Invesco Belt and Road Bond Fund A Acc USD

景順一帶一路債券基金 A類 Acc 美元

HK0000395894

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

HKD10,000.00Min. Subscription

1.25%

HKD10,000.00Min. Subscription

USD

HKD10,000.00Min. Subscription

HKD10,000.00

HKD10,000.00

Daily

16:30

2019-09-30

*Not include dividends (If applicable)

Fund Performances (including dividend, if any)

1 mth
+1.58%
3 mth
+2.19%
6 mth
+3.21%
1 yr
+7.20%
3 yr
-
5 yr
-

Analytical Figures (3 years)

Annualized Return
-
Annualized Volatility
-
Sharpe Ratio
-

Fund Information

Fund Houses
Invesco Hong Kong Ltd (Trust Fund Series)
Launch Date
2018-02-28
Fund Manager
Ken Hu
Chris Lau
Jackson Leung
Yifei Ding
Manager Start Date
2018-3-1
Geographical Focus
Emerging Markets
Asset Class/ Sector
Fixed Income - Hybrid
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)
USD 41,713,038.56
Management Fee
1.25%
Latest Dividend
N.A.

Sector Leaders

    No Funds

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD10,000.00Min. Subscription

1.25%

HKD10,000.00Min. Subscription

USD

HKD10,000.00Min. Subscription

HKD10,000.00

HKD10,000.00

Daily

16:30

2019-09-30

Dividend Records

No Dividends

Investment Objective

The Fund is a thematic product which aims to achieve long-term total returns in terms of both income and capital growth by investing primarily in debt securities whose issuers, guarantors and/or domiciled countries could or would directly or indirectly benefit from China's Belt and Road vision of increasing land and sea paths to connect Asia, Europe, Middle East and Africa and their adjacent seas (the "Belt and Road Region") for closer economic co-operation (the "Belt and Road Initiative").

