HSBC Collective Investment Trust - HSBC All China Bond Fund

Transcription

1 HSBC Collective Investment Trust - HSBC All China Bond Fund H Share Class 31 Jan Jan 2019 Risk Disclosure The Fund invests mainly in onshore and offshore Chinese bonds. The Fund is subject to the risks of investing in emerging markets. The Fund may invest in onshore Chinese securities. The Fund may make such investments through various market access schemes. Such investments involve additional risks, including the risks associated with China s tax rules and practices. Urban investment bonds issued by PRC local government financing vehicles (LGFVs), non-investment grade bonds and unrated bonds are subject to additional risks and volatility. Because the Fund s base currency, investments and classes may be denominated in different currencies, investors may be affected adversely by exchange controls and exchange rate fluctuations. The Fund may pay dividends out of capital or gross of expenses. Dividend is not guaranteed and may result in capital erosion and reduction in net asset value. The Fund s investments may involve substantial credit, currency, volatility, liquidity, interest rate, tax and political risks. Investors may suffer substantial loss of their investments in the Fund. Unit trusts are NOT equivalent to time deposits. Investors should not invest in the Fund solely based on the information provided in this document and should read the offering document of the Fund for details. Fund Objective and Strategy Investment objective The Fund aims to invest for total return (i.e. via both income and capital appreciation), through investments primarily in a portfolio of Chinese fixed income securities. Investment strategy The Manager seeks to achieve investment returns through active management of duration, term structure, sector allocation and credit selection where applicable. Performance (%) Share Class Details UCITS V Compliant Fund Distribution Type Distribution Frequency 110 Dealing Frequency 105 Min. Initial Investment 100 Max. Initial Charge Management Fee Base Currency Domicile ISIN Performance (%) YTD 1M 3M 1Y 3Y¹ 5Y¹ Inception Date NAV per Share Fund Size Bloomberg Ticker Calendar Year Performance (%)² Past performance is not an indicator of future returns. The figures are calculated in the share class base currency, NAV to NAV basis with dividend reinvested, net of fees. If investment performance is not denominated in or USD, or USD based investors are exposed to exchange rate fluctuations. Source: HSBC Global Asset Management, data as at 31 January 2019 Manager No Distributing Monthly Daily 10, % 1.10% Hong Kong HK Jul CNH 133,046,026 HCFIAMR HK Gregory Suen Alfred Mui 1 Result is cumulative when calculation period is over one year. 2 The calendar year return of the first year is calculated between share class inception date and calendar year end of first year if the share class has less than 5-year history. Fund Change that may have material impact on performance: 1 Jul 2017: trustee fee reduced. 3 July 2018 fund name and investment objective changed. 16 Nov Change in the manner of charging initial charge / switching fee. To download the offering documents from nts/english/amhk_hcit.pdf

2 HSBC Collective Investment Trust - HSBC All China Bond Fund Share Class 31 Jan Year Risk Measures 5-Year Risk Measures Volatility 2.93% Volatility - Sharpe Ratio Sharpe Ratio - Characteristics Fund Characteristics Fund Number of Holdings ex Cash 37 Average Yield to Maturity 4.76 Current Yield (Gross) 5.53 Average Coupon 5.05 Maturity Average 3.45 Effective Duration Number of Issuers 35 Portfolio Yield 4.72 Maturity Breakdown Fund (Effective Duration) Sector Allocation (%) Fund 0-2 years 0.25 Industrial years 1.62 Real Estate years 1.05 Investment Companies years 0.14 Consumer Cyclical Total 3.07 Banks Sorted from shortest to longest per the length of maturity. Consumer Non cyclical 7.81 Diversified Finan serv 7.23 Government 6.83 Energy 1.69 Cash Sorted from largest to smallest per market values of weight. Top 10 Holdings (%) Weight (%) CHINA RAILWAY CORP /05/ CHENGDU RAIL TRANS 5.18% MTN /06/ CHINA NATIONAL MAT 5.35% MTN /11/ TIANJIN PORT GROUP CO LTD /11/ WEICHAI HOLDING GROUP CO LT /03/ JIANGXI EXPRESSWAY INVESTME /06/ HUNAN PROVINCIAL RAILWAY IN /04/ NANJING STATE OWNED ASSE /03/ EXPORT-IMPORT BANK OF CHINA /05/ STATE DEV BANK OF CHINA /01/ Effective Duration, excludes interest rate futures, bond futures and excess return from interest rate swaps. Source: HSBC Global Asset Management, data as at 31 January 2019

3 HSBC Collective Investment Trust - HSBC All China Bond Fund Share Class 31 Jan 2019 Monthly Performance Commentary Review Onshore RMB bonds continued to perform well in January as the sovereign yield curve edged downward and bull steepened. This largely reflected the government s accommodative stance to provide ample liquidity in order to facilitate a smoother refinancing and to curb risk from an accelerated economic slowdown. Similar to data release from other key markets, December soft and hard data in China came in largely disappointing as manufacturing PMI fell below the 50 mark, and exports and imports dipped into negative territories, indicating the waned front-loading effect and strong headwinds for external demand. The easing gauges, along with the slightly moderated 4Q18 real GDP growth, prompted the government for further policy support in the near future. Indeed, the PBOC delivered a 100bps blanket RRR cut in early-january to improve liquidity. The effort to ease liquidity and targeted relaxation on wealth management products in the recent months have started seeing some impact, with money supply growth picked up marginally. More importantly, the total social financing also rebounded, with the shadow banking components, such as bank acceptance bills, showing meaningful uplift. Lastly, bank loan to small and medium enterprises are also improving quickly. Altogether, the funding condition has become easier and the refinancing risk is more contained now, helping China to navigate the external uncertainties and offset headwinds to growth. On the currency front, the RMB continued to appreciate against the US dollar over the month, driven largely by the optimism on US-China trade tensions that pushed US treasury yields and the USD lower. Moreover, the high hope for a trade deal also boosted the RMB against its peer basket on a trade weighted basis. The overall market sentiment on the currency is intact, with the PBoC showing little intervention and capital flows being stable. Furthermore, the upbeat sentiment has also further bolstered foreign demand on onshore RMB bonds, with the foreign ownership reaching a new high. In the meantime, Bloomberg made an official announcement to include government and policy bank bonds into its Global Aggregate Index. Outlook Amid growing concerns over moderating growth in China, authorities have stepped up their efforts to stimulate growth, especially with the trade dispute with the US still going on at the backdrop. We have already seen measures targeting to lower funding costs in the economy and facilitate greater credit transmission to the private sector. Furthermore, a more accommodative shift in policy priority in China has coincided with the dovish shift of the US Fed s policy stance. This should help ease pressure on the US dollar strength (and also depreciation pressure on the RMB), giving more room for Chinese authorities to guide yields lower to boost growth in the onshore market. We expect monetary policy to remain broadly accommodative, providing a favourable backdrop for bonds in general. As for the currency, towards the end of the month, US Treasury Secretary Mnuchin s comment that the RMB will be part of the trade talks between the US and China confirmed our belief that the best mutual interest of the two countries remains in maintaining a relatively stable exchange rate between the USD and RMB. It is certainly the case that the stronger RMB in recent weeks has not been a consequence of an improving Chinese economy. It has been a general improvement in global sentiment, but crucially allied to a policy driven approach where domestic monetary conditions have been eased while the currency has been kept stable against a trade weighted basket. This may represent a very attractive environment for investors in RMB bonds. A combination of lower market driven domestic interest rates, together with a currency which is being stabilised may be skewing the distribution of outcomes in favour of bond investors. This comes on top of the simple technical framework where yields are very competitive on an interest rate risk adjusted basis, and the more complex issue of the inclusion of domestic Chinese government and policy bank bonds into the Bloomberg Global Aggregate in April. We expect that the latter will make investment into RMB bonds a much more mainstream activity for global investors and one which will encourage significant flows into the market. Portfolio strategy The fund registered returns in positive territories in January, benefitted mainly from the broadly lower offshore RMB bond yields. The fund s exposure to credit also added value, with exposure to the Chinese property sector and banks contributed the most. Meanwhile, the fund s exposure to US dollar detracted as the currency weakened against the renminbi over the month. During the month, we continued to diversify the fund into USD Chinese credit, particularly in the property and industrials sectors. Meanwhile, we also added to selected offshore RMB denominated issues in the China oil & gas as well as Japan financial sectors. As of the end of the month, the fund held about 12% in USD denominated Chinese bonds, increased by about 3% over the month as we continued find names in this market with attractive relatively values. These trades were mostly funded by trimming exposure to offshore RMB denominated Chinese industrial names. The strategy in corporate bonds continues to emphasise bottom up analysis to select bonds with good relative value, but low probability of default. We continue to favour bonds with good quality credit such as state-own-enterprises that are strategically important and have good standalone credit fundamentals.

