# Objective and Investment policy
Objective: The investment objective of the Sub-Fund is to maximise total return through the acquisition and sale of Chinese onshore renminbi-denominated (“RMB”) bonds.
Investment Policy: The Sub-Fund will invest in investment grade and renminbi-denominated fixed income securities including Chinese Government Bonds (“CGBs”), being bonds issued by the Central Government of China, Policy Financial Bonds (“PFBs”) (described below) and certain Panda Bonds (described below).
PFBs, also known as policy bank bonds, are issued by policy lenders or institutional banks set up by State Council of China including; China Development Bank (“CDB”), Agriculture Development Bank (“ADBC”) and Export-Import Bank (“EXIM Bank”). CDB is the largest issuer, accounting for 50% of outstanding PFBs. PFBs are entitled to explicit funding support through the People’s Bank of China’s (“PBOC”) relending scheme, giving them the same credit quality as CGBs for global investors.
Panda Bonds are onshore RMB-denominated bonds issued by non-Chinese issuers in the Chinese onshore RMB bond market. Foreign central banks, financial organisations and sovereign wealth funds can issue Panda Bonds in the China interbank bond market (“CIBM”).
The fixed income securities invested in by the Sub-Fund may be fixed or floating. The fixed income will be of investment grade. Investments will be listed or traded on the China Interbank Bond Market and will be made in investment grade securities with the following guidelines:
- Government bond holdings may be as high as 100% of fund NAV or as low as 0% of fund NAV.
- Exposure to any single individual investment grade corporate bond issuer will not surpass 10% of NAV.
- The Sub-Fund is not restricted as to the amount of cash or other ancillary liquid assets it may hold and may hold up to 100% of the Sub-Fund on a temporary basis in cash or other ancillary liquid assets at the discretion of the Investment Adviser, should market conditions require. The ancillary liquid assets that may be held or maintained by the Sub-Fund include but are not limited to, time deposits and money market instruments which may be received by the Sub-Fund on a short term basis.

The Sub-Fund’s individual security selection process combines both a detailed and thorough review of the macro-economic environment with individual security analysis aiming to unearth the most attractive security valuations relative to that security’s market. The typical holding period for the securities is around nine months. It is not intended to focus on any particular industry in making investment in corporate bonds.
The Sub-Fund will invest in fixed income securities in the People’s Republic of China (“PRC”) traded in the CIBM direct or via Bond Connect.
Currency futures and forwards may also be used to hedge against currency movements to which the Sub-Fund may be exposed. In addition, in the event of the establishment of an additional share class denominated in a currency other than a base currency, forward foreign exchange contracts may be used more specifically to hedge the value of that class in the Sub- Fund against changes in the exchange rate between the currency of denomination of the class and the base currency of the Sub-Fund.
The Fund is actively managed. The Sub-Fund will measure its performance against the Bloomberg Barclays China Treasury Total Return Index CNY solely for comparison purposes. The Investment Manager has discretion over the composition of the portfolio of the Sub-Fund subject to the Investment Objectives and Investment Policies of the Sub-Fund. For the avoidance of doubt, the Investment Manager may select securities not included in the Index, and may be wholly invested in securities which are not consistent with the Index.
You may buy units daily by submitting an application to the Sub- Fund’s administrator before 5 p.m. (Irish time) on the day falling 2 business days prior to the relevant valuation date. You may sell units daily by submitting an application to the Sub-Fund’s administrator before 5 p.m. (Irish time) on the day falling 2 business days prior to the relevant valuation date.
Recommendation: This Sub-Fund is appropriate for investors with a long-term investment horizon.
Dividends: It is not the current intention of the directors of the Manager that the Sub-Fund will declare or pay dividends and income earned by the Sub-Fund will be reinvested and reflected in the value of the Units.

Translation (ENES, 2021-02-19):
# Objetivo y política de inversión
Objetivo: El objetivo de inversión del subfondo es maximizar el rendimiento total mediante la adquisición y venta de bonos chinos denominados en renminbi onshore (“RMB”).
Política de inversión: El subfondo invertirá en valores con grado de inversión y en valores de renta fija denominados en renminbi, tales como bonos del Estado chino (“CGB”, por sus siglas en inglés), que son bonos emitidos por el Gobierno central de China, bonos de bancos políticos chinos (“PFB”, por sus siglas en inglés) (descritos más adelante) y determinados bonos panda (descritos más adelante).
Los PFB, también conocidos como bonos de bancos políticos, se emiten por entidades de préstamo gubernamentales o bancos institucionales establecidos por el Consejo de Estado de la República Popular China, a saber: El Banco de Desarrollo de China (“CDB” por sus siglas en inglés), el Banco de Desarrollo Agrícola de China (“ADBC” por sus siglas en inglés) y el Banco de Exportaciones e Importaciones de China (“EXIM Bank”). El CDB es el mayor emisor, ya que más del 50 % de los PFB en circulación proceden de dicha entidad. El plan de concesión de subpréstamos del Banco Popular de China (“PBOC”) otorga apoyo financiero explícito a los PFB, por lo que los eleva a la misma calidad crediticia que los CGB para los inversores globales.
Los bonos panda son bonos denominados en RMB onshore emitidos por emisores no chinos en el mercado chino de bonos en RMB onshore. Los bancos centrales extranjeros, los organismos financieros y los fondos soberanos de inversión pueden emitir bonos panda en el mercado interbancario de bonos de China (“CIBM”, por sus siglas en inglés).
Los valores de renta fija en los que invierte el subfondo pueden ser fijos o variables. La renta fija será de grado de inversión. Las inversiones cotizarán o se negociarán en el mercado interbancario de bonos de China y se efectuarán en valores con grado de inversión, de conformidad con las siguientes directrices:
- Las participaciones en bonos del Estado pueden alcanzar el 100 % del valor liquidativo del fondo o caer hasta el 0 % del valor liquidativo del fondo.
- La exposición a cualquier emisor individual de bonos corporativos con grado de inversión no superará el 10 % del valor liquidativo.
- El subfondo carece de restricciones relacionadas con el importe de efectivo u otros activos líquidos accesorios que pueda mantener, y podrá mantener la totalidad del subfondo en efectivo o en otros activos líquidos accesorios con carácter temporal, a discreción del asesor de inversiones, si las condiciones del mercado lo requieren. Los activos líquidos accesorios que puede