Important Information

  1. BOCHK All Weather Asian High Yield Bond Fund (the "Sub-Fund") is a Sub-Fund of BOCHK Wealth Creation Series.
  2. The Sub-Fund is to generate long-term capital growth and income by investing primarily in high yield fixed income securities issued by governments, government agencies, supra-nationals, banks or companies which are domiciled in or derive revenue from or have business or economic activities in Asia or are denominated in any Asian currencies, as well as deposits with the aforementioned banks or financial institutions.
  3. Investment involves risks. The Sub-Fund involves significant risks including but not limited to market risk, risks associated with debt securities rated below investment/recognized grade or unrated, general risks relating to debt securities (including but not limited to credit risk, interest rate risk, volatility and liquidity risk, downgrading risk, sovereign debt risk, valuation risk, risk related to credit ratings, credit rating agency risk, and “Dim Sum” bond market risks), concentration risk, emerging markets risk, currency risk, risks of investing in convertible bonds, risks associated with investments in debt instruments with loss-absorption features (LAP), risks associated with distribution out of capital, risks relating to hedging and the hedged classes, RMB currency risk/risks relating to RMB denominated securities, etc. Past performance is not indicative of future performance. The value of the Sub-Fund can be volatile. Investors may not get back the full amount of capital invested or may suffer significant loss.
  4. The Manager may at its discretion pay distribution out of, or effectively out of, capital of the Sub-Fund. Investors should note that the payment of distributions out of, or effective out of, capital represents a return or withdrawal of part of the amount the investors originally invested or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of, or effectively out of, capital of the Sub-Fund may result in an immediate reduction of the net asset value of the relevant classes of units.
  5. Investors should not solely rely on this website to make any investment decision. Please refer to the Explanatory Memorandum and the relevant appendix in detail (including the full text of risk factors stated therein) about the Sub-Fund. If you have any questions about the information of this website, please seek independent professional advice.

Investment Objectives

The investment objective of the Sub-Fund is to generate long-term capital growth and income by investing primarily in high yield fixed income securities issued by governments, government agencies, supra-nationals, banks or companies which are domiciled in or derive revenue from or have business or economic activities in Asia or are denominated in any Asian currencies, as well as deposits with the aforementioned banks or financial institutions.

Fund Information

Fund Manager BOCHK Asset Management Limited
Fund Size(Million) USD 7.94 Million (As of 30 April 2024)
Launch Date 29 June 2020
Base Currency USD
Dealing Frequency Daily
NAV calculation frequency Daily
Dividend Distribution* Aim to pay dividend on a monthly basis. Dividends are not guaranteed and
may be paid out of capital Refer to Important Information 4.
Subscription Fee Up to 3%
Redemption Fee** Nil
Management Fee** 1.25% p.a.
Class Class A1
(USD)
Class A2
(HKD)
Class A4
(AUD-H)
Class A7
(GBP-H)
Class A9
(RMB-H)
Class A10
(EUR-H)
 
 
Minimum Investment (Initial) USD
1,000
HKD
10,000
AUD
1,000
GBP
1,000
RMB
10,000
EUR
1,000
 
 
Minimum Investment (Additional) USD
1,000
HKD
10,000
AUD
1,000
GBP
1,000
RMB
10,000
EUR
1,000
 
 
Bloomberg ID BOAHYA1 HK BOAHYA2 HK BOAHYA4 HK BOAHYA7 HK BOAHYA9 HK BOAHA10 HK  
 
ISIN HK0000613221 HK0000613239 HK0000613254 HK0000613288 HK0000613304 HK0000613312  
 

* Please refer to the fund documents of the respective funds/ sub-funds for details.
** The fees and charges may also be increased up to maximum level as specified in the fund documents by giving at least one month's prior notice to investors. Please refer to the fund documents for further details.

