CUAM ETF Series
CUAM Solactive China & Global Semiconductor ETF
Hong Kong Authorised Fund
CUAM Stable Income Fund
CUAM USD Money Market Fund
CUAM China-Hong Kong Strategy Fund
CUAM Hong Kong Dollar Bond Fund
CUAM Select US Dollar Bond Fund
CUAM RMB Bondplus Fund
Mutual Recognition Funds
UCITS Funds
Private Funds
Investment Objective: The investment objective of the Sub-Fund is to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the Solactive ACE ETF Connect China & Global Semiconductor Top 30 Index NTR (the "Index"). There is no assurance that the Sub-Fund will achieve its investment objective.
Investment Strategy: To achieve the investment objective of the Sub-Fund, the Manager intends to use a combination of physical representative sampling strategy and synthetic representative sampling strategy.
| Fund Name | CUAM Solactive China & Global Semiconductor ETF |
| Manager | China Universal Asset Management (Hong Kong) Company Limited |
| Trustee | HSBC Institutional Trust Services (Asia) Limited |
| Custodian | The Hongkong and Shanghai Banking Corporation Limited |
| Listing Date | 2026-10-23 |
| Asset Class | Equity |
| Base Currency | HKD |
| Management Fee* | 0.99% p.a. |
| Ongoing Charges Over a Year** | 1.5% |
| Outstanding Units | 2,000,000 |
| Net Asset Value (NAV)1 | 15,837,923.58 HKD |
As of: 2026-10-27
*Includes Trustee’s, Administrator’s, Registrar’s and Custodian’s fee. Please note that such fee may be increased up to a permitted maximum rate by providing 1 week’s prior notice to unitholders. Please refer to the “FEES AND EXPENSES” section of the Prospectus for details.
**This is only an estimate because the Sub-Fund is newly established. It represents the estimated ongoing expenses chargeable to the Listed Class of Units as a percentage of the estimated average Net Asset Value of the Listed Class of Units over a 12-month period. This figure may vary from year to year. The actual figure may be different from the estimated figure. The ongoing charges figure does not include the swap fees. Please refer to “Ongoing fees payable by the Sub-Fund” in the Product Key Facts and the Prospectus for details.
| Listing Exchange | Hong Kong Stock Exchange (Main Board) |
| Stock Code | 3536.HK |
| Trading Currency | HKD |
| Board Lot Size | 100 |
| Exchange Time Zone | HKT (UTC+8) |
| Bloomberg Ticker | 3536 HK Equity |
| Wind Ticker | 3536.HK |
| ISIN | HK0001364394 |
| Index Name | Solactive ACE ETF Connect China & Global Semiconductor Top 30 Index (Net Total Return) |
| Index Provider | Solactive AG |
| Launch Date | 2026-03-25 |
| Index Currency | HKD |
| Index Type | Net Total Return |
| Bloomberg Ticker | SECCGSCN Index |
| ISIN | DE000SL0TNA7 |
| YTD | 1M | 3M | 6M | 1Y | 3Y | 5Y | Since Inception | |
|---|---|---|---|---|---|---|---|---|
| Sub-Fund | -- | -- | -- | -- | -- | -- | -- | -- |
| Index (net total return) | -- | -- | -- | -- | -- | -- | -- | -- |
As of --
As the Fund is newly established, there is insufficient data to provide a useful indication of past performance to investors.
Remarks： • 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 last Business Day of the calendar year / period, NAV-To-NAV, with dividend reinvested (if any). • These figures show by how much the units of each unit class of the Sub-Fund increased or decreased in value during the calendar year / period being shown. Performance data has been calculated in the respective unit class currency of the Sub-Fund, including ongoing charges and excluding charges incurred by the investors when trading the Sub-Fund on The Stock Exchange of Hong Kong Limited. • Where no past performance is shown, there was insufficient data available to provide performance during the calendar year / period being shown. • Index returns are for illustrative purposes only and do not represent actual performance of the Sub-Fund. Index performance returns do not reflect any management fees, transaction costs or expenses. • Data Source: The performance of the Sub-Fund and the Index are provided by China Universal (HK) and the relevant index provider respectively. • Sub-Fund launch date: 2026-10-22.
Data Source: China Universal Asset Management (Hong Kong) Company Limited.
As of: 2026-09-30 | Listing date: 2026-10-23
Tracking error measures how consistently an ETF follows its benchmark / index. It is the volatility (measured by standard deviation) of that return difference.
As of: 2026-09-30 | Listing date: 2026-10-23
• The Sub-Fund's performance is calculated on an NAV-To-NAV basis and assumes reinvestment of distributions (where applicable).
• Data Source: China Universal Asset Management (Hong Kong) Company Limited / Index Provider.
| # | Ticker | Name | Weight |
|---|
• The total may not be equal to 100% due to rounding. Allocations are subject to change without notice.
• Data Source: China Universal (HK), unless specified otherwise. All information is for reference only. As of 2026-10-27.
| For the period of | Unit Class | Dividend Record Date | Ex-Dividend Date | Dividend Payment Date | Dividend paid out of net distributable income* (%) | Dividend paid out of capital (%) | Dividend per unit |
|---|---|---|---|---|---|---|---|
| No dividend record available | |||||||
* “Net distributable income” means the net investment income (i.e. dividend income and interest income net of fees and expenses) attributable to the relevant unit class and may also include net realised gains (if any) based on unaudited management accounts. However, “net distributable income” does not include net unrealised gains.
The Manager may, at its discretion, pay dividend out of the capital of the Sub-Fund or pay dividend out of gross income while charging/paying all or part of the Sub-Fund’s fees and expenses to/out of the capital of the Sub-Fund, resulting in an increase in distributable income for the payment of dividends by the Sub-Fund, and therefore, the Sub-Fund may effectively pay dividend out of capital. Payment of dividends out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Such distributions will result in an immediate reduction in the net asset value per unit of the Sub-Fund.
Dividend paid or payable are not in any way a forecast or projection of the future or likely performance of the Sub-Fund or dividend payments. The making of such payment should not be taken to imply that future dividend payments will be made. Investment involves risks. The past performance is not indicative of future performance. The Manager has discretion as to whether or not to make any distribution of dividends, the frequency of distribution and amount of dividends. Please note that a positive distribution yield does not imply a positive return. Investors should not make any investment decision solely based on information contained in the table above. You should read the relevant offering document (including the product key facts statement) of the Sub-Fund for further details including the risk factors.
| Document Name | Issue Date | Download |
|---|---|---|
| CUAM Solactive China & Global Semiconductor ETF – Indicative Net Asset Value Announcement | 2026-10-22 | Download |
1. The last NAV of the Sub-Fund and the last NAV per Unit of the Sub-Fund in HKD are provided by China Universal (HK).
2. The near real time indicative NAV per Unit in HKD is indicative and for reference only. This is provided by ICE Data and is updated every 15 seconds during normal trading hours on the Hong Kong Stock Exchange (SEHK).
3. The closing price of Listed Units is provided by WIND. Change indicates the change of closing price since previous SEHK trading day.
Solactive AG (“Solactive”) is the licensor of Solactive ACE ETF Connect China & Global Semiconductor Top 30 Index NTR (the “Index”). The financial instruments that are based on the Index are not sponsored, endorsed, promoted or sold by Solactive in any way and Solactive makes no express or implied representation, guarantee or assurance with regard to: (a) the advisability in investing in the financial instruments; (b) the quality, accuracy and/or completeness of the Index; and/or (c) the results obtained or to be obtained by any person or entity from the use of the Index. Solactive does not guarantee the accuracy and/or the completeness of the Index and shall not have any liability for any errors or omissions with respect thereto. Notwithstanding Solactive’s obligations to its licensees, Solactive reserves the right to change the methods of calculation or publication with respect to the Index and Solactive shall not be liable for any miscalculation of or any incorrect, delayed or interrupted publication with respect to the Index. Solactive shall not be liable for any damages, including, without limitation, any loss of profits or business, or any special, incidental, punitive, indirect or consequential damages suffered or incurred as a result of the use (or inability to use) of the Index.
The iNAV calculations as shown on this website (the “Data”) are provided by ICE Data Indices, LLC or its third party suppliers and are updated during Hong Kong Stock Exchange trading hours. The iNAV calculations are indicative and for reference purposes only. You acknowledge that the Data is provided for information only and should not be relied upon for any purpose. The Sub-Fund is not sponsored, endorsed, sold or marketed by ICE Data Indices, LLC, its affiliates (“ICE Data”) or their respective third party suppliers. ICE DATA OR ITS THIRD PARTY SUPPLIERS MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE iNAV, ETF STATISTICS, SUB-FUND OR ANY FUND DATA INCLUDED THEREIN. IN NO EVENT SHALL ICE DATA HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. The English version of this disclaimer prevails.
Investment involves risks. The unit price of the Sub-Fund may go down as well as up and the past performance of the Sub-Fund does not indicate future return. Investment returns are denominated in the relevant unit class currency of the Sub-Fund. Where the unit class currency is not US/HK Dollars, US/HK Dollar-based investors are exposed to exchange rate fluctuations. Investors should refer to the offering documents of the Sub-Fund, including the Explanatory Memorandum/Prospectus and 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 (“China Universal (HK)”) and has not been reviewed by the Hong Kong Securities and Futures Commission.
©China Universal Asset Management (Hong Kong) Company Limited. All rights reserved.
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 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. Before making any investment decisions, investors should carefully read the Fund's offering documents, including Explanatory Memorandum/Prospectus, Hong Kong Supplement (if applicable) and Product Key Facts Statement for details and risk factors of the Fund, particularly the risk of investment in emerging markets.
CUAM Stable Income Fund (the "Fund") seeks to provide investors with a stable return by primarily investing in a portfolio of debt securities instruments.
• The Fund is a monthly dealing fund. Investors subscribing for Units issued under the Fund can only apply for subscription and redemption once a month on the Dealing Day. Further, Units issued under the Fund cannot be switched into Units of other sub-funds established under China Universal International Series. As such, Units of the Fund would have lower liquidity when compared to the Units issued by other daily dealing sub-funds established under China Universal International Series.
• Due to the Fund’s monthly dealing arrangement, subscription and redemption applications for Units issued under the Fund can be more concentrated on the single Dealing Day in each month. Where redemption applications are concentrated on the Dealing Day, it may cause the Fund’s redemption gate to be triggered more easily on the Dealing Day. The Manager will consider different factors including but not limited to the Fund’s liquidity profile when deciding whether to exercise its powers to impose a redemption gate on any Dealing Day if the number of Units being realised on the Dealing Day for the Fund has exceeded 10% of the total number of Units of the Fund in issue.
• The instruments invested by the Fund may fall in value due to any of the key risk factors below and therefore your investment in the Fund may suffer losses. There is no guarantee of dividend or distribution payments during the period an investor holds units in the Fund. There is no guarantee of the repayment of principal.
Risk of investing in asset-backed securities, mortgage-backed securities and asset-backed commercial papers
• The Fund may invest less than 30% in asset-backed securities, mortgage-backed securities and asset-backed commercial papers which may be highly illiquid and prone to substantial price volatility. The liquidity, credit and interest rate risks of these instruments can be higher than a regular bond or debt instrument. They are often exposed to extension and prepayment risk and risks that the payment obligations relating to the underlying assets are not met, which may adversely impact the returns of the securities.
Interest rates risk
• Investment in the Fund is subject to interest rate risk. Generally, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise.
Credit risk of issuers/guarantors or counterparties
•The Fund is exposed to the credit/insolvency/default risk of issuers/guarantors of the debt securities it invests in.
Risks relating to credit rating
• Credit ratings assigned by a rating agency are subject to limitations and are not absolute standards of credit quality and do not evaluate market risks and do not guarantee the creditworthiness of the security and/or issuer/guarantor at all times.
Downgrading risk
• Investment grade and non-investment grade securities or the credit rating of the issuer/guarantor may be subject to the risk of being downgraded to below investment grade or unrated. 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.
Below investment grade and unrated securities risk
• The Fund may invest less than 30% in securities which are below investment grade or which are unrated. Such securities would generally be considered to have a higher degree of counterparty risk, credit risk, volatility risk, liquidity risk and greater risk of loss of principal and interest than higher rated, lower yielding securities.
Sovereign debt risk
• The Fund’s investment in securities issued or guaranteed by governments may be exposed to political, social and economic risks. In adverse situations, the sovereign issuers may not be able or willing to repay the principal and/or interest when due or may request the Fund to participate in restructuring such debts. The Fund may suffer significant losses when there is a default of sovereign debt issuers.
Liquidity and volatility risk
• Some of the debt securities in which the Fund invests may be illiquid and more volatile, and may be difficult or impossible to sell. The prices of securities traded in emerging markets may be subject to fluctuations. The bid and offer spreads of the price of such securities may be large and the Fund may incur significant trading costs.
Valuation risk
• Valuation of the Fund’s investment may involve uncertainties and judgmental determinations, and independent pricing information may not at all times be available. If such valuations should prove to be incorrect, the net asset value of the Fund may be adversely affected.
• The Fund may invest only in a specific country/region. The value of the Fund is likely to be more volatile than that of a broad-based fund as they are more susceptible to fluctuations in value resulting from adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the respective countries/regions.
•The Fund may invest in emerging markets which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
•This Fund may invest up to 100% in convertible bonds, which shares similar characteristics and nature of debt and equity, permitting holders to convert into shares in the company issuing the bond at a specific future date. Convertible bonds will be exposed to equity movement and greater volatility than straight bond investments. Investment in convertible bonds are subject to the same credit, interest rate, liquidity and prepayment risks associated with comparable straight bond investments and market risks with both debt securities and equity securities and any risk specific to convertible bonds.
