Product Key Facts
CLSA Global Public Fund Series Open-ended Fund Company
CLSA Short Duration China Bond Fund
Issuer: CITIC Securities Asset Management (HK) Limited•••

July 2024

This statement provides you with key information about this product.
This statement is a part of the offering document and must be read in conjunction with theProspectus of CLSA Global Public Fund Series Open-ended Fund Company.
You should not invest in this product based on this statement alone.

Quick facts
Manager

CITIC Securities Asset Management (HK) Limited (formerly known as “CLSA AssetManagement Limited”)

CustodianBank of Communications Trustee Limited

Ongoing charges over a year^

Class A USD (Accumulation)
Class A USD (Distribution)
Class A HKD (Accumulation)

1.68%#
1.68%^
1.68%^Class I USD (Accumulation)
Class I USD (Distribution)
Class I HKD (Accumulation)

1.37%^
1.37%#
1.37%^Class A HKD (Distribution)
1.68%^Class I HKD (Distribution)
1.37%^Class A RMB (Accumulation) 1.68%^
Class I RMB (Accumulation) 1.37%^
Class A RMB (Distribution)
1.68%^Class I RMB (Distribution)
1.37%^#The ongoing charges figure is based on the annualised expenses for the period ended
31 December 2023 based on the latest annual report and expressed as a percentageof the share class’s average net asset value over the same period. This figure mayvary from year to year.

Dealing frequency
Base currency
Dividend policy^ As this share class is newly launched/has not been incepted or funded, theongoing charges figure represents the estimated ongoing charges of the shareclass over a 12-month period chargeable to the share class , based on active shareclasses with similar fee structure, expressed as a percentage of the estimatedaverage net asset value of the share class over the same period. The actual
figures may be different from this estimated figure and may vary from year to year.
Daily
USD
Class A USD (Accumulation), Class A HKD (Accumulation), Class A RMB(Accumulation), Class I USD (Accumulation), Class I HKD (Accumulation), Class I
RMB (Accumulation):
No dividend distribution (income, if any, will be reinvested)Class A USD (Distribution), Class A HKD (Distribution), Class A RMB(Distribution), Class I USD (Distribution), Class I HKD (Distribution), Class I RMB(Distribution):
Distribution, if any, may be made monthly1. The Directors have discretion as towhether or not the Sub-Fund will make any distribution of dividends and amount ofdividends. There is no guarantee of regular distribution nor, where distribution is
made, the amount being distributed. Dividends may be paid out of capital oreffectively out of capital of the relevant share class and may result in an immediate
reduction of the net asset value per share of the Sub-Fund.

Financial year end

1

31 December

Prior to 29 August 2024, distribution for the distribution classes, if any, may be made quarterly.

1

CLSA Short Duration China Bond Fund
Minimum investments

Class A USD (Accumulation)
Class A USD (Distribution)
Class A HKD (Accumulation)
Class A HKD (Distribution)
Class A RMB (Accumulation)
Class A RMB (Distribution)
Class I USD (Accumulation)
Class I USD (Distribution)
Class I HKD (Accumulation)
Class I HKD (Distribution)
Class I RMB (Accumulation)
Class I RMB (Distribution)

Minimum initialsubscription

Minimum
subsequent
subscription

USD1,000
USD1,000
HKD10,000
HKD10,000
RMB10,000
RMB10,000
USD200,000
USD200,000
HKD1,000,000
HKD1,000,000
RMB1,000,000
RMB1,000,000

USD1,000
USD1,000
HKD10,000
HKD10,000
RMB10,000
RMB10,000
USD100,000
USD100,000
HKD500,000
HKD500,000
RMB500,000
RMB500,000

What is this product?
CLSA Short Duration China Bond Fund (the “Sub-Fund”) is a sub-fund of CLSA Global Public Fund Series Open-ended
Fund Company, which is a public open-ended fund company established under Hong Kong with variable capital with limited
liability and segregated liability between sub-funds. “CLSA” is the trading name used by various indirect subsidiaries of
CITIC Securities Company Limited outside of mainland China.

