Huatai Global Investment Fund –
Huatai HKD Money Market Fund
(Fund Type：Hong Kong Umbrella Unit Trust)
Important Notes：
Investment involves risks, including the loss of principal. The price of units or shares of the Sub-Fund may go up as well as down. Past performance is not indicative of future results. The value of the Funds can be extremely volatile and could go down substantially within a short period of time. The Explanatory Memorandum and the Product Key Facts Statement of the Sub-Fund can be downloaded from this website. Investors should not make investment decisions only base on this material alone. The information provided herein is general in nature. Please read the Sub-fund’s Explanatory Memorandum and the Product Key Facts Statement for details including the full text of the risk factors stated therein.
Please note:
• Huatai HKD Money Market Fund, being a sub-fund of the umbrella unit trust constituted by the Trust Deed and called Huatai Global Investment Fund. The investment objective of the Sub-Fund is to provide return in line with prevailing money market rates in HKD by primarily investing in short-term deposits and high quality money market instruments denominated in HKD. There can be no assurance that the Sub-Fund will achieve its investment objective.
• The Fund and the Sub-Fund(s) have been authorised by the SFC as a collective investment scheme pursuant to section 104 of the SFO. The SFC’s authorisation is not a recommendation or endorsement of the Fund and the Sub-Fund(s) nor does it guarantee the commercial merits of the Fund and the Sub-Fund(s) or their performance. It does not mean the Fund or the Sub-Fund(s) is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.
Risk Factors:
Investors should not only base on this website alone to make investment decisions. Please read the Sub-Fund’s Explanatory Memorandum and the Product Key Facts Statement for details including the full text of the risk factors stated therein.
a) Investment risk
The Sub-Fund is an investment fund and not a bank deposit. The Sub-Fund may fall in value due to any of the key risk factors below and therefore investors may suffer losses. There is no guarantee of repayment of capital.
b) Risks associated with debt securities
• Short-term debt securities risk - the turnover rates of the Sub-Fund’s investments may be relatively high and the transaction costs incurred as a result of the purchase or sale of such securities may increase.
• Volatility and liquidity risk - The debt securities in some of the markets in which the Sub-Fund invests may be subject to higher volatility and lower liquidity compared to more developed markets.
• Credit risk - The Sub-Fund is exposed to the credit/insolvency risk of issuers of the debt securities that the Sub-Fund may invest in.
• Interest rate risk - Investment in the Sub-Fund is subject to interest rate risk.
• Credit rating risk - Credit ratings assigned by rating agencies are subject to limitations.
• Valuation risk - Valuation of the Sub-Fund’s investments may involve uncertainties and judgmental determinations.
• Downgrade risk - The credit rating of an issuer or a debt security may subsequently be downgraded due to changes in the financial strength of an issuer or changes in the credit rating of a debt security.
• Sovereign debt risk - Investment in sovereign debt obligations issued or guaranteed by governments may be exposed to political, social and economic risks.
c) Risks associated with bank deposits
The Sub-Fund will invest in HKD-denominated and non-HKD-denominated short-term deposits, which are subject to the credit risks of the financial institutions that offer and act as counterparties of such deposits. As such deposits may not be protected or fully protected under any deposit protection schemes.
d) Foreign currency risk,
Certain investments acquired by the Sub-Fund are denominated in currency(ies) (such as USD) different from the base currency. The net asset value of the Sub-Fund may be affected favourably or unfavourably by the exchange rates between the base currency and currency(ies) of investments acquired by the Sub-Fund and by changes in exchange rate control.
e) Concentration risk
The Sub-Fund will invest primarily in HKD-denominated and settled instruments. The Sub-Fund is therefore likely to be more volatile than a broad-based fund that adopts a more diversified strategy.
f) Hedging risk
The Sub-Fund may acquire financial derivatives instruments for hedging and in adverse situations, such hedging may become ineffective and the Sub-Fund may suffer significant losses.
g) Risk associated with money market fund
The Sub-Fund is an investment fund and not a bank deposit. The Fund may fall in value due to any of the risk factors below and therefore investors may suffer losses. The Sub-Fund does not guarantee principal. The Sub-Fund is not subject to the supervision of the Hong Kong Monetary Authority. The Sub-Fund does not have a constant Net Asset Value.
• You should not invest in the Sub-Fund unless the intermediary who sells it to you has explained to you that the Sub-Fund is suitable for you having regard to your financial situation, investment experience and objectives.
