Notice to the Participants of BDO UITFs
Fund Structure
The Fund is a US Dollar-denominated global equity unit investment trust fund (UITF) structured as a feeder fund.
Investment Objective
The Fund aims to provide long-term capital growth by investing in a single collective investment scheme called the Target Fund, which is invested in a portfolio of equities and equity-related instruments of China-related companies traded both onshore and offshore China. The Fund's Target Fund is the BlackRock Global Funds (BGF) China Fund.
Investment Policy
As a feeder fund, the Fund shall invest at least 90% of its assets in a single collective investment scheme called the Target Fund. The remaining portion of its assets (maximum of 10%) will be invested and reinvested by the Trustee, with full discretionary powers, in deposits in the Trustee’s bank or in other banks. The Fund may invest in bank deposits beyond the 10% limit during the transitory period while the Fund switches target fund.
The Fund’s investment in the Target Fund should not comprise more than 10% of the Target Fund’s Net Asset Value. The Target Fund must also comply with the 15% single exposure limit and must not have any investment exposure in other collective investment schemes.
Client Suitability
The Fund is suitable for individual and corporate Investors with balanced risk appetite and who seek potentially higher returns through China stock market investments but are also aware of the possibility of capital losses that such investments may entail. In order to minimize risks and maximize earning potential, participants/trustors are recommended to stay invested for more than three (3) years. The Fund is not suitable for short-term investing.
Participation in the Fund shall be open to Filipino citizens, Philippine residents and domestic corporations with capacity to contract and who are not considered US Persons under the US securities and tax laws.
Prospective participants should also consult their own tax advisors as to the specific Philippine tax consequences of acquiring, holding and redeeming of any units of the Fund, as well as the consequences arising under the laws of any other taxing jurisdiction.
Fund Facts
|
Bloomberg Ticker |
BDOCEFF PM |
|
Fund Type |
Equity Fund |
|
Inception Date |
October 29, 2015 |
|
Benchmark |
MSCI EM China 10/40 Net Total Return Index |
|
Initial NAVpU |
USD 100.00 |
|
Minimum Investment |
USD 500.00 |
|
Minimum Additional / Minimum Maintaining Participation |
USD 500.00 |
|
Minimum Holding Period |
None |
|
Early Redemption Fee |
Not Applicable |
|
Management Fee |
1.0% p.a. |
|
NAVpU Availability |
Every trading day at 4:00 p.m. |
|
Dealing Period: Admission and Redemption Orders |
Admission and Redemption orders are subject to a one (1) day advanced notice requirement ("Order Date" or T - 1).
Cut-off time for Admission and Redemption orders is up to 2:30 p.m. of any banking day. Orders placed after the cut-off time will be processed on the next banking day.
The Fund shall be closed for orders during Target Fund non-dealing days. Click here for details. |
|
Valuation Date |
Admission and Redemption shall be based on the NAVPU computed on Valuation Date (T + 0) |
|
Settlement Period (Funding): Admissions |
On Admission Order Date or one (1) day prior the Valuation Date (T - 1) |
|
Settlement Period: Redemptions |
Five (5) banking days from Redemption Valuation Date (T + 5). This is six (6) banking days after the Redemption Order Date. |
|
External Auditor |
Punongbayan & Araullo |
General Information on the Target Fund
The Target Fund was switched from ChinaAMC China Focus Fund (formerly Citi China Select Fund) to BlackRock Global Funds (BGF) China Fund effective 20 March 2018. For more information on the Target Fund, please read its Prospectus and Fund Fact Sheet available at www.blackrock.com.
