Buyers Guide to RMB Bonds. Main author: Bryan Collins

Size: px
Start display at page:

Download "Buyers Guide to RMB Bonds. Main author: Bryan Collins"

Transcription

1 Buyers Guide to RMB Bonds Main author: Bryan Collins

2 RMB bond investors need to do their homework first The RMB bond market is a relatively new and exciting investment opportunity, with RMB bond having grown in popularity and number over the past one-to-two years. The growth to date has been impressive but sorting through the issues affecting the asset class and understanding the risks is becoming increasingly challenging. This guide aims to outline the key investment strategies on offer in the market and provides some suggestions as to the questions investors need to ask when selecting a fund. As always, investment goals vary, so seeking independent financial advice is recommended before making any investment decision. 2

3 There are three main types of RMB bond Dim Sum RMB hedged Onshore RMB The dim sum market refers to RMB-denominated and settled issued offshore. Dim sum invest mostly in these securities but may have some ability to invest in non- RMB denominated bonds that are then hedged back to RMB. Typically invest in USD-denominated bonds and are fully hedged back to RMB. They may not actually hold any dim sum bonds and can hold bonds of varying credit quality (high yield, investment grade, government, convertible bonds, CNY synthetic bonds) and can include securities from various countries, not necessarily Chinese or Asian issuers. In this group we can also include bond of any kind that happen to have a fully hedged RMB share class. RQFII 1 or QFII use the developing Chinese quota system by accessing the onshore Chinese bond or equity markets almost exclusively. Although the onshore Chinese market is large, it remains relatively undeveloped, so understanding credit quality, interest rate risk and liquidity is very important with these. Most onshore invest exclusively in Chinese issuers as very few multinational corporations (MNCs) are able to issue in that market, whereas offshore dim sum and RMB-hedged (i.e. those not using a QFII or RQFII quota) may invest in Chinese, Asian or other multinational issuers more familiar to offshore investors. 1. The Renminbi Qualified Foreign Institutional Investor (RQFII) scheme permits qualified investors to channel offshore RMB into mainland bond and stock markets. It follows the Qualified Foreign Institutional Investor (QFII) scheme, which was introduced in 2002 and principally designed to allow licensed foreign investors to buy and sell RMB denominated A shares in China s mainland stock exchanges. These quotas are limited in size, subject to change and the manager s ability to repatriate back offshore can be impaired in certain circumstances. 3

4 Points to note What s important to note, as you may have noticed, is that not all RMB bond carry the same risks, despite having similar names. Currency: While they may all offer exposure to the RMB currency, there are several ways to get exposure to the currency including directly onshore, via CNH (offshore RMB) or by using currency forwards for hedging (including CNH deliverable and nondeliverable CNY forwards). Credit quality: Funds will also vary greatly in terms of credit quality, some invest heavily in high yield bonds, others may focus on investment grade and the underlying interest rate risks will vary too. Onshore are essentially exposed to Chinese inflationary and interest rate risks, while offshore RMB hedged may have more implicit exposure to US interest rate risk if they are buying USD denominated bonds and hedging them back to RMB. Dim sum are more aligned to onshore Chinese interest rates but remain somewhat independent. However given the dim sum market is a relatively short duration market at this stage, duration risk is typically low and more dependent on underlying credit risk. 4

5 So what should you be asking when selecting a fund? Here are some key questions that we think are important when trying to gauge the risks and opportunities of various types of and deciding which is right for you. These questions are also worth considering when reviewing a fund after a period of time, as fund strategies can change a concept known as style-shift or -drift Questions to Ask: 1. What is the fund s goal or objective? Is it income, capital gain or both? Risks attached to bond vary and with higher potential returns, comes higher risk. 2. What is the fund s investment strategy? The fund should have a clearly-stated strategy, so that it can be easily categorized as one of the 3 fund types above and the investor can start to gauge risk. You should also ask whether the fund has any limits on credit quality -- in other words, does the fund buy investment grade or high yield bonds or both and in what combination. High yield is a common component of many RMB bond but that exposure carries much higher risks than investment grade government or corporate bonds, so investors must pay particular attention in this case. 3. What are the main risks of investing in the fund? Understanding risk is critical to being an informed investor. Markets can go up and down, and you can make or lose money in any investment, so understanding how a fund may react when markets are weak as well as strong, is also important. Also, given that the RMB bond market is new, we have yet to see a full credit cycle, so this aspect can be challenging. Also keep in mind that past performance is no indicator of what will happen in the future, and given some have flexible strategies, risks within a fund may have changed significantly. To help gauge risks we suggest investors break it down as follows: credit risk, interest rate risk and liquidity risk, and others. For example: interest rate risk: the risk that the value of an investment will fall as interest rates rise. This is closely related to inflation risk - the risk that the value of an investment will be eroded as inflation rates rise (eg. cash is typically low risk but often does not deliver a return at or above the rate of inflation. A fund s duration will help here a larger duration means more sensitivity to rising yields. credit risk: the risk that an obligation will not be paid and this is much higher with more leveraged companies that issue high yield bonds. liquidity risk: the risk that a manager will not be able to buy or sell an investment quickly because buying and selling opportunities are limited and/or expensive. currency risk: the risk that the fund will lose value due to fluctuations in the rate of exchange, namely that the RMB depreciates in value against the USD, EUR or your base currency. political risk: the risk that a foreign investment will lose value due to unfavourable political or regulatory changes in that country, including changes to the convertibility of the RMB or availability of RMB offshore. 4. What are the fund s fees and expenses? Management fees may not include all costs. Upfront or other ongoing advisor or distributor fees may need to be included. All managers should be able to tell you this and will include this information in the offering documents or prospectus. How readily can I buy and sell the fund s shares or units? Many are priced daily allowing you to buy and sell readily, others may be only available once a week or month. For that price daily, some may also not price during special holiday periods, such as Chinese New Year, whereas others may still be open. 5. How are the fund s distributions determined? If the fund pays a distribution you should know whether it is paid based on the underlying income generated by the bonds it holds or whether the distribution is sometimes supplemented by paying out any capital gains (or losses) generated. Also ask whether any FX hedging gains are used to supplement income, because this may increase or decrease income as well as the value of the investment if the RMB moves against other currencies. 6. What information is available about the fund? Ask for regular updates, top holdings, information on portfolio concentration, yield to maturity (YTM) as well as distribution yield (running yield), the fund's duration (interest rate sensitivity), number of issuers as well as the number of securities and ask for the average credit rating and breakdown (if the fund has large exposures to non-rated bonds, these are often of lower quality, so the manager should be able to give you an equivalent rating). Knowing the number of issuers and securities is important to evaluate concentration risk, as all other things equal, fewer names and concentrated exposure results in higher risk. 7. What s the investment horizon? A relatively simple question to ask but where the answer will invariably depend on your own investment goals. In general, the riskier the fund, the longer the investment horizon should be to weather any volatility. 8. How do I benchmark performance? It is always important to measure return given the underlying risks. This may not always mean how has the fund performed against an index but also how has it performed against other of similar risk. While there are now many indices to compare, they, just like the various RMB bond fund strategies, vary significantly and so may not always provide a definitive comparison, but they do help understand differences in return and volatility. As a good rule of thumb, first get comfortable with the investment strategy and risks. In summary: If something sounds too good to be true, it probably is. 5

