Important Information

  1. BOCHK All Weather Belt and Road Bond Fund (the “Sub-Fund”) is a Sub-Fund of BOCHK Wealth Creation Series.
  2. The Sub-Fund is to provide income and capital growth over the medium to longer term by investing primarily in fixed income securities issued by governments, government agencies, supra-nationals, banks or companies which are domiciled in or derive substantial revenue from or have significant business or economic activities in the Belt and Road countries/regions (Definition please refer to the Sub-Fund’s relevant appendix and product key facts) or are denominated in the local currencies of the relevant Belt and Road countries/regions.
  3. Investment involves risks. The Sub-Fund involves significant risks including but not limited to market risk, concentration risk, emerging markets risk, risks relating to the Belt and Road Initiative, eurozone risk, currency risk, risks associated with debt securities rated below investment grade or unrated, general risks relating to debt securities (including but not limited to credit risk, interest rate risk, volatility and liquidity risk concerning debt securities in Belt and Road countries/regions, downgrading risk, sovereign debt risk, valuation risk and risk related to credit ratings), RMB currency risk/risks relating to RMB denominated securities, risks of investing in convertible bonds, risks associated with distribution out of capital, risks relating to hedging and the hedged classes, etc. Past performance is not indicative of future performance. The value of the Sub-Fund can be volatile. Investors may not get back the full amount of capital invested or may suffer significant loss.
  4. The Manager may at its discretion pay distribution out of, or effectively out of, capital of the Sub-Fund. Investors should note that the payment of distributions out of, or effective out of, capital represents a return or withdrawal of part of the amount the investors originally invested or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of, or effectively out of, capital of the Sub-Fund may result in an immediate reduction of the net asset value of the relevant classes of units.
  5. Investors should not solely rely on this website 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. If you have any questions about the information of this website, please seek independent professional advice.

Investment Objectives

The investment objective of the Sub-Fund is to provide income and capital growth over the medium to longer term by investing primarily in fixed income securities issued by governments, government agencies, supra-nationals, banks or companies which are domiciled in or derive substantial revenue from or have significant business or economic activities in the Belt and Road countries/regions# or are denominated in the local currencies of the relevant Belt and Road countries/regions#.

#  “Belt and Road countries/regions” referred to herein means the Mainland of China, Hong Kong, Macau, Taiwan, and the cooperating countries which are listed on the official website of the Belt and Road Initiative hosted by the Chinese State Information Center, or announced by relevant Mainland Chinese authorities by other means, which may be updated from time to time.

Fund Information

Fund Manager BOCHK Asset Management Limited
Fund Size USD 9.58 Million (As of 30 April 2024)
Launch Date 14 Mar 2019
Base Currency USD
Dealing Frequency Daily
NAV calculation frequency Daily
Dividend Distribution* Aims to pay dividend on a monthly basis. Dividends are not guaranteed and may be paid out of capital Refer to Important Information 4.
Subscription Fee Up to 3%
Redemption Fee** Nil
Management Fee** 1% p.a.
Class Class A1
(USD)
Class A2
(HKD)
Class A8
(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 BOAWBA1 HK BOAWBA2 HK BOAWBA8 HK  
 
ISIN HK0000417011 HK0000417029 HK0000417086  
 

* 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
Dividend Payment Composition
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)
2023 Annual Report(Available in English and Traditional Chinese)
2023 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 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 or dividend or distribution payments.

Concentration risk

  • The Sub-Fund focuses its investments in Belt and Road countries/regions and its portfolio of investments may not be diversified compared to other broad-based funds. It may be subject to additional concentration risk. The value of the Sub-Fund may be more volatile than that of a fund having a more diversified portfolio of assets.
  • The value of the Sub-Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting Belt and Road countries/regions.

Emerging markets risk

  • Many Belt and Road countries/regions are emerging markets. The Sub-Fund may therefore be subject to the increased risks and special considerations of investing in the emerging markets, which are not typically associated with investment in more developed markets, such as greater political and economic uncertainties, social, foreign exchange, liquidity and regulatory risks, legal and taxation risks, settlement risks, custody risk, the likelihood of a high degree of volatility, market suspension, restrictions on foreign investment and control on repatriation of capital.

