Guotai Junan Great Dragon RMB Funds

Transcription

1 Guotai Junan Great Dragon RMB Funds Guotai Junan Great Dragon China Fixed Income Fund INTERIM REPORT (Unaudited) Guotai Junan Assets (Asia) Limited

2 CONTENTS PAGE(S) DIRECTORY OF PARTIES 3 INVESTMENT MANAGER S REVIEW - MARKET REVIEW - MARKET OUTLOOK - SUBFUNDS PERFORMANCE STATEMENT OF MOVEMENTS IN INVESTMENT PORTFOLIO 8 INVESTMENT PORTFOLIO 9 12 STATEMENT OF ASSETS AND LIABILIITES DISTRIBUTION DISCLOSURE 15-2

3 DIRECTORY OF PARTIES Investment Manager: Guotai Junan Assets (Asia) Limited 27/F., Low Block Grand Millennium Plaza 181 Queen s Road Central Hong Kong Directors of the Manager: YIM Fung YUAN Junping Trustee and Registrar: BOCI-Prudential Trustee Limited 12/F & 25/F Citicorp Centre 18 Whitfield Road Causeway Bay, Hong Kong Auditors: Ernst & Young 22/F CITIC Tower 1 Tim Mei Avenue Central, Hong Kong Sub-Custodian in the PRC: Bank of China Limited No. 1 Fuxingmen Nei Dajie Beijing, PRC Legal Counsel to the Manager: Simmons & Simmons 13/F One Pacific Place 88 Queensway Hong Kong Auditors in the PRC: Ernst & Young Level 16 Ernst & Young Tower Oriental Plaza No.1 East Chang An Avenue Dong Cheng District Beijing, China - 3

4 INVESTMENT MANAGER S REVIEW FOR THE PERIOD ENDED 30 JUNE 2013 (UNAUDITED) MARKET REVIEW China s Economy: New generation of leaders in China took office and set the target growth rate of GDP, CPI and M2 this year at 7.5%, 3.5% and 13% respectively. Premier Li Keqiang adopted a policy of maintaining stable growth, controlling inflation, preventing risks and restructuring the economy. The People s Bank of China used repos and reinitiated the selling of treasuries to fine-tune the open market operation. The China Banking Regulatory Commission issued documents regarding the regulation of financial products and local government financing vehicles to deal with risks. The so-called Bond market storm blew in China. The liquidity of the bond market in June 2013 was stringent. The economic structure went imbalanced in which price appreciation and price depreciation occurred simultaneously in different sectors and areas. It was a market anomaly that the economy lacked momentum under an expansionary monetary policy. Global Economy: The US economy was confirmed to be in recovery. Expectations for the Fed to withdraw the Quantitative Easing grew gradually. Market consensus anticipated that the Fed would reduce its bond purchase in September this year and the Quantitative Easing would be ended in the mid of In Japan, the Abe s economics adopted a stimulus fiscal policy and an expansionary monetary policy with a target inflation rate of 2%. Europe remained mired in the European debt crisis and underwent the Cyprus deposit levy crisis. Another wave of rate cuts took place under which the European Central Bank, the Central Bank of India, the Reserve Bank of Australia, the National Bank of Poland and the Bank of Thailand implemented rate cuts. Bond Market: The bond market was not composed. The yield of interest rate bonds (10-year treasuries as its benchmark) lingered between 3.4% and 3.6%. The yield of credit bonds first fell and then rose. The yield curve became flat after steepening. The spread of credit bonds was widened under an environment of tight liquidity. The risk of credit bonds augmented. Portfolio Allocation: The position of stocks remained high but was reduced in June Trading of the convertible bonds of power plants brought positive returns to the portfolio. The position of 10-year treasuries was increased for interest rate bonds. High credit rating but short duration strategy was deployed for credit bonds. - 4

5 INVESTMENT MANAGER S REVIEW (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2013 (UNAUDITED) MARKET OUTLOOK Future outlook: China s economic growth was expected to be scaling down for a certain period of time. Under the Quantitative Easing exit plan of the Fed, the action of the People s Bank of China became critical. The monetary policy would remain stable for a long period of time. Fiscal policy gave priority to economic restructuring. Regulatory bodies would implement rigourous risk control. - 5

6 INVESTMENT MANAGER S REVIEW (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2013 (UNAUDITED) PERFORMANCE GUOTAI JUNAN GREAT DRAGON CHINA FIXED INCOME FUND 106 Guotai Junan Great Dragon China Fixed Incom e Fund 105 The Unit Price of the Sub-Fund (RMB) Date 31/12/ /1/ /2/ /3/ /4/ /5/ /6/2013 Class A Unit Class I Unit Figure 1: The daily prices movements of the Sub-Fund for the period from 31 December 2012 to 28 June 2013, measured on an ex-dividend basis. - 6

