Source - RNS
RNS Number : 6111I
Commerzbank CCBI Inv. Funds ICVC
31 August 2016
 

 

 

 

 

Commerzbank CCBI Investment Funds ICVC

(an open-ended investment company incorporated in England and Wales with limited liability andsegregated liability between its sub-funds)

 

Interim Report & Unaudited Financial Statements for the period from

01 January 2016 to 30 June 2016

 


 

Contents

 

Management and Professional Service details

2



Constitution*

3



Regulatory Disclosure*

3



ACD's Report for the period ended 30 June 2016*

5



Directors' Statement*

6



Investment Manager's Report*

7



Risk and Reward Profile*

8



Statement of Corporate Governance

9

 

Changes resulting from the United Kingdom's vote to leave the EU

 

12

 

Portfolio Information

13



Comparative Table

14



Portfolio Statement

17



Statement of Total Return

18



Statement of Change in Net Assets Attributable to Shareholders

19

 


Balance Sheet

20



Statement of Cashflows

21



Notes to the Financial Statements

22

 

* Collectively, these comprise the Authorised Corporate Director's Report.

 

 

 

 


 

Management and Professional Service details

 

The Company

People's Republic of China Legal Advisers to the

Commerzbank CCBI Investment Funds ICVC

Company and the ACD


Links Law Offices

Head Office

Shanghai

Commerzbank AG London Branch

19F, ONE LUJIAZUI

30 Gresham Street

68 Yin Cheng Road Middle

EC2V 7PG

Shanghai 200120

United Kingdom

People's Republic China



Authorised Corporate Director (''ACD'')

Listing Sponsor

Commerz Funds Solutions S.A.

PricewaterhouseCoopers LLP

25, rue Edward Steichen

1 Embankment Place

L-2540 Luxembourg

London


WC2N 6RH

Directors of ACD

United Kingdom

Thomas Timmermann (Chairman)


Hermann Berger

Registrar and Transfer Agent

Peter Corner

HSBC Bank Plc

Thomas Meyer zu Drewer

acting through its affiliate

Andreas Neumann

HSBC Securities Services (Ireland) Limited

Mathias Turra

1 Grand Canal Square

Roberto Vila

Grand Canal Harbour


Dublin 2

Manager and Company Secretary

Ireland

Commerzbank AG London Branch


30 Gresham Street

Investment Manager

London

CCB International Asset Management

EC2V 7PG

Limited

United Kingdom

12/F., CCB Tower


3 Connaught Road Central

English Legal Advisers to the Company

Central, Hong Kong

and the ACD


Linklaters LLP

Depositary

1 Silk Street

HSBC Bank Plc

London

8 Canada Square

EC2Y 8HQ

London

United Kingdom

E14 5HQ


United Kingdom

Additional English Legal Adviser to the


ACD

Administrator

Simmons & Simmons

HSBC Bank Plc

CityPoint

acting through its affiliate

One Ropemaker Street

HSBC Securities Services (Ireland) Limited

London

1 Grand Canal Square

EC2Y 9SS

Grand Canal Harbour

United Kingdom

Dublin 2


Ireland

Auditors


PricewaterhouseCoopers LLP


7 More London Riverside


London


SE1 2RT


United Kingdom




 


 

Constitution

 

Commerzbank CCBI Investment Funds ICVC (the ''Company'') is an open-ended investment company ("OEIC") with variable capital incorporated in England and Wales under The Open-Ended Investment Companies Regulations 2001 (the "OEIC Regulations") with registered number IC001028 and authorised by the Financial Conduct Authority ("FCA") with effect from 19 December 2014. The Company is an Undertaking for Collective Investments in Transferable Securities for the purposes of the Collective Investment Schemes sourcebook ("COLL") which forms part of the FCA Handbook of Rules and Guidance (the "FCA Rules").

 

The Company is an umbrella company, in that different funds may be established from time to time by Commerz Funds Solutions S.A., in its capacity as the authorised corporate director of the Company (the "ACD") with the prior approval of the FCA. As at the date of this report, the Company comprises one fund, Commerzbank CCBI RQFII Money Market UCITS ETF (the ''Fund'') which was launched on 23 March 2015. The overall investment objective of the Company and the Fund is to aim to maintain the value of the Fund and to generate sustainable and stable returns by investing in approved money market instruments denominated and settled in Renminbi ("RMB").

 

Regulatory Disclosure

 

This document has been prepared by the ACD. The latter is a société anonyme under Luxembourg law that has been authorised by the FCA for the purposes of the FCA Rules to provide services in the United Kingdom on a cross-border basis.

 

The Shares in the Fund have been admitted to the premium segment of the Official List of the FCA pursuant to Chapter 16 of the UK Listing Rules and to trading on the main market of the London Stock Exchange plc for listed securities. The Shares of Share Class A and Share Class C in the Fund have also been listed on Euronext Paris and the Frankfurt Stock Exchange.

 

Income Allocations and Reports

 

The annual income allocation date in respect of each interim accounting year ending on 31 December was paid by 31 January. The annual report and audited financial statements are forwarded to shareholders each year on 30 April and an interim report is issued each year on 31 August.

 

Inspection of Documents

 

Copies of the Instrument of Incorporation (including details of all amendments thereto), the Prospectus, the Key Investor Information Document(s) ("KIID(s)"), the most recent annual or interim reports of the Company may be inspected, and may be obtained free of charge from the registered office of the Administrator's affiliate HSBC Securities Services (Ireland) Limited during normal business hours on all business days.