4 HSBC Collective Investment Trust - HSBC All China Bond Fund Share Class 31 Jan 2019 Important Information This document is prepared for general information purposes only and does not have any regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive it. Any views and opinions expressed are subject to change without notice. This document does not constitute an offering document and should not be construed as a recommendation, an offer to sell or the solicitation of an offer to purchase or subscribe to any investment. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC Global Asset Management (Hong Kong) Limited ( AMHK ) accepts no liability for any failure to meet such forecast, projection or target. AMHK has based this document on information obtained from sources it reasonably believes to be reliable. However, AMHK does not warrant, guarantee or represent, expressly or by implication, the accuracy, validity or completeness of such information. Investment involves risk. Past performance is not indicative of future performance. Please refer to the offering document for further details including the risk factors. This document has not been reviewed by the Securities and Futures Commission. Copyright HSBC Global Asset Management (Hong Kong) Limited All rights reserved. This document is issued by HSBC Global Asset Management (Hong Kong) Limited.

5 HSBC Collective Investment Trust - HSBC All China Bond Fund Share Class 31 Jan 2019 Terms of Glossary Convertible bond: is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value. Corporate bond: is bond issued by a company in order to raise financing. Coupon: the annual interest rate paid on a bond, expressed as a percentage of the face value. Credit quality: one of the principal criteria for judging the investment quality of a bond or bond mutual fund. Developed markets: countries that are most developed in terms of its economy and capital markets. Duration: a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Emerging markets (EM): nations' economies in the process of fast economic growth. Investments in emerging markets are generally considered to be with higher risk. Government bond or Gilt: a loan to a national government in return for regular payments (known as the coupon) and a promise that the original investment (principal) is paid back at a specified date. Gilts are loans to the UK government. High yield bond / Non-investment grade bond: fixed income security with a low credit rating from a recognised credit rating agency. They are considered to be at higher risk of default, but have the potential for higher rewards. Information ratio: is a ratio of portfolio returns above/under the returns of a benchmark to the volatility of those returns. Investment grade bond: is considered investment grade or IG if its credit rating is BBB- or higher by Standard & Poor's or Baa3 or higher by Moody's. Maturity: the period of time for which a financial instrument remains outstanding. Effective Duration: is a duration value based on the probability of early redemption call by the bond issuer. Sharpe ratio: a measure for calculating risk-adjusted return, and this ratio has become the industry standard for such calculations. Tracking error: a measure of how closely a portfolio follows the index to which it is benchmarked. Volatility: a measure of how much a fund's price goes up or down as a percentage of its average performance. Yield to maturity: the total return anticipated on a bond if the bond is held until the end of its lifetime, excluding strategic currency hedges for Portfolio/Benchmark calculations. Number is shown in percentage. Portfolio Yield: the lowest potential yield that can be received on a bond without the issuer actually defaulting, excluding strategic currency hedges for Portfolio/Benchmark calculations. Number is shown in percentage.

6 HSBC Collective Investment Trust - HSBC All China Bond Fund Supplement Information Sheet 31 Jan 2019 Share Class ACRMB ACUSD AM2USD AM2USD AM2USD AM2USD AM2USD AM2USD AM2USD AM2USD AM2USD AM2USD Base Currency CNH USD USD USD USD USD USD USD USD USD USD USD Distribution Frequency Dividend ex-date Dividend Amount Annualised Yield (Distribution is not guaranteed and may be paid out of capital) Monthly 31 Jan % Monthly 28 Dec % Monthly 30 Nov % Monthly 31 Oct % Monthly 28 Sep % Monthly 31 Aug % Monthly 31 Jul % Monthly 29 Jun % Monthly 31 May % Monthly 27 Apr % Monthly 29 Mar % Monthly 28 Feb % Monthly 31 Jan % Monthly 28 Dec % Monthly 30 Nov % Monthly 31 Oct % Monthly 28 Sep % Monthly 31 Aug % Monthly 31 Jul % Monthly 29 Jun % Monthly 31 May % Monthly 27 Apr % Monthly 29 Mar % Monthly 28 Feb % Monthly 31 Jan % Monthly 28 Dec % Monthly 30 Nov % Monthly 31 Oct % Monthly 28 Sep % Monthly 31 Aug % Monthly 31 Jul % Monthly 29 Jun % Monthly 31 May % Monthly 27 Apr % AM2USD USD Monthly 29 Mar % AM2USD USD Monthly 28 Feb % The above table cites the last dividend paid within the last 12 months only. Dividend is not guaranteed and may be paid out of capital, which will result in capital erosion and reduction in net asset value. A positive distribution yield does not imply a positive return. Past payout yields and payments do not represent future payout yields and payments. Historical payments may be comprised of both distributed income and capital. The calculation method of annualised yield: (dividend value / NAV per share or unit as of ex-dividend date) x n, n depends on the distributing frequency. Annually distribution is 1; semi-annually distribution is 2; quarterly distribution is 4; monthly distribution is 12. The annualised dividend yield is calculated based on the dividend distribution on the relevant date with dividend reinvested, and may be higher or lower than the actual annual dividend yield.

