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BlackRock Global Funds - Dynamic High Income Fund A2 USD

貝萊德全球基金 - 動力高息基金 A2 USD

LU1564329032

Risk Rating: Level 3

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

1.50%

HKD4,000.00Min. Subscription

USD

HKD4,000.00Min. Subscription

HKD4,000.00

HKD4,000.00

Daily

14:00

2020-10-25

*Not include dividends (If applicable)

Fund Performances (including dividend, if any)

1 mth
+2.11%
3 mth
+1.43%
6 mth
+11.88%
1 yr
-0.93%
3 yr
-
5 yr
-

Analytical Figures (3 years)

Annualized Return
-
Annualized Volatility
-
Sharpe Ratio
-

Fund Information

Fund Houses
BlackRock Asset Management North Asia Limited
Launch Date
2018-02-05
Fund Manager
Michael Fredericks
Justin Christofel
Alex Shingler
Manager Start Date
2018-02-06
2018-02-06
2018-02-06
Geographical Focus
Global
Asset Class/ Sector
Balanced - Equity biased
Risk Rating
Risk Level 3

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 2020-09-29)
USD 3,117,825,911.771
Management Fee
1.50%
Latest Dividend
N.A.

Sector Leaders

    No Funds

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD4,000.00Min. Subscription

1.50%

HKD4,000.00Min. Subscription

USD

HKD4,000.00Min. Subscription

HKD4,000.00

HKD4,000.00

Daily

14:00

2020-10-25

Dividend Records

No Dividends

Investment Objective

To follow a flexible asset allocation policy that seeks to provide a high level of income. In order to generate high levels of income the Fund will seek diversified income sources across a variety of asset classes, investing at least 70% of the Fund’s assets in income producing assets such as fixed income securities (which may from time to time comprise up to 100% of the Fund’s net asset value and include the full range of fixed income securities, which may be fixed and floating and may be investment grade, non-investment grade or unrated*, such as bonds, bills and notes of all maturities, money market instruments, certificates of deposit and commercial paper, issued by companies, governments, government agencies or multinational/supra-national organisations, as well as asset-backed securities (“ABS”), mortgage-backed securities (“MBS”) and contingent convertible bonds), equities (which may from time to time comprise up to 100% of the Fund’s net asset value and include the full range of equity securities, such as preference shares and equity-related securities), units of collective investment schemes, covered call options and cash deposits.