 

Shares in the Company are issued in registered form of which the ownership is registered in the Company's register. This register reflects the holding of the nominee of the entity appointed as common depositary as legal owner of the Shares. It is kept at HSBC Securities Services (Ireland) Limited, 1 Grand Canal Sqaure, Grand Canal Sqaure, Dublin 2, Ireland and may be inspected at that address on any business day during ordinary office hours.

 

Soft Commission Arrangements

 

No soft commission arrangements have been made in respect of the Company and it is currently not intended that any will be made. In the event that CCB International Asset Management in its capacity as investment manager to the Company (the "Investment Manager") or any of its subsidiaries, affiliates, associates, agents or delegates do enter into soft commission arrangement(s), they shall ensure that (i) the broker or counterparty to the arrangement will agree to provide best execution to the Company; (ii) the benefits under the arrangement(s) shall be those which assist in the provision of investment services to the relevant Fund and (iii) brokerage rates will not be in excess of customary institutional full service brokerage rates.

 

 

Market Timing

 

Market timing practices may interfere with the investment management of the Fund and may adversely affect the performance of the relevant Fund. Shareholders will not be permitted to employ any arbitrage method that exploits time differences and/or inefficiencies or deficits in the method regarding the determination of the Net Asset Value of the relevant Fund. The ACD (acting in consultation with Commerzbank AG London Branch in its capacity as the manager to the Company (the "Manager") and the Investment Manager) reserves the right to refuse subscription or redemption orders and exchange orders by any person who is suspected of market timing activities.

 

Publication of Prices

 

The Net Asset Value per Share of each Class in each Fund will be calculated on each business day and  will be available from the Administrator's affiliate HSBC Scurities Services (Ireland) Limited, and will be published daily on https://funds.commerzbank.com.

 

The current Net Asset Value will be notified to the London Stock Exchange, the Euronext Paris market and the Frankfurt Stock Exchange immediately upon calculation and is published on each business day on www.londonstockexchange.com, on https://www.euronext.com/fr and on http://en.boerse-frankfurt.de/.

 

The initial Fund

 

The Company is an umbrella company which, at the date of this report, comprises one fund:

 

Commerzbank CCBI RQFII Money Market UCITS ETF

 

Investment Objective of the Fund

 

The investment objective of the Fund is to aim to maintain the value of the Fund and to generate sustainable and stable returns by investing in approved money market instruments denominated and settled in RMB.

 

The Fund intends to invest no less than 80% of its Net Asset Value in approved money-market instruments (including transferable debt securities) and deposits with credit institutions denominated and settled in RMB. These instruments are mainly issued and distributed in the People's Republic of China (the "PRC") and are traded on the interbank bond market and/or listed bond markets in the PRC. The RMB denominated and settled approved money market instruments and/or transferable debt securities include, but are not limited to PRC government bonds, central bank bills, policy bank bonds, negotiable certificates of deposits, commercial papers, corporate bonds, asset back securities and other notes, each with a residual maturity until the legal redemption date of less than or equal to two years, provided that the time remaining until the next interest rate reset date is less than or equal to 397 days. Floating rate securities should reset to a money market rate or index. The deposits with credit institutions mature in no more than 12 months.

 

The Fund intends to hold up to 20% of its Net Asset Value in cash or bank deposits in the PRC and Hong Kong.

 

The Fund is a money market fund for the purposes of the FCA Rules and the Fund's investment objectives and policies will meet the conditions specified in the definition of money market fund under COLL 5.9.5 R.

 

The Fund may invest up to 100% of its property in government securities issued by, or on behalf of, or

guaranteed by, the government of the PRC.

 

 


 

ACD's Report for the period ended 30 June 2016

 

The ACD presents its report and the unaudited financial statements of the Company for the period from 01 January 2016 to 30 June 2016. The Interim Report and Unaudited Financial Statements taken as a whole are fair, balanced and understandable and provides the information necessary for shareolders to assess the Company's position and performance, business model and strategy.

 

Matters relating to the Company during the period

 

There are no matters to report during the period.

 

Responsibility Statement

 

The directors of the ACD confirm that to the best of their knowledge:

 

(a)   this interim report, which has been prepared in accordance with the applicable set of accounting standards, gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company;

 

(b)  the interim management report includes a fair review of the important events that have occurred during the six months period, as well as the principal risks and uncertainties for the next six months period; and.

 

(c)  the interim management report includes a fair review of the related party transactions that have occurred during the six months period and that have materially affected the financial position or the performance of the Company during that period.

 

 

Commerz Funds Solutions S.A.

Luxembourg

29 August 2016

 


 

Directors' Statement

 

The financial statements on pages 13 to 20 of this interim report were approved in accordance with the requirements of the COLL and the Disclosure and Transparency Rules sourcebook which forms part of the FCA Rules by the ACD and signed on its behalf by:

 

                                                                                          

                                                                                            

 

Commerz Funds Solutions S.A

Luxembourg

29 August 2016

 

 

 

Investment Manager's Report for the period from 01 January 2016 to 30 June 2016

 

During the first half of 2016, the PRC's central bank. the People's Bank of China ("PBOC"),  continued to implement a prudent monetary policy by injecting enough funds into the market through reverse repos, MLFs (Median-term Lending Facilities) and other conventional open market operations to maintain the 7-day repo rate between a narrow range of 2.0% to 2.5% throughout the majority of the period.

