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PRODUCT KEY FACTS
Fidelity WorldWide Fund – RMB Bond Fund
FIL Investment Management (Hong Kong) Limited (as Investment Manager)
April 2017
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
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: 0.99%
Class A-MDIST-RMB: 0.97%
Class A-ACC-USD:
0.99%
Class A-MINCOME(G)-RMB: 0.99%
^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 2016 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.
Minimum investment:
Class A-ACC-RMB
Class A-ACC-USD
Class A-MDIST-RMB
Class A-MINCOME(G)-RMB Initial Investment
USD2,500
USD2,500
USD2,500
USD2,500
Subsequent Investment
USD1,000
USD1,000
USD1,000
USD1,000
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
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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 Hong
Kong). 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
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.
n
Fidelity WorldWide Fund – RMB Bond Fund
How has the fund performed?
n
7
n
6
5.5
5
(%)
n
4.3
4
3.4
3.4
3
2
1
0
n
2012
2013
2014
2015
2016
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 5:00 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 on every dealing
day in Hong Kong in the South China Morning Post and in Hong Kong Economic Times, and on the website
www.fidelity.com.hk 1.
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_FWWF.pdf 1.
n For further information on the past performance of other unit classes offered to Hong Kong investors, please refer
to www.fidelity.com.hk 1
n Investors may obtain information from the Investment Manager at +852 2629 2629.
n
1
Please note that the website has not been reviewed by the SFC.
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.
PRODUCT KEY FACTS
Fidelity WorldWide Fund – China A Select Fund
FIL Investment Management (Hong Kong) Limited (as Investment Manager)
April 2017
This Fund is not available for investment at the time of issue of this statement. The fund will be launched at the
Investment Manager’s discretion and this statement will be updated accordingly thereafter.
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 and RQFII Holder:
FIL Investment Management (Hong Kong) Limited
Trustee: Cititrust Limited
RQFII Custodian:
Industrial and Commercial Bank of China Limited
Dealing frequency:Daily
Base currency:
RMB
Dividend policy*:
Class A-ACC
No dividends will be paid. All interest and other income earned on the investment will
be accumulated and re-invested.
*Unless otherwise stated, dividends will not be paid out of capital and/or effectively
out of capital.
Financial year end of this fund: 31 December
Ongoing charges over a year^: Class A-ACC-HKD: 1.98%
Class A-ACC-USD: 1.98%
Class A-ACC-RMB:
1.98%
^As the fund is newly set up, 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-HKD
USD 2,500
USD 1,000
Class A-ACC-RMB
USD 2,500
USD 1,000
Class A-ACC-USD
USD 2,500
USD 1,000
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 - China A Select Fund (the “fund”) is a sub-fund of Fidelity WorldWide Fund.
The fund invests in China A-Shares in China through the RQFII quota of the Investment Manager or other permissible
means pursuant to the relevant laws and regulations. The fund is denominated in RMB.
Objectives
n
The fund aims to achieve long-term capital growth by investing primarily in China A-Shares.
Investment Policy
n
The fund will invest primarily (i.e. at least 70% of the fund's net asset value) in China A-Shares which (a) are
denominated and settled in RMB; and/or (b) are listed on the Shanghai Stock Exchange (“SSE”) or the Shenzhen
Stock Exchange through the RQFII quota of the Investment Manager and/or other permissible means pursuant to the
relevant laws and regulations. This includes investment of up to 100% of the fund’s net asset value in certain eligible
China A-Shares through the Shanghai-Hong Kong Stock Connect (“Stock Connect”).
n Where the Investment Manager deems it appropriate, the fund may invest up to 30% of its net asset value in China
B-Shares, China H-Shares and/or other equity securities listed and/or issued outside of the People’s Republic of China
("PRC").
n The fund may obtain indirect exposure to China A-Shares through investing up to 10% of its net asset value in China
A-Shares Access Products (“CAAPs”) (including equity-linked notes and participatory notes) which are linked to China
A-Shares and issued outside of China.