7 滙豐集合投資信託 - 滙豐全方位中國債券基金 H 股份類別 2019 年 1 月 31 日 31/01/2019 風險披露 本基金主要投資於在岸及離岸中國債券 本基金涉及與投資於新興市場有關的風險 本基金可透過各項市場准入計劃投資於中國在岸證券 該等投資涉及額外風險, 包括與中國稅務規則和慣例有關的風險 城投債 ( 由中國地方政府融資平台發行 ) 非投資級別債券及未獲評級債券涉及額外風險及波動性 由於本基金的基本貨幣 投資及份額類別可按不同的貨幣計值, 故此, 外匯管制及匯率波動可能對投資者構成不利影響 本基金可從資本中或未扣除開支前撥付股息 派息不獲保證及會導致資本蠶食及資產淨值減少 本基金之投資可能涉及重大的信貸 貨幣 波動性 流動性 利率 稅務及政治風險 投資者投資於本基金可能蒙受重大損失 基金產品並不等同於定期存款 投資者不應僅就此文件提供之資料作出投資決定, 而應細閱本基金之銷售文件 基金投資目標及策略投資目標本基金的目標是透過主要投資於中國固定收益證券的投資組合, 以取得總回報 ( 即通過收益及資本增值 ) 投資策略經理人透過積極管理期限 期限結構 行業分配 及信貸甄選 ( 如適用 ), 以尋求達致投資回報 成立至今表現 (%) 基金表現 (%) 年初至今 1 個月 基金 3 個月 1 年 3 年 ¹ 5 年 ¹ 股份類別詳情 UCITS V 合規派息類型派息頻率交易頻率 首次認購費最高達管理費基本貨幣註冊地 ISIN 代號股份類別成立日期 否派息每日 最低初始認購額在岸人民幣 10, % 1.10% 在岸人民幣香港 HK 年 7 月 14 日 每股資產淨值 在岸人民幣 9.43 基金規模 離岸人民幣 133,046,026 彭博代號 HCFIAMR HK 年度回報表現 (%)² Gregory Suen 基金經理 Alfred Mui 過去的業績並不代表將來的表現 表現以股份類別基本貨幣計算, 資產淨值對資產淨值, 將股息再作投資, 並已扣除費用 如投資業績非以港元或美元計算, 以港元或美元作投資 1 當計算期超過一年, 業績為累積表現 的投資者須承受匯率波動的風險 2 如股份類別成立少於五年, 其首年年度表現為資料來源 : 滙豐環球投資管理, 數據截至 2019 年 1 月 31 日成立日至年底 對本基金表現可能有重大影響的變動 :2017 年 7 月 1 日 - 調低受託人費用 2018 年 7 月 3 日 - 更改基金名稱及投資目標 2018 年 11 月 16 日 - 變更收取首次認購費 / 轉換費的方式 從此處下載銷售文件 ts/english/amhk_hcit.pdf

8 滙豐集合投資信託 - 滙豐全方位中國債券基金股份類別 2019 年 1 月 31 日 3 年風險衡量指標 5 年風險衡量指標 波幅 2.93% 波幅 - 夏普比率 夏普比率 - 投資組合特點 基金 投資組合特點 基金 持倉數量 ( 不包括現金 ) 37 平均到期收益率 4.76 平均票息 5.05 現時收益率 ( 未扣除開支 ) 有效存續期 3.07 平均到期日 3.45 投資組合收益率 4.72 發行人數量 35 行業分佈 (%) 基金到期日分佈 ( 有效存續期 ) 基金 工業 年 0.25 房地產 年 1.62 金融投資服務 年 1.05 消費類, 週期 年 0.14 銀行 總計 3.07 消費類, 非週期 7.81 排序根據到期日期限由長至短 多元化金融服務 7.23 政府 6.83 能源 1.69 現金 根據權重的市值由大至小排序 十大持倉 (%) 比重 (%) CHINA RAILWAY CORP /05/ CHENGDU RAIL TRANS 5.18% MTN /06/ CHINA NATIONAL MAT 5.35% MTN /11/ TIANJIN PORT GROUP CO LTD /11/ WEICHAI HOLDING GROUP CO LT /03/ JIANGXI EXPRESSWAY INVESTME /06/ HUNAN PROVINCIAL RAILWAY IN /04/ NANJING STATE OWNED ASSE /03/ EXPORT-IMPORT BANK OF CHINA /05/ STATE DEV BANK OF CHINA /01/ 有效存續期並不包括利率期貨 債券期貨以及利率掉期的超額收益 資料來源 : 滙豐環球投資管理, 數據截至 2019 年 1 月 31 日

9 滙豐集合投資信託 - 滙豐全方位中國債券基金股份類別 2019 年 1 月 31 日 重要資訊本文件只提供一般性資料, 並不針對任何可能收到本文件的人士的具體投資目標 財務狀況和特別需求 在此表達之意見可因應情況修改而不作另行通知 本文件並非銷售文件, 且不構成建議 要約出售或招攬購買或認購任何投資 本文件所載任何預測 預計或目標僅供説明用途, 且並非任何形式的保證 滙豐環球投資管理 ( 香港 ) 有限公司 ( 滙豐環球投資管理 ) 就預測 預計或目標未能達成概不承擔任何責任 本文件內的資料乃取自滙豐環球投資管理合理地相信可靠的來源 然而, 無論明示或暗示, 滙豐環球投資管理不保證 擔保或代表本文件內該等資料的準確性 有效性或完整性 投資附帶風險, 過去的業績並不代表將來的表現 請參閱銷售文件以便獲取其它資料, 包括風險因素 此文件並未經證券及期貨事務監察委員會批閱 版權 HSBC Global Asset Management (Hong Kong) Limited ( 滙豐環球投資管理 ( 香港 ) 有限公司 )2019 版權所有 本文件由 HSBC Global Asset Management (Hong Kong) Limited ( 滙豐環球投資管理 ( 香港 ) 有限公司 ) 刊發

10 滙豐集合投資信託 - 滙豐全方位中國債券基金股份類別 2019 年 1 月 31 日 詞彙表可換股債券 : 持有人可轉換成發行公司特定數量普通股或等同現金值的一種債券 企業債券 : 公司所發行用以融資的債券 票息 : 對債券支付的年利率, 表現為面值的百分比 信貸質素 : 判斷債券或債券互惠基金投資質素的主要準則之一 發達市場 : 在經濟和資本市場方面最發達的國家 存續期 : 一個量度一項定息投資的價格 ( 本金值 ) 對利率變化的敏感度之數值 新興市場 : 此等國家的經濟正經歷快速增長 投資於新興市場通常被認為是風險較高 政府債券或金邊債券 : 一種予某國家政府的貸款, 以換取定期付款 ( 稱為票息 ), 以及承諾原有投資 ( 本金 ) 將在指定的日期償還 金邊債券為一種予英國政府的貸款 高收益債券 非投資級別債券 : 獲認可評級機構賦予較低信貸評級的固定收益證券 該等證券被視為具有更高的違約風險, 但回報潛力亦更大 信息比率 : 是一個投資組合的回報高於 / 低於某個基準相對於此等回報的波動性之比率 投資級別債券 : 如其信貸評級為標準普爾的 BBB- 或以上, 或穆迪的 Baa3 或以上, 將被認為是投資級別或 IG 期限 : 為一項金融投資工具仍未償付的期間 有效存續期 : 是根據債券發行人提早贖回的機率計算的存續期值 夏普比率 : 作爲計算風險調整後回報的衡量指標, 並為業内的計算標準 追踪誤差 : 量度一個投資組合追踪其基準指數的密切程度 波幅 : 作爲衡量基金的價格變動 ( 上升或下跌 ) 相對基金平均表現的百分比 到期收益率 : 一隻債券持有直至到期的預期總回報, 不包括投資組合 基準計算的戰略貨幣對沖 數據以百分比表示 投資組合收益率 : 一隻債券在發行人實際上並無違約時的最低潛在收益率, 不包括投資組合 基準計算的戰略貨幣對沖 數據以百分比表示