 

The end of each quarter is always a critical moment for short-term rates. At the end of the first quarter of 2016, the PBOC asked for a macro prudential assessment ("MPA"), from all the commercial banks regulated by the PBOC, for the first time. Due to the uncertaintly around the outcome of the MPA, banks were reluctant to lend money and decided to reserve more capital at the end of the first quarter. This directly impacted and pushed up the 7-day repo rate to 5%. By the end of the second quarter, after receiving more clarity around the MPA, banks turned less conservative and the impact on short term rates eased.

 

The credit risk has also increasingly influenced security prices. During the past half year, the news of more and more bond issuers declaring default (with some of these issuers being subsidiaries of large state owned enterprises or SOEs) has had a strong negative impact on investor confidence for lower rated bonds resulting in a wider credit spread. In addition, these lower rated bonds have also suffered from poor liquidity. The market sentiment as well as the market liquidity gradually recovered in May. In June, the unexpected news of Brexit induced investors to withdraw their money from risk assets and move into bonds and money market vehicles, pushing the bond prices even higher.

 

During the reporting period, the Fund, after a carefuly considered credit risk analysis of the market and specific  issuers, maintained a conservative strategy to keep the duration of the portfolio at around 90 days.


Looking forward to the remainder of 2016, we expect overall economic growth rate in  China to be challenging due to a further slow down in real estate construction and as prospects for exports and corporate investment remaining weak. Consequently, achieving the government's overly ambitious GDP growth targets will rely on continued stimulus. With the limits of a credit-based stimulus becoming more obvious, the government may have to resort to a greater reliance on fiscal policy. From the RMB exchange rate perspective, released statistics indicated China's capital flight pressure has eased in the first half of this year; monthly net purchases of foreign exchange declined from $54.4 billion in January to $12.5 billion in May and was at $12.8 billion in June. During the next six months, the central bank will continue to be cautious in cutting RRR (reserved requirement rate) and interest rates, and will instead try to keep the market reasonably liquid through various short, medium and long term open market operations. Last but not least, we expect the the credit risk of the bond market to remain elevated.

 

Based on the above analysis, the Fund will continue to be adjusted according to the size of the portfolio, to prevent possible liquidity pressures. Focus remains on key investment opportunities in asset allocation, and reasonable arrangements for cash flow to improve the portfolio's overall static yield levels. In addition, an increasing emphasis will be placed on the credit analysis and credit risk control of the whole portfolio.

 

 

 

 

 

CCB International Asset Management Limited

Investment Manager

Hong Kong

29 August 2016

 

 


 

Risk and Reward Profile

 

For the RMB share class:

 

Lower risk                                                                                                                                                                  Higher risk

<------------------------------------------------------------------------------------------------------------------> 

Typically lower reward                                                                                                                           Typically higher reward

           1         

2

3

4

5

6

7

 

 

For the GBP and EUR share classes:

 

Lower risk                                                                                                                                                                  Higher risk

<------------------------------------------------------------------------------------------------------------------> 

Typically lower reward                                                                                                                           Typically higher reward

1

2

3

          4          

5

6

7

 

 

·     The risk and reward profile is based on historical data which may not be a reliable indication of the share class' risk and reward category in the future.

·     The category is based on the rate at which the value of the share class has moved up and down in the past.

·     This share class category is not guaranteed to remain the same and may change over time.

·     Even a fund in the lowest category is not a risk-free investment.


 

Statement of Corporate Governance

 

The ACD of the Company is committed to maintaining the highest standards of corporate governance and is accountable to shareholders of the Company for the governance of the Company's affairs. The Company is subject to the continuing obligations under Chapter 9 of the UK Listing Rules sourcebook which forms part of the FCA Rules (available at: https://www.handbook.fca.org.uk/handbook/LR/)  (the "UKLA Listing Rules") as they apply to overseas open-ended investment funds that have had their shares admitted to the premium segment of the Official List of the FCA under Chapter 16 of the UKLA Listing Rules, and applicable chapters of the Financial Conduct Authority ("FCA") Disclosure and Transparency Rules; available at http://www.fca.org.uk (the "DTR"). The Company is also subject to the governance standards set out in the UK Corporate Governance Code (the "Code") published by the Financial Reporting Council in September 2014 (available at http://www.frc.org.uk), which is applicable to accounting periods beginning on or after 1 October 2014.

 

The ACD has considered the principles and recommendations of the Code and has put in place a framework for corporate governance which it believes both adheres to best practice and is appropriate for the Company, given the nature of its structure as an umbrella open-ended investment company with variable capital and having segregated liability between its funds.

 

Viability Statement

In accordance with provision C.2.2 of the 2014 version of the Code, the ACD has assessed the prospects of the Company over a longer period than the twelve months required by the going concern guidelines. The ACD has conducted this review through to 29 April 2019, being three years from the date that the 2015 annual report was approved. The ACD considers 3 years is an appropriate period to assess the viability of an investment company for the purpose of giving assurance to shareholders. The ACD is satisfied that the Company has the resources to continue in business for the foreseeable future and furthermore are not aware of any material uncertainties that may cast significant doubt upon the Company's ability to continue as a going concern.

 

At least once a year, the ACD carries out a robust assessment of the principal risks facing the Company, including those that would threaten its business model, future performance, solvency and liquidity. In its assessment of the viability of the Company, the ACD has considered each of the Company's principal risks and uncertainties detailed in Note 12 of the annual financial statements and in particular the impact of a significant fall in markets on the value of the Company's investment portfolio.