Fidelity WorldWide Fund – China A Select Fund
n
n
n
n
n
n
The fund will not invest in any investment funds (including but not limited to equity funds and fixed income funds) which
are registered with or authorised by the China Securities Regulatory Commission ("CSRC") for offer to the retail public
in the PRC.
The fund does not intend to invest in RMB denominated and settled fixed income instruments which are issued or
distributed within the PRC.
Where appropriate, the fund may invest in other permissible investments such as warrants traded on the Shanghai
Stock Exchange or the Shenzhen Stock Exchange or other financial instruments approved by the CSRC pursuant to the
PRC rules and regulations applicable to RQFIIs. It is the current intention of the Investment Manager that the fund may
acquire warrants traded in the PRC for hedging purposes only.
Subject to the applicable investment restrictions, the Investment Manager may acquire financial futures contracts (i.e.
stock index futures) listed on the China Financial Future Exchange (“CFFEX”) in the PRC for hedging purpose only or
financial futures contracts listed and issued outside of China for the account of the fund for investment and/or hedging
purposes. The fund’s exposure to such financial futures contracts (other than futures contracts entered into for hedging
purposes) in terms of the net total aggregate value of contract prices (whether payable to or by the fund under all
outstanding futures contracts) may not exceed 20% of the total net asset value of the fund.
The fund will not invest in any structured deposits (including currency-linked deposits, currency and interest ratelinked deposits, index-linked deposits or the like) or structured products as defined in the Securities and Futures
Ordinance. Nor will the fund invest in asset backed securities (including asset backed commercial paper). The
Investment Manager currently does not intend to enter into any securities lending, repurchase or similar over-thecounter transactions in respect of the fund. Any change to this investment restriction is subject to the prior approval of
the Securities and Futures Commission ("SFC") and not less than one month's prior notice will be given to the fund's
unitholders.
It is expected that the fund may hold up to 100 % of its net asset value in cash or near-cash instruments issued within
or outside China such as bank certificates of deposit, bank deposits and negotiated term deposits with authorised
financial institutions, in times of extreme market conditions such as in times of a prolonged bearish market or a severe
and rapid economic downturn in the PRC in order to protect the assets of the fund, mitigate risk or maintain liquidity
of the fund. Notwithstanding the above, not more than 20% of the fund’s net asset value shall be held as cash within
China.
Investment Strategy
n
In seeking to achieve long term capital growth of the fund, the Investment 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 the PRC.
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.
PRC market / single country investment risk
The fund invests primarily in securities related to the PRC market and may be subject to concentration risk. Investment
in the PRC market is subject to emerging market risk including political, economic, legal, regulatory and liquidity risks.
n
Equity securities risk
The risks associated with investments in equity securities may be high, because the investment performance of equity
securities depends upon a number of factors including but are not limited to adverse economic and market conditions,
changes in the general outlook for corporate earnings or risks associated with individual companies, which may
adversely affect the net asset value of the fund.
n
China A-Share market risks
n The China A-Share market may be illiquid, volatile and unstable (for example, due to the risk of suspension of a
particular stock or government intervention). Market volatility and settlement difficulties in the China A-Share market
may also result in significant fluctuations in the prices of the securities traded on such market and thereby may
adversely affect the value of the fund.
n
Trading in China A-Shares on the relevant stock exchange may be suspended if the trading price of the security has
increased or decreased to the extent beyond the trading band limit. Where the fund invests in such China A-Shares,
this may adversely impact the performance of the fund.
n
Foreign investors including the fund are subject to certain shareholding restrictions when investing in China A-Shares
of a listed company. Should the shareholdings exceed the shareholding restrictions, the foreign investor such as the
fund would be required to unwind its position on the excessive shareholdings or be restricted from placing buy orders.
These may have adverse effect on the liquidity and performance of the fund’s investment in China A-Shares.
