Embed Size (px)
Citation preview
IMPORTANT: Investment involves risks. Investment value may rise or fall. Past performance information presented is not indicative of future performance. Investors should refer tothe Prospectus and the Product Key Facts Statement for further details, including product features and risk factors. Investors should not base on this website alone to makeinvestment decisions.
CSOP Bloomberg Barclays China Treasury + Policy Bank Bond Index ETF (the “Sub-Fund”) is a “physical” ETF meaning it will invest directly in RMB denominated and settledfixed-rate bonds issued by the Ministry of Finance of the PRC, the China Development Bank, the Agricultural Development Bank of China or the Export-Import Bank of Chinaand distributed within the PRC (the “Treasury Bonds and Policy Bank Bonds”) through the Manager’s status as a Renminbi qualified foreign institutional investor (“RQFII”),and/or via the initiative for mutual bond market access between Hong Kong and Mainland China (“Bond Connect”).The Sub-Fund is subject to risk associated with debt securities, such as credit / counterparty risk, interest rate risk, volatility and liquidity risk, downgrade risk, sovereign debtrisk, valuation risk, credit rating risk and credit agency risk.The Sub-Fund is an investment fund. There is no guarantee of the repayment of principal. Therefore your investment in the Sub-Fund may suffer losses.It should be noted that RMB is not a freely convertible currency as it is subject to foreign exchange control policies of the PRC government. Any devaluation of the RMB couldadversely affect the value of investors’ investments in the Sub-Fund. Investors whose base currency is not the RMB may be adversely affected by changes in the exchangerates of the RMB.Investing in the PRC, involves a greater risk of loss than investing in more developed markets due to, among other factors, greater political, social, tax, economic, foreignexchange, liquidity and regulatory risks; exchange rate fluctuations and exchange control; less developed settlement system; governmental interference; the risk ofnationalisation and expropriation of assets. The Index tracks the performance of a single geographical region, namely the PRC and is concentrated in bonds of a single issuer.The NAV of the Sub-Fund is therefore likely to be more volatile than a more broad-based fund, such as a global bond fund, as the Index is more susceptible to fluctuations invalue resulting from adverse changes in the financial condition of the PRC government and changes in economic or political conditions which affect the PRC.In the event of any default of the PRC Custodian (directly or through its delegate) in the execution or settlement of any transaction or in the transfer of any funds or securities inthe PRC, the Sub-Fund may encounter delays in recovering its assets which may in turn adversely impact the NAV. Repatriations by RQFIIs in respect of an investment fundsuch as the Sub-Fund conducted in RMB are permitted daily and are not subject to any lock-up periods or prior approval. There is no assurance, however, that PRC rules andregulations will not change or that repatriation restrictions will not be imposed in the future. The Sub-Fund will utilize the Manager’s RQFII quota. In the event the quota isreached and the Manager is unable to acquire additional RQFII quota, the Manager may have to increase its reliance on Bond Connect, and its ability to achieve its investmentobjective could be negatively affected.Investing in the PRC inter-bank bond market via Bond Connect is subject to regulatory risks and various risks such as volatility risk, liquidity risk, settlement and counterparty riskas well as other risk factors typically applicable to debt securities. The relevant rules and regulations on investment in the PRC inter-bank bond market via Bond Connect aresubject to change which may have potential retrospective effect. In the event that the relevant PRC authorities suspend account opening or trading on the PRC inter-bank bondmarket or trading through Bond Connect, the Sub-Fund’s ability to invest in the PRC inter-bank bond market will be adversely affected. Where a suspension in the tradingthrough Bond Connect is effected, the Sub-Fund’s will have to increase its reliance on RQFII, and its ability to achieve its investment objective could be negatively affected.There are risks and uncertainties associated with the current PRC tax laws, regulations and practice in respect of capital gains and other income realised or received by the Sub-Fund on its investments in the PRC (which may have retrospective effect). After careful consideration of the Manager’s reassessment and having taken and consideredindependent professional tax advice and in accordance with such advice, the Manager decided that no withholding provision will be made on the gross unrealised and realisedcapital gains derived from disposal of PRC Securities. It is possible that the applicable tax laws may be changed, that the PRC tax authorities may hold a different view as to theenforcement of the PRC withholding tax collection on capital gains. In such case the Sub-Fund will bear the actual tax liabilities as no tax provision has been made. This mayhave an adverse impact to the Sub-Fund’s NAV. In this case, existing and subsequent investors will be disadvantaged as they bear for a disproportionately higher amount of taxliabilities as compared to the liability at the time of investment in the Sub-Fund.Not all stockbrokers or custodians