6 Table Some onshore RMB bond have drawn attention to the superior yields on offer versus Dim Sum bonds currently, but investors should gauge the full risk/return profile of a fund before investing. We list the key differences below: Offshore/CNH RMB bond market Onshore/CNY RMB bond market CNH RMB deposits Market size RMB360 billion RMB22042 billion RMB448 billion Issuer composition China, Hong Kong and overseas corporates China Mostly state-owned enterprises (SOE) related Sector 59% corporates 41% treasury bonds, central bank notes and policy bank bonds 26% corporates 74% government Some banks and financial institutions Deposits protected by the Deposit Protection Scheme, with a compensation limit n/a Number of issuers >100 <200 n/a Number of securities >150 >3000 n/a Daily liquidity Yes Yes No Redemption Penalty No No Penalty: forfeit interest and incur administration fee Yield 3-5% 3-5% Variable, with higher rates mainly for promotional periods Duration 2-3 years 4-5 years n/a Accessibilities Requires no quotas Requires a QFII or RQFII quota Subject to RMB conversion limit for HK residents Rating agencies International rating agencies e.g. S&P, Moody s, Fitch, etc. Local rating agencies n/a Credit rating composition Rated: 65% Mostly unrated by international rating agencies n/a Unrated: 35% Transparency High Low High Tax No withholding tax Withholding tax on interest income No tax Governing law HK, UK, US and Europe PRC HK Source: FIL Limited, Citi Research, September 2012; HKMA, Hong Kong Deposit Protection Board, January 2013 Please note RMB is not freely convertible and is subject to exchange control imposed by the Chinese government. There is no assurance that RMB will not be subject to devaluation. RMB debt securities and bank deposits are typically unsecured debt obligations not supported by any collateral, which are generally subject to a higher credit risk. FIL Limited and its subsidiaries are commonly referred to as Fidelity or Fidelity Worldwide Investment. Fidelity only gives information about its products and services. Any person considering an investment should seek independent advice on the suitability or otherwise of the particular investment. Investment involves risks. Past performance is not indicative of future performance. Please refer to the Fidelity Prospectus for Hong Kong Investors for further information including the risk factors. If investment returns are not denominated in HKD or USD, US/HK dollar based investors are exposed to exchange rate fluctuations. Fidelity, Fidelity Worldwide Investment, the Fidelity Worldwide Investment logo and F symbol are trademarks of FIL Limited. The material is issued by FIL Investment Management (Hong Kong) Limited and it has not been reviewed by the Securities and Futures Commission ( SFC ). 6

Industrial and Commercial Bank of China Limited Dealing frequency: Daily on each business day *

Industrial and Commercial Bank of China Limited Dealing frequency: Daily on each business day * APRIL 2016 This statement provides you with key information about Income Partners RMB Bond Fund (the Sub-Fund ). This statement is a part of the offering document and must be read in conjunction with the

More information

PRODUCT KEY FACTS BOCHK RMB Fixed Income Fund

PRODUCT KEY FACTS BOCHK RMB Fixed Income Fund PRODUCT KEY FACTS BOCHK RMB Fixed Income Fund a sub-fund of the BOCHK Investment Funds Issuer: BOCI-Prudential Asset Management Limited 29 April 2016 This statement provides you with key information about

More information

HFT (HK) CHINA INVESTMENT SERIES II HFT (HK) CHINA HIGH YIELD BOND FUND (the Sub-Fund )

HFT (HK) CHINA INVESTMENT SERIES II HFT (HK) CHINA HIGH YIELD BOND FUND (the Sub-Fund ) PRODUCT KEY FACTS HFT (HK) CHINA INVESTMENT SERIES II HFT (HK) CHINA HIGH YIELD BOND FUND (the Sub-Fund ) Issuer: HFT Investment Management (HK) Limited April 2015 This statement provides you with key

More information

RMB Internationalization & Hong Kong. Graham Coker Trade Director, Transaction Services UK & Ireland

RMB Internationalization & Hong Kong. Graham Coker Trade Director, Transaction Services UK & Ireland RMB Internationalization & Hong Kong Graham Coker Trade Director, Transaction Services UK & Ireland RMB Internationalisation China s Market Reform Agenda RMB is called CNY onshore and CNH offshore. Hong

