Baring Hong Kong China Fund

Transcription

1 Baring Hong Kong Fund Overall RatingMorningstar Overall 5 Morningstar Overall Rating ««As of The Fund may be subject to risks, such as investment, equities, liquidity, counterparty and currency risks. The Fund invests primarily in specific countries and may involve higher concentration risks than a more diversified portfolio. 2. The Fund may invest in emerging markets (including ) and is subject to additional risks, including liquidity risks, lower standards of corporate governance, political and higher volatility. The Fund may have indirect exposure to Chinese securities which may be subject to withholding tax on realised capital gains. With the uncertainty in the PRC tax rules and the possibility of taxes being applied retroactively, any tax provision made by the Fund or in any financial instruments may be inadequate and result in a loss to the Fund. The Fund may invest in A-Shares via the Shanghai-Hong Kong Stock Connect and investments via this system may be subject to quota limitations, suspension in trading, difficulties or delays in enforcing the right of beneficial owners. The relevant regulations are untested and may be subject to change. 3. The Fund may invest in derivatives for investment purposes or for efficient portfolio management; such investments may result in higher volatility or a significant loss in the Fund s assets within a short period of time. 4. Dividends may be paid out of capital gains at the discretion of the Manager which would effectively represent paying dividend out of capital. This amounts to a return or withdrawal of part of an investor s original investment or any capital gains attributable to that original investment. Payment of dividends may result in an immediate reduction of the net asset value of the Fund. 5. Investors may suffer substantial loss of their investments in the Fund. ObjectivesInvestment ObjectivesInvestment Objectives1 The objective of the Fund is to achieve long-term capital growth in the value of assets. The Fund will seek to achieve its investment objective by investing in equities and equity-related securities of companies incorporated in Hong Kong or, or in companies exercising the predominant part of their economic activity in Hong Kong or. The Fund may also invest in companies incorporated in Taiwan or quoted on the Taiwan stock exchange or in companies that have a significant proportion of their assets or other interests in Taiwan. PerformanceCumulative 2 Cumulative Performance % YTD 1-Yr 3-Yr 5-Yr 3-Yr p.a. 5-Yr p.a. Class C - USD Inc BenchmarkBenchmark Year PerformanceCalendar Year 2 Calendar Year Performance % Class C - USD Inc BenchmarkBenchmark DetailsFund 3 Fund Details ManagerFund Fund Manager SizeFund Fund Size Date of Primary Inception Share ClassInception Date Date of of Share Class Primary Share Class CurrencyBase Base PriceNAV NAV Price Laura Luo US$1,716.7 Million USD of InvestmentsNumber of Number of Investments 78 AvailableUnit Unit Class AvailableShare Class Share Class Available UmbrellaUmbrella US$ Income Class A Inc (USD, EUR, GBP, HKD) Class C Inc (USD, EUR) Baring International Umbrella Fund InvestmentMinimum Minimum Investment US$5000 / 3500 ChargeInitial Initial Charge 0.00% FeeManagement Fee FeeDistribution Fee DateEx. Dividend Ex. Dividend Date Paid ByDividend Paid Dividend Paid By IndexBenchmark Index 4 Performance Characteristics 1.25% p.a. 1.00% p.a. 1 May No later than 31 Jul MSCI Total, Gross Return BenchmarkBenchmark Fund 4 Standard Deviation Alpha Beta Sharpe Ratio Tracking Error (Ex Post) All fund information listed above relates to Class C - USD (Inc) PerformancePerformance 2 (Cash Value of US$1000) Baring Hong Kong Fund Class C - USD Inc IndexBenchmark 4 Index AllocationGeographical 3 Geographical Allocation (%) A Shares H Shares Red Chip Other Stocks Listed in Hong Kong Other Stocks Listed Outside Hong Kong Hong Kong Others Cash & Equivalents InvestmentsTop 3 Top Tencent Alibaba Group Mobile Bank of Ping An Insurance (Group) Construction Bank Sunny Optical Technology (Group) Resources Beer (Holdings) AAC Technologies Holdings BBMG Corp Class H AllocationSector 3 Sector Allocation (%) Information Technology Financials Consumer Discretionary Industrials Telecom Services Energy Health Care Consumer Staples Cash & Equivalents Others Sector Country Information Technology Information Technology Telecom Services Financials Financials Financials Information Technology Consumer Staples Information Technology Materials %

