CSOP Shen Zhou RMB Fund A Dis RMB

南方神州人民幣基金 A類 Dis 人民幣

HK0000099173

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.

On Holiday

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD30,000.00Min. Subscription

1.50%

HKD15,000.00Min. Subscription

RMB

HKD30,000.00Min. Subscription

HKD30,000.00

HKD30,000.00

Daily

15:30

2019-09-30

*Not include dividends (If applicable)

Fund Performances (including dividend, if any)

1 mth
+0.49%
3 mth
+1.27%
6 mth
+1.77%
1 yr
+4.30%
3 yr
+4.06%
5 yr
+17.72%

Analytical Figures (3 years)

Annualized Return
+1.33%
Annualized Volatility
+1.94%
Sharpe Ratio
+0.10

Fund Information

Fund Houses
CSOP Asset Management Limited (RQFII Fund)
Launch Date
2012-02-21
Fund Manager
Team managed
Manager Start Date
Team managed
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 2016-12-30)
RMB 391,000,000
Management Fee
1.50%
Latest Dividend
RMB 0.050000 (2019-07-01)

Sector Leaders

    No Funds

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD30,000.00Min. Subscription

1.50%

HKD15,000.00Min. Subscription

RMB

HKD30,000.00Min. Subscription

HKD30,000.00

HKD30,000.00

Daily

15:30

2019-09-30

Dividend Records

Dividend DateDividend Records (RMB)
2019-07-010.050000
2019-03-310.050000
2019-01-010.050000
2018-10-070.050000
2018-07-020.050000
2018-04-020.050000
2018-01-010.050000
2017-10-080.050000
2017-07-020.050000
2017-04-040.020000
2017-01-120.120000
2016-10-100.130000
2016-07-040.120000
2016-03-310.120000
2016-01-070.130000
2015-10-070.130000
2015-07-010.120000
2015-04-070.120000
2015-01-040.130000
2015-01-010.130000
2014-10-070.080000
2014-07-010.120000
2014-03-310.050000
2013-10-070.080000
2013-07-010.130000
2013-04-010.100000
2013-01-030.060000
2012-10-070.120000
2012-07-020.120000

Investment Objective

CSOP Shen Zhou RMB Fund seeks long term and stable capital growth through investing primarily in bonds issued within mainland China through the RQFII quota of the Manager.
The Sub-Fund will invest primarily in RMB denominated and settled debt securities issued or distributed within mainland China by governments, quasi-government organizations, financial institutions and other corporations, for example, government bonds and notes, municipal bonds, corporate bonds, financial bonds, commercial papers and convertible bonds. These securities may be listed on a stock exchange or traded in the interbank bond market.