More information

DCI Investment Trust. Da Cheng China RMB Fixed Income Fund. Addendum to the Explanatory Memorandum dated January 2012 ( Explanatory Memorandum )

DCI Investment Trust. Da Cheng China RMB Fixed Income Fund. Addendum to the Explanatory Memorandum dated January 2012 ( Explanatory Memorandum ) DCI Investment Trust Da Cheng China RMB Fixed Income Fund Addendum to the Explanatory Memorandum dated January 2012 ( Explanatory Memorandum ) IMPORTANT NOTE: This Addendum is supplemental to and forms

More information

Renminbi (RMB) corporate and treasury services in London

Renminbi (RMB) corporate and treasury services in London Renminbi (RMB) corporate and treasury services in London City of London RENMINBI SERIES London offers an extensive range of RMB corporate banking services including: o Corporate accounts; o Term deposits;

More information

JPMorgan Global Bond Fund. Global investing - A less volatile choice NEW. SFC-authorised global bond fund with RMB-hedged share classes*!

JPMorgan Global Bond Fund. Global investing - A less volatile choice NEW. SFC-authorised global bond fund with RMB-hedged share classes*! AVAILABLE FOR PUBLIC CIRCULATION NEW JPMorgan Global Bond Fund December 2015 Asset Management Company of the Year 2014 Fundamental Strategies, Asia + Important information 1. The Fund invests primarily

More information

CSOP Shen Zhou RMB Fund

CSOP Shen Zhou RMB Fund 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

More information

Treasury Bonds directly makes the Sub-Fund riskier than traditional exchange traded funds investing in A-Shares or in markets other than the PRC.

Treasury Bonds directly makes the Sub-Fund riskier than traditional exchange traded funds investing in A-Shares or in markets other than the PRC. IMMEDIATE RELEASE IMPORTANT NOTES 1. E Fund Citi Chinese Government Bond 5-10 Years Index ETF (the Sub-Fund ) is a passively managed exchange traded fund ( ETF ) and is traded on the Stock Exchange of

More information

CHINA S OFFSHORE RMB MARKET

CHINA S OFFSHORE RMB MARKET INTERNATIONAL SERVICES WHITE PAPER CHINA S OFFSHORE RMB MARKET AN OVERVIEW FOR MANAGERS AND FINANCIAL PERSONNEL By Daniel Joseph, PNC s International Treasury Management group PNC offers a library of materials

More information

Product Key Facts. PineBridge Global Funds PineBridge Global Emerging Markets Bond Fund. 22 December 2014

Product Key Facts. PineBridge Global Funds PineBridge Global Emerging Markets Bond Fund. 22 December 2014 Issuer: PineBridge Investments Ireland Limited Product Key Facts PineBridge Global Funds PineBridge Global Emerging Markets Bond Fund 22 December 2014 This statement provides you with key information about

More information

PRODUCT KEY FACTS STATEMENT

PRODUCT KEY FACTS STATEMENT Issuer: Hang Seng Investment Management Limited This is an exchange traded fund. PRODUCT KEY FACTS STATEMENT Hang Seng H-Share Index ETF 30 December 2016 This statement provides you with key information

More information

Enriching knowledge series: Learn more about stock listing, bonds and funds investment

Enriching knowledge series: Learn more about stock listing, bonds and funds investment Enriching knowledge series: Learn more about stock listing, bonds and funds investment June 2012 External Relations Rundown Part 1: New stock listing methods Break Part 2: Credit ratings and ibonds Part

More information

83118 - RMB counter 03118 - HKD counter. 100 Units- RMB counter 100 Units HKD counter 3.10% MSCI China A Index. Renminbi (RMB) 31 December

83118 - RMB counter 03118 - HKD counter. 100 Units- RMB counter 100 Units HKD counter 3.10% MSCI China A Index. Renminbi (RMB) 31 December Issuer: Harvest Global Investments Limited PRODUCT KEY FACTS Harvest MSCI China A Index ETF A sub-fund established under the Harvest Funds (Hong Kong) ETF This is an exchange traded fund. This statement

More information

CNH Market--A Burgeoning Offshore RMB Market

CNH Market--A Burgeoning Offshore RMB Market CNH Market--A Burgeoning Offshore RMB Market Liu Chenggang from Bank of China September, 2011 Contents I. Evolution of CNH Market II. Introduction ti of CNH Market III. Future Development of CNH Market

More information

Important Facts Statement

Important Facts Statement Bank of China (Hong Kong) Limited Important Facts Statement Currency Linked Deposits - Premium Deposits Currency Linked Deposits 13 April 2015 This is a structured investment product which is NOT protected

More information

Min. Investment Class A Units Initial: USD 1,000 Additional: USD 250

Min. Investment Class A Units Initial: USD 1,000 Additional: USD 250 Issuer: PineBridge Investments Ireland Limited Product Key Facts PineBridge Global Funds PineBridge Global Emerging Markets Bond Fund 22 February 2013 This statement provides you with key information about

More information

Introductory Guide to RMB Currency Futures

Introductory Guide to RMB Currency Futures Introductory Guide to RMB Currency Futures RMB Internationalisation The opening up of Mainland China now is creating more and more business opportunities. China is the second largest economy and a major

More information

Important Notice of Trading Shanghai A Shares and A Shares Margin Trading via Shanghai-Hong Kong Stock Connect

Important Notice of Trading Shanghai A Shares and A Shares Margin Trading via Shanghai-Hong Kong Stock Connect Important Notice of Trading Shanghai A Shares and A Shares Margin Trading via Shanghai-Hong Kong Stock Connect Please be informed that the followings are applicable to any transactions in relation to trading

More information

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. IF IN DOUBT, PLEASE SEEK PROFESSIONAL ADVICE.

