Important Information

      I. Value Partners Asian Total Return Bond Fund (the “Fund”) primarily invests in fixed income securities issued by any Asia Pacific governments, government agencies, supranationals, banks or companies which derive substantial revenue from or have significant business or economic activities in Asia Pacific or are denominated in any Asia Pacific currency.
      II. The Fund primarily invests in the Asia Pacific markets and therefore is subject to emerging market and concentration risks. Generally, investments in emerging markets are more volatile than investments in developed markets due to additional risks relating to political, social, economic and regulatory uncertainty. Adverse development in such region may affect the value of the underlying securities in which the Fund invests.
      III. The Fund may also invest in PRC interbank bond market via Bond Connect 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 via Bond Connect are subject to change and may adversely impact the Fund.
      IV. The Fund may invest in high yielding 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 shares 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 share 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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Total return strategy
to fully capture the growth potential of Asian bonds
Provide share classes with monthly payouts of around
4.9%1 p.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
Proactive asset-allocation model
that nimbly switches between High Yield and Investment Grade in pursuit of the best returns
Why invest in Value Partners Asian Total Return Bond Fund?
Experience Asian bonds' premium all-weather returns

  • Tap into the potential of the Asian bond market, which is one of the largest global fixed income markets in the world (over US$1.2 trillion market size in 2020). China’s increasingly dominant role is reflected in over 50% share in new issuance
  • Asian bonds have consistently delivered strong returns over the past 10 years. The strength of the market is underpinned by a robust regional economy, which grew faster than most developed markets
Asia's credit market – A synonym for strong growth and returns

Source: JP Morgan (for market value), Bloomberg (for index performance), as at 31 December 2020. Performance is represented by J.P. Morgan Asia Credit Index Core Index.

Create the best income and total return opportunities

  • While delivering relatively stable yields, Asian investment grade bonds have a low correlation to the equity market. Compared to developed countries, Asian high yield bonds have wider credit spreads, higher growth potential, and can generate alpha for the portfolio
Asian bonds offer more attractive value

Source: Value Partners, BofA Merrill Lynch Research, as at 30 September 2021

Better risk-adjusted returns

  • The relatively short duration of Asian high yield bonds is less sensitive to interest rates and able to reduce portfolio volatility
  • Asian high yield bonds offer attractive risk-adjusted return compared to other credit asset classes
Duration measures interest rate sensitivity

Source: Bloomberg, as at 30 September 2021. Asian HY Bonds: ICE BofA Asian Dollar High Yield Corporate Index, U.S. HY Bonds: ICE BofA US High Yield Index, Asian IG Bonds: ICE BofA Asian Dollar Investment Grade Index, U.S. IG Bonds: ICE BofA US Corporate & Government Index


Learn more about Value Partners Asian Total Return Bond Fund:
For more details, please contact your bank or investment consultant. You may also contact our Fund Investor Services Team.

Hotline: +852 2143 0608
Email: hkenquiry@vp.com.hk
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Related investment insights:
1. For Class A USD MDis, as at 30 September 2021. 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. Annualized yield of MDis Class is calculated as follows: (Latest dividend amount/NAV as at ex-dividend date) x 12. 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. As the risk of default increases disproportionately as a bond’s rating decreases, the simple weighted average of credit ratings is not a statistical measurement of the portfolio’s default risk.
The views expressed are the views of Value Partners 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. The website has not been reviewed by the Securities and Futures Commission of Hong Kong. Issuer: Value Partners Hong Kong Limited.