Product Information
Important Notes
- • Capitalized terms not otherwise defined herein shall have the same meanings as set forth in the applicable Prospectus, Hong Kong Supplement and Key Facts Statement.
- • China Universal Selective Mixed Securities Investment Fund (the “Fund”) has been authorized by the Securities and Futures Commission of Hong Kong (“SFC”) under section 104 of the Securities and Futures Ordinance (“SFO”), Chapter 571, Laws of Hong Kong. Such authorization, however, does not imply any official recommendation.
- • The Fund has been registered with and is subject to the on-going supervision of the China Securities Regulatory Commission (“CSRC”) and authorized by the SFC under the SFO pursuant to the Mainland-Hong Kong Mutual Recognition of Funds arrangements.
- • China Universal Asset Management Company Limited (the “Manager”) is registered and operates in Mainland China in accordance with Mainland China laws and regulations and is licensed by the CSRC to manage publicly offered securities investment funds. The Manager, having made all reasonable enquiries, confirm that to the best of its knowledge and belief the information contained in the Prospectus, Hong Kong Supplement and Key Facts Statement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement in the Prospectus, Hong Kong Supplement and Key Facts Statement misleading.
- • The Hong Kong Representative, China Universal Asset Management (Hong Kong) Company Limited, has been appointed by the Manager in accordance with the Code on Unit Trusts and Mutual Funds.
- • Only Class O Units are available to Hong Kong investors. Hong Kong investors should pay attention to the details and specific features of such Class O Units. If there are inconsistencies between the information set out in the Hong Kong Supplement and the information in the Prospectus, the information disclosed in the Hong Kong Supplement relating to Class O Units offered to Hong Kong investors shall prevail.
- • Investment involves risks. Before making any investment decisions, prospective investors are reminded to read carefully the applicable Prospectus, Hong Kong Supplement, Key Facts Statement, and latest annual report and if published thereafter, the latest semi-annual and quarterly report of the Fund. The Fund may not be suitable for all investors.
- • All information and materials contained in this website are prepared for general information purposes only, and shall not, in whole or in part, be regarded as an offer to sell, to subscribe, or provide any recommendation to sell investments.
Fund Overview
| Fund Name | China Universal Health Care Mixed Securities Investment Fund |
| Fund Class | Class O |
| Fund Manager | China Universal Asset Management Company Limited |
| Fund Custodian | Industrial and Commercial Bank of China Limited |
| Hong Kong Representative | China Universal Asset Management (Hong Kong) Company Limited |
| Dealing Frequency | Daily (each day being business day in both Hong Kong and Mainland) |
| Base Currency | RMB |
| Dividend Distribution Policy | Class O: Dividends (if any) will be declared and paid at such time at the discretion of the Manager for no more than 12 times in each financial year. Distributions may be paid out of capital or effectively out of capital. |
| Subscription Fee | Up to 5% of the subscription amount |
| Redemption Fee | 0.125% of redemption amount |
| Switching Fee | Not applicable |
| Management Fee | 1.5% p.a. |
| Custodian Fee | 0.25% p.a |
| Performance Fee | Nil |
| Administrative Fee | Nil |
| Minimum Subscription | RMB 1,000 |
| Minimum Redemption | Nil |
| Minimum Holding | Nil |
| Class O Inception Date | ? ? 2016 |
| Launch Price | RMB? |
| ISIN Code | CNE1000024D4 |
| Bloomberg Code | CHUHCEF CH |
Please refer to the Fund’s Prospectus, Hong Kong Supplement and Product Key Fact (including the full text of the risk factors stated therein and fees) for further information.
NAV per Unit
| Fund Name | Date | NAV per Unit |
| China Universal Health Care Mixed Securities Investment Fund (Class O) | 【Database Link】 | 【Database Link】 |
Key Risks
Investment involves risks and there is no guarantee of the repayment of principal. Please refer to the offering document of the Fund for details including the risk factors.
1. Investment Risk
- The Fund is an investment fund. The Fund may lose value and there is no guarantee of the repayment of principal. There is also no guarantee of dividend payments during the period investors hold the Units of the Fund. Further, there is no guarantee that the Fund will be able to achieve its investment objectives and there can be no assurance that the stated strategies can be successfully implemented. Therefore an investment in the Fund may suffer losses. Under extreme circumstances, investors may lose entire amount originally invested.
2. Risks associated with the MRF arrangement
- Quota restrictions: The Mainland-Hong Kong Mutual Recognition of Funds (MRF) arrangement is subject to an overall quota restriction. Subscription of units in the Fund may be suspended at any time if such quota is used up.