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. IF IN DOUBT, PLEASE SEEK PROFESSIONAL ADVICE. Fidelity Funds Société d Investissement à Capital Variable 2a, Rue Albert Borschette B.P. 2174 L-1021 Luxembourg R.C.S. B34036 Tél: +352 250 404 (1) Fax: +352 26 38 39 38 THIS DOCUMENT IS IMPORTANT AND

More information

ANZ ETFS PHYSICAL RENMINBI ETF. (ASX Code: ZCNH)

ANZ ETFS PHYSICAL RENMINBI ETF. (ASX Code: ZCNH) ANZ ETFS PHYSICAL RENMINBI ETF (ASX Code: ZCNH) INVESTMENT BUILDING BLOCKS FOR A CHANGING WORLD Introducing a suite of innovative exchange traded funds (ETFs) designed for Australian investors by ANZ

More information

Frequent Asked Questions

Frequent Asked Questions Frequent Asked Questions 1. What are RMB currency futures? What will be the underlying currency pair? RMB currency futures are futures contracts based on the exchange rates between RMB and other currencies.

More information

in Hong Kong's Offshore RMB Market

in Hong Kong's Offshore RMB Market lakyara Development of Dim Sum Bonds in Hong Kong's Offshore RMB Market Jenny Yee Wong 12. November. 2012 Executive Summary Supported by the Chinese government, Hong Kong has been developing an offshore

More information

PRODUCT KEY FACTS STATEMENT

PRODUCT KEY FACTS STATEMENT Issuer: Hang Seng Investment Management Limited This is an exchange traded fund. PRODUCT KEY FACTS STATEMENT Hang Seng Index ETF 30 December 2016 This statement provides you with key information about

More information

INDUSTRIAL AND COMMERCIAL BANK OF CHINA ICBC: Your Global Portal to RMB Market. July 2012

INDUSTRIAL AND COMMERCIAL BANK OF CHINA ICBC: Your Global Portal to RMB Market. July 2012 ICBC: Your Global Portal to RMB Market July 2012 Content General Introduction Investment in RMB Services Solution 1 General Introduction to Renminbi (RMB) RMB Renminbi (commonly abbreviated as RMB) is

More information

Key investor information document Glossary

Key investor information document Glossary Key investor information document Glossary TERMS DEFINITION Absolute Return The appreciation or depreciation (expressed as a percentage of the Net Asset Value) that a Sub-Fund achieves over a given period

More information

The FTSE China Onshore Bond Index Series

The FTSE China Onshore Bond Index Series Research The FTSE China Onshore Bond Index Series ftserussell.com May 2015 China is now the world s largest economy (when measured by purchasing power parity (PPP) 1 ) and the largest trading nation 2.

More information

Product Key Facts CSOP China 5-Year Treasury Bond ETF

Product Key Facts CSOP China 5-Year Treasury Bond ETF Product Key Facts CSOP China 5-Year Treasury Bond ETF CSOP Asset Management Limited 1 February 2016 This is an exchange traded fund. This statement provides you with key information about this product.

More information

Gateway to China: How using the renminbi could transform your China business

Gateway to China: How using the renminbi could transform your China business Gateway to China: How using the renminbi could transform your China business The rise of renminbi Over the past three decades, China s GDP has grown at an average rate of 10% a year moving the country

More information

UOB launches yuan products for investors to participate in China s growth

UOB launches yuan products for investors to participate in China s growth UOB launches yuan products for investors to participate in China s growth New Renminbi deposit and fund products benefit from an appreciating Renminbi and its increasing internationalisation SINGAPORE,

More information

COMMUNITY FOUNDATION OF GREATER MEMPHIS, INC. INVESTMENT GUIDELINES FOR MONEY MARKET POOL

COMMUNITY FOUNDATION OF GREATER MEMPHIS, INC. INVESTMENT GUIDELINES FOR MONEY MARKET POOL INVESTMENT GUIDELINES FOR MONEY MARKET POOL discretionary Money Market Pool is expected to pursue their stated investment strategy and follow the investment guidelines and objectives set forth herein.

More information

Legg Mason Western Asset Asian Opportunities Fund

Legg Mason Western Asset Asian Opportunities Fund PRODUCT KEY FACTS Legg Mason Global Funds Plc Legg Mason Western Asset Asian Opportunities Fund Issuer: Legg Mason Asset Management Hong Kong Limited January 2015 This statement provides you with key information

More information

Derivatives Market Trading Division July 2012. Understanding RMB Currency Futures Contract (USD/CNH)

Derivatives Market Trading Division July 2012. Understanding RMB Currency Futures Contract (USD/CNH) Derivatives Market Trading Division July 2012 Understanding RMB Currency Futures Contract (USD/CNH) Part A Trading Arrangements Table of Contents 1 Key Milestones of Development of Offshore RMB market

More information

JULIUS BAER MULTIBOND Société d'investissement à capital variable 25, Grand-Rue, L 1661 Luxembourg R.C.S. Luxembourg B-32.