may be ready and be able to carry out trading and settlement of the RMB traded Units. The limited availability of RMB outside of the PRC mayalso affect the liquidity and trading price of the RMB traded Units.If there is a suspension of the inter-counter transfer of Units among the HKD counter, the RMB counter and the USD counter for any reason, investors will only be able to tradetheir Units in the relevant counter on the SEHK. The market price on the SEHK of Units traded in HKD or USD may deviate significantly from the market price on the SEHK ofUnits traded in RMB due to different factors, such as market liquidity, supply and demand in each counter and the exchange rate between the RMB and the HKD (in both theonshore and the offshore markets) and the USD. As such investors may pay more or receive less when buying or selling Units traded in HKD or USD on the SEHK than inrespect of Units traded in RMB and vice versa. Investors without RMB accounts or USD accounts may buy and sell HKD traded Units only. Such investors will not be able to buyor sell RMB traded Units or USD traded Units and should note that distributions are made in RMB only. As such, investors may suffer a foreign exchange loss and incur foreignexchange associated fees and charges to receive their dividend. Not all brokers and CCASS participants may be familiar with and able to buy Units in one counter and to sellUnits in another or to carry out inter-counter transfers of Units or to trade different counters at the same time. This may inhibit or delay an investor dealing in HKD traded Units,RMB traded Units and USD traded Units and may mean an investor can only trade in one currency.The Sub-Fund only holds a representative sample of securities that represents the profile of the Index and may invest in bonds not included in the Index. It is therefore possiblethat the Sub-Fund may be subject to larger tracking error than other traditional ETFs that fully replicates the Index.The Sub-Fund is not actively managed and will not adopt any temporary defensive position against any market downturn. Therefore when there is a decline in the Index, theSub-Fund will also decrease in value. Investors may suffer significant losses accordingly.Generally, retail investors can only buy or sell Units on SEHK. The trading price of the Units on SEHK is subject to market forces and may trade at a substantial premium ordiscount to the NAV per Unit.Although the Manager will ensure that at least 1 market maker will maintain a market for Units traded in each counter and that at least 1 market maker for each counter gives notless than 3 months’ prior notice before termination of relevant market making under the market maker agreement, liquidity in the market for the Units may be adversely affectedif there is no market maker for the RMB and the HKD traded Units. It is possible that there is only 1 market maker to each counter or the Manager may not be able to engage asubstitute market maker within the termination notice period of the market maker, and there is also no guarantee that any market making activity will be effective.The Manager may, at its discretion, pay dividends out of capital. The Manager may also, at its discretion, pay dividends out of gross income while all or part of the fees andexpenses of the Sub-Fund are charged to/paid out of the capital of the Sub-Fund, resulting in an increase in distributable income for the payment of dividends by the Sub-Fundand therefore, the Sub-Fund may effectively pay dividends out of the capital. Payment of dividends out of capital or effectively out of the capital amounts to a return or withdrawalof part of an investor’s original investment or from any capital gains attributable to that original investment.Any distributions involving payment of dividends out of the capital or effectively out of the capital of the Sub-Fund may result in an immediate reduction of the NAV per Unit.As a result of the change in index on June 24, 2019, past performance of the Sub-Fund prior to such date was achieved under circumstances that no longer apply. Investorsshould exercise caution when considering the past performance of the Sub-Fund prior to June 24, 2019.The Sub-Fund may be terminated early under certain circumstances, for example, where the Index is no longer available for benchmarking or if the size of the Sub-Fund fallsbelow RMB150 million. Investors should refer to “Termination” in the Prospectus for further details.On June 24, 2019, the underlying index of the Sub-Fund was changed from ChinaBond 5-year Treasury Bond Index (the “Previous Index”) to Bloomberg Barclays ChinaTreasury + Policy Bank Index. The rebalancing of assets held by the Sub-Fund as a result of the change of underlying index is anticipated to take place over a period of 5trading days (the “Rebalancing Period”). During the Rebalancing Period, holdings of the Sub-Fund will be rebalanced from constituents of the Previous Index to constituents ofthe Index. Although there is a high degree of correlation between the Previous Index and the Index, the Manager considers there is a risk that the tracking error and trackingdifference of the Sub-Fund during the Rebalancing Period may increase. Investors who deal with Units of the Sub-Fund during the Rebalancing Period should exercise caution.
Investment ObjectiveThe Sub-Fund aims to provide investment results that, before fees andexpenses, closely correspond to the performance of the Bloomberg BarclaysChina Treasury + Policy Bank Index (the “Index”).