Fidelity WorldWide Fund – China A Select Fund
Risks relating to RQFII
n The RQFII status of the Investment Manager (as the RQFII holder) could be suspended or revoked which may have
an adverse effect on the fund’s performance as the fund may be required to dispose of its securities holdings. There
is also no assurance that Investment Manager (as RQFII holder) will continue to maintain its RQFII status or that
redemption requests can be processed in a timely manner.
n
There is no assurance that the Investment Manager (as RQFII holder) will make available RQFII quota that is sufficient
for the fund’s investment at all times. The RQFII quota may also be reduced by the State Administration of Foreign
Exchange of the People's Republic of China ("SAFE"). The Investment Manager may decide to close the fund to further
subscriptions if there is insufficient RQFII quota or if the total subscription amount reaches the amount of RQFII quota
allocated to the fund by the Investment Manager.
n
Although repatriations by RQFIIs in respect of the fund are currently not subject to any lock-up periods, repatriation
restrictions or prior approval, if the relevant PRC rules and regulations change in the future, any restrictions on repatriation
of invested capital and net profits may impact on the fund’s ability to meet redemption requests from the Unitholders.
n
Investing in the PRC through a RQFII will be subject to custodial risk of the RQFII Custodian appointed for purpose of
safekeeping assets in the PRC. In addition, the execution and settlement of transactions or the transfer of any funds or
securities may be conducted by brokers in the PRC (“PRC Brokers”). If the RQFII Custodian or the PRC Brokers default,
the fund may not be able to recover all of its assets and may incur a substantial or even a total loss.
Risks associated with Stock Connect
n The Stock Connect is a programme novel in nature. The relevant regulations are untested and subject to change and
such changes may have retrospective effect. The programme is subject to quota limitations which may restrict the
fund’s ability to invest in China A-Shares through the programme on a timely basis. Where a suspension in the trading
through the Stock Connect is effected, the fund’s ability to access the PRC market and hence its ability to pursue its
investment strategy will be adversely affected. The PRC regulations impose certain restrictions on selling and buying
and the fund may not be able to dispose of holdings of China-A-Shares in a timely manner. Also, a stock may be
recalled from the scope of eligible stocks for trading via the Stock Connect. This may adversely affect the investment
portfolio or strategies of the fund, for example, when the Investment Manager wishes to purchase a stock which is
recalled from the scope of eligible stocks. Due to the differences in trading days in the PRC and Hong Kong markets,
the fund may be subject to a risk of price fluctuations in China A-Shares on a day that the PRC market is open for
trading but the Hong Kong market is closed.
n
Trading in securities through the Stock Connect may be subject to clearing and settlement risk. If the PRC clearing
house defaults on its obligation to deliver securities / make payment, the fund may suffer delays in recovering its
losses or may not be able to fully recover its losses.
n
The Stock Connect requires the development of new information technology systems on the part of the stock
exchanges and exchange participants and may be subject to operational risk.
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 and/or dividend payment (if any) back into other
currencies, they may suffer a loss if RMB depreciates against such other currencies.
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.
Currency risk
The fund may be invested in part in assets quoted in currencies other than its base currency. The performance of the
fund will therefore be affected by movements in the exchange rate between the currencies in which the assets are
held and its base currency.
n
Risk of trading stock index futures
The fund may trade stock index futures for hedging purposes via the hedging quota granted by the CFFEX to the
Investment Manager. The CFFEX may reduce/cancel the hedging quota, impose limits on futures positions or require
the Investment Manager to close out its futures positions as a result of any breach or violation of the applicable rules
and regulations stipulated by the CFFEX. If any of the foregoing happens, the fund may not be able to achieve the
desired result of trading stock index futures for hedging purposes.
n
n
Investment in stock index futures may be subject to significant regulatory risks, and authorities in China may
promulgate new rules from time to time. Any changes to the prevailing rules and regulations may have an adverse
impact on stock index futures traded by the fund.