JULIUS BAER MULTIBOND Société d'investissement à capital variable 25, Grand-Rue, L 1661 Luxembourg R.C.S. Luxembourg B-32. JULIUS BAER MULTIBOND Société d'investissement à capital variable 25, Grand-Rue, L 1661 Luxembourg R.C.S. Luxembourg B-32.187 (the Company ) Notice to the shareholders of the Subfunds ABS FUND, ABSOLUTE

More information

Jupiter Merlin International Equities Portfolio

Jupiter Merlin International Equities Portfolio Jupiter Merlin Funds Jupiter Merlin International Equities Portfolio Jupiter Asset Management Limited Product Key Facts April 2016 Product Key Facts This statement provides you with key information about

More information

ECONOMIC REVIEW(A Monthly Issue) March, April, 2015 2014

ECONOMIC REVIEW(A Monthly Issue) March, April, 2015 2014 ECONOMIC REVIEW(A Monthly Issue) March, April, 2015 2014 Economics & Strategic Planning Department http://www.bochk.com Effects The of Reasons CNH Exchange Why the Rate Singapore on Offshore Economy RMB

More information

Investing in Asia s Debt Markets

Investing in Asia s Debt Markets Investing in Asia s Debt Markets Alexandre Bouchardy, CFA Head of Fixed Income Asia April 2013 Content How to Capture the Asian Growth Story Hard or Local Currency Bonds? Risk and Return Opportunities

More information

ADVISORSHARES GARTMAN GOLD/YEN ETF (NYSE Arca Ticker: GYEN) SUMMARY PROSPECTUS November 1, 2015

ADVISORSHARES GARTMAN GOLD/YEN ETF (NYSE Arca Ticker: GYEN) SUMMARY PROSPECTUS November 1, 2015 ADVISORSHARES GARTMAN GOLD/YEN ETF (NYSE Arca Ticker: GYEN) SUMMARY PROSPECTUS November 1, 2015 Before you invest in the AdvisorShares Fund, you may want to review the Fund s prospectus and statement of

More information

ADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015

ADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015 ADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015 Before you invest in the AdvisorShares Fund, you may want to review the Fund s prospectus and statement of additional

More information

Understanding mutual fund share classes, fees and certain risk considerations

Understanding mutual fund share classes, fees and certain risk considerations Disclosure Understanding mutual fund share classes, fees and certain risk considerations Highlights Mutual funds may offer different share classes most commonly in retail brokerage accounts, Class A, B

More information

Traditionally pension schemes invested in four main asset classes: Shares (Equities or Stocks), Bonds, Property and Cash.

Traditionally pension schemes invested in four main asset classes: Shares (Equities or Stocks), Bonds, Property and Cash. Asset Classes Traditionally pension schemes invested in four main asset classes: Shares (Equities or Stocks), Bonds, Property and Cash. Shares (also called Equities or Stocks) are shares bought in quoted

More information

PARVEST. An open-ended investment company Incorporated under Luxembourg Law. Prospectus

PARVEST. An open-ended investment company Incorporated under Luxembourg Law. Prospectus PARVEST An open-ended investment company Incorporated under Luxembourg Law Prospectus MAY 2014 PARVEST SICAV under Luxembourg law UCITS class Registered Office: 33, rue de Gasperich, L-5826 Hesperange

More information

PRODUCT HIGHLIGHTS SHEET

PRODUCT HIGHLIGHTS SHEET Prepared on 18 January 2016 This Product Highlights Sheet is an important document. It highlights the key terms and risks of this investment product and complements the Singapore Prospectus 1 ( Prospectus

More information

New Issuer: China Merchants Land Limited

New Issuer: China Merchants Land Limited New Issuer: China Merchants Land Limited China Merchants Land has picked Bank of American Merrill Lynch, DBS, Industrial and Commercial Bank of China as joint global co-ordinators, joint lead managers

More information

The Global Development of RMB Forex Futures, and TAIFEX s RMB Forex Futures Products

The Global Development of RMB Forex Futures, and TAIFEX s RMB Forex Futures Products The Global Development of RMB Forex Futures, and TAIFEX s RMB Forex Futures Products (Updated October 1, 2015) Global products utilize a variety of underlyings, including individual stocks, stock indexes,

More information

China Universal Asset Management (Hong Kong) Company Limited 匯 添 富 資 產 管 理 ( 香 港 ) 有 限 公 司

China Universal Asset Management (Hong Kong) Company Limited 匯 添 富 資 產 管 理 ( 香 港 ) 有 限 公 司 PRODUCT KEY FACTS C-Shares CSI 300 Index ETF a sub-fund of the China Universal International ETF Series China Universal Asset Management (Hong Kong) Company Limited 匯 添 富 資 產 管 理 ( 香 港 ) 有 限 公 司 29 April

More information

HSBC Global Investment Funds. Global Fund Solutions

HSBC Global Investment Funds. Global Fund Solutions HSBC Global Investment Funds Global Fund Solutions Introduction At HSBC Global Asset Management, we bring you the best of what our multi-specialist investment teams have to offer. HSBC Global Investment

More information

OAKTREE HIGH YIELD BOND FUND

OAKTREE HIGH YIELD BOND FUND OAKTREE HIGH YIELD BOND FUND Institutional Class OHYIX Advisor Class OHYDX Before you invest, you may want to review the Fund s prospectus, which contains more information about the Fund and its risks.

More information

PRODUCT KEY FACTS Haitong CSI300 Index ETF a sub-fund of the Haitong ETF Series

PRODUCT KEY FACTS Haitong CSI300 Index ETF a sub-fund of the Haitong ETF Series PRODUCT KEY FACTS Hai Tong Asset Management (HK) Limited December 2015 This is an exchange traded fund. This statement provides you with key information about this product. This statement is a part of

More information

Federated Quality Bond Fund II

Federated Quality Bond Fund II Summary Prospectus April 30, 2015 Share Class Primary Federated Quality Bond Fund II A Portfolio of Federated Insurance Series Before you invest, you may want to review the Fund s Prospectus, which contains

More information

Guide to Chinese Share Classes v1.1

Guide to Chinese Share Classes v1.1 Guide to Chinese Share Classes v1.1 ftserussell.com October 2015 Guide to Chinese Share Classes China incorporated companies listed in the People s Republic of China (PRC) can issue different classes of

More information

V. The offers are not applicable to commercial customers.

V. The offers are not applicable to commercial customers. Investors should note that all investments involve risks. Prices of investment products may go up as well as down and may even become valueless. Investors should not only base on this marketing material

