China New Balance Opportunity Fund

  • Overview
  • Performance
  • Holdings
  • Distribution History
  • Summary of NAV
  • Documents
  • Distributors
Important Information

The China New Balance Opportunity Fund (the "Sub-Fund") is a sub-fund of the China Southern Dragon Dynamic Fund (the "SICAV"), which is an open-ended investment company domiciled in Luxembourg. Its home regulator is Commission de Surveillance du Secteur Financier ("CSSF").

  • Investment involves risks. The value of the Sub-Fund can be volatile and could go down substantially and you may lose a certain amount of your investment.
  • The Sub-Fund invests in equities, which are subject to normal market fluctuations and other risks inherent in investing in equities. Past performance is not a guide to future performance.
  • The Sub-Fund invests in Mainland China so it may be subject to emerging market risk and concentration risk.
  • Some of the assets of the Sub-Fund are denominated in RMB. Shareholders will be exposed to movements of the exchange rate between the currency of the class of Shares they invest in and RMB. RMB is not a freely convertible currency. There can be no assurance that RMB will not depreciate.
  • The Sub-Fund invests in small-cap company shares which can be more volatile and less liquid than those of larger companies.
  • The Sub-Fund may use derivative instruments for hedging or efficient portfolio management purposes. The use of derivative instruments for these purposes may become ineffective and/or cause the Sub-Fund to suffer significant losses.
  • Shareholders may incur a performance fee notwithstanding the Shareholder may have suffered a loss in the investment in the Shares. The performance fee may create an incentive for the Manager to make investments for a Sub-Fund, which are riskier than would be the case in the absence of a fee based on the performance of a Sub-Fund.
  • The Manager may, at its discretion, pay dividends out of capital. The Manager may also, at its discretion, pay dividends 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 dividends out of the capital. Payment of dividends out of capital or effectively out of the 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 distributions involving payment of dividends out of the capital or effectively out of the capital of the sub-fund may result in an immediate reduction of the NAV per Unit.

Investor should not invest in the Sub-Fund Solely based on this material and should read the Hong Kong Prospectus and the key Facts Statement for further details.

Investment Objective

The Sub-Fund aims to achieve medium to long-term capital appreciation by investing in securities in the Greater China region to capture the economic growth in Mainland China.