 

The ACD has also considered the Company's income and expenditure projections and the fact that the Company's investments comprise readily realisable securities which can be expected to be sold to meet funding requirements if necessary.

 

This assessment involved an evaluation of the potential impact on the Company of these risks occurring. Where appropriate, the Company's financial model was subject to a sensitivity analysis involving flexing a number of key assumptions in the underlying financial forecasts in order to analyse

the effect on the Company's net cash flows and other key financial ratios.

 

Based on the Company's processes for monitoring operating costs, the Manager's compliance with the investment objective, asset allocation, the portfolio risks profile, counterparty exposure, liquidity risk and financial controls, the ACD has concluded that there is a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the 3 year period to 29 April 2019.

 

Compliance with the UK Corporate Governance Code

 

The ACD considers that for the period under review, the Company's corporate governance practices were in keeping with the main principles of the Code, in so far as the ACD believes they are relevant and appropriate to an umbrella open-ended investment company with variable capital.


 

Statement of Corporate Governance (continued)

 

Where the Company does not comply with the Code, explanations have been provided unless the Code requires otherwise. Given the structure of the Company with a sole authorised corporate director (as opposed to a board of directors), the ACD deems that the following elements of the Code are neither appropriate nor relevant to the Company:

 

· the appointment and role of the chief executive;

· the appointment of a single senior independent director;

· the establishment of a nomination committee;

· the establishment of an internal audit function;

· the establishment of a remuneration committee;

· the re-appointment of directors;

·  the executive director remuneration; and

· the establishment of an audit committee.

 

References in the Code to remuneration, division of responsibility of director roles or rotation of directors, for example, are therefore not considered relevant. Other functions, such as the establishment of an audit committee, are performed by the ACD. These internal control, risk management and oversight procedures are detailed below.

 

Although an audit committee has not been established, the ACD has taken a number of mitigating steps including the appointment of external auditors, oversight of the external audit and financial reporting process, internal audit oversight and monitoring of the Administrator.
The ACD is responsible for establishing and maintaining adequate internal control and risk management systems for the Company. Such systems are designed to manage rather than eliminate the risk of error or fraud and can only provide reasonable and not absolute assurance against material misstatement or loss.

 

The ACD has procedures in place to ensure all relevant books of account are properly maintained and are readily available, including production of the Company's annual and half-yearly financial statements. The annual financial statements of the Company are required to be approved by the ACD of the Company and the annual and half yearly financial statements of the Company are required to be filed with the London Stock Exchange. The Company has not appointed an Audit Committee because as an investment company under the OEIC Regulations, it has only one director, the ACD. The annual financial statements are required to be audited by independent auditors who report annually to the ACD on their findings.

 

The ACD evaluates and discusses significant accounting and reporting issues as the need arises. The ACD has appointed HSBC Bank Plc as its Administrator. The Administrator maintains the books and records of the Company. The Administrator is entitled to perform any of its services through any member(s) of the HSBC Group. From time to time the ACD also examines and evaluates the Administrator's financial accounting and reporting routines and monitors and evaluates the external auditors' performance, qualifications and independence.

 

The ACD has made the appropriate disclosures in this report to ensure the Company meets its continuing obligations pursuant to the UKLA Listing Rules and the DTR. It should be noted that as an investment company under the OEIC Regulations all of the Company's day-to-day management and administration are delegated to third party service providers.

 

The ACD considers that the Company has complied with the relevant provisions contained within the Code throughout this accounting period except where departure from the Code is considered appropriate given the Company's position as an investment company under the OEIC Regulations.


Statement of Corporate Governance (continued)

 

The ACD has responsibility for ensuring that the Company keeps proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company and which enable it to ensure that the financial statements comply with the OEIC Regulations and relevant accounting standards. It is the ACD's responsibility to present a balanced and understandable assessment of the Company's financial position, which extends to interim financial statements and other reports made available to shareholders and the public. The ACD is also responsible for safeguarding the assets of the Company and for taking reasonable steps in the prevention and detection of fraud and other irregularities.

 

The ACD has access to the advice and services of the Company Secretary, external counsel, the Manager and the resources of the Investment Manager should they be needed. The ACD has delegated the investment management function to the Manager who in turn has delegated the discretionary management function to the Investment Manager. Where necessary, the ACD may seek independent professional advice at the expense of the Investment Manager.

 

The ACD is responsible for the risk management and internal controls of the Company and for reviewing their effectiveness, for ensuring that financial information published or used within the business is reliable, and for regularly monitoring compliance with regulations governing the operation of the Company. The system can only provide reasonable and not absolute assurance against material misstatement or loss and relies on the operating controls established by the service providers. The ACD is also responsible for overseeing the management of the most significant risks through the regular review of risk exposures and related key controls.

 

The ACD reviews the Company's principal risks and the control processes over the risks identified. The control processes cover financial, operational, compliance and risk management, and are  embedded in the operations of the Manager, the Investment Manager and other third party service providers including the Administrator and the Depositary. There is a monitoring and reporting process to review these controls, which has been in place throughout the period under review and up to the date of this report.

 

The ACD is responsible for establishing and maintaining adequate internal control and risk management systems of the Company in relation to the financial reporting process. The Company has procedures in place to ensure all relevant accounting records are properly maintained and are readily available, including production of annual and half-yearly financial statements. These procedures include appointing the Administrator to maintain the accounting records of the Company independently of the Manager, the Investment Manager and the Depositary. The financial statements have been prepared in accordance with the historical cost convention, as modified by the revaluation of investments, and in accordance with the Statement of Recommended Practice ("SORP") for Authorised Funds issued by the IA in May 2014 and Financial Reporting Standard 104 (''FRS 104'') 'the Financial Reporting Standard applicable in the UK and Republic of Ireland'. The accounting information given in the annual report and audited financial statements is required to be audited. The Independent Auditors' report, including any qualifications, is reproduced in full in the annual report and audited financial statements of the Company.