• No dividends will be declared or distributed to Unitholders of the Sub-Fund.
The Sub-Fund’s objective is to provide return in line with prevailing money market rates in HKD by primarily investing in short-term deposits and high quality money market instruments denominated in HKD.
A. Primary Investment
The Sub-Fund may invest not less than 70% of its net asset value in HKD-denominated and settled short-term deposits and high quality money market instruments issued by governments, corporations, quasi-governments, international organisations and financial institutions. The Sub-Fund may invest up to 30% of its net asset value in non-HKD-denominated deposits and high quality money market instruments. High quality money market instruments include debt securities, commercial papers, certificates of deposits, short-term notes and commercial bills.
In assessing whether a money market instrument is of high quality, at a minimum, the credit quality and the liquidity profile of the money market instrument must be considered, as follows:
- Credit rating: The Sub-Fund will only invest in (i) debt securities rated investment grade, or (ii) debt securities issued/guaranteed by issuers/guarantors who are rated investment grade. For the purposes of the Sub-Fund, “investment grade” means a short-term credit rating of A-2 or above by Standard & Poor’s or equivalent rating as rated by one of the international credit rating agencies, or (in the absence of a short-term credit rating only) a long-term credit rating of BBB or above by Standard & Poor’s or equivalent rating as rated by one of the international credit rating agencies. For split credit ratings, the highest rating shall apply.
For the avoidance of doubt, the Sub-Fund does not intend to invest in debt securities with a long term to maturity remaining at the time of investment. The long-term credit ratings will only be considered where the Sub-Fund invests in debt securities which have long-term credit ratings only and no short-term credit ratings, but have a shorter term to maturity remaining (subject to the restrictions on remaining maturity, weighted average maturity and weighted average life of the portfolio of the Sub-Fund as set out below) at the time of purchase by the Sub-Fund.
- Weighted average maturity and weighted average life: The Sub-Fund will maintain a portfolio with weighted average maturity not exceeding 60 days and a weighted average life not exceeding 120 days and must not purchase an instrument with a remaining maturity of more than 397 days, or two years in the case of government and other public securities.
There is no specific geographical allocation of the country of issue of the high quality money market instruments or short-term deposits. Countries or regions in which the Sub-Fund may invest in include but are not limited to Greater China (referring to offshore China, i.e. Hong Kong, Macau and Taiwan) and Singapore. It is not expected that the Sub-Fund will invest in onshore China or emerging markets.
B. Ancillary Investments
The Sub-Fund may invest up to 10% of its net asset value in money market funds authorised in Hong Kong by the Securities and Futures Commission of Hong Kong (“SFC”) under Chapter 8.2 of the Code on Unit Trusts and Mutual Funds (“Code”) or regulated in a manner generally comparable with the requirements of the SFC and acceptable to the SFC.
The Sub-Fund may invest up to 15% of its net asset value in asset backed securities, such as mortgage backed securities. Such asset backed securities are issued in regions including but not limited to Greater China (referring to offshore China, i.e. Hong Kong, Macau and Taiwan) or Singapore, and are rated investment grade by one of the international credit rating agencies.
The aggregate value of the Sub-Fund's holding of instruments and deposits issued by a single entity will not exceed 10% of the total net asset value of the Sub-Fund except:
(i) where the entity is a substantial financial institution and the total amount does not exceed 10% of the entity’s share capital and non-distributable capital reserves, the limit may be increased to 25%;
(ii) in the case of government and other public securities, up to 30% may be invested in the same issue; or
(iii) in respect of any deposit of less than USD1,000,000, where the Sub-Fund cannot otherwise diversify as a result of its size.
The aggregate value of the Sub-Fund’s investment in entities within the same group through instruments and deposits will not exceed 20% of its net asset value provided that:
(i) the aforesaid limit will not apply in respect of cash deposit of less than USD1,000,000 or its equivalent in the base currency of the Sub-Fund, where the Sub-Fund cannot otherwise diversify as a result of its size; and
(ii) where the entity is a substantial financial institution and the total amount does not exceed 10% of the entity’s share capital and non-distributable capital reserves, the limit may be increased to 25%.
The Sub-Fund may borrow up to 10% of its net asset value but only on a temporary basis for the purpose of meeting redemption requests or defraying operating expenses. The Sub-Fund will not invest in any convertible bonds, instruments with loss absorption features or urban investment bonds.
