Value Partners Greater China High Yield Income Fund P Acc HKD

惠理大中華高收益債券基金 P類 Acc 港元

KYG9319N1253

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.

Dealing Hours

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD4,000.00Min. Subscription

1.50%

HKD4,000.00Min. Subscription

HKD

HKD4,000.00Min. Subscription

HKD4,000.00

HKD4,000.00

Daily

16:30

2019-09-30

  • The fund has been suspended for further subscription since 2019-06-24.
*Not include dividends (If applicable)

Fund Performances (including dividend, if any)

1 mth
+0.25%
3 mth
+0.12%
6 mth
+0.82%
1 yr
+5.74%
3 yr
+17.25%
5 yr
+34.79%

Analytical Figures (3 years)

Annualized Return
+5.45%
Annualized Volatility
+4.56%
Sharpe Ratio
+0.78

Fund Information

Fund Houses
Value Partners Ltd.
Launch Date
2012-03-26
Fund Manager
Team managed
Manager Start Date
Team managed (Start Date : 2012-03-27)
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)
USD 6,783,651,050.3
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

HKD

HKD4,000.00Min. Subscription

HKD4,000.00

HKD4,000.00

Daily

16:30

2019-09-30

  • The fund has been suspended for further subscription since 2019-06-24.

Dividend Records

No Dividends

Investment Objective

The Fund aims to provide capital appreciation for investors. In addition, in respect of the Distribution Classes, the Fund also intends to pay monthly dividends equal to all or substantially all of the net income attributable to each of the Distribution Classes. Please note that there is neither a guarantee that such dividends will be made nor will there be a target level of dividend payout.