Nature and Extent of Risks

Investment involves risks. Please refer to the offering document for details including the risk factors.
1. Investment Risks
The Fund is an investment fund. The Fund’s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Fund may suffer losses. There is no guarantee of the repayment of principal.
The performance of the Fund is partially dependent on the success of the asset allocation strategy employed by the Fund. 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.
2. Risk relating to Dynamic Asset Allocation Strategy
The investments of the Fund may be periodically rebalanced and therefore the Fund may incur greater transaction costs than a fund with static allocation strategy.
3. Risks associated with Fixed Income Securities
- Credit/counterparty risk: The Fund is exposed to the credit/default risk of issuers of the debt securities that the Fund may invest in. In the event of bankruptcy or default of an issuer, the Fund may experience losses and incur costs.
- Interest rate risk: Investment in the Fund is subject to interest rate risk. In general, the prices of fixed income securities rise when interest rates fall, whilst their prices fall when interest rates rise.
- Volatility and liquidity risk: The debt securities in certain countries and regions may be subject to higher volatility and lower liquidity compared to more developed markets. The prices of securities traded in such markets may be subject to fluctuations.
- Downgrading risk: The actual or perceived downgrading of a rated debt security or its issuer could decrease its value and liquidity, and may have an adverse impact on the Fund. The Fund may or may not be able to dispose of the debt securities that are being downgraded.
- Non-investment grade/unrated bonds risk: The Fund may invest in debt securities rated below investment grade or unrated.
Investment in non-investment grade or unrated bonds, including sovereign debts, may subject the Fund to higher credit/default risks. If the issuer of the non-investment grade or unrated bond defaults, or if the non-investment grade or unrated bonds fall in value, investors may suffer significant losses.
Non-investment grade or unrated bonds tend to be less liquid and more volatile, and the market for these bonds is generally less liquid and more volatile than higher rated fixed-income securities. Adverse events or market conditions may have a larger negative impact on the prices of non-investment grade or unrated bonds than on higher rated fixed-income securities. Such securities are also subject to a greater risk of loss of principal and interest than higher rated fixed-income securities.
- Sovereign debt risk: Investment in bonds issued or guaranteed by governments or authorities may involve political, social, economic, default, or other risks, which may in turn have an adverse impact on the Fund. Due to these factors, the sovereign issuers may not be able or willing to repay the principal and/or interest when due.
Holders of defaulting sovereign debt may be requested to participate in the restructuring of such debt. In addition, there may be limited legal recourses available against the sovereign issuer in case of failure of or delay in repayment.
- Valuation risk: 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.
- 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.
4. Risks associated with Equities
- Equity market risk: The values of equities fluctuate daily and the Fund investing in equities is subject to general market risks and could incur significant losses. The price of equities can be influenced by many factors at the individual company level, as well as by broader economic and political developments, including changes in investment sentiment, trends in economic growth, inflation and interest rates, issuer-specific factors, corporate earnings reports, demographic trends and catastrophic events.
5. Risks associated with Preference Shares
Preference shareholders do not have the same ownership rights in the company as common? shareholders. The lack of voting rights means the company is not beholden to preferred shareholders the way it is to equity shareholders. Although preference shares have a fixed dividend that must be paid before any dividends can be paid to common shareholders, such fixed dividend may become less of a bargain to the Fund when interest rates rise. Also, even when the earnings of the relevant company are high, the Fund’s investment in preference shares may not give the Fund additional return due to the fixed dividend. The value of the Fund may therefore be adversely affected.
6. Risks associated with Investments in ABS and MBS
The obligations associated with these securities may be subject to greater credit, liquidity and interest rate risk compared to other fixed income securities such as government issued bonds.
ABS and MBS are often exposed to extension risk (where obligations in the underlying assets are not paid on time) and prepayment risks (where obligations on the underlying assets are paid earlier than expected). These risks may have a substantial impact on the timing and size of the cashflows paid by the securities and may negatively impact the returns of the securities.
7. Capital Growth Risks
Risks associated with Income-generating Investment Strategy - The Fund pursues an investment strategy in order to generate income which may reduce the potential for capital growth and future income of the Fund.
Risks associated with Fees and/or Dividends Paid Out of Capital - Any distributions involving payment of dividends out of capital (Classes 6 and 8) or payment of dividends out of gross income (i.e. payment of fees and expenses out of capital) (Classes 6 and 8) amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Whilst all dividends paid result in an immediate reduction of the net asset value per share, this share class may pay larger dividends (i.e. by paying dividends out of capital or gross income), which may therefore result in a larger reduction in the net asset value per share.