Risks relating to the Belt and Road Initiative

  • The Belt and Road Initiative is a very broad theme and a new development strategy, and does not have a proven history of success and viability. It is a long term strategic vision which involves policy considerations on the part of the Chinese government and may be subject to on-going changes. The Sub-Fund may be adversely affected as a result of such changes. There can be no assurance that the Belt and Road Initiative will not be changed in the future. Any valid position taken by the Manager at any one point in time to be aligned with the Belt and Road Initiative may no longer be aligned with the Belt and Road Initiative in the future as it may change over time. The Manager may need to effect changes to the Sub-Fund’s investment policy in light of changes in the government policies, or may terminate the Sub-Fund if it is no longer feasible for the Sub-Fund to pursue its investment strategies.
  • The Sub-Fund may be affected unfavourably by political developments, social instability, changes in government policies, and other political and economic developments in the Belt and Road countries/regions.
  • Investment in Belt and Road countries/regions may not be able to generate a stable cash flow, income or capital appreciation.

Eurozone risk

  • In light of ongoing concerns on the sovereign debt risk of certain countries within the Eurozone, the Sub-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 Sub-Fund.

Currency risk

  • The Sub-Fund may invest in securities quoted in currencies other than the Sub-Fund’s base currency (US Dollar). Also a class of units may be designated in a currency other than the base currency of the Sub-Fund. The Sub-Fund’s value may fluctuate in response to fluctuations in exchanges rates between such currencies and the US Dollar and by changes in exchange rate controls.
  • Currencies of emerging markets may be more volatile than major world currencies.

Risks relating to debt securities

  • Credit risk:Investment in debt securities is subject to the credit/default risk of the issuers of the debt securities that the Sub-Fund may invest in, which may be unable or unwilling to make timely payments on principal and/or interest.
  • Interest rate risk: Debt securities are sensitive to changes in interest rates and subject to interest rate risk. 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.
  • Volatility and liquidity risk concerning debt securities in Belt and Road countries/regions: The debt securities in Belt and Road countries/regions may be subject to higher volatility and lower liquidity compared to more developed markets. The price of securities traded in such markets may be subject to fluctuations. The bid and offer spreads of the price of such securities may be large and the Sub-Fund may incur significant trading costs.
  • Downgrading risk: Investment grade securities may be subject to the risk of being downgraded. In the event of downgrading, the risks of default may be higher and the value of the Sub-Fund may be adversely affected. The Manager may or may not be able to dispose of the debt instruments that are being downgraded.
  • Risks associated with debt securities rated below investment grade or unrated: The Sub-Fund may invest in debt securities rated below investment grade or unrated. Such securities are generally subject to lower liquidity, higher volatility and greater risk of loss of principal and interest than high-rated debt securities.
  • Sovereign debt risk: The Sub-Fund’s investment in securities issued or guaranteed by government may be exposed to political, social and economic risks. In adverse situations the sovereign issuers may not be able to willing to repay the principal and/or interest when due or may request the Sub-Fund to participate in restructuring such debts. The Sub-Fund may suffer significant losses when there is a default of sovereign debt issuers.
  • Valuation risk: Valuation of the Sub-Fund’s investments may involve uncertainties and judgmental determinations. If such valuation turns out to be incorrect, this may affect the Net Asset Value calculation of the Sub-Fund.
  • Risk related to credit ratings:Credit ratings assigned by rating agencies are subject to limitations and do not guarantee the creditworthiness of the security and/or issuer at all times.

RMB currency risk/Risks relating to RMB denominated securities

  • Investors may invest in RMB/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/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 and by changes in exchange rate controls.
  • 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. Any divergence between CNH and CNY may adversely impact investors.
  • 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. 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.

Risks of investing in convertible bonds

  • Convertible bonds are a hybrid between debt and equity, permitting holders to convert into shares in the company issuing the bond at a specified future date. As such, convertibles will be exposed to equity movement and greater volatility than straight bond investments. Investments in convertible bonds are subject to the same interest rate risk, credit risk, liquidity risk and prepayment risk associated with comparable straight bond investments.

Risks associated with distribution out of capital

  • If payment of dividends is made out of capital or effectively out of capital, it represents a return or withdrawal of part of the amount the investors originally invested or from any capital gains attributable to the original investment. Any distributions involving payment of dividends out of the Sub-Fund’s capital or effectively out of the Sub-Fund’s capital will result in an immediate reduction in the Net Asset Value of the relevant Class of Units.
  • The distribution amount and Net Asset Value of the hedged classes may be adversely affected by differences in the interest rates of the reference currency of the hedged classes and the Sub-Fund’s base currency, resulting in an increase in the amount of distribution that is paid out of capital and hence a greater erosion of capital than other non-hedged classes.

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.
  • Hedging strategies may preclude investors from benefiting from an increase in the value of the Sub-Fund’s base currency.

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