• Debt instruments with loss-absorption features are subject to greater risks when compared to traditional debt instruments as such instruments are typically subject to the risk of being written down or converted to ordinary shares upon the occurrence of pre-defined trigger events (e.g. when the issuer is near or at the point of non-viability or when the issuer’s capital ratio falls to a specified level), which are likely to be outside of the issuer’s control. Trigger levels differ and determine exposure to conversion risk. They are complex, and it might be difficult for the Manager to anticipate the triggering events that would require the conversion. These instruments may be converted into shares potentially at a discounted price and the principal amount invested may be lost. In case of conversion, the Manager might be forced to sell these new equity shares and such forced sale may result in the Fund experiencing losses.
• In the event of the activation of a trigger, there may be potential price contagion and volatility to the entire asset class. Debt instruments with loss-absorption features may also be exposed to coupon cancellation, liquidity, valuation and sector concentration risk, etc.
• The Fund may invest in contingent convertible debt securities, which are highly complex and are of high risk. Upon the occurrence of the trigger event, contingent convertible debt securities may be converted into shares of the issuer (potentially at a discounted price), or may be subject to the permanent write-down to zero. Coupon payments on contingent convertible debt securities are discretionary and may be cancelled by the issuer at any point, for any reason, and for any length of time.
•The Fund may invest in non-preferred senior debt securities. While these instruments are generally senior to subordinated debts, they may be subject to write-down upon the occurrence of a trigger event and will no longer fall under the creditor ranking hierarchy of the issuer. This may result in total loss of principal invested.
• Payment of distributions out of the Fund’s capital and/or effectively out of the Fund’s capital 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 such distributions will result in an immediate reduction of the net asset value per unit.
• The use of financial derivative instruments may expose the Fund to risks including market volatility risk, credit risk, counterparty risk, liquidity risk, non-redeemable risk and issuer’s defaults risk. In adverse situation, the use of financial derivative instruments for hedging purposes may become ineffective and the Fund may suffer significant losses.
• The Fund may invest in part in assets quoted in currencies other than its base currency. Also, a class of units may be designated in a currency other than the base currency of the Fund. The performance and the net asset value of the Fund will therefore be affected unfavourably by movements in the exchange rate between the currencies in which the assets are held and the base currency of the Fund and by changes in exchange rate controls.
• RMB is currently not freely convertible and is subject to exchange controls and restrictions. Non-RMB based investors are exposed to foreign exchange risk and there is no guarantee that the value of RMB against the investors’ base currencies (for example HKD) will not depreciate. Any depreciation of RMB could adversely affect the value of investor’s investment in the Fund. Although offshore RMB (CNH) and onshore RMB (CNY) are the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors. Under exceptional circumstances, payment of redemptions and/or dividend payment in RMB may be delayed due to the exchange controls and restrictions applicable to RMB.
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. China Universal Group reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.
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.
Before you continue, please read this important information carefully. By clicking the "AGREE" button, you consent to be bound by all the terms set out herein. If you do not agree with any of these terms, please click "DO NOT AGREE" button and leave this website.
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 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. Before making any investment decisions, investors should carefully read the Fund's offering documents, including Explanatory Memorandum/Prospectus, Hong Kong Supplement (if applicable) and Product Key Facts Statement for details and risk factors of the Fund, particularly the risk of investment in emerging markets.
CUAM USD Money Market Fund (the "Fund") seeks to invest in short-term deposits and high quality money market investments and achieve a return in US Dollars in line with prevailing money market rates.
Investors should note that purchase of a unit in the Fund is not the same as placing funds on deposit with a bank or deposit-taking company, that the Manager has no obligation to redeem units at the offer value, and that the Fund is not subject to the supervision of the Hong Kong Monetary Authority. The Fund does not have a constant net asset value and does not guarantee the repayment of investment principal.
The instruments invested by the Fund may fall in value due to any of the key risk factors below and therefore your investment in the Fund may suffer losses. There is no guarantee of the repayment of principal.
Short-term debt instruments risk
As the Fund invests significantly in short-term instruments with short maturities, it means the turnover rates of the Fund’s investments may be relatively high and the transaction costs incurred as a result of the purchase or sale of short-term debt instruments may also increase which in turn may have a negative impact on the net asset value of the Fund.
Interest rates risk
Investment in the Fund is subject to interest rate risk. Generally, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise.
Credit risk of issuers/guarantors or counterparties
The Fund is exposed to the credit/insolvency/default risk of issuers/guarantors of the debt securities it invests in.
Risks relating to credit rating
Credit ratings assigned by a rating agency are subject to limitations and are not absolute standards of credit quality and do not evaluate market risks and do not guarantee the creditworthiness of the security and/or issuer/guarantor at all times.
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.
Downgrading risk
Investment grade securities or the credit rating of the issuer/guarantor may be subject to the risk of being downgraded to below investment grade or unrated. 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.
Sovereign debt risk
The Fund’s investment in securities issued or guaranteed by governments may be exposed to political, social and economic risks. In adverse situations, the sovereign issuers may not be able or willing to repay the principal and/or interest when due or may request the Fund to participate in restructuring such debts. The Fund may suffer significant losses when there is a default of sovereign debt issuers.
Liquidity and volatility risk
Some of the debt securities in which a Fund invests may be illiquid and more volatile, and may be difficult or impossible to sell. The prices of securities traded in emerging markets may be subject to fluctuations. The bid and offer spreads of the price of such securities may be large and the Fund may incur significant trading costs.
Valuation risk
Valuation of the Fund’s investment may involve uncertainties and judgmental determinations, and independent pricing information may not at all times be available. If such valuations should prove to be incorrect, the net asset value of the Fund may be adversely affected.
Bank deposits are subject to the credit risks of the relevant financial institutions. The Fund may also place deposits in non-resident accounts (NRA) and offshore accounts (OSA) with banks in China. The Fund’s deposit may not be protected by any deposit protection schemes, or the value of the protection under the deposit protection schemes may not cover the full amount deposited by the Fund. Therefore, if the relevant financial institution defaults, the Fund may suffer losses as a result.
The Fund will invest primarily in US Dollars-denominated and settled short-term deposits and money market instruments. The Fund may also invest only in a specific country/region, such as Greater China. The value of the Fund is likely to be more volatile than that of a broad-based fund as they are more susceptible to fluctuations in value resulting from adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the respective countries/regions and currency.
The Fund may invest in emerging markets, such as China, which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
The use of financial derivative instruments may expose the Fund to risks including market volatility risk, credit risk, counterparty risk, liquidity risk, non-redeemable risk and issuer’s defaults risk. The leverage element/component of financial derivatives instruments can result in a loss significantly greater than the amount invested in the financial derivative instruments by the Fund. In adverse situation, the use of financial derivative instruments for hedging purposes may become ineffective and the Fund may suffer significant losses.
In the event of the failure of the counterparty with which collateral has been placed, the Fund may suffer loss as there may be delays in recovering collateral placed out or the cash originally received may be less than the collateral placed with the counterparty due to inaccurate pricing of the collateral or market movements.
The Fund may invest in part in assets quoted in currencies other than its base currency. Also, a class of units may be designated in a currency other than the base currency of the Fund. The performance and the net asset value of the Fund will therefore be affected unfavourably by movements in the exchange rate between the currencies in which the assets are held and the base currency of the Fund and by changes in exchange rate controls.
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. China Universal Group reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.
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.
Before you continue, please read this important information carefully. By clicking the "AGREE" button, you consent to be bound by all the terms set out herein. If you do not agree with any of these terms, please click "DO NOT AGREE" button and leave this website.
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 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. Before making any investment decisions, investors should carefully read the Fund's offering documents, including Explanatory Memorandum/Prospectus, Hong Kong Supplement (if applicable) and Product Key Facts Statement for details and risk factors of the Fund, particularly the risk of investment in emerging markets.
CUAM RMB Bondplus Fund (the "Fund") uses, amongst others, a QFI status of the Manager (as the QFI holder) to invest primarily in RMB-denominated fixed income instruments issued and settled within Mainland China.
There is no guarantee of the repayment of principal.
The instruments invested by the Fund may fall in value and therefore your investment in the Fund may suffer losses.
RMB is currently not freely convertible and is subject to exchange controls and restrictions and investors may be adversely affected by movements of the exchange rates between RMB and other currencies.
There is no guarantee that RMB will not depreciate. If you convert Hong Kong Dollar or any other currency into RMB so as to invest in the Fund and subsequently convert the RMB redemption proceeds back into Hong Kong Dollar or any other currency, you may suffer a loss if RMB depreciates against Hong Kong Dollar or other currency.
Credit risk of issuers or counterparties
The Fund is exposed to the credit/insolvency risk of issuers of RMB-denominated fixed income instruments that it may invest in.
Certain RMB-denominated fixed income instruments that the Fund invests in are unsecured debt obligations and are not supported by any collateral. The Fund will be fully exposed to the credit/insolvency risk of its counterparties as an unsecured creditor.
Interest rates risk
Investment in the Fund is subject to interest rate risk. Generally, the prices of fixed income instruments rise when interest rates fall, whilst their prices fall when interest rates rise. The Chinese government's macro-economic policies and controls will have significant influence over the capital markets in China. Changes in fiscal policies, such as interest rates policies, may have an adverse impact on the pricing of RMB-denominated fixed income instruments, and thus the return of the Fund.
Risk relating to credit rating
The rating criteria and methodology used by Chinese local rating agencies may be different from those adopted by most of the established international credit rating agencies. Therefore, such rating system may not provide an equivalent standard for comparison with securities rated by international credit rating agencies.
Risk relating to lower rated or unrated bond
Some of the RMB-denominated fixed income instruments may be lower rated or unrated. Lower rated / unrated securities would generally be considered to have a higher degree of counterparty risk, credit risk, volatility risk and liquidity risk than higher rated, lower yielding securities. The issuers of those securities are generally subject to higher credit or default risk. These in turn may have adverse impact on the Net Asset Value of the Fund and the Fund could suffer substantial loss.
Downgrading risk
Investment grade securities may be subject to the risk of being downgraded to BB+ or below by PRC local rating agencies. If the Fund continues to hold such securities, it will be subject to additional risk of loss.
Valuation risk
Valuation of the Fund's investments may involve uncertainties and judgmental determinations, and independent pricing information may not at all times be available. If such valuations should prove to be incorrect, the Net Asset Value of the Fund may be adversely affected. The value of fixed income instruments may be affected by changing market conditions or other significant market events affecting valuation. For example, in the event of downgrading of an issuer, the value of the relevant fixed income instruments may decline rapidly.
Liquidity risk
The Mainland China bond market is at a developing stage and the trading volume may be lower than those of the more developed markets. The Fund may invest in fixed income instruments which are not listed. Even if the fixed income instruments are listed, the market for such instruments may be inactive. The Fund is therefore subject to liquidity risks and may suffer losses in trading such instruments. The bid and offer spreads of the price of such instruments may be large, so the Fund may incur significant trading and realisation costs and may suffer losses accordingly.
China is considered as an emerging market and investing in China may subject the Fund to higher economic, political, social and regulatory risks. Investments in China may also be less liquid and more volatile.
The QFI rules are novel in nature – their application may depend on the interpretation given by the relevant Chinese authorities. Any changes to the relevant rules may have an adverse impact on investors’ investment in the Fund.
The Fund's ability to make the relevant investments or to fully implement or pursue its investment objective and strategy is subject to the applicable laws, rules and regulations (including restrictions on investments and repatriation of principal and profits) in the PRC, which are subject to change and such change may have potential retrospective effect.
The Fund may suffer substantial losses if the approval of the QFI status is being revoked/terminated or otherwise invalidated as the Fund may be prohibited from trading of relevant securities and repatriation of the Fund's monies, or if any of the key operators or parties (including QFI Custodian/brokers) is bankrupt/in default and/or is disqualified from performing its obligations (including execution or settlement of any transaction or transfer of monies or securities).
Repatriations by QFIs in respect of the Fund are currently not subject to any restrictions, lock-up periods or prior approval, although an authenticity and compliance review will be conducted by the QFI Custodian on each time of repatriation and a monthly breakdown of remittances and repatriations will be submitted to SAFE by the QFI Custodian. The repatriation process may be subject to certain requirements set out in the relevant regulations such as submission of certain documents, and completion of the repatriation process may be subject to delay. There is no assurance, however, that PRC rules and regulations will not change or that repatriation restrictions will not be imposed in the future. Any restrictions on repatriation of the invested capital and net profits may impact on the Fund's ability to meet redemption requests from the Unitholders.
The Fund may also be exposed to risks associated with settlement procedures and default of counterparties. The counterparty which has entered into a transaction with the Fund may default in its obligation to settle the transaction by delivery of the relevant security or by payment for value. The relevant rules and regulations on investment in the CIBM, whether through CIBM initiative or any other means, are subject to change which may have potential retrospective effect. In the event that the relevant PRC authorities suspend trading on the CIBM via these means, the Fund's ability to invest in the CIBM will be limited and the Fund may suffer substantial losses as a result. Also, any changes to the relevant rules and regulations may have an adverse impact on investors' investment in the Fund.
There are risks and uncertainties associated with changes in the current PRC tax law, regulations and practice in respect of capital gains derived by QFIs, or through the CIBM initiative or other means, on its investment in the PRC, which may have retrospective effect and may adversely affect the Fund. Any increased tax liabilities on the Fund may adversely affect the Fund's value.
Having taken and considered independent professional tax advice, the Manager determines that:
1.no PRC withholding income tax ("WIT") provision will be made for the account of the Fund in respect of any potential PRC tax liability on gross unrealized and realized capital gains derived from investments in PRC fixed income instruments;
2.for investments in China A-Shares, no PRC WIT provision will be made on gross unrealized and realized capital gains derived from investments in China A-Shares from 17 November 2014 onwards;
3.no WIT provision or value added tax provision will be made on interest income derived from debt instruments issued or distributed in the PRC received/receivable by Fund for the period from 7 November 2021 to 31 December 2025.