11 滙豐集合投資信託 - 滙豐全方位中國債券基金 補充資料 2019 年 1 月 31 日 股份類別基本貨幣派息頻率除息日 ACRMB ACUSD 在岸人民幣在岸人民幣在岸人民幣在岸人民幣在岸人民幣在岸人民幣在岸人民幣在岸人民幣在岸人民幣 在岸人民幣在岸人民幣在岸人民幣離岸人民幣美元港元港元 每股股息 年化股息率 ( 派息不獲保證及可從股本中分派 ) 2019 年 1 月 31 日 % 2018 年 12 月 28 日 % 2018 年 11 月 30 日 % 2018 年 10 月 31 日 % 2018 年 9 月 28 日 % 2018 年 8 月 31 日 % 2018 年 7 月 31 日 % 2018 年 6 月 29 日 % 2018 年 5 月 31 日 % 2018 年 4 月 27 日 % 2018 年 3 月 29 日 % 2018 年 2 月 28 日 % 年 1 月 31 日 % 2018 年 12 月 28 日 % 港元 2018 年 11 月 30 日 % 港元 2018 年 10 月 31 日 % 港元 2018 年 9 月 28 日 % 港元 2018 年 8 月 31 日 % 港元 2018 年 7 月 31 日 % 港元 2018 年 6 月 29 日 % 港元 2018 年 5 月 31 日 % 港元 2018 年 4 月 27 日 % 港元 2018 年 3 月 29 日 % 港元 2018 年 2 月 28 日 % 2019 年 1 月 31 日 % 2018 年 12 月 28 日 % 2018 年 11 月 30 日 % 2018 年 10 月 31 日 % 2018 年 9 月 28 日 % 2018 年 8 月 31 日 % 2018 年 7 月 31 日 % 2018 年 6 月 29 日 % 2018 年 5 月 31 日 % 2018 年 4 月 27 日 % 2018 年 3 月 29 日 % 2018 年 2 月 28 日 % 以上表格只提供過去 12 個月內最近的股息資料 派息不獲保證及可從股本中分派, 導致資本侵蝕以及資產淨值的減少 正股息派發不代表正回 報 過去的支付收益率和付款不代表未來的支付收益率和付款 歷史付款可以包括分配的收入和資本 年化股息率的計算方法 :( 股息 除息日的基金每股淨值價格 )x n n 視乎派息頻率 每年派息為 1; 每半年派息為 2; 每季派息為 4; 派息為 12 年化股息率乃基於在有關日期的股息並將股息再作投資計算, 可能高於或低過實際全年派息率

12 PRODUCT KEY FACTS 產品資料概要 HSBC Collective Investment Trust HSBC All China Bond Fund 滙豐集合投資信託 滙豐全方位中國債券基金 January 年 1 月 This statement provides you with key information about the HSBC All China Bond Fund 本概要提供有關滙豐全方位中國債券基金的重要資料 This statement is part of the offering document 本概要是銷售文件的一部分 You should not invest in this product based on this statement alone 投資者切勿單憑本概要作投資決定 Quick facts 基本資料 Fund manager 基金經理 Investment adviser / RQFII holder 投資顧問 / RQFII 持有人 Trustee 受託人 RQFII Custodian / RQFII 託管人 Ongoing charges over a year^ 過去一年經常性開支比率 ^ Dealing frequency 進行交易 Base currency 基本貨幣 Dividend policy 股息政策 Financial year end 財政年度終結日 Minimum investment (initial and subsequent) 最低認購額 ( 首次及其後投資額 ) Minimum holding 最低持有額 Minimum redemption 最低贖回額 HSBC Investment Funds (Hong Kong) Limited / 滙豐投資基金 ( 香港 ) 有限公司 HSBC Global Asset Management (Hong Kong) Limited (Internal delegation, HK) / 滙豐環球投資管理 ( 香港 ) 有限公司 ( 內部委託, 香港 ) HSBC Institutional Trust Services (Asia) Limited / 滙豐機構信託服務 ( 亞洲 ) 有限公司 Bank of Communications Co., Ltd. / 交通銀行股份有限公司 Class AM2 RMB / AM2 類 人民幣 2.02% Class AC RMB / AC 類 人民幣 1.99% Class AM2 USD / AM2 類 美元 2.03% Class AC USD / AC 類 美元 2.02% Class AM2 / AM2 類 港元 2.04% Class AC / AC 類 港元 2.02% Daily on every dealing day, i.e. each business day on which banks in Mainland China and Hong Kong are normally open for business / 每一個交易日, 即中國內地及香港的銀行通常開放營業的各營業日 RMB/ 人民幣 Class AM2: The Manager aims to declare dividends monthly on a discretionary basis, and if declared, dividends will be paid monthly. Dividends may be paid out of the capital or effectively out of capital # of the relevant Class. Payment of dividends out of capital or effectively out of capital may result in an immediate reduction of the net asset value of the relevant Class. / AM2 類 : 經理人旨在按酌情基準宣派股息, 如宣派, 將會派發股息 股息可從相 # 關類別的資本或實際上從相關類別的資本中支付 從資本中或實際上從資本中撥付股息, 可能導致相關類別的資產淨值即時減少 Class AC: No dividends will be declared or paid. / AC 類 : 不宣派或派付任何股息 31 March / 3 月 31 日 Class A - US$1,000 or HK$10,000 or RMB10,000 A 類 - 1,000 美元或 10,000 港元或人民幣 10,000 元 Class A - US$1,000 or HK$10,000 or RMB10,000 A 類 - 1,000 美元或 10,000 港元或人民幣 10,000 元 Class A - US$1,000 or HK$10,000 or RMB10,000 A 類 - 1,000 美元或 10,000 港元或人民幣 10,000 元 # The Manager may at its discretion pay dividend out of gross income while charging / paying all or part of the Sub-Fund s fees and expenses to / out of the capital of the Sub-Fund (resulting in an increase in distributable income for the payment of dividends by the Sub-Fund), and thereby effectively pay distributions out of capital of the Sub-Fund. 經理人可酌情決定從總收入撥付股息, 同時從本附屬基金的資本中扣除 / 支付本附屬基金的全部或部分費用及開支 ( 導致可供本附屬基金支付股息的可分派收入增加 ), 因此實際上從本附屬基金的資本中支付股息 ^ The figure is based on the annualized ongoing expenses chargeable to the class in accordance with the interim financial statement for the 6-month period ended 30 September 2017 and is expressed as a percentage of the average net asset value of such class over the same period. This figure may vary from year to year. 此數字乃根據截至 2017 年 9 月 30 日止六個月的中期財務報表可向類別收取的年率化經常性開支, 並以佔該類別同期的平均資產淨值的百分比表示 此數字每年均可能有所變動

