Shenyin Wanguo RQFII A Share Strategy Fund HKD

申銀萬國 RQFII A 股策略基金 港元

HK0000263076

Risk Rating: Level 6

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 five (5) or six (6), these are mainly aimed at providing capital appreciation to investors by investing primarily in single market equities, single industry equities or derivatives 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

1.50%

HKD10,000.00Min. Subscription

HKD / RMB

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
+2.98%
3 mth
+4.57%
6 mth
+0.30%
1 yr
+8.15%
3 yr
-8.22%
5 yr
-

Analytical Figures (3 years)

Annualized Return
-2.82%
Annualized Volatility
+16.76%
Sharpe Ratio
-0.18

Fund Information

Fund Houses
Shenyin Wanguo Asset Management (Asia) Limited (RQFII Funds)
Launch Date
2016-06-07
Fund Manager
Team managed
Manager Start Date
N/A
Geographical Focus
China A Shares
Asset Class/ Sector
Equity - All cap
Risk Rating
Risk Level 6

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 five (5) or six (6), these are mainly aimed at providing capital appreciation to investors by investing primarily in single market equities, single industry equities or derivatives etc. For more details, please refer to the Due Diligence section under the Procedures page.

Fund AUM(As of )
-
Management Fee
1.50%
Latest Dividend
N.A.

Sector Leaders

    No Funds

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD10,000.00Min. Subscription

1.50%

HKD10,000.00Min. Subscription

HKD / RMB

HKD10,000.00Min. Subscription

HKD10,000.00

HKD10,000.00

Daily

15:30

2019-09-30

Dividend Records

No Dividends

Investment Objective

The Sub-Fund seeks to achieve long-term capital appreciation by investing in stocks issued by companies established and operating in the PRC and listed on stock exchanges in Shanghai and Shenzhen through the RQFII quota of the RQFII Holder which is the holding company of the Manager.

