TaiKang Kaitai China Corporate Bond Fund A Acc USD

泰康開泰中國企業債券基金 A Acc USD

HK0000200417

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.

Non-dealing Hours

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD15,000.00Min. Subscription

1.2%

HKD15,000.00Min. Subscription

HKD / RMB / USD

HKD15,000.00Min. Subscription

HKD15,000.00

HKD15,000.00

Daily

14:30

-

*Not include dividends (If applicable)

Fund Performances (including dividend, if any)

1 mth
+0.43%
3 mth
+0.48%
6 mth
-0.78%
1 yr
+1.31%
3 yr
+0.07%
5 yr
-

Analytical Figures (3 years)

Annualized Return
+0.02%
Annualized Volatility
+2.14%
Sharpe Ratio
-0.29

Fund Information

Fund Houses
Taikang Asset Management (Hong Kong) Company Limited
Launch Date
2014-06-08
Fund Manager
Team Managed
Manager Start Date
2014-06-14
Geographical Focus
China
Asset Class/ Sector
Fixed Income - Investment grade
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 2019-11-14)
RMB 22,040,000
Management Fee
1.2%
Latest Dividend
N.A.

Sector Leaders

    No Funds

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD15,000.00Min. Subscription

1.2%

HKD15,000.00Min. Subscription

HKD / RMB / USD

HKD15,000.00Min. Subscription

HKD15,000.00

HKD15,000.00

Daily

14:30

-

Dividend Records

No Dividends

Investment Objective

The Sub-Fund seeks to provide investors with long-term capital appreciation and stable income by investing in a portfolio of fixed income securities as described below.

Nature and Extent of Risks

Investment involves risks. Please refer to the Explanatory Memorandum for details including the risk factors.
1. General investment risk
The Sub-Fund's investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Sub-Fund may suffer losses. There is no guarantee of the repayment of principal. There is also no guarantee of regular distribution payment during the period you hold units of the Sub-Fund.
2. Risks associated with exposure to RMB and the China market
-Concentration risk: The Sub-Fund's investments are concentrated in fixed income securities issued in the PRC. The value of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio of investments. The value of the Sub-Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the PRC market.
-Emerging market risk: The Sub-Fund invests in emerging markets (such as the PRC) which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
-Currency and conversion risks: 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 NAV of the Sub-Fund may be affected unfavourably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls. RMB is currently not freely convertible and is subject to exchange controls and restrictions. Non-RMB based investors are exposed to foreign exchange risk and there is no guarantee that the value of RMB against the investors' base currencies (for example USD) will not depreciate. Any depreciation of the value of RMB could adversely affect the value of investors' investments in the Sub-Fund. Although offshore RMB ("CNH") and onshore RMB ("CNY") are the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors. Under exceptional circumstances, payment of redemptions and/or distribution payment in RMB may be delayed due to the exchange controls and restrictions applicable to RMB.
-Urban investment bond risk: Urban investment bonds are issued by LGFVs, such bonds are typically not guaranteed by local governments or the central government of the PRC. 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 NAV of the Sub-Fund could be adversely affected.
-"Dim Sum" bond market risks: The "Dim Sum" bond (i.e. bonds issued outside of PRC but denominated in RMB) 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 NAV 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 CNH market by the relevant regulators.
-Risks associated with investment made through the RQFII regime: The Sub-Fund's ability to make the relevant investments or to fully implement or pursue its investment objective and strategy is subject to the applicable laws, rules and regulations (including restrictions on investments and repatriation of principal and profits) in the PRC, which are subject to change and such change may have potential retrospective effect. The Sub-Fund may suffer substantial losses if there is insufficient RQFII quota allocated for the Sub-Fund to make investments, the approval of the RQFII is being revoked/terminated or otherwise invalidated as the Sub-Fund may be prohibited from trading of relevant securities and repatriation of the Sub-Fund's monies, or if any of the key operators or parties (including RQFII custodian/brokers) is bankrupt/in default and/or is disqualified from performing its obligations (including execution or settlement of any transaction or transfer of monies or securities).
-PRC tax risk: There are risks and uncertainties associated with the current PRC tax laws, regulations and practice in respect of capital gains realised via RQFII quota or access products on the Sub-Fund's investments in the PRC (which may have retrospective effect). Any increased tax liabilities on the Sub-Fund may adversely affect the Sub-Fund's value. Based on professional and independent tax advice, the Manager considers that the Sub-Fund is exempt from PRC withholding income tax ("WIT") on capital gains derived from PRC fixed income securities/funds and therefore will not make any tax provisions in that respect. It may be possible that this is not the case (eg due to changes in applicable tax laws/ regulations or the PRC tax authorities holding a different view). In such case, the Sub-Fund may be required to pay withholding tax on capital gains, which will be debited from the Sub-Fund's assets. If so, the Sub-Fund's NAV will be adversely affected and existing and subsequent investors will be bear a disproportionately higher amount of tax liabilities as compared to the liability at the time of investment in the Sub-Fund. Based on professional and independent tax advice, the Sub-Fund will make a 10% PRC WIT provision on interest income derived from investment in PRC fixed income securities. 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 NAV. The actual tax liabilities may be lower than the tax provision made. Depending on the timing of their subscriptions and/or redemptions, investors 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). Investors should seek their own tax advice on their tax position with regard to their investment in the Sub-Fund.
3. Risks relating to fixed income securities
-Credit/counterparty risk: The Sub-Fund is exposed to the credit/default risk of issuers of the fixed income securities that it invests in.
-Interest rate risk: Investment in the Sub-Fund is subject to interest rate risk. In general, the prices of fixed income securities rise when interest rates fall, whilst their prices fall when interest rates rise.
-Credit rating risk: Credit ratings assigned by rating agencies are subject to limitations and do not guarantee the creditworthiness of the security and/or issuer at all times.
-Credit rating agency risk: The credit appraisal system in the PRC and the rating methodologies employed in the PRC may be different from those employed in other markets. Credit ratings given by PRC rating agencies may therefore not be directly comparable with those given by other international rating agencies.
-Risks associated with debt securities rated below Investment Grade or unrated: The Sub-Fund may invest in fixed income securities rated below Investment Grade or unrated. Such securities are generally subject to lower liquidity, higher volatility and greater risk of loss of principal and interest than high-rated debt securities.
-Downgrading risk: The credit rating of a fixed income security or its issuer may be downgraded. In the event of such downgrading, the value of the Sub-Fund may be adversely affected. The Manager may or may not be able to dispose of the fixed income securities that are being downgraded.
-Valuation risk: Valuation of the Sub-Fund's investments may involve uncertainties and judgmental determinations. If such valuations should prove to be incorrect, the NAV of the Sub-Fund may be adversely affected.
-Sovereign debt risk: The Sub-Fund's investment in securities issued or guaranteed by governments may be exposed to political, social and economic risks. In adverse situations, the sovereign issuers may not be able or willing to repay the principal and/or interest when due or may request the Sub-Fund to participate in restructuring such debts. The Sub-Fund may suffer significant losses when there is a default of sovereign debt issuers.
-Risks associated with collateralised and/or securitised products (such as ABS): The Sub-Fund invests in ABS 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. They 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.
-Volatility and liquidity risk: The fixed income securities in some of the markets that the Sub-Fund invests in 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. The bid and offer spreads of the prices of such securities may be large and the Sub-Fund may incur significant trading costs.
4. Risks of investing 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, convertibles will be exposed to equity movement and greater volatility than straight bond investments. 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.

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