CSOP Shen Zhou RMB Fund

Transcription

1 Important information CSOP Shen Zhou RMB Fund (the Fund ) invests primarily in RMB denominated and settled debt instruments within mainland China through the RQFII quota of the Manager. There may not be a liquid and active market in the PRC debt securities and the Fund may be subject to liquidity risk. RMB is currently not freely convertible and is subject to exchange controls. There is no guarantee that RMB will not depreciate. The RQFII policy and rules are in the early stages of its operations. Any changes to the relevant rules may adversely impact the Fund. Investment in the China market is subject to concentration risk and risks associated with changes in the PRC laws and regulations (such as PRC tax laws and repatriation policy). The Fund is exposed to the credit/insolvency risk of issuers. Credit ratings of debt securities of the Fund are largely assigned by the Chinese local rating agencies whose rating criteria may be different from those adopted by other established international credit rating agencies. Downgrading of credit rating of the debt securities and an issuer may adversely affect the value of the Fund. Any increase in interest rates or changes in the Chinese government s macro-economic policies may adversely impact the value of the Fund s fixed income portfolio. Investors should not invest in the Fund solely based on this material and should read the Explanatory Memorandum and the Key Facts Statement of the Fund for further details. Investment involves risk. Please refer to the Explanatory Memorandum and the Key Facts Statement for details of the risks of investing in the Fund. Future performance and the capital value of the Fund are not guaranteed. Past performance figures are not an indicative for future performance. The value of units may rise as well as fall. Investors are reminded that in certain circumstances their right to redeem may be suspended. We recommend investors obtain and read a copy of the Explanatory Memorandum and the Key Facts Statement before investing. This material has not been reviewed by the Securities and Futures Commission in Hong Kong. Notes for Taiwan investors: The Fund has not been reviewed or approved by the Financial Supervisory Commission in Taiwan. The Fund is only available to Offshore Banking Unit ( OBU ) clients. OBU clients may not be protected by various laws or regulations aimed to protect onshore investors. OBU clients are encouraged to seek professional legal and financial advice before investing. Issuer: 南方東英資產管理有限公司 CSOP Shen Zhou RMB Fund Bringing you the best potential of China Market Semi-annually dividends payout# Managed by the Largest RQFII Asset Manager* # The frequency of dividend distribution may change at the discretion of the Manager * Source: the SAFE, as of 3 April 1, in terms of AUM

2 Investment Objective The Fund seeks long term and stable capital growth through investing in bonds issued within mainland China via RQFII quota of CSOP. Investment Strategy The Fund will evaluate existing systematic risk of the bond market, as well as expected risk & return of various investment assets, to construct and adjust the investment portfolio The Fund will construct the portfolio duration based on expected RMB interest rate movements The Fund will make adjustments of investment allocation based on analysis and seek to invest in undervalued bonds The 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, focusing on AA or above credit-rated bonds What is RQFII? RQFII (RMB Qualified Foreign Institutional Investor) is a policy initiative of the China Mainland authorities which allows qualified RQFII holders to channel RMB funds raised in Hong Kong to mainland securities markets. RQFII funds can invest RMB directly into mainland equity and bond markets (including the inter-bank bond and exchange-traded bond markets) through the RQFII quotas, granting retail investors access to mainland securities markets. ( CSOP ) currently holds the largest RQFII quota as of 3 April 1. (Source: the SAFE ) Why CSOP Shen Zhou RMB Fund? 1. High dividend payout ratio* Since inception as of 3 April 1, the Fund paid out dividends for 7 times and the total distribution accounted for 6.6% of inception NAV. Pure bond fund Pure bond fund delivers relatively stable performance and low volatility compared with other RQFII bond funds most of which invest in both fixed income and equities 3. High credit-rated bonds Focusing only on AA or above credit-rated bonds to ensure high quality and low volatility of the portfolio. Denominated in RMB * Source: Bloomberg, as of 3 April 1 Why China onshore bond market? 1. Onshore government and high-grade bonds are more attractive in yield given the low interest rate policy in developed markets 5 Benchmark Yield Curve in Major Economies*. Onshore markets offer higher potential return than offshore 6 Onshore vs. Offshore Bond Yield* 5 Yield (%) 3 Yield (%) Y Y 3Y Y 5Y 7Y 1Y 1Y Y 3Y Y 5Y 7Y 1Y 15Y China China (offshore) USA Germany Japan Onshore China Government Bond Offshore China Government Bond * Source: Bloomberg, as of 3 April 1