Past Performance – Calendar Year

Download

Historical Fund Price
Dividend Payment Composition
Fund Documents:
Fund Factsheet (Available in English and Traditional Chinese)
Explanatory Memorandum and Appendix (Available in English and Traditional Chinese)
Product Key Facts (Available in English and Traditional Chinese)
2023 Annual Report(Available in English and Traditional Chinese)
2023 Interim Report (Available in English and Traditional Chinese)

Important Notice

Investment in funds/sub-funds may involve risks and may not be suitable for all investors. Past performance is not indicative of future results. Investors should read carefully the relevant fund documents for details including but not limited to the risk factors before making any investment decisions. Printed copies of the fund documents or other information of the funds/sub-funds are available from the distributors of the respective funds/sub-funds and BOCHK Asset Management Limited. The above information does not constitute any offer or recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to the investors’ needs.

Market risk

  • The Sub-Fund’s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Sub-Fund may suffer losses. There is no guarantee of the repayment of principal or dividend or distribution payments.

Risks associated with debt securities rated below investment/recognized grade or unrated

  • The Sub-Fund may invest in debt securities rated below investment/recognized grade or unrated. Such securities are generally subject to lower liquidity, higher volatility and greater risk of loss of principal and interest than high-rated debt securities.
  • Investments in such securities may also be subject to greater credit risk. If the issuer of a security is in default with respect to interest or principal payments, the Sub-Fund may lose its entire investment.
  • Adverse events or market conditions may have a larger negative impact on the prices of non-investment/non-recognized grade or unrated debt securities than on higher-rated debt securities. Such debt securities in emerging markets may also be subject to higher volatility and lower liquidity compared to debt securities in more developed markets.

General risks relating to debt securities

  • Credit risk︰Investment in debt securities is subject to the credit/default risk of the issuers of the debt securities that the Sub-Fund may invest in.
  • Interest rate risk︰Debt securities are subject to interest rate risk. Generally, the prices of debt securities rise when interest rates fall, vice versa.
  • Volatility and liquidity risk:The debt securities in the Asia Pacific region may be subject to higher volatility and lower liquidity compared to more developed markets. The price 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 Sub-Fund may incur significant trading costs.
  • Downgrading risk:Investment/recognized grade securities or their issuers may be subject to the risk of being downgraded. In the event of downgrading, the value of the Sub-Fund may be adversely affected. The Manager may or may not be able to dispose of the debt instruments which (or the issuers of which) are being downgraded.
  • Sovereign debt risk:The Sub-Fund’s investment in securities issued or guaranteed by government 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 Sub-Fund to participate in restructuring such debts. The Sub-Fund may suffer significant losses when there is a default of sovereign debt issuers.
  • Valuation risk:Valuation of the Sub-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 Sub-Fund.
  • Risk related to credit ratings︰Credit ratings assigned by rating agencies are subject to limitations and do not guarantee the creditworthiness of the security and/or issuer at all times.
  • Credit rating agency risk:The credit appraisal system in the Asia Pacific region and the rating methodologies employed in the Asia Pacific region may be different from those employed in other markets. Credit ratings given by rating agencies in the Asia Pacific region may therefore not be directly comparable with those given by other international rating agencies.
  • “Dim Sum” bond market risks:The “Dim Sum” bond 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 Sub-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 liberalization of the offshore RMB (CNH) market by the relevant regulator(s).

Concentration risk

  • The Sub-Fund may from time to time focus its investments in Asia. The value of the Sub-Fund may be more volatile than that of a fund having a more diversified portfolio of assets. The value of the Sub-Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the relevant markets in Asia.

Emerging markets risk

  • The Sub-Fund may be subject to the increased risks and special considerations of investing in the emerging markets, which are not typically associated with investment in more developed markets, such as greater political and economic uncertainties, social, foreign exchange, liquidity and regulatory risks, legal and taxation risks, settlement risks, custody risk, the likelihood of a high degree of volatility, market suspension, restrictions on foreign investment and control on repatriation of capital.

