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(a Sub-Fund of Bank of East Asia Capital Growth Fund)
Fund Features highlight
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Aim to capitalize long-term capital growth through investing listed equity securities that derive or are expected to derive a significant portion of their revenues from Greater China |
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Capture the opporunities of fast growing economies in Greater China region
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Investors should be aware that the price of units may go up as well as down as the investments of the Fund are subject to market fluctuations and to the risks inherent in all investments. Past performance of the Fund is not indicative of future performance.
The summary provided herewith is only a brief introduction of BEA Greater China Growth Fund (the "Fund"), a Sub-Fund of the Bank of East Asia Capital Growth Fund (the "Umbrella Fund"). You have to refer to and carefully read the Explanatory Memorandum of the Umbrella Fund for all relevant details, interpretation of terminology, as well as emerging market risks before you make investment decision to subscribe for Units of the Fund. Copies of the Explanatory Memorandum of the Umbrella Fund can be obtained at your nearest Bank of East Asia Branch.
FUND DESCRIPTION
WHY INVEST IN THE GREATER CHINA MARKET
WHY INVEST IN THE FUND
REGULAR CONTRIBUTIONS - MONTHLY INVESTMENT PLAN
SPECIAL OFFERS
HOW TO SUBSCRIBE OR REDEEM UNITS OF THE FUND
FUND FACTS
MONTHLY FUND FACTSHEET
FUND PRICE
FINANCIAL STATEMENTS
FUND DESCRIPTION
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Objective
The BEA Greater China Growth Fund (the "Fund") is to provide investors with long-term capital growth through investing in a portfolio consisting of listed equity securities of companies that derive or are expected to derive a significant portion of their revenues from goods produced or sold, investments made, or services performed in Greater China, which includes the People's Republic of China ("PRC"), the Special Administrative Regions of Hong Kong and Macau, and Taiwan. |
WHY INVEST IN GREATER CHINA MARKET
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The economy of the PRC is one of the world's fastest growing economies
Since 1980, China's economy has been growing at annual rates of 8% or more driven by strong exports and capital investments. The rise in per capita income has resulted in strong growth in domestic consumption, which has widened the base of China's economic growth.
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The economy of the PRC is now more open, with increasing investment appeal
Following continuous reform over the past two decades and its admission to the WTO in 2001, the PRC has developed to be a more market-driven economy with apparent improvement in corporate governance and earnings quality.
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Appreciation of Renminbi is on track and will induce further international capital inflow
In July 2005, the People's Bank of China ("PBOC") shifted its currency regime from the US dollar peg to a managed float against a basket of currencies. The Renminbi has since appreciated more than 3% against the US Dollar and is widely expected to continue appreciating against the US Dollar, given the China's ballooning trade surplus and foreign exchange reserves.
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The PRC is gradually opening up its capital account
In April 2006, the PBOC announced that investors from the PRC would be allowed to invest in overseas financial markets under the qualified domestic institutional investor scheme. The capital inflow from China is expected to benefit stock markets in Hong Kong and Taiwan in the medium-term given that these economies already have strong ties with China.
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The Greater China markets offer broad industry exposure and diversification
Within the stock markets of Greater China, there is a wide range of listed companies from industries including banking and finance, insurance, real estate, technology, capital equipment, energy and resources, retail and distribution, utilities, and infrastructure investment. These industries provide good proxies for investors to participate in the future growth of the region.
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The Taiwan market is showing signs of recovery
Following the high level contacts between the Kuomintang and the Chinese Communist Party, the cross-strait relationship is expected to improve gradually, and foreign investors began to increase their investment in Taiwan's stock market in the fourth quarter of 2005. Currently, the Taiwan market is still trading at the low end of its historical valuation range, which presents good investment opportunities as the political and economic outlook improves.
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WHY INVEST IN THE FUND
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Diversification Benefit
The Fund provides you with a cost effective means to invest in a diversified portfolio of well-managed listed companies with operations in the fast-growing Greater China region.
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No Bid/Ask Spread for Subscription and Redemption
The net asset value per Unit of the Fund on the relevant Dealing Day will be used as the issue price and realisation price of the Fund, i.e. no bid /ask spread will be involved. Please refer to the "Fund Facts" below for details on other fees and charges.
