Important Information

  1. BOCHK All Weather Short Term 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 from a managed portfolio of short duration fixed income securities.
  3. Investment involves risks. The Sub-Fund involves significant risks including but not limited to market risk, concentration risk, Mainland China market risk, emerging markets risk, currency risk, risks relating to debt securities (including but not limited to credit risk, interest rate risk, volatility and liquidity risk, downgrading risk, risks associated with debt securities rated below investment grade (by an internationally recognised credit agency) or rated below AA+ (by a Mainland China credit rating agency) or unrated, sovereign debt risk, risk associated with collateralized and/or securitized products such as asset backed securities (including asset backed commercial papers) or mortgage backed securities, valuation risk, risk related to credit ratings, credit rating agency risk, and risks associated with China Interbank Bond Market and Bond Connect), risks associated with investment made through QFI regime or QFI funds, Mainland China tax risk, RMB currency risk/risks relating to RMB denominated securities, risks of investing in convertible bonds, risks associated with investments in debt instruments with loss-absorption features (LAP), risks of investing in other collective investment schemes, risks relating to sale and repurchase transactions, 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 from a managed portfolio of short duration fixed income securities.

Fund Information

Fund Manager BOCHK Asset Management Limited
Fund Size USD 72.86 Million (As of 30 April 2024)
Launch Date 13 Sep 2018
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** 0.3% p.a.
Class Class A1
(USD)
Class A2
(HKD)
Class A3
(RMB)
 
 
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 BOCAWA1 HK BOCAWA2 HK BOCAWA3 HK  
 
ISIN HK0000441698 HK0000441706 HK0000441714  
 

* 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’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 may from time to time focus its investments in certain markets (such as the onshore Mainland China market). 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 the relevant markets.

China market / emerging markets risk

  • The Sub-Fund may be subject to the increased risks and special considerations of investing in the China market or 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.

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.

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.
  • Interest rate risk: Debt securities are subject to interest rate risk. Generally, the prices of debt securities rise when interest rates fall, vice versa.
  • Volatility and liquidity risk: The debt securities in the China market or emerging markets 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 or their issuers may be subject to the risk of being downgraded. In the event of downgrading, the value of the Sub-Fund may be adversely affected. The Manager may or may not be able to dispose of the debt instruments which (or the issuers of which) are being downgraded.
  • Risks associated with debt securities rated below investment grade (by an internationally recognised credit agency) or rated below AA+ (by a PRC credit rating agency) or unrated: Sub-Fund may invest in debt securities rated below investment grade (by an internationally recognised credit agency) or rated below AA+ (by a PRC credit rating agency) 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 or 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.
  • Risk associated with collateralized and/or securitized products such as asset backed securities (including asset backed commercial papers) or mortgage backed securities: The Sub-Fund may invest in collateralized and/or securitized products such as asset backed securities (including asset backed commercial papers) or mortgage backed securities which may be highly illiquid and prone to substantial price volatility. These instruments may be subject to greater credit, liquidity and interest rate risk compared to other debt securities. They are often exposed to extension and prepayment risks and risks that the payment obligation relating to the underlying assets are not met, which may adversely impact the returns of the securities.
  • 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.
  • Credit rating agency risk: The credit appraisal system in the Mainland of China and the rating methodologies employed in the Mainland of China may be different from those employed in other markets. Credit ratings given by rating agencies in the Mainland of China may therefore not be directly comparable with those given by other international rating agencies.
  • Risks associated with China Interbank Bond Market and Bond Connect: Investing in the China Interbank Bond Market (CIBM) via Foreign Access Regime and/or Bond Connect is subject to regulatory risks and various risks such as volatility risk, liquidity risk, settlement and counterparty risk as well as other risk factors typically applicable to debt securities. The relevant rules and regulations are subject to change which may have potential retrospective effect.

Risks associated with investment made through a QFII/RQFII regime or RQFII funds

  • The Sub-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 in investments) in the Mainland of China, which are subject to change and such change may have potential retrospective effect.
  • The Sub-Fund may suffer substantial losses if there is insufficient QFII/RQFII quota allocated for the Sub-Fund or a RQFII fund to make investments, the approval of the QFII/RQFII is being revoked/terminated or otherwise invalidated as the Sub-Fund or RQFII fund may be prohibited from trading of relevant securities, or if any of the key operators or parties (including QFII/RQFII custodian or brokers) is bankrupt or in default and/or is disqualified from performing its obligations (including execution or settlement of any transaction or transfer of monies or securities).

PRC tax risk

  • There are risks and uncertainties associated with the current PRC tax rules and practices, the changes to which may have retrospective effect. Any increased tax liabilities on the Sub-Fund may adversely affect the Sub-Fund’s value.
  • Based on professional and independent tax advice, the Sub-Fund will make a 6% value added tax (“VAT”) provision on the Sub-Fund’s interest income derived from PRC fixed income instruments (except PRC Government Bonds issued by the Ministry of Finance or approved local government bonds). Local surcharges at 12% of the VAT amount will also 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. The actual tax liabilities may be lower than the tax provision made. Depending on the timing of their subscriptions and/or redemptions, investors may be disadvantaged as a result of any shortfall of tax provision and will not be entitled or have any right to claim any part of such overprovision.

RMB currency risk/Risks relating to RMB denominated securities

  • Non-RMB based investors investing in the RMB Units will incur currency conversion costs and may suffer losses depending on the exchange rate movements of RMB relative to the investors’ base currencies (e.g. Hong Kong dollars) and by changes in exchange rate controls. There is no guarantee that RMB will not depreciate.
  • While the offshore RMB (known as “CNH”) and the onshore RMB (known as “CNY”) represent the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors.
  • RMB is currently not a freely convertible currency and is subject to foreign exchange controls and repatriation restrictions. 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 of investing in contingent convertible bonds

Contingent convertible bonds are hybrid capital securities that absorb losses when the capital of the issuer falls below a certain level and may be subject to the following key risks:

  • Trigger level risk/conversion risk: Trigger levels differ and determine exposure to conversion risk. It might be difficult for the Manager to anticipate the trigger events that would require conversion. These instruments may be converted into shares potentially at a discounted price and the principal amount invested may be lost. In case of a conversion, the Manager might be forced to sell new equity shares upon conversion and such forced sale may result in the Sub-Fund experiencing loss.
  • Coupon cancellation risk: Coupon payments on contingent convertible bonds are discretionary and may at times also be ceased or deferred by the issuer. These instruments may be volatile and their price may decline rapidly in the event that coupon payments are suspended.
  • Novelty and untested nature: The structure of contingent convertible bonds 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.
  • Sector concentration risk: Contingent convertible bonds are issued by banking and insurance institutions. The performance of the Sub-Fund may therefore be affected by a greater extent on the overall condition of the financial services industry than for the funds following a more diversified strategy.

Risks of investing in other collective investment schemes

  • The Sub-Fund will be subject to the risks associated with the underlying funds. The Sub-Fund does not have control of the investments of the underlying funds and there is no assurance that the investment objective and strategy of the underlying funds will be successfully achieved which may have a negative impact to the Net Asset Value of the Sub-Fund.
  • The underlying funds in which the Sub-Fund may invest may not be regulated by the SFC. There may be additional costs involved when investing into these underlying funds. There is also no guarantee that the underlying funds will always have sufficient liquidity to meet the Sub-Fund’s redemption requests as and when made.

Risks relating to repurchase agreements

  • In the event of the failure of the counterparty with which collateral has been placed, the Sub-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.

Risks associated with distribution out of capital

  • Payment of dividends out of capital or effectively out of capital 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 such distributions 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 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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