 

Principal Risks, Uncertainties, Risk Management Objectives and Policies

Investment in the Company involves a number of risks. Details of these risks are contained in the Company's prospectus and its appendices.

 

Summary of the primary risks relating to the Company are:

Investment-related risks which will be managed by the Investment Manager, including but not limited to those risks common to investments in publicly traded securities. These include market volatility, interest rate and currency risks, counterparty risks, and risks associated with certain trading techniques which may be employed by the Company which could increase the adverse impact to which the Company may be subject.


Changes resulting from the United Kingdom's vote to leave the EU

 

On June 23, 2016, the UK voted, via referendum, to exit from the EU, triggering political, economic, tax and legal uncertainty. The timing and terms of the exit from the EU by the UK are currently unclear, and requires a formal notification by the UK to the European Council under Article 50 of the Treaty on European Union, which triggers a two year period during which the terms of an exit can be negotiated. While such uncertainty most directly affects the UK and the EU, global markets suffered immediate and significant disruption. Further, the vote by the UK to exit the EU may increase the likelihood of similar referenda in other member countries of the EU, which could result in additional departures. The uncertainty resulting from any further exits from the EU, or the possibility of such exits, would also be likely to cause market disruption in the EU and more broadly across the global economy, as well as introduce further legal and regulatory uncertainty in the EU. This will impact the Company and its funds, the ACD, the Manager, Investment Manager, investment structures and investments in a variety of ways, not all of which are readily apparent immediately following the exit vote. It is not clear whether and to what extent EU regulations generally would apply with respect to the Company, its funds and the Manager in the case of a UK exit. Notably it is likely the Company would no longer be a UCITS fund and would be regarded as an alternative investment fund for European regulatory purposes. This could result in Shareholders being subject to fewer regulatory protections than would otherwise be the case. After a UK exit, it could be more difficult for the Company and its service providers to raise capital from EU investors, access markets, make investments, attract and retain employees or enter into agreements on its own behalf or on behalf of the Company and its funds and a UK exit could adversely affect the Company's and its funds's and the Manager's ability to continue to work with non-UK counterparties and service providers, all of which could result in increased costs to the Shareholders or reduction in the funds' ability to successfully execute the Company's different investment strategies for its funds.  It is also possible, depending on the terms of the UK's exit and the future UK regulatory system, that it may be necessary to amend the current arrangements governing the management of the funds' portfolios. 

 

 

                                                                                            


 

Commerzbank CCBI RQFII Money Market UCITS ETF

 

Portfolio Information

 

Major holdings - % of total net assets

 

 

 

Top ten holdings

30 June 2016

%

China Government Bond 2.41% 19/10/2016

11.92

China Energy Conservative & Environment 3.2% 11/09/2016

7.94

Beijing Automobile 3.15% 16/08/2016

7.94

China Resources Medical Holding 2.65% 19/12/2016

7.93

China Co-op Group 3.5% 09/09/2016

3.97

Aviation Industry Corporation of China 3.28% 23/09/2016

3.97

China Communications Construction 2.99% 12/02/2017

3.97

SIIC Shanghai Holdings 3.22% 14/10/2016

3.97

Xinxing Cathay International Group 3.28% 23/01/2017

3.97

Guangdong Electric Power Development 3.29% 18/07/2016

3.97



 

 

 

Top ten holdings

31 December 2015

%

Treasury 0% 14/03/2016

16.00

Beijing Automobile 3.15% 16/08/2016

8.10

China Southern Power 3.05% 27/03/2016

8.10

Sinopharm Group 3.03% 19/04/2016

8.10

China Minmetals 3.1% 03/04/2016

8.09

China Co-op Group 3.5% 09/09/2016

4.06

China Nuclear Engineering Group 3.43% 24/06/2016

4.06

Guangzhou Communications Investment 3.58% 15/05/2016

4.05

China National Building Material 3.35% 12/06/2016

4.05

Qingdao City Construction Investment 3.28% 24/07/2016

4.05



 

Geographical breakdown - % of total net assets

 

 

 

Country

30 June 2016

%

31 December 2015

%

China

95.28

95.37




 

 

 

Asset type

30 June 2016

%

31 December 2015

%

Corporate bonds

83.37

79.37

Government bond

11.91

16.00

Other Assets

4.72

4.63

Total

100.00

100.00

 

 

 

 

 

 

 

Commerzbank CCBI RQFII Money Market UCITS ETF

 

Comparative Table

 

For the period ended 30 June 2016

 


              30 June 2016

   31 December 2015

*Class A RMB

RMB

RMB

Change in net assets per unit



     Opening net asset value per unit

100.94

100.00

     Return before operating charges**

1.20

2.51

     Operating charges

(0.33)

(0.51)

     Return after operating charges**

0.87

2.00

     Distributions on income units

-

(1.06)

     Closing net asset value per unit

101.81

100.94




**after direct transaction costs of

-

-




Performance



    Return after charges

(0.13%)

2.00%




Other information



Closing net asset value

249,425,281

244,777,088

Closing number of units

     2,450,000

2,425,000

Operating charges

0.65%

0.65%

Direct transaction costs

0.00%

0.00%




Prices



Highest unit price

101.81

101.99

Lowest unit price

100.94

100.00

 

*The class was launched 23 March 2015.

