i Capital China Fund


i Capital China Fund is a fund constituted in the form of a unit trust under i Capital Master Fund, an umbrella unit trust established under the laws of Hong Kong.

Investment Objective

The fund seeks to achieve long-term capital appreciation by primarily investing in equity securities issued by companies listed in Hong Kong, Shanghai and/or Shenzhen.

Investors should note that the fund’s allocation between instruments in the mainland China and the Hong Kong markets may change significantly from time to time.  This may result in the fund’s investment portfolio becoming more concentrated on either the mainland China market or the Hong Kong market from time to time.

Investment Strategy

The fund’s investment strategy is driven by the Manager’s long term value investing philosophy. The Manager adapts its value investing approach by considering political and economic factors, and aims at drawing on the intrinsic value of a company having regard to the principle of margin of safety (the difference between the intrinsic value of a stock and its market price) as its core investment philosophy. The fund’s investment horizon will not be restricted by sector or market cap.

The fund aims to invest predominantly in listed securities whilst maintaining a cash buffer on a temporary basis (pending suitable investment opportunities and also for defensive purposes). The actual asset allocation is driven by the Manager’s value investing philosophy which is based on two components: namely the valuation of a listed company AND its market price. When the Manager considers the market is undervalued and there are appropriate investment opportunities whereby listed companies are trading below their fair value, the fund may invest as much as 98% of its Net Asset Value in listed equity securities. In times of extreme market conditions such as when there are speculative bubbles in the mainland China and/or Hong Kong markets where the Manager considers that securities are overvalued and/or the mainland China or the Hong Kong economy is overheating, the fund’s assets may invest up to 100% in cash/cash equivalent products on a temporary basis (such as money market instruments) in order to mitigate risk and/or maintain liquidity of the fund.

In seeking to achieve the long term capital appreciation investment objective of the fund, the Manager may consider a broad variety of factors and circumstances in the selection of securities and construction of the fund’s portfolio. Such factors may include, but are not limited to, a company’s profitability, debt, valuation, growth prospects, actual or future cash flows, volatility, availability and liquidity of securities, sector outlook or prospects, the overall economic, political, tax and regulatory environment affecting the relevant securities and markets in mainland China and/or Hong Kong.

Dealing Information

Quick facts

Manager: Capital Dynamics Asset Management (HK) Private Limited
Trustee: BOCI-Prudential Trustee Limited
Custodian: Bank of China (Hong Kong) Limited
Ongoing charges over a year#+: Class A:
Without performance fee: 2.84%
With performance fee: 2.84%# The ongoing charges figure is an annualized ongoing charges incurred by the Sub-Fund from 1 August 2018 to 31 January 2019 based on the information in the latest interim report. It represents the sum of ongoing expenses chargeable expressed as a percentage of the average net asset value of the Unit class for the corresponding period. This figure may vary from year to year.The ongoing charges figure is an annualized figure taking into account the amount of reimbursements by the Manager to the Sub-Fund for the half-year ended 31 Jan 2019. Amortized portion of the set-up costs (based on amortization over first 5 accounting periods), the management fee and the trustee fee have been included in the ongoing charges figure.+ The ongoing charges figure will be capped at 2.90% of the average net asset value of the Sub-Fund over a 12-month period. Any ongoing expenses in excess of 2.90% will be borne by the Manager. For the avoidance of doubt, any performance fee payable to the Manager is excluded from this cap. Where the performance fee is levied, the component in the ongoing charges figure which does not include performance fee will be capped at the percentage stated above.If there is any change to the cap on ongoing charges, the Manager shall provide at least one month’s prior written notice to investors and obtain the SFC’s prior approval (where applicable).
Dealing frequency: Weekly (last Hong Kong Business Day of every week)
Base currency: USD
Dividend Policy: Class A: No distribution, any income received will be accumulated and reflected in the Unit price.
Financial year end: 31 July

Fees and Charges

Fee What you pay
Subscription Fee Nil
Switching fee^

(% of switching out amount)

5% for switching out of Units held for 1 year or less; Nil for switching out of Units held for more than 1 year

^For the avoidance of doubt, the switching fee will be charged for switching between classes of the Sub-Fund and switching between sub-funds of the i Capital Master Fund that are authorised by the SFC (if any).