2 Fund Code ISIN Bloomberg Lipper Notes Class C - USD Inc IE00B2NN6340 BRGHKU3 ID A full copy of the investment objective can be obtained from the Manager. Class C - EUR Inc IE00B2PF5423 BRGHKU4 ID Performance Source Morningstar, Inc. All Rights Reserved. Data as at , USD on NAV per unit basis, with gross income reinvested. Please note that the use of a benchmark index is for comparative purposes only. The information contained herein: (i) is proprietary to Morningstar and/or its content providers; (ii) may not be copied or distributed; and (iii) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Unless otherwise stated, all fund portfolio figures within this factsheet are as at the end of the month shown at the top of front page. Performance characteristics are based on US$ returns over a 3 year period. Source: Barings / Northern Trust. The performance of the benchmark was MSCI Zhong Hua Total Return with effective from 1 September From 1 February 2008, the benchmark became MSCI Total, Gross Return Index. Morningstar overall ratings as of ( Equity Category). Important Information Investors should not only base on this material alone to make investment decisions. Investment involves risks. Please refer to the offering documents for the details of the Fund and all the risk factors. This document is issued by Baring Asset Management (Asia) Limited. This is not an offer to sell or an invitation to apply for any product or service of Baring Asset Management and is by way of information only. Before investing in any product, we recommend that recipients who are not professional investors contact their financial adviser. All relevant documents relating to the product, such as reports and accounts and offering documents (which specify the particular risks associated with the product, together with any specific restrictions applying and the basis of dealing) should be read. The information in this document does not constitute investment, tax, legal or other advice or recommendation or, an offer to sell or an invitation to apply for any product or service of Baring Asset Management. For Funds aiming to pay dividend on a regular basis, dividend amount or dividend rate is not guaranteed. This document has not been reviewed by the Securities and Futures Commission of Hong Kong. Baring Asset Management (Asia) Limited 19/F Edinburgh Tower 15 Queen's Road Central Hong Kong CONTACT US: Calls may be recorded and monitored

3 PRODUCT KEY FACTS Baring International Umbrella Fund Baring Hong Kong Fund March 2016 Baring International Fund Managers (Ireland) Limited This statement provides you with key information about Baring Hong Kong Fund (the Fund ). This statement is a part of the offering document. You should not invest in the Fund based on this statement alone. QUICK FACTS Fund Manager Investment Manager Sub-Investment Manger Depositary Ongoing charges over a year: Baring International Fund Managers (Ireland) Limited Baring Asset Management Limited (internal delegation, in the United Kingdom) Baring Asset Management (Asia) Limited (internal delegation, in Hong Kong) Northern Trust Fiduciary Services (Ireland) Limited Income Unit Classes (Inc) Accumulation Unit Classes (Acc) Class A USD Inc: 1.79% # Class A USD Acc: 1.79% # Class A EUR Inc: 1.79% # Class A EUR Acc: 1.79%^ Class A GBP Inc: 1.79% # Class I USD Acc: 1.29% Class A HKD Inc: 1.79% # Class I EUR Acc: 1.29%^ Class C USD Inc: 2.78% # Class I GBP Acc: 1.29% # Class C EUR Inc: 2.78% # # The ongoing charges figure is based on the ongoing expenses chargeable to the respective unit class for the 12-month period ended 31 October 2015 expressed as a percentage of the average net asset value of the respective unit class for the same period, and based on information in the latest interim report for the period ended 31 October This figure may vary from year to year. ^ As these classes of units have not been launched, the ongoing charges figures for such unit classes are estimated figures only and calculated based on the sum of the annual management fee rate of the respective unit class and the rate of other ongoing expenses of the Fund (i.e. the total actual expenses of the Fund (excluding management fee) over a 12-month period ended 31 October 2015 expressed as a percentage of the average net asset value of the Fund during the same period). The actual figures may be different upon actual operation of the unit classes and the figures may vary from year to year. As this class of units has recently launched, the ongoing charges figure for this unit class is an estimate figure only and calculated based on the estimated ongoing expenses chargeable to the unit class for the 12-month period ended 31 October 2015 expressed as a percentage of the estimated average net asset value of the unit class over the same period. This figure may vary from year to year. 1