Fidelity WorldWide Fund – China A Select Fund
Hedging risk
n Derivatives may be used by the fund for hedging purposes. The use of derivatives may lead to a higher volatility in
the net asset value of the fund than might otherwise be the case. It may also give rise to liquidity, counterparty and
valuations risks at times. In adverse situations, the fund’s use of derivative instruments for hedging purposes may
become ineffective and the fund may suffer significant losses.
Mainland China tax risk
The Investment Manager currently intends to make provisions for any Mainland China taxes in respect of dividends
received on China A-Shares (including those acquired through the Stock Connect), CAAPs, China B-Shares and China
H-Shares, at a rate of 10% (or such other rate as advised by the fund’s tax adviser from time to time).
n
n
The fund may recognize a gain or loss to the extent that any provision for tax made by the fund in respect of such
gains is more or less than any tax ultimately assessed. Moreover, there is a possibility that the current tax laws,
regulations and practice in Mainland China will be changed with retrospective effect in the future and any such
change may have an adverse effect on the asset value of the fund.
How has the fund performed?
As the fund is newly set up, there is insufficient data to provide a useful indication of past performance to investors.
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
Switching Charge
Up to 5.25%
#
Redemption Charge
#
Up to 5.25%
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*
Up to 1.50% 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 USD 500
Administrator Fee*
0.06% p.a. of net asset value, subject to a minimum monthly fee of USD 2,000
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 – China A Select 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 5:00 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 on every dealing
day in Hong Kong in the South China Morning Post and in Hong Kong Economic Times, and on the website
www.fidelity.com.hk 1.
n Investors may obtain information from the Investment Manager at +852 2629 2629.
n
1
This website has not been reviewed by the SFC.
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.
PRODUCT KEY FACTS
Fidelity WorldWide Fund – Global Equity Income Fund
FIL Investment Management (Hong Kong) Limited (as Investment Manager)
April 2017
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
Sub-Manager:
FIL Investments International (United Kingdom, internal delegation)
Trustee: Cititrust Limited
Dealing frequency:Daily
Base currency:
USD
Dividend policy*:
Class A
Dividends will be declared on the first business day of February and August of each
year. The Investment Manager expects to recommend distribution of substantially the
whole net investment income for the period. No distribution will be paid out of the
fund's capital.
Class A-ACC
No dividends will be paid. All interest and other income earned on the investment will
be accumulated and re-invested.
Class A-HMDIST(G) (hedged)#
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 for the period. The Investment Manager may also determine
if and to what extent dividends may include distributions from both realised and
unrealised capital gains as well as from capital. Such distributions may include a
premium when the interest rate of the hedged currency is higher than the interest rate
of the base currency of the fund and may be discounted when the interest rate of the
hedged currency is lower than the interest rate of the base currency of the fund.
Class A-MINCOME(G) (hedged)#
Subject to the Investment's 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 the capital.
#Investors should note that as fees and expenses may be charged to the 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.
*Unless otherwise stated, dividends will not be paid out of capital and/or effectively
out of capital.
Financial year end of this fund: 31 December
Ongoing charges over a year^: Class A-ACC-USD: 3.22%
^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 2016 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.
Minimum investment:
Initial Investment
Subsequent Investment
All Classes
USD 2,500
USD 1,000
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 - Global Equity Income Fund (the “fund”) is a sub-fund of Fidelity WorldWide Fund.
Fidelity WorldWide Fund – Global Equity Income Fund
Objectives
n
The fund aims to achieve income and long-term capital growth by investing principally (i.e. at least 70% of the fund's
net asset value) in income-producing equity securities globally. The Investment Manager will target investments which
it believes offer attractive dividend yields in addition to price appreciation.
Investment Policy
n
n
n
n
n
n
The Investment Manager will actively select individual equity securities based on their potential to generate income
and capital growth.
