Important Information

      I. Value Partners All China Bond Fund (the "Fund") primarily invests in fixed income securities issued by any central and/or local governments, government agencies, supranationals, banks or companies which are domiciled in the People's Republic of China ("PRC") or which exercise the predominant part of their business or economic activities in the PRC.
      II. The Fund is subject to concentration risk and emerging market risk as a result of the concentration of its investments in the PRC markets. The Fund may be more volatile than a broadly based fund as it is more susceptible to fluctuation in value resulting from adverse economic or political conditions in the PRC markets.
      III. The Fund may also invest in PRC interbank bond market and is therefore subject to regulatory risks and various risks such as volatility risk, liquidity risk, settlement and counterparty risk. The relevant rules and regulations on investment in the PRC interbank bond market are subject to change and may adversely impact the Fund.
      IV. The Fund may invest in securities which may be unrated or below investment grade and financial derivative instruments. The Fund is therefore exposed to additional risks, including volatility risk, valuation risk, leverage risk, liquidity risk, correlation risk, counterparty/credit risk, legal risk, over-the-counter transaction risk and settlement risk.
      V. In respect of the distribution units for the Fund, the Manager currently intends to make monthly dividend distribution. However, the distribution rate is not guaranteed. Distribution yield is not indicative of the return of the Fund. Distribution may be paid from capital of the Fund. Investors should note that where the payment of distributions are paid out of capital, this represents and amounts to a return or withdrawal of part of the amount you originally invested or capital gains attributable to that and may result in an immediate decrease of the net asset value per unit of the Fund.
      VI. You should not make investment decision on the basis of this marketing material alone. Please read the explanatory memorandum for details and risk factors.
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Gateway to the world's
second-largest bond market1

Fully capture the growth opportunities of China's bond market
Finding yield in low rate environments with
target monthly payouts
of around 6%2p.a.

(Aims to make monthly dividend distributions. Actual dividend payouts are not guaranteed and dividends may be paid out of the capital of the Fund.)
Please refer to Important Information V
28 years of investment experience in China's markets
One of the first to cover both the onshore and offshore market
Why Value Partners All China Bond Fund?
Unlocking investment opportunities in the second-largest market in the world1

  • China bond market is currently the second-largest in the world1 to the U.S, with 4Q 2020 seeing it valued at around USD31.4 trillion
  • China's GDP growth is expected to rank number one in 2030
The World’s top bond markets

Source: BIS, Bloomberg Finance L.P., IMF, as of 4Q20 (Light), CCDC, CEIC, as at March 2021 (Right)

Foreign investors flock to China's capital markets

  • Since 2002, the Chinese government has implemented numerous reforms aimed at attracting foreign investment. The foreign ownership ratio in China's bond market is only 4%3. A potentially sizable inflow of foreign money is expected in the years to come

Source: Wind, bloomberg, FTSE Russell, as at March 2021

Better risk-adjusted returns

  • The China onshore bond market behaves quite differently from the rest of the world. It exhibits lower volatility and has low levels of correlation with other global risk assets, which should provide diversification in investor's portfolio
  • The onshore bonds offer more attractive risk-adjusted return compared to other bonds
Risk-adjusted return and correlation*

Source: Bloomberg Finance L.P., as at 30 June 2021
*Risk-adjusted return is annualized returns from 31 December 2004 to 30 June 2021, correlation data uses returns over the same period

360° investing in both onshore and offshore Chinese bonds

  • Actively screening and selecting a combination of fixed income securities, the Fund invests in onshore and offshore Chinese bonds to achieve lower portfolio volatility
  • Our bottom-up approach enables us to have flexibility in our sector, rating, and portfolio duration allocations
Capture opportunities in China’s onshore and offshore bond markets

The above reference portfolio is for illustrative purposes only, and the actual allocation may vary.
Source: Value Partners, as at August 2021

For more details, please contact your bank or investment consultant. You may also contact our Fund Investor Services Team.

Hotline: +852 2143 0608
Other fund in focus:
Related investment insights:
1. Source: Wind, as at December 2020. 2. Expected dividend amount (NAV) x 12. The manager intends to declare and pay monthly dividends equal to all or substantially all of the net income attributable to each of the Distribution Classes. However, there is neither a guarantee that such dividends will be made nor will there be a target level of dividend payout. No dividends will be paid with respect to the Accumulation Classes. Distribution may be paid from capital of the Fund. Investors should note that where the payment of distributions are paid out of capital, this represents and amounts to a return or withdrawal of part of the amount that have been originally invested or capital gains attributable to that and may result in an immediate decrease in the value of units. Please refer to the Explanatory Memorandum for further details including the distribution policy. Investors should note that yield figures are estimated and for reference only and do not represent the performance of the Fund, and that there is no guarantee as to the actual frequency and/or amount of dividend payments. 3. Source: CCDC, CEOC, as at March 2021.

The views expressed are the views of Value Partners Hong Kong Limited only and are subject to change based on market and other conditions. The information provided does not constitute investment advice and it should not be relied on as such. All materials have been obtained from sources believed to be reliable, but its accuracy is not guaranteed. This material contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Investors should note investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should read the explanatory memorandum for details and risk factors in particular those associated with investment in emerging markets. Investors should seek advice from a financial adviser before making any investment. In the event that you choose not to do so, you should consider whether the investment selected is suitable for you. This material has not been reviewed by the Securities and Futures Commission of Hong Kong. Issuer: Value Partners Hong Kong Limited.