4 Dealing frequency Base currency Dividend policy* Daily USD For Income Unit Classes (Inc), dividends, if declared, will be paid. For Accumulation Unit Classes (Acc), no dividend will be paid. * The Fund normally pays dividends out of surplus net income. However, the Managers may also distribute such part of any capital gains less realised and unrealised capital losses as, in their opinion, is appropriate to maintain a satisfactory level of distribution. Payment of distributions out of unrealised capital gains amount to distribution out of capital under Hong Kong regulatory disclosure requirements and payment of distributions under such circumstances may result in an immediate reduction of the Fund s net asset value per Unit. Financial year end 30 April Min. investment: Initial min. Subsequent min. investment: investment: Income Unit Classes (Inc) Class A USD Inc US$5,000 US$500 Class A EUR Inc 3, Class A GBP Inc 2, Class A HKD Inc US$5,000 US$500 (HKD equivalent of US$5,000) (HKD equivalent of US$500) Class C USD Inc US$5,000 US$500 Class C EUR Inc 3, Accumulation Unit Classes (Acc) Class A USD Acc US$5,000 US$500 Class A EUR Acc 3, Class I USD Acc US$10,000,000 US$500 Class I EUR Acc 10,000, Class I GBP Acc 10,000, WHAT IS THIS PRODUCT? Baring Hong Kong Fund is a sub-fund of Baring International Umbrella Fund, which is a unit trust domiciled in Ireland. Its home regulator is the Central Bank of Ireland. 2

5 OBJECTIVES AND INVESTMENT STRATEGY Objectives To achieve long-term capital growth in the value of assets by investing in Hong Kong, and Taiwan. Strategy The Fund will invest at least 70% of its total assets in equities and equity-related securities of companies incorporated in, or exercising the predominant part of their economic activity in Hong Kong or, or quoted or traded on the stock exchanges in those countries. Equity-related securities include participatory receipts and participatory certificates. The Fund Manager may also invest in companies incorporated in, or exercising the predominant part of the economic activity in Taiwan or quoted or traded on the Taiwan stock exchange. The portfolio will be balanced according to the Fund Manager s assessment of investment prospects but may, depending upon the underlying investment conditions, emphasise investment in companies operating in those sectors of the Hong Kong or economies that, in the Fund Manager s opinion, provide the determinants for Hong Kong s or s economic growth such as those involved in international trade, property and construction activity, engineering, electronics or the service sectors. Not more than 10% of the Fund s net asset value may at any one time be invested directly or indirectly in A Shares and B Shares. It is anticipated that this exposure will be obtained either directly through investment in A Shares listed on the Shanghai Stock Exchange via the Shanghai-Hong Kong Stock Connect scheme or indirectly through investment in other eligible collective investment schemes or participation notes. The Fund may invest in collective investment schemes (including ETFs) in accordance with the requirements of the Central Bank up to a maximum of 10% of the Fund s net asset value. The Fund may use derivatives (including warrants, exchange traded futures and options on securities, indices, currencies and interest rates, forward currency contracts (including non-deliverable forwards) and swap agreements) for efficient portfolio management (including hedging) or investment purposes. Although derivatives may be used they will not be used extensively for investment purposes. The derivative techniques may include, but are not limited to: (i) using exchange traded futures and options to take active positions, gain immediate market exposure on new subscriptions into the Fund or to hedge risk within the Fund; (ii) using swaps to hedge risk within the Fund or synthetically gain exposure to a particular security or index; and (iii) using forward currency contracts and nondeliverable forwards to hedge against currency risk arising within the Fund. WHAT ARE THE KEY RISKS? Investment involves risks. Please refer to the offering document for details including the risk factors. 1. Emerging market investment risk The Fund may invest in companies in, which is an emerging market. Investing in emerging market may involve additional risks than investing in more developed markets. These include liquidity risk (see point 5 below), the possibility of a lower standard of corporate governance (i.e. generally less government supervision and regulation on stock exchanges, brokers and listed companies in most emerging markets), increased political risk (i.e. interference in political and bureaucratic processes and high levels of state intervention in society) and the likelihood of a high degree of volatility. 2. Risk associated with investment in specific countries The Fund primarily invests in the Hong Kong and markets and therefore has a narrower focus than those funds which invest more broadly across markets. The Fund typically offers less diversification and therefore is considered to be more risky. Investment in markets is also sensitive to any major change in economic, social and political policy in the People s Republic of ( PRC ). 3