Currency risk

  • The Sub-Fund may invest in securities quoted in currencies other than the Sub-Fund’s base currency (US Dollar). Also a class of units may be designated in a currency other than the base currency of the Sub-Fund. The Sub-Fund’s value may fluctuate in response to fluctuations in exchanges rates between such currencies and the US Dollar and by changes in exchange rate controls.

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.

Risks associated with investments in debt instruments with loss-absorption features (LAP)

  • Debt instruments with loss-absorption features are subject to greater risks when compared to traditional debt instruments as such instruments are typically subject to the risk of being written down or converted to ordinary shares upon the occurrence of a pre-defined trigger events (e.g. when the issuer is near or at the point of non-viability or when the issuer’s capital ratio falls to a specified level), which are likely to be outside of the issuer’s control. Such trigger events are complex and difficult to predict and may result in a significant or total reduction in the value of such instruments.
  • In the event of the activation of a trigger, there may be potential price contagion and volatility to the entire asset class. Debt instruments with loss-absorption features may also be exposed to liquidity, valuation and sector concentration risk.
  • The Sub-Fund may invest in contingent convertible debt securities, commonly known as CoCos, which are highly complex and are of high risk. Upon the occurrence of the trigger event, CoCos may be converted into shares of the issuer (potentially at a discounted price), or may be subject to the permanent write-down to zero. Coupon payments on CoCos are discretionary and may be cancelled by the issuer at any point, for any reason, and for any length of time.
  • The Sub-Fund may invest in senior non-preferred debts. While these instruments are generally senior to subordinated debts, they may be subject to write-down upon the occurrence of a trigger event and will no longer fall under the creditor ranking hierarchy of the issuer. This may result in total loss of principal invested.

Risks associated with distribution out of capital

  • Payment of dividends out of capital or effectively out of capital represents a return or withdrawal of part of the amount the investors originally invested or from any capital gains attributable to the original investment. Any such distributions will result in an immediate reduction in the Net Asset Value of the relevant Class of Units.
  • The distribution amount and Net Asset Value of the hedged classes may be adversely affected by differences in the interest rates of the reference currency of the hedged classes and the Sub-Fund’s base currency, 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.

Risks relating to hedging and the hedged classes

  • There can be no assurance that any currency hedging strategy will fully and effectively eliminate the currency exposure of the Sub-Fund. Hedging strategies may preclude investors from benefiting from an increase in the value of the Sub-Fund’s base currency.

RMB currency risk/Risks relating to RMB denominated securities

  • Non-RMB based investors investing in the RMB Units will incur currency conversion costs and may suffer losses depending on the exchange rate movements of RMB relative to the investors’ base currencies (e.g. Hong Kong dollars) and by changes in exchange rate controls. There is no guarantee that RMB will not depreciate.
  • While the offshore RMB (known as “CNH”) and the onshore RMB (known as “CNY”) represent the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors.
  • RMB is currently not a freely convertible currency and is subject to foreign exchange controls and repatriation restrictions. Under exceptional circumstances, payment of redemptions and/or dividend payment in RMB may be delayed due to the exchange controls and restrictions applicable to RMB.

By accepting the Terms and Conditions as set out on https://www.bochkam.com, you shall be deemed as users of this Site and acknowledge that you are responsible for ensuring that the legislation applicable to you in your jurisdiction permits you to consult this Site and you represent and warrant that you have the necessary means and skills to access this Site and use it in the intended manner only. The Terms and Conditions are subject to change without prior notice; and you should conduct your own verification of the information contained herein. Investment involves risk. Past performance is not indicative of future performance. Please refer to the respective fund documents for further information, including but not limited to the risk factors before investing. Printed copies of the fund documents or other information of the funds/sub-funds are available from the distributors of the respective funds/sub-funds and BOCHK Asset Management Limited. The above information does not constitute any offer or recommendation to implement or liquidate an investment or to carry out any other transaction. Investors should not solely rely on this Site to make any investment decision or any other decision. Any investment decision should be based on appropriate professional advice specific to the investors' needs. The advertisement contained herein has been issued by BOCHK Asset Management Limited and has not been reviewed by SFC.

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