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Realisation Charge for Class-B Unitholders Waived
The realisation charge will be waived# for Class B Unitholders of the Fund who redeem their Units. Partial redemption can be made, provided that you maintain a minimum holding of HKD10,000.
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Switching Investment Strategy
If you wish to change your investment strategy, it is possible to switch the Units of any class in the Fund to Units of the same class in another Investment Fund within the BEA Capital Growth Fund on the same Dealing Day. Currently, the aggregate of the realisation charge and preliminary charge payable on a switch from one Investment Fund to another will not exceed 3% of the issue price of the new Units.
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Monthly Investment Plan Available
You can also choose to join the Monthly Investment Plan to subscribe for Units of the Fund on a monthly basis, subject to a minimum amount of HKD1,000 per month (or its equivalent in the relevant currency). Please refer to "Regular Contributions" below for details.
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Daily Dealing
Units of the Fund may be subscribed to or redeemed on every business day (Monday to Friday, except public holidays) in Hong Kong.
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Daily Price Quotation
Please click here for the latest Fund price (i.e. net asset value per Unit). In addition, the Fund price will also be published daily in the South China Morning Post and the Hong Kong Economic Times.
| REGULAR CONTRIBUTIONS - MONTHLY INVESTMENT PLAN
Class B Unitholders can choose to invest in the Fund through the Monthly Investment Plan:
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Minimum monthly subscription amount: HKD1,000
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For termination of the Investment Plan within 24 months after subscription, an early termination fee of HKD200 will be levied in the event that a Unitholder holds the Fund for less than HKD20,000 on the relevant Dealing Day.
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HOW TO SUBSCRIBE OR REDEEM UNITS OF THE FUND
Simply apply for subscription or redemption of the Fund at any BEA branch on any business day.
FUND FACTS
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Class B Unit |
Class C Unit |
| Fund Inception Date |
4 September, 2006 |
| Fund Base Currency |
HK Dollar |
| Minimum Initial Investment Amount |
HKD10,000* |
| Minimum Additional Investment Amount |
HKD5,000* |
| Minimum Holding Amount |
HKD10,000* |
| Management Fee |
1.50% p.a. |
| Trustee Fee |
0.15% p.a. |
| Preliminary Charge |
Up to 5% of the issue price |
Nil |
| Realisation Charge |
Waived# |
Up to 4% of the realisation price
- Holding period of less than 2 years : 4%
- Holding period of 2 years or more but less than 4 years : 2%
- Holding period of 4 years or more : Nil |
| Investment Manager |
BEA Union Investment Management Limited |
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(i) Inclusive of the preliminary charge (for Class B Units only)
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The Manager may at its discretion agree to accept applications for investment of smaller amounts.
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Pursuant to the Trust Deed of the Fund, the Manager is entitled to levy a realisation charge on the realisation of Class B Units of up to 0.5% of the realisation price of such Units. The Manager currently agrees to waive such realisation charge. |
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For details, please visit your nearest BEA location. With over 120 branches and SupremeGold Centres, BEA operates one of the largest banking networks in Hong Kong.
Enquiry Hotline: 2211 1311 |
FINANCIAL STATEMENTS
2006 Annual Report
2007 Interim Report
Before entering into any transaction, investors should take reasonable steps to ensure that they understand the product / transaction and have made an independent assessment of the appropriateness of the transaction and are relying on their own assessment of the investment risks associated with the transaction or the Fund's suitability for their purpose, in the light of their own objectives and circumstances.
The above-mentioned information is only a brief introduction to the Fund. For all details, interpretation of terminology in respect of the Fund, and emerging market risks, please refer to the Explanatory Memorandum of the Fund. Investors should also read the Explanatory Memorandum of the Fund for detailed information prior to any subscription.
Investments in the Fund are subject to investment risks, including the possible loss of principal amount invested. Investors should be aware that the price of units may go up as well as down as the investments of the Fund are subject to market fluctuations and to the risks inherent in all investments. Past performance of the Fund is not indicative of future performance.
BEA reserves the right to amend the content of this webpage without prior notice and retains the final decision right on any disputes.
The Fund has been authorised by the Securities and Futures Commission in Hong Kong. However, such authorization does not imply official approval or recommendation.
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