+1.78%
1 yr
+5.83%
3 yr
+5.81%
5 yr
-

Analytical Figures (3 years)

Annualized Return
+1.90%
Annualized Volatility
+1.77%
Sharpe Ratio
+0.49

Fund Information

Fund Houses
China Universal Asset Management (Hong Kong) Company Limited
Launch Date
2017-05-17
Fund Manager
Li Wen
Wan Qing
Zhang Hui
Manager Start Date
2004 NA 2005
Geographical Focus
Hong Kong
Asset Class/ Sector
Fixed Income - Hybrid
Risk Rating
Risk Level 2

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 one (1) or two (2), these are mainly aimed at providing capital preservation for investors by investing primarily in money market instruments and, investment grade sovereign bonds etc. For more details, please refer to the Due Diligence section under the Procedures page.

Fund AUM(As of )
-
Management Fee
0.75%
Latest Dividend
HKD 0.330000 (2019-06-17)

Sector Leaders

    No Funds

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD10,000.00Min. Subscription

0.75%

HKD10,000.00Min. Subscription

HKD

HKD10,000.00Min. Subscription

HKD10,000.00

HKD10,000.00

Daily

15:30

2019-09-30

Dividend Records

Dividend DateDividend Records (HKD)
2019-06-170.330000
2017-12-140.060000
2017-06-140.082000
2016-12-140.140000
2016-12-130.140000
2016-06-160.120000
2015-12-140.090000

Investment Objective

CUAM Hong Kong Dollar Bond Fund seeks to provide investors with a stable and consistent investment return over medium to long term by investing primarily in Hong Kong Dollar denominated debt securities instruments. The Sub-Fund will invest more than 70% of its assets in Hong Kong Dollar denominated debt securities and certificates of deposits, and not more than 30% of its assets in other currency denominated debt securities.