Payment of Dividends From Implied Interest Rate Differentials - For Distributing (R) Shares (Class 8), any dividends payable may include interest rate differentials arising from share class currency hedging gains/losses which may increase/ decrease dividends paid. Shareholders of such Distributing (R) Shares will forego capital gains as any currency hedging gains are distributed rather than added to capital. Conversely, currency hedging losses may decrease the dividends paid, and in extreme cases may deduct from capital.
8. Currency Risks
The Fund may invest in assets denominated in a currency 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. Changes in exchange rates between such currency and the base currency and changes in exchange rate controls may adversely affect the value of the Fund’s assets.
The Investment Adviser(s) may utilise techniques and instruments (e.g. currency overlays) in relation to currencies other than the base currency with the aim of generating positive returns. Any active currency management techniques implemented by the Fund may not be correlated with the underlying securities held by the Fund. As a result, the Fund may suffer significant losses even if there is no loss to the value of the underlying securities held by the Fund.
9. Emerging Market Risks
Investment in emerging markets may be subject to a higher than average volatility than more developed markets due to greater political, tax, economic, social, currency control and foreign exchange risks.
The size and trading volume of securities markets in emerging markets may be substantially smaller than developed markets. This may subject the Fund to higher liquidity and volatility risks.
Custody and registration of assets in emerging markets may be less reliable than in developed markets, which may subject the Fund to higher settlement risk.
The Fund may be subject to higher regulatory risks due to low level of regulation, enforcement of regulations and monitoring of investors’ activities in emerging markets.
10. Derivatives Risks
Risks associated with derivatives include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The leverage element/component of a derivative can result in a loss significantly greater than the amount invested in the derivative by the Fund. In an adverse situation, if the use of derivatives for hedging and efficient portfolio management becomes ineffective, the Fund may suffer significant losses.
In addition, the Fund may invest in covered call options. The Fund as a seller of a covered call option gives up the opportunity for gain on the underlying instrument in respect of the option above the exercise price of the option. The value of the Fund may be adversely affected as a result.
11. Securities Lending Risks
When engaging in securities lending, the Fund will have a credit risk exposure to the counterparties to any securities lending contract. Fund investments can be lent to counterparties over a period of time. A default by the counterparty combined with a fall in the value of the collateral below that of the value of the securities lent may result in a reduction in the value of the Fund.
12. Currency conversion risk for Renminbi (“RMB”) denominated Classes
RMB is currently not freely convertible and is subject to exchange controls and restrictions. The
Fund offers RMB denominated share classes. Subscriptions and redemptions for the Fund may
involve conversion of currency. Currency conversion will be conducted at the applicable exchange
rate and subject to the applicable spread.
Non-RMB based investors are exposed to foreign exchange risk and there is no guarantee that the
value of RMB against the investors’ home currency will not depreciate. Any depreciation of RMB
could adversely affect the value of investors’ investment in the RMB denominated share classes.
Under exceptional circumstances, payment of realisation proceeds and/or dividend payment (if any)
in RMB may be delayed due to the exchange controls and restrictions applicable to RMB.
RMB is traded in both the onshore and offshore markets. While both onshore RMB (“CNY”) and
offshore RMB (“CNH”) represent the same currency, they are traded in different and separate
markets which operate independently. Therefore, CNY and CNH do not necessarily have the same
exchange rate and their movement may not be in the same direction. When converting the base
currency of the Fund to RMB for the purposes of calculating the net asset value of a share class
with a RMB reference currency, the Management Company will apply the CNH rate. Any divergence
between CNH and CNY may adversely impact investors.
13. Foreign Investments Restrictions Risks
Some countries prohibit or restrict investment, or the repatriation of income, capital or the proceeds from sale of securities. The Fund may incur higher costs investing in these countries. Such restrictions may delay the investment or repatriation of capital of the Fund.
14. Contingent Convertible Bonds Risks
A contingent convertible bond may be converted into the issuer’s equity or be partly or wholly written off (a “write-down”) if a pre-specified trigger event occurs. Trigger levels differ and the exposure to conversion risk depends on the distance of the capital ratio to the trigger level. In case of conversion into equity, the Fund might be forced to sell these new equity shares. Such a forced sale might have an effect on market liquidity as there may not be sufficient demand for these shares. In the event of a write-down, which may be either temporary or permanent, the Fund may suffer a full, partial or staggered loss of the value of its investment. It might be difficult for the Fund to anticipate the trigger events or how the securities will behave upon conversion.
Investment in contingent convertible bonds may suffer a loss of capital. Further, contingent convertible bonds are usually subordinated to comparable non-convertible securities, and thus are subject to higher risks than other debt securities. Coupon payments on certain contingent convertible bonds may be entirely discretionary and may be cancelled by the issuer, in which event the Fund may experience losses. Investment in contingent convertible bonds may also lead to increased industry concentration risk and thus counterparty risk as such securities are issued by a limited number of banks.