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E Fund RMB Fixed Income Fund A Dis RMB

易方達人民幣固定收益基金 A類 Dis 人民幣

HK0000102118

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

HKD4,000.00Min. Subscription

Up to 3%

HKD4,000.00Min. Subscription

RMB

HKD4,000.00Min. Subscription

HKD4,000.00

HKD4,000.00

Daily

14:00

2020-09-30

*Not include dividends (If applicable)

Fund Performances (including dividend, if any)

1 mth
-0.42%
3 mth
+1.70%
6 mth
+5.85%
1 yr
+1.59%
3 yr
+10.19%
5 yr
+16.04%

Analytical Figures (3 years)

Annualized Return
+3.29%
Annualized Volatility
+3.52%
Sharpe Ratio
+0.70

Fund Information

Fund Houses
E Fund Management (HK) Co., Ltd. (RQFII Funds)
Launch Date
2012-02-27
Fund Manager
Sabrina Wang and Jeffrey Qi
Manager Start Date
2012-02-28
2014-07-15
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 2015-12-30)
RMB 885,700,000
Management Fee
Up to 3%
Latest Dividend
RMB 3.000000 (2016-06-21)

Sector Leaders

    No Funds

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD4,000.00Min. Subscription

Up to 3%

HKD4,000.00Min. Subscription

RMB

HKD4,000.00Min. Subscription

HKD4,000.00

HKD4,000.00

Daily

14:00

2020-09-30

Dividend Records

Dividend DateDividend Records (RMB)
2016-06-213.000000
2015-12-224.000000
2015-06-184.000000
2014-12-153.500000
2014-07-091.500000
2013-12-100.500000
2013-07-011.500000
2013-01-032.000000
2012-07-021.000000

Investment Objective

E Fund RMB Fixed Income Fund seeks to achieve long term capital growth in RMB terms through investment in a portfolio consisting primarily of RMB denominated and settled fixed income debt instruments issued or distributed within China which aim to generate a steady flow of income in addition to capital appreciation for the Sub-Fund.

