BEA Union Investment China High Yield Income Fund A Dis USD

東亞聯豐中國高收益入息基金 A類 Dis 美元

HK0000288032

Risk Rating: Level 4

iFund risk rating methodology is a qualitative and quantitative assessment of a single fund’s geographic and asset class focus, investment style and any potential risk factors, as measured from one (1) (lowest risk) to six (6) (highest risk). For the funds with risk rating three (3) or four (4), these are mainly aimed at providing income and capital appreciation to investors by investing primarily in balanced portfolio, including high yield bonds and global equities etc. For more details, please refer to the Due Diligence section under the Procedures page.

On Holiday

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD4,000.00Min. Subscription

1.20%

HKD4,000.00Min. Subscription

USD

HKD4,000.00Min. Subscription

HKD4,000.00

HKD4,000.00

Daily

14:00

2021-06-30

*Not include dividends (If applicable)

Fund Performances (including dividend, if any)

1 mth
-0.96%
3 mth
-0.51%
6 mth
-0.48%
1 yr
+5.66%
3 yr
+15.62%
5 yr
+29.05%

Analytical Figures (3 years)

Annualized Return
+4.96%
Annualized Volatility
+9.48%
Sharpe Ratio
+0.46

Fund Information

Fund Houses
BEA UNION INVESTMENT MANAGEMENT LIMITED
Launch Date
2016-04-21
Fund Manager
Team Managed (Start Date: 2016-04-22)
Manager Start Date
Team Managed (Start Date: 2016-04-22)
Geographical Focus
China
Asset Class/ Sector
Fixed Income - High yield
Risk Rating
Risk Level 4

iFund risk rating methodology is a qualitative and quantitative assessment of a single fund’s geographic and asset class focus, investment style and any potential risk factors, as measured from one (1) (lowest risk) to six (6) (highest risk). For the funds with risk rating three (3) or four (4), these are mainly aimed at providing income and capital appreciation to investors by investing primarily in balanced portfolio, including high yield bonds and global equities etc. For more details, please refer to the Due Diligence section under the Procedures page.

Fund AUM(As of 2021-06-16)
USD 51,330,000
Management Fee
1.20%
Latest Dividend
USD 0.060800 (2021-06-14)

Sector Leaders

    No Funds

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD4,000.00Min. Subscription

1.20%

HKD4,000.00Min. Subscription

USD

HKD4,000.00Min. Subscription

HKD4,000.00

HKD4,000.00

Daily

14:00

2021-06-30

Dividend Records

Dividend DateDividend Records (USD)
2021-06-140.060800
2021-05-160.060800
2021-04-140.060800
2021-03-140.060800
2021-02-150.060800
2021-01-140.060800
2020-12-140.060800
2020-11-150.060800
2020-10-140.060800
2020-09-140.060800
2020-08-160.060800
2020-07-140.060800
2020-06-140.059200
2020-05-140.055900
2020-04-140.064600
2020-03-150.064900
2020-02-160.065300
2020-01-140.069200
2019-12-150.069300
2019-11-140.068800
2019-10-140.069000
2019-09-150.069700
2019-08-140.070100
2019-07-140.069900
2019-06-160.070300
2019-05-140.070500
2019-04-140.069400
2019-03-140.069400
2019-02-140.068400
2019-01-140.059900
2018-12-160.060200
2018-11-140.061700
2018-10-140.061700
2018-09-160.054900
2018-08-140.054900
2018-07-150.054900
2018-06-140.057700
2018-05-140.057700
2018-04-150.057700
2018-03-140.061700
2018-02-140.057700
2018-01-140.061700
2017-12-140.061700
2017-11-140.061700
2017-10-150.061700
2017-09-140.061700
2017-08-140.061700
2017-07-160.056800
2017-06-140.056800
2017-05-140.056800
2017-04-170.056800
2017-03-140.056800
2017-02-140.056800
2017-01-150.058300
2016-12-140.058300
2016-11-140.058300
2016-10-160.058300
2016-09-140.058300
2016-08-140.058300
2016-07-140.058300

Investment Objective

The investment objective of the Sub-Fund is to seek medium to long term capital growth and regular income by primarily investing in China high yield debt securities.