Investment Objective and Policy
Investment objective
The Sub-Fund seeks to maximise total return by investing primarily in short duration debt securities issued by entities
exercising a predominant part of their economic activities in Mainland China with an average duration of less than three
years, aiming to generate a steady flow of income in addition to capital appreciation for the Sub-Fund.
Investment policy
The Sub-Fund will invest at least 70% of its net asset value in fixed or floating rate debt securities denominated in USD,
EUR, HKD, onshore RMB (“CNY”) or offshore RMB (“CNH”) (“Dim Sum” bonds, i.e. bonds issued outside of Mainland China
but denominated in CNH), issued by entities exercising a predominant part of their economic activities in Mainland China.
The debt securities invested by the Sub-Fund may be issued by government, quasi-governmental bodies, banks, financial
institutions or other corporate entities. The average duration of the Sub-Fund’s investment in debt securities as a whole willbe less than three years.
The Sub-Fund may invest up to 50% of its net asset value in offshore debt securities issued outside Mainland China which
are rated below investment grade by an internationally recognised credit rating agency (i.e. below BBB- by Standard &Poor’s, below BBB- by Fitch or below Baa3 by Moody’s) or unrated (i.e. debt securities themselves nor their issuers havea credit rating). For onshore debt securities issued within Mainland China, the Sub-Fund may not invest in such securities
which are rated below AAA by a Mainland China credit rating agency, including but not limited to, Golden Credit Ratings,
CCXI, United Rating, Dagong Global Credit Rating, Shanghai Brilliance Credit Rating & Investors Service or unrated.
While the credit rating criteria above will be observed at all times, the selection of debt securities for investment is not
exclusively based on credit ratings, the Manager will also conduct its own assessment on the credit quality based on
quantitative and qualitative fundamentals, including without limitation, the issuer’s leverage, operating margin, return on
capital, interest coverage, operating cash flows, industry standing, business and financial prospect and corporate
governance issue.
The RMB denominated and settled debt securities issued in Mainland China invested by the Sub-Fund may be traded on
the interbank bond market in Mainland China. The Sub-Fund may invest directly in such securities through all available
means, including but not limited to, the Qualified Foreign Investor regime (“QFI Regime”), Bond Connect (i.e. the initiative
for mutual bond market access between Mainland China and Hong Kong), the China Interbank Bond Market (“CIBM”) under
the Foreign Access Regime announced by the People’s Bank of China in February 2016, or such other means as permitted
by the relevant regulatory authorities from time to time. For the avoidance of doubt, the Sub-Fund will invest less than 30%
of its net asset value in onshore debt securities issued within Mainland China.

2

CLSA Short Duration China Bond FundThe Sub-Fund may invest less than 30% of its net asset value in convertible bonds.
The Sub-Fund may invest less than 30% of its net asset value in offshore urban investment bonds (城投債), which are debt
instruments issued outside Mainland China by local government financing vehicles (“LGFVs”). These LGFVs are separate
legal entities established by local governments and / or their affiliates to raise financing for public welfare investment or
infrastructure projects.
The Sub-Fund may invest less than 30% of its net asset value in debt instruments with loss-absorption features which may
include instruments classified as Additional Tier 1 / Tier 2 capital instruments that meet the qualifying criteria under the
Banking (Capital) Rules or an equivalent regime of non-Hong Kong jurisdictions, Contingent Convertible Securities (CoCos),
non-preferred senior bonds which may also be known as Tier 3 bonds and other instruments eligible to count as lossabsorbing capacity under the resolution regime for financial institution. These instruments may be subject to contingent
write-down or contingent conversion to ordinary shares on the occurrence of trigger event(s) (e.g. when the issuer is nearor at the point of non-viability or when the issuer’s capital ratio falls to a specified level).
The Sub-Fund will not invest more than 10% of its net asset value in securities issued by or guaranteed by any single
country or region that is below investment grade (including its government and a public or local authority of that country or
region).
The Sub-Fund may use derivatives such as interest rate and currency futures for hedging and/or investment purposes.
Under exceptional circumstances (e.g. market crash or major crisis), the Sub-Fund may invest temporarily up to 70% of net
asset value in liquid assets such as bank deposits, certificates of deposit, commercial paper and treasury bills for cash flow
management.
The maximum and expected aggregate exposure level of the Sub-Fund’s engagement in sale and repurchase and/or
reverse repurchase transactions traded over-the-counter will be up to 50% of its net asset value in aggregate. The SubFund may not engage in securities lending.

Use of derivatives / investment in derivatives
The Sub-Fund’s net derivative exposure may be up to 50% of the Sub-Fund’s net asset value.

What are the key risks?
Investment involves risks. Please refer to the Prospectus for details including the risk factors.
1.

General Investment risk
•

2.

3.

The Sub-Fund’s investment portfolio may fall in value due to any of the key risk factors below and therefore yourinvestment in the Sub-Fund may suffer losses. There is no guarantee of repayment of principal.

Risk associated with debt securities rated below investment grade or unrated•

The Sub-Fund may invest up to 50% of its net asset value in debt securities (or its issuer) rated below investment
grade (by Standard & Poor’s, Moody’s, Fitch or other internationally recognised credit rating agency) or unrated.
Such securities are generally subject to lower liquidity, higher volatility and greater risk of loss of principal andinterest than high-rated debt securities.

