Income Partners Managed Volatility High Yield Bond Fund 2A Acc (USD)

弘收高收益波幅管理債券基金 2A 累積(美元)

HK0000421419

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

HKD15,000.00Min. Subscription

1.50%

HKD15,000.00Min. Subscription

RMB / USD

HKD15,000.00Min. Subscription

HKD15,000.00

HKD15,000.00

Daily

16:30

-

*Not include dividends (If applicable)

Fund Performances (including dividend, if any)

1 mth
+1.61%
3 mth
+1.83%
6 mth
-1.00%
1 yr
+9.27%
3 yr
+15.26%
5 yr
+18.08%

Analytical Figures (3 years)

Annualized Return
+4.85%
Annualized Volatility
+4.26%
Sharpe Ratio
+0.98

Fund Information

Fund Houses
Income Partners Asset Management (HK) Ltd
Launch Date
2011-07-26
Fund Manager
Raymond Gui
James Hu
Manager Start Date
Raymond Gui (Start Date: 2011-07-27) James Hu (Start Date: 2011-07-27)
Geographical Focus
Greater 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 2019-08-29)
RMB 1,810,000,000
Management Fee
1.50%
Latest Dividend
N.A.

Sector Leaders

    No Funds

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD15,000.00Min. Subscription

1.50%

HKD15,000.00Min. Subscription

RMB / USD

HKD15,000.00Min. Subscription

HKD15,000.00

HKD15,000.00

Daily

16:30

-

Dividend Records

No Dividends

Investment Objective

The investment objective of the Sub-Fund is to maximize total investment returns, comprising capital appreciation and interest income, primarily from high yield debt instruments, which are below investment grade or unrated.

Nature and Extent of Risks

Investment involves risks. Please refer to the Explanatory Memorandum for details including the risk factors.
1. Investment risk
- The investments held by the Sub-Fund may fall in value due to any of the key risk factors below and therefore your investment in the Sub-Fund may suffer losses. There is no guarantee of the repayment of principal.
2. Currency and foreign exchange risk
- Underlying investments in the Sub-Fund may be denominated in currencies other than the base currency of the Sub-Fund. Also, a class of units may be designated in a currency other than the base currency of the Sub-Fund. The NAV may be affected unfavourably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls.
3. Risks relating to debt securities
High-yield (below investment grade and unrated) securities risk
- The Sub-Fund will invest in debt securities which are high-yield (below investment grade and unrated). Such debt securities are generally subject to a higher degree of counterparty risk, credit risk, lower liquidity, higher volatility and greater risk of loss of principal and interest than higher rated debt securities.
Credit / Counterparty risk
- The Sub-Fund is exposed to the credit/default risk of issuers of the debt securities that the Sub-Fund may invest in.
- Certain high yielding fixed income securities or instruments that the Sub-Fund invests in may be offered on an unsecured basis without collateral, and such instruments will rank equally with other unsecured debts of the relevant issuer. In such circumstances, if the issuer becomes bankrupt, proceeds from the liquidation of the issuer’s assets will be paid to holders of the relevant instrument only after all secured claims have been satisfied in full. The Sub-Fund is therefore fully exposed to the credit/insolvency risk of its counterparties as an unsecured creditor and may suffer a total loss on the securities if the counterparties default.
Credit ratings risks
- The credit rating of a debt instrument or its issuer may subsequently be downgraded, which may adversely affect the value of the Sub-Fund. The Manager may or may not be able to dispose of the debt instruments that are being downgraded.
- 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.
- The credit appraisal system in the PRC and the rating methodologies employed in the PRC may be different from those employed in other markets. PRC credit ratings may not be directly comparable with those given by other international rating agencies.
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 fund to participate in restructuring such debts. The Sub-Fund may suffer significant losses when there is a default of sovereign debt issuers.
Liquidity risk
- Not all securities or investments held by the Sub-Fund will be listed or rated or actively traded and consequently liquidity may be low. There is no guarantee that market making arrangements will be in place to make a market and quote a price for all fixed income instruments. Interest rate risk - Investment in the Sub-Fund is subject to interest rate risk. In general, the prices of debt instruments rise when interest rates fall, whilst their prices fall when interest rates rise. Valuation risk - Valuations of the Sub-Fund’s investments may involve uncertainties and judgmental determinations, which if proven to be incorrect, this will affect the NAV calculation.
4. Country and region risk
- This Sub-Fund focuses its investments on debt instruments issued by or fully guaranteed by governments, government-related entities, or companies in the Greater China region, and involves concentration risks. Consequently, this Sub-Fund is particularly dependent on the development of that region and individual or interdependent countries in that region, and of governments and companies based on/or operating in such countries/region.
5. China market risk
- Investment in the China market is subject to emerging market risk including political, economic, legal, regulatory and liquidity risks. These risks may have adverse impact on the Sub-Fund and its investors.
6. RMB currency risk
- RMB is currently not freely convertible and is subject to exchange controls and repatriation restrictions. Such control of RMB currency conversion and exchange rates movements may adversely affect the operations and financial results of PRC companies and may subject the Sub-Fund to higher transaction costs associated with currency conversion which impacts the NAV.
- Non-RMB based investors are exposed to foreign exchange risk and there is no guarantee that the value of RMB against the investors’ base currencies (e.g. HKD) will not depreciate. Any depreciation of RMB could adversely affect the value of the investors’ investments. The Manager normally applies the exchange rate for offshore RMB market in Hong Kong (CNH) when calculating the value of non-RMB investments. Although CNH and onshore RMB (CNY) are the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors. If investors convert other currencies into RMB so as to invest in the RMB Classes of Units and subsequently convert the RMB redemption proceeds back into other currencies, they may suffer a loss if RMB depreciates against such other currencies.
- Investors whose Class currency is not in RMB should note that restrictions on the conversion of RMB into other currencies may delay the payment of redemption proceeds and dividend proceeds in the relevant Class currency.
7. Managed volatility strategy risk
- The managed volatility strategy may not achieve the desired results under all circumstances and market conditions. While the Manager will endeavour to manage the Sub-Fund such that it does not exceed its pre-determined annualized volatility target, there is no guarantee that such targets can be reached in all market condition. Investors should note that managed volatility does not necessarily mean lower risk and the Sub-Fund may still suffer losses.
8. Derivatives and hedging risk
- The Sub-Fund may enter into derivatives transactions such as swaps, futures and forwards for hedging purposes. There is no assurance that the use of hedging strategies, techniques and derivative instruments will always be available, or eliminate the risk exposure of the Sub-Fund. Hedging may become inefficient or ineffective. In adverse situations, the Sub-Fund may even suffer significant losses.
9. Distributions risk
- The Manager may at its discretion pay distributions out of, or effectively out of, the capital of the Sub-Fund. This represents a return or a withdrawal of part of the amount investors originally invested or from any capital gains attributable to that amount, which may decrease the net asset value of the relevant Units.
- The distribution amount and net asset value of the hedged class of units may be adversely affected by differences in the interest rates of the reference currency of the hedged class of 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 the other non-hedged class of units.

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