The fund earns excess return since its inception, with annualized excess return of 11.12%, annualized tracking error of 3.77% and IR of 2.94.
Notes:The CCB Principal CSI 500 Enhanced Index Fund (“CSI500 fund”) is managed by CCBPAM in China and the track record is for reference only.Past performance of the CSI500 fund is not reflective of the future performance of the Fund.
The CSI 500 Fund earns excess return since its inception, with annualized excess return of 11.12%, annualized tracking error of 3.77% and Information Ratio of 2.94.
|Investment Objective||The Fund seeks opportunities through investments primarily in China A-Shares with the aim to provide capital appreciation.|
|Launch Date||8 March 2018|
|Initial Offer Price||MYR 1.000||USD 1.000||SGD 1.000|
|Min. Initial Investment||MYR 1,000||USD 1,000||SGD 1,000|
|Min. Additional Investment||MYR 100||USD 100||SGD 100|
|Subscription mode||Cash Only|
|Payout frequency||We have the discretion to make income distribution on an ad-hoc basis, taking into consideration the level of its realised income and/or realised gains, as well as the performance of the Fund. We also have the right to make provisions forreserves in respect of distribution of the Class.|
|Sales charge||Up to 5.50% of the NAV per unit|
|Management Fee||Up to 1.8% p.a. of the NAV of the class|
|Withdrawal Penalty||Up to 1.00% of the NAV per unit. Withdrawal Penalty is chargeable if a withdrawal is made within three (3) months from the Commencement Date. Thereafter, no Withdrawal Penalty will be charged. All Withdrawal Penalty will be retained by the Fund.|
|Distribution Policy||We have the discretion to make income distribution on an ad-hoc basis, taking into consideration the level of its realised income and/or realised gains, as well as the performance of the Fund. We also have the right to make provisions for reserves in respect of distribution of the Class.|
The risks of the Fund include stock specific risk, country risk, credit and default risk, liquidity risk,
currency risk and RQFII regime risk.
Prices of a particular stock may fluctuate in response to the circumstances affecting individual companies such as adverse financial performance, news of a possible merger or loss of key personnel of a company. Any adverse price movements of such stock will adversely affect the Fund’s NAV.
Investments of the Fund may be affected by changes in the economic and political climate, restriction on currency repatriation or other developments in the law or regulations of China. For example, if the economic condition of China deteriorates, it may adversely affect the value of the investments undertaken by the Fund in China. This in turn may cause the NAV of the Fund or prices of units to fall.
Investment of the Fund may involve a certain degree of credit and default risk when the Fund invests in money market instruments and/or place Deposits. Generally, credit and default risk is the risk of loss due to the counterparty’s and/or issuer’s non-payment or untimely payment of the investment amount as well as the returns on investment. We aim to mitigate this risk by performing fundamental credit research and analysis to determine the creditworthiness of its counterparty and/or issuer.
Liquidity risk refers to the ease of liquidating an asset depending on the asset’s volume traded in the market. If the Fund holds assets that are illiquid, or are difficult to dispose of, the value of the Fund will be negatively affected when it has to sell such assets at unfavourable prices.
There are 2 levels of currency risk associated with the investment of this Fund:
Currency risk at the Fund level
The Fund will invest primarily in the mainland China market that is denominated in RMB. Investors should note that the RMB is currently not a freely convertible currency as it is subject to foreign exchange control policies and restrictions of the Chinese government. Trading in the RMB may be subject to possible delay in the settlement process. Any devaluation of the RMB could adversely affect the value of investors’ investments in the Fund.
Currency risk at the Class level
You should also be aware that currency risk is applicable to Class(es) which is in a different currency than the base currency of the Fund. The impact of the exchange rate movement between the base currency of the Fund and the currency denomination of the respective Class(es) may result in a depreciation of the value of your holdings as expressed in the currency denomination of the respective Class(es).
Under prevailing regulations in mainland China, foreign investors who wish to invest directly in the mainland China domestic securities market may obtain the RQFII license approved by the China Securities Regulatory Commission (“CSRC”) and obtain investment quota approved by the State Administration of Foreign Exchange (“SAFE”).
The Fund’s ability to invest directly in China A-Shares through RQFII regime is subject to limitations of RQFII quota. Investors should note that the Manager have the discretion to suspend the sale of units of the Fund if the Manager deemed that the total direct investment in mainland China via the RQFII quota is reaching to its approved quota limit.
Any changes to the relevant rules to the RQFII regime may have an adverse impact on investments made by the Fund. The current RQFII rules and regulations are subject to change and may have retrospective effect. In the worst case, the RQFII License of CIMB-Principal may be retracted. Under such circumstance, the Fund may be terminated if the Manager deemed that it is no longer viable to operate the Fund.
If you want to learn more about the fund or how to get started, feel free to call our customer care centre below or visit your nearest CIMB Bank branches.