- Failure to meet eligibility requirements: If the Fund ceases to meet any of the eligibility requirements under the MRF, it may not be allowed to accept new subscriptions. In the worst scenario, the SFC may even withdraw its authorization for the Fund to be publicly offered in Hong Kong for breach of eligibility requirements. There is no assurance that the Fund can satisfy these requirements on a continuous basis.
- Mainland China tax risk: Currently, certain tax concessions and exemptions are available to the Fund and/or its investors under the MRF regime. There is no assurance that such concessions and exemptions or Mainland tax laws and regulations will not change. Any change to the existing concessions and exemptions as well as the relevant laws and regulations may adversely affect the Fund and/or its investors and they may suffer substantial losses as a result.
- Different market practices: Market practices in the Mainland and Hong Kong may be different. In addition, operational arrangements of the Fund and other public funds offered in Hong Kong may be different in certain ways. For example, subscriptions or redemptions of Class O units offered in Hong Kong may only be processed on a day when both Mainland and Hong Kong markets are open. Further, the Fund may have different cut-off times or dealing day arrangements versus other SFC-authorized funds. Investors should ensure that they understand these differences and their implications.
3. Concentration risk / Mainland market risk
- The Fund invests primarily in securities related to the Mainland market and may be subject to additional concentration risk. Investing in the Mainland market may give rise to different risks including political, policy, tax, economic, foreign exchange, legal, regulatory and liquidity risks.
4. RMB currency and conversion risks
- MB 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 HKD) will not depreciate. Any depreciation of RMB could adversely affect the value of investor’s investment in the Fund.
- Investors may not receive RMB upon redemption of investments and/or dividend payment or such payment may be delayed due to the exchange controls and restrictions applicable to RMB.
5. Mainland equity risks
- Market risk: The Fund’s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.
- Volatility risk: High market volatility and potential settlement difficulties in the Mainland equity markets may also result in significant fluctuations in the prices of the securities traded on such markets and thereby may adversely affect the value of the Fund.
- Liquidity risk: Securities markets in Mainland China may be less liquid than other developed markets. The Fund may suffer substantial losses if it is not able to dispose of investments at a time it desires.
- High valuation risk: Stocks listed on the Mainland stock exchanges may have a higher price-earning ratio. Such high valuation may not be sustainable.
- Risk associated with small-capitalisation / mid-capitalisation companies: The stocks of small-capitalisation/ mid-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general.
- Policy risk: Securities exchanges in Mainland typically have the right to suspend or limit trading in any security traded on the relevant exchange. The government or the regulators may also implement policies that may affect the financial markets. All these may have a negative impact on the Fund.
6. Mainland debt securities risk
- Volatility and liquidity risks: The Mainland debt securities markets may be subject to higher volatility and lower liquidity compared to more developed markets. The prices of securities traded in such markets may be subject to fluctuations.
- Counterparty risk: The Fund is exposed to the credit/default risk of issuers of the debt securities that the Fund may invest in.
- Interest rate risk: Investment in the Fund is subject to interest rate risk. In general, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise. The Fund is exposed to additional policy risk of potential adjustment by the government to the interbank deposit rate.
- Downgrading risk: The credit rating of a debt instrument or its issuer may be downgraded subsequent to investment by the Fund. In the event of such downgrading, the value of the Fund may be adversely affected. The Manager may or may not be able to dispose of the debt instruments that are being downgraded.
- Credit rating agency risk: The credit appraisal system in the Mainland and the rating methodologies employed in the Mainland may be different from those employed in other markets. Credit ratings given by Mainland rating agencies may therefore not be directly comparable with those given by other international rating agencies.
- Risk associated with urban investment bonds: The Fund may invest in urban investment bonds. Urban investment bonds are issued by local government financing vehicles (“LGFVs”), such bonds are typically not guaranteed by local governments or the central government of the Mainland. In the event that the LGFVs default on payment of principal or interest of the urban investment bonds, the Fund could suffer substantial loss and the net asset value of the Fund could be adversely affected.
- Risk associated with asset-backed securities: The Fund may invest in asset-backed securities (including asset-backed commercial papers). Asset-backed securities 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.
- Risk associated with debt securities which are rated BB+ or below by a Mainland credit rating agency or unrated: The Fund may invest in debt securities rated BB+ or below by a Mainland credit rating agency or unrated. Such securities are generally subject to lower liquidity, higher volatility and greater risk of loss of principal and interest than high-rated debt securities.
