CNH Bond Market has experienced explosive growth from a low base.

The United Renminbi bond fund offers investors an opportunity to gain from a potential Renminbi appreciation while at the same time continue to enjoy the coupons from the underlying bonds.

Investment Objective

Aims to generate fixed income returns and benefit from the potential appreciation of the Renminbi over the medium term.

How the Fund invests to deliver returns

The Fund will currently invest primarily in Renminbi denominated debt securities ("RMB Debt Instruments") issued or distributed outside mainland China. The issuers of such securities include, but are not limited to, governments, quasi-government bodies, international and multinational organisations, banks and financial institutions, and corporations.

In addition, the Fund may also invest in onshore debt instruments via institutions that have obtained Qualified Foreign Institutional Investor status ("QFII") in the People's Republic of China ("PRC"), or by purchasing derivative products linked to such onshore debt instruments ("Access Products"), including, but not limited to, participating certificates and participatory notes offered or issued by institutions which have obtained QFII status.

In order to obtain a full exposure to the Renminbi currency, the Fund will not typically be hedged in terms of currency, unless the Fund Manager deems appropriate to protect the investment returns.

The Fund has the flexibility to invest in other debt instruments that are not denominated in RMB.

The Fund may also invest in other instruments such as credit-linked notes, currency forwards, nondeliverable forwards (NDFs), CNH forward contracts, interest rate swaps and cross-currency swaps.

This product is SUITABLE for customers who:

• Want exposure to the Renminbi
• Are willing and able to tolerate investment and currency risks investing in a new but developing CNH bond market
• Have a medium to long term investment horizon

This product is NOT SUITABLE for customers who:

• Have a short term investment horizon
• Are not willing to tolerate the investment and currency risks investing in a new but developing CNH bond market; who cannot tolerate any potential loss in their capital.

Sourcing for an insurance quotation can be tedious and time consuming; the claim process can become pro-longed and complicated. We provide one stop services for you to handle these and offer the most competitive quotation.

Last Updated on Monday, 22 August 2011 11:20