The tax exemption granted under Circular Caishui (2014) No.79 Circular Caishui (2014) No.81, Circular Caishui (2016) No.127, and Announcement (2021) No. 34 of the Ministry of Finance and the State Taxation Administration are only temporary. It is also possible that the applicable tax law, regulations and practice may be changed. In such case, the Fund may have tax liabilities in the PRC which it has not provided for. Any under-provided tax liabilities will be deducted from the Fund's assets, and will cause the Fund's net asset value to be adversely affected. In this case, existing and subsequent investors will be disadvantaged as they will bear a disproportionately higher amount of tax liabilities as compared to the liability at the time of investment in the Fund.
Any shortfall between the provision and the actual tax liabilities, which will be debited from the Fund's assets, will adversely affect the Fund's net asset value. The actual tax liabilities may be lower than the tax provision made. Depending on the final tax liabilities, the level of provision and the timing of their subscriptions and/or redemptions, investors may be disadvantaged as a result of any shortfall of tax provision and will not have the right to claim any part of the overprovision (as the case may be).
Urban Investment Bonds are issued by LGFVs. Although local governments may be seen to be closely connected to urban investment bonds, such bonds are typically not guaranteed by local governments or the central government of the PRC. As such, local governments or the central government of the PRC are not obligated to support any LGFVs in default. 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.
The Fund may invest in asset backed securities (including asset backed commercial papers), which is a kind of structured debt instruments, provide exposure, synthetically or otherwise, to underlying assets and the risk/return profile is determined by the cash flows derived from such assets. The liquidity of asset backed securities (including asset backed commercial papers) can be less than a regular bond or debt instrument and this may adversely affect either the ability to sell the position or the price at which such a sale is transacted.
Asset backed securities (including asset backed commercial papers) are subject to prepayment risk. The assets underlying asset backed securities (including asset backed commercial papers) may generally be prepaid at any time by the related borrowers. The prepayments may be used to prepay all or partial of the principal balance. As a result, the yield to maturity and market value of some of the asset backed securities (including asset backed commercial papers) are affected, to varying degrees, by the rate of prepayments of the underlying assets. Asset backed securities (including asset backed commercial papers) are also subject to credit risk and valuation risk. The Fund may therefore suffer substantial loss and the Net Asset Value of the Fund could be adversely affected.
Trigger level risk / conversion risk
Debt instruments with loss-absorption features are subject to greater risks when compared to traditional debt instruments as such instruments are typically subject to the risk of being written down or converted to ordinary shares upon the occurrence of pre-defined trigger events (e.g. when the issuer is near or at the point of non-viability or when the issuer's capital ratio falls to a specified level), which are likely to be outside of the issuer's control. Trigger levels differ and determine exposure to conversion risk. They are complex, and it might be difficult for the Manager to anticipate the triggering events that would require the conversion. These instruments may be converted into shares potentially at a discounted price and the principal amount invested may be lost. In case of conversion, the Manager might be forced to sell these new equity shares and such forced sale may result in the Fund experiencing losses.
In the event of the activation of a trigger, there may be potential price contagion and volatility to the entire asset class.
Coupon cancellation risk
Coupon payments are entirely discretionary and may be cancelled by the issuer. As a result, these instruments may be volatile and their price may decline rapidly in the event that coupon payments are suspended.
Sector concentration risk
These instruments are issued by banking and insurance institutions. The performance of the Fund may depend to a greater extent on the overall condition of the financial services industry than for funds following a more diversified strategy.
Novelty and untested nature
The structure of these instruments is innovative yet untested. In a stressed environment, when the underlying features of these instruments will be put to the test, it is uncertain how they will perform.
Valuation and liquidity risk
Debt instruments with loss-absorption features may also be exposed to valuation and liquidity risk.
Contingent convertible debt securities
The Fund may invest in contingent convertible debt securities, which are highly complex and are of high risk. Upon the occurrence of the trigger event, contingent convertible debt securities may be converted into shares of the issuer (potentially at a discounted price), or may be subject to the permanent write-down to zero. Coupon payments on contingent convertible debt securities are discretionary and may be cancelled by the issuer at any point, for any reason, and for any length of time.
Non-preferred senior debt securities
The Fund may invest in non-preferred senior debt securities. While these instruments are generally senior to subordinated debts, they may be subject to write-down upon the occurrence of a trigger event and will no longer fall under the creditor ranking hierarchy of the issuer. This may result in total loss of principal invested.
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. China Universal Group reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.
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
Before you continue, please read this important information carefully. By clicking the "AGREE" button, you consent to be bound by all the terms set out herein. If you do not agree with any of these terms, please click "DO NOT AGREE" button and leave this website.
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 Sub-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 Sub-Fund may go up as well as down. The Manager does not guarantee that the Sub-Fund is profitable or able to achieve minimum return. Past performance of the Sub-Fund does not represent its future performance and the performance of the other funds managed by the Manager is no guarantee of the performance of the Sub-Fund. The value of the Sub-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. Before making any investment decisions, investors should carefully read the Sub-Fund's offering documents, including Explanatory Memorandum/Prospectus, Hong Kong Supplement (if applicable) and Product Key Facts Statement for details and risk factors of the Sub-Fund, particularly the risk of investment in emerging markets.
• The Sub-Fund’s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Sub-Fund may suffer losses. There is no guarantee of the repayment of principal.
• The Sub-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.
• As the Index constituents concentrate in companies domiciled or carrying out the predominant part of their activities in the US, Chinese Mainland, South Korea, Taiwan, Hong Kong and the Netherlands whose primary business focuses on semiconductors, the investment of the Sub-Fund may be similarly concentrated. The value of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio of investments. The value of the Sub-Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the relevant markets or the relevant sector.
• The Sub-Fund invests in companies in the semiconductor industry, which may particularly be affected by the intense competition in such industry. Specific factors which may cause the value of securities within the semiconductor sector to deteriorate include, but are not limited to, domestic and international competition pressures, rapid obsolescence of products caused by fast-developing nature of the industry, economic performance of customers, substantial capital expenditures, rapid obsolescence and potential shortages of raw materials or equipment. Companies in the semiconductor sector typically make significant spending on research and development, and there is no guarantee that the products produced by these companies will materialise into commercially successful products.
• The semiconductor sector may be subject to government intervention, sanctions and trade protectionism. Companies in the semiconductor sector may be highly dependent upon government subsidies and incentives (including but not limited to preferential tax treatments) and contracts with government entities, and may be negatively affected if such subsidies are reduced, such preferential tax treatments expires or are discontinued, or contracts are unavailable due to changes in government policies. Companies in the semiconductor sector are typically dependent on maintaining relationships with their technology partners. If such relationship is impaired or terminated, the company may not be able to enter into a new technology alliance on a timely basis or on commercially favourable terms. The semiconductor sector is also characterised by cyclical market patterns and periodic overcapacity. All these could harm the business and operating results of semiconductor companies.
• The Sub-Fund is passively managed and the Manager will not have the discretion to adapt to market changes due to the inherent investment nature of the Sub-Fund and will not take defensive positions in declining markets. Falls in the Index are expected to result in corresponding falls in the Net Asset Value of the Sub-Fund.
• The trading price of the Units on the SEHK is driven by market factors such as the demand and supply of the Units. Therefore, the Units may trade at a substantial premium or discount to the Net Asset Value of the Sub-Fund.
• As investors will pay certain charges (e.g. trading fees and brokerage fees) to buy or sell Units on the SEHK, investors may pay more than the Net Asset Value per Unit when buying Units on the SEHK, and may receive less than the Net Asset Value per Unit when selling Units on the SEHK.
• The Sub-Fund may be subject to tracking error risk, which is the risk that its performance may not track that of the Index exactly. This tracking error may result from the investment strategy used, and fees and expenses. The Manager will monitor and seek to manage such risk in minimising tracking error. There can be no assurance of exact or identical replication at any time of the performance of the Index by the Sub-Fund.
• As an exchange may be open when the Units of the Sub-Fund are not priced, the value of any investment which comprises the Sub-Fund may change when investors may not be able to buy or sell the Units. Further the investments comprising the Sub-Fund may not be open for trading during the whole / part of the SEHK trading day due to trading hour differences which may result in the trading price of Units deviating from the Net Asset Value per Unit.
• The Sub-Fund may invest in part in assets quoted in currencies other than its base currency. The performance and the Net Asset Value of the Sub-Fund will therefore be affected unfavourably by movements in the exchange rate between the currencies in which the assets are held and the base currency of the Sub-Fund and by changes in exchange rate controls.
• The Index is a new index. The Index has minimal operating history by which investors can evaluate its previous performance. There can be no assurance as to the performance of the Index. The Sub-Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history.
• The Index is a modified equal weighted index. Investing in a modified equal weighted index involves distinct risks. By weighting constituents equally within their respective tier regardless of their relative difference in market capitalisation, as per the Index methodology, this strategy may increase exposure to more volatile small-capitalisation and mid-capitalisation companies. As a result, the Sub-Fund may be more susceptible to liquidity constraints and may underperform market-capitalisation-weighted benchmarks during periods of large-capitalisation-led rallies. In addition, the Sub-Fund may incur higher turnover and transaction costs resulting from quarterly rebalancing required to maintain target weights.
• The Sub-Fund may also invest in companies of any market capitalisation including but not limited to companies with small or medium market capitalisation. The stocks of companies with small or medium market capitalisation may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger market capitalisation companies in general.
• The Sub-Fund may be terminated early under certain circumstances, for example, where there is no market maker, the Index is no longer available for benchmarking or if the size of the Sub-Fund falls below USD 10 million (or equivalent in HKD). Any amount recovered by a shareholder on termination of the Sub-Fund may be less than the capital initially invested by the shareholder, resulting in a loss to the shareholder.
• Liquidity in the market for the Units may be adversely affected if there is no or only one market maker for the Units. The Manager will seek to mitigate this risk by ensuring that at least one market maker gives not less than 3 months’ notice prior to terminating market making arrangement under the relevant market maker agreement. Liquidity in the market for the Units may be adversely affected if there is no market maker for Units in a particular counter. It is possible that there is only one SEHK market maker for the Sub-Fund, or the Manager may not be able to engage a substitute market maker within the termination notice period of a market maker. There is no guarantee that any market making activity will be effective.
• Payment of dividends out of capital 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 such distributions may result in an immediate reduction of the Net Asset Value per Unit.
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. China Universal Group reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.
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.
Before you continue, please read this important information carefully. By clicking the "AGREE" button, you consent to be bound by all the terms set out herein. If you do not agree with any of these terms, please click "DO NOT AGREE" button and leave this website.
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 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. Before making any investment decisions, investors should carefully read the Fund's offering documents, including Explanatory Memorandum/Prospectus, Hong Kong Supplement (if applicable) and Product Key Facts Statement for details and risk factors of the Fund, particularly the risk of investment in emerging markets.
CUAM China-Hong Kong Strategy Fund (the "Fund") seeks to achieve medium to long-term capital growth through investing primarily in securities of companies which are established in Greater China or having their income, revenue, assets, economic activities, business or operations associated with Greater China.
The instruments invested by the Fund may fall in value due to any of the key risk factors below and therefore your investment in the Fund may suffer losses. There is no guarantee of repayment of principal.
The Fund may invest in part in assets quoted in currencies other than its base currency. Also, a class of units may be designated in a currency other than the base currency of the Fund. The performance and the net asset value of the Fund will therefore be affected unfavourably by movements in the exchange rates between these currencies and the base currency of the Fund and by changes in exchange rate controls.
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.
The investments of the Fund are concentrated in Greater China or specific sectors. The value of the Fund is likely to be more volatile than a broad-based fund. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting Greater China.
China is considered as an emerging market which may involve increased risks and special considerations not typically associated with investment in more developed markets and investing in China may subject the Fund to higher legal, taxation, settlement, custody, economic, political, foreign exchange and currency control, social and regulatory risks. Investments in China may also be less liquid and more volatile.
The Fund may invest in emerging markets which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
High market volatility and potential settlement difficulties in the 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.
Securities exchanges in Mainland China 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.
Interest rates risk
The Fund's investment in debt securities is subject to interest rate risk. Generally, the prices of debt securities fall when interest rates rise, and vice versa.
Credit risk of issuers or counterparties
The Fund is exposed to the credit/insolvency/default risk of issuers of the debt securities it invests in.
Risk relating to credit rating
Credit ratings assigned by rating agencies are subject to limitations and are not absolute standards of credit quality and do not evaluate market risks and do not guarantee the creditworthiness of the security and/or issuer at all times.
Risk relating to Mainland credit rating agencies
The rating criteria and methodology used by Chinese local rating agencies may be different from those adopted by most of the established international credit rating agencies. Therefore, such rating system may not provide an equivalent standard for comparison with securities rated by international credit rating agencies.
Downgrading risk
Investment grade securities or the credit rating of the issuer may be subject to the risk of being downgraded to below investment grade or unrated. 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.
Below investment grade and/or unrated debt securities risk
The Fund may invest less than 60% of its net asset value in debt securities which are below investment grade or which are unrated. Such securities would generally be considered to have lower liquidity, a higher degree of counterparty risk, credit risk, higher volatility risk and greater risk of loss of principal and interest than higher rated, lower yielding securities.
Sovereign debt risk
The Fund's investment in securities issued or guaranteed by governments may be exposed to political, social and economic risks. In adverse situations, the sovereign issuers may not be able or willing to repay the principal and/or interest when due or may request the Fund to participate in restructuring such debts. The Fund may suffer significant losses when there is a default of sovereign debt issuers.
Liquidity and volatility risk
Some debt securities the Fund invests in may be illiquid and more volatile when compared to more developed markets, and may be difficult or impossible to sell. The prices of securities may be subject to fluctuations. The bid and offer spreads of the price of such securities may be large and the Fund may incur significant trading costs.
Valuation risk
Independent pricing information on debt securities may not be available at all times. Thus, valuation of the Fund's investments in debt securities may involve uncertainties and judgmental determinations. If such valuation should prove to be incorrect, the net asset value of the Fund may be adversely affected.
