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ABF Hong Kong Dollar Bond Index Fund

A unique investment choice as part of your wealth planning

Important information
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.

Learn more about information about ABF Hong Kong Bond Index Fund

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.

Risk Warning

The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Where overseas investments are held the rate of currency exchange may also cause the value of such investments to fluctuate.

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