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 and therefore your investment in the Sub-Fund may suffer losses. There is no guarantee of dividend or distribution payments during the period an investor holds units in the Sub-Fund.
2. Risks relating to debt securities
The Sub-Fund mainly invests in debt securities which may fall in value. Investors may suffer losses as a result. Investment in the Sub-Fund is subject to risks that apply to debt securities as follows:
Interest rates risk
Investment in the Sub-Fund is subject to interest rate risk. Generally, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise.
Credit risk of issuers or counterparties
The Sub-Fund is exposed to the credit/insolvency risk of issuers of the debt securities it invests in. Such issuers may be unable or unwilling to make timely payments on principal and/or interest.
Risks relating to credit rating
Credit ratings assigned by a rating agency are not absolute standards of credit quality and do not evaluate market risks.
Downgrading risk
Investment grade securities may be subject to the risk of being downgraded to below investment grade securities. If the Sub-Fund continues to hold such securities, it will be subject to additional risk of loss.
Below investment grade and unrated securities risk
The Sub-Fund may invest in securities which are below investment grade or which are unrated. Such securities would generally be considered to have a higher degree of counterparty risk, credit risk and liquidity risk than higher rated, lower yielding securities. If the issuer of such securities defaults, or such securities cannot be realised, or perform badly, investors may suffer substantial losses.
Liquidity risk
Some of the debt securities in which a Sub-Fund invests may be illiquid, and may be difficult or impossible to sell. This would affect the Sub-Fund’s ability to acquire or dispose of such securities at their intrinsic value.
Valuation risk
Valuation of the Sub-Fund’s investment may involve uncertainties and judgmental determinations, and independent pricing information may not at all times be available. If such valuations should prove to be incorrect, the Net Asset Value of the Sub-Fund may be adversely affected. The value of fixed income instruments may be affected by changing market conditions or other significant market events affecting valuation.
3. Risk relating to convertible bonds
This Sub-Fund may invest in convertible bonds, which shares similar characteristics and nature of debt and equity, permitting holders to convert into shares in the company issuing the bond at a specific future date. Convertible bonds are subject to the credit, interest rate and market risks with both debt securities and equity securities and any risk specific to convertible bonds. Convertible bonds may also be subject to lower liquidity than the underlying equities. Therefore, investors should be prepared for greater volatility than normal bond investments, with an increased risk of capital loss.
4. Risks relating to equity securities
The Sub-Fund may hold equities in the event that the Manager converts the invested convertible bonds to equities. The value of such investments may be affected by uncertainties such as international, political and economic developments or changes in government policies. In falling equity markets there may be increased volatility. Market prices in such circumstances may defy rational analysis or expectation for prolonged periods of time, and can be influenced by movements of large funds as a result of short-term factors, counter-speculative measures or other reasons.
5. Risk of using financial derivative instruments
The use of financial derivative instruments may expose the Sub-Fund to risks including market volatility risk, credit risk, counterparty risk, liquidity risk, non-redeemable risk and issuer’s defaults risk. In adverse situation, the use of financial derivative instruments for hedging purposes may become ineffective and the Sub-Fund may suffer significant losses.
6. RMB currency risk
RMB is currently not freely convertible and is subject to exchange controls and restrictions imposed by the Mainland authorities. Investors may be adversely affected by movements of the exchange rates between RMB and other currencies.
7. RMB classes related risk
The prices of unit in the RMB classes are denominated in RMB, but the Sub-Fund may have limited RMB-denominated underlying investments and its base currency is HKD. As such, even if the prices of underlying investments and/or value of the base currency rise or remain stable, investors may still incur losses if RMB appreciates against the currencies of the underlying investments and/or the base currency more than the increase in the value of the underlying investments and/or the base currency. Furthermore, if RMB appreciates against the currencies of the underlying investments and/or the base currency, and the value of the underlying investments decreased, the value of investors’ investments in RMB classes may suffer additional losses.
Investors investing in RMB classes must subscribe for units and will normally receive redemption proceeds in RMB. Due to the exchange controls and restrictions applicable to RMB, the Sub-Fund may not be able to get sufficient amounts of RMB in a timely manner to meet redemption requests of RMB classes and/or pay dividends (if any) if all or a substantial portion of its underlying investments are non-RMB denominated. Therefore, even if the Sub-Fund aims to pay redemption proceeds and/or dividends to investors of RMB classes in RMB, investors may not receive RMB upon redemption of investments or receive dividend payments (if any) in RMB. There is also a risk that payment of investors’ redemption proceeds in RMB may be delayed when there is not sufficient RMB for currency conversion for settlement of the redemption proceeds.
When calculating the value of the RMB classes, reference will be made to the offshore RMB in Hong Kong (the “CNH”). The CNH rate may be at a premium or discount to the exchange rate for onshore RMB in China (the “CNY”) and there may be significant bid and offer spreads. While CNH and CNY represent the same currency, they are traded in different and separate markets which operate independently. As such, CNH does not necessarily have the same exchange rate and may not move in the same direction as CNY.
The value of the RMB classes thus calculated will be subject to fluctuation. The exchange rate of RMB may rise or fall. There can be no assurance that RMB will not be subject to devaluation. Any devaluation of RMB could adversely affect the value of investors’ investments in the RMB classes of the Sub-Fund. Non-RMB based (e.g. Hong Kong) investors may have to convert HKD or other currencies into RMB when investing in the RMB classes. Subsequently, investors may also have to convert the RMB redemption proceeds (received when selling the units) back to HKD or other currencies. During these processes, investors will incur currency conversion costs and may suffer losses in the event that RMB depreciates against HKD or such other currencies upon receipt of the RMB redemption proceeds.
8. Risks associated with distributions out of/effectively out of capital
Payment of distributions out of the Sub-Fund’s capital and/or effectively out of the Sub-Fund’s capital amounts to a return or withdrawal of part of a Unitholder’s original investment or from any capital gains attributable to that original investment. Any such distributions will result in an immediate reduction of the net asset value per unit.
The approval of the SFC will be sought (where necessary) and at least one month’s prior notice will be given to unitholders should there be a change in distribution policy.

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