Redemption fee

(% of redemption amount)

5% for Units held for 1 year or less; Nil for Units held for more than 1 year
Ongoing Fees Annual rate (as a % of the Sub-Fund’s Net Asset Value)
Management fee 1.5% (150 basis points)**
Trustee fee Up to 0.15% (15 basis points)**, subject to a minimum monthly fee of HK$40,000
Custodian fee Up to 0.0275% (2.75 basis points)
Performance fee 10% (1000 basis points) of the outperformance of the Net Asset Value per Unit during a performance period over the High Water Mark.

Outperformance means the amount by which the increase in Net Asset Value per Unit during the relevant performance period exceeds the High Water Mark.

High Water Mark is the higher of (i) the initial subscription price and (ii) the Net Asset Value per Unit as at the end of the performance period in respect of which a performance fee was last paid. Where a performance fee is payable for a performance period, the Net Asset Value per Unit on the last Valuation Day of that performance period will be set as the High Water Mark for the next performance period.

Performance fee accrues on each Valuation Day if the Net Asset Value per value exceeds the High Water Mark. On each Valuation Day, the performance fee accrual made (if any) on the previous Valuation Day will be reversed and a new performance fee accrual will be calculated. If the Net Asset Value per Unit is lower than or equal to the High Water Mark, any performance fee accrual will be reversed and no performance fee will be accrued.

For details and illustrative examples of the performance fee calculation, please refer to “Performance Fee” in Appendix 1 of the Explanatory Memorandum.

 Other fees You may have to pay other fees when dealing in the Units of the Sub-Fund.

**   The fees and charges may also be increased up to the maximum level as specified in the Explanatory Memorandum by giving at least one month’s prior notice to investors. Please refer to the Explanatory Memorandum for further details.

As we do not use marketing agents or distributors for our funds, we talk to investors directly and there are no sales charges.

If you are interested to start investing in the Fund, kindly email us at enquiries@capitaldynamics.hk or contact us through our hotline (852) 2153 1455.

To know more about the Fund, kindly download the Product Key Factsheet and Explanatory Memorandum here.

The Fund’s Initial Offering Period starts from 16th October 2017 till 30th November 2017.

Alternatively register your interest here:

Valuation date i CCF NAV
18 Oct 2019 US$0.8380
11 Oct 2019 US$0.8442
4 Oct 2019 US$0.8267
27 Sep 2019 US$0.8272
20 Sep 2019 US$0.8555
13 Sep 2019 US$0.8647
6 Sep 2019 US$0.8500
30 August 2019 US$0.8243
23 August 2019 US$0.8239
16 August 2019 US$0.8198
9 August 2019 US$0.8028
2 August 2019 US$0.8317
26 July 2019 US$0.8650
19 July 2019 US$0.8584
12 July 2019 US$0.8659
5 July 2019 US$0.8835
28 June 2019 US$0.8746
21 June 2019 US$0.8629
14 June 2019 US$0.8380
6 June 2019 US$0.8178
31 May 2019 US$0.8201
24 May 2019 US$0.8250
17 May 2019 US$0.8354
10 May 2019 US$0.8562
3 May 2019 US$0.8871
26 Apr 2019 US$0.8858
18 Apr 2019 US$0.9144
12 Apr 2019 US$0.9008
4 Apr 2019 US$0.9181
29 Mar 2019 US$0.8804
22 Mar 2019 US$0.8785
15 Mar 2019 US$0.8687
8 Mar 2019 US$0.8669
1 Mar 2019 US$0.8923
22 Feb 2019 US$0.8876
15 Feb 2019 US$0.8552
08 Feb 2019 US$0.8438
01 Feb 2019 US$0.8485
25 Jan 2019 US$0.8312
18 Jan 2019 US$0.8167
11 Jan 2019 US$0.8157
4 Jan 2019 US$0.7927


i CCF = The i Capital China Fund

Performance in USD (Inception to Sep 2019)

Total % change

2-Jan-2018 30-Sep-2019 Cumulative
% Change
Compound Return
ICCF USD1.0000 USD0.8272 -17.28% -10.32%