BNP AM

The sustainable investor for a changing world

Important Notes:
1) The fund seeks to increase the value of its assets over the medium term by investing primarily in emerging bonds.
2) The fund is exposed to interest rate and credit risks.
3) The fund may invest in non-investment grade or unrated debt securities including sovereign debt, which may expose the fund to higher credit/default risk and volatility.
4) The fund has significant exposure to emerging markets and a limited number of debt securities is likely to be subject to a greater concentration risk and higher volatility than a more diversified investment. Emerging markets may have higher legal, regulatory and political risk.
5) The management company may at its discretion pay dividends out of the capital of the fund. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the fund’s capital may result in an immediate reduction of the net asset value per share.
6) The monthly distribution share classes will continue to distribute monthly dividends in periods when the fund has negative return, which will further reduce the net asset value of the fund.
7) Investors should not solely rely on this document to make any investment decision. Please refer to the Hong Kong offering document for further information (including the risk factors) about the fund.

Opportunity

Emerging Markets Fixed Income (EMFI) is a large asset class with breadth and depth, amounting to USD 23tn*. This asset class provides diversification benefits. As interest rates and volatility levels rise from historic low levels, not all EMs will benefit uniformly. A significant difference in performance within EM asset classes provides active managers more security selection opportunities with the aim to generate performance above benchmark.

Moreover, valuations of emerging markets look compelling on an absolute basis and relative to developed markets.

Fund Highlights

  • BNP Paribas Funds Emerging Bond Opportunities: The fund seeks to increase the value of its assets over the medium term and outperform its benchmark by investing in bonds and other debt instruments issued by emerging market countries and/or companies.
  • The fund applies an unconstrained and flexible investment approach: via dynamic asset allocation, a contrarian investment philosophy and disciplined risk management.
  • Offers monthly payout for the Classic MD share class#
  • An award-winning investment team***The team of specialists is supported by a strong EM network.


DISCLOSURE

*Source: JP Morgan , March 2021.

** Source: JP Morgan, December 2020. Past performance is not indicative of current or future performance.

***Source: Insurance Asia News. Institutional Asset Management Awards 2020 reflects the performance as of 31 December 2019. Asia Asset Management ‘Best of the Best Awards 2020’ Asset Class Performance Award – reflects the performance as of 31 December 2019.

# While there will be no variations month on month and investors will receive a fixed dividend amount on a monthly basis, the monthly dividend yield with reference to the prevailing net asset value of the share classes concerned will vary. A positive distribution yield does not imply a positive return. Distributions may be paid out of capital which may result in an immediate reduction of the sub-fund’s net asset value per share. The Board of Directors has the sole discretion to vary the rate and/or frequency of distribution as long as it is in line with the prospectus and relevant regulations. Past performance is not indicative of current or future performance.

This material is issued and has been prepared by BNP PARIBAS ASSET MANAGEMENT Asia Limited with its registered office at 17/F, Lincoln House, Taikoo Place, Quarry Bay, Hong Kong. This material has not been reviewed by the Hong Kong Securities and Futures Commission. It is produced for information purposes only and does not constitute: 1. an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or 2. investment advice. Investors considering subscribing for the financial instruments should read the most recent prospectus, offering document or other information for further details including the risk factors available from your local BNPP AM correspondents, if any, or from the entities marketing the Financial Instrument(s). Investors should consult their own professional advisors in respect of investment, legal, accounting, domicile and tax advice prior to investing in the funds in order to make an independent determination of the suitability of the consequences of an investment. Investments involve risks. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. Past performance is not a guide to future performance.