3 Fund Performance 1 8 CSOP Shen Zhou RMB Fund (Class I) ChinaBond Composite Total Return Index 6 /1 5/1 8/1 11/1 /13 5/13 8/13 11/13 /1 April 3 Months 6 Months 1 Year YTD 13 1 Since Inception* Class A # 1.1%.3% 1.91% 1.7% 3.5%.5%.3% 7.99% Class I # 1.19%.39%.19%.8% 3.% 1.5%.73% 9.3% Index** 1. %.9%.9%.9% 3.9% -.7% 3.1% 6.19% Source: CSOP, as of 3 April 1 # NAV to NAV performance with dividends reinvested * Fund s cumulative performance is calculated since the inception date on February 1 (Class A and Class I) ** The Fund uses ChinaBond Composite Total Return Index for performance comparison only, not for benchmark Investment Portfolio Portfolio Characteristics Credit Rating Portfolio Allocation Average Duration (yrs).98 % 3% % % 3% Average Credit Rating AA+ 5% Average YTM 5.9% Percentage Invested 97.1% 38% 33% 7% AA+ AAA AA Money Market Funds Cash & Others Inter-bank Bonds Money Market Funds Exchange Bonds Cash & Others Source: CSOP, as of 3 April 1

4 Fund Manager Yanming Guo, Deputy CEO Head of Fixed Income - Leads the CSOP s fixed income investment team since 9; Fund manager of the Fund since inception Specialized in China fixed income products especially investment and research of credit products, successfully setting up internal credit research and rating platform of China Southern Asset Management Co.,Ltd. ( CSAM ) More than 1 years of financial industry experience (of which 5 years Wall Street experience) Chartered Financial Analyst (CFA), Masters of Business Administration from Columbia Business School Key Facts Inception Date February 1 Base Currency RMB Launch Price RMB 1. (Class A) RMB 1. (Class I) Dealing Frequency Investment Manager Custodian RQFII Custodian Trustee & Registrar Daily Bank of China (Hong Kong) Limited Bank of China Limited BOCI-Prudential Trustee Limited Share Class All types of investors (Class A) Institutional Investors (Class I) RMB, RMB 1,, Minimum Subscription Amount USD, USD, HKD, HKD 1,, RMB 1, RMB 5, Minimum Additional Subscription Amount USD, USD 1, HKD 1, HKD 5, Management Fee 1.5% p.a. 1.% p.a. Subscription Fee Up to 3% All types of investors (Class A) Institutional Investors (Class I) ISIN HK99173 (RMB) HK186 (USD) HK18638 (HKD) HK99181 (RMB) HK1866 (USD) HK18653 (HKD) Bloomberg Code CSOPSZA HK (Class A, RMB) CSOPSZI HK (Class I, RMB)

5 CSOP: Leading the World s China Investment ( CSOP ) was founded in 8; it is the first offshore asset manager set up by a regulated asset management company in China. Leading the World s China Investment, the slogan that CSOP associates itself with, highlights the commitment CSOP has made towards bringing the theme of China Investments to the competitive international market. Leveraging on its local expertise, CSOP looks to build trusted partnership with international investors who are seeking to invest into China; building upon its overseas presence, CSOP can also offer unique international investment opportunities to domestic Chinese institutional and individual investors. CSOP is licensed by the Hong Kong Securities and Futures Commission ( SFC ) to carry on Type 1 (Dealing in Securities), Type (Advising on Securities) and Type 9 (Asset Management) regulated activities under Part V of the Securities and Futures Ordinance. CSOP manages public and private funds, provides investment advisory services and manages discretionary accounts for institutional investors, with total assets under management and advisory of USD 6.57 billion as of 3 April 1 (Source: CSOP). In terms of AUM, CSOP is the largest RMB Qualified Foreign Institutional Investor ( RQFII ) asset management company (Source: SAFE, as of 3 April 1). Under RQFII scheme, CSOP launched its first Hong Kong mutual fund - CSOP Shen Zhou RMB Fund and a series of ETFs- CSOP FTSE China A5 ETF, CSOP CES A8 ETF and CSOP China 5-Year Treasury Bond ETF. In 1, CSOP was named as the China Offshore Fund House of the Year by Asian Investor and Best China Manager in Hong Kong by Asia Asset Management. China Offshore Fund House of the Year ETF Manager of the Year Hong Kong, Best China Manager Hong Kong, Best RQFII Manager Hong Kong, Best RQFII Product Hong Kong, Best RQFII ETF Ms. Ding Chen, CEO of CEO of the Year Disclaimer Investment involves risk. Please refer to the Prospectus and the Product Key Facts Statement for details of the risks of investing in the Fund. Future performance and the capital value of the Fund are not guaranteed. Past performance figures are not an indicative for future performance. The value of units may rise as well as fall. Investors are reminded that in certain circumstances their right to redeem may be suspended. We recommend investors obtain and read a copy of the Explanatory Memorandum and the Key Facts Statement before investing. This material has not been reviewed by SFC in Hong Kong. The Fund is authorized by the Hong Kong Securities and Futures Commission ( SFC ). SFC authorization is not a recommendation or endorsement of the Fund. Issuer:, 9 May 1 Address: Two Exchange Square, 8 Connaught Place, Central, Hong Kong Telephone: (85) Website: