Investment involves risk including loss of principal, and investments in Sub-Fund may not be suitable for everyone. Investors should read the Prospectus and the Product Key Facts Statement carefully for details including the product features and risk factors, and should consider their own investment objectives and other circumstances before investing in the Sub-Fund. The information provided herein is general in nature. If you are in any doubt about the contents of this website, you should consult your stockbroker, banker, solicitor, accountant or other financial adviser for independent professional advice before making any investment in the Sub-Fund.

CICC Global Investment Grade Bond Fund, being a sub-fund of the umbrella unit trust constituted by the Trust Deed and called CICC Investment Series, seeks long term and stable income and capital growth by investing primarily in investment grade fixed income instruments globally across different sectors. There can be no assurance that CICC Global Investment Grade Bond Fund will achieve its investment objective.

The Sub-Fund seeks to achieve its investment objective by investing primarily (at least 70% of its NAV) in fixed income instruments globally with an investment grade rating. A fixed income instrument is considered investment grade if, at the time of purchase, its credit rating, or (if the instrument does not have a credit rating) the credit rating of its issuer or guarantor, is BBB- or higher by Standard & Poor’s or Fitch Ratings or Baa3 or higher by Moody’s or equivalent rating as rated by an international credit rating agency. For split credit ratings, the highest rating shall apply.

You are also drawn to attention of the following points with respect to the Sub-Fund:

Investors should carefully read the Prospectus and the Product Key Facts Statement for further details of all risk factors in particular those associated with investments in the Sub-Fund before making any investment decision. The Prospectus and the Product Key Facts Statement of the Sub-Fund may be obtained from the office of China International Capital Corporation Hong Kong Asset Management Limited which is located 29th Floor, One International Centre, 1 Harbour View Street, Central, Hong Kong and can also be downloaded from Website. In addition to above points, investors are also drawn to the attention of specific risk factors with respect to the Sub-Fund set out in the Prospectus and the Product Key Facts Statement.

CICC Global Investment Grade Bond Fund has been authorized by the Securities and Futures Commission (the “SFC”) as a collective investment scheme. SFC authorization is not a recommendation or endorsement of a product nor does it guarantee the commercial merits of a product or its performance. It does not mean the product is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors. SFC take no responsibility for the contents of the Website, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of the Website.

Past performance information presented (if any) is not indicative of future performance.

All information displayed on this website is provided on an “as is” basis and China International Capital Corporation Hong Kong Asset Management Limited makes no representations and disclaims all warranties (whether express or implied) as to the accuracy or completeness of the information provided herein.

The contents of this website have not been reviewed by the SFC.

Manager: China International Capital Corporation Hong Kong Asset Management Limited

Distribution Policy 

For distribution classes (i.e. classes marked (Dist)), the Manager has discretion as to whether or not to make any distribution of dividends, the frequency of distribution and amount of dividends. It is currently intended that distributions will be made on a monthly basis for distribution classes of Units. Whether distributions will in fact be made every month or the frequency of the distribution may change from time to time as determined by the Manager. Distributions (if any) will be paid in the class currency of the relevant distribution classes of Units only. 

The Manager may at its discretion pay dividends out of the capital of the Sub-Fund. The Manager may also, at its discretion, pay dividend out of gross income while all or part of the fees and expenses of the Sub-Fund are charged to/paid 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 therefore, the Sub-Fund may effectively pay dividend out of capital. 

For accumulation classes (i.e. classes marked (Acc)), no distributions will be made to Unitholders.

Investors should not only base on this website alone to make investment decisions. Please read the Sub-Fund’s offering documents for details including the full text of the risk factors stated therein. 

General investment 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.

Currency risk

Underlying investments of the Sub-Fund may be denominated in currencies other than the base currency of the Sub-Fund. Also, a class of Units may be designated in a currency other than the base currency of the Sub-Fund. The NAV of the Sub-Fund may be affected unfavorably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls.

Risks associated with fixed income instruments

Credit/counterparty risk: The Sub-Fund is exposed to the credit/default risk of issuers of the fixed income instruments that it may invest in.

Interest rate risk: Investment in the Sub-Fund is subject to interest rate risk. In general, the prices of fixed income instruments rise when interest rates fall, whilst their prices fall when interest rates rise.

Volatility and liquidity risk: The fixed income instruments in emerging markets may be subject to higher volatility and lower liquidity compared to more developed markets. The prices of instruments traded in such markets may be subject to fluctuations. The bid and offer spreads of the price of such instruments may be large and the Sub-Fund may incur significant trading costs.

Credit rating/downgrading risk: The credit rating of a fixed income instrument or its issuer or guarantor may subsequently be downgraded. In the event of such downgrading, the value of the Sub-Fund may be adversely affected. The Manager may or may not be able to dispose of the fixed income instruments that are being downgraded. Credit ratings assigned by rating agencies are subject to limitations and do not guarantee the creditworthiness of the instrument and/or issuer or guarantor at all times.

Sovereign debt risk: The Sub-Fund’s investment in fixed income instruments 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.

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 NAV calculation of the Sub-Fund.

Risks associated with investments in fixed income instruments with loss-absorption features (LAP)

The Sub-Fund may invest in fixed income instruments with loss-absorption features, such as total loss-absorbing capacity debt instruments (TLAC) and contingent convertible debt securities (including Tier 2 Capital instruments and Additional Tier 1 Capital instruments). They are subject to greater risks when compared to traditional fixed income instruments as such instruments are typically subject to the risk of being written down or converted to ordinary shares upon the occurrence of a pre-defined trigger event (e.g. when the issuer is near or at the point of non-viability or when the issuer’s capital ratio falls to a specified level), which are likely to be outside of the issuer’s control. Such trigger events are complex and difficult to predict and may result in a significant or total reduction in the value of such instruments.

In the event of the activation of a trigger, there may be potential price contagion and volatility to the entire asset class. Fixed income instruments with loss-absorption features may also be exposed to liquidity, valuation and sector concentration risk.

The Sub-Fund may invest in contingent convertible debt securities, commonly known as CoCos, which are highly complex and are of high risk. Upon the occurrence of the trigger event, CoCos may be converted into shares of the issuer (potentially at a discounted price), or may be subject to the permanent write-down to zero. Coupon payments on CoCos are discretionary and may be cancelled by the issuer at any point, for any reason, and for any length of time.

Risks associated with investments in FDIs and hedging

Risks associated with FDIs include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The leverage element/component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the Sub-Fund. Exposure to FDIs may lead to a high risk of significant loss by the Sub-Fund.

There is no guarantee that the desired hedging instruments will be available or that the hedging techniques will be effective. Hedging can limit potential gains of the Sub-Fund or a hedged class.

Emerging markets risk

The Sub-Fund may invest in emerging markets, which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.

Risks associated with sale and repurchase transactions

In the event of the failure of the counterparty with which collateral has been placed, the Sub-Fund may suffer losses 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.

Re-investment of cash collateral risk

The Sub-Fund may re-invest cash collateral received from sale and repurchase transactions. Investors should note that there are risks associated with the reinvestment of cash collateral. If a Sub-Fund re-invests cash collateral, such re-investment is subject to investment risks including the potential loss of principal.

RMB currency risk and RMB denominated classes risk

RMB is currently not freely convertible and is subject to exchange controls and restrictions and investors may be adversely affected by movements of the exchange rates between RMB and other currencies. Currency conversion is also subject to the Sub-Fund’s ability to convert the proceeds into RMB (due to exchange controls and restrictions applicable to RMB) which may also affect the Sub-Fund’s ability to meet redemption requests from Unitholders in RMB denominated classes of Units or to make distributions (if applicable), and may delay the payment of redemption proceeds or dividends (if applicable) in RMB under exceptional circumstances.

Non-RMB based investors who invest in RMB denominated classes are exposed to foreign exchange risk and there is no guarantee that the value of RMB against the investors’ base currency will not depreciate. Any depreciation of RMB could adversely affect the value of investors’ investment in the RMB denominated classes of Units. Although offshore RMB (CNH) and onshore RMB (CNY) are the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors.

Hedged classes risk

For hedged RMB and HKD classes, investors have to bear the associated hedging costs which may be significant depending on prevailing market conditions. There is no guarantee that the hedging strategy will fully and effectively eliminate the currency exposure. Also, hedging may preclude the hedged RMB and HKD classes from benefiting from any potential gain resulting from the appreciation of the base currency against RMB or HKD (as the case may be).

Distributions out of or effectively out of capital risks

Payment of dividends out of capital and/or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction of the NAV per Unit.

The distribution amount and NAV 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.