More information

RENMINBI - A NEW SETTLEMENT CURRENCY WAS BORN

RENMINBI - A NEW SETTLEMENT CURRENCY WAS BORN BUDAPEST RENMINBI INTITIATIVE PAPERS No1 RENMINBI - A NEW SETTLEMENT CURRENCY WAS BORN Author: Szilárd Erhart, Head of th MNB s Renminbi Project, Central Bank of Hungary While China s weight in international

More information

Important Facts. Currency Linked Deposit Mar 2015

Important Facts. Currency Linked Deposit Mar 2015 Important Facts Currency Linked Deposit Mar 2015 Important tice: This is a structured product involving derivatives. The investment decision is yours but you should not invest in currency linked deposit

More information

ADVISORSHARES TRUST. AdvisorShares Pacific Asset Enhanced Floating Rate ETF NYSE Arca Ticker: FLRT

ADVISORSHARES TRUST. AdvisorShares Pacific Asset Enhanced Floating Rate ETF NYSE Arca Ticker: FLRT ADVISORSHARES TRUST AdvisorShares Pacific Asset Enhanced Floating Rate ETF NYSE Arca Ticker: FLRT Supplement dated February 26, 2016 to the Summary Prospectus, Prospectus, and Statement of Additional Information

More information

HERMES GLOBAL HIGH YIELD BOND FUND. (a sub-fund of Hermes Investment Funds public limited company) SUPPLEMENT

HERMES GLOBAL HIGH YIELD BOND FUND. (a sub-fund of Hermes Investment Funds public limited company) SUPPLEMENT If you are in any doubt about the contents of this Supplement, you should consult your stockbroker, bank manager, solicitor, accountant or other independent financial adviser. The Directors of the Company,

More information

Foreign Exchange Investments Discover the World of Currencies. Private Banking USA

Foreign Exchange Investments Discover the World of Currencies. Private Banking USA Foreign Exchange Investments Discover the World of Currencies Credit Suisse Securities (USA) llc Private Banking USA 2 Foreign exchange: There s no ignoring the largest market in the world. Introduction

More information

Value Partners Launches First RQFII Fund Value Partners China A-Share Select Fund

Value Partners Launches First RQFII Fund Value Partners China A-Share Select Fund Value Partners Limited 9 th Floor, Nexxus Building 41 Connaught Road Central, Hong Kong Tel: (852) 2880 9263 Fax: (852) 2564 8487 Email: vpl@vp.com.hk Value Partners China A-Share Select Fund (the fund

More information

China s Unwinding Stock Market Bubble

China s Unwinding Stock Market Bubble China s Unwinding Stock Market Bubble The Chinese equity market is experiencing significant volatility, exhibiting the classic signs of a bubble fueled by changing government regulation. Chinese authorities

More information

Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges

Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges Zhang Ying, Senior Economist In recent years, as the internationalization of the RMB has been steadily carrying out,

More information

Invesco Funds Series 1-5 Consolidated Prospectus

Invesco Funds Series 1-5 Consolidated Prospectus Invesco Funds Series 1-5 Consolidated Prospectus 26 November 2010 Invesco Funds Series 1 Invesco Funds Series 2 Invesco Funds Series 3 Invesco Funds Series 4 Invesco Funds Series 5 Each an open-ended umbrella

More information

The RMB market in France Becoming a global currency

The RMB market in France Becoming a global currency The RMB market in France Becoming a global currency 元 (Renminbi): BECOMING A GLOBAL CURRENCY Over the last few years, the Renminbi (RMB) internationalization has been growing steadily. Measures have been

More information

King & Wood Mallesons /

King & Wood Mallesons / KWM Connect QFII and RQFII a practical insight to recent developments by Richard Mazzochi, Minny Siu and Hayden Flinn King & Wood Mallesons / KWM Connect 1 In the opening session of the Asia Financial

More information

American Funds Insurance Series Portfolio Series. Prospectus May 1, 2015. American Funds Managed Risk Global Allocation Portfolio

American Funds Insurance Series Portfolio Series. Prospectus May 1, 2015. American Funds Managed Risk Global Allocation Portfolio American Funds Insurance Series Portfolio Series Prospectus May 1, 2015 Class 4 shares American Funds Global Growth Portfolio American Funds Growth and Income Portfolio Class P2 shares American Funds Managed

More information

CNH: Creating Choice for Offshore Investment into China

CNH: Creating Choice for Offshore Investment into China CNH: Creating Choice for Offshore Investment into China Changes in regulations by the Chinese authorities have led to the development of a deliverable offshore renminbi currency market, commonly referred

More information

BLACKROCK GLOBAL FUNDS Product Highlights Sheets

BLACKROCK GLOBAL FUNDS Product Highlights Sheets BLACKROCK GLOBAL FUNDS Product Highlights Sheets July 2016 Contents Pages ASEAN Leaders Fund 3 Asia Pacific Equity Income Fund 7 Asian Dragon Fund 11 Asian Growth Leaders Fund 15 Asian Local Bond Fund

More information

PowerShares Smart Beta Income Portfolio 2016-1 PowerShares Smart Beta Growth & Income Portfolio 2016-1 PowerShares Smart Beta Growth Portfolio 2016-1

PowerShares Smart Beta Income Portfolio 2016-1 PowerShares Smart Beta Growth & Income Portfolio 2016-1 PowerShares Smart Beta Growth Portfolio 2016-1 PowerShares Smart Beta Income Portfolio 2016-1 PowerShares Smart Beta Growth & Income Portfolio 2016-1 PowerShares Smart Beta Growth Portfolio 2016-1 The unit investment trusts named above (the Portfolios

More information

The Pinnacle Funds. Simplified Prospectus. December 11, 2009 Class A and Class F units and Class I units where noted. Money Market Fund.

