BEA Union Investment China High Yield Income Fund A Dis AUD (Hedged)

東亞聯豐中國高收益入息基金 A類 Dis 澳元 對沖

HK0000288057

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.

Non-dealing Hours

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD4,000.00Min. Subscription

1.20%

HKD4,000.00Min. Subscription

AUD

HKD4,000.00Min. Subscription

HKD4,000.00

HKD4,000.00

Daily

15:30

-

*Not include dividends (If applicable)

Fund Performances (including dividend, if any)

1 mth
+0.86%
3 mth
+2.34%
6 mth
+2.60%
1 yr
+9.10%
3 yr
+12.95%
5 yr
-

Analytical Figures (3 years)

Annualized Return
+4.14%
Annualized Volatility
+9.78%
Sharpe Ratio
-0.07

Fund Information

Fund Houses
BEA UNION INVESTMENT MANAGEMENT LIMITED
Launch Date
2016-04-21
Fund Manager
Team Managed
Manager 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 2019-10-30)
USD 63,480,000
Management Fee
1.20%
Latest Dividend
AUD 0.058800 (2019-11-14)

Sector Leaders

    No Funds

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD4,000.00Min. Subscription

1.20%

HKD4,000.00Min. Subscription

AUD

HKD4,000.00Min. Subscription

HKD4,000.00

HKD4,000.00

Daily

15:30

-

Dividend Records

Dividend DateDividend Records (AUD)
2019-11-140.058800
2019-10-140.060900
2019-09-150.061600
2019-08-140.064000
2019-07-140.063900
2019-06-160.066400
2019-05-140.066700
2019-04-140.065800
2019-03-140.065900
2019-02-140.065000
2019-01-140.060900
2018-12-160.065100
2018-11-140.070900
2018-10-140.071000
2018-09-160.064800
2018-08-140.064800
2018-07-150.065200
2018-06-140.069100
2018-05-140.069100
2018-04-150.069100
2018-03-140.073200
2018-02-140.069100
2018-01-140.073200
2017-12-140.073200
2017-11-140.073200
2017-10-150.073200
2017-09-140.073200
2017-08-140.073200
2017-07-160.069500
2017-06-140.069500
2017-05-140.069500
2017-04-170.069500
2017-03-140.069500
2017-02-140.069500
2017-01-150.066800
2016-12-140.066800
2016-11-140.066800
2016-10-160.066800
2016-09-140.066800
2016-08-140.066800
2016-07-140.066800

Investment Objective

The investment objective of the Sub-Fund is to seek medium to long term capital growth and regular income by primarily (i.e. at least 70% of its non-cash assets) investing in high yield debt securities that are issued or guaranteed by entities which are incorporated in China or have significant operations in or assets in, or derive significant portion of revenue or profits from China. The debt securities as described above, which may be denominated in USD, RMB or other currencies, are hereinafter referred to as “Debt Securities”. For the remaining assets, the Manager has the freedom to invest outside Sub-Fund’s principal geographies, market sectors, industries or asset classes.

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. Interest rates, credit and downgrading risks
• The Sub-Fund invests directly in debt securities including high yield bonds, which are susceptible to interest rate changes and may experience significant price volatility. In general, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise.
• The Sub-Fund is also exposed to the credit/default risk of issuers of the debt securities that the Sub-Fund may invest in. If the issuer of any of the securities in which the SubFund 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. • Debt securities invested by the Sub-Fund may be subject to the risk of being downgraded. In the event of downgrading in the credit ratings of a security or an issuer of a security, the Sub-Fund’s investment value in such security may be adversely affected. The Manager may or may not be able to dispose the debt instruments that are being downgraded.
3. Risks relating to below investment grade and non-rated securities including high yield bonds
• 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.
4. Volatility and liquidity risk
• The debt securities that are issued by Chinese entities may be subject to higher volatility and lower liquidity compared to debt securities issued by entities in more developed markets. The prices of such securities may be subject to fluctuations.
5. Concentration risk/China market risk
• The Sub-Fund’s investments are concentrated in specific geographical location, i.e. 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 adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the China market.
6. “Dim Sum” bond (i.e. bonds issued outside mainland China but denominated in RMB) market risks
• The “Dim Sum” bond market is still a relatively small market which is more susceptible to volatility and illiquidity. The operation of such 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 of issuers 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).
7. Risks of investing in convertible bonds
• Convertible bonds are a hybrid between debt and equity, permitting holders to convert into shares in the company issuing the bond at a specified future date. As such, convertibles will be exposed to equity movement and greater volatility than straight bond investments. Investments in convertible bonds are subject to the same interest rate risk, credit risk, liquidity risk and prepayment risk associated with comparable straight bond investments.
8. Currency risk
• The Sub-Fund is denominated in US dollars although underlying investments of the SubFund may be denominated in other currencies. Also, a class of Units may be designated in a currency other than the base currency of the Sub-Fund. The NAV of the Sub-Fund may be affected unfavorably by fluctuations in the exchange rate between these currencies and US dollars and by changes in exchange rate controls.
9. Derivative risk
• The Sub-Fund may invest in financial derivative instruments that are subject to, among others, liquidity risk (i.e. the risk that the Sub-Fund may not be able to close out a derivative position in a timely manner and/or at a reasonable price), counterparty/credit risk (i.e. the risk that a counterparty may become insolvent and therefore unable to meet its obligations under a transaction), 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.
10. Distribution risk
• In respect of the each accounting period, it is the Manager’s current intention and discretion to distribute at least 85% of the income generated from the Sub-Fund’s investments attributable to the relevant distributing Units. However, there is no assurance on such distribution or the distribution rate or dividend yield.
11. 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. Investors should note that the 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. Such distribution may result in an immediate reduction of the net asset value per Unit.
12. 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.
13. RMB currency and conversion risks
• RMB is currently not freely convertible and is subject to foreign exchange control policies and restrictions of the Chinese government.
• 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 thevalue of investor’s investment in the Sub-Fund.
• Although offshore RMB (CNH) and onshore RMB (CNY) are the same currency, they tradeat different rates. Any divergence between CNH and CNY may adversely impact investors.
• Under exceptional circumstances, payment of redemptions and/or dividend payment inRMB may be delayed due to the exchange controls and restrictions applicable to RMB.

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