The Investment Manager may at its discretion select equity securities of any company and tactically allocate any of
the fund's investments to any particular geographical region, industry sector or companies with a particular market
capitalization if it believes that, relative to other equities, they may offer greater potential for income and capital
growth.
In addition, the Investment Manager has the freedom to invest the remaining assets (i.e. up to 30% of the fund’s net
asset value) outside the funds’ principal asset classes. These include (but are not limited to) listed futures, money
market instruments, commercial paper and certificates of deposit. The fund’s exposure to listed futures (other than
futures contracts entered into for hedging purposes) in terms of the net total aggregate value of contract prices (whether
payable to or by the fund under all outstanding futures contracts) may not exceed 20% of the total net asset value of
the fund. The fund will not invest in debt securities.
Subject to the applicable investment restrictions, the fund may use other derivative instruments for hedging purposes.
The fund may invest up to 10% of its net asset value in China A-Shares and China B-Shares.
The fund will not invest in any structured deposits (including currency-linked deposits, currency and interest ratelinked deposits, index-linked deposits or the like) or structured products as defined in the Securities and Futures
Ordinance. Nor will the fund invest in asset backed securities (including asset backed commercial paper). The
Investment Manager currently does not intend to enter into any securities lending, repurchase, or similar over-thecounter transactions in respect of the fund. Any change to this investment restriction is subject to the prior approval of
the Securities and Futures Commission ("SFC") and not less than one month's prior notice will be given to the fund's
unitholders.
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.
Equity securities risk
The risks associated with investments in equity securities may be high, because the investment performance of equity
securities depends upon a number of factors including but are not limited to adverse economic and market conditions,
changes in the general outlook for corporate earnings or risks associated with individual companies, which may
adversely affect the net asset value of the fund.
n
Dividend risk
n Although the fund will generally invest in globally income-producing equities, it is not guaranteed that all underlying
investments will generate dividends. To the extent that underlying investments of the fund are income producing,
higher dividend yields generally mean that there will be reduced capital appreciation.
Currency risk
The fund may be invested in assets quoted in currencies other than its base currency. The performance of the fund
will therefore be affected by movements in the exchange rate between the currencies in which the assets are held
and the base currency of the fund.
n
European risk
The fund's performance will be closely tied to the economic, political, regulatory, geopolitical, market, currency or
other conditions in the European Economic Area and could be more volatile as a result. In light of the concerns on
sovereign credit risk of certain European countries and in particular these countries' fiscal conditions, the fund may be
subject to increased liquidity, price, and foreign exchange risk. If there are adverse credit events in certain European
countries e.g. downgrade of the sovereign credit rating of a European country or a European financial institution, the
performance of the fund could decline significantly and will possibly result in significant loss. Measures taken by the
governments of the European countries, central banks and other authorities to address their economic and financial
problems may not be effective and such failure may result in further deterioration of these countries’ fiscal conditions.
n
Emerging market risk
The fund may invest in securities in emerging markets. Prospective investors should note that investment in emerging
markets involve risks such as limited liquidity, price volatility, restrictions on foreign investment and repatriation of
capital, high inflation and interest rates and political and social uncertainties, which could adversely affect the value
of the fund’s investments.
n
Fidelity WorldWide Fund – Global Equity Income Fund
Risk associated with futures
n The risk to the buyer or seller of an exchange-traded future is the change in value of the underlying reference index/
security/contract/bond, which may not be fully reflected in the value of the futures contract. The underlying instrument
of the futures contract may be different from the instrument to which exposure is sought, the correlation risk could be
significant and could result in substantial losses to the fund.
