Important Information:

  1. BOCHK All Weather Asia (ex-Japan) Equity Fund (the “Sub-Fund”) is a Sub-Fund of BOCHK Wealth Creation Series.
  2. The Sub-Fund aims to achieve its investment objective by investing not less than 70% of its latest available Net Asset Value in equity securities , including exchange traded funds (ETFs), American Depositary Receipts (ADRs) that are listed in or that are issued by companies which derive substantial revenue from or have significant business or economic activities in Asia (excluding Japan). The Sub-Fund may also invest in real estate investment trusts (REITs) which have underlying properties primarily located in the Asia ex-Japan region.
  3. Investment involves risks. The Sub-Fund involves significant risks including but not limited to concentration risk, China/emerging markets risk, emerging market currencies risk, equity investment and volatility risk, RMB currency/ denominated securities risk, investment in China A-Share and China B-Share markets risk, RQFII and RQFII funds risk, stock connects risk, China Interbank Bond Market risk, exchange–traded funds (ETFs), real estate investment trusts (REITs),American Depositary Receipts (ADRs) and derivative instruments risk etc. Past Performance is not indicative of future performance. Investors may not get back the full amount of capital invested.
  4. The Manager has discretion as to whether not to make any distribution of dividends, the frequency of distribution and the amount of distributions. Currently, the Manager does not intend to make any distributions from the Sub-Fund.
  5. Investors should not solely rely on this document to make any investment decision. Please refer to the Explanatory Memorandum and the relevant appendix in detail (including the full text of risk factors stated therein) about the Sub-Fund.

Investment Objectives

The investment objective of the Sub-Fund is to provide capital growth over the long term by investing primarily in equity securities that are listed in or that are issued by companies which derive substantial revenue from or have significant business or economic activities in Asia (excluding Japan).

Fund Information

Fund Manager BOCHK Asset Management Limited
Fund Size (Million)
Launch Date 24 Apr 2017
Base Currency USD
Dealing Frequency Daily
NAV calculation frequency Daily
Dividend Distribution* Currently no distribution
Subscription Fee Up to 5.25%
Redemption Fee** Nil
Management Fee** 1.50% p.a.
Class Class A1
(USD)
Class A2
(HKD)
Class A7
(RMB-H)
 
 
Minimum Investment (Initial) USD
1,000
HKD
10,000
RMB
10,000
 
 
Minimum Investment (Additional) USD
1,000
HKD
10,000
RMB
10,000
 
 
Bloomberg ID BOAEJA1 BOAEJA2 BOAEJA7  
 
ISIN HK0000324837 HK0000324845 HK0000324894  
 

* Please refer to the fund documents of the respective funds/ sub-funds for details.
** The fees and charges may also be increased up to maximum level as specified in the fund documents by giving at least one month's prior notice to investors. Please refer to the fund documents for further details.

Past Performance – Calendar Year

Download

Historical Fund Price
Fund Documents:
Fund Factsheet (Available in English and Traditional Chinese)
Explanatory Memorandum and Appendix (Available in English and Traditional Chinese)
Product Key Facts (Available in English and Traditional Chinese)
2016 Annual Report
2016 Interim Report (Available in English and Traditional Chinese)

Important Notice

Investment in funds/sub-funds may involve risks and may not be suitable for all investors. Past performance is not indicative of future results. Investors should read carefully the relevant fund documents for details including but not limited to the risk factors before making any investment decisions. Printed copies of the fund documents or other information of the funds/sub-funds are available from the distributors of the respective funds/sub-funds and BOCHK Asset Management Limited. The above information does not constitute any offer or recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to the investors’ needs.

Market risk

  • The Sub-Fund is an investment fund. The Sub-Fund’s investment portfolio may fall in value and therefore your investment in the Sub-Fund may suffer losses.

Concentration risk

  • The Sub-Fund focuses its investments in the Asia (ex Japan) region and its portfolio of investments may not be diversified compared to other broad-based funds. It may be subject to additional concentration risk.

China market/emerging markets risk

  • The Sub-Fund may be subject to the risks of investing in emerging markets (including but not limited to China) generally, such as greater political, social, foreign exchange, liquidity and regulatory risks.
  • As emerging markets tend to be more volatile than developed markets, any holdings in emerging markets are exposed to higher levels of market risk.
  • The securities markets of developing countries have a substantially lower trading volume. Investment in such markets will be subject to risks such as market suspension, restrictions on foreign investment and control on repatriation of capital. The value of the Sub-Fund’s investments in emerging markets could be adversely affected.