Nature and Extent of Risks

Investment involves risks. Please refer to the Prospectus for details including the risks factors.
1. General investment risk
There can be no assurance that the Fund will achieve its investment objective. There is no guarantee of the repayment of principal. The instruments invested by the Fund may fall in value due to any of the key risk factors below and therefore your investment in the Fund may suffer losses.
2. Risk of misalignment between the Fund's investment theme and the Belt and Road vision
The Belt and Road vision is a very broad theme and has no specific definition. The Fund Manager's professional view on what countries and sectors may benefit from the Belt and Road
vision may not be shared by other market participants and can be subjective; hence it may or may not align with most market participants and may not achieve the Fund's objective. Furthermore, the Belt and Road vision is a long term strategic vision of the China government which may change over time. Any valid position taken by the Fund Manager at any one point in time to be aligned with the Belt and Road vision may no longer be aligned with in the future Belt and Road vision as China’s Belt and Road vision may change over time.
3. Risks of investing in companies related to the Belt and Road Initiative
– The Belt and Road Initiative is a new development strategy and does not have a proven history of success and viability.
– Certain securities markets of the countries in the Belt and Road Region may be considered to be emerging markets, and thus are subject to increased risks outlined in "Emerging markets risk" below.
– The Fund may be affected unfavourably by political developments, social instability, changes in government policies, and other political and economic developments in the countries in the Belt and Road Region.
– Investment in companies related to the Belt and Road Initiative may not be able to generate a stable cash flow, income or capital appreciation.
4. Risks relating to debt securities
-Credit risk: Investment in bonds, debt or other fixed income securities (including corporate and sovereign bonds) are subject to the risk that issuers do not make payments on interest and principal of such securities. An issuer suffering from an adverse change in its financial condition could lower the quality of a security leading to greater price volatility on that security. Securities which were investment grade at the time of acquisition may be downgraded. The risk of any such downgrading will vary over time. The Fund's investment policy does not specifically require the Fund to sell such securities if they should fall below investment grade. Besides, the Fund Manager may not be able to dispose of the debt instruments that are being downgraded. Investments in below investment grade securities carry a higher risk of default and therefore may adversely impact the Fund and/or the interests of investors.
-Credit ratings 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.
-Below investment grade and un-rated securities risk: The Fund may invest in high yield bonds/ non-investment grade bonds and un-rated bonds which involve substantial risk. High yield bonds/ non-investment grade bonds and un-rated bonds are regarded as being predominantly speculative as to the issuer's ability to make payments of principal and interest. Issuers of high yield bonds/ non-investment grade bonds and un-rated bonds may be highly leveraged, subject to lower liquidity and higher volatility and may not have available to them more traditional methods of financing. An economic recession may adversely affect an issuer's financial condition and the market value of high yield bonds/ non-investment grade bonds and un-rated bonds issued by such entity. High yield bonds/ non-investment grade bonds and un-rated bonds are generally subject to greater loss of principal and interest than high-rated bonds. As such, this may adversely impact the Fund and/or the interests of investors.
-Interest rate risk: The bonds or fixed income securities that the Fund invests in may fall in value if the interest rates change and this will adversely impact the net asset value of the Fund. In general, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise. Longer term debt securities are usually more sensitive to interest rate changes.
-Valuation risk: The value of debt securities may be subject to the risk of mispricing or improper valuation. Independent pricing information may not at all times be available and valuation in such circumstances may involve uncertainty and judgemental determination. If such valuations should prove to be incorrect, the net asset value of the Fund may be adversely affected.
5. Emerging markets risk
– Investment in emerging market countries may exhibit higher risk as the securities markets of emerging market countries are not as large as the more established securities markets and have substantially less trading volume.
– Investors should note the special considerations not typically associated with investment in more developed markets such as liquidity risk, currency risks / control, political and economic uncertainties, policy, legal or regulatory event affecting the relevant markets and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
6. Liquidity risk
The Fund may be adversely affected by a decrease in market liquidity for the securities in which it invests where some of the Fund's securities may become illiquid and the Fund may experience difficulties in selling securities at a fair price within a timely manner.
7. Risk associated with payment of dividends and/or fees and expenses out of capital
– Payment of dividends out of capital and / or effectively out of capital amounts to a return or withdrawal of part of an investor'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 in respect of such class after the distribution date.
– Investments in the Monthly Distribution-1 (MD1) are not an alternative to a savings account or fixed-interest paying investment. The amount of distributions paid by Monthly Distribution-1 (MD1) is unrelated to expected or past income or returns of the unit class or the Fund. The distribution can thus be higher or lower than the income and return that were effectively realized. Monthly Distribution-1 (MD1) will continue to distribute in periods that the Fund has negative returns or is making losses, which further reduces the net asset value of the Fund. In extreme circumstances, investors may not be able to get back the original investment amount.
– For Monthly Distribution-1 (MD1) classes that are currency hedged, the Fund may take into account the return driven by the interest rate differential between the currency in which the hedged MD1 unit class is denominated and the base currency of the Fund in determining the distribution to be paid. Investors should be aware of the uncertainty of relative interest rates which will have an impact on the return of the hedged MD1 class. The net asset value of the MD1 hedged unit classes may fluctuate and may significantly differ from other unit classes due to the fluctuation of the interest rate differential between the currency in which the hedged MD1 unit class is denominated and the base currency of the Fund, and may result 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. Investors in such classes may therefore be adversely affected.
– In addition, the amount of distributions for the Monthly Distribution-1 (MD1) will be fixed at the discretion of the Manager in terms of the relevant class currency and will not take into account the fluctuations in the exchange rate between the base currency and the relevant class currency subsequent to the determination of the fixed amount of distributions in terms of the relevant class currency.
8. Sovereign debt risk
The Fund's investments 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 Fund may suffer significant losses when there is a default of sovereign debt issuers.
9. Portfolio turnover risk
The Fund may engage in significant turnover of the underlying securities held. This may involve the Fund Manager selling a security or entering into the close out of a derivative position when it believes it is appropriate to do so, regardless of how long the Fund has held the instrument. This practice may be carried out on a continuous basis, where the Fund Manager believes it is in the best interests of investors. These activities increase the Fund's portfolio turnover and may increase the Fund's transaction costs. However, any potential costs will be considered as part of the investment decision to ensure it is in the best interests of the Fund.
10. Eurozone risk
The Fund may have significant investment exposure to the Eurozone or the Euro. In light of ongoing concerns on the sovereign debt risk of certain countries within the Eurozone, the Fund's investments in the region may be subject to higher volatility, liquidity, currency and default risks. Any adverse events such as credit downgrade of a sovereign or exit of European Union members from the Eurozone or other adverse economic, political, policy, foreign exchange, tax, legal or regulatory event affecting the Eurozone markets, may have a negative impact on the value of the Fund.
11. Derivatives and hedging risk
The Fund Manager will make use of derivative instruments for the purpose of currency and interest rate hedging. There is no assurance that the use of hedging strategies, techniques and derivative instruments will fully and effectively eliminate the risk exposure of the Fund. Hedging may become inefficient or ineffective. In adverse situations, the Fund may even suffer significant losses.
12. Hedged unit classes risk
Hedging strategies in connection with hedged unit classes may be entered into. There is no guarantee that hedging techniques will fully and effectively achieve their desired result and hedging may become inefficient or ineffective. Hedging strategies may also prevent investors from benefiting from an increase in the value of the Fund's base currency relative to the relevant class currency. This may have an adverse impact on the Fund and its investors.
13. RMB class(es) related risk
– For funds with base currency that is different from RMB, the value of the RMB denominated class(es) calculated using offshore RMB (CNH) will be subject to fluctuation.
– Investors will incur currency conversion costs when converting from the base currency of the Fund or other currencies into RMB and vice versa and may suffer losses in the event that RMB depreciates against the base currency of the Fund or such other currencies.
– Where the prices of the non-RMB denominated underlying investments and/or value of the base currency of the Fund rise or remain stable, investors may still incur losses if RMB appreciates against the currencies of the non-RMB denominated underlying investments and/or the base currency more than the increase in the value of the non-RMB denominated underlying investments and/or the base currency. Where the value of the non-RMB denominated underlying investments decreased, the value of investors' investments in RMB denominated class(es) may suffer additional losses.
– Investors of a hedged RMB class will have to bear the costs of hedging transactions which are reflected in the NAV of the units of the hedged RMB class, which may be significant depending on prevailing market conditions. If the counterparties of the instruments used for hedging purpose default, investors of the hedged RMB classes may be exposed to RMB currency exchange risk on an unhedged basis and may therefore suffer further losses.
14. Counterparty risk
The Fund will be exposed to credit risk on the counterparties with which it trades in relation to financial derivative instrument contracts (including foreign exchange currency contracts) that are not traded on a recognised exchange. Such instruments are not afforded the same protections as may apply to participants trading financial derivatives instruments on organised exchanges, such as the performance guarantee of an exchange clearing house and therefore the Fund will bear the risk of the counterparty's insolvency, bankruptcy or default or a delay in settlement due to a credit or liquidity problem affecting the counterparty.
15. Currency and foreign exchange risk
Underlying investments of the Fund may be denominated in currencies other than the base currency of the Fund. Also, a class of units may be designated in a currency other than the base currency of the Fund or the currency of its underlying investment. The net asset value of the Fund may be affected unfavourably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls.

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