13 What is this product? 本附屬基金是甚麼產品? HSBC All China Bond Fund is constituted in the form of a unit trust. It is a sub-fund (the Sub-Fund ) of an umbrella fund, HSBC Collective Investment Trust. 滙豐全方位中國債券基金以單位信託基金形式組成 上述基金屬傘子基金 滙豐集合投資信託的附屬基金 ( 附屬基金 ) Objectives and Investment Strategy 目標及投資策略 Investment Objective 投資目標 The Sub-Fund aims to invest for total return (i.e. via both income and capital appreciation), through investments primarily in a portfolio of onshore and offshore Mainland Chinese fixed income securities. 本附屬基金的目標是透過主要投資於中國內地境內及境外固定收益證券的投資組合, 以取得總回報 ( 即通過收益及資本增值 ) The Sub-Fund invests primarily in fixed income securities including: offshore fixed income securities denominated in any currencies and issued outside of Mainland China by Mainland China government or Mainland China companies; offshore RMB denominated fixed income securities issued outside of the Mainland China by non-mainland China entities; onshore fixed income securities denominated in RMB, issued within Mainland China and traded on the China Interbank Bond Market ( CIBM ) through Bond Connect 1, the RQFII quota of the Investment Adviser and/or other means as may be permitted by the relevant regulations from time to time; onshore exchange traded fixed income securities issued within Mainland China and traded on the stock exchanges in Mainland China through the RQFII quota of the Investment Adviser. 本附屬基金主要投資於固定收益證券, 包括 : 由中國內地政府或中國內地公司在中國內地境外發行以任何貨幣計值的境外固定收益證券; 由非中國內地實體在中國內地境外發行的境外人民幣計值固定收益證券; 透過債券通 1 投資顧問的 RQFII 額度及 / 或相關規例不時准許的其他方式投資於在中國內地境內發行並在中國銀行間債市場 ( 中國銀行間債券市場 ) 買賣的境內人民幣計值固定收益證券; 透過投資顧問的 RQFII 額度投資於在中國內地境內發行並在中國內地證券交易所買賣的境內交易所交易固定收益證券 Investment Policy 投資政策 The Sub-Fund may invest up to 100% of its net asset value in offshore fixed income and other similar securities (including but not limited to bonds and certificate of deposits) which are either issued or guaranteed by governments, government agencies and supranational bodies or by companies. 本附屬基金可將其資產淨值最多 100% 投資於由政府 政府機構及超國家機構或公司發行或擔保的境外固定收益及其他類似證券 ( 包括但不限於債券及存款證 ) The Sub-Fund may invest up to 100% of its net asset value in onshore fixed income securities traded on the CIBM and / or the stock exchanges in Mainland China (for example, bonds issued by Mainland China central government, quasi-central government organisations and central government agencies in Mainland China and supranational bodies, municipal and local governments, companies and policy banks and urban investment bonds). Urban investment bonds are debt instruments issued by local government financing vehicles ( LGFVs ) and traded in the CIBM and the listed bond markets in Mainland China. These LGFVs are separate legal entities established by local governments and / or their affiliates to raise financing for local development, public welfare investment and infrastructure projects. 本附屬基金可將其資產淨值最多 100% 投資於在中國銀行間債券市場及 / 或中國內地證券交易所買賣的境內固定收益證券 ( 例如由中國內地中央政府 半中央政府組織及中國內地的中央政府機構及超國家組織 以及市政府及地方政府 公司及政策性銀行發行的債券, 以及城投債 ) 城投債是由地方政府融資平台 ( 地方政府融資平台 ) 發行, 並在中國銀行間債券市場及中國內地上市債券市場買賣的債務工具 此等地方政府融資平台是由地方政府及 / 或其聯屬公司成立, 以為地方發展 公益投資及基建項目籌集資金的獨立法律實體 The Sub-Fund may invest in convertible bonds in the offshore and onshore markets for up to 10% of its net asset value. 本附屬基金可將其資產淨值最多 10% 投資於境外及境內市場的可轉換債券 The Sub-Fund may invest up to 10% of its net asset value in contingent convertible securities; however such investment is not expected to exceed 5%. 本附屬基金可將其資產淨值最多 10% 投資於或有可轉換證券, 惟預期不會超過 5% The Sub-Fund does not have explicit restrictions on the minimum credit ratings of securities it may hold. Investment grade fixed income securities are rated at least Baa3 / BBB- by Moody s, Standard & Poor s, or any other internationally recognised credit rating agency. 本附屬基金並無對其可能持有的證券設置明確的最低信貸評級限制 投資級別固定收益證券指獲穆迪 標準普爾或任何其他國際公認信貸評級機構評為至少 Baa3 BBB- 級別 1 Bond Connect is a new initiative launched in July 2017 for mutual bond market access between Hong Kong and Mainland China established by China Foreign Exchange Trade System & National Interbank Funding Centre and Hong Kong Exchanges and Clearing Limited (amongst others). 債券通乃由中國外匯交易中心暨全國銀行間同業拆借中心與香港交易及結算所有限公司 ( 及其他方 ) 於 2017 年 7 月推出的中國內地與香港債券市場互聯互通合作的全新計劃 2

14 The aggregate investment in securities that are:- 1. rated below investment grade as defined above; 2. rated BB+ or below (in case where the credit rating is designated / assigned by a Mainland China local credit rating agency); or 3. unrated (i.e. a bond for which neither the bond itself nor its issuer has a credit rating) is up to 45% of the Sub-Fund s net asset value. 於下列證券的總投資最多為本附屬基金資產淨值的 45% : 1. 被評為低於投資級別 ( 按上文界定 ) ; 2. 被評為 BB+ 或以下 ( 信貸評級由中國內地本地信貸評級機構指定 / 給予 ) ;或 3. 未評級 ( 即債券本身或其發行人並無信貸評級 ) Notwithstanding the foregoing, the Sub-Fund will not invest more than 10% of its net asset value in the onshore securities which are rated BB+ or below (assigned by a Mainland China local credit rating agency) or unrated. 儘管有上文所述, 本附屬基金投資於被評為 BB+ 或以下 ( 由中國內地本地信貸評級機構給予 ) 或未獲評級的中國內地境內證券, 將不會多於其資產淨值的 10% The Sub-Fund may also invest in Underlying Funds 2 (including but not limited to the Underlying Funds which are authorised by the CSRC for investment by the retail public in Mainland China) which primarily invest in fixed income securities or money market instruments, including exchange traded funds. Such investment will not in aggregate exceed 10% of the Sub-Fund s net asset value. 本附屬基金亦可投資於主要投資於固定收益證券或貨幣市場工具的相關基金 2 ( 包括但不限於經中國證監會核准可供中國內地零售公眾投資的相關基金 ), 包括交易所買賣基金 該等投資將合共不超過本附屬基金資產淨值的 10% The Sub-Fund s primary currency exposure is to the RMB but may also have exposure to non-rmb currencies through direct holding of fixed income securities, cash and/or deposits. The Manager will hedge back such non-rmb positions so that the non-rmb exposure of the Sub-Fund will be up to 30% of its net asset value. For the avoidance of doubt, the Sub-Fund may also invest up to 10% of its net asset value in cash, money market instruments and bank deposits within or outside of Mainland China for liquidity purposes. 本附屬基金的主要貨幣投資為人民幣, 但亦可透過直接持有固定收益證券 現金及 / 或存款而投資於非人民幣貨幣 經理人將對沖該等非人民幣倉盤, 致使本附屬基金的非人民幣投資將最多為其資產淨值的 30% 為免生疑問, 本附屬基金亦可為流動性目的而將其資產淨值最多 10% 投資於中國內地境內外的現金 貨幣市場工具及銀行存款 The Sub-Fund will invest in structured products and derivative instruments for hedging purposes only. 本附屬基金將只為對沖目的而投資於結構性產品及衍生工具 The Sub-Fund will not invest in equity securities. 本附屬基金將不會投資於股本證券 The Sub-Fund will not acquire any asset backed securities including asset backed commercial papers. The Sub-Fund will not engage in securities lending, repurchase or reverse repurchase transactions or similar over-the-counter transactions in respect of the Sub-Fund. Prior approval will be obtained from the SFC and at least one month s prior notice will be provided to Unitholders if the Sub-Fund engages in any such transactions. 本附屬基金將不會購入任何資產抵押證券, 包括資產抵押商業票據 本附屬基金將不會就本附屬基金從事證券借出 購回或反向購回交易或類似的場外交易 如果本附屬基金從事任何該等交易, 將事先取得證監會的批准, 並向單位持有人提供至少一個月的事先通知 2 Underlying Funds refer to the collective investment schemes in which the Sub-Fund may invest, including unit trusts and mutual funds. 相關基金指附屬基金可能投資的集合投資計劃, 包括單位信託基金及互惠基金 3