Risks relating to emerging market currencies

  • The Sub-Fund may invest in securities quoted in currencies other than the Sub-Fund’s base currency (US Dollar). The Sub-Fund’s value may fluctuate in response to fluctuations in exchange rates between such currencies and US Dollar.
  • Because of additional political, social, economic, regulatory and settlement risks, currencies of emerging markets may be more volatile than major world currencies.
  • Government policies in emerging countries may include capital control measures or direct intervention in the currency market, leading to sudden and substantial devaluation of the local currency concerned.

Equity investment/volatility risk

  • Equity investment is subject to risks that the market value of the stocks may go down as well as up. Prices of equity securities may be volatile. If the market value of equity securities in which the Sub-Fund invests in goes down, investors may suffer substantial losses.

Small-capitalisation/mid-capitalisation companies risk

  • The stock of small-capitalisation/mid-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general.

Investment in China A-Share market

  • The Sub-Fund may have exposure to the China A-Share market directly or through investment in RQFII funds. The China A-Share market is undergoing development, and may have limited liquidity, lower trading volume and higher volatility. This may result in significant fluctuations in the prices of the securities traded on such markets and thereby may affect the value of the Sub-Fund.
  • Securities listed on the China stock exchanges may be suspended. A suspension will render it impossible for the Sub-Fund or RQFII funds to liquidate positions or, when the suspension is lifted, to liquidate positions at a favourable price. The Sub-Fund may therefore suffer a loss in its investment.

Risks relating to debt securities

  • Investment in debt securities is subject to the credit risk of the issuers which may be unable or unwilling to make timely payments on principal and/or interest. If the issuers default, the performance of the Sub-Fund will be adversely affected. Investment grade securities may be subject to the risk of being downgraded. In the event of downgrading, the risks of default may be higher.
  • Debt securities are sensitive to changes in interest rates. Generally, the prices of debt securities rise when interest rates fall, vice versa. Longer term debt securities are usually more sensitive to interest rate changes.

RMB currency risk/Risks relating to RMB denominated securities

  • Investors may invest in RMB-hedged Units of the Sub-Fund. Non-RMB based investors (e.g. Hong Kong investors) may have to convert Hong Kong dollar or other currency(ies) into RMB when investing in RMB-hedged Units and subsequently convert the RMB redemption proceeds and/or dividend payment (if any) back to Hong Kong dollar or such other currency(ies). Investors will incur currency conversion costs and may suffer losses depending on the exchange rate movements of RMB relative to Hong Kong dollar or such other currencies.
  • Class denominated in RMB will generally be valued with reference to the offshore RMB (known as “CNH”) rather than the onshore RMB (known as “CNY”). 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 Sub-Fund may have exposure to securities that are denominated in RMB. RMB is currently not a freely convertible currency and is subject to foreign exchange controls and repatriation restrictions imposed by the Chinese government. There is no guarantee that RMB will not depreciate. The Sub-Fund may suffer losses in case of depreciation of RMB.

Risks relating to RQFII and RQFII funds

Risks relating to the RQFII regime:

  • There is no assurance that sufficient quota will be available for investment by the Sub-Fund or a RQFII fund. Therefore the Sub-Fund’s ability to obtain exposure to the PRC domestic securities market may be limited by the availability of RQFII quota.
  • There is no guarantee that restrictions will not be imposed in relation to repatriation of capital out of China by the Sub-Fund or RQFII funds. Any restrictions on repatriation of the invested capital out of China may impact on the relevant funds’ ability to meet redemption requests from the Sub-Fund. Therefore, the Sub-Fund may be subject to liquidity risk.
  • The application of the rules relevant to RQFII may depend on the interpretation given by the relevant Chinese regulatory authorities. Any changes to the relevant rules may have an adverse impact on investments made by the Sub-Fund or the RQFII funds and hence the Sub-Fund’s performance.

Risks relating to RQFII ETFs:

  • RQFII exchange traded funds (“RQFII ETFs”) which seek to track a China A-Share market index may be subject to tracking errors. Their units may be traded at a substantial premium or discount to their net asset value. Further, RQFII ETFs may be riskier than traditional exchange traded funds investing in non-PRC markets. Their operation depends heavily on the expertise of the RQFII ETF’s manager (or its mainland parent company).

Risks associated with Stock Connects

  • The relevant rules and regulations on 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 Sub-Fund’s ability to invest in China A-shares or access the PRC market through the programme will be adversely affected. In such event, the Sub-Fund’s ability to achieve its investment objective could be negatively affected.