Nature and Extent of Risks

Investment involves risks. Please refer to the Explanatory Memorandum for details including the risk factors.
1. Investment risk
- 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. The income of the Fund and its Net Asset Value may be adversely affected. There is no guarantee of the repayment of principal.
2. Interest rates risks
- Investment in the Fund is subject to interest rates risks. In general, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise.
3. Debt securities issued by SPVs
- Investments in debt securities issued by SPVs may expose the Fund to additional risks such as the credit/default risk of both the SPV and the parent company or associated company (see “Credit risk” below) and risks relating to the enforceability of the guarantee issued by the parent company or associated company of such SPV.
- If the parent company or associated company defaults in any of its other debt obligations, this may trigger a cross-default which may then affect the ability of the parent company or associated company to meet its obligations under the guarantee. This may adversely affect the value of the debt securities issued by the SPV and guaranteed by its parent company or associated company.
- Investments in debt securities of a subordinated nature issued by SPVs will have a lower priority of claim in the event of the relevant issuer’s liquidation or bankruptcy as they rank behind holders of unsubordinated debt securities but before holders of equity securities. The Fund is therefore exposed to higher credit / insolvency risk of its counterparties as a holder of subordinated debt securities than as a holder of unsubordinated debt securities.
4. Credit risk
- The Fund is exposed to the credit or default risk of issuers of bonds or other debt securities that the Fund invests in. The issuers of such instruments may incur difficulties in making full and timely repayments of principal and interest, which may lead to a default and, ultimately, a fall in the value of the Fund. Some of the debt securities are offered on an unsecured basis without collateral. As a result, if the issuer becomes bankrupt, the Fund will become an unsecured creditor of such issuers.
5. Unrated or below investment grade and high yielding debt securities risk
- The Fund may significantly invest in high yielding securities which may be unrated or rated below investment grade. Such securities are generally subject to lower liquidity, higher volatility and greater risk of loss of principal and interest than high-rated debt securities.
6. Credit rating downgrading risk
- The credit rating of a debt instrument or its issuer may subsequently be downgraded. Credit ratings assigned by rating agencies are subject to limitations and do not guarantee the creditworthiness of the security and/or issuers at all times. In the event of such downgrading, the value of the Fund may be adversely affected. The Manager may or may not dispose of the securities that are being downgraded.
7. Sovereign debt risk
- The 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 Fund may suffer significant losses when there is a default of sovereign debt issuers.
8. 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.
9. Liquidity of Investment Portfolio
- The debt securities in the Greater China region 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. The bid and offer spreads of the price of such securities may be large and the Fund may incur significant trading costs.
- The debt securities in which the Fund invests (including debt securities issued by SPVs) may not be listed on a stock exchange or a securities market where trading is conducted on a regular basis. Even if the debt securities are listed, the market for such securities may be inactive and the trading volume may be low. If sizeable redemption requests are received, the Fund may need to liquidate its investments at a substantial discount in order to satisfy such requests and the Fund may suffer losses in trading such securities.
10. RMB denominated debt securities risks
- RMB is currently not freely convertible and is subject to exchange controls and restrictions.
- 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 will not depreciate. Any depreciation of the RMB could adversely affect the investors’ investments in the Fund. Although offshore RMB (“CNH”) and onshore CNY (“CNY”) are the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors.
- As the quantity of RMB denominated debt securities issued outside the PRC that are available to the Fund is currently limited, the Fund may not have exposure to RMB denominated debt securities as it intended.
- The “Dim Sum” bond (i.e. bonds issued outside of the PRC but denominated in RMB) market is still a relatively small market which is more susceptible to volatility and illiquidity. The operation of the “Dim Sum” bond market as well as new issuances could be disrupted causing a fall in the Net Asset Value of the Fund should there be any promulgation of new rules which limit or restrict the ability of issuers to raise RMB by way of bond issuances and/or reversal or suspension of the liberalisation of the offshore RMB
(CNH) market by the relevant regulator(s).
11. Risk relating to dividends paid out of capital
- The Manager may at its discretion pay dividend out of the capital of the Fund. In respect of the Distribution Classes, investors should note that payment of dividends out of capital amounts to a return or withdrawal of part of their original investment or from any capital gains attributable to the original investment. Any such distributions will generally result in an immediate reduction of the Net Asset Value per Participating Share of the Fund.
- The distribution amount and Net Asset Value of the hedged share classes may be adversely affected by differences in the interest rates of the reference currency of the hedged share classes and the Fund’s base currency (i.e. US dollars), 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 classes.
- The Manager may amend this policy subject to the SFC’s prior approval and by giving not less than one month’s prior notice to investors.
12. Dividend risk
- For the Distribution Classes, the Manager may determine if, and to what extent, dividends may be paid out of capital where the income/capital gain generated by the Fund is insufficient to pay a distribution declared by the Fund. However, there is neither a guarantee that such dividends will be made nor will there be a target level of dividend payout. A high distribution yield does not imply a positive or high return.
- The Manager currently does not intend to pay dividends in respect of the Accumulation Classes. Accordingly, an investment in the Accumulation Classes may not be suitable for investors seeking income returns for financial or tax planning purposes.
13. Geographical concentration risk
- The Fund’s investments are concentrated in the Greater China region. The value of the Fund may be more volatile than that of a fund having a more diverse portfolio of investments.
- The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the Greater China region.
- The Fund invests in the China and Taiwan markets which may involve increased risks and special considerations not typically associated with investment in more developed economies or markets, such as liquidity risks, currency risks/ control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
14. China tax considerations
- There are risks and uncertainties associated with the current PRC tax laws, regulations and practice in respect of the Fund’s investments in RMB denominated debt securities issued by PRC issuers (which may have retrospective effect). Any increased tax liabilities on the Fund may adversely affect the Fund’s value.
- Currently, based on professional and independent advice from tax advisor, the Manager will not make any tax provisions for PRC taxes in respect of the Fund. In case of any actual tax liabilities imposed on the Fund which will be debited from the Fund’s assets, the Fund’s Net Asset Value will be adversely affected. Depending on the timing of their subscriptions and/or redemptions, investors may be disadvantaged.
15. Risks of investing in convertible bonds
- Convertible bonds are a hybrid between debt and equity, permitting holders to convert into shares in the company issuing the bond at a specified future date. As such, convertibles will be exposed to equity movement and greater volatility than straight bond investments. Investments in convertible bonds are subject to the same interest rate risk, credit risk, liquidity risk and prepayment risk associated with comparable straight bond investments.
16. Foreign exchange risk
- The Fund is denominated in US dollars but may issue classes designated in a currency other than its base currency. In addition, underlying investments of the Fund may be denominated in a currency other than its base currency. The NAV of the Fund may therefore be affected unfavorably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls.
17. Risks relating to currency hedging and the currency hedged classes (“Currency Hedged Classes”)
- The Manager may (but is not obliged to) enter into certain currency related transactions in order to hedge the currency exposure of the assets of the Fund attributable to a particular class into the class currency of the relevant class. Investors in the Currency Hedged Classes may have exposure to currencies other than the currency of that Currency Hedged Class. Investors should also be aware that the hedging strategy may substantially limit the benefits of any potential increase in value of a Currency Hedged Class expressed in the class currency, if the Currency Hedged Class’ denominating currency falls against the base currency of the Fund.
- The precise hedging strategy applied to a particular Currency Hedged Class may vary. In addition, there is no guarantee that the desired hedging instruments will be available or hedging strategy will achieve its desired result. In such circumstances, investors of the Currency Hedged Class may still be subject to the currency exchange risk on an unhedged basis.
- If the counterparties of the instruments used for hedging purposes default, investors of the Currency Hedged Classes may be exposed to the currency exchange risk on an unhedged basis and may therefore suffer further losses.

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