The relevant rules and regulations on the Stock Connects are subject to change which may have potential retrospective effect. The Stock Connects are subject to quota limitations. Where a suspension in the trading through the programme is effected, the Fund's ability to invest in China A-shares or access the Mainland China market through the programme will be adversely affected. In such event, the Fund's ability to achieve its investment objective could be negatively affected.
There are risks and uncertainties associated with changes in the current PRC tax law, regulations and practice in respect of capital gains derived by QFIs, or through the Stock Connects or other means, on its investment in the PRC, which may have retrospective effect and may adversely affect the Fund. Any increased tax liabilities on the Fund may adversely affect the Fund's value.
Having taken and considered independent professional tax advice, the Manager determines that:
1.no PRC withholding income tax ("WIT") provision will be made for the account of the Fund in respect of any potential PRC tax liability on gross unrealized and realized capital gains derived from investments in PRC fixed income instruments;
2.for investments in China A-Shares, no PRC WIT provision will be made on gross unrealized and realized capital gains derived from investments in China A-Shares from 17 November 2014 onwards;
3.no WIT provision or value added tax provision will be made on interest income derived from debt instruments issued or distributed in the PRC received/receivable by Fund for the period from 7 November 2021 to 31 December 2025.
4.The tax exemption granted under Circular Caishui (2014) No.79 Circular Caishui (2014) No.81, Circular Caishui (2016) No.127, and Announcement (2021) No. 34 of the Ministry of Finance and the State Taxation Administration are only temporary. It is also possible that the applicable tax law, regulations and practice may be changed. In such case, the Fund may have tax liabilities in the PRC which it has not provided for. Any under-provided tax liabilities will be deducted from the Fund's assets, and will cause the Fund's net asset value to be adversely affected. In this case, existing and subsequent investors will be disadvantaged as they will bear a disproportionately higher amount of tax liabilities as compared to the liability at the time of investment in the Fund.
5.Any shortfall between the provision and the actual tax liabilities, which will be debited from the Fund's assets, will adversely affect the Fund's net asset value. The actual tax liabilities may be lower than the tax provision made. Depending on the final tax liabilities, the level of provision and the timing of their subscriptions and/or redemptions, investors may be disadvantaged as a result of any shortfall of tax provision and will not have the right to claim any part of the overprovision (as the case may be).
Exposure to depositary receipts may generate additional risks compare to direct exposure to the corresponding underlying stocks. There could be a risk that underlying shares would not be attributed to holders of depositary receipts in case of bankruptcy of the depositary bank.
There are fees related to depositary receipts which may impact the performance of the depositary receipts. Also, holders of depositary receipts are not direct shareholder rights as shareholders do. The Fund may also be subject to liquidity risk.
An investment in preferred shares involves additional risks that are not typically associated with an investment in ordinary shares. In certain circumstances, an issuer of preferred shares may redeem the shares prior to a specified date. A special redemption by the issuer may negatively impact the return of the shares held by the Fund.
Preferred shares are subordinated to bonds and other debt instruments in a company's capital structure in terms of priority to corporate income and liquidation payments and therefore will be subject to greater credit risk than those debt instruments. Preferred shares may be substantially less liquid than many other securities, including ordinary shares. The value and performance of the Fund may be adversely affected as a result.
This Fund may invest up to 30% in convertible bonds, which are a hybrid between debt and equity, permitting holders to convert into shares in the company issuing the bond at a specific future date. As such, convertible bonds will be exposed to equity movement and greater volatility than straight bond investments. Investment in convertible bonds are subject to the same credit risk, interest rate risk, liquidity risk and prepayment risk associated with comparable straight bond investments.
The use of financial derivatives instruments may expose the Fund to risks including market volatility risk, credit risk, counterparty risk, valuation risk, over-the-counter transaction risk and liquidity risk. The leverage element/component of financial derivatives instruments can result in a loss significantly greater than the amount invested in the financial derivative instruments by the Fund. In adverse situation, the use of financial derivative instruments for hedging purposes may become ineffective and the Fund may suffer significant losses.
RMB is currently not freely convertible and is subject to exchange controls and restrictions. Non-RMB based investors are exposed to foreign exchange risk and there is no guarantee that the value of RMB against the investors' base currencies (for example HKD) will not depreciate. Any depreciation of RMB could adversely affect the value of investor's investment in the Fund. Although offshore RMB (CNH) and onshore RMB (CNY) are the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors. Under exceptional circumstances, payment of redemptions and/or dividend payment in RMB may be delayed due to the exchange controls and restrictions applicable to RMB.
The dynamic asset allocation of the Fund may not achieve the desired results under all circumstances and market conditions.
The investments of the Fund may be periodically rebalanced and therefore the Fund may incur greater transaction costs than a Fund with static allocation strategy.
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. China Universal Group reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.
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.
Before you continue, please read this important information carefully. By clicking the "AGREE" button, you consent to be bound by all the terms set out herein. If you do not agree with any of these terms, please click "DO NOT AGREE" button and leave this website.
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 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. Before making any investment decisions, investors should carefully read the Fund's offering documents, including Explanatory Memorandum/Prospectus, Hong Kong Supplement (if applicable) and Product Key Facts Statement for details and risk factors of the Fund, particularly the risk of investment in emerging markets.
CUAM Hong Kong Dollar Bond Fund (the "Fund") seeks to provide investors with a stable and consistent investment return over medium to long term by investing primarily in Hong Kong Dollar denominated debt securities instruments.
The instruments invested by the Fund may fall in value and therefore your investment in the Fund may suffer losses. There is no guarantee of dividend or distribution payments during the period an investor holds units in the Fund.
The Fund mainly invests in debt securities which may fall in value. Investors may suffer losses as a result. Investment in the Fund is subject to risks that apply to debt securities as follows:
Interest rates risk
Investment in the Fund is subject to interest rate risk. Generally, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise.
Credit risk of issuers or counterparties
The Fund is exposed to the credit/insolvency risk of issuers of the debt securities it invests in. Such issuers may be unable or unwilling to make timely payments on principal and/or interest.
Risks relating to credit rating
Credit ratings assigned by a rating agency are not absolute standards of credit quality and do note valuate market risks.
Downgrading risk
Investment grade securities may be subject to the risk of being downgraded to below investment grade securities. If the Fund continues to hold such securities, it will be subject to additional risk of loss.
Below investment grade and unrated securities risk
The Fund may invest in securities which are below investment grade or which are unrated. Such securities would generally be considered to have a higher degree of counterparty risk, credit risk and liquidity risk than higher rated, lower yielding securities. If the issuer of such securities defaults, or such securities cannot be realised, or perform badly, investors may suffer substantial losses.
Liquidity risk
Some of the debt securities in which a Fund invests may be illiquid, and may be difficult or impossible to sell. This would affect the Fund's ability to acquire or dispose of such securities at their intrinsic value.
Valuation risk
Valuation of the Fund's investment may involve uncertainties and judgmental determinations, and independent pricing information may not at all times be available. If such valuations should prove to be incorrect, the Net Asset Value of the Fund may be adversely affected. The value of fixed income instruments may be affected by changing market conditions or other significant market events affecting valuation.
This Fund may invest in convertible bonds, which shares similar characteristics and nature of debt and equity, permitting holders to convert into shares in the company issuing the bond at a specific future date. Convertible bonds are subject to the credit, interest rate and market risks with both debt securities and equity securities and any risk specific to convertible bonds. Convertible bonds may also be subject to lower liquidity than the underlying equities. Therefore, investors should be prepared for greater volatility than normal bond investments, with an increased risk of capital loss.
Trigger level risk / conversion risk
Debt instruments with loss-absorption features are subject to greater risks when compared to traditional debt instruments as such instruments are typically subject to the risk of being written down or converted to ordinary shares upon the occurrence of pre-defined trigger events (e.g. when the issuer is near or at the point of non-viability or when the issuer's capital ratio falls to a specified level), which are likely to be outside of the issuer's control. Trigger levels differ and determine exposure to conversion risk. They are complex, and it might be difficult for the Manager to anticipate the triggering events that would require the conversion. These instruments may be converted into shares potentially at a discounted price and the principal amount invested may be lost. In case of conversion, the Manager might be forced to sell these new equity shares and such forced sale may result in the Fund experiencing losses.
In the event of the activation of a trigger, there may be potential price contagion and volatility to the entire asset class.
Coupon cancellation risk
Coupon payments are entirely discretionary and may be cancelled by the issuer. As a result, these instruments may be volatile and their price may decline rapidly in the event that coupon payments are suspended.
Sector concentration risk
These instruments are issued by banking and insurance institutions. The performance of the Fund may depend to a greater extent on the overall condition of the financial services industry than for funds following a more diversified strategy.
Novelty and untested nature
The structure of these instruments is innovative yet untested. In a stressed environment, when the underlying features of these instruments will be put to the test, it is uncertain how they will perform.
Valuation and liquidity risk
Debt instruments with loss-absorption features may also be exposed to valuation and liquidity risk.
Contingent convertible debt securities
The Fund may invest in contingent convertible debt securities, which are highly complex and are of high risk. Upon the occurrence of the trigger event, contingent convertible debt securities may be converted into shares of the issuer (potentially at a discounted price), or may be subject to the permanent write-down to zero. Coupon payments on contingent convertible debt securities are discretionary and may be cancelled by the issuer at any point, for any reason, and for any length of time.
Non-preferred senior debt securities
The Fund may invest in non-preferred senior debt securities. While these instruments are generally senior to subordinated debts, they may be subject to write-down upon the occurrence of a trigger event and will no longer fall under the creditor ranking hierarchy of the issuer. This may result in total loss of principal invested.
The Fund may hold equities in the event that the Manager converts the invested convertible bonds to equities. The value of such investments may be affected by uncertainties such as international, political and economic developments or changes in government policies. In falling equity markets there may be increased volatility. Market prices in such circumstances may defy rational analysis or expectation for prolonged periods of time, and can be influenced by movements of large funds as a result of short-term factors, counter-speculative measures or other reasons.
The use of financial derivative instruments may expose the Fund to risks including market volatility risk, credit risk, counterparty risk, liquidity risk, non-redeemable risk and issuer's defaults risk.The leverage element/component of financial derivatives instruments can result in a loss significantly greater than the amount invested in the financial derivative instruments by the Fund. In adverse situation, the use of financial derivative instruments for hedging purposes may become ineffective and the Fund may suffer significant losses.
RMB is currently not freely convertible and is subject to exchange controls and restrictions imposed by the Mainland authorities. Investors may be adversely affected by movements of the exchange rates between RMB and other currencies.
The prices of unit in the RMB classes are denominated in RMB, but the Fund may have limited RMB-denominated underlying investments and its base currency is HKD. As such, even if the prices of underlying investments and/or value of the base currency rise or remain stable, investors may still incur losses if RMB appreciates against the currencies of the underlying investments and/or the base currency more than the increase in the value of the underlying investments and/or the base currency. Furthermore, if RMB appreciates against the currencies of the underlying investments and/or the base currency, and the value of the underlying investments decreased, the value of investors' investments in RMB classes may suffer additional losses.
Investors investing in RMB classes must subscribe for units and will normally receive redemption proceeds in RMB. Due to the exchange controls and restrictions applicable to RMB, the Fund may not be able to get sufficient amounts of RMB in a timely manner to meet redemption requests of RMB classes and/or pay dividends (if any) if all or a substantial portion of its underlying investments are non-RMB denominated. Therefore, even if the Fund aims to pay redemption proceeds and/or dividends to investors of RMB classes in RMB, investors may not receive RMB upon redemption of investments or receive dividend payments (if any) in RMB. There is also a risk that payment of investors' redemption proceeds in RMB may be delayed when there is not sufficient RMB for currency conversion for settlement of the redemption proceeds.
When calculating the value of the RMB classes, reference will be made to the offshore RMB in Hong Kong (the "CNH"). The CNH rate may be at a premium or discount to the exchange rate for onshore RMB in China (the "CNY") and there may be significant bid and offer spreads. While CNH and CNY represent the same currency, they are traded in different and separate markets which operate independently. As such, CNH does not necessarily have the same exchange rate and may not move in the same direction as CNY.
The value of the RMB classes thus calculated will be subject to fluctuation. The exchange rate of RMB may rise or fall. There can be no assurance that RMB will not be subject to devaluation. Any devaluation of RMB could adversely affect the value of investors' investments in the RMB classes of the Fund. Non-RMB based (e.g. Hong Kong) investors may have to convert HKD or other currencies into RMB when investing in the RMB classes. Subsequently, investors may also have to convert the RMB redemption proceeds (received when selling the units) back to HKD or other currencies. During these processes, investors will incur currency conversion costs and may suffer losses in the event that RMB depreciates against HKD or such other currencies upon receipt of the RMB redemption proceeds.
Payment of distributions out of the Fund's capital and/or effectively out of the Fund's capital amounts to a return or withdrawal of part of a Unitholder's original investment or from any capital gains attributable to that original investment. Any such distributions will result in an immediate reduction of the net asset value per unit.
The approval of the SFC will be sought (where necessary) and at least one month's prior notice will be given to unitholders should there be a change in distribution policy.
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. China Universal Group reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.
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.
Before you continue, please read this important information carefully. By clicking the "AGREE" button, you consent to be bound by all the terms set out herein. If you do not agree with any of these terms, please click "DO NOT AGREE" button and leave this website.
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 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. Before making any investment decisions, investors should carefully read the Fund's offering documents, including Explanatory Memorandum/Prospectus, Hong Kong Supplement (if applicable) and Product Key Facts Statement for details and risk factors of the Fund, particularly the risk of investment in emerging markets.
CUAM Select US Dollar Bond Fund (the "Fund") seeks to provide investors with a stable and consistent investment return over medium to long term by investing primarily in US Dollar denominated debt securities instruments.
The instruments invested by the Fund may fall in value due to any of the key risk factors below and therefore your investment in the Fund may suffer losses. There is no guarantee of dividend or distribution payments during the period an investor holds units in the Fund. There is no guarantee of the repayment of principal.