Nature and Extent of Risks

Investment involves risks. Please refer to the Explanatory Memorandum for details including the risk factors.
1. Investment risk
The Sub-Fund is an investment fund and not a bank deposit. There is no guarantee of the repayment of principal.
There is also no guarantee of dividend or 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. RMB currency risk and foreign exchange risk
RMB is currently not freely convertible and is subject to exchange controls and restrictions and 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. If you convert Hong Kong Dollar or any other currency into RMB so as to invest in the Sub-Fund and subsequently convert the RMB redemption proceeds back into Hong Kong Dollar or any other currency, you may suffer a loss if RMB depreciates against Hong Kong Dollar or other currency.
Underlying investments of the Sub-Fund may be denominated in currencies other than the base currency of the Sub-Fund. Also, a class of Units may be designated in a currency other than the base currency of the Sub-Fund. The Net Asset Value of the Sub-Fund will therefore be affected 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. Risks relating to China market / Single Country Investment Risk
China is considered as an emerging market and investing in China may subject the Sub-Fund to higher economic, political, social, legal and regulatory risks than more developed economies or markets. Investments in China may also be less liquid and more volatile.
The Sub-Fund invests primarily in securities related to the China market and may be subject to additional concentration risk.
The China debt securities market may be subject to higher volatility compared to more developed markets. The prices of securities traded in such market may be subject to fluctuations.
4. PRC tax risk
There are risks and uncertainties associated with the current PRC tax laws, regulations and practice which may have retrospective effect. Any increased in tax liabilities on the Sub-Fund may adversely affect the Sub-Fund’s value.
Based on professional and independent tax advice, the tax provisioning policy of the Sub- Fund will be as follows. The Sub-Fund:
- Will not make provision for WIT made on gross realised or unrealised capital gains derived from trading of PRC debt securities with effect from 4 November 2015;
- Will make a WIT provision of 10% for the account of the Sub-Fund on PRC sourced passive income (such as dividend income or interest income) arising from investments in the PRC Securities, except such PRC sourced passive income received from 7 November 2018 to 6 November 2021; and
- Will make a VAT and local surtaxes provision at a rate of 6.78% of the bond coupon interest (except PRC government bonds or local government bonds, or such bond coupon interest received from 7 November 2018 to 6 November 2021) received by the Sub-Fund.
Any shortfall between the provision and the actual tax liabilities, which will be debited from the Sub-Fund’s assets, will adversely affect the Sub-Fund’s Net Asset Value. The actual tax liabilities may be lower than the tax provision made. Depending on timing of their subscriptions and/or redemptions, Unitholders may be disadvantaged as a result of any shortfall of tax provision and will not have the right to claim any part of the overprovision (as the case may be).
5. Risks relating to RQFII
The Sub-Fund invests in securities through a RQFII which is subject to applicable regulations imposed by the PRC authorities. Although repatriations by RQFIIs in respect of the Sub-Fund are currently not subject to repatriation restrictions or prior approval, there is no assurance 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 the Unitholders.
The application of RQFII rules may depend on the interpretation of the Chinese authorities. 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 RQFII Custodian in the execution or settlement of any transaction or in the transfer of any fund 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) may from time to time make available RQFII quota for the purpose of the Sub-Fund’s direct investment into the PRC. The Sub-Fund may not have exclusive use of the entire RQFII quota granted by SAFE to the RQFII (i.e. the Manager), as the RQFII may in its discretion allocate RQFII quota which may otherwise be available to the Sub-Fund to other fund products under the Manager’s management. There can be no assurance that the RQFII can allocate sufficient RQFII quota to the Sub-Fund to meet all applications for subscription of Units in the Sub-Fund.
6. Risks associated with the Foreign Access Regime and Bond Connect
Investing in the China Interbank Bond Market via the Foreign Access Regime and/or Bond Connect is subject to regulatory risks and various risks such as volatility risk, liquidity risk, settlement and counterparty risk as well as other risk factors typically applicable to debt securities.
The relevant rules and regulations on investment in the China Interbank Bond Market via the Foreign Access Regime and/or Bond Connect are subject to change which may have potential retrospective effect. In the event that the relevant PRC authorities suspend account opening or trading on the China Interbank Bond Market, the Sub-Fund’s ability to invest in the China Interbank Bond Market will be adversely affected. In such event, the Sub-Fund’s ability to achieve its investment objective will be negatively affected.
7. Risks relating to debt securities
The Sub-Fund mainly invests in RMB denominated debt securities and these instruments 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:
- Credit risk
The Sub-Fund is exposed to the credit/insolvency risk of issuers of the RMB denominated debt securities it invests in. Such securities 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.
Some of the debt securities may be unrated. Lower rated/ unrated securities would generally be considered to have a higher degree of counterparty risk, credit risk and liquidity risk than higher rated, lower yielding securities.
- Risks relating to credit rating
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.
- Downgrading risk
