BNP Paribas Funds Global High Yield Bond Classic Cap EUR
法巴全球高收益債券基金經典 經典 Cap 歐元
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.
As low as 0.5 %
Derivatives knowledge not required
- 1 mth
- 3 mth
- 6 mth
- 1 yr
- 3 yr
- 5 yr
As low as 0.5 %
Derivatives knowledge not required
To increase the value of its assets over the medium term by investing primarily in high yield bonds.
This sub-fund invests at least 2/3 of its assets in bond or other similar securities (such as floaters) that are rated below Baa3 (Moody's) or BBB- (S&P) (i.e. below investment grade) and denominated in various currencies throughout the world and in financial derivative instruments on this type of asset.
The remaining portion, namely a maximum of 1/3 of its assets, may be invested in any other securities, money market instruments, financial derivative instruments or cash, and up to 10% of its assets may be invested in collective investment schemes.
Investment involves risks. Please refer to the offering document for details including the risk factors.
1. Risk in connection with Investments in Non-Investment Grade and/or Unrated Debt Securities
The sub-fund may invest in non-investment grade and/or unrated debt securities. Investing in noninvestment grade and/or unrated debt securities may subject the sub-fund to higher credit risk/risk of default than investment grade debt securities. The sub-fund may be exposed to significant losses if the issuers of securities of the sub-fund default payments. The market of non-investment grade and/or unrated debt securities may be less active, making it more difficult to sell the securities. Valuation of such securities is more difficult and thus the sub-fund’s price may be more volatile.
2. Interest Rate Risk
The value of an investment may be affected by interest rate fluctuations. Interest rates may be influenced by several elements or events, such as monetary policy, the discount rate, inflation, etc. An increase in interest rates may result in a decrease in the value of investments in bonds and debt instruments and the value of investments of the sub-fund may go down.
3. Credit Risk
The ability of bond issuer to honour its commitments depends on the financial condition of the issuer. An adverse change in the financial condition of the issuer could lower the quality of the bonds, leading to greater price volatility of the bonds. The sub-fund may subject to the risk that the bond issuer not making payment on interest and principal of the bonds, causing the value of the investment to go down.
In the event of the default of bond issuer, the sub-fund may experience both delays in liquidating the bonds and losses including a decline in value of the bonds during the period when the sub-fund seeks to enforce its rights.
Downgrades of a rating of bond issue or issuer may lead to a drop in the value of bonds in which the subfund has invested. Such bonds may have less liquidity, making it more difficult to sell and their values may be more volatile.
4. Counterparty Risk
This risk is associated with the ability of a counterparty in a financial transaction to fulfil its commitments like payment, delivery and reimbursement. The sub-fund may be exposed to significant losses in the event of a counterparty default.
5. Risk in connection with transactions entered for hedging purpose
The sub-fund will enter into transactions to hedge its non-EURO exposure. However, there is a possibility that hedging may not be successful or does not work and the sub-fund’s value may be adversely affected.
6. Risk in connection with Investments in Sovereign Debt
The sub-fund may invest in sovereign debt. Investment in sovereign debt issued or guaranteed by governments or governmental entities largely in-debt involves a higher degree of risk. The governmental entity that controls the repayment of sovereign debt may not be able or willing to repay the principal and/or interest when due in accordance with the terms of such debt. The value of investments of the subfund may be adversely affected.
7. Risk related to Investments in Some Countries
Investments in some countries (China, India, Indonesia, Japan, Saudi Arabia and Thailand) involve risks linked to the restrictions imposed on foreign investors and counterparties, higher market volatility and the risk of lack of liquidity. 8. Emerging Market Risk
The sub-fund may invest in emerging markets (examples of emerging countries include China, India, Indonesia, Korea, Chile, Hungary, Mexico and Poland etc.). Investing in emerging markets is likely to be subject to a higher than average volatility, less liquidity and greater sensitivity than investing in more developed markets due to, among other factors, greater uncertainty, greater political, tax, economic, social, foreign exchange, liquidity and regulatory risks. The price fluctuations of the investments are often amplified in the short term and the value of investments of the sub-fund may go down.
9. Risk relating to repurchase agreements
In the event of the failure of the counterparty with which collateral has been placed, the sub-fund may suffer loss as there may be delays in recovering collateral placed out or the cash originally received may be less than the collateral placed with the counterparty due to inaccurate pricing of the collateral or market movements.
10. Risk relating to reverse repurchase agreements
In the event of the failure of the counterparty with which collateral has been placed, the sub-fund may suffer loss as there may be delays in recovering cash placed out or difficulty in realising the collateral or proceeds from the sale of the collateral may be less than the cash placed with the counterparty due to inaccurate pricing of the collateral or market movements.
11. Risk associated with investments in financial derivative instruments
Risk associated with financial derivative instruments include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The leverage element/component of a financial derivative instrument can result in a loss significantly greater than the amount invested in the financial derivative instruments by the sub-fund. Exposure to financial derivative instruments may lead to a high risk of significant loss by the sub-fund.
12. Liquidity Risk
Investments made by the sub-fund may become illiquid. It may not be possible to sell or buy these investments quickly enough to prevent or minimize a loss in the sub-fund.
13. Currency Exchange Risk
The sub-fund may hold assets denominated in currencies that differ from the base currency, and may be affected by exchange rate fluctuations between the base currency and the other currencies and by changes in exchange rate controls. A depreciation of the denomination currency will lead to a depreciation in the exchange value of the security. When the manager is willing to hedge the currency exchange risk of a transaction, there is no guarantee that such operation will be completely effective and the sub-fund’s value may be adversely affected.
14. Operational & Custody Risk
Some markets are less regulated than most of the international markets; hence, the services related to custody and liquidation for the sub-fund on such markets could be more risky. In the event of a custodian default, the sub-fund may suffer a delay in recovering its assets, pending the resolution of the relevant default or bankruptcy proceedings.
15. Risk in connection with Dividend Payment
The Management Company may at its discretion pay dividends out of the capital of the sub-fund. Payment of dividends 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 distributions involving payment of dividends out of the sub-fund’s capital may result in an immediate reduction of the net asset value per share. The Management Company may amend the dividend policy subject to the SFC’s prior approval and by giving not less than one month’s notice to investors.
16. Investment Risk
When investing in a fund, there is a risk that the final outcome may deviate from the initial expectations. The sub-fund’s investment portfolio may fall in value and therefore may suffer losses. In addition, there is no guarantee of principal repayment.