The Fund may invest only in a specific country/region. The value of the Fund is likely to be more volatile than that of a broad-based fund as they are more susceptible to fluctuations in value resulting from adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the respective countries/regions.
The Fund may invest in emerging markets which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
In light of ongoing concerns on the sovereign debt risk of certain countries within the Eurozone, the Fund's investments in the region may be subject to higher volatility, liquidity, currency and default risks. Any adverse events, such as credit downgrade of a sovereign or exit of EU members from the Eurozone, may have a negative impact on the value of the Fund.
Risk of investing in asset-backed securities, mortgage-backed securities and asset- backed commercial papers
The Fund may invest up to 100% in asset-backed securities, mortgage-backed securities and asset-backed commercial papers which may be highly illiquid and prone to substantial price volatility. The liquidity, credit and interest rate risks of these instruments can be higher than a regular bond or debt instrument. They are often exposed to extension and prepayment risk and risks that the payment obligations relating to the underlying assets are not met, which may adversely impact the returns of the securities.
Interest rates risk
Investment in the Fund is subject to interest rate risk. Generally, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise.
Credit risk of issuers or counterparties
The Fund is exposed to the credit/insolvency/default risk of issuers of the debt securities it invests in.
Risks relating to credit rating
Credit ratings assigned by a rating agency are subject to limitations and are not absolute standards of credit quality and do not evaluate market risks and do not guarantee the creditworthiness of the security and/or issuer at all times.
Downgrading risk
Investment grade securities or the credit rating of the issuer may be subject to the risk of being downgraded to below investment grade or unrated . 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.
Below investment grade and unrated securities risk
The Fund may invest up to 100% of its net asset value in securities which are below investment grade or which are unrated. Such securities would generally be considered to have a higher degree of counterparty risk, credit risk, volatility risk, liquidity risk and greater risk of loss of principal and interest than higher rated, lower yielding securities.
Sovereign debt risk
The Fund's investment in securities issued or guaranteed by governments may be exposed to political, social and economic risks. In adverse situations, the sovereign issuers may not be able or willing to repay the principal and/or interest when due or may request the Fund to participate in restructuring such debts. The Fund may suffer significant losses when there is a default of sovereign debt issuers.
Liquidity and volatility risk
Some of the debt securities in which a Fund invests may be illiquid and more volatile, and may be difficult or impossible to sell. The prices of securities traded in emerging markets may be subject to fluctuations. The bid and offer spreads of the price of such securities may be large and the Fund may incur significant trading costs.
Valuation risk
Valuation of the Fund's investment may involve uncertainties and judgmental determinations, and independent pricing information may not at all times be available. If such valuations should prove to be incorrect, the net asset value of the Fund may be adversely affected.
This Fund may invest up to 100% in convertible bonds, which shares similar characteristics and nature of debt and equity, permitting holders to convert into shares in the company issuing the bond at a specific future date. Convertible bonds will be exposed to equity movement and greater volatility than straight bond investments. Investment in convertible bonds are subject to the same credit, interest rate, liquidity and prepayment risks associated with comparable straight bond investments and market risks with both debt securities and equity securities and any risk specific to convertible bonds.
company issuing the bond at a specific future date. Convertible bonds will be exposed to equity movement and greater volatility than straight bond investments. Investment in convertible bonds are subject to the same credit, interest rate, liquidity and prepayment risks associated with comparable straight bond investments and market risks with both debt securities and equity securities and any risk specific to convertible bonds.
Trigger level risk / conversion risk
Debt instruments with loss-absorption features are subject to greater risks when compared to traditional debt instruments as such instruments are typically subject to the risk of being written down or converted to ordinary shares upon the occurrence of pre-defined trigger events (e.g. when the issuer is near or at the point of non-viability or when the issuer's capital ratio falls to a specified level), which are likely to be outside of the issuer's control. Trigger levels differ and determine exposure to conversion risk. They are complex, and it might be difficult for the Manager to anticipate the triggering events that would require the conversion. These instruments may be converted into shares potentially at a discounted price and the principal amount invested may be lost. In case of conversion, the Manager might be forced to sell these new equity shares and such forced sale may result in the Fund experiencing losses.
In the event of the activation of a trigger, there may be potential price contagion and volatility to the entire asset class.
Coupon cancellation risk
Coupon payments are entirely discretionary and may be cancelled by the issuer. As a result, these instruments may be volatile and their price may decline rapidly in the event that coupon payments are suspended.
Sector concentration risk
These instruments are issued by banking and insurance institutions. The performance of the Fund may depend to a greater extent on the overall condition of the financial services industry than for funds following a more diversified strategy.
Novelty and untested nature
The structure of these instruments is innovative yet untested. In a stressed environment, when the underlying features of these instruments will be put to the test, it is uncertain how they will perform.
Valuation and liquidity risk
Debt instruments with loss-absorption features may also be exposed to valuation and liquidity risk.
Contingent convertible debt securities
The Fund may invest in contingent convertible debt securities, which are highly complex and are of high risk. Upon the occurrence of the trigger event, contingent convertible debt securities may be converted into shares of the issuer (potentially at a discounted price), or may be subject to the permanent write-down to zero. Coupon payments on contingent convertible debt securities are discretionary and may be cancelled by the issuer at any point, for any reason, and for any length of time.
Non-preferred senior debt securities
The Fund may invest in non-preferred senior debt securities. While these instruments are generally senior to subordinated debts, they may be subject to write-down upon the occurrence of a trigger event and will no longer fall under the creditor ranking hierarchy of the issuer. This may result in total loss of principal invested.
RMB is currently not freely convertible and is subject to exchange controls and restrictions. Non-RMB based investors are exposed to foreign exchange risk and there is no guarantee that the value of RMB against the investors' base currencies (for example HKD) will not depreciate. Any depreciation of RMB could adversely affect the value of investor's investment in the Fund. Although offshore RMB (CNH) and onshore RMB (CNY) are the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors. Under exceptional circumstances, payment of redemptions and/or dividend payment in RMB may be delayed due to the exchange controls and restrictions applicable to RMB.
Payment of distributions out of the Fund's capital and/or effectively out of the Fund's capital amounts to a return or withdrawal of part of a Unitholder's original investment or from any capital gains attributable to that original investment. Any such distributions will result in an immediate reduction of the net asset value per unit.
The Fund may invest in part in assets quoted in currencies other than its base currency. Also, a class of units may be designated in a currency other than the base currency of the Fund. The performance and the net asset value of the Fund will therefore be affected unfavourably by movements in the exchange rate between the currencies in which the assets are held and the base currency of the Fund and by changes in exchange rate controls.
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. China Universal Group reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.
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.
Before you continue, please read this important information carefully. By clicking the "AGREE" button, you consent to be bound by all the terms set out herein. If you do not agree with any of these terms, please click "DO NOT AGREE" button and leave this website.
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 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. Before making any investment decisions,investors should carefully read the Fund's offering documents, including Explanatory Memorandum/Prospectus, Hong Kong Supplement (if applicable)and Product Key Facts Statement for details and risk factors of the Fund, particularly the risk of investment inemerging markets.
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.China Universal Group reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.
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.
The underlying include of the Fund (the "include") is compiled and calculated by China Securities include Co., Ltd. ("CSI"). All copyright in the include values and constituent list vest in CSI. CSI will apply all necessary means to ensure the accuracy of the include. However, CSI does not guarantee its instantaneity, completeness or accuracy, nor shall it be liable (whether in negligence or otherwise) to any person for any error in the include or under any obligation to advise any person of any error therein.
All information provided by Interactive Data (Hong Kong) Limited ("Interactive Data") and its affiliates (the "Interactive Data Information") is owned by or licensed to Interactive Data and its affiliates and any user is permitted to use such Interactive Data Information only for such user's personal use. In no event shall any user publish, retransmit, redistribute or otherwise reproduce any Interactive Data Information in any format to anyone, and no user shall use any Interactive Data Information in or in connection with any business or commercial enterprise, including, without limitation, any securities, investment, accounting, banking, legal or media business or enterprise.
Prior to the execution of a security trade based upon the Interactive Data Information, you are advised to consult with your broker or other financial representative to verify pricing information.
THE INTERACTIVE DATA INFORMATION IS PROVIDED TO THE USERS "AS IS." NEITHER INTERACTIVE DATA NOR ITS AFFILIATES NOR ANY THIRD PARTY DATA PROVIDER MAKE ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND REGARDING THE INTERACTIVE DATA INFORMATION, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. NEITHER INTERACTIVE DATA NOR ITS AFFILIATES NOR ANY THIRD PARTY DATA PROVIDER WILL BE LIABLE TO ANY USER OR ANYONE ELSE FOR ANY INTERRUPTION, INACCURACY, ERROR OR OMISSION, REGARDLESS OF CAUSE, IN THE INTERACTIVE DATA INFORMATION OR FOR ANY DAMAGES (WHETHER DIRECT OR INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY) RESULTING THEREFROM.
Delayed data as shown on the Hong Kong Website (the "data") are provided by the data provider Interactive Data. Interactive Data and HKEx Information Services Limited, and their respective holding companies and/or any subsidiaries of such holding companies, do not guarantee the accuracy or reliability of the data provided and accept no liability (whether in tort or contract or otherwise) for any loss or damage you may suffer or incur arising out of or in connection with your use of the data, including loss or damage which arises out of the data being inaccurate, incomplete or delayed, and however such loss or damage arises. You acknowledge that the data is provided for information only and should not be relied upon for any purpose".
C-Shares CSI 300 include ETF (the "Fund")is a physical ETF and invests primarily in China A-Shares listed on the stock exchanges of thePeople's Republic of China ("China" or "PRC") through the Renminbi Qualified Foreign Institutional Investor("RQFII") quota of the Manager.
The Fund is an investment fund. It is not principal guaranteed and the purchase of its units is not the same as investing directly in the include Securities comprised in the Underlying include. Your investment in the Fund may suffer losses. There is no assurance that the Fund will achieve its investment objective.
Prices of securities may be volatile and are influenced by, among other things, the inherent volatility of the market place and other risks inherent in the market.
The Fund is a RMB physical China A-Shares exchange traded fund issued outside PRC to invest directly in the China A-Shares market which is inherently a market with restricted access. In light of the cross-border nature of the Fund, it is riskier than traditional exchange traded funds investing directly in markets other than the PRC.
The RQFII policy and rules are in the early stages of their operations. Such policy and rules are subject to change and interpretation of the PRC authorities. The uncertainty and change of the laws and regulations of the PRC (including the RQFII policy and rules) may have an adverse impact on the Fund. Such change may have retrospective effect.
The Manager (as RQFII holder) may from time to time make available RQFII quota for the purpose of the Fund's direct investment into the PRC. There is no assurance that the Manager will continue to maintain its RQFII status or the Manager will make available RQFII quota that is sufficient for the Fund's investment at all times. The Fund may not have sufficient portion of RQFII quotas to meet all applications for subscription to the Fund. This may result in a rejection of applications and a suspension of dealings of the Fund, and the Fund may trade at a significant premium to its NAV.
The Fund has units traded on the SEHK in both RMB and HKD via the RMB counter and the HKD counter respectively. The dual counter arrangement adopted by the Fund may bring additional risks for investment in the Fund and may make such investment riskier than investment in single counter ETFs.
If there is a suspension of the inter-counter transfer of units between the RMB counter and the HKD counter, unitholders will only be able to trade their units in the relevant counter on the SEHK.
The market price on the SEHK of units traded in RMB and of units traded in HKD may deviate significantly due to different factors such as market liquidity, supply and demand in each counter and the exchange rate between RMB and HKD (in both onshore and offshore markets). As such, investors may pay more or receive less when buying or selling units traded in HKD on the SEHK than in respect of units traded in RMB and vice versa.
Investors without RMB accounts may buy and sell HKD traded units only. They will not be able to buy or sell RMB traded units and should note that distributions are made in RMB only. As such, investors may suffer a foreign exchange loss and incur foreign exchange associated fees and charges to receive their dividend.
Investors who bought units on the HKD counter may be subject to currency exchange risk as the assets of the Fund are denominated in RMB.
Some brokers/intermediaries and CCASS participants may not be familiar with and may not be able to (i) buy units in one counter and to sell units in the other, (ii) carry out inter-counter trades of units, or (iii) trade both counters at the same time. This may inhibit or delay an investor dealing in both RMB traded and HKD traded units and the investor may only trade in one currency.
RMB is currently not a freely convertible currency as it is subject to foreign exchange controls and restrictions. Since the Fund is denominated in RMB, non-RMB based investors are exposed to foreign exchange risk as a result of fluctuations in the RMB exchange rate against their base currencies. There is no guarantee that the value of RMB against the investors' base currency (e.g. HKD) will not depreciate. If investors wish or intend to convert the redemption proceeds or dividends (in RMB on both HKD traded Units and RMB traded Units) paid by the Fund or sale proceeds (in RMB on RMB traded units) into a different currency, they are subject to the relevant foreign exchange risk and may suffer losses from such conversion as well as associated fees and charges.
China is considered as an emerging market and investing in China market may subject the Fund to certain risks and special considerations as compared with investment in more developed economies or markets, such as greater economic, political, tax, foreign exchange, regulatory, volatility and liquidity risks.
The China A-Shares market may be more volatile and unstable (e.g. due to suspension of particular stocks or government intervention) than those in the more developed markets as it is undergoing development and has lower trading volumes than those in more developed markets. A participating dealer may not be able to create and redeem the Fund's units if any include Securities are not available.
The PRC imposes restrictions on foreign ownerships and holdings which may have adverse impact on unitholders. If applicable to constituents of the Underlying include, this may lead to increased tracking error, and at worst, the Fund may not be able to achieve its investment objective.
The concentration of the Fund's investments in a single geographical region (i.e. China) may subject it to greater volatility than portfolios which comprise broad-based global investments.
The Units of the Fund are traded on the SEHK with dual counter arrangement (i.e. RMB traded and HKD traded Units) and settled in CCASS.