 

 

 

 

 

Commerzbank CCBI RQFII Money Market UCITS ETF

 

Comparative Table (continued)

 

For the period ended 30 June 2016  

 


               30 June 2016

     31 December 2015

*Class B GBP

GBP

GBP

Change in net assets per unit



     Opening net asset value per unit

9.50

10.00

     Return before operating charges**

1.25

(0.28)

     Operating charges

(0.30)

(0.05)

     Return after operating charges**

0.95

(0.33)

     Distributions on income units

-

(0.17)

     Closing net asset value per unit

10.45

9.50




**after direct transaction costs of

-

-




Performance



    Return after charges

10.00%

(3.34)%




Other information



Closing net asset value

5,227

4,751

Closing number of units

500

500

Operating charges

0.65%

0.65%

Direct transaction costs

0.00%

0.00%




Prices



Highest unit price

10.53

10.21

Lowest unit price

9.47

9.14

 

*The class was launched 23 March 2015.

 


 

Commerzbank CCBI RQFII Money Market UCITS ETF

 

Comparative Table (continued)

 

For the period ended 30 June 2016

 


              30 June 2016

 31 December 2015

*Class C EUR

EUR

EUR

Change in net assets per unit



     Opening net asset value per unit

9.30

10.00

     Return before operating charges**

0.04

(0.45)

     Operating charges

(0.22)

(0.06)

     Return after operating charges**

(0.18)

(0.51)

     Distributions on income units

-

(0.19)

     Closing net asset value per unit

9.12

9.30




**after direct transaction costs of

-

-




Performance



    Return after charges

(1.88%)

(5.12)%




Other information



Closing net asset value

323,931

329,987

Closing number of units

35,500

35,500

Operating charges

0.65%

0.65%

Direct transaction costs

0.00%

0.00%




Prices



Highest unit price

9.45

10.24

Lowest unit price

8.99

9.05

 

*The class was launched 23 March 2015.

 

 


 

Commerzbank CCBI RQFII Money Market UCITS ETF

 

Portfolio Statement

 

As at 30 June 2016

 


Bid-Market

Value

Percentage of total net assets

Holdings


RMB

(%)


Corporate Bonds: 83.37%

(31 December 2015: RMB 196,204,874, 79.37%)**



 10,000,000

Aviation Industry Corporation of China 3.28% 23/09/2016

10,008,340

3.97

 10,000,000

AVIC International Holding Corporation 2.99% 06/02/2017

9,999,740

3.97

 20,000,000

Beijing Automobile 3.15% 16/08/2016

20,003,220

7.94

 10,000,000

Beijing Tourism Group 2.9% 30/10/2016

9,994,230

3.97

 10,000,000

China Co-op Group 3.5% 09/09/2016

10,009,110

3.97

 10,000,000

China Communications Construction 2.99% 12/02/2017

10,005,940

3.97

 20,000,000

China Energy Conservative & Environment 3.2% 11/09/2016

20,009,380

7.95

10,000,000

China Minmetals Corporation 3.45% 18/08/2016

9,993,220

3.97

 20,000,000

China Resources Medical Holding 2.65% 19/12/2016

19,976,960

7.93

 10,000,000

Guangdong Electric Power Development 3.29% 18/07/2016

10,002,300

3.97

 10,000,000

Heilongjiang Beidahuang Nongken 3.3% 17/10/2016

9,996,480

3.97

 10,000,000

Huaneng Power International 2.62% 17/01/2017

9,985,050

3.97

 10,000,000

Jiangsu Communications Holding 2.93% 24/07/2016

9,998,690

3.97

 10,000,000

Qingdao City Construction Investment 3.28% 24/07/2016

3.97

 10,000,000

Shanghai Nanhui Development Group 2.74% 05/12/2016

9,985,000

3.97

 10,000,000

SIIC Shanghai Holdings 3.22% 14/10/2016

10,005,870

3.97

 10,000,000

Sinochem Corporation 2.68% 08/09/2016

9,994,500

3.97

10,000,000

Xinxing Cathay International Group 3.28% 23/01/2017

10,004,470

3.97






Government Bond: 11.92%

(31 December 2015: RMB 39,553,520, 16.00%)*



30,000,000

China Government Bond 2.41% 19/10/2016

30,012,660

11.91









Total value of investments

 

 

 239,987,110

95.28

Other net assets less liabilities

 

11,882,836

4.72

Total net assets

251,869,946

100.00

                      

Summary of portfolio investments

 

Analysis of Net Investments

Value

RMB

% of Total Assets

*Transferable securities admitted to an official stock exchange listing

or traded on a regulated market

30,012,660

11.91

**Transferable securities not admitted to an official stock exchange

listing or traded on a regulated market

209,974,450

83.31


 

Commerzbank CCBI RQFII Money Market UCITS ETF

 

Statement of Total Return

 

For the period from 01 January 2016 to 30 June 2016

 


Note

RMB

RMB

Income:




Net capital loss

2


(341,245)

Revenue

3

3,268,430






Expenses

4

(805,993)






Net revenue before taxation


2,462,437






Taxation

5

11,285






Net revenue after taxation



2,473,722





Total return before distributions



2,132,477





Distributions



-





Change in net assets attributable to shareholders from investment activities



 

2,132,477

 

For the period from 19 December 2014 (date of incorporation) to 31 December 2015

 