The Pinnacle Funds. Simplified Prospectus. December 11, 2009 Class A and Class F units and Class I units where noted. Money Market Fund. The Pinnacle Funds Simplified Prospectus December 11, 2009 Class A and Class F units and Class I units where noted Money Market Fund Pinnacle Short Term Income Fund Bond Funds Pinnacle Income Fund Pinnacle

More information

CSOP WTI Oil Annual Roll December Futures ER ETF. www.csopasset.com^

CSOP WTI Oil Annual Roll December Futures ER ETF. www.csopasset.com^ IMPORTANT: Investments involve risks. Investment value may rise or fall. Past performance information presented is not indicative of future performance. Investors should refer to the Prospectus and the

More information

ALLOCATION STRATEGIES A, C, & I SHARES PROSPECTUS August 1, 2015

ALLOCATION STRATEGIES A, C, & I SHARES PROSPECTUS August 1, 2015 ALLOCATION STRATEGIES A, C, & I SHARES PROSPECTUS August 1, 2015 Investment Adviser: RidgeWorth Investments A Shares C Shares I Shares Aggressive Growth Allocation Strategy SLAAX CLVLX CVMGX Conservative

More information

The Offshore Renminbi Market and Australia

The Offshore Renminbi Market and Australia The Offshore Renminbi Market and Australia Eden Hatzvi, William Nixon and Michelle Wright* The Chinese authorities have continued to make progress in internationalising China s currency, the renminbi (RMB).

More information

Chinese Yuan Non-Deliverable Forward Transactions

Chinese Yuan Non-Deliverable Forward Transactions Chinese Yuan Non-Deliverable Forward Transactions By entering into Chinese Yuan Non-Deliverable Forward Transactions ( NDF ) with Bank of China (Hong Kong) Limited (the Bank ), you can buy or sell Chinese

More information

PRODUCT KEY FACTS STATEMENT

PRODUCT KEY FACTS STATEMENT PRODUCT KEY FACTS STATEMENT Hang Seng China A Industry Top Index ETF 30 December 2016 Issuer: Hang Seng Investment Management Limited This is an exchange traded fund (an ETF ). This statement provides

More information

Mutual Fund Investing Exam Study Guide

Mutual Fund Investing Exam Study Guide Mutual Fund Investing Exam Study Guide This document contains the questions that will be included in the final exam, in the order that they will be asked. When you have studied the course materials, reviewed

More information

Nuveen Intelligent Risk Conservative Allocation Fund will be liquidated after the close of business on June 24, 2016.

Nuveen Intelligent Risk Conservative Allocation Fund will be liquidated after the close of business on June 24, 2016. NUVEEN INTELLIGENT RISK CONSERVATIVE ALLOCATION FUND SUPPLEMENT DATED APRIL 18, 2016 TO THE SUMMARY PROSPECTUS DATED DECEMBER 31, 2015 Nuveen Intelligent Risk Conservative Allocation Fund will be liquidated

More information

HSBC Asian High Yield Bond Fund

HSBC Asian High Yield Bond Fund Important information: HSBC Asian High Yield Bond Fund (the Fund ) invests primarily in a broad range of higher yielding Asian fixed income securities and instruments. Investments of the Fund may include

More information

Connecting you to opportunities around the world. HSBC Foreign Exchange Solutions

Connecting you to opportunities around the world. HSBC Foreign Exchange Solutions Connecting you to opportunities around the world HSBC Foreign Exchange Solutions REACH OUT TO THE WORLD The world is getting smaller every day. Opportunities await us everywhere. Be it investing globally,

More information

Corporate and Investment Banking. Trading in Chinese Renminbi

Corporate and Investment Banking. Trading in Chinese Renminbi Corporate and Investment Banking Trading in Chinese Renminbi Trading in Chinese Renminbi Standard Bank your trade partner in, for and across Africa Trade and payment solutions using renminbi As China-Africa

More information

Financial Risk Management

Financial Risk Management 176 Financial Risk Management For the year ended 31 December 2014 1. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES s major financial instruments include cash and bank balances, time deposits, principal-protected

More information

Daily Income Fund Retail Class Shares ( Retail Shares )

Daily Income Fund Retail Class Shares ( Retail Shares ) Daily Income Fund Retail Class Shares ( Retail Shares ) Money Market Portfolio Ticker Symbol: DRTXX U.S. Treasury Portfolio No Ticker Symbol U.S. Government Portfolio Ticker Symbol: DREXX Municipal Portfolio

More information

Legislative Council Panel on Financial Affairs. Proposal to Attract Enterprises to Establish Corporate Treasury Centres in Hong Kong

Legislative Council Panel on Financial Affairs. Proposal to Attract Enterprises to Establish Corporate Treasury Centres in Hong Kong CB(1)870/14-15(04) For discussion on 1 June 2015 Legislative Council Panel on Financial Affairs Proposal to Attract Enterprises to Establish Corporate Treasury Centres in Hong Kong PURPOSE In his 2015-16

More information

Seix Total Return Bond Fund

Seix Total Return Bond Fund Summary Prospectus Seix Total Return Bond Fund AUGUST 1, 2015 (AS REVISED FEBRUARY 1, 2016) Class / Ticker Symbol A / CBPSX R / SCBLX I / SAMFX IS / SAMZX Before you invest, you may want to review the

More information

Robeco High Yield Bonds

Robeco High Yield Bonds Important Information 1. Robeco High Yield Bonds (the Fund aims to provide long term capital growth. The Fund invests at least two thirds of its total assets in bonds, asset backed securities and similar

More information

HSBC Collective Investment Trust HSBC China Multi-Asset Income Fund

HSBC Collective Investment Trust HSBC China Multi-Asset Income Fund HSBC Collective Investment Trust HSBC China Multi-Asset Income Fund Explanatory Memorandum December 2014 This Summary has been written and authorised for distribution in the Hong Kong Special Administrative

