Franklin Sealand China Prospect Mixed Assets Fund H-CNH

富蘭克林國海潛力組合混合型證券投資基金 H類-人民幣

CNE1000025B5

Risk Rating: Level 5

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.

Non-dealing Hours

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD10,000.00Min. Subscription

1.50%

HKD10,000.00Min. Subscription

RMB

HKD10,000.00Min. Subscription

HKD10,000.00

HKD10,000.00

Daily

14:30

-

*Not include dividends (If applicable)

Fund Performances (including dividend, if any)

1 mth
+3.70%
3 mth
+8.53%
6 mth
+14.79%
1 yr
+38.79%
3 yr
+36.16%
5 yr
-

Analytical Figures (3 years)

Annualized Return
+10.84%
Annualized Volatility
+15.19%
Sharpe Ratio
+0.68

Fund Information

Fund Houses
Franklin Templeton Investments (Asia) Ltd
Launch Date
2016-04-06
Fund Manager
Li Rong Xu
Manager Start Date
2014-02-21
Geographical Focus
China
Asset Class/ Sector
Balanced - Equity biased
Risk Rating
Risk Level 5

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 2019-09-29)
RMB 2,288,161,739.193
Management Fee
1.50%
Latest Dividend
RMB 0.056300 (2019-09-24)

Sector Leaders

    No Funds

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD10,000.00Min. Subscription

1.50%

HKD10,000.00Min. Subscription

RMB

HKD10,000.00Min. Subscription

HKD10,000.00

HKD10,000.00

Daily

14:30

-

Dividend Records

Dividend DateDividend Records (RMB)
2019-09-240.056300

Investment Objective

The Fund seeks long-term appreciation of assets by investing primarily in the stocks of listed companies with future earnings growth and undervalued assets, in order to provide investors with long-term and stable capital appreciation.