7. Risks associated with repurchase and reverse repurchase transactions
- The Manager may enter into repurchase and reverse repurchase transactions for the account of the Fund on the Mainland stock exchanges or in the interbank market.
- The collateral pledged under the reverse repurchase transactions in the interbank market may not be marked-to-market. In addition, the Fund may suffer substantial loss when engaging in reverse repurchase transactions as there may be delay and difficulties in recovering cash placed out or realizing the collateral, or proceeds from the sale of the collateral may be less than the cash placed with the counterparty due to inadequate valuation of the collateral and market movement upon default of the counterparty.
- For repurchase transactions, the Fund may suffer substantial loss as there may be delay and difficulties in recovering collateral pledged with the counterparty or the cash originally received may be less than the collateral pledged due to inadequate valuation of the collateral and market movement upon default of the counterparty.
8. Risks relating to payment of dividends out of capital
- Dividends paid out of capital or effectively out of capital amount to a return or withdrawal of part of a Unitholder’s original investment or from any capital gains attributable to that original investment.
- Any distribution involving payment of dividends out of or effectively out of the Fund’s capital may result in an immediate reduction of the Fund’s net asset value per unit.
9. Massive Redemption Risk
- Massive redemptions of units could require the Manager to liquidate investments of the Fund more rapidly than otherwise desirable in order to raise the necessary cash to fund the redemptions. This could adversely affect the net asset value per unit of Class O Units being redeemed and of remaining Units. In the worst case, the Fund may have to suspend or delay the redemption process.
- In situations of massive redemptions or continuing massive redemptions resulting in cash flow difficulties, redemption of units (including Units) may be suspended or deferred, or there may be delay of payment of redemption proceeds for accepted redemptions.
Disclaimer:
Investment involves risks. The unit price of the Fund may go down as well as up and the past performance of the Fund does not indicate future return.
Investors should refer to the offering documents of the Fund, including the Explanatory Memorandum / Prospectusand Product Key Facts Statement, for further details and the risk factors in particular those risks involved in investing in emerging market.
This website has been prepared by China Universal Asset Management (Hong Kong) Company Limited and has not been reviewed by the Hong Kong Securities and Futures Commission.
You must read the following Important Notes and the Disclaimer before proceeding.
DISCLAIMER
This website has been prepared by China Universal Asset Management (Hong Kong) Company Limited (“China Universal (HK)”) for information purposes only. The information contained in this website is not intended for use by persons located in or residing in jurisdiction that restrict the distribution of such information by China Universal (HK) and its parent companies, subsidiaries and/or associates (collectively the “China Universal Group”). The information contained in this website does not constitute a distribution, an offer to buy or the solicitation of any offer to buy or sell any securities in any jurisdiction where such a distribution or offer would be illegal. Person accessing this website should inform themselves and observe any relevant restrictions. Information contained in this website has not been reviewed by Securities and Futures Commission of Hong Kong (“SFC”).
None of the information contained in this website constitute an invitation or solicitation to invest in any shares or units of the Fund, nor does it constitute any investment advice or recommendation to acquire or dispose of any investment or to engage in any transactions. Before acting on any information in this website, you should consider whether any investment, security or strategy is suitable for your particular circumstance and, if necessary, seek independent professional advice.
Investment involves risks. The price of units or shares of the Fund may go up as well as down. The Manager does not guarantee that the Fund is profitable or able to achieve minimum return. Past performance of the Fund does not represent its future performance and the performance of the other funds managed by the Manager is no guarantee of the results and performance of the Fund. The value of the Fund can be extremely volatile and could go down substantially within a short period of time. It is possible that the entire value of your investment could be lost. Investors should carefully read the Fund’s Prospectus, Hong Kong Supplement and Key Facts Statement and relevant documents for details and risk factors of the Fund, particularly the risk of investment in China.
All information contained in this website is published to the best of the knowledge and belief of China Universal Group to be accurate at the time it was posted. However, no representation or warranty, expressed or implied is made by China Universal Group as to its accuracy or completeness of the information or data provided in this website. China Universal Group, its directors, officers or employees accept no liability for any errors or omissions relating to information available in this website, and will not be liable for any damages or losses arising out of or in any way connected with (i) the use of the information provided in this website and (ii) any interruption or failure in system operation, delay in data transmission, computer virus or line or system failure.
All copyright, trademarks and similar rights in this website and the information contained herein are owned by or licensed to China Universal Group. Unless prior written consent is obtained from China Universal Group, information in or any parts of this website cannot be reproduced, distributed or published by any institutions or individuals.
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