•

Investments in such securities may also be subject to greater credit risk. If the issuer of a security is in default withrespect to interest or principal payments, the Sub-Fund may lose its entire investment.

•

Adverse events or market conditions may have a larger negative impact on the prices of non-investment grade orunrated debt securities than on higher-rated debt securities. For example, during economic downturns, such debt
securities typically fall more in value than investment grade debt securities as investors become more risk averseand default risk rises. Such debt securities in emerging markets may also be subject to higher volatility and lower
liquidity compared to debt securities in more developed markets.

Risks associated with debt securities
Interest rate risk

3

CLSA Short Duration China Bond Fund•

Investment in the Sub-Fund is subject to interest rate risk. In general, the prices of debt securities rise when interest
rates falls, whilst their prices fall when interest rates rise.

Credit / Counterparty risk•

The Sub-Fund is exposed to the credit/default risk of issuers of the debt securities that the Sub-Fund may investin.

Downgrading risk•

The credit rating of a debt instruments or its issuer may subsequently be downgraded. In the event of suchdowngrading, the value of the Sub-Fund may be adversely affected. The Manager may or may not be able todispose of the debt securities that are being degraded.

Credit rating risk•

Credit ratings assigned by rating agencies are subject to limitations and do not guarantee the creditworthiness ofthe security and/or issuer at all times.

Credit rating agency risk•

The credit appraisal system in Mainland China and the rating methodologies employed in the Mainland China may
be different from those employed in other markets. Credit ratings given by Mainland China rating agencies may
therefore not be directly comparable with those given by other international rating agencies.

Sovereign debt risk•

The Sub-Fund’s investments in securities issued or guaranteed by government may be exposed to political, socialand economic risks. In adverse situations, the sovereign issuers may not be able or willing to repay the principal
and/or interest when due or may request the Sub-Fund to participate in restructuring such debts. The Sub-Fund
may suffer significant losses when there is a default of sovereign debt issuers.

“Dim Sum” bond (i.e. bonds issued outside of Mainland China but denominated in offshore RMB (CNH)) market risks•

The “Dim Sum” bond markets is still a relatively small market which is more susceptible to volatility and illiquidity.
The operation of the “Dim Sum” bond market as well as new issuances could be disrupted causing a fall in the net
asset value of the Sub-Fund should there be any promulgation of new rules which limit or restrict the ability ofissuers to raise RMB by way of bond issuances and/or reversal or suspension of the liberalisation of the offshore
RMB (CNH) market by the relevant regulator(s).

Valuation risk•
4.

Concentration risk•

5.

Investing in emerging markets, such as Mainland China markets, involves increased risks and special
considerations not typically associated with investment in more developed markets, such as liquidity risks, currency
risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and thelikelihood of a high degree of volatility.

Risks associated with CIBM and Bond Connect•

7.

The Sub-Fund’s investment are concentrated in debt securities issued by entities exercising a predominant part oftheir economic activities in Mainland China. The value of the Sub-Fund may be more susceptible to adverse
economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the Mainland China
markets. Also, the value of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio
of investments.

Risk of investing in Mainland China markets•

6.

Valuation of the Sub-Fund’s investments may involve uncertainties and judgmental determinations. If suchvaluation turns out to be incorrect, this may affect the net asset value calculation of the Sub-Fund.

Investing in the CIBM under the Foreign Access Regime and/or Bond Connect is subject to regulatory risks andvarious risks such as volatility risk, liquidity risk, settlement and counterparty risk as well as other risk factors
typically applicable to debt securities. The relevant rules and regulations are subject to change which may bepotential retrospective effect.

Currency risk•

The underlying investments of the Sub-Fund may be denominated in currencies other than the base currency of
the Sub-Fund. Also, a class of shares of the Sub-Fund may be designated in a currency other than the base

4

CLSA Short Duration China Bond Fundcurrency of the Sub-Fund. The net asset value of the Sub-Fund may be affected unfavourably by fluctuations in theexchange rates between these currencies and the base currency and by changes in exchange rate controls.
8.

9.

RMB currency and conversion risk•

The Sub-Fund may invest significantly in RMB-denominated investments. Non-RMB based investors are exposed
to foreign exchange risk and there is no guarantee that the value of RMB against the investors’ base currencies(e.g. USD or HKD) will not depreciate. Any depreciation of RMB could adversely affect the value of investor’s
investment in the Sub-Fund.