Nature and Extent of Risks

Investment involves risks and there is no guarantee of the repayment of principal. Please refer to the offering document for details including the risk factors.
1. Risks associated with the MRF arrangement
Quota restrictions: The Mainland-Hong Kong Mutual Recognition of Funds (MRF) scheme is subject to an overall quota restriction. Subscription of units in the Fund may be suspended at any time if such quota is used up.
Failure to meet eligibility requirements: If the Fund ceases to meet any of the eligibility requirements under the MRF, it may not be allowed to accept new subscriptions. In the worst scenario, the SFC may even withdraw its authorization for the Fund to be publicly offered in Hong Kong for breach of eligibility requirements. There is no assurance that the Fund can satisfy these requirements on a continuous basis.
Mainland China tax risk: Currently, certain tax concessions and exemptions are available to the Fund and/or its investors under the MRF regime. There is no assurance that such concessions and exemptions or Mainland tax laws and regulations will not change. Any change to the existing concessions and exemptions as well as the relevant laws and regulations may adversely affect the Fund and/or its investors and they may suffer substantial losses as a result.
Different market practices: Market practices in the Mainland China and Hong Kong may be different. In addition, operational arrangements of the Fund and other public funds offered in Hong Kong may be different in certain ways. For example, subscriptions or redemption of units of the Fund may only be processed on a day when both Mainland China and Hong Kong markets are open, or it may have different cut-off times or dealing day arrangements versus other SFC-authorised funds. Investors should ensure that they understand these differences and their implications.
2. Investment risk
The Fund is an investment fund. There is no guarantee of the repayment of principal or the payment of dividends or distributions. Further, there is no guarantee that the Fund will be able to achieve its investment objectives and there is no assurance that the stated strategies can be successfully implemented.
3. Concentration risk / Mainland China market risk
The Fund invests primarily in securities related to the Mainland China market and may be subject to additional concentration risk. Investing in the Mainland China market may give rise to different risks including political, policy, tax, economic, foreign exchange, legal, regulatory and liquidity risks.
4. RMB currency and conversion risks
RMB is currently not freely convertible and is subject to exchange controls and restrictions. There is no guarantee that RMB will not depreciate.
Investments acquired by the Fund will be denominated in RMB whereas the classes of units of the Fund may be denominated in other currencies which may also be different from the investor’s base currency. This may expose investors to exchange rate fluctuations.
Under exceptional circumstance, investors of the H-CNH class may not receive RMB upon redemption of investments and/or dividend payment or such payment may be delayed due to the exchange controls and restrictions applicable to RMB.
5. Mainland China equity risk
Market risk: The 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.
Volatility risk: High market volatility and potential settlement difficulties in the Mainland China equity markets may also result in significant fluctuations in the prices of the securities traded on such markets and thereby may adversely affect the value of the Fund.
Policy risk: Securities exchanges in Mainland China typically have the right to suspend or limit trading in any security traded on the relevant exchange. The government or the regulators may also implement policies that may affect the financial markets. All these may have a negative impact on the Fund.
High valuation risk: The stocks listed on the Mainland China stock exchanges may have a higher price-earnings ratio; and such high valuation may not be sustainable.
Liquidity risk: Securities markets in Mainland China may be less liquid than other developed markets. The Fund may suffer substantial losses if it is not able to dispose of investments at a time it desires.
Risk associated with small-capitalisation / mid-capitalisation companies: The stock of smallcapitalisation / mid-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalization companies in general.
6. Mainland China debt securities risk
Volatility and liquidity risks: The Mainland China debt securities markets may be subject to higher volatility and lower liquidity compared to more developed markets. The prices of securities traded in such markets may be subject to fluctuations.
Counterparty risk: The Fund is exposed to the credit/default risk of issuers of the debt securities that the Fund may invest in.
Interest rate risk: Investment in the Fund is subject to interest rate risk. In general, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise.
Downgrading risk: The credit rating of a debt instrument or its issuer may subsequently be downgraded. In the event of such downgrading, the value of the Fund may be adversely affected. The Fund Manager may or may not be able to dispose of the debt instruments that are being downgraded.
Credit rating agency risk: The credit appraisal system in Mainland China and the rating methodologies employed in Mainland China may be different from those employed in other markets. Credit ratings given by Mainland China rating agencies may therefore not be directly comparable with those given by other international rating agencies.
Risk associated with urban investment bonds: The Fund may invest in urban investment bonds. Urban investment bonds are issued by local government financing vehicles (“LGFVs”), such bonds are typically not guaranteed by local governments or the central government of Mainland China. In the event that the LGFVs default on payment of principal or interest of the urban investment bonds, the Fund could suffer substantial loss and the net asset value of the Fund could be adversely affected.
Risk associated with asset-backed securities: The Fund may invest in asset-backed securities (including asset-backed commercial papers) which may be highly illiquid and prone to substantial price volatility. These instruments may be subject to greater credit, liquidity and interest rate risk compared to other debt securities. The y are often exposed to extension and prepayment risks and risks that the payment obligations relating to the underlying assets are not met, which may adversely impact the returns of the securities.
Risk associated with debt securities which are rated BB+ or below by a Mainland China credit rating agency or unrated: The Fund may invest in debt securities rated BB+ or below by a Mainland China credit rating agency or unrated. Such securities are generally subject to lower liquidity, higher volatility and greater risk of loss of principal and interest than highrated debt securities.
7. Distribution out of capital risk
Investors should note that the payment of distributions out of capital represents a return or a withdrawal of part of the amount they originally invested or capital gain attributable to that. Any distributions involving payment of dividends out of capital of the Class H-CNH Units, Class H-USD Units and Class H-HKD Units will result in an immediate decrease in the Net Asset Value per unit of the relevant Class H-CNH Units, Class H-USD Units and Class HHKD Units.
8. Risks associated with the Small and Medium Enterprise (SME) board and ChiNext market
Higher fluctuation on stock prices: Listed companies on the SME board and/or the ChiNext market are usually of emerging nature with smaller operating scale. Hence, they are subject to higher fluctuation in stock prices and liquidity and have higher risks and turnover ratios than companies listed on the main board.
Over-valuation risk: Stocks listed on SME board and/or the ChiNext market may be overvalued and such exceptionally high valuation may not be sustainable. Stock price may be more susceptible to manipulation due to fewer circulating shares.
Differences in regulation: The rules and regulations regarding companies listed on the ChiNext market are less stringent in terms of profitability and share capital than those in the main board and the SME board.
Delisting risk: It may be more common and faster for companies listed on the SME board and/or the ChiNext market to delist. This may have an adverse impact on the Fund if the companies that it invests in are delisted.
Investments in the SME board and/or the ChiNext market may result in significant losses for the Fund and its investors.

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Hotline

852
3896 3896

1501, 15/F, 101 King's Road,
North Point, Hong Kong

Mon - Fri (excluding public holidays)
09:00 - 18:00

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