YOUR GOALS,OUR COMMITMENT.

NikkoAM-ICBCSG China Bond ETF
July 2024 Factsheet

Fund Details

Investment Objective
The investment objective of the Fund is to achieve long term capital growth by
replicating the returns of the ChinaBond ICBC 1-10 Year Treasury and Policy Bank
Bond Index (the “Index”).
The Fund will offer to investors a Chinese bond investment universe that isincreasingly growing in size and foreign participation. It invests in bonds issued
by:•

the Chinese government; and•the 3 Chinese policy banks - Agricultural Development Bank of China(ADBC), China Development Bank (CDB), Export-Import Bank of China(CEXIM)

Performance (%)
Share Class
RMB
SGD

NAV-NAV
BenchmarkNAV-NAV
Benchmark

3M
1.69
1.80
0.42
0.04

6M
2.94
3.09
2.41
2.51

1Y
4.86
5.19
4.57
4.79

3Y
3.87
4.18
-0.20
-0.07

5Y
-

Since
Inception
4.24
4.58
1.56
1.74

RMB
SGD

RMB Class Units: RMB
SGD Class Units: SGD

SecondaryCurrency
Fund Size

RMB Class Units: USD

Total UnitsRMB Class Units:
225,169,000
SGD Class Units:
27,858,000
Nil

Initial Sales
ChargeRealisation
ChargeManagement
Fee
Trustee Fee
BenchmarkDealing
Frequency
Price Quote
Distribution
Frequency1

Rolling Returns (%)
Share
Class

Primary
Currency

31/07/2023 31/07/2024

31/07/2022 31/07/2023

31/07/2021 31/07/2022

NAV-NAV

4.86

3.14

3.61

Benchmark

5.19

3.43

3.94

NAV-NAV

4.57

-5.98

1.11

Benchmark

4.79

-6.38

1.73

Financial YearEnd
MarketProfessionals
TrusteeStock
Exchange

Source: Nikko Asset Management Asia Limited as of 31 July 2024.
Returns are calculated on a NAV-NAV basis and assuming all dividends anddistributions are reinvested, if any. Returns for period in excess of 1 year are
annualised. Past performance is not indicative of future performance.

Subscription
andRedemption

RMB 1,456.15 million

Nil
0.15% p.a.
0.02% p.a.
ChinaBond ICBC 1-10
Year Treasury and
Policy Bank Bond
Index
Daily
www.nikkoam.com.sg/etf/china-bond-etf
RMB Class Units: Nil.
SGD Class Units:
Semi-annual
distributions around
January and July ofeach year.
31-DecIn-kind subscription/
redemption isavailable
DBS Trustee Limited
Singapore Exchange
Securities Trading
LimitedMinimum 1 unit via
SGX-ST (Cash or SRS)
or minimum 50,000
units via participating
dealers (usual fees
and charges apply)

1 Distributions are not guaranteed and are at the absolute discretion of theManager. Any distribution is expected to result in an immediate reduction ofFund’s NAV. Distributions may be paid out of capital which will result in capitalerosion and the reduction in the Fund’s NAV, which will be reflected in theredemption price of the Units.
1

NIKKOAM-ICBCSG CHINA BOND ETF

Fund Holdings
Top 10 Holdings
GOVERNMENT OF CHINA 2.75% 17-FEB-2032
GOVERNMENT OF CHINA 2.68% 21-MAY-2030
GOVERNMENT OF CHINA 3.03% 11-MAR-2026
GOVERNMENT OF CHINA 2.85% 04-JUN-2027
GOVERNMENT OF CHINA 3.12% 05-DEC-2026
GOVERNMENT OF CHINA 3.02% 22-OCT-2025
GOVERNMENT OF CHINA 2.35% 25-FEB-2034
GOVERNMENT OF CHINA 2.28% 25-NOV-2025
AGRICULTURAL DEVELOPMENT BANK OF CHINA 2.87%
14-MAY-2027
GOVERNMENT OF CHINA 3.27% 19-NOV-2030

Weight
1.8%
1.8%
1.8%
1.6%
1.4%
1.4%
1.4%
1.4%
1.3%
1.3%

Issuer Allocation
Government Of China

40.3%

China Development Bank

24.9%

Agricultural Development Bank Of China

18.1%

Export-Import Bank Of China

15.3%

Cash and/or Derivatives

1.4%
0%

20%

40%

60%

Cash in allocation charts includes cash equivalents.
Percentages of allocation may not add to 100% due to rounding error.
Source: Nikko Asset Management Asia Limited as of 31 July 2024 .

YOUR GOALS, OUR COMMITMENT.