6 3. Mainland tax risk The Fund may have indirect exposure to Chinese securities. Investing in Chinese securities may be subject to withholding tax on realised capital gains. Provision for such potential withholding tax is anticipated to be made or reflected in the instruments the Fund invested in. With the uncertainty concerning the tax rules in PRC and the possibility of taxes being applied retroactively, any tax provision made by the Fund or these instruments may be inadequate and may result in a loss to the Fund. 4. Risks associated with derivatives The Fund may have exposure to derivatives for investment purposes or for efficient portfolio management. Given the leverage effect embedded in derivatives, such investments may result in higher volatility or a significant loss in the Fund s assets within a short period of time. Furthermore, there is no guarantee that the Fund s use of derivatives for hedging will be entirely effective and in adverse situations, where the use of derivatives becomes ineffective, the Fund may suffer significant loss. 5. Liquidity risk Market liquidity in the emerging markets may be lower than the more developed markets so that the purchase and sale of holding may take longer. The Fund may also encounter difficulties in disposing of securities or derivatives at their fair market price. 6. Counterparty risk Counterparty risk is the risk that an organization does not pay out on a bond or other trade or transaction when it is supposed to. If a counterparty fails to honour its obligation in a timely manner and the Fund is delayed or prevented from exercising its rights with respect to the investments in its portfolio, it may experience a decline in the value of its position, lose income and/or incur costs associated with asserting its rights. 7. Risks of investment in equities The equity markets may fluctuate significantly with prices rising or falling sharply, and this will have a direct impact on the Fund s net asset value. When the equity markets are extremely volatile the Fund s net asset value may fluctuate substantially. 8. Currency risk The Fund s assets and liabilities may be denominated in currencies different from the Base currency. The Fund may be affected favourably or unfavourably by exchange control regulations or changes in the exchange rates between the Base currency and other currencies. A Unit Class may be designated in a currency other than the Base Currency of the Fund. Changes in the exchange rate between the Base Currency and such designated currency may lead to a depreciation of the value of such Units as expressed in the designated currency. 9. Investment risk The Fund is an investment fund and is not in the nature of a bank deposit. There is no guarantee of repayment of principal. Investment in the Fund is subject to fluctuations in value and you may suffer a loss. 4

