Fidelity Funds - European High Yield Fund A MDis USD (Hedged)

富達基金 - 歐洲高收益基金A類MDis 美元(對沖)

LU0882574212

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.

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Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD4,000.00Min. Subscription

1.00%

HKD4,000.00Min. Subscription

AUD / CHF / HKD / JPY / EUR / GBP / CAD / USD / NZD

HKD4,000.00Min. Subscription

HKD4,000.00

HKD4,000.00

Daily

16:30

2019-09-30

*Not include dividends (If applicable)

Fund Performances (including dividend, if any)

1 mth
+1.57%
3 mth
+3.20%
6 mth
+6.45%
1 yr
+9.86%
3 yr
+20.00%
5 yr
+28.59%

Analytical Figures (3 years)

Annualized Return
+6.27%
Annualized Volatility
+3.76%
Sharpe Ratio
+1.16

Fund Information

Fund Houses
FIL Investment Management (Hong Kong) Limited
Launch Date
2000-06-25
Fund Manager
Andrei Gorodilov
James Durance
Manager Start Date
2013-02-01
2017-04-01
Geographical Focus
Europe
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 2019-08-30)
EUR 2,702,837,605.651
Management Fee
1.00%
Latest Dividend
USD 0.030600 (2019-09-01)

Sector Leaders

    No Funds

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD4,000.00Min. Subscription

1.00%

HKD4,000.00Min. Subscription

AUD / CHF / HKD / JPY / EUR / GBP / CAD / USD / NZD

HKD4,000.00Min. Subscription

HKD4,000.00

HKD4,000.00

Daily

16:30

2019-09-30

Dividend Records

Dividend DateDividend Records (USD)
2019-09-010.030600
2019-07-310.032300
2019-06-300.029700
2019-06-020.033600
2019-04-300.033200
2019-03-310.032800
2019-02-280.029600
2019-02-270.029600
2019-01-310.029200
2019-01-010.031800
2018-12-020.031500
2018-10-310.035100
2018-09-300.028400
2018-09-020.030900
2018-07-310.033300
2018-07-010.032500
2018-05-310.038600
2018-04-300.031300
2018-04-010.037700
2018-02-280.032100
2018-01-310.032800
2018-01-010.031800
2017-11-300.033800
2017-10-310.035600
2017-10-010.031800
2017-08-310.035400
2017-07-310.033500
2017-07-020.034700
2017-05-310.035100
2017-04-300.034600
2017-04-020.035800
2017-02-280.036200
2017-01-310.034500
2017-01-010.036100
2016-11-300.034400
2016-10-310.032400
2016-10-020.033600
2016-08-310.030400
2016-07-310.029100
2016-06-300.035400
2016-05-310.032000
2016-05-010.031900
2016-03-310.032100
2016-02-290.034500
2016-01-310.036000
2016-01-030.037400
2015-11-300.036900
2015-11-010.035600
2015-09-300.034600
2015-08-310.034800
2015-08-020.035100
2015-06-300.038000
2015-05-310.035900
2015-04-300.036700
2015-03-310.036500
2015-03-010.037400
2015-02-010.036800
2015-01-010.039200
2014-11-300.035700
2014-11-020.035400
2014-09-300.031600
2014-08-310.039000
2014-07-310.039800
2014-06-300.042700
2014-06-010.039000
2014-04-300.041000
2014-03-310.042500
2014-03-020.043700
2014-02-020.041400
2014-01-010.043900
2013-12-010.043900
2013-10-310.041300
2013-09-300.044300
2013-09-010.043600
2013-07-310.041900
2013-06-300.043600
2013-06-020.043900
2013-04-300.047300

Investment Objective

The fund is a Bond fund and aims to provide a high level of current income and capital growth.

