Bank of China issues the Securities Investment Enhanced Convertible Bond Fund (BOC Convertible Bond Fund) on May 30th, making the total number of convertible bond funds currently available on the market up to seven.
With the characteristics of both bonds and stocks, a convertible bond fund is a stable and safe investment tool that can share the potential gains from a rising stock market. According to the introduction, BOC Convertible Bond Fund will invest at least 80% of the fund's total assets in fixed income securities, of which at least 80% will be invested in convertible corporate bonds (including convertible bonds that can be traded separately). Meanwhile, at least 5% of the fund's net assets will be invested in cash or government bonds with maturity within one year, and investment on stocks (including new share subscription on the primary market and equity investment on the secondary market) and other equity securities like warrants will be capped at 20% of the fund's total assets.
Bank of China Investment Management Co., Ltd. (BOCIM) has an excellent and professional fixed income fund investment team that has managed the BOC Monetary Fund, BOC Profit Increase Bond Fund and BOC Double Interests Bond Fund, all demonstrating outstanding performance. According to the Wind statistics, as of May 24, BOC Profit Increase Bond Fund produced a cumulative yield of 17.97% since its establishment over two years ago, ranking the 8th in the total 114 comparable bond funds of the same category. It had a split-adjusted yield of 1.83% in the first quarter of this year, topping the 71 primary bond funds. The fund is also the winner of the "Golden Bull Bond Fund Award 2010" and the only bond fund that received the "Fund of the Year Award 2010" by Morningstar (China) for its outstanding performance.
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