15 Indicative allocation and classification of the Sub-Fund s investment: 本附屬基金的投資的指示性分配及分類 : By Type of instrument 工具類型 Indicative percentage (as a percentage of the Sub-Fund s net asset value) 指示性百分比 ( 佔本附屬基金資產淨值的百分比 ) Onshore fixed income securities including: 0-100% 境內固定收益證券, 包括 : (i) municipal / local government bonds 市政府 / 地方政府債券 (ii) corporate and enterprises bonds 公司及企業債券 (iii) policy bank bonds 政策性銀行債券 (iv) fixed income securities issued or guaranteed by Mainland China central government, quasi-central government organizations and central government agencies in Mainland China and supranational bodies 由中國內地中央政府 半中央政府組織及中國內地中央政府機構及超國家機構發行或擔保的固定收益證券 Onshore Urban investment bonds 境內城投債 0-100% Offshore fixed income securities issued by Mainland China government or 0-100% Mainland China companies 由中國內地政府或中國內地公司發行的境外固定收益證券 Offshore RMB denominated fixed income securities by non-mainland China entities 由非中國內地實體發行的境外人民幣計值固定收益證券 0-100% Convertible bonds (onshore or offshore) 可轉換債券 ( 境內或境外 ) 0-10% Contingent convertible securities 或有可轉換證券 0-10% Underlying Funds authorised by the CSRC for investment by the retail public in Mainland China or other eligible offshore Underlying Funds 經中國證監會核准可供中國內地零售公眾投資的相關基金或其他合資格境外相關基金 Cash, money market instruments and bank deposits (onshore or offshore) for liquidity purposes 現金 貨幣市場工具及銀行存款 ( 境內或境外 ) 作流動性目的 By Currency Exposure 貨幣投資 0-10% 0-10% RMB 人民幣 % USD, or other currencies 美元 港元或其他貨幣 0-30% Investment Strategy 投資策略 The Manager seeks to achieve investment returns through active management of duration, term structure, sector allocation and credit selection where applicable. For bonds issued by local government financing vehicles, the Manager adopts a top-down approach and selects securities by qualitative and quantitative methods. 經理人透過積極管理期限 期限結構 行業分配 及信貸甄選 ( 如適用 ), 以尋求達致投資回報 就地方政府融資平台所發行的債券而言, 經理人採用自上而下的方法, 並透過定性及定量方法挑選證券 4

16 What are the Key Risks? 本附屬基金有哪些主要風險? Investments involve risks. Please refer to the offering document for details including risk factors. 投資附帶風險 請參閱銷售文件以便獲取其他資料, 包括風險因素 Investment risk 投資風險 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 you may suffer losses by investing in the Sub-Fund. 本附屬基金為投資基金 本附屬基金的投資組合內的投資價值有機會因以下任何主要風險因素而下跌, 故閣下投資於本附屬基金亦可能會蒙受虧損 Investing in the Sub-Fund is not the same as deposits with a bank. There is no guarantee in respect of repayment of principal. There is no guarantee on regular distribution of dividends. 投資於本附屬基金有別於在銀行存款 概不保證可償還本金 並不保證將定期分派股息 There is no guarantee that the Sub-Fund s investment objective can be achieved. 概無保證能達致本附屬基金的投資目標 Risks relating to the Mainland China market: 有關中國內地市場的風險 : Single market risk / Mainland China market risk 單一市場風險 / 中國內地市場風險 The Sub-Fund invests primarily in Mainland China markets which involve higher concentration risks. The value of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio of investments. 本附屬基金主要投資於中國內地市場, 而中國內地市場涉及較高的集中風險 相比具有更多元化投資組合的基金, 本附屬基金的價值可能會較為波動 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 Mainland China markets. 本附屬基金的價值可能較容易受到影響中國內地市場的不利經濟 政治 政策 外匯 流動性 稅務 法律或監管事件的影響 Mainland Chinese tax risk 中國內地稅務風險 Based on professional tax advice, the Manager does not intend to provide for any Mainland China tax liabilities in respect of the capital gains derived by the Sub-Fund from disposal of Mainland China debt securities; however, the Sub-Fund will make a corporate income tax provision of 10% on interest from its investments in debt securities issued by Mainland China tax resident enterprises, if it was not withheld at source nor borne by the bond issuers (except (i) interests from investments in Mainland China onshore bonds received from 7 November 2018 to 6 November 2021 and (ii) interests from Mainland China government bonds and local government bonds). 根據專業稅務意見, 經理人不擬就本附屬基金從處置中國內地債務證券所得資本收益所產生的任何中國內地稅務負擔作出撥備;然而, 本附屬基金將就其投資於由中國內地稅務居民企業發行的債務證券的所得利息作出 10% 的企業所得稅撥備 ( 如未從源頭預扣或並非由債券發行人承擔 ), 惟 (i) 於 2018 年 11 月 7 日至 2021 年 11 月 6 日從投資於中國內地境內債券收取的利息及 (ii) 從中國內地政府債券及地方政府債券所得利息除外 The Manager (after taking tax advice) has decided to make a VAT provision on coupon interest to be derived from Mainland China onshore non-government bonds and offshore bonds issued by Mainland China tax resident companies, provided that such VAT is not borne by the bond issuers (except interests from investments in Mainland China onshore bonds received from 7 November 2018 to 6 November 2021). 經理人 ( 經考慮稅務意見後 ) 已決定就從中國內地稅務居民公司所發行的中國內地境內非政府債券及境外債券衍生的票息利息作出增值稅撥備, 惟前提是該增值稅並非由債券發行人承擔 ( 惟於 2018 年 11 月 7 日至 2021 年 11 月 6 日從投資於中國內地境內債券所得利息除外 ) Investors should note that any provisions, if made, may be excessive or inadequate to meet the actual tax liabilities. In case of any shortfall between the provisions and actual tax liabilities, which will be debited from the Sub-Fund s assets, the net asset value of the Sub-Fund will therefore be adversely affected. 投資者應注意, 任何該等稅項撥備 ( 如有作出 ) 可能超出或不足以應付實際稅務負擔 如稅項撥備與實際稅務負債之間有任何差額, 將從本附屬基金的資產中扣除, 因此, 本附屬基金的資產淨值將會受到不利影響 In the event that it is satisfied (based on tax advice) that part of the tax provisions are not required, the Manager will arrange with the Trustee to release such provisions back into the Sub-Fund. However, Unitholders who have redeemed their holdings will not be entitled to such release of excess provisions, which will be reflected in the value of the Units. 倘若根據稅務意見信納毋需作出部分的稅項撥備, 則經理人將與受託人作出安排, 把該等撥備金撥回予本附屬基金 然而, 已贖回所持單位的單位持有人將無權獲得該等超額稅項撥備 ( 將反映於單位的價值 ) 之撥回 Emerging market risk 新興市場風險 The Sub-Fund invests primarily in the Mainland China markets which are considered as emerging markets. Investing in emerging markets involves a greater risk of loss than investing in more developed markets due to, among other factors, greater political, tax, economic, foreign exchange, liquidity, market volatility (such as interest rate and price volatility), settlement risks, custody risk, legal and regulatory risks. The Sub- Fund s investment in emerging markets may be subject to significant losses. The net asset value of the Sub-Fund may be adversely affected, and, as result, investors may suffer a loss in their investment in the Sub-Fund. 本附屬基金主要投資於中國內地市場, 而中國內地市場被視為新興市場 相對較成熟市場, 投資於新興市場須承受較高損失的風險, 原因是涉及 ( 其中包括 ) 較高的政治 稅務 經濟 外匯 流動性 市場波動 ( 如利率及價格波動 ) 結算風險 託管風險 法律及監管風險 本附屬基金在新興市場的投資可能會蒙受重大損失 本附屬基金的資產淨值可能受到不利影響, 因此投資者於本附屬基金的投資可能蒙受損失 5