7 10. Charges deducted from Capital The Fund normally pays its management fee and other fees and expenses out of income (in accordance with Irish accounting guidelines). However, where insufficient income is available, the Managers may pay some or all of its management fee and other fees and expenses out of capital and out of both realised and unrealised capital gains less realised and unrealised capital losses. Where the management fee and other fees and expenses are deducted from capital rather than income generated, this may constrain growth and could erode capital. The Fund normally pays dividends out of surplus net income. However, the Managers may also distribute such part of any capital gains less realised and unrealised capital losses as, in their opinion, is appropriate to maintain a satisfactory level of distribution. Payment of distributions out of unrealised capital gains amount to distribution out of capital under Hong Kong regulatory disclosure requirements and that payment of distributions under such circumstances amounts to a return or withdrawal of part of an investor s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of unrealised capital gains as dividends (which means effectively paying dividend out of capital) may result in an immediate reduction of the Fund s net asset value per Unit. HOW HAS THE FUND PERFORMED? 120% 100% 80% 60% 40% 20% 0% -20% -40% -60% -80% 94.7% Baring Hong Kong Fund - Class A USD Inc 76.8% -54.2% 64.2% 2.1% -19.5% 12.3% 8.4% 5.1% -4.5% Source: Barings Past performance information is not indicative of future performance. Investors may not get back the full amount invested. The computation basis of the performance is based on the calendar year end, NAV-To-NAV, with dividend reinvested. For the avoidance of doubt, dividend reinvested has the same meaning as gross income reinvested which is used in other marketing documents outside of Hong Kong. These figures show by how much the Class A USD Inc increased or decreased in value during the calendar year being shown. Performance data has been calculated in US dollars, including ongoing charges and excluding subscription fee and redemption fee you might have to pay. Class A USD Inc is selected as representative unit class as it is the major unit class subscribed by investors in Hong Kong. Fund launch date: 03 December 1982 Class A USD Inc launch date: 03 December

8 IS THERE ANY GUARANTEE? The Fund does not have any guarantees. You may not get back the full amount of money you invest. WHAT ARE THE FEES AND CHARGES? Charges which may be payable by you You may have to pay the following fees when dealing in the units of the Fund. Fee Subscription fee (Preliminary charge) Switching fee (Conversion charge) Redemption fee (Realisation charge) What you pay Class A Units: up to 5% of the amount you subscribed* Class C and Class I Units: Nil Nil Class A and I Units: Nil** Class C Units: up to 1% of the net asset value per unit Ongoing fees payable by the Fund The following expenses will be paid out of the Fund. They affect you because they reduce the return you get on your investments. Annual rate (as a % of the Fund s net asset value ( NAV )), unless otherwise specified Management fee* Class A and Class C Units: 1.25% Class I Units: 0.75% Depositary fee Performance fee Administration fee Transaction fee The Fund pays a transaction fee to the Depositary. Distribution fee The Fund pays a distribution fee to the Distributor. Up to 0.025% per annum Not applicable 0.45%, subject to a minimum of 30,000 per annum At normal commercial rates Class A and I Units: Not applicable Class C Units: 1% * The fees and charges may be increased up to maximum level as specified in the offering document by giving at least 1 month s prior notice to investors. Please refer to the offering document for further details. ** At least 1 month s notice will be given to investors should any redemption fees be charged. Other fees You may have to pay other fees when dealing in the units of the Fund. The Fund will also bear the costs which are directly attributable to it, as set out in the offering document. 6

9 ADDITIONAL INFORMATION You generally subscribe and redeem units at the Fund s next-determined NAV per unit attributable to the relevant Unit Class after your request is received in good order by Baring Asset Management (Asia) Limited, our Hong Kong Representative, on or before 5 p.m. (Hong Kong time) or the Fund Manager on or before 12 noon Dublin time on a Dealing Day. Dealing Days are every business day on which banks in both Dublin and London are open for business (excluding Saturday or Sunday). Before placing your subscription or redemption orders, please check with your distributor for the distributor s internal dealing deadline (which may be earlier than the Fund s dealing deadline). The NAV of the Fund is calculated and the prices of unit of the relevant Unit Class are published for each Dealing Day, and are available online at 1. The composition of the dividends (i.e. the relative amounts paid out of net distributable income and capital) for the last 12 months 2 can be obtained either through the Hong Kong Representative s website at 1 or from the Hong Kong Representative on request. Investors may obtain the past performance information of other unit classes offered to Hong Kong investors from 1. IMPORTANT If you are in doubt, you should seek professional advice. The SFC takes no responsibility for the contents of this statement and makes no representation as to its accuracy or completeness. 1 This website has not been reviewed by the SFC and it may contain information on funds which are not authorised by the SFC. 2 The 12-month period is intended to be a rolling 12-month period starting from the date on which payment of dividends is being made by the Fund out of capital after 8 November