Cumulative Performance(%)1
Counter 1 Month 6 Month 1 Year 3 Year Since Listing3
RMB 0.71 1.95 2.65 6.86 23.30
Index2 0.72 2.81 4.24 11.12 32.15
CSOP Bloomberg Barclays China Treasury + Policy BankBond Index ETFStock Code : 83199/9199/3199All Information as of 31 December 2019
CSOP Asset Management Limited ; 2801-2803 Two Exchange Square, 8 Connaught Place, Central, Hong Kong SAR;Tel: (852) 3406-5688 ; Website: www.csopasset.com; Email: [email protected]
Fund InformationLegal structure Hong Kong Unit Trust
Manager CSOP Asset Management Limited
Exchange Listing SEHK – Main Board
Investment Strategy Representative Sampling Strategy
Fund Size RMB 169.01 million
Units Outstanding 1,630,000
Base Currency CNY
Share Class Currency USD,HKD,CNY
Dividend Frequency 4 Quarterly
Custodian The Hongkong and ShanghaiBanking Corporation Limited
PRC Custodian HSBC Bank (China) CompanyLimited
Trustee and Registrar HSBC Institutional Trust Services(Asia) Limited
Calendar Year Performance(%)1
Counter3 2014 2015 2016 2017 2018 2019YTD
RMB 7.43 6.87 0.50 -2.20 6.44 2.65
Index2 7.85 7.77 2.31 -1.04 7.72 4.24
‒ RMB Counter ‒ IndexData from inception date to 31 December 2019Source: Bloomberg
Share Class Information
CounterNet Asset
ValueListing
Date ISIN CodeExchange
TickerBloomberg
CodeTrading Lot
SizeManagement
FeeLast
Distribution5
USD 14.88 03/04/14 HK0000406923 9199 9199 HK 20 units. 0.49% p.a. RMB 0.9
HKD 115.85 18/02/14 HK0000182987 3199 3199 HK 20 units. 0.49% p.a. RMB 0.9
RMB 103.69 18/02/14 HK0000182979 83199 83199 HK 20 units. 0.49% p.a. RMB 0.9
Portfolio CharacteristicsAverage Yield-to-Maturity 3.07%
Weighted Average Maturity 7.49 years
Effective Duration 5.52
Average Convexity 0.70
Asset Allocation
Source: Bloomberg
Participating DealersABN AMRO Clearing Hong Kong LimitedChina Merchants Securities (HK) Co., LimitedGoldman Sachs (Asia) Securities LimitedKGI Asia LimitedMerrill Lynch Far East LimitedNomura International (Hong Kong) LimitedSG Securities (HK) LimitedUBS Securities Hong Kong LimitedYuanta Securities (Hong Kong) Company Limited
Market Makers (USD Traded Units)KGI Asia Limited
Market Makers (HKD Traded Units)KGI Asia LimitedOptiver Trading Hong Kong Limited
CSOP Bloomberg Barclays China Treasury + Policy BankBond Index ETFStock Code : 83199/9199/3199All Information as of 31 December 2019
CSOP Asset Management Limited ; 2801-2803 Two Exchange Square, 8 Connaught Place, Central, Hong Kong SAR;Tel: (852) 3406-5688 ; Website: www.csopasset.com; Email: [email protected]
31 Dec 2019
18 Feb 2014
Jan 2
015
Jan 2
016
Jan 2
017
Jan 2
018
Jan 2
019
Apr 20
14
Jul 2
014
Oct 20
14
Apr 20
15
Jul 2
015
Oct 20
15
Apr 20
16
Jul 2
016
Oct 20
16
Apr 20
17
Jul 2
017
Oct 20
17
Apr 20
18
Jul 2
018
Oct 20
18
Apr 20
19
Jul 2
019
Oct 20
19
-5%
0%
5%
10%
15%
20%
25%
30%
Maturity Allocation
Source: Bloomberg
Market Makers (RMB Traded Units)KGI Asia LimitedOptiver Trading Hong Kong Limited
Top 5 HoldingsSecurity Name % of NAV
CHINA GOVERNMENT BOND 3.190 11 Apr 24 12.28CHINA GOVERNMENT BOND CGB 2.44 02/21/21 1902 12.09CHINA DEVELOPMENT BANK 3.300 01 Feb 24 10.39ADBCH 3.63 07/19/26 1908 9.70CHINA GOVERNMENT BOND CGB 4.63 08/11/34 6.85
Footnote:1. NAV to NAV performance with dividend reinvested, calculated in RMB.2. Performance of underlying index is calculated based on total return. The underlying index of the Sub-Fund changed to Bloomberg Barclays China Treasury + Policy Bank Indexeffective June 24, 2019. Index performance reflects the performance of ChinaBond 5-year Treasury Bond Index from the inception of the Sub-Fund through June 23, 2019, andBloomberg Barclays China Treasury + Policy Bank Index thereafter..3. Calculated since the listing date of 19 February 2014.4. The frequency of dividend distribution may change at the discretion of the Manager.5. Ex-dividend Date: 24 October 2019.
Disclaimer:BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of BarclaysBank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg BarclaysIndices. Neither Bloomberg nor Barclays is affiliated with CSOP Asset Management Limited, and neither approves, endorses, reviews or recommends CSOP Bloomberg BarclaysChina Treasury + Policy Bank Bond Index ETF. Neither Bloomberg nor Barclays guarantees the timeliness, accurateness or completeness of any data or information relating toBloomberg Barclays China Treasury + Policy Bank Index, and neither shall be liable in any way to the CSOP Asset Management Limited, investors in CSOP Bloomberg BarclaysChina Treasury + Policy Bank Bond Index ETF or other third parties in respect of the use or accuracy of the Bloomberg Barclays China Treasury + Policy Bank Index or any dataincluded therein. This material has not been reviewed by the Securities and Futures Commission.Issuer: CSOP Asset Management Limited
CSOP Bloomberg Barclays China Treasury + Policy BankBond Index ETFStock Code : 83199/9199/3199All Information as of 31 December 2019
CSOP Asset Management Limited ; 2801-2803 Two Exchange Square, 8 Connaught Place, Central, Hong Kong SAR;Tel: (852) 3406-5688 ; Website: www.csopasset.com; Email: [email protected]