Investment Strategy
  • The Sub-Fund will employ an equity long only strategy; investment decision will be disciplined and systematic, combining macroeconomic analysis and fundamental security selection, with more focus on the latter; aim to outperform China's economic growth.
  • Top-down approach to select sectors that benefit from consumption upgrades
  • Bottom-up approach to select small mid cap stocks in the stock pool that have solid fundamentals
  • Build a well-organized, independent and effective research framework
    • Pre-investment: Detailed investigation and field research
    • Post-investment: Continuous follow up analysis
Fund Manager
Wang Zhihua, CIO
  • Leads the CSOP's equity investment team since 2010; Fund manager of the sub-fund since inception
  • Over 22 years of investment experience in the Greater China equity market, including managing one of the largest equity mutual funds in China with AUM of over RMB 40 billion
  • Managed both long-only Greater China equity funds and Hong Kong / China Equity hedge funds in Hong Kong since 2008
Key Facts
Name of Fund China Southern Dragon Dynamic Fund – China New Balance Opportunity Fund
Place of Registration Luxembourg
Type of Fund UCITS IV ; Open ended Fund ; USD denominated
Investment Manager CSOP Asset Management Limi ted
Inception Date 21 January 2011
Hong Kong SFC
Authorization Date
10 May 2013
Class A Accumulation Shares* /
Class A Distribution Shares*
Class I Accumulation Shares* /
Class I Distribution Shares*
Min Initial
Subscription Amount
HKD 40,000 HKD 8,000,000
USD 5,000 USD 1,000,000
Min Additional
Subscription Amount
HKD 800 HKD 2,000,000
USD 100 USD 250,000
Subscription Fee Up to 5%
Management Fee Class A* 2.0% p.a. ; Class I*: 1.0% p.a.
Performance Fee 20% with 8%hurdle rate ( High Water Mark)
Redemption Fee N/A
Dealing Frequency Daily
Dealing Deadline Daily 4pm Hong Kong Time
Custodian / Administration Citibank Europe plc, Luxembourg Branch
Class A Class I
Accumulation Shares Distribution Shares Accumulation Shares Distribution Shares
HKD USD HKD USD HKD USD HKD USD
ISIN Code LU0744789560 LU0708185235 LU1033681039 LU1033680908 LU0744789644 LU0562028620 LU1033681542 LU1033681468
Bloomberg Code CHNEBHA LX CHNEBUA LX CHNEBHI LX CHNEBAO LX
* Class A: Retail Investors; Class I: Institutional Investors
^ Morningstar, Inc. All Rights Reserved. Morningstar Rating TMas at 31 January 2014
Top 5 Holdings
Company Sector % of NAV
Tencent Holdings Ltd Information Technology 9.39%
Alibaba Group Holding Information Technology 8.01%
Geely Automobile Holdings Consumer Discretionary 7.18%
YiChang Hec ChangJiang Pha Health Care 6.38%
Hong Kong Exchanges & Clear Financials 4.90%
Investment Portfolio
Sector Allocation
Country Allocation
Market Capitalization
** Large Cap: >60bn HKD; Mid Cap: 10bn≤ x ≤60bn HKD; Small Cap:<10bn HKD
1Source: CSOP, as of 29 July, 2016.
Fund Performance
1 month 3 months 6 months Year to date Since Inception*
I USD – Acc* 7.41% -0.57% 10.67% 7.41% 99.58%
A USD – Acc* 7.44% -0.78% 10.39% 7.44% 70.05%
I USD – Dist* 8.14% -0.29% 11.44% 8.14% 6.64%
MSCI China Index** 6.87% 1.26% 9.26% 6.87% 10.54%
A USD – Acc* 9.04% 0.35% 11.85% 9.04% 61.58%
A HKD – Acc* 9.08% 0.40% 11.86% 9.09% 67.57%
A HKD – Dist* 9.08% 0.38% 11.84% 9.08% 35.69%
A USD – Dist* 9.04% 0.35% 11.85% 9.04% 22.42%
MSCI China Index** 6.87% 1.26% 9.26% 6.86% 19.09%
Class R - EUR hedged 0.00% 0.00% 7.31% 0.00% 19.49%
MSCI China Index** 6.87% 1.26% 9.26% 6.87% 13.64%
Class V - EUR hedged 8.89% 0.03% 11.30% 8.89% 23.97%
MSCI China Index** 6.87% 1.26% 9.26% 6.87% 12.61%
* NAV to NAV performance with dividends reinvested.
** The Fund uses MSCI China Index (total return) for performance comparison only, not for benchmark; index return is since 21 January 2011.
# Calculated since the inception date of each share class. 21 Jan 2011 for Class I – USD Acc, 05 Dec 2012 for Class A USD – Acc.

As of 31 January 2017
2012 2013 2014 2015 2016
Class A USD - 25.78% 0.00% 12.72% -0.48%
Class A HKD - 30.00% 0.23% 12.65% -0.43%
Class I USD 34.94% 30.59% 1.47% 11.90% 0.57%
Class I HKD - 30.49% 1.54% 13.24% 0.37%
* NAV to NAV performance with dividends reinvested.
** The Fund uses MSCI China Index (total return) for performance comparison only, not for benchmark; index return is since 21 January 2011.
# Calculated since the inception date of each share class. 21 Jan 2011 for Class I – USD Acc, 05 Dec 2012 for Class A USD – Acc.
Past performance information is not indicative of future performance. Investors may not get back the full amount invested.
The computation basis of the performance is based on the calendar year end, NAV-To-NAV, with dividend reinvested.
These figures show by how much the fund increased or decreased in value during the calendar year being shown. Performance data has been calculated in USD including ongoing charges and excluding subscription fee and redemption fee you might have to pay.

