Investment keywords: easing global liquidity pressure, bullish on Asian bond market
Affected by the epidemic, the global market experienced huge fluctuations. Dollar bonds in Asia and Greater China were sold for a time, but as the epidemic improved, major central banks around the world launched epic monetary and fiscal policies. global liquidity pressure gradually eased, trading of Asian dollar bonds also picked up, showing a V-shaped rebound, recovering most of the previous losses.
Especially in a global low-interest environment, dollar debt valuations in emerging markets are more attractive than those in developed markets with low yields.
Changes in yields in the global bond market from August to September 2020
Data sources: Bloomberg, BAML, eFonda, as of September 11, 2020
At the same time, in a group of emerging markets, the credit indicators of Asian bond issuers are generally good, and the default rate of high-yield dollar bonds is relatively lower than that of developed countries and regions, with a better risk-return ratio. The allocation of Asian high-yield bonds may help equity investors spread risk in the single market and optimize asset allocation.
Picture: historical default of Chinese dollar debt
Source: Bloomberg, as of 31 August 2020
Picture: the default rate of Chinese dollar debt is relatively low.
Source: Bloomberg, as of May 2020
Therefore, Fortune decided to increase the fund products invested in the Asian high-yield bond market, that is, the Yifangda (Hong Kong) Select Asian High-yield Bond Fund introduced today.
Be bullish on Asian dollar bond market and Greater China dollar bond
Yi Fangda (Hong Kong) 70% of the net value of Asian high-yield fund assets 100% is mainly invested in US dollars, euros or Hong Kong dollars denominated by listed or unlisted companies in Asia or fully guaranteed by listed or unlisted companies in the region, or overseas RMB denominated ("dim sum" bonds, that is, a portfolio of high-yield debt securities issued outside China but denominated in RMB).
By the end of September 2020, the fund was mainly high-yield bonds in Asia, especially Chinese dollar bonds, accounting for 54.53%.
Source: Bloomberg, as of 20209月30日
Source: Bloomberg, as of September 30, 2020
The industry mainly invests in real estate, accounting for 45.28%, followed by banks and sovereignty, accounting for 16.92% and 6.33%, respectively.
Source: Bloomberg, as of September 30, 2020
The investment term is mainly bonds with maturity of 1-2 years, accounting for 22.24% of the total investment bonds, followed by bonds with maturity of 2-3 years, accounting for 20.96% of the total. The total average maturity of the Fund's bonds is 3.19 years.
Source: Bloomberg, as of September 30, 2020
The fund's US dollar and Hong Kong dollar shares in Forto's ClassA were established on January 28, 2019 and March 25, 2020, respectively. Since the establishment of the two shares, the cumulative income has recorded 14.75% (US dollar share) and 21.10% (Hong Kong dollar share), respectively. (source: morning Star, as of November 4, 2020)
Historical net worth performance
Select Class A performance of Asian High yield Bond Fund for Yi Fangda (Hong Kong)
Source: Yi Fangda (Hong Kong) official website, January 28, 2019 to October 8, 2020
Cumulative performance * *
* * Source: Bloomberg, as of September 30, 2020
Backed by Effonda Asset Management (Hong Kong) Company
Fund excellence can not be separated from its strong background of fund companies and excellent fund managers. Established in 2008, Effonda Asset Management (Hong Kong) Limited, as the international business platform of Effonda Fund Management Limited ("EFunda Fund"), has been established in Hong Kong for many years, providing global investors with two-way and cross-border asset management services, including equity, fixed income and large types of asset allocation, as well as a number of public, private and ETF products in Hong Kong, Europe and the United States. The company's products have been awarded honors by authoritative organizations including Morningstar, Lipper, AsianInvestor and Benchmark for many times, and their achievements are far ahead in the same industry.
By the end of 2019, the parent company, Yifangda, had a total asset management of about 1.4 trillion yuan (including Hong Kong and domestic subsidiaries), of which non-monetary non-short-term financial public offering funds ranked first in the industry. it is one of the largest comprehensive asset management institutions in China. Yi Fangda is one of the few "full license" companies in China's fund industry with business qualifications such as public offering, social security, annuity, specific customer asset management, QDII, QFII, RQFII, basic pension fund investment and so on.
The strength of the company has also been widely recognized by the market, and has repeatedly won fund awards from the 21st Century Business Herald, China Securities News and Bloomberg Business week (Chinese version).
Mr. Cai Shaojun, the fund manager, has 12 years of fixed income investment experience. Under the sharing of research resources between Yi Fangda (Hong Kong) and the mainland headquarters team, Mr. Cai Shaojun, the fund manager, can know the credit status of Asian dollar bond issuers more timely and accurately.
* data is rounded up to two decimal places. Based on the fact that the sum of the percentages of the distribution is not necessarily equal to 100%.
* * performance is calculated on the basis of the total return on asset net value to asset net value and dividends (if any) reinvested. The performance of the Sub-Fund before 18 May 2020 was achieved when it was no longer applicable. The target region of the Sub-Fund's investment focus expanded from the Greater China region to Asia on May 18, 2020, thus changing the Sub-Fund's target to invest 70% to 100% of its asset net value in a portfolio of high-yield debt securities issued or fully guaranteed by listed or unlisted companies that can conduct major business operations (or a large portion of their assets) in Asia or that derive most of their income from Asia.
Disclaimer
Risk and disclaimer: this document is not and should not be regarded as the basis for soliciting, soliciting, inviting, recommending the sale of any investment products or investment decisions, nor should it be interpreted as professional advice. Those who read this document or before making any investment decision should fully understand the risks and the characteristics and consequences of the relevant laws, taxes and accounting, and decide whether the investment is in line with their financial position and investment objectives according to their own circumstances, and whether it can withstand the relevant risks, and should seek appropriate professional advice if necessary.
Investment involves risks, and investors should carefully read the fund information and related documents (including its risk factors). Investors are advised to note that the prices of fund products can rise or fall, and may change substantially within a short period of time. Investors may not be able to get back the amount they have invested in the fund. The past performance of the fund does not predict future performance. If there are similar forward-looking statements in this document, such contents or statements shall not be regarded as guarantees of any future performance, and it should be noted that the actual situation or development may differ materially from such statements.
Those whose investment income is not in Hong Kong dollars or US dollars are subject to the risk of exchange rate fluctuations.