7 INVESTMENT MANAGER S REVIEW (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2013 (UNAUDITED) PERFORMANCE (CONTINUED) GUOTAI JUNAN GREAT DRAGON CHINA FIXED INCOME FUND (CONTINUTED) Indices in the Domestic Markets in the PRC and the Performance of the Sub-fund Total Return Rate in the Period (local currency) 1 H * China Bond Aggregate Total Return Index 中債總財富 ( 總值 ) 指數 CSI 300 Index 滬深 300 指數 S&P China Convertible Bond Index 中信標普可轉債指數 Guotai Junan Great Dragon China Fixed Income Fund Class A Guotai Junan Great Dragon China Fixed Income Fund Class I Table 1: The performance of the Sub-Fund and its comparable indices *Measured since the launch of the Sub-Fund as of 8 March

8 STATEMENT OF MOVEMENTS IN INVESTMENT PORTFOLIO FOR THE PERIOD ENDED 30 JUNE 2013 (UNAUDITED) GUOTAI JUNAN GREAT DRAGON FIXED INCOME FUND % of Net Assets 30 June December 2012 Fixed Income Securities China Collective Investment Schemes China Equities China

9 INVESTMENT PORTFOLIO AS AT 30 JUNE 2013 (UNAUDITED) GUOTAI JUNAN GREAT DRAGON CHINA FIXED INCOME FUND Holding / % of Nominal Accured net Value Fair Value interest asset QUOTED DEBT SECURITIES Denominated in RMB China BANK OF CHINA LTD CB 1.4% A 02JUN ,570 19,674, , BEIJING CAPITAL DEVELOPMENT HLDG GROUP CO LTD 5.95% A 29MAY ,000 10,178, , CHINA DATANG CORP RENEWABLE POWER CO LTD 5.4% A 08NOV ,990 10,198, , CHINA ELECTRONICS TECHNOLOGY GROUP CORP 4.82% A 09MAR ,000 9,972, , CHINA FIRST HEAVY INDUSTRIES CO LTD 5.14% A 20DEC ,000 2,026, , CHINA GOVT BOND 3.4% S/A 17APR ,040 9,717, , CHINA GOVT BOND 4.26% S/A 31JUL ,880 2,928, , CHINA HI-TECH GROUP CORP 5.78% A 31OCT ,000 10,187, , CHINA NONFERROUS METAL MINING GROUP CO LTD 4.97% A 28MAR ,000 10,055, , CHINA PETROLEUM & CHEM CB 1% A 23FEB ,000 9,975, , DATANG INTL POWER GENERATION CO LTD 4.1% A 03MAR ,000 9,926, , GD POWER DEVELOPMENT CO LTD CB 0.5% A 19AUG ,140 4,095, , GUANGDONG PROVINCIAL EXPRESSWAY DEVELOPMENT CO LTD 6.79% A 13OCT ,000 10,498, , HEBEI IRON & STEEL GROUP CO LTD 4.18% A 10APR ,000 9,907, , HUADIAN POWER INTL CO 3.96% A 26MAR ,000 9,910, , HUBEI ENERGY GROUP CO LTD 5.83% A 19DEC , INDUSTRIAL & COMMERCIAL BANK OF CHINA CB 0.9% A 31AUG ,690 11,217, ,

10 INVESTMENT PORTFOLIO (CONTINUED) AS AT 30 JUNE 2013 (UNAUDITED) GUOTAI JUNAN GREAT DRAGON CHINA FIXED INCOME FUND (CONTINUED) Holding / % of Nominal Accured net Value Fair Value interest asset QUOTED DEBT SECURITIES (Continued) Denominated in RMB China NANJING NEW INDUSTRIAL INVESTMENT GROUP CO LTD 5.41% A 17OCT ,000 10,118, , PEOPLE'S BANK OF CHINA 2.65% A 16JUL ,000 19,977, , SHANDONG LUXIN INVESTMENT HLDG CO LTD 5.15% A 06DEC ,000 10,039, , SHANGHAI HUAHONG GROUP CO LTD 5.77% A 15APR ,000 10,218, , SHANGHAI INTL PORT GROUP CO LTD 4.69% A 30MAR ,000 9,999, , SHANGHAI MEISHAN IRON & STEEL STOCK CO LTD 5.11% A 04MAY ,000 9,985, , SHOUGANG CORP 5.66% A 25AUG ,000 10,185, , SICHUAN EXPRESSWAY CO LTD 4.75% A 19JUN ,000 9,887, , SUNING COMMERCE GROUP CO LTD 5.2% A 14DEC ,000 2,000, , TIANJIN PORT GROUP CO LTD 4.97% A 30MAR ,000 10,045, , WUHAN RESEARCH INSTITUTE OF POST AND TELECOMMUNICATIONS 5.41% A 19OCT ,000 10,156, , XIAMEN PORT HLDG GROUP CO LTD 5.02% A 17OCT ,000 10,033, , Total quoted debt securities 273,118, ,123,