Note

RMB

RMB

Income:




Net capital gains

2


450,130

Revenue

3

3,433,136






Expenses

4

(818,790)






Net revenue before taxation


         2,614,346






Taxation

5

           (48,613)






Net revenue after taxation



2,565,733





Total return before distributions



3,015,863





Distributions



(2,613,983)





Change in net assets attributable to shareholders from investment activities



 

401,880

 

 


 

Statement of Change in Net Assets Attributable to Shareholders

 

For the period from 01 January 2016 to 30 June 2016

 


RMB

RMB




Opening net assets attributable to shareholders


247,200,929




Amounts receivable on issue of shares

2,536,540




2,536,540




Change in net assets attributable to shareholders


2,132,477







Closing net assets attributable to shareholders


251,869,946

 

For the period from 19 December 2014 (date of incorporation) to 31 December 2015

 


RMB

RMB




Opening net assets attributable to shareholders


-




Amounts receivable on issue of shares

255,292,846





Amounts payable on cancellation of shares

(8,493,797)




246,799,049




Change in net assets attributable to shareholders


401,880







Closing net assets attributable to shareholders


247,200,929

 


 

Commerzbank CCBI RQFII Money Market UCITS ETF

 

Balance Sheet

 


Note

30 June

31 December



2016

2015

Assets


RMB

RMB





Fixed Assets:




Investments


239,987,110

235,758,394





Current Assets:




Debtors

6

3,135,321

3,020,022

Cash and bank balances

7

8,918,917

11,254,796





Total assets


252,041,348

250,033,212





Liabilities








Creditors:




Distribution payable


-

2,613,983

Other creditors

8

171,402

218,300





Total liabilities


171,402

2,832,283





Net assets attributable to shareholders


251,869,946

247,200,929

 

 


 

Commerzbank CCBI RQFII Money Market UCITS ETF

 

Statement of Cashflows

 

For the period from 01 January 2016 to 30 June 2016

 


Note

30 June

31 December



2016

2015



RMB

RMB

Cash flows from operating activities




Net revenue before taxation


 

2,462,437

 

2,614,346

Adjustment for non-cash flow items:




- Losses / (gains) on investments

2

322,711

(522,108)

   - Exchange losses

2

2,360

26,780

   - Non-operating expenses of a capital nature

2

8,763

45,198

   - Increase in amortisation


58,894

723,260

   - Increase in accrued income

6

(115,299)

(2,740,022)

   - Increase in other debtors

6

-

(280,000)

   - (Decrease) / increase in creditors

8

(46,898)

218,300

   - Tax on overseas income


(329,960)

398,050

Cash flows from operating activities


2,363,008

483,804





Investing activities




Purchases of investments


(210,204,020)

(683,251,689)

Sales of investments


205,593,699

447,295,610

Other capital charges and credits

2

(8,763)

(45,198)

Net cash used in operating activities


(4,619,084)

(236,001,277)

Cash flows before financing activities


(2,256,076)

(235,517,473)





Financing activities




Amounts received on issue of shares


2,536,540

255,292,846

Amounts paid on cancellation of shares


-

(8,493,797)

Distributions paid


(2,613,983)

-

Net cash (used in) / from financing activities


(77,443)

246,799,049





Net (decrease) / increase in cash and bank balances


(2,333,519)

11,281,576

Cash and bank balances at beginning of the period


11,254,796

-

Exchange losses on cash and bank balances

2

(2,360)

(26,780)





Cash and bank balances at end of the period

7

8,918,917

11,254,796

 

Comparative figures have been presented for the financial period from 19 December 2014 (date of incorporation) to 31 December 2015, as the Company was incorporated on 19 December 2014.

 

 

 


 

1.   Accounting policies

 

Basis of accounting

 

The financial statements have been prepared in accordance with the historical cost convention, as modified by the revaluation of investments, and in accordance with the Statement of Recommended Practice ("SORP") for Authorised Funds issued by the IA in May 2014 and Financial Reporting Standard 104 (''FRS 104'') 'the Financial Reporting Standard applicable in the UK and Republic of Ireland'.

 

The financial statements have been prepared on a going concern basis.

 

The comparative figures for the Statements of Total Return, Change in Net Assets Attributable to Shareholders and Cashflows are presented for the financial period from 19 December 2014 (date of incorporation) to 31 December 2015. The comparative figures included for the Balance Sheet are as at 31 December 2015.

 

The accounting policies used in the preparation of these financial statements are consistent with those used in the Company's most recent annual financial statements for the period ended 31 December 2015. There have been no changes in accounting policies since the date of the Company's last annual financial statements, for the period ended 31 December 2015. The format of these financial statements differs in some respects from that of the most recent annual financial statements, in that the notes to the financial statements are presented in a summary form.

 

2.   Net capital gains

 

The net capital gains / (losses) during the period comprise:

 


30 June

31 December*


2016

2015


RMB

RMB

Non-derivative securities

(330,122)

522,108

Currency losses

(2,360)

(26,780)

Transaction charges

(8,763)

(45,198)

Net capital (losses)/gains on investments

(341,245)

450,130

 

* for the period from 19 December 2014 (date of incorporation) to 31 December 2015.

 

3.   Revenue

 


30 June

31 December*


2016

2015


RMB

RMB

Interest on debt securities

3,252,246

3,391,414

Bank interest

16,184

41,722

Total revenue

3,268,430

3,433,136

 

* for the period from 19 December 2014 (date of incorporation) to 31 December 2015.


