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PRODUCT KEY FACTS
Fidelity WorldWide Fund – RMB Bond Fund
FIL Investment Management (Hong Kong) Limited 富達基金(香港)有限公司 (as Investment Manager)
January 2015
This statement provides you with key information about this product.
This statement is part of the Explanatory Memorandum.
You should not invest in this product based on this statement alone.
Quick facts
Investment Manager:
FIL Investment Management (Hong Kong) Limited 富達基金(香港)有限公司
Trustee: Cititrust Limited
Dealing frequency:Daily
Base currency:
RMB
Dividend policy:
Class A-ACC-RMB and Class A-ACC-USD
No dividends will be paid. All interest and other income earned on the investment will
be accumulated and re-invested.
Class A-MDIST-RMB
Subject to the Investment Manager’s discretion, it is currently intended that distributions
(if any) will be made on a monthly basis in RMB and will be declared on the first
business day of each month.
Class A-MINCOME(G)-RMB
Subject to the Investment Manager's discretion, dividends will be declared monthly
normally on the first business day of each month and will be paid accordingly. The
Investment Manager expects to recommend distribution of substantially the whole
gross investment income amount for most of the time, and distributions may be paid
out of capital.
Investors should note that as fees and expenses may be charged to capital of the
fund, this will result in an increase in distributable income for the payment of dividends.
The fund may therefore pay dividend directly out of capital and/or effectively out of
capital. Such payment of dividends out of capital represents a return or withdrawal
of part of the amount originally invested or from any capital gains attributable to the
original investment. Such distributions may result in an immediate decrease in the net
asset value per unit of the fund.
Financial year end of this fund: 31 December
Ongoing charges over a year: Class A-ACC-RMB^: 1.07%
Class A-MDIST-RMB^: 1.09%
Class A-ACC-USD#:
1.08%
Class A-MINCOME(G)-RMB#: 1.08%
^The ongoing charge figure for each class of units is based on ongoing expenses
chargeable to the relevant class for the year ended 31 December 2013 expressed
as a percentage of the average net asset value of the relevant class for the same
period. This figure may vary from year to year.
#This figure is an estimate only and represents the sum of the estimated ongoing
expenses chargeable to the relevant class expressed as a percentage of the
estimated average net asset value of the relevant class.
Minimum investment:
Initial Investment
Subsequent Investment
Class A-ACC-RMB
USD2,500
USD1,000
Class A-ACC-USD
USD2,500
USD1,000
Class A-MDIST-RMB
USD2,500
USD1,000
Class A-MINCOME(G)-RMB USD2,500
USD1,000
Note: Class A-ACC-USD Units will be available for subscription with effect from 19 January 2015.
What is this product?
Fidelity WorldWide Fund is a unit trust constituted by the trust deed and governed by Hong Kong law. Fidelity WorldWide
Fund - RMB Bond Fund (the “fund”) is a sub-fund of Fidelity WorldWide Fund.
Fidelity WorldWide Fund – RMB Bond Fund
Objectives
n
The fund aims to achieve income and capital appreciation via exposure to RMB denominated fixed income/
debt securities, fixed income/debt instruments and deposits which include but are not limited to convertible
bonds, corporate bonds, government bonds, commercial papers, medium term notes, floating rate notes, bankers
acceptances and money market instruments (including but not limited to certificates of deposits, bank deposits,
negotiated term deposits and commercial papers). These investments may be settled in RMB or in other currencies
such as USD or HKD.
n Exposure to non-RMB denominated debt securities may be hedged in order to seek to maintain the currency exposure
in RMB.
Investment Policy
n
n
n
n
n
n
n
n
The fund will (a) invest at least 70% of its net asset value in fixed income/debt securities, fixed income/debt instruments and
deposits (including but not limited to bonds, commercial papers, bankers acceptances, notes, certificates of
deposits, and other RMB denominated and settled deposits and money market instruments) that are denominated
and settled in RMB;
(b) invest the remaining portion (i.e. up to 30%) of its net asset value in non-RMB assets that are or will be hedged
back to RMB (including, but not limited to, bonds denominated in RMB but settled in other currencies such as USD
or HKD); and
(c) limit any non-RMB assets without any RMB currency hedge up to 10% of its net asset value.
The Investment Manager will ensure that the fund will maintain an effective currency exposure to RMB (including
through currency hedging) of at least 90% of its net asset value.
As at the date of this document, the fund does not intend to invest directly in debt securities, money market instruments
or other securities issued in mainland China through a qualified foreign institutional investor (“QFII”). If an entity of
the FIL Group becomes a QFII, the fund may invest in securities issued within mainland China through such QFII. The
Investment Manager will seek the Trustee’s and the SFC’s prior approval and not less than one month’s prior notice
will be given to investors if the fund intends to make such investments.
The fund may invest in listed and unlisted instruments and securities of investment grade (i.e. rated as Baa3 or
above by Moody’s or BBB- or above by Standard & Poor’s or equivalent ratings by other rating agencies) or below
investment grade securities as well as unrated securities.