The Sub-Fund may enter into sale and repurchase transactions for up to 10% of its net asset value but only on a temporary basis for the purpose of meeting redemption requests or defraying operating expenses, provided that the amount of cash received by the Sub-Fund under sale and repurchase transactions may not in aggregate exceed 10% of its net asset value. The Sub-Fund will not enter into securities lending and reverse repurchase transactions in respect of the Sub-Fund.
The Sub-Fund may use financial derivative instruments (including interest rate swaps and currency swaps) for hedging purposes only.
| Fund Manager | Huatai Financial Holdings (Hong Kong) Limited | |||||
|---|---|---|---|---|---|---|
| ba |
Hong Kong Dollar | |||||
| Fund Launch Date | 2023-Aug-15 | |||||
| Dealing Frequency | Daily | |||||
| Distribution Policy | No dividends will be declared or distributed. | |||||
| Financial year-end of the Sub-Fund | Dec-31 | |||||
| Inception Date | Class A HKD ：2023-Aug-17 Class B HKD： 2023-Oct-06 Class I HKD ：2023-Aug-18 Class S HKD ：2023-Aug-15 |
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| Management fee | Class A HKD Units: up to 1% p.a. currently 0.3% p.a. Class B HKD Units: up to 1% p.a. currently 0.6% p.a. Class I HKD Units: up to 0.5% p.a. currently 0.1% p.a. Class S HKD Units: up to 0.5% p.a. currently 0% p.a. |
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| Subsc |
Up to 1% of the amount subscribed | |||||
| Redemption fee | None | |||||
| Minimum Initial investment | Class A HKD ：HKD 0.01 Class B USD： HKD 0.01 Class I HKD ：HKD 1000000 Class S HKD ：HKD 0.01 |
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| Minimum Additional investment | Class A HKD ：HKD 0.01 Class B HKD： HKD 0.01 Class I HKD ：HKD 100000 Class S HKD ：HKD 0.01 |
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| ISIN | Class A HKD ：HK0000951506 Class B HKD： HK0000951514 Class I HKD ：HK0000951522 Class S HKD ：HK0000951530 |
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| Bloomberg Ticker | Class A HKD ：HUAMNYA HK Equity Class B HKD： HUAHKMB HK Equity Class I HKD ：HUAMRFI HK Equity Class S HKD ：HUAMONS HK Equity |
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| Fund Administrator/Trustee | Bank of Communication Trustee Limited | |||||
| Auditor | PricewaterhouseCoopers | |||||
| Legal Advisor | Deacons | |||||
| 1 Month | 3 Month | 6 Month | YTD | Since Inception2 | 2023 (Annualized) | |
|---|---|---|---|---|---|---|
| Class A HKD | 0.39% | 1.08% | 2.34% | 1.50% | 3.32% | - |
| Class B HKD | 0.36% | 1.00% | 2.25% | 1.41% | 2.59% | - |
| Class I HKD | 0.42% | 1.13% | 2.42% | 1.59% | 2.79% | - |
As of 2024-Apr-30
Source: Bloomberg， Huatai Financial Holdings (Hong Kong) Limited
1.Past performance information is not indicative of future performance. Investors may not get back the full amount invested 2.Calculated since the inception of each Class of Unit (excluding Class I HKD). Class I HKD recalculated since 2023/10/04. 3.NAV-to-NAV return total return with dividend (if any) reinvested
| Subject | Type | Date |
|---|---|---|
| Notice to unitholders - Huatai Global Investment Fund (management fee waiver) | Notice | 2023-08-31 |
Huatai Financial Holdings (Hong Kong) Limited is the issuer of this website. The information and materials contained in or accessed through this Website shall not be considered or construed as an offer or solicitation to sell, buy or otherwise deal in or as the giving of any advice in respect of shares, stocks, bonds, notes, interests, unit trusts, mutual funds or other securities, investments, loans, advances, credits or deposits in any jurisdiction.
Investment involves risks, including the loss of principal. The price of units or shares of the Sub-Fund may go up as well as down. Past performance is not indicative of future results. The value of the Sub-Fund can be extremely volatile and could go down substantially within a short period of time. You should read the Sub-Fund’s Explanatory Memorandum and Product Key Facts Statement for details, including risk factors. Investors should not make investment decisions only base on this material alone.
Information contained in this website has not been reviewed by the SFC.
SFC authorization is not a recommendation or endorsement of a scheme nor does it guarantee the commercial merits of a scheme or its performance. It does not mean the scheme is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.