The investment objective of the Sub-Fund is to seek capital appreciation through the acquisition and sale of fixed income securities denominated in RMB, HKD, USD and SGD. The Sub-Fund will mostly invest in fixed income instruments (which may be fixed or floating) of both sovereigns and corporations denominated in the following currencies : Chinese RMB (CNY), Chinese Offshore RMB (CNH), Hong Kong Dollars (HKD), CNY synthetic bonds (USD), and Singapore Dollar (SGD). A synthetic CNY bond is a combination of financial instruments which replicate the cash flow and performance of a bond denominated in CNY.
The fixed income securities in which the Sub-Fund invested will include government bonds issued by the governments of China, Hong-Kong or Macao and corporate securities issued by Asian and multi-national corporations in RMB, HKD, USD or SGD. Investments will be listed or traded in Asia and can be made in investment grade securities and non-investment grade securities subject to some restrictions. The Sub-Fund may also invest in debt and debt related securities traded in the China Interbank Bond Market ('CIBM') through the China Hong Kong Mutual Access Program ('Bond Connect').