The fund may invest in other collective investment schemes as permitted by the applicable investment restrictions.
The fund may acquire forward contracts for the purpose of hedging back to the base currency of the fund. Forward
contracts include, but are not limited to non-deliverable forward and/or deliverable forward contracts. The fund may
also use swaps for hedging purposes.
The fund may invest in futures contracts and options for hedging and investment purposes. The net total aggregate
value of contract prices in respect of futures contracts entered into other than for hedging purposes may not exceed
20% of the total net asset value of the fund. The value of the fund’s investment in options not held for hedging
purposes in terms of the total amount of premium paid may not exceed 15% of the net asset value of the fund.
The fund will not invest in any structured deposits or structured products. The Investment Manager currently does not
intend to enter into any securities lending or repurchase transactions in respect of the fund.
The fund will not invest more than 10% of its net asset value in securities issued by or guaranteed by any single country
(including its government or a public or local authority of that country) with a credit rating below investment grade.
What are the key risks?
Investment involves risks. Please refer to the Explanatory Memorandum for details including the risk factors.
Investment risk
n The fund is an investment fund. The fund’s investment portfolio may fall in value and therefore your investment in the
fund may suffer losses.
RMB currency risk
RMB is not currently a freely convertible currency and is subject to exchange control imposed by the Chinese
government. Such control of currency conversion and movements in the RMB exchange rates may adversely affect the
operations and financial results of companies in the PRC which in turn will have impact on the net asset value of the
fund.
n
n
There is no assurance that RMB will not be subject to devaluation. Any devaluation of RMB could adversely affect the
value of the investors’ investments. If investors convert other currencies into RMB so as to invest in the RMB classes of
units and subsequently convert the RMB redemption proceeds back into other currencies, they may suffer a loss if RMB
depreciates against such other currencies.
n
Subject to the applicable investment restrictions, the fund may invest in securities that are denominated in RMB but
settled in other currencies (such as USD or HKD). Its performance may be adversely affected by the movements in the
exchange rates between RMB and such other currencies.
Fidelity WorldWide Fund – RMB Bond Fund
n
Investments acquired by the fund will mainly be denominated in RMB whereas the classes of units may be
denominated in other currencies. This may expose Unitholders to movements of the exchange rate between the
currency of the class of units they invest in and the currency in which the assets of the fund are held.
n
In calculating the value of non-RMB denominated assets and the prices of units of non-RMB classes, the Investment
Manager will normally apply the CNH exchange rate (i.e. the exchange rate for the offshore RMB market in China).
The CNH rate may be at a premium or discount to the exchange rate for the onshore RMB market in China (i.e. the
CNY exchange rate) and there may be significant bid and offer spreads. The value of the fund will thus be subject to
fluctuation.
Credit risk of RMB debt securities
If the issuer of any of the securities in which the fund invests defaults or suffers insolvency or other financial difficulties,
the value of such fund will be adversely affected.
n
n
RMB debt securities and bank deposits that the fund invests in are typically unsecured debt obligations and are not
supported by any collateral. The fund will be fully exposed to the credit/insolvency risk of its counterparties as an
unsecured creditor.
Credit rating downgrading risk
Investment grade securities invested by the fund may be subject to the risk of being downgraded to below investment
grade securities. In the event of downgrading in the credit ratings of a security or an issuer relating to a security, the
fund’s investment value in such security may be adversely affected.
n
Below investment grade and non-rated securities risk
The fund may invest in below investment grade or non-rated securities. Such securities are generally subject to a
higher credit risk and a greater possibility of default than more highly rated securities. The market for these securities
may be less active and their prices may be more volatile.
n
Risk of limited pool of investment and diversification risk
n
The quantity of RMB denominated debt and other securities that are available for investment is currently limited. The fund
may have to allocate a significant portion of its assets to RMB deposit until suitable securities are available in the market,
and this may adversely affect the fund’s return and performance.
n
The fund will invest primarily in securities denominated in RMB or have exposure to RMB. The fund is therefore likely to be
more volatile than a broad-based fund that adopts a more diversified strategy.
Liquidity risk
n RMB debt securities that are not listed may be subject to higher liquidity risk. The fund may have to liquidate such
securities at a substantial discount to meet any sizeable redemption requests and may as a result suffer losses.
n
The bid and offer spread of the price of RMB debt securities may be large, so the fund may incur significant trading
and realisation costs and may suffer losses accordingly.