The credit rating of a debt security or its issuer may subsequently be downgraded. In the event of downgrading in the credit rating of a debt security or issuer relating to a debt security, the Sub-Fund’s investment value in such security may be adversely affected. If the Sub-Fund continues to hold such securities, it will be subject to additional risk of loss. The Manager may or may not be able to dispose of the debt instruments that are being downgraded.
- Interest rates risk
Generally, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise. The Chinese government’s macro-economic policies and controls will have significant influence over the capital markets in China. Changes in fiscal policies, such as interest rates policies, may have an adverse impact on the pricing of debt securities, and thus the return of the Sub-Fund.
- Valuation risk
Valuation of the Sub-Fund’s investments 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.
- Liquidity risk
The RMB denominated debt securities market (including both onshore and offshore markets) is at a developing stage and the trading volume may be lower than those of the more developed markets. The Sub-Fund may invest in debt securities which are not listed. Even if the debt securities are listed, the market for such securities may be inactive. The Sub-Fund is therefore subject to liquidity risks and may suffer losses in trading such instruments. The bid and offer spreads of the price of such securities may be large, so the Sub-Fund may incur significant trading and redemption costs and may suffer losses accordingly.
- Risk associated with urban investment bonds (城投債)
Urban investment bonds ( 城 投 債 ) are issued by local government financing vehicles (“LGFVs”). Although local governments may be seen to be closely connected to urban investment bonds (城投債), 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 (城投債), the Sub-Fund could suffer substantial loss and the Net Asset Value of the Sub-Fund could be adversely affected.
- Dim Sum bond markets risks
The Dim Sum bond market is still a relatively small market which is more susceptible to volatility and illiquidity. The operation of the Dim Sum bond market as well as new issuances could be disrupted causing a fall in the Net Asset Value of the Sub-Fund should there be any promulgation of new rules which limit or restrict the ability of issuers to raise RMB by way of bond issuances and/or reversal or suspension of the liberalisation of the offshore RMB (CNH) market by the relevant regulator(s).
8. Currency conversion risk
Where an investor subscribes for Units of the Sub-Fund denominated in a non-RMB currency, the Manager may convert such subscriptions into RMB prior to investment at the applicable exchange rate and subject to the applicable spread. As RMB is not freely convertible, currency conversion is subject to availability of RMB at the relevant time (i.e. it is possible there is not sufficient RMB for currency conversion in case of sizeable subscriptions). 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.
In calculating the Net Asset Value of Units of the Sub-Fund denominated in a non-RMB currency, the Manager will apply the CNH exchange rate (i.e. the exchange rate for the offshore RMB market in Hong Kong). There may be significant trading costs incurred and investing in classes of Units of the Sub-Fund denominated in a non-RMB currency may suffer losses. The value of the classes of Units of the Sub-Fund denominated in a non-RMB currency is subject to fluctuation in the CNH rate. In particular, where the CNH rate is at a premium to the CNY exchange rate, any currency conversion at the CNH rate will adversely affect the value of the relevant class of Units of the Sub-Fund denominated in a non-RMB currency in RMB terms.
9. Risks relating to sale and repurchase agreements
In the event of the failure of the counterparty with which collateral has been placed, the Sub- Fund may suffer loss as there may be delays in recovering collateral placed out or the cash originally received may be less than the collateral placed with the counterparty due to inaccurate pricing of the collateral or market movements.
Cash obtained in sale and repurchase transactions may be re-invested in securities subject to the restrictions applicable to the Sub-Fund. It is possible that the Sub-Fund may suffer loss of some or the entire re-invested amount.
10. Risks relating to reverse repurchase agreements
In the event of the failure of the counterparty with which cash has been placed, the Sub-Fund may suffer loss as there may be delay in recovering cash placed out or difficulty in realising collateral or proceeds from the sale of the collateral may be less than the cash placed with the counterparty due to inaccurate pricing of the collateral or market movements.
11. Convertible bonds risk
The Sub-Fund may invest up to 100% in convertible bonds. Convertible bonds are a hybrid between debt and equity, permitting holders to convert into shares in the company issuing the bond at a specified future date. As such, convertible bonds will be exposed to equity movement and greater volatility than straight bond investments, with an increased risk of capital loss. Investments in convertible bonds are subject to the same interest rate risk, credit risk, liquidity risk and prepayment risk associated with comparable straight bond investments.
12. Hedging / derivative risk
The Sub-Fund may invest in derivatives for hedging purposes and in adverse situations its use of financial derivative instruments may become ineffective and/or cause the Sub-Fund to suffer significant loss.
Risks associated with the use of financial derivative instruments include volatility risk, credit risk, liquidity risk, management risk, valuation risk, counterparty risk and over-the-counter transaction risk. The leverage element/component of a financial derivative instrument can result in a loss significantly greater than the amount invested in the financial derivative instrument by the Sub-Fund. Exposure to financial derivative instruments may lead to a high risk of significant loss by the Sub-Fund.
13. Risks relating to distribution out of capital
Distributions of the Sub-Fund may be paid out of the capital of the Sub-Fund. Investors should note that payment of distributions 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 and such distributions may result in an immediate reduction of the Net Asset Value of the relevant Units.