The listing, trading and settlement of the Fund's RMB traded units may not be capable of being implemented as envisaged.
Not all custodians or stockbrokers may be ready and able to carry out trading and settlement of the RMB traded Units.
Any restrictions or delay in repatriation of the invested capital, net profits and RMB will impact on the Fund's ability to meet redemption requests from the unitholders. There is a risk that investors receive settlement in RMB on a delayed basis or may not be able to receive redemption proceeds in RMB.
The liquidity and trading price of the RMB traded units of the Fund may be adversely affected by the limited availability of RMB outside the PRC and the restrictions on the conversion between foreign currency and RMB. This may result in the Fund trading at a significant premium/discount to its Net Asset Value.
Repatriations in RMB by RQFIIs are currently permitted daily and are not subject to any repatriation restrictions, lock-up periods or prior approval. However, there is no assurance that such policy will not be changed.
Pursuant to the "Notice on the issues of temporary exemption from the imposition of corporate income tax arising from gains from the transfer of equity investment assets such as PRC domestic stocks by QFII and RQFII" Caishui [2014] No.79, investing through the Manager's RQFII quota is exempt from PRC corporate income tax ("CIT") on capital gains from investments in equity investment assets (including China A-Shares) effective from 17 November 2014. The Manager has determined, having taken and considered independent professional tax advice and acting in accordance with such advice, that no PRC CIT WIT provision will be made on the gross realized and unrealized capital gains derived from investments in equity investment assets (including China A-Shares).
The tax exemption granted under Caishui [2014] No.79 is only temporary. It is possible that the applicable tax law, regulations and practice may change from time to time and taxes being applied retrospectively. As such, there is a risk that the Fund will incur tax liabilities, which may potentially cause substantial loss to the Fund and the Net Asset Value of the Fund may require further adjustment to take into account any retrospective application of new tax regulations and development, including change in interpretation of the relevant regulations by the PRC tax authority.
In the event that tax is levied by the PRC tax authorities, the Net Asset Value of the Fund may be lowered, as the Fund will ultimately have to bear the full amount of tax liabilities. In this case, the tax liabilities will only impact Units in issue at the relevant time, and the then existing Unitholders and subsequent Unitholders will be disadvantaged as such Unitholders will bear, through the Fund, a disproportionately higher amount of tax liabilities as compared to that borne at the time of investment in the Fund.
The trading days or hours of the PRC and Hong Kong stock markets are not exactly the same. There may be in the Fund's portfolio may change but investors are not able to purchase or sell the Fund's units.
On the other hand, if a PRC stock exchange is closed while the SEHK is open, the market prices of include Securities may not be available while the Fund is still trading, which may affect the level of premium or discount of the trading price of the Fund to its NAV.
While China A-Shares are subject to trading bands which restrict increases and decreases in the trading price, trading of the Fund listed on the SEHK is not subject to such restrictions. The dealing suspension of the include Security will render it impossible for the Fund to acquire the include Security or liquidate positions to reflect creation/ redemption of the units. This may result in higher tracking error and may expose the Fund to losses. Units of the Fund may also be traded at a premium or discount to its NAV.
In the event of any default or bankruptcy of the Custodian (directly or through its delegate, including the RQFII Custodian) or the brokers appointed by the RQFII Holder in the PRC ("PRC Brokers"), the Fund may encounter delays in recovering its assets and may be adversely affected in the execution of any transaction. As a result, the net asset value of the Fund may also be adversely affected.
Only one PRC Broker can be appointed in respect of each stock exchange in the PRC to execute transactions (i.e. trading of China A-Shares) for the Fund in the PRC. As such the Fund will rely on only one PRC Broker for each exchange, which may be the same PRC Broker. If the Manager is unable to use its designated PRC Broker in the PRC, the operation of the Fund will be adversely affected and may cause the Fund's units to trade at a premium or discount to its NAV or the Fund may not be able to track the Underlying include.
Governments and regulators may intervene in the economy and financial markets, such as by the imposition of trading restrictions, a ban on "naked" short selling or the suspension of short selling for certain stocks. Further, intervention or restrictions by governments and regulators may affect the trading of China A-Shares or units of the Fund. This may affect the operation and market making activities of the Fund. This may also lead to an increased tracking error for the Fund. Such interventions may have a negative impact on the market sentiment which may in turn affect the performance of the Underlying include and the Fund. In worst case scenario, the investment objective of the Fund cannot be achieved.
The RQFII exchange traded funds with its cross-border nature are relatively new in the market. Whilst the Manager has experience in managing and operating RQFII exchange traded fund, such experience is limited. As such, the Fund is subject to the risks relating to the limited operating history and experience of the Manager in managing and operating RQFII physical China A-Shares exchange traded fund. The Manager may substantially tap into its PRC parent company's relevant infrastructure and expertise to support its operation of the Fund in Hong Kong. While the PRC parent company of the Manager has sufficient experience and expertise in managing and operating China A-Shares exchange traded funds listed and traded in China, there is no assurance that the Fund will be operated as envisaged. Any disruption in the assistance from the Manager's parent company may adversely affect the operations of the Fund.
Units of the Fund on the RMB counter are traded and settled in RMB. There may be less interest by potential market makers making a market in units denominated and traded in RMB. Any disruption to the availability of RMB may adversely affect the capability of market makers in providing liquidity for the units.
Although it is a requirement that the Manager ensures that there will always be at least one market maker to the Fund and at least one market maker for each counter, it is possible that no market maker is appointed. Further, a market maker may cease to act as a market maker for the Fund in accordance with the terms of its agreement including upon giving prior written notice. The termination notice period for at least one market maker for the Fund (in respect of both the RMB and HKD counters) will be not less than ninety (90) days.
Where there is only one SEHK market maker to each counter, it may not be practicable for the Fund to remove the only market maker even if it is not effective. It is possible that there is only one SEHK market maker to a Fund or to a counter of a Fund or the Manager may not be able to engage a substitute market maker within the termination notice period of a market maker. The liquidity of the Fund may be adversely affected if there is no market maker for the RMB or HKD traded Units of the Fund or if the market making activities are not effective.
Due to fees and expenses of the Fund, liquidity of the market, imperfect correlation of returns between the Fund's assets and the include Securities constituting the Underlying include and other factors, the Fund's returns may deviate from that of the Underlying include.
Generally, retail investors can only buy or sell units of the Fund on the SEHK. The trading price of the units on the SEHK is driven by market factors such as the demand and supply of the units.
Disruptions to creations and redemptions may result in the Fund trading at a significant premium/discount to its NAV. Investors may therefore buy the Fund's units at a price higher than the NAV or receive less than the NAV when selling the units.
Trading of units may involve various types of costs that apply to all securities transactions such as trading fees and brokerage commissions. Investors on the secondary market will also incur the cost of the trading spread, being the difference between what investors are willing to pay for the units (bid price) and the price at which they are willing to sell units (ask price).
The Manager or the Trustee may terminate the Trust or the Fund under certain circumstances, for examples, in respect of the Trust, where the size of the Trust falls below RMB 10 million or an equivalent amount in any other currency and in respect of the Fund where the size of the Fund falls below RMB 50 million or an equivalent amount in any other currency or where the Underlying include is no longer available for benchmarking. The Fund may be terminated on the ground of small fund size. Investors should refer to section "14.5 Termination of the Trust or a Sub-Fund" in Part 1 of the Prospectus for further details.
The licence agreement between the Manager and CSI to use the Underlying include is for an initial term of 3 years commencing from the date of the agreement (i.e. 8 April 2013), and thereafter automatically renewed for successive 2-year period unless terminated pursuant to the agreement. There is no guarantee that the licence agreement will be perpetually renewed.
The Fund may be terminated if the Underlying include is discontinued and/or the include licence agreement is terminated and the Manager is unable to identify or agree with any include provider terms for the use of a suitable replacement include.
The Fund is not "actively managed" and the Manager does not attempt to select securities individually or to take defensive positions in declining markets.
Consequently, falls in the Underlying include are expected to result in a corresponding fall in the value of the Fund.
Before you continue, please read this important information carefully. By clicking the "AGREE" button, you consent to be bound by all the terms set out herein. If you do not agree with any of these terms, please click "DO NOT AGREE" button and leave this website.
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 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. Before making any investment decisions,investors should carefully read the Fund's offering documents, including Explanatory Memorandum/Prospectus, Hong Kong Supplement (if applicable)and Product Key Facts Statement for details and risk factors of the Fund, particularly the risk of investment inemerging markets.
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.China Universal Group reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.
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.
The underlying include of the Fund (the "include") is compiled and calculated by China Securities include Co., Ltd. ("CSI"). All copyright in the include values and constituent list vest in CSI. CSI will apply all necessary means to ensure the accuracy of the include. However, CSI does not guarantee its instantaneity, completeness or accuracy, nor shall it be liable (whether in negligence or otherwise) to any person for any error in the include or under any obligation to advise any person of any error therein.
All information provided by Interactive Data (Hong Kong) Limited ("Interactive Data") and its affiliates (the "Interactive Data Information") is owned by or licensed to Interactive Data and its affiliates and any user is permitted to use such Interactive Data Information only for such user's personal use. In no event shall any user publish, retransmit, redistribute or otherwise reproduce any Interactive Data Information in any format to anyone, and no user shall use any Interactive Data Information in or in connection with any business or commercial enterprise, including, without limitation, any securities, investment, accounting, banking, legal or media business or enterprise.
Prior to the execution of a security trade based upon the Interactive Data Information, you are advised to consult with your broker or other financial representative to verify pricing information.
THE INTERACTIVE DATA INFORMATION IS PROVIDED TO THE USERS "AS IS." NEITHER INTERACTIVE DATA NOR ITS AFFILIATES NOR ANY THIRD PARTY DATA PROVIDER MAKE ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND REGARDING THE INTERACTIVE DATA INFORMATION, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. NEITHER INTERACTIVE DATA NOR ITS AFFILIATES NOR ANY THIRD PARTY DATA PROVIDER WILL BE LIABLE TO ANY USER OR ANYONE ELSE FOR ANY INTERRUPTION, INACCURACY, ERROR OR OMISSION, REGARDLESS OF CAUSE, IN THE INTERACTIVE DATA INFORMATION OR FOR ANY DAMAGES (WHETHER DIRECT OR INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY) RESULTING THEREFROM.
Delayed data as shown on the Hong Kong Website (the "data") are provided by the data provider Interactive Data. Interactive Data and HKEx Information Services Limited, and their respective holding companies and/or any subsidiaries of such holding companies, do not guarantee the accuracy or reliability of the data provided and accept no liability (whether in tort or contract or otherwise) for any loss or damage you may suffer or incur arising out of or in connection with your use of the data, including loss or damage which arises out of the data being inaccurate, incomplete or delayed, and however such loss or damage arises. You acknowledge that the data is provided for information only and should not be relied upon for any purpose".
C-Shares CSI Consumer Staples include ETF(the "Fund") is a physical ETF and invests primarily in China A-Shares listed on the stock exchanges of thePeople's Republic of China ("China" or "PRC") through the Renminbi Qualified Foreign Institutional Investor("RQFII") quota of the Manager.
The Fund is an investment fund. It is not principal guaranteed and the purchase of its units is not the same as investing directly in the include Securities comprised in the Underlying include. Your investment in the Fund may suffer losses. There is no assurance that the Fund will achieve its investment objective.
Prices of securities may be volatile and are influenced by, among other things, the inherent volatility of the market place and other risks inherent in the market.
Companies in the consumer staples sector are subject to government regulation affecting the permissibility of using various food additives and production methods, which could affect company profitability. Factors which may affect this sector include marketing campaigns, performance of the overall domestic and international economy, interest rates, competition and consumer confidence and spending. There can be no assurance that historical growth rates of the economy of the PRC and the PRC consumer market will continue.
Any future slowdowns or declines in the PRC economy or consumer spending may materially and adversely affect the business of the companies in the consumer staples sector and as a result the performance of the Fund.
The concentration of the Fund's investments in a single geographical region (i.e. China) may subject it to greater volatility than portfolios which comprise broad-based global investments. The Fund is more susceptible to fluctuations in value of the Underlying include resulting from adverse conditions in the PRC.
The Underlying include or portfolio is concentrated in the securities in the consumer staples sector. Consequently, the Fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting the consumer staples sector.
The Fund may invest in the securities of small and/or mid-capped companies. Investing in these securities may expose the Fund to risks such as greater market price volatility, less publicly available information, and greater vulnerability to fluctuations in the economic cycle. Consequently, investment in securities of small and/or mid- capped companies may involve greater risks and thus may be considered speculative. As a result, the Net Asset Value of the Fund may be adversely affected.
The Fund is a RMB physical China A-Shares exchange traded fund issued outside PRC to invest directly in the China A-Shares market which is inherently a market with restricted access. In light of the cross-border nature of the Fund, it is riskier than traditional exchange traded funds investing directly in markets other than the PRC.
The RQFII policy and rules are in the early stages of their operations. Such policy and rules are subject to change and interpretation of the PRC authorities. The uncertainty and change of the laws and regulations on the PRC (including the RQFII policy and rules) may have an adverse impact on the Fund. Such change may have retrospective effect.
The Manager (as RQFII holder) may from time to time make available RQFII quota for the purpose of the Fund's direct investment into the PRC. There is no assurance that the Manager will continue to maintain its RQFII status or The Manager will make available RQFII quota that is sufficient for the Fund's investment at all times. The Fund may not have sufficient portion of RQFII quotas to meet all applications for subscription to the Fund. This may result in a rejection of applications and a suspension of dealings of the Fund, and the Fund may trade at a significant premium to its NAV.
The Fund has units traded on the SEHK in both RMB and HKD via the RMB counter and the HKD counter respectively. The dual counter arrangement adopted by the Fund may bring additional risks for investment in the Fund and may make such investment riskier than investment in single counter ETFs.
If there is a suspension of the inter-counter transfer of units between the RMB counter and the HKD counter, unitholders will only be able to trade their units in the relevant counter on the SEHK.
