Conclusion of IOP and Commencement of Fund Public Launch
(11 July 2019) Foundation Asset Management (HK) Limited (“Foundation”) is pleased to announce conclusion of Initial Offering Period and commencement of public launch of Foundation China Equity Fund (“the Fund”), an SFC-authorized public fund.
Foundation would like to express its sincere gratitude to all cornerstone investors, with special thanks to ICBC Asset Management (Global) Company Limited (“ICBC Asset Management (Global)”) and Orient International Investment Products Limited.
Foundation China Equity Fund is Foundation’s first public fund, domiciled in Hong Kong. The Fund will be actively managed and primarily investing in equities issued by companies that derive a significant portion of revenues or profits from China. The investment objective is to maintain a consistent value-investing approach with a focus on liquidity and high return. The bottom-up analysis coupled with flexibility in exposure adjustments, will provide strong downside protection for the Fund. The Fund will continue the award-winning investment philosophy and strategy of Foundation China Opportunity Fund, building on its long 12+ years track record.
Mr. Fan YANG, Chief Executive Officer of ICBC Asset Management (Global), commented: “Being the wholly-owned subsidiary of Industrial Commercial Bank of China (Asia) Limited, ICBC Asset Management (Global) can assist Foundation in connecting China with the global markets.”
Mr. Michael LIANG, Chief Investment Officer of Foundation, suggested: “Amid US-China trade war and market uncertainties, quality stocks can be overly penalized thus undervalued, presenting opportunities to value investors like us. With continuous industry consolidation, larger Chinese companies are gaining better financial terms and pricing power at the expenses of smaller companies. We believe this is the right time to invest.”
Foundation, an asset management firm with both global prospective and deep local knowledge of China, is dedicated to deliver first-class investment solutions to global investors. After years of endeavor, Foundation is rapidly building out a series of public funds, including Chinese equities, global multi-assets and Chinese high yield USD bond funds.
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Investment involves risks. Past performance is not indicative of future performance. Investors should read the relevant prospectus for details, including the risk factors and product features. This material has not been reviewed by the Securities and Futures Commission and is issued by Foundation Asset Management (HK) Limited. All data (including fund and reference index performances) is sourced from Foundation unless otherwise stated. Performance of the share class is calculated based on NAV to NAV, gross income re-invested in share class currency.
Foundation China Equity Fund
The Fund aims to maintain a consistent value-investing approach with a focus on liquidity and high return by primarily investing in equities issued by companies that are incorporated in China or companies which have significant operations in or derive a significant portion of revenue or profits from China.
• The Fund may invest in financial derivative instruments ("FDI") for efficient portfolio management (including for hedging) which may expose to higher leverage, counterparty, liquidity, valuation, volatility, market and over the counter transaction risks. The Fund will not invest extensively in FDI for investment purpose.
• Dividend payments may, at the sole discretion of the Investment Manager, be made out of the Fund’s capital or effectively out of the Fund’s capital which represents a return or withdrawal of part of the amount investors originally invested and/or capital gains attributable to the original investment. This may result in an immediate decrease in the NAV per share and the capital of the Fund available for investment in the future and capital growth may be reduced.
• This investment may involve risks that could result in loss of part or entire amount of investors’ investment.
• Before you decide to invest, you should make sure the intermediary has explained to you that the Fund is suitable to you.
• In making investment decisions, investors should not rely solely on this material.