| OLD TARGET FUND |
NEW TARGET FUND (effective 20 March 2018) |
|
| Target Fund |
ChinaAMC China Focus Fund |
BlackRock Global Funds (BGF) China Fund |
| ISIN |
HK0000352960 |
LU0359204475 |
|
Fund Structure |
The Target Fund is a sub-fund of ChinaAMC Investment Trust (the “Trust”), an umbrella unit trust governed under the laws of Hong Kong and established by a trust deed dated 7 October 2010 between Citigroup First Investment Management Limited (as the previous manager) and Cititrust (Cayman) Limited (as the previous trustee), as amended from time to time, including by (i) a Deed of Retirement and Appointment of China Asset Management (Hong Kong) Limited (ChinaAMC), the Manager, (ii) a Deed of Retirement and Appointment of Cititrust Limited (Hong Kong), the Trustee and (iii) an amended and restated trust deed dated 28 July 2017 amending and restating the trust deed (the “Amended and Restated Trust Deed”) (collectively the “Trust Deed"). |
The Target Fund is a sub-fund of BlackRock Global Funds (the “Company”), a public limited company (société anonyme) established under the laws of the Grand Duchy of Luxembourg as an open ended variable capital investment company (société d’investissement à capital variable). The Company has been established on 14 June 1962 and its registration number in the Registry of the Luxembourg Trade and Companies Register is B 6317. The Company has been authorized by the Commission de Surveillance du Secteur Financier (the "CSSF") as an undertaking for collective investments in transferable securities pursuant to the provisions of Part I of the law of 17 December 2010, as amended from time to time and is regulated pursuant to such law. |
|
Investment Objective |
The Target Fund aims to provide unitholders with long-term capital growth through exposure to China-related companies by investing in their equities and equity related instruments traded both onshore and offshore China. |
The Target Fund seeks to maximize total return by investing at least 70% of the Fund’s assets in stocks of companies based in, or with the majority of their business in, the People’s Republic of China (the “PRC”). |
|
Investment Policy |
The investment strategy of the Target Fund seeks to take investment exposure to companies which are headquartered in or have significant business exposure to China. The Manager will select China-related companies based on their respective merits and through analysis of macroeconomic factors.
It is expected that approximately 70% to 100% of the Target Fund’s portfolio will be invested directly and indirectly in equity securities issued by companies which are listed or being offered in an initial public offer on official stock markets in Hong Kong, China (A Share and B Share markets), the United States, Singapore, and other countries. The investment in A Shares and B Shares will not be more than 20% of the Target Fund’s net asset value.
The Target Fund will gain exposure to the A Share market by investing in access products and via the “Stock Connect”, which comprises the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect. It is expected that access products and investment via the Stock Connect will generally account for up to approximately 20% of the Target Fund’s net asset value. An access product is a form of financial derivative instrument, in respect of which the issuer is obliged to pay to the Target Fund an economic return equivalent to holding the underlying A Shares, without providing any equitable entitlement or interest in the relevant A Shares.
The Manager may also invest up to 10% of the Target Fund’s portfolio in physical A Share ETFs and/or synthetic A Share ETFs. The Target Fund will not hold more than 10% of any units issued by any single physical A Share ETF or synthetic A Share ETF. Investments in A Share ETFs are considered as investments in equity securities.
The Target Fund’s portfolio may also be partially allocated to cash and/or cash based instruments (such as short- term fixed deposits) but it is expected such allocation will not exceed 30% of the Target Fund’s net asset value. The Target Fund may also use financial derivative instruments (including index futures, index options and index and currency swaps) to hedge market and currency risk only.
|
The Target Fund shall invest at least 70% of its total assets in the equity securities of companies domiciled in, or exercising the predominant part of their economic activity in, the People’s Republic of China.
Subject to applicable regulatory restrictions and internal guidelines, the remaining 30% may be invested in financial instruments of companies or issuers of any size in any sector of the economy globally such as equity securities consistent with the Target Fund’s objective and cash.
The Target Fund may use derivatives for hedging, efficient portfolio management and investment purposes. However, derivatives will not be extensively or primarily used for investment purposes. The Fund is expected to conduct securities lending transactions for up to 40% of its net asset value.
|
|
Manager |
China Asset Management (Hong Kong) Limited (ChinaAMC) |
BlackRock (Luxembourg) S.A. |
|
Administrator |
Citibank N.A., Hong Kong Branch |
BlackRock Investment Management (UK) Limited |
|
Custodian |
Citibank, N.A., Hong Kong Branch |
The Bank of New York Mellon (International) Limited, Luxembourg Branch |
|
Domicile |
Hong Kong |
Luxembourg |
|
Inception Date |
December 10, 2010 |
September 28, 2009 |
|
Management Fee |
1.8% p.a.*
*In addition to the management fee, the Target Fund will also be subjected to performance fee, trustee fee, sub-administrator and custodian fees and other charges and expenses enumerated in the Target Fund's Prospectus. |
0.75% p.a. |
|
Base Currency |
US Dollar |
US Dollar |