•The Sub-Fund’s investment in RMB-denominated investments and the share classes denominated in RMB may bevalued with reference to the offshore RMB (CNH) rather than onshore RMB (CNY). Although CNH and CNY are
the same currency, they are traded in different and separate markets which operate independently. As such, CNH
does not necessarily have the same exchange rate and may not move in the same direction as CNY. Any
divergence between CNH and CNY may adversely impact investors.

•

RMB is currently not freely convertible and is subject to exchange controls and restrictions. Under exceptional
circumstances, payment of redemptions and/or dividend payment in RMB may be delayed due to the exchange
controls and restrictions applicable to RMB.

Risks relating to sale and repurchase transactions•

The Sub-Fund may engage in sale and repurchase transactions where the Sub-Fund sells its securities (i.e. in
effect, the collateral placed out by the Sub-Fund for the transactions) to a counterparty and agrees to buy suchsecurities back at an agreed price with a financing cost in the future. In the event of the failure of the counterparty
with which collateral has been placed, the Sub-Fund may suffer loss as there may be delays in recovering collateralplaced out or the cash originally received may be less than the collateral placed with the counterparty due toinaccurate pricing of the collateral or market movements.

10. Risks relating to reverse repurchase transactions•

The Sub-Fund may engage in reverse repurchase transactions where the Sub-Fund purchases securities (i.e. in
effect, the collateral received by the Sub-Fund for the transactions) from a counterparty and agrees to sell suchsecurities back at an agreed price in the future. In the event of the failure of the counterparty with which cash has
been placed, the Sub-Fund may suffer loss as there may be delay in recovering cash placed out or difficulty inrealising collateral or proceeds from the sale of the collateral may be less than the cash placed with the counterparty
due to inaccurate pricing of the collateral or market movements.

11. Risks associated with distribution of dividends out of and/or effectively out of capital•

Payment of dividends out of capital and/or effectively out of capital amounts to a return or withdrawal of part of aninvestor’s original investment or from any capital gains attributable to that original investments. Any such
distributions may result in an immediate reduction of the net asset value per share.

How has the Sub-Fund performed?
Since the Sub-Fund is newly set up, there is insufficient data to provide a useful indication of past performance to investors.

Is there any guarantee?
The Sub-Fund does not have any guarantees. You may not get back the full amount of money you invest.

What are the fees and charges?
Charges which may be payable by you
You may have to pay the following fees when you deal in the shares of the Sub-Fund.
Fee

What you pay

Subscription fee

Class A

(Preliminary Charge as
defined in the Prospectus)

Maximum and current: Up to 5% of the Subscription amountClass I
Maximum and current: Up to 5% of the Subscription amount5

CLSA Short Duration China Bond Fund
Switching fee

Classes A and I(Conversion Charge as
defined in the Prospectus)

Maximum and current: Up to 1% of the redemption price for each share switched out

Redemption fee

Class A

(Redemption Charge as
defined in the Prospectus)

Maximum: Up to 5% of the Redemption amount; Current: nil
Class I
Maximum: Up to 3% of the Redemption amount; Current: nil

Ongoing fees payable by the Sub-Fund
The following expenses will be paid out of the Sub-Fund. They affect you because they reduce the return you get on
your investments.

Management fee

Custodian fee

Annual Rate (as a % of the net asset value of the relevant share class, unlessotherwise indicated)
Class A
Maximum: 2.0%; Current: 1.25%
Class I
Maximum: 1.5%; Current: 1.0%
On the first USD 100 million of the net
0.06%
asset value of the Sub-Fund
On any portion of the Sub-Fund’s net
asset value in excess of USD 100 million

0.05%(subject to a minimum monthly fee of USD 3,500 (or equivalent) after six months fromthe launch of the Sub-Fund)
Performance fee

NilAdministration fee

Included in the custodian fee

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

Additional Information•

You generally subscribe and redeem shares at the Sub-Fund’s next-determined net asset value per share attributable
to the relevant share class after the Administrator receives your request directly, or via a distributor, in good order by
16:00 (Hong Kong time), being the Sub-Fund’s dealing cut-off time on dealing day of the Sub-Fund. Before placing yourdealing orders, please check with your distributor for the distributor’s internal dealing cut-off time (which may be earlier
than the Sub-Fund’s dealing cut-off time).

•

The net asset value of the Sub-Fund is calculated and the price of each shares class is available on each BusinessDay (as defined in the Prospectus) online at https://www.clsa.com/services/assets-management/.

•

The compositions of the dividends (i.e. the relative amounts paid out of (i) net distributable income; and (ii) capital) forthe last 12 months are available by the Manager on request and on the website https://www.clsa.com/services/assetsmanagement/.

•

Please note that the website as cited in this document 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 orcompleteness.

6