Interest rates
The fund invests in debt securities, which are susceptible to interest rate changes and may experience significant price
volatility. Any fluctuation in interest rates may have an effect on the value of the debt securities held by the fund.
n
Currency hedging risk
The fund may enter into currency forward contracts for hedging purposes. Forward contracts are not traded on
exchanges and are not standardized. Trading in currency forward contracts is substantially unregulated. The principals
who deal in the forward markets are not required to continue to make markets in the currencies they trade and these
markets can experience periods of illiquidity. Market illiquidity or disruption could result in losses to the fund.
n Currency forward contracts do not eliminate fluctuations in the prices of the fund's securities or in foreign exchange
rates, or prevent loss if the prices of these securities decline. Performance may be strongly influenced by movements
in foreign exchange rates because currency positions held by the fund may not correspond with securities positions
held. In such circumstances, the fund’s asset may be exposed to the losses on and the costs of the relevant financial
instruments.
n
Counterparty risk
n The fund may be exposed to counterparty risk through investments as the counterparty or third party may not fulfill its
obligations to the fund. To the extent that a counterparty defaults on its obligations and the fund is prevented from
exercising its rights with respect to the investment in its portfolio, the fund may experience a decline in the value and
incur costs associated with its rights attached to the security.
Risks associated with distribution out of capital
n For Class A-MINCOME(G)-RMB units, dividends may be paid out of gross income while fees/charges may be charged
to capital of the fund. This will result in an increase in distributable income for the payment of dividends, and
therefore the fund may pay dividend directly out of capital and/or effectively out of capital. Investors should note that
the payment of dividends directly out of capital and/or effectively out of capital represents a return or withdrawal
of part of the amount they originally invested or from any capital gains attributable to the original investment. Such
distributions may result in an immediate decrease in the net asset value per unit of the fund. If there is a change to
this policy, prior approval will be sought from the SFC and affected investors will receive at least one month’s prior
written notification.
Fidelity WorldWide Fund – RMB Bond Fund
How has the fund performed?
n
5
n
4
3.4
n
3
(%)
2
1
0
n
2009
2010
2011
2012
2013
n
n
n
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
dividends reinvested.
These figures show by how much the Class A-ACCRMB increased or decreased in value during the
calendar year being shown. Performance data has
been calculated in RMB including ongoing charges
and excluding subscription fee and redemption fee
you might have to pay.
When no past performance is shown there was
insufficient data available in that year to provide
performance.
Fund launch date: 2012
Class A-ACC-RMB launch date: 2012
Class A - ACC -RMB is selec ted as the most
appropriate representative unit class as it has the
longest track record and is denominated in the
fund’s base currency.
Is there any guarantee?
This fund does not have any guarantees. You may not get back the full amount of money you invested.
What are the fees and charges?
Current Levels of Charges which may be payable by you
You have to pay the following fees when dealing in units of the fund.
#
Initial Charge
Up to 5.25%
Switching Charge #
Up to 5.25%
Redemption Charge
Up to 1%
You will be subject to a switching charge of up to 1% if you have already paid the full initial charge in respect of units
to be switched. If your investment in units to be switched was not subject to an initial charge or was subject to an initial
charge lower than the specified maximum, you will have to pay a switching charge of up to 5.25%.
Current Levels of Ongoing fees payable by the Fund
The following expenses will have to be paid out of the fund. They affect you because they reduce the return you get on
your investments.
Investment
Management Fee*
0.75% p.a. of net asset value
Trustee Fee*
Up to 0.02% p.a. of net asset value, subject to a minimum monthly fee of USD500
Administrator Fee*
0.06% p.a. of net asset value, subject to a minimum monthly fee of USD2,000
Performance Fee
Not applicable
Other Fees
You may have to pay other fees when dealing in units of the fund. Any other fees and charges are described in the
Explanatory Memorandum.
* You should note that some fees may be increased, up to a specified permitted maximum, by giving Unitholders not less
than one month’s prior notice. For details, please refer to the Explanatory Memorandum.
Fidelity WorldWide Fund – RMB Bond Fund
Additional Information
You generally buy, redeem or switch units at the fund’s next-determined net asset value after we receive your request,
directly or via the Authorised Distributor, in good order at or before 4:00 p.m.(Hong Kong time) on a dealing day,
being the fund’s dealing cut-off time. Before placing your orders, please check with the Authorised Distributor for their
internal dealing cut-off time (which may be earlier than the fund’s dealing cut-off time).
n The net asset value per unit of the fund is calculated on each business day and will be published at least once
a month in Hong Kong in the South China Morning Post and in Hong Kong Economic Times, and on the website
www.fidelity.com.hk*.
n The composition of dividend paid out of net distributable income and capital for the last 12 months are available from
the Investment Manager on request and also on the fund’s website: https://www.fidelity.com.hk/static/pdf/investor/
personal-investment/docs/fund_distribution_payment_composition.pdf*.
n For further information on the past performance of other unit classes offered to Hong Kong investors, please refer
to www.fidelity.com.hk*
n Investors may obtain information from the Investment Manager at +852 2629 2629.
n
Important
If you are in doubt, you should seek professional advice. The SFC takes no responsibility for the contents of this statement
and makes no representation as to its accuracy or completeness.
* Please note that the website has not been reviewed by the SFC.