Nature and Extent of Risks

Investment involves risks. Please refer to the Hong Kong Prospectus for details including the risk factors.
Investment Risk
The fund is an investment fund. The fund’s investment portfolio may fall in value and therefore your investment in the fund may suffer losses. There is no assurance that the strategy employed by the fund will be successful and therefore the investment objectives of the fund may not be achieved.
Bonds, Debt Instruments & Fixed Income and Credit Risk
The value of bonds, debt instruments and other fixed income instruments will fluctuate depending on market interest rates, the credit quality of the issuer and liquidity considerations. Increase in market interest rates, decline in the credit quality of the issuer and decrease in liquidity will adversely impact the value of these instruments.
Investments may be adversely affected if any of the institutions with which money is deposited suffers insolvency or other financial difficulties (default). Credit risk arises from the uncertainty about the ultimate repayment of principal and interest of bond or other debt instrument investments. In both cases the entire deposit or purchase price of the debt instrument is at risk of loss if there is no recovery after default.
Valuation of the 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 fund.
Below Investment Grade/Unrated Securities & High Yielding Debt Instruments
The fund may invest in below investment grade and unrated securities. Below investment grade and unrated securities may be subject to wider fluctuations in yield, wider bid-offer spreads, greater liquidity premium (i.e. lower liquidity) and consequently greater fluctuations in market values and greater credit / default risk than higher rated securities. These fluctuations may affect the value of the fund’s share price to a greater extent than a fund that invests in higher rated securities.
The fund may also invest in high yielding debt instruments where the level of income may be relatively high (compared to investment grade debt securities); however the risk of depreciation and realisation of capital losses on such debt instruments held will be significantly higher than on lower yielding debt instruments. Further, as these instruments are typically rated below investment grade or are unrated, they are often subject to a higher risk of issuer default. The vulnerability to economic cycles is also higher as during economic downturns, these instruments are more volatile than investment grade bonds as investors become more risk averse and default risk rises.
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.
Securitised or Structured Debt Instruments
The fund may invest in securitised or structured debt instruments (collectively referred to as structured products), which may employ leverage causing the price of the instruments to be more volatile. The lack of liquidity may cause the current market price of assets to become disconnected from the underlying assets’ value and consequently funds investing in securitised products may be more susceptible to liquidity risk. The liquidity of a structured product can be less than a regular bond or debt instrument and this may adversely affect either the ability to sell the position or the price at which such a sale is transacted.
Mortgage-Related Securities
Generally, rising interest rates tend to extend the duration of fixed rate mortgage-related securities making them more sensitive to changes in interest rates. As a result, in a period of rising interest rates a fund holding mortgage-related securities may exhibit additional volatility (extension risk). In addition, adjustable and fixed rate mortgage-related securities are subject to prepayment risk. When interest rates decline, borrowers may pay off their mortgages sooner than expected. This can reduce the returns of the fund because the fund may have to reinvest that money at the lower prevailing interest rates. In addition investments in securitised products may be less liquid than other securities. The lack of liquidity may cause the current market price of assets to become disconnected from the underlying assets value and consequently funds investing in securitised products may be more susceptible to liquidity risk. The liquidity of a securitised product can be less than a regular bond or debt instrument and this may adversely affect either the ability to sell the position or the price at which such a sale is transacted.
Emerging Markets
This fund invests in emerging market securities (in particular securities in Western, Central and Eastern Europe (including Russia)) and the price of these securities may be more volatile than those of securities in more developed markets.
This volatility may stem from political and economic factors and be exacerbated by legal, trading liquidity, settlement, transfer of securities and currency factors.
Although care is taken to understand and manage these risks, the fund and accordingly the shareholders in the fund will ultimately bear the risks associated with investing in these markets.
Emerging Markets - Russia
This fund invests in Russia and it is understood that under current Luxembourg regulations the fund may invest not more than 10% of its net assets in unlisted securities not dealt on a regulated market. Some investments in Russian securities may be considered as falling within such limit.
The Russian market presents specific risks in relation to the settlement and safekeeping of securities as well as regarding the registration of assets where registrars are not always subject to effective government or other supervision.
Foreign Currency Risk
The fund’s total return and balance sheet can be significantly affected by foreign exchange rate movements where the fund’s assets and income are denominated in currencies other than the base currency of the fund. Also, a class of shares may be designated in a currency other than the base currency of the fund. This means that currency movements and changes in exchange rate controls may significantly affect the value of the fund’s share price.
European Risk
The fund’s performance will be closely tied to the economic, political, regulatory, geopolitical, market, currency or other conditions in the European Economic Area and could be more volatile than the performance of more geographically diversified funds. In light of the concerns on sovereign credit risk of certain European countries and in particular these countries' fiscal conditions, the fund may be subject to increased liquidity, price, and foreign exchange risk. If there are adverse credit events in certain European countries e.g. downgrade of the sovereign credit rating of a European country or a European financial institution, the performance of the fund could decline significantly and will possibly result in significant loss. Measures taken by the governments of the European countries, central banks and other authorities to address their economic and financial problems may not be effective and such failure may result in further deterioration of these countries’ fiscal conditions.
Financial Derivative Instruments
Although the fund will not make extensive use of derivatives for investment purposes or use complex derivatives or strategies to meet the investment objectives of the fund, the use of derivatives may give rise to leverage, liquidity, counterparty and valuations risks at times. In adverse situations, the fund’s use of derivatives may become ineffective and the fund may suffer significant losses.
Risks associated with distribution out of capital
For certain Classes of Shares, dividends may be 1) paid out of gross income while fees/charges may be charged to capital of the fund. This will result in an increase in distributable income for the payment of dividends, and therefore the fund may pay dividend effectively out of capital; or 2) paid directly out of capital where the net income generated by the fund is insufficient to pay a distribution as declared. Investors should note that the payment of dividends directly out of capital and/or effectively out of capital represents a return or withdrawal of part of the amount they originally invested or from any capital gains attributable to the original investment. Such distributions may result in an immediate decrease in the net asset value per Share of the fund. If there is a change to this policy, prior approval will be sought from the SFC and affected investors will receive at least one month’s prior written notification.
The Net Asset Value of a certain hedged share class may be adversely affected by differences in the interest rates of the reference currency of the hedged share class and the 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 share classes.

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