The market price on the SEHK of units traded in RMB and of units traded in HKD may deviate significantly due to different factors such as market liquidity, supply and demand in each counter and the exchange rate between RMB and HKD (in both onshore and offshore markets). As such, investors may pay more or receive less when buying or selling units traded in HKD on the SEHK than in respect of units traded in RMB and vice versa.
Investors without RMB accounts may buy and sell HKD traded units only. They will not be able to buy or sell RMB traded units and should note that distributions are made in RMB only. As such, investors may suffer a foreign exchange loss and incur foreign exchange associated fees and charges to receive their dividend.
Investors who bought units on the HKD counter may be subject to currency exchange risk as the assets of the Fund are denominated in RMB.
Some brokers/intermediaries and CCASS participants may not be familiar with and may not be able to (i) buy units in one counter and to sell units in the other, (ii) carry out inter-counter trades of units, or (iii) trade both counters at the same time. This may inhibit or delay an investor dealing in both RMB traded and HKD traded units and the investor may only trade in one currency.
RMB is currently not a freely convertible currency as it is subject to foreign exchange controls and restrictions. Since the Fund is denominated in RMB, non-RMB based investors are exposed to foreign exchange risk as a result of fluctuations in the RMB exchange rate against their base currencies. There is no guarantee that the value of RMB against the investors' base currency (e.g. HKD) will not depreciate. If investors wish or intend to convert the redemption proceeds or dividends (in RMB on both HKD traded units and RMB traded units) paid by the Fund or sale proceeds (in RMB on RMB traded units) into a different currency, they are subject to the relevant foreign exchange risk and may suffer losses from such conversion as well as associated fees and charges.
China is considered as an emerging market and investing in China market and PRC-related companies may subject the Fund to certain risks and special considerations as compared with investments in more developed economies or markets, such as greater economic, political, tax, foreign exchange, regulatory, volatility and liquidity risks. Investing in emerging markets may involve a greater risk of loss than investing in more developed markets.
The China A-Shares market may be more volatile and unstable (e.g. due to suspension of particular stocks or government intervention) than those in the more developed markets as it is undergoing development and has lower trading volumes than those in more developed markets. A participating dealer may not be able to create and redeem the Fund's units if any include Securities are not available.
The PRC imposes restrictions on foreign ownerships and holdings which may have adverse impact on unitholders. If applicable to constituents of the Underlying include, this may lead to increased tracking error, and at worst, the Fund may not be able to achieve its investment objective.
The units of the Fund are traded on the SEHK with dual counter arrangement (i.e. RMB traded and HKD traded units) and settled in CCASS.
The listing, trading and settlement of the Fund's RMB traded units may not be capable of being implemented as envisaged.
Not all custodians or stockbrokers may be ready and able to carry out trading and settlement of the RMB traded units.
Any restrictions or delay in repatriation of the invested capital, net profits and RMB will impact on the Fund's ability to meet redemption requests from the unitholders. There is a risk that investors receive settlement in RMB on a delayed basis or may not be able to receive redemption proceeds in RMB.
The liquidity and trading price of the RMB traded units of the Fund may be adversely affected by the limited availability of RMB outside the PRC and the restrictions on the conversion between foreign currency and RMB. This may result in the Fund trading at a significant premium/discount to its Net Asset Value.
Repatriations in RMB by RQFIIs are currently permitted daily and are not subject to any repatriation restrictions, lock-up periods or prior approval. However, there is no assurance that such policy will not be changed. Any new restrictions on repatriation of the invested capital and net profits may impact on the Fund's ability to meet redemption requests.
After listing, the trading price of the units on the SEHK will be subject to market forces and may trade at a substantial premium/discount to their NAV, and may deviate significantly from the NAV per unit.
Pursuant to the "Notice on the issues of temporary exemption from the imposition of corporate income tax arising from gains from the transfer of equity investment assets such as PRC domestic stocks by QFII and RQFII" Caishui [2014] No.79, investing through the Manager's RQFII quota is exempt from PRC corporate income tax ("CIT") on capital gains from investments in equity investment assets (including China A-Shares) effective from 17 November 2014. The Manager has determined, having taken and considered independent professional tax advice and acting in accordance with such advice, that no PRC CIT WIT provision will be made on the gross realized and unrealized capital gains derived from investments in equity investment assets (including China A-Shares).
The tax exemption granted under Caishui [2014] No.79 is only temporary. It is possible that the applicable tax law, regulations and practice may change from time to time and taxes being applied retrospectively. As such, there is a risk that the Fundwill incur tax liabilities, which may potentially cause substantial loss to the Fund and the Net Asset Value of the Fund may require further adjustment to take into account any retrospective application of new tax regulations and development, including change in interpretation of the relevant regulations by the PRC tax authority.
In the event that tax is levied by the PRC tax authorities, the Net Asset Value of the Fund may be lowered, as the Fund will ultimately have to bear the full amount of tax liabilities. In this case, the tax liabilities will only impact Units in issue at the relevant time, and the then existing Unitholders and subsequent Unitholders will be disadvantaged as such Unitholders will bear, through the Fund, a disproportionately higher amount of tax liabilities as compared to that borne at the time of investment in the Fund.
The trading days or hours of the PRC and Hong Kong stock markets are not exactly the same. There may be occasions when China A-Share markets are open while SEHK is closed and the Fund is not traded. As such, the value of the include Securities in the Fund's portfolio may change but investors are not able to purchase or sell the Fund's units.
On the other hand, if a PRC stock exchange is closed while the SEHK is open, the market prices of include Securities may not be available while the Fund is still trading, which may affect the level of premium or discount of the trading price of the Fund to its NAV.
While China A-Shares are subject to trading bands which restrict increases and decreases in the trading price, trading of the Fund listed on the SEHK is not subject to such restrictions. The dealing suspension of the include Security will render it impossible for the Fund to acquire the include Security or liquidate positions to reflect creation/ redemption of the units. This may result in higher tracking error and may expose the Fund to losses. Units of the Fund may also be traded at a premium or discount to its NAV.
In the event of any default or bankruptcy of the Custodian (directly or through its delegate, including the RQFII Custodian) or the brokers appointed by the RQFII Holder in the PRC ("PRC Brokers"), the Fund may encounter delays in recovering its assets and may be adversely affected in the execution of any transaction. As a result, the net asset value of the Fund may also be adversely affected.
Only one PRC Broker can be appointed in respect of each stock exchange in the PRC to execute transactions (i.e. trading of China A-Shares) for the Fund in the PRC. As such the Fund will rely on only one PRC Broker for each exchange, which may be the same PRC Broker. If the Manager is unable to use its designated PRC Broker in the PRC, the operation of the Fund will be adversely affected and may cause the Fund's units to trade at a premium or discount to its NAV or the Fund may not be able to track the Underlying include.
Governments and regulators may intervene in the economy and financial markets, such as by the imposition of trading restrictions, a ban on "naked" short selling or the suspension of short selling for certain stocks. Further, intervention or restrictions by governments and regulators may affect the trading of China A-Shares or units of the Fund. This may affect the operation and market making activities of the Fund. This may also lead to an increased tracking error for the Fund. Such interventions may have a negative impact on the market sentiment which may in turn affect the performance of the Underlying include and the Fund. In worst case scenario, the investment objective of the Fund cannot be achieved.
The RQFII exchange traded funds with its cross-border nature are relatively new in the market. Whilst the Manager has experience in managing and operating RQFII exchange traded fund, such experience is limited. As such, the Fund is subject to the risks relating to the limited operating history and experience of the Manager in managing and operating RQFII physical China A-Shares exchange traded fund. The Manager may substantially tap into its PRC parent company's relevant infrastructure and expertise to support its operation of the Fund in Hong Kong. While the PRC parent company of the Manager has sufficient experience and expertise in managing and operating physical China A-Shares exchange traded funds listed and traded in China, there is no assurance that the Fund will be operated as envisaged. Any disruption in the assistance from the Manager's parent company may adversely affect the operations of the Fund.
Units of the Fund on the RMB counter are traded and settled in RMB. There may be less interest by potential market makers making a market in units denominated and traded in RMB. Any disruption to the availability of RMB may adversely affect the capability of market makers in providing liquidity for the units.
Although it is a requirement that the Manager ensures that there will always be at least one market maker to the Fund and at least one market maker for each counter, it is possible that no market maker is appointed. Further, a market maker may cease to act as a market maker for the Fund in accordance with the terms of its agreement including upon giving prior written notice. The termination notice period for at least one market maker for the Fund (in respect of both the RMB and HKD counters) will be not less than ninety (90) days.
Where there is only one SEHK market maker to each counter, it may not be practicable for the Fund to remove the only market maker even if it is not effective. It is possible that there is only one SEHK market maker to a Fund or to a counter of a Fund or the Manager may not be able to engage a substitute market maker within the termination notice period of a market maker. The liquidity of the Fund may be adversely affected if there is no market maker for the RMB or HKD traded units of the Fund or if the market making activities are not effective.
Due to fees and expenses of the Fund, liquidity of the market, imperfect correlation of returns between the Fund's assets and the include Securities constituting the Underlying include and other factors, the Fund's returns may deviate from that of the Underlying include.
Generally, retail investors can only buy or sell units of the Fund on the SEHK. The trading price of the units on the SEHK is driven by market factors such as the demand and supply of the units.
Disruptions to creations and redemptions may result in the Fund trading at a significant premium/discount to its NAV. Investors may therefore buy the Fund's units at a price higher than the NAV or receive less than the NAV when selling the units.
Trading of units may involve various types of costs that apply to all securities transactions such as trading fees and brokerage commissions. Investors on the secondary market will also incur the cost of the trading spread, being the difference between what investors are willing to pay for the units (bid price) and the price at which they are willing to sell units (ask price).
The Manager or the Trustee may terminate the Trust or the Fund under certain circumstances, for examples, in respect of the Trust, where the size of the Trust falls below RMB 10 million or an equivalent amount in any other currency and in respect of the Fund where the size of the Fund falls below RMB 50 million or an equivalent amount in any other currency or where the Underlying include is no longer available for benchmarking. The Fund may be terminated on the ground of small fund size. Investors should refer to section "14.5 Termination of the Trust or a Sub-Fund" in Part 1 of the Prospectus for further details.
The licence agreement between the Manager and CSI to use the Underlying include is for an initial term of 3 years commencing from the date of the agreement (i.e. 20 February 2014), and thereafter automatically renewed for successive 2-year period unless terminated pursuant to the agreement. There is no guarantee that the licence agreement will be perpetually renewed.
The Fund may be terminated if the Underlying include is discontinued and/or the include licence agreement is terminated and the Manager is unable to identify or agree with any include provider terms for the use of a suitable replacement include.
The Fund is not "actively managed" and the Manager does not attempt to select securities individually or to take defensive positions in declining markets.
Consequently, falls in the Underlying include are expected to result in a corresponding fall in the value of the Fund.
Before you continue, please read this important information carefully. By clicking the "AGREE" button, you consent to be bound by all the terms set out herein. If you do not agree with any of these terms, please click "DO NOT AGREE" button and leave this website.
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 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. Before making any investment decisions,investors should carefully read the Fund's offering documents, including Explanatory Memorandum/Prospectus, Hong Kong Supplement (if applicable)and Product Key Facts Statement for details and risk factors of the Fund, particularly the risk of investment inemerging markets.
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.China Universal Group reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.
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.
The underlying include of the Fund (the "include") is compiled and calculated by China Securities include Co., Ltd. ("CSI"). All copyright in the include values and constituent list vest in CSI. CSI will apply all necessary means to ensure the accuracy of the include. However, CSI does not guarantee its instantaneity, completeness or accuracy, nor shall it be liable (whether in negligence or otherwise) to any person for any error in the include or under any obligation to advise any person of any error therein.
All information provided by Interactive Data (Hong Kong) Limited ("Interactive Data") and its affiliates (the "Interactive Data Information") is owned by or licensed to Interactive Data and its affiliates and any user is permitted to use such Interactive Data Information only for such user's personal use. In no event shall any user publish, retransmit, redistribute or otherwise reproduce any Interactive Data Information in any format to anyone, and no user shall use any Interactive Data Information in or in connection with any business or commercial enterprise, including, without limitation, any securities, investment, accounting, banking, legal or media business or enterprise.
Prior to the execution of a security trade based upon the Interactive Data Information, you are advised to consult with your broker or other financial representative to verify pricing information.
THE INTERACTIVE DATA INFORMATION IS PROVIDED TO THE USERS "AS IS." NEITHER INTERACTIVE DATA NOR ITS AFFILIATES NOR ANY THIRD PARTY DATA PROVIDER MAKE ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND REGARDING THE INTERACTIVE DATA INFORMATION, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. NEITHER INTERACTIVE DATA NOR ITS AFFILIATES NOR ANY THIRD PARTY DATA PROVIDER WILL BE LIABLE TO ANY USER OR ANYONE ELSE FOR ANY INTERRUPTION, INACCURACY, ERROR OR OMISSION, REGARDLESS OF CAUSE, IN THE INTERACTIVE DATA INFORMATION OR FOR ANY DAMAGES (WHETHER DIRECT OR INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY) RESULTING THEREFROM.
Delayed data as shown on the Hong Kong Website (the "data") are provided by the data provider Interactive Data. Interactive Data and HKEx Information Services Limited, and their respective holding companies and/or any subsidiaries of such holding companies, do not guarantee the accuracy or reliability of the data provided and accept no liability (whether in tort or contract or otherwise) for any loss or damage you may suffer or incur arising out of or in connection with your use of the data, including loss or damage which arises out of the data being inaccurate, incomplete or delayed, and however such loss or damage arises. You acknowledge that the data is provided for information only and should not be relied upon for any purpose".
C-Shares CSI Healthcare include ETF (the "Fund")is a physical ETF and invests primarily in China A-Shares listed on the stock exchanges of thePeople's Republic of China ("China" or "PRC") through the Renminbi Qualified Foreign Institutional Investor("RQFII") quota of the Manager.