2NIKKOAM-ICBCSG CHINA BOND ETF

Fund Characteristics
Share Class

3-YearAnnualised
Tracking Error

RMB
SGD

0.06%
0.93%

Fund
BenchmarkWeighted
AverageYield
to Maturity2
(%)
1.95
1.97

Weighted
Average
Duration3(years)Average
CreditRating4

Number ofHoldings

4.18
4.20

A+
A+

131
-

Fund Information
Share
Class

Listing Date

NAV

ISIN

Bloomberg Ticker Trading Name

SGX Stock CodePrimary Currency(RMB): ZHY SP

Primary Currency(RMB): ZHY

SecondaryCurrency (USD):ZHD SP

RMB

24 November 2020 RMB 5.829

SGXC29409643

SGD

24 November 2020 SGD 0.9563

SGXC30096447 ZHS SP

Primary Currency(RMB): NikkoAMICBCSG CNB CNY

Secondary Currency
Secondary Currency (USD): ZHD(USD): NikkoAMICBCSG CNB US$
NikkoAM-ICBCSGZHS
CNB S$

Source: Nikko Asset Management Asia Limited as of 31 July 2024 .
2 Weighted Average Yield to Maturity (%) is an average yield calculated by weighting each security presently held by theFund at time of calculation with capitalisation and duration. Yield to Maturity and Yield to Call measures are used in thecalculation for non-callable and callable bonds respectively. The figure is for reference only and would vary from time totime due to market conditions and it does not represent the fund/sub-fund’s distribution yield or actual rate of return.
3 Weighted Average Duration (years) is an average duration weighted with capitalisation, and the figure is for reference

only and would vary from time to time due to market conditions.
4 Cash is included in the calculation of the average credit rating and is rated as AAA regardless of currencies held. The credit

ratings of the underlying fixed income securities are determined by S&P and/or Moody’s, and where official credit ratings
are unavailable, Nikko AM Asia’s internal credit ratings are used.

YOUR GOALS, OUR COMMITMENT.

3

NIKKOAM-ICBCSG CHINA BOND ETF

Important Information
This document constitutes a financial promotion for the purposes of the Financial Services and Markets Act 2000 (as amended)(FSMA) and the rules of the Financial Conduct Authority (the FCA) in the United Kingdom (the FCA Rules). This document iscommunicated by Nikko Asset Management Europe Ltd (Nikko AME), which is authorised and regulated in the United Kingdom
by the FCA. It is directed only at (a) investment professionals falling within article 19 of the Financial Services and Markets Act
2000 (Financial Promotions) Order 2005, (as amended) (the Order) (b) certain high net worth entities within the meaning of article
49 of the Order and (c) persons to whom this document may otherwise lawfully be communicated (all such persons beingreferred to as relevant persons) and is only available to such persons and any investment activity to which it relates will only beengaged in with such persons. Any person in receipt of this document who is not a relevant person should not retain, rely or act
upon this document, and should promptly return this document to Nikko AME at the address indicated below. This document isfor distribution only under such circumstances as may be permitted by applicable law. This document does not constituteinvestment advice or a personal recommendation and it does not consider in any way the suitability or appropriateness of thesubject matter for the individual circumstances of any recipient. In providing a person with this document, Nikko AME is nottreating that person as a client for the purposes of the FCA Rules other than those relating to financial promotion and that person
will not therefore benefit from any protections that would be available to such clients. This document is for information purposes
only and is not intended to be an offer, or a solicitation of an offer, to buy or sell any investments. The information and opinions inthis document have been derived from or reached from sources believed in good faith to be reliable but have not been
independently verified. Nikko AME makes no guarantee, representation or warranty, express or implied, and accepts no
responsibility or liability for the accuracy or completeness, of this document. No reliance should be placed on any assumptions,forecasts, projections, estimates or prospects contained within this document. This document should not be regarded byrecipients as a substitute for the exercise of their own judgement. Opinions stated in this document may change without notice.
Nikko AME and its associates and/or its or their officers, directors or employees may have or have had positions or materialinterests, may at any time make purchases and/or sales as principal or agent, may provide or have provided corporate financeservices to issuers or may provide or have provided significant advice or investment services in any investments referred to in thisdocument or in related investments. Relevant confidential information, if any, known within any company in the Nikko AM groupor Sumitomo Mitsui Trust Bank group and not available to Nikko AME because of regulations or internal procedure is notreflected in this document. The investments mentioned in this document may not be eligible for sale in some states or countries,
and they may not be suitable for all types of investors. Past performance is no guide to future returns and the value ofinvestments can fall as well as rise. Nikko AME accepts no liability whatsoever for any loss or damage of any kind arising out of theuse of all or any part of this document, provided that nothing herein excludes or restricts any liability of Nikko AME under FSMA
or the FCA Rules.
Nikko Asset Management Asia Limited which is incorporated in Singapore is the non-EU alternative investment fund manager(AIFM) of the NikkoAM-ICBCSG China Bond ETF for purposes of the EU Alternative Investment Fund Managers Directive(AIFMD). Disclosures to investors required under Article 23 of the AIFMD are available from Nikko AME in London, UK which acts
as Nikko Asset Management Co, Ltd.’s agent in the UK in relation to the marketing of this fund.

YOUR GOALS, OUR COMMITMENT.

