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A unique investment choice as part of your wealth planning
ABF Hong Kong Dollar Bond Index Fund
A unique investment choice as part of your wealth planning
Investments involve risks. Investors are advised to consider their own investment objectives and circumstances in determining the suitability of an investment in the Fund. An investment in the Fund may not be suitable for everyone. If you are in any doubt about the contents of this document, you should consult your stockbroker, bank manager, solicitor, accountant or other financial adviser. Investors should note:
The Fund is an exchange traded bond fund. The Fund’s market price on the stock exchange may be different from its net asset value per unit.
The listing of the Fund on the stock exchange in Hong Kong does not guarantee a liquid market and the Fund may be delisted.
The Fund invests primarily in Hong Kong dollar government and quasi-government bonds with an aim to track the performance of the underlying index.
The Fund may pay dividends out of capital or pay dividends gross of expenses. Dividend is not guaranteed and will result in capital erosion and reduction in net asset value.
Investing in the Fund involves substantial credit, counterparty, market, volatility and liquidity risks. In the case of turbulent market situation, investors may suffer substantial loss.
Investors should not invest in the Fund solely based on the information provided in this document and should read the Prospectus of the Fund for details.
Unit trusts are NOT equivalent to time deposits. Investors should not invest in the Fund solely based on the information provided in this document. The Fund differs from a typical trust and investors should read the offering document of the Fund for details.
Investment involves risk. Past performance is not indicative of future performance. Please refer to the offering document for further details including the risk factors. The document has not been reviewed by the Securities and Futures Commission.
ABF Hong Kong Dollar Bond Index Fund (stock code 2819)
ABF Hong Kong Bond Index Fund (stock code 2819) seeks to provide total returns (before fees and expenses) which correspond to the performance of the Markit iBoxx ABF Hong Kong Index1. The index is an indicator of investment returns of Hong Kong dollar denominated bonds issued by government, quasi-government and supranational entities.
Potential benefits of ABF Hong Kong Bond Index Fund
Target to provide stable income through semi-annual dividend distribution (Dividend is not guaranteed and may be paid out of capital. Please see Important Information)
Diversified portfolio of bonds issued by government, quasi-government and supranational entities
High transparency and convenience as it is traded on the Hong Kong Stock Exchange
Benefits of Hong Kong dollar bond
Lower exchange rate risk
For local investors, the exchange rate risk is lowered by investing in Hong Kong dollar bonds as the dealing currency for these bonds is Hong Kong dollar. Investors may suffer from exchange-rate fluctuation risks if they invest in foreign currency denominated bonds, as the foreign exchange rates are bound to fluctuate against the Hong Kong dollar from time to time.
Lowering your average portfolio risk
Hong Kong dollar bonds are relatively less correlated to equities. In addition, these bonds normally pay regular dividends. As such, adding bonds to your portfolio could help mitigate the volatilities of high-risk assets in your investment portfolio.
Important notes: 1 Markit iBoxx is a registered trade mark of Markit Indices Limited (previously known as International Index Company Limited) ("Markit") and has been licensed for the use by the Manager and the Trustee. Markit does not approve, endorse or recommend the Manager, the Trustee or the Fund. The Fund is not sponsored, endorsed or sold by Markit and Markit makes no representation regarding the suitability of investing in the Fund.
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Terms and conditions
This Site is intended for Institutional Investors in Hong Kong only.
The Funds invest in various investments, such as equities, bonds, money market instruments, collective investment schemes and alternative investments. Each fund has a different investment objective and risk profile.
The Funds may subject to the risks of investing in emerging markets and smaller companies; and may subject to the concentration risks when the investments are concentrated in one or a small number of markets or sectors.
The Funds may invest in non-investment grade bonds, unrated bonds, contingent convertible securities, mortgage backed securities, asset backed securities and urban investment bonds issued by PRC local government financing vehicles (LGFVs) which are subject to additional risks and volatility.
The Funds may have substantial investments in securities issued by a single sovereign issuer (including but not limited to issuer with a non-investment grade credit rating) and are subject to higher concentration risk, sovereign risk and credit risk.
The Funds may gain exposure to hedge fund, absolute return strategy, private equity, real estate sector and Real Estate Investment Trust (REIT) which are subject to additional risks and volatility.
The Funds may invest in onshore Chinese securities through various market access schemes and China A-shares Access Products. Such investments involve additional risks, including the risks associated with China's tax rules and practices.
When investing in Indian bonds, the Funds may need to comply with the licensing regulations in India and may subject to additional risks, including quota restrictions and tax risks.
The Funds may invest in other funds and need to bear the underlying funds' fees and expenses on top of the Funds' own fees and expenses.
The Funds may invest in financial derivative instruments for investment purpose which may lead to higher volatility to their net asset value.
The Funds may pay dividends out of capital or gross of expenses. Dividend is not guaranteed and may result in capital erosion and reduction in net asset value.
Because the Funds' base currency, investments and classes may be denominated in different currencies, investors may be affected adversely by exchange controls and exchange rate fluctuations. There is no guarantee that the currency hedging strategy applied to the relevant classes will achieve its desired result.
Investing in money market funds are not the same as placing funds on deposit with a bank or deposit taking company. The Funds which are money market funds have no obligation to redeem units at their offering value and such Funds are not subject to the supervision of the Hong Kong Monetary Authority. Investors may not recoup the original amount invested in the Funds.
The Funds' investments may involve substantial credit, currency, volatility, liquidity, interest rate, tax and political risks. Investors may suffer substantial loss of their investments in the Funds.
The Funds are NOT equivalent to time deposits. Investors should not invest in the Funds solely based on the information provided herein and should read the offering document of the Fund for details.
You must read carefully the terms and conditions and disclaimers set out here (the 'Terms') and agree to be bound by these Terms prior to registering as a user of this website (the 'Site'). By selecting ACCEPT at the bottom of this page, you agree to be bound by these Terms. If you do not agree to be bound by these Terms please select the DECLINE option below.
I have read and accept the terms above and wish to continue into this site. I confirm that I am an institutional investor in Hong Kong.