PRC taxation

  • There are risks and uncertainties associated with the current PRC tax rules and practices in respect of capital gains derived by RQFIIs and/or the Sub-Fund on their PRC investments. The changes to the PRC tax rules and practices may have a retrospective effect and may adversely affect the Sub-Fund. Having taken and considered independent professional tax advice, the Manager has, acting in accordance with such advice, determined that it will not make any withholding income tax provision for the account of the Sub-Fund on the gross realized and unrealized capital gains derived from investments in China A-Shares, China B-Shares and debt instruments issued by the PRC government and PRC corporations (other than in respect of capital gains derived from China B-Shares issued by PRC tax resident companies which are immovable properties- rich companies for which a 10% provision will be made).
  • If the Sub-Fund has greater tax liabilities in the PRC than provided for, any shortfall between the provision and actual tax liabilities will be debited from the Sub-Fund’s assets and cause the Sub-Fund’s net asset value to be adversely affected. In this case, existing and subsequent investors will be disadvantaged as they will bear for a disproportionately higher amount of tax liabilities as compared to the liability at the time of investment in the Sub-Fund. On the other hand, the actual tax liabilities may be lower than the tax provision made. In that case, persons who have already redeemed their Units in the Sub- Fund before the actual tax liabilities are determined will not be entitled or have any right to claim any part of such overprovision.

Exchange-traded funds (ETFs)

  • The trading prices of units/shares in an ETF may be at a discount or premium to the net asset value of the units/shares. Valuation of units/shares in an ETF will primarily be made by reference to the last traded price. Where the Sub-Fund buys at a premium, it may suffer losses and may not fully recover its investment in the event of termination of the ETF.
  • An ETF may not be able to perfectly track the index it is designed to track. The return from investing in an ETF may therefore deviate from the return of its tracking index.
  • An ETF which is designed to track a market index is not “actively managed”, therefore when there is a decline in the relevant index, the ETF will also decrease in value. The ETF may not adopt any temporary defensive position against market downturns. The Sub-Fund may lose part or all of its investment in the ETF.
  • There can be no assurance that an active trading market will exist for units/shares of an ETF.
  • Synthetic ETFs are subject to the credit risk of the counterparties who issue the derivatives that are used to track the underlying index. If the counterparties default, the Sub-Fund may suffer substantial losses of its investment in the relevant ETFs.

REITs

  • The REITs invested in by the Sub-Fund may not necessarily be authorised by the SFC and their dividend policy may differ from that of the Sub-Fund.
  • The prices of REITs are affected by changes in the value of the underlying properties owned by the REITs.
  • Real estate investments are relatively illiquid and this may affect the ability of a REIT to vary its investment portfolio or liquidate part of its assets in response to changes in economic conditions, international securities markets, foreign exchange rates, interest rates, real estate markets or other conditions.
  • Returns from REITs are dependent on management skills. Investments made by REITs generally may not be diversified, and may be subject to the risks associated with adverse developments in relevant property sectors.
  • REITs are subject to risk of defaults by borrowers or tenants. In the event of a default, a REIT may experience delays in enforcing its rights and may suffer losses as a result.

ADRs

  • Although ADRs have risks similar to the securities that they represent, they may also involve higher expenses and may trade at a discount (or premium) to the underlying security. In addition, depositary receipts may not pass through voting and other shareholder rights, and may be less liquid than the underlying securities listed on an exchange.

Risks relating to hedging and the hedged classes

  • There can be no assurance that any currency hedging strategy employed by the Manager will fully and effectively eliminate the currency exposure of the Sub-Fund. If the counterparties of derivative instruments used for hedging purposes default, investors of the unhedged share classes may be exposed to the currency exchange risk on an unhedged basis and may suffer losses as a result.
  • The effects of hedging will be reflected in the Net Asset Values of the hedged classes.Similarly, any expenses arising from such hedging transactions will be borne by the hedged classes in relation to which they have been incurred which may be significant depending on the prevailing market conditions.
  • While hedging strategies may protect investors in the hedged classes against a decrease in the value of the Sub-Fund’s base currency relative to the class currency of the hedged classes, it may also preclude investors from benefiting from an increase in the value of the Sub-Fund’s base currency.

Derivative risk

  • The Sub-Fund may use derivative instruments (i.e. currency forward contracts, swaps, financial futures and options contracts) for hedging purposes. There can be no assurance that any hedging techniques will fully and effectively eliminate the risk exposure of the Sub-Fund.
  • The price of a derivative instrument can be very volatile. A derivative instrument is subject to the risk that the counterparty of the instrument will not fulfil its obligations to the Sub-Fund, and this may result in losses to the Sub-Fund.
  • Derivative instruments may be illiquid and are complex in nature. In adverse situations, the Sub-Fund’s use of derivatives for hedging may become ineffective and the Sub-Fund may suffer significant losses.

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