More information

Nuveen Tactical Market Opportunities Fund

Nuveen Tactical Market Opportunities Fund Nuveen Tactical Market Opportunities Fund Summary Prospectus January 29, 2016 Ticker: Class A NTMAX, Class C NTMCX, Class I FGTYX This summary prospectus is designed to provide investors with key Fund

More information

Risk Warning Notice. Introduction

Risk Warning Notice. Introduction First Equity Limited Salisbury House London Wall London EC2M 5QQ Tel 020 7374 2212 Fax 020 7374 2336 www.firstequity.ltd.uk Risk Warning Notice Introduction You should not invest in any investment product

More information

Understanding Fixed Income

Understanding Fixed Income Understanding Fixed Income 2014 AMP Capital Investors Limited ABN 59 001 777 591 AFSL 232497 Understanding Fixed Income About fixed income at AMP Capital Our global presence helps us deliver outstanding

More information

PRODUCT KEY FACTS Samsung TOPIX Daily (2x) Leveraged Product

PRODUCT KEY FACTS Samsung TOPIX Daily (2x) Leveraged Product Issuer: Samsung Asset Management (Hong Kong) Limited 三 星 資 產 運 用 ( 香 港 ) 有 限 公 司 PRODUCT KEY FACTS Samsung TOPIX Daily (2x) Leveraged Product 24 June 2016 This is a leveraged product. It is different from

More information

PIMCO Foreign Bond Fund (U.S. Dollar- Hedged)

PIMCO Foreign Bond Fund (U.S. Dollar- Hedged) Your Global Investment Authority PIMCO Foreign Bond Fund (U.S. Dollar- Hedged) SUMMARY PROSPECTUS July 31, 2015 (as supplemented December 1, 2015) Share Class: Inst P Admin D A C R Ticker: PFORX PFBPX

More information

+626.1% NAVs & codes +265.6%

+626.1% NAVs & codes +265.6% HHHHH Morningstar Rating TM1 As at 31-12-2015 Value Partners High-Dividend Stocks Fund 31 December 2015 2 Pages NAV per unit: Class A1 USD - USD71.86 Class A2 MDis USD - USD10.56 Fund size: USD3,904.4

More information

Guotai Junan Assets (Asia) Limited (the Manager ) HSBC Trustee (Cayman) Limited

Guotai Junan Assets (Asia) Limited (the Manager ) HSBC Trustee (Cayman) Limited PRODUCT KEY FACTS ASSET MANAGEMENT Guotai Junan Investment Funds Guotai Junan Equity Income Fund (the Sub-Fund ) January 2015 This statement provides you with key information about this product. This statement

More information

Aston Hill Mutual Funds

Aston Hill Mutual Funds No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. Aston Hill Mutual Funds AMENDMENT NO. 1 DATED OCTOBER 9, 2015 TO THE SIMPLIFIED

More information

Vanguard Emerging Markets Stock Index Fund

Vanguard Emerging Markets Stock Index Fund Vanguard Emerging Markets Stock Index Fund Supplement to the Prospectus and Summary Prospectus Dated February 26, 2015 New Target Index Effective as of the start of business on November 2, 2015, Vanguard

More information

Investing in Bonds Page 1 INVESTING IN BONDS

Investing in Bonds Page 1 INVESTING IN BONDS Investing in Bonds Page 1 INVESTING IN BONDS WHEN BUYING A BOND, YOU ARE LOANING MONEY TO A BOND ISSUER IN NEED OF CASH TO FINANCE A VENTURE OR FUND A PROGRAM, SUCH AS A CORPORATION OR GOVERNMENT AGENCY.

More information

Schroder International Opportunities Portfolio - Schroder Asian Income (the Fund )

Schroder International Opportunities Portfolio - Schroder Asian Income (the Fund ) This Product Highlights Sheet is an important document. It highlights the key terms and risks of this investment product and complements the Prospectus¹. It is important to read the Prospectus before deciding

More information

Managing Risk/Reward in Fixed Income

Managing Risk/Reward in Fixed Income INSIGHTS Managing Risk/Reward in Fixed Income Using Global Currency-Hedged Indices as Benchmarks In the pursuit of alpha, is it better to use a global hedged or unhedged index as a benchmark for measuring

More information

A REGIONAL GATEWAY FOR RMB. Singapore

A REGIONAL GATEWAY FOR RMB. Singapore A REGIONAL GATEWAY FOR RMB Singapore GROWING INTERNATIONAL AND REGIONAL ROLE OF THE RMB Rising Potential for International use of RMB China accounts for more than 10% of global trade and investment flows

More information

DSL Investment-Linked Plan Series Principal Brochure Investment Choice Brochure June 2011

DSL Investment-Linked Plan Series Principal Brochure Investment Choice Brochure June 2011 June 2011 SFC authorization is not a recommendation or endorsement of DSL InvestSmart Plus Investment-Linked Plan / DSL InvestSmart Investment-Linked Plan (collectively known as DSL Investment-Linked Plan

More information

HSBC Funds Prospectus February 27, 2015

HSBC Funds Prospectus February 27, 2015 HSBC Global Asset Management (USA) Inc. HSBC Funds Prospectus February 27, 2015 EMERGING MARKETS FUNDS Class A Class I Class S HSBC Emerging Markets Debt Fund HCGAX HCGIX HBESX HSBC Emerging Markets Local

More information

Latest developments in the international RMB market

Latest developments in the international RMB market Fourth Meeting of London Hong Kong RMB Forum 12 November 2014 The private-sector led London Hong Kong Forum to promote cooperation on the development of international renminbi (RMB) business (the Forum

More information