Nature and Extent of Risks

Investment involves risks. Please refer to the Explanatory Memorandum for details including the risk factors.
1. Equity investment risks
- Investing in equity securities may offer a higher rate of return than those investing in short term and longer term debt securities. However, the risks associated with investments in equity securities may also be higher, because the volatility of equity prices can be high and the investment performance of equity securities depends upon factors (including changes in investment sentiment, political environment and economic environment) which are difficult to predict. As a result, the market value of the equity securities that the Sub-Fund invests in may go down as well as up which in turn may have an adverse impact on the net asset value of the Sub-Fund.
2. China market / Single country investment
The investments of the Sub-Fund are concentrated on securities related to the PRC market. Investment in the PRC market is subject to various emerging market risks including political, economic, regulatory, legal, foreign exchange and liquidity risks.
- The China equity securities market may be subject to higher market volatility compared to more developed markets. The prices of securities traded in such market may be subject to more fluctuations.
- The Sub-Fund focuses on the China equity securities market; hence the Sub-Fund is likely to be more volatile than a broad-based fund, such as a global or regional fund.
- Securities exchanges in the PRC typically have the right to suspend or limit trading in any security traded on the relevant exchange. The suspension may affect the dealings in the Sub-Fund and cause delay in payment of redemption proceeds to investors.
- The Sub-Fund’s investments in the PRC market are subject to the provisions for PRC taxes. Investors should refer to the risk factor headed “Risks relating to PRC taxation" below.
- Settlement procedures in the PRC are less developed and less reliable and may involve the Sub-Fund’s delivery of securities before the receipt of payment for their sale. Significant delays in settlement may occur, which could result in substantial losses for the Sub-Fund if investment opportunities are missed or if the Sub-Fund is unable to acquire or dispose of a security as a result.
- The risks associated with China market / single country investment to which the Sub-Fund is subject may adversely affect the net asset value of the Sub-Fund, thereby resulting in an unfavourable impact on investors’ investment in the Sub-Fund.
3. 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 repatriation by RQFIIs 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.
- Investment in securities through a RQFII will be subject to custodial risk of the RQFII Custodian appointed for purpose of safekeeping assets in the PRC. In addition, the execution and settlement of transactions or the transfer of any funds or securities may be conducted by brokers in the PRC. If the RQFII Custodian or the PRC brokers default, the Sub-Fund may face difficulty and/or encounter delays in recovering its assets and may not be able to recover all of its assets and may incur a substantial or even a total loss.
- The Sub-Fund may not have exclusive use of the entire RQFII quota granted by the State Administration of Foreign Exchange to the RQFII (i.e. the RQFII Holder), as the RQFII may in its discretion allocate RQFII quota, which may otherwise be available to the Sub-Fund, to other products and/or accounts. 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.
- The application of the rules relevant to RQFII 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.
4. RMB currency / conversion risk
- RMB is currently not freely convertible and is subject to exchange controls by the Chinese government.
- There is no guarantee that RMB will not depreciate. Investors may be adversely affected by movements of the exchange rates between RMB and other currencies. If investors 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, they may suffer a loss if RMB depreciates against Hong Kong Dollar or such other currency.
- Since the base currency of the Sub-Fund is RMB and its investments are denominated in RMB, investors who invest in the Sub-Fund via a class of Units that is not denominated in RMB (e.g. HKD) should note that they may still suffer losses as a result of the depreciation of the RMB even if there are gains or no losses in the value of the RMB-denominated investments of the Sub-Fund.
- For Units denominated in a non-RMB currency, the Manager will convert subscriptions into RMB prior to
investment; and sell the Sub-Fund’s investments denominated in RMB and convert such proceeds into non-RMB currency for payment of redemption proceeds. Consequently, there may be significant trading costs incurred and investors investing in classes of Units denominated in a non-RMB currency may therefore suffer losses.
- In calculating the net asset value of units of non-RMB class, the Manager will apply the CNH rate (i.e. the exchange rate for the offshore RMB market in Hong Kong). The CNH rate may be at a premium or discount to the exchange rate for the onshore RMB market in the PRC (i.e. the CNY exchange rate); there may be significant bid and offer spreads and the value of the Sub-Fund thus calculated may be subject to fluctuation.
- As RMB is not freely convertible, currency conversion is also 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 in non-RMB classes). The Manager has the absolute discretion to reject any application made in non-RMB currency funds for non-RMB classes where it determines that there is not sufficient RMB for currency conversion.
5. Risk relating to small- and mid-capped companies
- The Sub-Fund may invest in the securities of small- and/or mid-capped companies. Investing in these securities may expose the Sub-Fund to risks such as greater market price volatility, less publicly available information, and greater vulnerability to fluctuations in the economic cycle, which in turn, may result in an unfavourable impact on the net asset value of the Sub-Fund.
- There may be limited opportunities to find alternative ways of managing cash flows because of the relatively illiquid nature of markets in small and mid-capped companies’ securities. The securities of small- and mid-capped companies are often less liquid than securities of larger, more established companies. This may result in an unfavourable impact on the net asset value of the Sub-Fund.
6. Risks relating to PRC taxation
- The PRC tax rules and practices in relation to RQFIIs are new and their implementation is not tested and is uncertain. The Sub-Fund may be subject to the risks associated with changes in the PRC laws and regulations, including PRC tax laws, and such changes may have retrospective effect and may adversely affect the Sub-Fund. Having taken and considered independent professional tax advice and acting in accordance with such advice, the Manager currently intends to make provisions for PRC withholding income tax (“WIT”) payable by the Sub-Fund, at a rate of 10%, on dividend from investment in China A-Shares if the WIT is not withheld at source and in the absence of approval for tax exemption and reduction under double tax treaties or relevant PRC tax laws and regulations. Such provisions may be excessive or inadequate to meet the actual tax liabilities. In case of any shortfall between the provisions and actual tax liabilities, which will be debited from the Sub-Fund’s assets, the asset value of the Sub-Fund will be adversely affected.
- Unitholders may be advantaged or disadvantaged depending upon the final tax liabilities, the level of provision and when they subscribed and/or redeemed their Units. If the actual tax levied by the State Administration of Taxation is higher than that provided for by the Manager so that there is a shortfall in the tax provision amount, investors should note that the net asset value of the Sub-Fund may be lowered, as the Sub-Fund will ultimately have to bear the full amount of tax liabilities. In this case, the additional tax liabilities will only impact Units in issue at the relevant time, and the then existing Unitholders and subsequent Unitholders will be disadvantaged as such Unitholders will bear, through the Sub-Fund, a disproportionately higher amount of tax liabilities as compared to that borne at the time of investment in the Sub-Fund. On the other hand, the actual tax liabilities may be lower than the tax provision made, in which case only the then existing Unitholders will benefit from a return of the extra tax provision. Those persons who have already sold/redeemed their Units before the actual tax liabilities are determined will not be entitled or have any right to claim any part of such overprovision.
7. Investment risks
- The Sub-Fund is an investment fund. The Sub-Fund mainly invests in China A-Shares and these instruments may fall in value. Investors may suffer losses as a result. The Sub-Fund is not principal guaranteed and the purchase of its units is not the same as investing directly in the relevant securities.
8. Performance Fee Risk
- Units will be subscribed or redeemed during a performance period based on the net asset value per unit of the relevant class. There is no equalisation payment or series units for the purposes of determining the performance fee payable and as such, there is no adjustment of gains or losses in respect of each unit for each investor individually based on the timing of his subscription or redemption during the performance period. Such method of calculating performance fee gives rise to the risk that a redeeming unitholder may be subject to performance fee, even there is a loss in investment capital of the unitholder.
- A performance fee may be paid on unrealised gains which may never be realised. In addition, the payment of performance fee may create an incentive for the Manager to make investments for the Sub-Fund which are riskier or more speculative than would be the case in the absence of a fee based on the performance of the Sub-Fund. These factors may result in an unfavourable impact on investors’ investment in the Sub-Fund.

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