11 INVESTMENT PORTFOLIO (CONTINUED) AS AT 30 JUNE 2013 (UNAUDITED) GUOTAI JUNAN GREAT DRAGON CHINA FIXED INCOME FUND (CONTINUED) Holding / % of Nominal Accured net Value Fair Value interest asset COLLECTIVE INVESTMENT SCHEMES Denominated in RMB China E FUND SI100 INDEX FUND 26,000,000 13,728, HUATAI-PINEBRIDGE CSI 300 INDEX ETF 8,650,000 19,272, Total collective investment schemes 33,000, LISTED EQUITIES Denominated in RMB China CHINA LIFE INSURANCE CO LTD-A 170,000 2,327, CHINA PACIFIC INSURANCE (GROUP) CO LTD-A 200,000 3,186, CHINA UNITED NETWORK COMMUNICATIONS LTD-A 700,000 2,184, HEFEI DEPARTMENT STORE GROUP CO LTD-A 270,000 1,398,

12 INVESTMENT PORTFOLIO (CONTINUED) AS AT 30 JUNE 2013 (UNAUDITED) GUOTAI JUNAN GREAT DRAGON CHINA FIXED INCOME FUND (CONTINUED) Holding / % of Nominal Accured net Value Fair Value interest asset LISTED EQUITIES (continued) Denominated in RMB China NEW CHINA LIFE INSURANCE CO LTD-A 130,524 3,225, PING AN INSURANCE GROUP CO OF CHINA LTD-A 100,000 3,476, SUNING COMMERCE GROUP CO LTD-A 460,966 2,309, ZTE CORP-A 530,000 6,757, Total listed equities 24,864, TOTAL NET ASSETS Denominated in RMB Quoted Debt Securities (Cost: RMB273,492,847.72) 278,241, Cash and Cash equivalents 27,462, Collective investment schemes (Cost: RMB34,491,375.01) 33,000, Listed equities (Cost: RMB25,022,933.26) 24,864, ,568, OTHER NET ASSETS 448,005, Total net assets 811,574, Total Investments, at cost 333,007,156-12

13 STATEMENT OF ASSETS AND LIABILITIES FOR THE PERIOD ENDED 30 JUNE 2013 GUOTAI JUNAN GREAT DRAGON CHINA FIXED INCOME FUND 30 June December 2012 RMB RMB ASSETS Financial assets at fair value through profit or loss 330,982, ,529,526 Cash and cash equivalents 27,462,446 18,541,533 Interest receivable on debt securities 5,123,458 6,908,420 Interest receivable on bank deposits and bonds 948 1,403 Amounts due from brokers - 3,636,520 Subscription proceeds receivable 450,058,252 - Deposits 252, ,000 TOTAL ASSETS 813,879, ,869,402 LIABILITIES Financial liabilities at fair value through profit or loss - - Amounts due to brokers - - Redemption proceeds payable 184,382 49,592 Management fee payable 311, ,863 Trustee fee payable 56,821 53,372-13

14 STATEMENT OF ASSETS AND LIABILITIES (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2013 GUOTAI JUNAN GREAT DRAGON CHINA FIXED INCOME FUND (CONTINUED) LIABILITIES (continued) 30 June December 2012 RMB RMB Dividend payable to unitholders - 3,265,532 Other payables and accruals 95, ,455 Tax payable 1,658,076 1,822,861 TOTAL LIABILITIES (EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS) 2,305,693 5,691,675 NET ASSETS ATTRIBUTABLE TO HOLDERS OF 811,574, ,177,727 REDEEMABLE UNITS TOTAL LIABILITIES 813,879, ,869,402 NUMBER OF UNITS IN ISSUE Class A 1,153, ,170, Class I 6,957, ,457, NET ASSET VALUE PER UNIT Class A Class I

15 DISTRIBUTION DISCLOSURE RECORD OF DISTRIBUTION GUOTAI JUNAN GREAT DRAGON CHINA FIXED INCOME FUND No distribution has been declared for the reported period from 01 January 2013 to 30 June