17 Early termination risk 提早結束風險 The Fund may be liquidated on the occurrence of certain events specified in the offering document. Upon liquidation, all the assets of the Fund will be realized and the net proceeds thereof which are available for distribution will be distributed to its holders in proportion to their holdings. Investors should note that the amount distributed to them may be less than the amount of their initial investment. 如出現在銷售文件中所述的某些情況, 本基金可能會被終止 當本基金被終止, 所有本基金的資產會被出售及會按持有人持有本基金的比例就可供分派的淨收入作出分派 投資者須注意獲分派的金額或會少於最初投資額 RMB currency risk 人民幣貨幣風險 RMB is currently not freely convertible and is subject to exchange controls and restrictions by the Chinese government and as the Sub-Fund s base currency is RMB, investors may be adversely affected by movements of the exchange rates between RMB and other currencies. 人民幣現時不可自由兌換, 並受中國政府的外匯管制及限制的規管, 以及由於本附屬基金的基本貨幣為人民幣, 投資者可能因人民幣與其他貨幣之間的匯率波動而受到不利影響 There is no guarantee that RMB will not depreciate and investors may suffer a loss if they convert another currency into RMB so as to invest in the Sub-Fund and subsequently convert the RMB redemption proceeds back into such other currency. 概不保證人民幣將不會貶值, 而投資者若將另一貨幣轉換為人民幣以便投資於本附屬基金, 並於其後將人民幣贖回所得款項轉換回該其他貨幣, 則投資者可能蒙受損失 Currency conversion risk for non-rmb denominated Classes 非人民幣類別的貨幣兌換風險 The Sub-Fund primarily invests in underlying securities denominated in RMB. 本附屬基金主要投資於以人民幣計值的相關證券 Dividends (for the distribution Classes of Units only) will be paid in the relevant Class Currency. Payment of dividends in a non-rmb currency may involve currency conversion from RMB to the relevant Class Currency. 股息 ( 僅就分派類別單位而言 ) 將以相關類別貨幣支付 以非人民幣貨幣支付的股息可能涉及將人民幣兌換為相關類別貨幣 Where an investor subscribes for Units denominated in a non-rmb currency, the Manager will convert such subscriptions into RMB prior to investment at the applicable exchange rate and subject to the applicable spread. Where an investor redeems Units denominated in a non-rmb currency, the Manager will sell the Sub-Fund s investments denominated in RMB and convert such proceeds into a non-rmb currency at the applicable exchange rate and subject to the applicable spread. 當投資者認購以非人民幣貨幣計值的單位時, 經理人將按適用的匯率及在適用的差價規限下, 將該等認購款項兌為人民幣, 以作投資 倘投資者贖回以非人民幣貨幣計值的單位, 經理人將出售本附屬基金以人民幣計值的投資, 然後按適用的匯率及在適用的差價規限下, 將該等款項兌換為非人民幣貨幣 Currency conversion is also subject to the Sub-Fund s ability to convert the proceeds in RMB into a non-rmb currency which may also affect the Sub-Fund s ability to meet redemption requests from Unitholders or to make distributions, and may delay the payment of redemption proceeds or dividends. Investors will also be exposed to foreign exchange fluctuations between RMB and the relevant Class Currency and may suffer losses accordingly. 貨幣兌換亦須受本附屬基金將人民幣款項兌換為非人民幣貨幣的能力, 而這可能影響本附屬基金應付單位持有人的贖回要求或作出分派的能力, 以及可能延遲支付贖回款項或股息 投資者亦將承受人民幣與相關類別貨幣之間的外匯波動, 並可能因而蒙受損失 When calculating the net asset value of Units of a non-rmb denominated Class, the Manager will apply the exchange rate for offshore RMB market in Hong Kong, i.e. the CNH exchange rate, which may be at a premium or discount to the exchange rate for onshore RMB market in the Mainland China, i.e. the exchange rate. There may be significant trading costs incurred and investing in Classes of Units denominated in a non-rmb currency may suffer losses. The value of the Sub-Fund thus calculated may be subject to fluctuation. 當計算非人民幣類別單位的資產淨值時, 經理人將採用香港離岸人民幣市場的匯率 ( 即 CNH 匯率 ), 該匯率可能較中國內地在岸人民幣市場的匯率 ( 即 匯率 ) 有所溢價或折讓 這可能產生重大交易成本, 而於以非人民幣貨幣計值的單位類別的投資可能蒙受損失 所計算的本附屬基金價值可能因而波動 Risks associated with Bond Connect 與債券通相關的風險 Investing in the CIBM via 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 on investment in the CIBM via Bond Connect are subject to change which may have potential retrospective effect. In the event that the relevant Mainland China authorities suspend account opening or trading on the CIBM, the Sub-Fund s ability to invest in the CIBM will be adversely affected. In such event, the Sub- Fund s ability to achieve its investment objective will be negatively affected. 透過債券通投資於中國銀行間債券市場承受監管風險及多項風險, 例如波動性風險 流動性風險 結算及對手方風險, 以及通常適用於債務證券的其他風險因素 與透過債券通投資於中國銀行間債券市場相關的規則及規例或會變更, 且可能具有追溯效力 倘若在中國銀行間債券市場開立賬戶或進行交易被中國內地有關當局暫停, 則本附屬基金投資於中國銀行間債券市場的能力將受到不利影響 在該情況下, 本附屬基金達致其投資目標的能力將受到負面影響 In addition, trading through Bond Connect is performed through newly developed trading platforms and operational systems. In the event that the relevant systems fails to function properly, trading through Bond Connect may be disrupted. The Sub-Fund s ability to trade through Bond Connect (and hence to pursue its investment strategy) may therefore be adversely affected. 此外, 透過債券通進行的交易乃透過新開發的交易平台及操作系統進行 如果有關系統未能正常運作, 透過債券通進行的交易可能受到干擾 本附屬基金透過債券通進行交易 ( 從而執行其投資策略 ) 的能力可能受到不利影響 6

