Important Information

  • BOCHK All Weather CNY Equity Fund (the "Sub-Fund") is a Sub-Fund of BOCHK Wealth Creation Series.
  • The Sub-Fund is to achieve long term capital growth through primarily investing in China A-Shares through Qualified Foreign Investor ("QFI").
  • Investment involves risks. The Sub-Fund involves significant risks including but not limited to investment risk, Mainland China market risk, emerging markets risk, equity investment/volatility risk, small-capitalisation/mid-capitalisation companies risk, investment in China A-Share market, RMB currency/conversion risk, risk associated with the Stock Connects, QFI risk, risks associated with China Interbank Bond Market, Mainland China taxation, exchange-traded funds (“ETFs”), real estate investment trusts ("REITs"), American Depositary Receipts ("ADRs"), risks relating to debt securities, derivative risk, risks relating to hedging and the hedged classes, etc. Past performance is not indicative of future performance. Investors may not get back the full amount of capital invested.
  • 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 achieve long term capital growth through primarily investing in China A-Shares through Qualified Foreign Investor ("QFI").

Fund Information

Fund Manager BOCHK Asset Management Limited
Fund Size RMB 221.48 Million (As of 30 April 2024)
Launch Date 5 June 2015
Base Currency RMB
Dealing Frequency^ Daily
NAV calculation frequency^ Daily
Dividend Distribution* Currently no distribution
Subscription Fee Up to 5.25%
Redemption Fee** Nil
Management Fee** 1.75% p.a.
Class Class A1
(RMB)
Class A2
(USD)
Class A3
(HKD)
Class A9
(HKD-H)
 
 
Minimum Investment (Initial) RMB
10,000
USD
1,000
HKD
10,000
HKD
10,000
 
 
Minimum Investment (Additional) RMB
10,000
USD
1,000
HKD
10,000
HKD
10,000
 
 
Bloomberg ID BOAWCA1 HK BOAWCA2 HK BOAWCA3 HK BOAWCA9 HK  
 
ISIN HK0000210283 HK0000210291 HK0000210309 HK0000326873  
 

* 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.
^ Daily on each Hong Kong and PRC business day. “HK & PRC Business Day”shall mean a day (other than a Saturday) on which banks and stock exchanges in Hong Kong and the PRC are open for normal business or such other day or days as the Manager and the Trustee may agree from time to time, provided that where as a result of a number 8 typhoon signal, black rainstorm warning or other similar event, the period during which banks in Hong Kong are open on any day is reduced, such day shall not be a HK & PRC Business Day unless the Manager and the Trustee determine otherwise.

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)
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.

Investment 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.

China market/emerging markets risk

  • The Sub-Fund may be subject to the risks of investing in the China market or emerging markets generally, such as greater political, social, economic, foreign exchange, liquidity and regulatory risks.

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.

Investment in China A-Share market

  • 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 if the trading price of the security has increased or decreased to the extent beyond the trading band limit. A suspension will render it impossible for the Sub-Fund 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.

RMB currency/conversion risk

  • RMB is currently not freely convertible and is subject to exchange controls by the Chinese government 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.
  • Investors may be adversely affected by movements of exchange rates between the RMB and the class currency of the Units they invest in. All or part of the subscription monies in a non-RMB denominated class will be converted into RMB for investment in underlying securities, while realisation proceeds in RMB will be converted to the relevant class currency for payment of redemption proceeds. Investors will be exposed to foreign exchange fluctuations between RMB and the relevant class currency and may suffer losses arising from such fluctuations.
  • In calculating the net asset value of units of non-RMB class, the Manager will apply the CNH rate (i.e. the exchange rate for the offshore RMB market in Hong Kong). The CNH rate may be at a premium or discount to the exchange rate for the onshore RMB market in the PRC (i.e. the CNY exchange rate); there may be significant bid and offer spreads and the value of the Sub-Fund thus calculated may be subject to fluctuation. Further, there may be significant trading costs incurred and investing in classes of Units denominated in a non-RMB currency may suffer losses.

Risks associated with the Shanghai-Hong Kong Stock Connect

The Sub-Fund will be allowed to trade Shanghai Stock Exchange (“SSE”) Securities through Shanghai-Hong Kong Stock Connect (through the Northbound Trading Link) and thus is subject to the following risks:

  • The Shanghai-Hong Kong Stock Connect program is novel in nature. The relevant regulations are untested and subject to change which may be retrospective. There is no certainty as to how they will be applied.
  • The program is subject to quota limitations which may restrict the Sub-Fund’s ability to invest in China A-Shares through the program on a timely basis.
  • Where a suspension in the trading through the program is effected, the Sub-Fund’s ability to access the PRC market (and hence its ability to pursue its investment strategy) will be adversely affected.
  • Due to the differences in trading days, there may be occasions when it is a normal trading day for the PRC market but the Sub-Fund cannot carry out any China A-Shares trading. The Sub-Fund may be subject to a risk of price fluctuations in China A-Shares during the time when Shanghai-Hong Kong Stock Connect is not trading as a result.
  • The program requires the development of new information technology systems on the part of the stock exchanges and exchange participants and may be subject to operational risk. If the relevant systems fail to function properly, trading in both Hong Kong and Shanghai markets through the program will be disrupted. The Sub-Fund’s ability to access the China A-Share market (and hence to pursue its investment strategy) will be adversely affected.
  • PRC regulations impose certain restrictions on selling and buying and hence the Sub-Fund may not be able to dispose of holdings or acquire holdings of China A-Shares in a timely manner.
  • A stock may be recalled from the scope of eligible stocks for trading via Shanghai-Hong Kong Stock Connect. This may affect the investment portfolio or strategies of the Sub-Fund.
  • Trading in securities through the program may be subject to clearing and settlement risk. If the PRC clearing house defaults on its obligation to deliver securities / make payment, the Sub-Fund may suffer delays in recovering its losses or may not be able to fully recover its losses. Further, the Sub-Fund’s investments through the program are not covered by the Hong Kong’s Investor Compensation Fund and/or the China Securities Investor Protection Fund.

RQFII risk

  • The Sub-Fund invests in securities through a RQFII which is subject to applicable regulations imposed by the PRC authorities. Although repatriations by the RQFII in respect of the Sub-Fund are currently not subject to any lock-up periods, prior approval or other repatriation restrictions, there is no assurance 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 Sub- Fund’s ability to meet redemption requests from the Unitholders.
  • The Sub-Fund may not have exclusive use of the entire RQFII quota granted by SAFE to the RQFII (i.e. the Manager), as the RQFII may in its discretion allocate RQFII quota which may otherwise be available to the Sub-Fund to other products. There can be no assurance that the RQFII can allocate sufficient RQFII quota to the Sub-Fund to meet all applications for subscription of Units in the Sub-Fund.
  • The application of the rules relevant to RQFII may depend on the interpretation of the Chinese authorities. Any changes to the relevant rules may have an adverse impact on investors’ investment in the Sub-Fund.

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 and debt instruments issued by the PRC government and PRC corporations.
  • 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.

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.

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 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.
  • If there is no active secondary market for RMB denominated fixed income securities, the Sub-Fund may need to liquidate its investments at a substantial discount in order to satisfy redemption requests.

Derivative risk

  • The Sub-Fund may use derivative instruments 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.

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 hedged 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.

The Sub-Fund does not have any guarantees. You may not get back the full amount of money you invest.

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