As of 31 January 2017

Important information about Dividend out of capital / effectively out of capital
  • The Manager may, at its discretion, pay dividend out of capital. 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.
  • Payments of dividends out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from capital gains attributed to that original investment. Any distributions involving payment of dividends out of the sub-fund’s capital or effectively out of capital may result in an immediate reduction in the Net Asset Value (“NAV”) per Unit.
Distribution History
Class Ex-Date Record Date Payable
Date
Dividend
Per Share
Dividend Paid Out
of Net Distributable Income*
for the month
(per share)
Dividend Paid Out
of Capital
(per share)
Class A (USD) Distribution 2014-10-27 2014-10-24 2014-10-31 USD 0.97 USD 0.00 USD 0.97
Class A (HKD) Distribution 2014-10-27 2014-10-24 2014-10-31 HKD 1.02 HKD 1.02 HKD 0.00
2014-8-1 2014-7-31 2014-8-6 HKD 0.34 HKD 0.00 HKD 0.34
2015-12-16 2015-12-15 2015-12-23 HKD 2.46 HKD 0.88 HKD 1.58
Class I (USD) Distribution 2016-03-17 2016-03-16 2016-03-18 USD 10.62 USD 0.00 USD 10.62
2015-11-30 2015-11-27 2015-12-02 USD 12.00 USD 0.00 USD 12.00
*“Net distributable income” means the net investment income (i.e. dividend income and interest income net of fees and expenses) attributable to the relevant share class and may also include net realised gains (if any) based on unaudited management accounts. However, “net distributable income” does not include net unrealised gains.
Warning: Please note that a positive distribution yield does not imply a positive return. Investors should not make any investment decision solely based on information contained in the table above. There is no guarantee of distribution. Investors should read the relevant offering document (including the key facts statement) of the fund for further details including the risk factors.

All dollar amounts are in RMB. All dates are in GMT+8 Time. Any exceptions are noted.

Summary of NAV
Class Units Inception date Latest unit price Last valuation date
I Accumulation Shares USD 2011-01-21 USD 220.47 2017-06-21
I Accumulation Shares HKD 2011-12-07 HKD 188.87 2017-06-21
A Accumulation Shares USD 2012-12-05 USD 180.88 2017-06-21
A Accumulation Shares HKD 2012-12-27 HKD 188.61 2017-06-21
A Distribution Shares HKD 2014-06-10 HKD 147.77 2017-06-21
A Distribution Shares USD 2014-09-26 USD 135.66 2017-06-21
I Distribution Shares USD 2015-11-25 USD 89.36 2017-06-21

To check historical prices, simply select the fund and the periods required.

Class
Units
From
To

    Up to the date of 31 October 2013, the performance data was that of an unauthorized scheme. There are no significant changes in the investment strategy since the scheme had been authorized by the SFC.

    Documents
    Hong Kong Prospectus
    Product Key Facts
    Monthly Newsletter
    For request of the fund literature hardcopies, please contact us.
    All documents are in PDF format.

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    Announcement
    Audited Accounts
    Notice to Investors
    Dividend Payment
    For request of the fund literature hardcopies, please contact us.
    All documents are in PDF format.

    Download Acrobat Reader.
    Financial Reports and Application Forms
    Annual Report
    Interim Report
    Audited Accounts
    Application Form
    For request of the fund literature hardcopies, please contact us.
    All documents are in PDF format.

    Download Acrobat Reader.
    Distributors
    FAQ
    Disclaimer

    Investment involves risk. Please refer to the Prospectus and the Product Key Facts Statement for details of the risks of investing in the Fund. Future performance and the capital value of the Fund are not guaranteed. Past performance figures are not an indicative for future performance. The value of units may rise as well as fall. Investors are reminded that in certain circumstances their right to redeem may be suspended. We recommend investors obtain and read a copy of the Explanatory Memorandum and the Key Facts Statement before investing. This material has not been reviewed by SFC in Hong Kong.
    The Fund is authorized by the Hong Kong Securities and Futures Commission (“SFC”). SFC authorization is not a recommendation or endorsement of the Fund.

    Issuer: CSOP Asset Management Limited