The Fund is an investment fund. It is not principal guaranteed and the purchase of its units is not the same as investing directly in the include Securities comprised in the Underlying include. Your investment in the Fund may suffer losses. There is no assurance that the Fund will achieve its investment objective.
Prices of securities may be volatile and are influenced by, among other things, the inherent volatility of the market place and other risks inherent in the market.
The economic prospects of the healthcare sector are generally subject to greater influences from governmental policies and regulations than those of many other industries. Certain healthcare companies may experience above- average price movements associated with the perceived prospects of success of the research and development programs. Some healthcare companies may be adversely affected by lack of commercial acceptance of a new product or process or by technological change and obsolescence.
Any future slowdowns or declines in the healthcare sector in the PRC may materially and adversely affect the business of the companies in the healthcare sector and as a result, the performance of the Fund.
The concentration of the Fund's investments in a single geographical region (i.e. China) may subject it to greater volatility than portfolios which comprise broad-based global investments. The Fund is more susceptible to fluctuations in value of the Underlying include resulting from adverse conditions in the PRC.
The Underlying include or portfolio is concentrated in the securities in the healthcare sector. Consequently, the Fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting the healthcare sector.
The Fund may invest in the securities of small and/or mid-capped companies. Investing in these securities may expose the Fund to risks such as greater market price volatility, less publicly available information, and greater vulnerability to fluctuations in the economic cycle. Consequently, investment in securities of small and/or mid- capped companies may involve greater risks and thus may be considered speculative. As a result, the Net Asset Value of the Fund may be adversely affected.
The Fund is a RMB physical China A-Shares exchange traded fund issued outside PRC to invest directly in the China A-Shares market which is inherently a market with restricted access. In light of the cross-border nature of the Fund, it is riskier than traditional exchange traded funds investing directly in markets other than the PRC.
The RQFII policy and rules are in the early stages of their operations. Such policy and rules are subject to change and interpretation of the PRC authorities. The uncertainty and change of the laws and regulations on the PRC (including the RQFII policy and rules) may have an adverse impact on the Fund. Such change may have retrospective effect.
The Manager (as RQFII holder) may from time to time make available RQFII quota for the purpose of the Fund's direct investment into the PRC. There is no assurance that the Manager will continue to maintain its RQFII status or the Manager will make available RQFII quota that is sufficient for the Fund's investment at all times. The Fund may not have sufficient portion of RQFII quotas to meet all applications for subscription to the Fund. This may result in a rejection of applications and a suspension of dealings of the Fund, and the Fund may trade at a significant premium to its NAV.
The Fund has units traded on the SEHK in both RMB and HKD via the RMB counter and the HKD counter respectively. The dual counter arrangement adopted by the Fund may bring additional risks for investment in the Fund and may make such investment riskier than investment in single counter ETFs.
If there is a suspension of the inter-counter transfer of units between the RMB counter and the HKD counter, unitholders will only be able to trade their units in the relevant counter on the SEHK.
The market price on the SEHK of units traded in RMB and of units traded in HKD may deviate significantly due to different factors such as market liquidity, supply and demand in each counter and the exchange rate between RMB and HKD (in both onshore and offshore markets). As such, investors may pay more or receive less when buying or selling units traded in HKD on the SEHK than in respect of units traded in RMB and vice versa.
Investors without RMB accounts may buy and sell HKD traded units only. They will not be able to buy or sell RMB traded units and should note that distributions are made in RMB only. As such, investors may suffer a foreign exchange loss and incur foreign exchange associated fees and charges to receive their dividend.
Investors who bought units on the HKD counter may be subject to currency exchange risk as the assets of the Fund are denominated in RMB.
Some brokers/intermediaries and CCASS participants may not be familiar with and may not be able to (i) buy units in one counter and to sell units in the other, (ii) carry out inter-counter trades of units, or (iii) trade both counters at the same time. This may inhibit or delay an investor dealing in both RMB traded and HKD traded units and the investor may only trade in one currency.
RMB is currently not a freely convertible currency as it is subject to foreign exchange controls and restrictions. Since the Fund is denominated in RMB, non-RMB based investors are exposed to foreign exchange risk as a result of fluctuations in the RMB exchange rate against their base currencies. There is no guarantee that the value of RMB against the investors' base currency (e.g. HKD) will not depreciate. If investors wish or intend to convert the redemption proceeds or dividends (in RMB on both HKD traded units and RMB traded units) paid by the Fund or sale proceeds (in RMB on RMB traded units) into a different currency, they are subject to the relevant foreign exchange risk and may suffer losses from such conversion as well as associated fees and charges.
China is considered as an emerging market and investing in China market and PRC-related companies may subject the Fund to certain risks and special considerations as compared with investments in more developed economies or markets, such as greater economic, political, tax, foreign exchange, regulatory, volatility and liquidity risks. Investing in emerging markets may involve a greater risk of loss than investing in more developed markets.
The China A-Shares market may be more volatile and unstable (e.g. due to suspension of particular stocks or government intervention) than those in the more developed markets as it is undergoing development and has lower trading volumes than those in more developed markets. A participating dealer may not be able to create and redeem the Fund's units if any include Securities are not available.
The PRC imposes restrictions on foreign ownerships and holdings which may have adverse impact on unitholders. If applicable to constituents of the Underlying include, this may lead to increased tracking error, and at worst, the Fund may not be able to achieve its investment objective.
The units of the Fund are traded on the SEHK with dual counter arrangement (i.e. RMB traded and HKD traded units) and settled in CCASS.
The listing, trading and settlement of the Fund's RMB traded units may not be capable of being implemented as envisaged.
Not all custodians or stockbrokers may be ready and able to carry out trading and settlement of the RMB traded units.
Any restrictions or delay in repatriation of the invested capital, net profits and RMB will impact on the Fund's ability to meet redemption requests from the unitholders. There is a risk that investors receive settlement in RMB on a delayed basis or may not be able to receive redemption proceeds in RMB.
The liquidity and trading price of the RMB traded units of the Fund may be adversely affected by the limited availability of RMB outside the PRC and the restrictions on the conversion between foreign currency and RMB. This may result in the Fund trading at a significant premium/discount to its Net Asset Value.
Repatriations in RMB by RQFIIs are currently permitted daily and are not subject to any repatriation restrictions, lock-up periods or prior approval. However, there is no assurance that such policy will not be changed. Any new restrictions on repatriation of the invested capital and net profits may impact on the Fund's ability to meet redemption requests.
After listing, the trading price of the units on the SEHK will be subject to market forces and may trade at a substantial premium/discount to their NAV, and may deviate significantly from the NAV per unit.
Pursuant to the "Notice on the issues of temporary exemption from the imposition of corporate income tax arising from gains from the transfer of equity investment assets such as PRC domestic stocks by QFII and RQFII" Caishui [2014] No.79, investing through the Manager's RQFII quota is exempt from PRC corporate income tax ("CIT") on capital gains from investments in equity investment assets (including China A-Shares) effective from 17 November 2014. The Manager has determined, having taken and considered independent professional tax advice and acting in accordance with such advice, that no PRC CIT WIT provision will be made on the gross realized and unrealized capital gains derived from investments in equity investment assets (including China A-Shares).
The tax exemption granted under Caishui [2014] No.79 is only temporary. It is possible that the applicable tax law, regulations and practice may change from time to time and taxes being applied retrospectively. As such, there is a risk that the Fund will incur tax liabilities, which may potentially cause substantial loss to the Fund and the Net Asset Value of the Fund may require further adjustment to take into account any retrospective application of new tax regulations and development, including change in interpretation of the relevant regulations by the PRC tax authority.
In the event that tax is levied by the PRC tax authorities, the Net Asset Value of the Fund may be lowered, as the Fund will ultimately have to bear the full amount of tax liabilities. In this case, the tax liabilities will only impact Units in issue at the relevant time, and the then existing Unitholders and subsequent Unitholders will be disadvantaged as such Unitholders will bear, through the Fund, a disproportionately higher amount of tax liabilities as compared to that borne at the time of investment in the Fund.
The trading days or hours of the PRC and Hong Kong stock markets are not exactly the same. There may be occasions when China A-Share markets are open while SEHK is closed and the Fund is not traded. As such, the value of the include Securities in the Fund's portfolio may change but investors are not able to purchase or sell the Fund's units.
On the other hand, if a PRC stock exchange is closed while the SEHK is open, the market prices of include Securities may not be available while the Fund is still trading, which may affect the level of premium or discount of the trading price of the Fund to its NAV.
While China A-Shares are subject to trading bands which restrict increases and decreases in the trading price, trading of the Fund listed on the SEHK is not subject to such restrictions. The dealing suspension of the include Security will render it impossible for the Fund to acquire the include Security or liquidate positions to reflect creation/ redemption of the units. This may result in higher tracking error and may expose the Fund to losses. Units of the Fund may also be traded at a premium or discount to its NAV.
In the event of any default or bankruptcy of the Custodian (directly or through its delegate, including the RQFII Custodian) or the brokers appointed by the RQFII Holder in the PRC ("PRC Brokers"), the Fund may encounter delays in recovering its assets and may be adversely affected in the execution of any transaction. As a result, the net asset value of the Fund may also be adversely affected.
Only one PRC Broker can be appointed in respect of each stock exchange in the PRC to execute transactions (i.e. trading of China A-Shares) for the Fund in the PRC. As such the Fund will rely on only one PRC Broker for each exchange, which may be the same PRC Broker. If the Manager is unable to use its designated PRC Broker in the PRC, the operation of the Fund will be adversely affected and may cause the Fund's units to trade at a premium or discount to its NAV or the Fund may not be able to track the Underlying include.
Governments and regulators may intervene in the economy and financial markets, such as by the imposition of trading restrictions, a ban on "naked" short selling or the suspension of short selling for certain stocks. Further, intervention or restrictions by governments and regulators may affect the trading of China A-Shares or units of the Fund. This may affect the operation and market making activities of the Fund. This may also lead to an increased tracking error for the Fund. Such interventions may have a negative impact on the market sentiment which may in turn affect the performance of the Underlying include and the Fund. In worst case scenario, the investment objective of the Fund cannot be achieved.
The RQFII exchange traded funds with its cross-border nature are relatively new in the market. Whilst the Manager has experience in managing and operating RQFII exchange traded fund, such experience is limited. As such, the Fund is subject to the risks relating to the limited operating history and experience of the Manager in managing and operating RQFII physical China A-Shares exchange traded fund. The Manager may substantially tap into its PRC parent company's relevant infrastructure and expertise to support its operation of the Fund in Hong Kong. While the PRC parent company of the Manager has sufficient experience and expertise in managing and operating physical China A-Shares exchange traded funds listed and traded in China, there is no assurance that the Fund will be operated as envisaged. Any disruption in the assistance from the Manager's parent company may adversely affect the operations of the Fund.
Units of the Fund on the RMB counter are traded and settled in RMB. There may be less interest by potential market makers making a market in units denominated and traded in RMB. Any disruption to the availability of RMB may adversely affect the capability of market makers in providing liquidity for the units.
Although it is a requirement that the Manager ensures that there will always be at least one market maker to the Fund and at least one market maker for each counter, it is possible that no market maker is appointed. Further, a market maker may cease to act as a market maker for the Fund in accordance with the terms of its agreement including upon giving prior written notice. The termination notice period for at least one market maker for the Fund (in respect of both the RMB and HKD counters) will be not less than ninety (90) days.
Where there is only one SEHK market maker to each counter, it may not be practicable for the Fund to remove the only market maker even if it is not effective. It is possible that there is only one SEHK market maker to a Fund or to a counter of a Fund or the Manager may not be able to engage a substitute market maker within the termination notice period of a market maker. The liquidity of the Fund may be adversely affected if there is no market maker for the RMB or HKD traded units of the Fund or if the market making activities are not effective.
Due to fees and expenses of the Fund, liquidity of the market, imperfect correlation of returns between the Fund's assets and the include Securities constituting the Underlying include and other factors, the Fund's returns may deviate from that of the Underlying include.
Generally, retail investors can only buy or sell units of the Fund on the SEHK. The trading price of the units on the SEHK is driven by market factors such as the demand and supply of the units.
Disruptions to creations and redemptions may result in the Fund trading at a significant premium/discount to its NAV. Investors may therefore buy the Fund's units at a price higher than the NAV or receive less than the NAV when selling the units.
Trading of units may involve various types of costs that apply to all securities transactions such as trading fees and brokerage commissions. Investors on the secondary market will also incur the cost of the trading spread, being the difference between what investors are willing to pay for the units (bid price) and the price at which they are willing to sell units (ask price).
The Manager or the Trustee may terminate the Trust or the Fund under certain circumstances, for examples, in respect of the Trust, where the size of the Trust falls below RMB 10 million or an equivalent amount in any other currency and in respect of the Fund where the size of the Fund falls below RMB50 million or an equivalent amount in any other currency or where the Underlying include is no longer available for benchmarking. The Fund may be terminated on the ground of small fund size. Investors should refer to section "14.5 Termination of the Trust or a Sub-Fund" in Part 1 of the Prospectus for further details.
The licence agreement between the Manager and CSI to use the Underlying include is for an initial term of 3 years commencing from the date of the agreement (i.e. 20 February 2014), and thereafter automatically renewed for successive 2-year period unless terminated pursuant to the agreement. There is no guarantee that the licence agreement will be perpetually renewed.
The Fund may be terminated if the Underlying include is discontinued and/or the include licence agreement is terminated and the Manager is unable to identify or agree with any include provider terms for the use of a suitable replacement include.
The Fund is not "actively managed" and the Manager does not attempt to select securities individually or to take defensive positions in declining markets.
Consequently, falls in the Underlying include are expected to result in a corresponding fall in the value of the Fund.
Before you continue, please read this important information carefully. By clicking the "AGREE" button, you consent to be bound by all the terms set out herein. If you do not agree with any of these terms, please click "DO NOT AGREE" button and leave this website.