Nature and Extent of Risks

Investment involves risks. Please refer to the Explanatory Memorandum for details including the risk factors.
1. Investment risk
• The Sub-Fund’s investment portfolio may fall in value and therefore your investment in the Sub-Fund may suffer losses. There is no guarantee of the repayment of principal.
2. Risks associated with debt securities
• Interest rates – The Sub-Fund is subject to interest rate risk. In general, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise.
• Credit / Counterparty risk – The Sub-Fund is also exposed to the credit/default risk of issuers or guarantors of the debt securities that the Sub-Fund may invest in. If the issuer or guarantor of any of the securities in which the Sub-Fund invests defaults or suffers insolvency or other financial difficulties, the value of the Sub-Fund will be adversely affected and may lead to a loss of principal and interest.
• Downgrading risk – The credit rating of a debt instrument or its issuer or guarantor may subsequently be downgraded. In the event of such downgrading, the value of the Sub-Fund may be adversely affected. The Manager may or may not be able to dispose the debt instruments that are being downgraded.
• Below investment grade and non-rated securities – The Sub-Fund may invest significantly in below investment grade or non-rated debt securities including high yield bonds. Such debt securities are generally subject to lower liquidity, higher volatility and greater risk of loss of principal and interest than higher-rated securities. The Sub-Fund’s ability to liquidate its holdings in response to changes in the economy or the financial markets may be further limited by factors such as adverse publicity and investor perception.
• Volatility and liquidity risk – The debt securities in China may be subject to higher volatility and lower liquidity compared to more developed markets. The prices of such securities may be subject to fluctuations. The bid and offer spreads of the price of such securities may be large and the Sub-Fund may incur significant trading costs.
• Sovereign debt risk – The Sub-Fund’s investment in securities issued or guaranteed by governments may be exposed to political, social and 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.
• Valuation risk – Valuation of the Sub-Fund’s investments may involve uncertainties and judgmental determinations. If such valuation turns out to be incorrect, this may affect the net asset value calculation of the Sub-Fund.
• Credit rating risk – Credit ratings assigned by rating agencies are subject to limitations and do not guarantee the creditworthiness of the security and/or issuer at all times.
3. Concentration risk/China market risk
• The Sub-Fund’s investments are concentrated in China. The value of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio of investments.The value of the Sub-Fund may be more susceptible to economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event adversely affecting the China market.
4. Emerging market risk
• The Sub-Fund invests in emerging markets which may involve 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 the likelihood of a high degree of volatility.
5. Currency risk
• Underlying investments of the Sub-Fund may be denominated in currencies other than the base currency of the Sub-Fund, i.e. US dollars. Also, a class of Units may be designated in a currency other than the base currency of the Sub-Fund. The net asset value of the Sub-Fund may be affected unfavourably by fluctuations in the exchange rate between these currencies and US dollars and by changes in exchange rate controls.
6. Derivative risk
• Risks associated with derivative instruments include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The leverage element/component of a derivative instrument can result in a loss significantly greater than the amount invested in the derivative instrument by the Sub-Fund. Exposure to derivative instruments may lead to a higher risk of significant loss by the Sub-Fund.
• The Sub-Fund may use derivative instruments for hedging purposes which may not achieve the intended purpose. In an adverse situation, the Sub-Fund’s use of derivative instruments may become ineffective in achieving hedging and may result in significant losses.
7. Effect of distribution out of capital
• The Manager may at its discretion make distributions from income and/or capital in respect of the distributing classes of the Sub-Fund. Distributions paid out of capital amount to a return or withdrawal of part of the unitholder’s original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction of the net asset value per Unit.
• The distribution amount and net asset value of the currency hedged class units may be adversely affected by differences in the interest rates of the reference currency of the currency hedged class units and the Sub-Fund’s base currency, resulting in an increase in the amount of distribution that is paid out of capital and hence a greater erosion of capital than other non-hedged unit classes.
8. Currency hedging risk
• Adverse exchange rate fluctuations between the base currency of the Sub-Fund and the class currency of the currency hedged class units may result in a decrease in return and/or loss of capital for unitholders. Over-hedged or under-hedged positions may arise and there can be no assurance that these currency hedged class units will be hedged at all times or that the Manager will be successful in employing the hedge.
• The costs of the hedging transactions will be reflected in the net asset value of the currency hedged class units and therefore, an investor of such currency hedged class units will have to bear the associated hedging costs, which may be significant depending on prevailing market conditions.
• If the counterparties of the instruments used for hedging purpose default, investors of the currency hedged class units may be exposed to currency exchange risk on an unhedged basis and may therefore suffer further losses.
• While hedging strategies may protect investors in the currency hedged class units against a decrease in the value of the Sub-Fund’s base currency relative to the class currency of the currency hedged class units, it may also preclude investors from benefiting from an increase in the value of the Sub-Fund’s base currency.
9. RMB currency and conversion risks
• RMB is currently not freely convertible and is subject to exchange controls and restrictions.
• Non-RMB based (e.g. Hong Kong) investors are exposed to foreign exchange risk and there is no guarantee that the value of RMB against the investors’ base currencies (for example HKD) will not depreciate. Any depreciation of RMB would adversely affect the value of investor’s investment in the Sub-Fund.
• Although offshore RMB (CNH) and onshore RMB (CNY) are the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors.
• 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.