 

4.   Expenses

 


30 June

31 December*


2016

2015


RMB

RMB

Payable to the ACD or associates of the ACD:



ACD service charge

805,993

818,790

Total expenses

805,993

818,790

 

* for the period from 19 December 2014 (date of incorporation) to 31 December 2015.

 

5.   Taxation

 


30 June

31 December*


2016

2015


RMB

RMB

(a) Analysis of charge in the period:






Capital gains tax

(11,285)

48,613

Total tax (credit)/charge

(11,285)

48,613

 

* for the period from 19 December 2014 (date of incorporation) to 31 December 2015.

 

(b) Factors affecting taxation charge of the period:

 

The tax assessed for the period is lower than the standard rate of corporation tax in the UK for an open-ended investment company (20%). The differences are explained below:

 


30 June

31 December*


2016

2015


RMB

RMB

Net revenue before taxation

2,462,437

2,614,346

Corporation tax at 20%

492,487

522,869




Effects of:



Tax deductible interest distributions

(492,487)

(522,869)

Capital gains tax

(11,285)

48,613

Current tax charge

(11,285)

48,613

 

    * for the period from 19 December 2014 (date of incorporation) to 31 December 2015.

 

6.      Debtors

 


30 June

31 December*


2016

2015


RMB

RMB

Accrued revenue

2,855,321

2,740,022

Clearing reserve

280,000

280,000

Total debtors

3,135,321

3,020,022

 

       * for the period from 19 December 2014 (date of incorporation) to 31 December 2015.

 

 

7.   Cash and bank balances

 


30 June

31 December*


2016

2015


RMB

RMB

Cash held at bank

8,918,917

11,254,796

Total cash held at bank

8,918,917

11,254,796

 

    * for the period from 19 December 2014 (date of incorporation) to 31 December 2015.

 

8.   Other creditors

 


30 June

31 December*


2016

2015


RMB

RMB

Accrued expenses

-

32,496

Payable to the ACD

134,074

137,191

Tax payable

37,328

48,613

Total other creditors

171,402

218,300

 

       * for the period from 19 December 2014 (date of incorporation) to 31 December 2015.

 

9.   Contingent liabilities

 

There were no contingent liabilities at the period-end.

 

10.   Related party transactions

 

Commerz Funds Solutions S.A., the ACD is deemed to be a related party under the definition of FRS 104 section 4.2.8, which requires the disclosure of details of material transactions between the Company and any related party.

 

The ACD, a related party, acts as principal on all the transactions of shares in the Fund. The aggregate monies received through creations and liquidations are disclosed in the Statement of change in net assets attributable to shareholders, amounts due to/from the ACD in respect of share transactions at the period-end are disclosed in the balance sheet.

 

Amounts paid to the ACD in respect of periodic charges and administration fees is RMB 805,993 (31 December 2015: RMB 818,790) and amounts due at the end of the period is RMB 134,075 (31 December 2015: RMB 137,191).

 

The ACD did not enter into any other transactions with the Fund during the period ended
30 June 2016.

 

As at 30 June 2016 all of the shares of the Fund are held by CCB International Asset Management Limited.

 

Dealings with Associates:

 

There were no brokerage deals for the period effected through connected persons.

 

Any transactions through related parties are entered into in the ordinary course of business and on normal commercial terms.

 

11. Fair value hierarchy

 

Early adoption of the "Amendments to FRS 104 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' - Fair value hierarchy disclosures" issued by the FRC requires the Company to classify financial instruments measured at fair value into the following hierarchy:

 

§  level 1: The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date.

§  level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly.

§  level 3: Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.

 

A fair value measurement is categorised in its entirety on the basis of the lowest level input that is significant to the fair value measurement in its entirety.

 

The tables below set out the classification of the Fund's financial instruments measured at fair value as at 30 June 2016 and 31 December 2015 in accordance with FRS 104:

 

Valuation technique

Assets

Liabilities


30 June

30 June


2016

2016


RMB

RMB

Level 1 - Quoted prices for identical instruments in active markets

30,012,660

 

-

Level 2 - Valuation techniques using observable market data

209,974,450

-

Level 3 - Valuation techniques using non-observable data

-

-


239,987,110

-

 

Valuation technique

Assets

Liabilities


31 December

31 December


2015

2015


RMB

RMB

Level 1 - Quoted prices for identical instruments in active markets

39,553,520

-

Level 2 - Valuation techniques using observable market data

196,204,874

-

Level 3 - Valuation techniques using non-observable data

-

-


235,758,394

-


 

12. Shareholder funds

 

The Fund has three share classes in issue: Class A RMB, Class B GBP and Class C EUR. The annual management charge on each share class is 0.65% per annum.

 

The net asset value of each share class, the net asset value per share and the number of shares in each share class are given in the below table:

 

Units in issue







Opening

    Units


Closing

Unit Class

1 January 2016

Issued

Redeemed

Converted

30 June 2016







Class A RMB

2,425,000

25,000

-

-

2,450,000

Class B GBP

500

-

-

-

500

Class C EUR

35,500

-

-

-

35,500

 

Units in issue






    Units


Closing

Unit Class

Issued

Redeemed

Converted

31 December 2015






Class A RMB

2,425,000

-

-

2,425,000

Class B GBP

500

-

-

500

Class C EUR

160,500

125,000

-

35,500

 

All share classes have the same rights on winding up.

 

13. Events after the balance sheet date

 

There are no events to be reported after the balance sheet date.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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