i Capital China Fund


i Capital China Fund (the “Sub-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 Sub-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 Sub-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 Sub-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 Sub-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 Sub-Fund’s investment horizon will not be restricted by sector or market cap.

The Sub-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 Sub-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 Sub-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 Sub-Fund.

In seeking to achieve the long term capital appreciation investment objective of the Sub-Fund, the Manager may consider a broad variety of factors and circumstances in the selection of securities and construction of the Sub-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: 2.85%
With performance fee: 3.46%

#The ongoing charges figure is an annualized ongoing charges incurred by the Sub-Fund from 1 August 2020 to 31 January 2021 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 takes into account the amount of reimbursements by the Manager to the Sub-Fund for the half-year ended 31 January 2021. 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 USD5,000
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
    30 April 2021 US$ 1.0937
    23 April 2021 US$ 1.0908
    16 April 2021 US$ 1.0623
    9 April 2021 US$ 1.0560
    1 April 2021 US$ 1.0420
    26 March 2021 US$ 1.0329
    19 March 2021 US$ 1.0268
    12 March 2021 US$ 1.0297
    5 March 2021 US$ 1.0445
    26 February 2021 US$ 1.0370
    19 February 2021 US$ 1.1083
    11 February 2021 US$ 1.1086
    5 February 2021 US$ 1.0658
    29 January 2021 US$ 1.0526
    22 January 2021 US$ 1.0787
    15 January 2021 US$ 1.0952
    8 January 2021 US$ 1.1284
    31 December 2020 US$ 1.0997
    24 December 2020 US$ 1.0597
    18 December 2020 US$ 1.0748
    11 December 2020 US$ 1.0612
    04 December 2020 US$ 1.0764
    27 November 2020 US$ 1.0576
    20 November 2020 US$ 1.0663
    13 November 2020 US$ 1.0713
    6 November 2020 US$ 1.0693
    30 October 2020 US$ 1.0138
    23 October 2020 US$ 1.0208
    16 October 2020 US$ 1.0078
    9 October 2020 US$ 0.9646
    30 September 2020 US$ 0.9272
    25 September 2020 US$ 0.9180
    18 September 2020 US$ 0.9647
    11 September 2020 US$ 0.9413
    4 September 2020 US$ 0.9863
    28 August 2020 US$ 0.9676
    21 August 2020 US$ 0.9430
    14 August 2020 US$0.9458
    7 August 2020 US$0.9297
    31 July 2020 US$0.9225
    24 July 2020 US$0.8989
    17 July 2020 US$0.9081
    10 July 2020 US$0.9479
    3 July 2020 US$0.8972
    26 Jun 2020 US$0.8613
    19 Jun 2020 US$0.8643
    12 Jun 2020 US$0.8643
    5 Jun 2020 US$0.8564
    29 May 2020 US$0.8346
    22 May 2020 US$0.8125
    15 May 2020 US$0.8325
    8 May 2020 US$0.8525
    29 Apr 2020 US$0.8468
    24 Apr 2020 US$0.8362
    17 Apr 2020 US$0.8341
    9 Apr 2020 US$0.8218
    3 Apr 2020 US$0.7868
    27 Mar 2020 US$0.7963
    20 Mar 2020 US$0.7843
    13 Mar 2020 US$0.8370
    6 Mar 2020 US$0.9019
    28 Feb 2020 US$0.8931
    21 Feb 2020 US$0.9242
    14 Feb 2020 US$0.9226
    7 Feb 2020 US$0.8970
    31 Jan 2020 US$0.9001
    24 Jan 2020 US$0.9231
    17 Jan 2020 US$0.9649
    10 Jan 2020 US$0.9467
    3 Jan 2020 US$0.9335
    27 Dec 2019 US$0.9226
    20 Dec 2019 US$0.8965
    13 Dec 2019 US$0.8905
    6 Dec 2019 US$0.8680
    29 Nov 2019 US$0.8525
    22 Nov 2019 US$0.8541
    15 Nov 2019 US$0.8500
    8 Nov 2019 US$0.8692
    1 Nov 2019 US$0.8546
    25 Oct 2019 US$0.8372
    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 Apr 2021)

    Total % change

    2-Jan-2018 30-Apr-2021 Cumulative
    % Change
    Compound Return
    ICCF USD 1.0000 USD 1.0937 9.37% 2.73%