Hedging risk
Derivatives may be used by the fund for hedging purposes. The use of derivatives may lead to a higher volatility in
the net asset value of the fund than might otherwise be the case. It may also give rise to liquidity, counterparty and
valuations risks at times. In adverse situations, the fund’s use of derivative instruments for hedging purposes may
become ineffective and the fund may suffer significant losses.
n
Risks associated with RMB classes of units
RMB currency risk - Investors in unit classes denominated in RMB (“RMB classes”) should note that there is also no
assurance that the RMB will not be subject to devaluation. Any devaluation of the RMB could adversely affect the
value of investors’ investments in the RMB classes of units.
n
If investors convert other currencies into RMB so as to invest in the RMB classes of units and subsequently convert the
RMB redemption proceeds and/or dividend payment (if any) back into other currencies, they may suffer a loss if RMB
depreciates against such other currencies.
When calculating the value of the RMB classes of units, the Investment Manager will normally apply the CNH
exchange rate for the offshore RMB market in Hong Kong. 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 RMB classes will thus be subject to fluctuation. In respect of the non-hedged RMB
classes of units, where RMB depreciates against currencies of the non-RMB denominated underlying investments of
the fund, (i) investors may suffer losses even if there are gains or no losses in the value of the non-RMB-denominated
underlying investments; or (ii) investors may suffer additional losses if the non-RMB-denominated underlying
investments of the fund fall in value.
n
Risks relating to hedged RMB classes - In respect of the hedged RMB classes of units, the Investment Manager
may attempt to hedge the base currency of the fund and/or other currencies of non-RMB-denominated underlying
investments of the fund back to RMB. The costs of the hedging transactions will be reflected in the net asset value of
the hedged RMB classes of units and therefore, an investor of such hedged RMB classes of units will have to bear
the associated hedging costs. If the counterparties of the instruments used for hedging purpose default, investors of
the hedged RMB classes of units may be exposed to RMB currency exchange risk on an unhedged basis and may
therefore suffer further losses.
There is no guarantee that the hedging strategy will be effective and you may still be subject to the RMB currency risk
which may apply to the non-hedged RMB classes.
Whilst the hedging strategy may protect investors against a decline in the value of the fund's base currency and/or
other currencies of non-RMB-denominated underlying investments relative to RMB, investors will not benefit from any
potential gain in the value of the hedged RMB classes of units if the fund's base currency and/or other currencies of
non-RMB-denominated underlying investments of the fund rise against RMB.
n
Risk of not receiving RMB upon redemption of investments and/or dividend payments - RMB is currently not a freely
convertible currency as it is subject to exchange control imposed by the PRC government. The Chinese government’s
imposition of restrictions on the repatriation of RMB out of the PRC may limit the depth of the RMB market outside the
PRC and restrict the ability of the fund to meet redemption requests and/or pay dividends in RMB for the RMB classes
in a timely manner.
Even if the fund aims to pay redemption proceeds and/or dividends to investors of the RMB classes of units in RMB,
investors may not receive RMB upon redemption of their investments or receive dividend payments in RMB. There is
also a risk that payment of investors’ redemption proceeds and/or dividends in RMB may be delayed when there is
not sufficient RMB for currency conversion for settlement of the redemption proceeds and dividends.
Risks associated with distribution out of capital
For Class A-HMDIST(G) (hedged) units and Class A-MINCOME(G) (hedged) 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.
n
Fidelity WorldWide Fund – Global Equity Income Fund
How has the fund performed?
n
1
n
n
(%) 0.5
0.2
n
0
2012
2013
2014
2015
2016
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-ACCUSD increased or decreased in value during the
calendar year being shown. Performance data has
been calculated in USD 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: 2015
Class A-ACC-USD launch date: 2015
Class A - ACC -U S D is selec ted as the m os t
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*
Up to 1.50% 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 USD 500
Administrator Fee*
0.06% p.a. of net asset value, subject to a minimum monthly fee of USD 2,000
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 – Global Equity Income 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 5:00 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 on every dealing
day in Hong Kong in the South China Morning Post and in Hong Kong Economic Times, and on the website
www.fidelity.com.hk 1.
n The composition of dividends 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_FWWF.pdf 1.
n Investors may obtain information from the Investment Manager at +852 2629 2629.
n
1
This website has not been reviewed by the SFC.
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.