18 Risks relating to RQFII regime: 有關 RQFII 機制的風險 : RQFII risk RQFII 風險 The Sub-Fund invests in securities through a RQFII which is subject to applicable regulations imposed by Mainland China authorities. Although repatriations by the RQFII in respect of the Sub-Fund are currently not subject to any repatriation restrictions (such as lock up periods) or prior approval, there is no assurance that Mainland China 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. 本附屬基金透過 RQFII 投資於證券, 須受中國內地當局施加的適用規例之規限 儘管 RQFII 就本附屬基金進行的資金匯出, 目前並不受任何匯出限制 ( 例如鎖定期 ) 之規限, 亦毋需獲得事先批准, 概不保證中國內地規則及規例不會變更或在日後不會施加任何資金匯出限制 對匯出所投資的資本及淨利潤施加的任何限制, 均可能影響本附屬基金應付單位持有人的贖回要求的能力 The RQFII rules are relatively new their application 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. RQFII 規則相對較新, 其應用可能視乎中國當局的詮釋 有關規則的任何更改或會對投資者在本附屬基金的投資造成不利影響 The Investment Adviser (as RQFII) may from time to time make available RQFII quota for the purpose of the Sub-Fund s direct investment into Mainland China. The Sub-Fund may not have exclusive use of the entire RQFII quota granted by SAFE to the RQFII (i.e. the Investment Adviser), 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. 投資顧問 ( 作為 RQFII) 可不時就本附屬基金直接投資於中國內地提供 RQFII 額度 本附屬基金或許未能對外管局授予 RQFII( 即投資顧問 ) 的全部 RQFII 額度專有使用, 因為 RQFII 可酌情決定將可供本附屬基金使用的 RQFII 額度分配給其他產品 並不保證 RQFII 可向本附屬基金分配足夠的 RQFII 額度, 以應付所有認購本附屬基金單位的申請 Custodian risk / Mainland China brokerage risk 託管人風險 / 中國內地經紀風險 Investment in Mainland China through a RQFII will be subject to custodial risk of the RQFII Custodian. If the RQFII Custodian defaults, the Sub- Fund may encounter delays in recovering its assets and may incur a substantial or even a total loss. 透過 RQFII 投資於中國內地, 將須承受 RQFII 託管人的託管風險 如 RQFII 託管人違約, 則本附屬基金可能會在追討其資產上遇到延誤, 以及可能蒙受重大損失, 甚或完全虧損 The Sub-Fund may suffer losses from the default, bankruptcy or disqualification of the brokers appointed in Mainland China. In such event, the Sub-Fund may be adversely affected in the execution or settlement of any transaction or in the transfer of any funds or securities. 本附屬基金可能因在中國內地委任的經紀違約 破產或喪失資格而蒙受損失 在該情況下, 本附屬基金可能在任何交易的執行或結算或在任何資金或證券的轉移中受到不利影響 7

19 Risks relating to debt securities: 有關債務證券的風險 : Risks relating to urban investment bonds 有關城投債的風險 Urban investment bonds are issued by local government financing vehicles ( LGFVs ), such bonds are typically not guaranteed by local governments or the central government of Mainland China. In the event that the LGFVs default on payment of principal or interest of the urban investment bonds, the Sub-Fund could suffer substantial loss and the Net Asset Value of the Sub-Fund could be adversely affected. 城投債乃由地方政府融資平台發行的債務工具, 該等債券一般不獲中國內地地方政府或中央政府擔保 倘若地方政府融資平台在支付城投債的本金或利息方面違約, 本附屬基金可能會蒙受重大損失, 而本附屬基金的資產淨值可能受到不利影響 Risks relating to Dim Sum bond 有關 點心 債券的風險 Dim Sum bonds are bonds issued outside the Mainland China but denominated in RMB. The Dim Sum bond market is still a relatively small market which is more susceptible to volatility and illiquidity. The operation of the Dim Sum bond market as well as new issuances could be disrupted causing a fall in the net asset value of the Sub-Fund should there be any promulgation of new rules which limit or restrict the ability of issuers to raise RMB by way of bond issuances and/or reversal of suspension of the liberalization of the offshore RMB (CNH) market by the relevant regulator(s). 點心債券為在中國內地境外發行但以人民幣計值的債券 點心債券市場仍是一個相對較小的市場, 較容易出現波動及流通性不足的情況 倘若有關監管機構頒佈任何新規則, 以限制或局限發行人透過發行債券籌措人民幣的能力及 或取消或暫停離岸人民幣 (CNH) 市場自由化, 則點心債券市場的運作及有關新發行可能會受到干擾, 因而導致附屬基金的資產淨值下跌 Credit risk 信貸風險 The Sub-Fund is exposed to the credit / default risk of issuers of fixed income securities invested in and of counterparties with which cash is deposited or invested. Fixed income securities in which the Sub-Fund invests may be below investment grade (by internationally recognised credit rating agencies) or rated BB+ or below (by Mainland China local credit rating agencies) or unrated, and may be unsecured debt obligations not supported by any collateral. The Sub-Fund will be fully exposed to the credit / insolvency risk of its counterparties as an unsecured creditor. 本附屬基金須承受本附屬基金所投資的固定收益證券之發行人及現金所存放或投資的對手方的信貸 / 違約風險 本附屬基金所投資的固定收益證券可能被評為低於投資級別 ( 由國際認可信貸評級機構給予 ) 或評為 BB+ 或以下評級 ( 由中國內地本地信貸評級機構給予 ) 或未獲評級, 該等證券一般屬並無任何抵押品支持的無擔保債務債券 本附屬基金作為無擔保債權人, 將須完全承受其對手方的信貸 / 無力償債風險 In the event that any issuer of such securities defaults, becomes insolvent or experiences financial or economic difficulties, the value of the securities will be adversely affected. The Sub-Fund may suffer losses in its investment in such securities. 若該等證券的任何發行人違約 變成無力償債或經歷財政或經濟困難, 證券的價值將受到不利影響 本附屬基金可能在該等證券的投資上蒙受損失 Risks relating to credit rating 有關信貸評級的風險 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. 評級機構給予的信貸評級存在局限性, 且並不時刻保證該證券及 / 或發行人的信貸可信性 The Sub-Fund may invest in securities the credit ratings of which are assigned by the Chinese local credit rating agencies. However, the rating criteria and methodology used by such agencies may be different from those adopted by most of the established international credit rating agencies. Therefore, such rating system may not provide an equivalent standard for comparison with securities rated by international credit rating agencies. 本附屬基金可投資於獲中國當地信貸評級機構給予信貸評級的證券 然而, 該等評級機構所使用的評級準則及方法, 可能與大部分具權威性的國際信貸評級機構所採用的信貸評級準則及方法不同 因此, 中國當地評級制度未必可提供同等的標準與獲國際信貸評級機構評級的證券進行比較 Investors should be cautious when they refer to ratings assigned by Chinese local credit agencies, noting the differences in rating criteria mentioned above. If assessments based on credit ratings do not reflect the credit quality of and the risks inherent in a security, investors may suffer losses, possibly greater than originally envisaged. 當投資者參考由中國當地信貸機構給予的評級時, 應當審慎, 注意上述評級準則的差異 倘若根據信貸評級作出的評估, 並不反映某證券的信貸質素及固有風險, 投資者或許蒙受可能大於原先設想的損失 Sovereign debt risk 主權債務風險 The Sub-Fund s investment in securities issued or guaranteed by governments 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. 本附屬基金投資於由政府發行或擔保的證券可能面臨政治 社會及經濟風險 在不利狀況下, 主權發行人未必能夠或願意在到期應付時償還本金及 / 或利息, 或可能要求本附屬基金參與重組有關債務 倘主權債務發行人發生違約, 本附屬基金可能遭受重大損失 Downgrading Risk 評級調低風險 Debt securities may be subject to the risk of being downgraded (i.e. lowering of credit rating assigned to the securities). In the event of downgrading in the credit ratings of a security or an issuer relating to a security, the Sub-Fund s investment value in such security may be adversely affected. The Manager may or may not be able to dispose of the securities that are being downgraded. 債務證券可能須承受被調低評級的風險 ( 即證券被給予較低的信貸評級 ) 倘若某證券或有關某證券的發行人之信貸評級被調低, 則本附屬基金於該證券的投資價值可能受到不利影響 經理人不一定能夠出售評級被調低的證券 8