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 5.5%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
Pro-active 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

  • To tap on the potential of Asian bonds, which is on its way to become one of the largest bond markets globally (US$1 trillion market). China’s increasingly dominant role is reflected by an over 60% share in new issuance
  • Asian bonds 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 – Synonym for strong growth and returns
Source: JP Morgan (for market value), Bloomberg (for index performance), as at 31 December 2019. Performance is represented by J.P. Morgan Asia Credit Index Core Index.
Create best income and total return opportunities

  • Asian investment grade bonds have low correlation to the equity market while delivering relatively stable yields and performance. Compared to developed countries, Asian high yield bonds have wider credit spreads, higher growth potential and can generate alpha for the portfolio
  • By nimbly switching between high yield and investment grade bonds, the Fund pursues attractive total returns through active management
  • Targeted monthly dividend of around 5.5%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
Asian bonds offer more attractive valuations
Source: Value Partners, Bloomberg, as at 31 December 2019
Compelling risk-reward profile

  • The Fund strives for a yield above the J.P. Morgan Asia Credit Index (JACI), while keeping the portfolio’s average credit rating at investment grade
  • With stringent management, the portfolio generated a higher return but with lower volatility compared to the peer group average2
  • This is achieved through a flexible allocation approach across different Asian fixed income markets and a rigorous fundamental-based credit selection process
Seeking better risk-adjusted return
Source: Morningstar, as at 31 December 2019
*Sharpe ratio is the measure of risk-adjusted return of a financial portfolio. A portfolio with a higher Sharpe ratio is considered superior relative to its peers.
Deploy in key Asian bond opportunities

  • Cash remains unattractive as global interest rates are low with major central banks in Europe and Japan implementing negative interest rate policies. Asian bonds meanwhile provide attractive value and yields
  • Asian emerging markets still have room for future monetary stimulus as interest rates are still relatively high. Monetary policy is expected to be deployed to promote regional economic growth and to support Asian bond prices in the next year or two
  • Concurrently, the Fund can also shift strategic allocation to opportunities that arise outside Asia, such as in the United Kingdom or Denmark to reduce volatility and diversification purposes. This is capped at a limit of 30%
Investment highlights in Asia
Value Partners’ fixed income investment capability
Value Partners’ fixed income team manages about US$6.6 billion5 in assets. Dedicated to uncover hidden investment value, 13 seasoned investment experts all have in-depth knowledge and proven investment experience in Asian bond markets as well as their specialized sectors.

With Value Partners’ rich research resources in Asia, rigorous credit analysis and prudent investment process, our award-winning fixed income team and products are highly recognized.

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

Hotline: +852 2143 0608
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All fund information is quoted as of 31 December 2019 (unless otherwise stated). Source: HSBC Institutional Trust Services (Asia) Limited. Performance in USD, NAV to NAV, is net of fees and with dividends reinvested.
1. For Class A USD MDis, as at 28 February 2020. 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. 2. Source: Morningstar. Peer fund group refers to Morningstar Asian bond fund category, based on the period between 9 April 2018 and 31 December 2019. 3. Annualized return and volatility are calculated from inception. Volatility is a measure of the theoretical risk in terms of standard deviation; in general, the lower the number, the less risky the investment, and vice versa. Value Partners Asian Total Return Bond Fund (Class A) was launched on 9 April 2018. Calendar year return: 2018 (since inception): -0.1% ; 2019: +12.6%. 4. Source: Bloomberg, as at December 2019. 5. As at 31 December 2019. 6. Announced in May 2019, the award recognizes fund managers who have consistently generated outperformance for their clients over the past five years, demonstrating superior asset selection and allocation skills. 7. The house awards recognize asset managers for their excellence in a particular investment strategy. The award reflects performance up to 30 September 2018. 8. Based on the number of votes won by Astute Investors of the Top Investment Houses. All votes are subject to a weighting methodology.
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.
Investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors may not get back the full amount invested. Please refer to the explanatory memorandum. The website has not been reviewed by the Securities and Futures Commission of Hong Kong. Issuer: Value Partners Hong Kong Limited.