4NIKKOAM-ICBCSG CHINA BOND ETF

Important Information
Notice to investors in the UK
The Fund promoted herein is a Unit Trust ETF domiciled in Singapore where it is managed by Nikko Asset Management Asia
Limited. The Fund is not a recognised collective investment scheme for the purposes of the Financial Services and Markets Act
2000 of the United Kingdom (the “Act”). The promotion of the Fund and the distribution of this material in the United Kingdom is
accordingly restricted by law. This material is being issued inside the United Kingdom by Nikko AME only to and/or is directed
only at persons who are professional clients or eligible counterparties for the purposes of the FCA’s Conduct of Business
Sourcebook. This material is exempt from the scheme promotion restriction (in Section 238 of the Act) on the communication ofinvitations or inducements to participate in unrecognised collective investment schemes on the grounds that it is being issued toand/or directed at only the types of person referred to above. To the extent that this material is issued by Nikko AME the Shares
are only available to such persons and this material must not be relied or acted upon by any other persons. This document may
not be distributed without authorisation from Nikko AME.
Key Risks•
Units may trade at prices other than NAV
o The secondary market price of Units may sometimes trade above or below the NAV per Unit. This deviation is dependent onvarious factors but will be accentuated when there is a large imbalance between market supply and demand for Units on the
SGX-ST. There is a risk that you may not be able to buy or sell at a price close to the NAV per Unit.
•
You are exposed to market risko The price of securities comprised in the portfolio of the Fund and the Units, and the income from them, may be influenced
by political and economic conditions, changes in interest rates, the sovereign rating of the PRC, the earnings of the Chinese
policy banks whose bonds are comprised in the portfolio and the market’s perception of the securities.
•
You are exposed to liquidity risko
The extent of market liquidity is dependent on the size and state of the markets and therefore affects the Fund’sability to acquire or dispose of securities at the price and time it so desires. The Chinese treasury banks andChinese policy bank bonds trade over-the-counter (OTC) on the China Interbank Bond Market (CIBM). Dependingon the quotes available on the CIBM, the bonds may be thinly traded and illiquid and may result in redemption
prices which adversely affect the NAV of the Fund.
•You should be aware there is a minimum creation and redemption sizeoUnits will only be issued or redeemed in-kind at the Manager’s discretion in Creation Unit or Redemption Unit
aggregations (currently 20,000,000 Units, and multiples thereof) or in cash at a minimum of 50,000 Units (or suchother higher number of Units in multiples of 1,000) by or through Participating Dealers.
o
If you do not hold the minimum redemption number of Units (i.e. 50,000 Units), you will only be able to realise thevalue of your Units by selling your Units on the SGX-ST at the prevailing trading price of the Units.
oHowever, do note that the Participating Dealers are under no obligation to redeem your Units.
•
Trading in Units on SGX-ST may be suspended or even delistedo
You will not be able to purchase or sell Units on the SGX-ST during any period that the SGX-ST suspends trading in
the Units. Subject to the provisions of the CIS Code, the creation and redemption of Units will also be suspended if
the trading of Units on the SGX-ST is suspended.
o
The Fund may not be able to continue to meet the requirements necessary to maintain the listing of Units on the
SGX-ST. The Fund may be terminated if Units are delisted from the SGX-ST.
•
You are exposed to interest rate risk and credit riskoInvestments in bonds and other debt securities are subject to interest rate fluctuations and credit risks, such as riskof default by the issuer, adverse changes in general economic conditions and the financial condition of the issue,
which may impair the issuer’s ability to make payments of interest and principal, resulting in a possible default by
the issuer.
•
You are exposed to tracking error riskoChanges in the NAV of the Fund are unlikely to replicate exactly changes in the Index due to various factors,
especially since the Fund adopts a representative sampling strategy and does not hold all the securities in the
Index. The Fund’s returns may therefore deviate from those of the Index.
•
Risk associated with the investment strategy of the Fund/Lack of discretion by Manager to adapt to market
changesoUnlike “actively managed" unit trusts and mutual funds, in its management of the Fund, the Manager does not
attempt to outperform the Index nor does it seek temporary defensive positions when markets decline or appear
overvalued by some standards. Accordingly, a fall in the Index may result in a corresponding fall in the NAV of the
Fund.

YOUR GOALS, OUR COMMITMENT.

5NIKKOAM-ICBCSG CHINA BOND ETF

Important Information•

You are exposed to currency risk
In the event that any investments of the Fund are denominated in a currency other than the currency in which the relevant
Class of the Fund is denominated, fluctuations in the exchange rates of the currency of the investment against the currencyof denomination of the relevant Class may affect the net asset value of the relevant Class. The Manager reserves the discretion
to hedge, whether fully, partially or not at all, the currency exposure of the assets of the Fund that are attributable to any of
the Classes to the relevant currency in which it is denominated. In the event that any such currency exposure is hedged, an
active hedging strategy is usually adopted.
•
You are exposed to risks associated with investment in mainland Chinao RMB Currency Risks: RMB is not a freely convertible currency as it is subject to foreign exchange control policies of the PRC
government. Any devaluation of the RMB could adversely affect the value of investors’ investments in the Fund. Investors
whose base currency is not the RMB may be adversely affected by changes in the exchange rates of the RMB.
You should be aware that your investment in the Fund may be exposed to other risks of an exceptional nature from time
to time.

YOUR GOALS, OUR COMMITMENT.

6