Nature and Extent of Risks

Investment involves risks. Please refer to the offering document for details including the risk factors.
1. Investment risk
The Sub-Fund is an investment fund. There is no guarantee of the repayment of principal. There is also no guarantee of regular distribution payments during the period you hold the units of the Sub-Fund. The instruments invested by the Sub-Fund may fall in value and therefore your investment in the Sub-Fund may suffer losses.
2. China market risk / Single country investment risk
The Sub-Fund invests primarily in securities related to the China market and may be subject to additional concentration risk and is likely to be more volatile than a broad-based fund, such as a global or regional fund, or a fund which invests in more developed markets. The prices of securities traded in the China debt securities market may have higher volatility compared to more developed markets.
Investment in the China market is subject to emerging market risk including greater political, economic, legal, foreign exchange, regulatory and liquidity risks.
3. PRC tax risk
There are risks and uncertainties associated with the current PRC 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 reassessment and having taken and considered independent professional tax advice and in accordance with such advice, the Manager decided that with effect from 22 April 2014, no withholding provision will be made on the gross unrealised and realised capital gains derived from the disposal of RMB denominated and settled debt securities issued or distributed within mainland China.
It is possible that the applicable tax laws may be changed, that the PRC tax authorities may hold a different view as to the enforcement of the PRC withholding tax and collection on capital gains. In such case the Sub-Fund will bear the actual tax liabilities as no tax provision has been made. This may have an adverse impact to the Sub-Fund’s Net Asset Value. In this case, existing and subsequent investors will be disadvantaged as they bear for a disproportionately higher amount of tax liabilities as compared to the liability at the time of investment in the Sub-Fund.
4. RQFII risk
The Sub-Fund invests in securities through a RQFII and repatriations by RQFIIs in respect of the Sub-Fund are currently not subject to repatriation restrictions or prior approval. However, there is no assurance that PRC rules and regulations will not change or that repatriation restrictions will not be imposed in the future.
The RQFII rules are relatively new – their application may depend on the interpretation of the Chinese authorities and may have retrospective effects. Any changes to the relevant rules may have an adverse impact on investors’ investment in the Sub-Fund.
In the event of any default of either a PRC broker or the PRC Custodian 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 Manager (as RQFII holder) may from time to time make available RQFII quota for the purpose of the Sub-Fund’s direct investment into the PRC. However, there is no assurance that the Manager will make available RQFII quota that is sufficient for the Sub-Fund’s investment at all times. This may result in rejection of applications for subscription in the Sub-Fund.
5. RMB currency risk
Renminbi is currently not freely convertible and is subject to exchange controls by the Chinese government. Investors may be adversely affected by movements of the exchange rates between Renminbi and other currencies. There is no guarantee that RMB will not depreciate. Any depreciation of the value of RMB could adversely affect the value of investors’ investments in the Sub-Fund.
6. Currency conversion risk
Investors of non-RMB denominated units are subject to foreign exchange risks due to the foreign exchange movements between RMB and other currencies and the spread between the CNH rate (i.e. the exchange rate for the offshore RMB market in Hong Kong) and CNY rate (i.e. the exchange rate for the onshore RMB market in the PRC) and additional conversion costs. Currency conversion is also subject to the Sub-Fund's ability to convert the proceeds denominated in RMB into non-RMB currency which, in turn, might affect the Sub-Fund's ability to meet redemption requests from the Unitholders or delay the payment of redemption proceeds.
7. Risks relating to debt securities
a. Credit risk
The Sub-Fund invests in RMB denominated debt securities which are typically unsecured debt obligations and are not supported by collateral. The Sub-Fund is therefore fully exposed to the credit/insolvency risk of its counterparties as an unsecured creditor.
b. 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.
c. Risks relating to credit rating / downgrading risk
The rating criteria and methodology used by Chinese local rating agencies may be different from those adopted by most of the established international credit rating agencies. Therefore, such rating system may not provide an equivalent standard for comparison with securities rated by international credit rating agencies.
Rated securities may be subject to the risk of being downgraded and this may adversely affect the value of investments in such securities in the event of downgrading.
d. Valuation risk
Valuation of the Sub-Fund’s investments may involve uncertainties and judgmental determinations. If such valuations should prove to be incorrect, the Net Asset Value of the Sub-Fund may be adversely affected.
e. Risk associated with urban investment bonds
Urban investment bonds are issued by LGFVs. Although local governments may appear to be connected to urban investment bonds, such bonds are typically not guaranteed by local governments or the central government of the PRC. As such, local governments or the central government of the PRC are not obliged to support any LGFVs in default. In the event that the LGFVs default on payment of principal or interest of the urban investment bonds, the Sub-Fund could suffer substantial loss and the Net Asset Value of the Sub-Fund could be adversely affected.
f. Liquidity risk
The RMB denominated debt securities market is at a developing stage and the trading volume may be lower than those of the more developed markets.
In the absence of an active secondary market, the Sub-Fund may need to liquidate its investments at a substantial discount in order to satisfy redemption requests The Sub- Fund may incur significant trading and realisation costs and may suffer losses accordingly.
8. Risks relating to distribution from capital
The Manager, may at its discretion, pay dividends out of or effectively pay dividend out of capital, resulting in an increase in distributable income for the payment of dividends by the Sub-Fund. The payment of distributions out of capital or effectively out of capital amounts to a return or a withdrawal of part of the amount an investor originally invested or capital gains attributable to that amount, and may result in an immediate decrease in the net asset value of the relevant units.

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