BNP Paribas A Fund European Multi-Asset Income

Opportunities no longer come in one shape and size

Important Notes:

1)   The fund seeks to provide regular income in the form of dividend and to generate capital growth by investing in different asset classes in Europe including equities, real estate securities, corporate bonds, high-yield bonds, government bonds and convertible bonds.

2)   The fund has significant equity exposure to a geographical region (Europe) and is likely to be subject to a greater concentration risk and higher volatility than a more diversified investment. Risks of equity market may include significant fluctuations in prices, negative information about the issuer or market. Fluctuations are often amplified in the short term. Further, investments in real estate securities (including REITs) may be subject to similar risks as direct investment in real estate including possible decline in the value of real estate, risks related to general and local economic conditions, increase in interest rates and other real estate capital market influences

3)   The fund may invest in bonds (including sovereign debt) and is exposed to interest rate and credit risks. Governments largely in-debt may not be able to repay the principal and/or interest in accordance with the terms of such debt.

4)   The fund may invest in non-investment grade or unrated debt securities, which may expose the fund to higher credit/default risk and volatility.

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.

WHY MULTI-ASSET INCOME

Are you …

  • Searching for a regular income stream in a low-yield environment?
  • Looking for a smoother ride in generating income?
  • A traditional equity investor seeking lower-volatility investments?

Do you believe …

  • Europe’s growth momentum is on the rise?

If the answer is YES, it’s time to discover BNP Paribas A Fund European Multi-Asset Income

A solution to potentially balance risk, return and income

 

KEY HIGHLIGHTS

1. Seeks to provide a regular income stream via monthly dividends (dividends may be paid out of capital Important Notes 5)

The fund enables investors to enjoy a fixed monthly dividend payment of 0.53 per share in the Classic RH AUD MD share class, equivalent to a 6.50% annual dividend rate; 0.47 per share in the Classic RH USD MD and Classic RH CAD MD share classes, equivalent to 5.75% annual dividend rate; 0.45 per share in the Classic RH HKD MD share class, equivalent to 5.50% annual dividend rate; and 0.37 per share in the Classic MD share class, equivalent to 4.5% annual dividend rate. The annual dividend rates in 2017 are valued with reference to the net asset value of the corresponding monthly dividend share classes as at 31 October 2016; and decomposed into a fixed monthly payment for a 12-month period in 2017. Dividends may be paid out of capital Important Notes 5. The aforementioned annual dividend rates are only applicable for 2017. 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 fund’s net asset value per share. The Board of Directors has the sole discretion to vary the rate and/or frequency of distribution subject to one month’s prior notice to shareholders.

The fund contains monthly dividend share classes with a fixed annual dividend amount (which is calculated with a fixed annual dividend rate to be determined by the investment manager with reference to the net asset value of the relevant monthly dividend share classes as at 31 October each year and decomposed into a fixed monthly dividend payment for the 12-month period in the following calendar year). While there will be no variations month on month and investors will receive a fixed dividend amount on a monthly basis, the monthly dividend rate with reference to the prevailing net asset value of the share classes concerned will vary.

2. Why is Europe still looking positive?

percentage-sign1. The European Central Bank’s Quantitative Easing programme is still in place, will probably taper only gradually, and may further support European assets.

dollar-sign2. Positive Consumer Price Index (CPI) figures and strong Purchasing Managers’ Index (PMI) for manufacturing and non-manufacturing suggest that economic movement is turning positive.

euro-sign3. The European banking sector, which is very important for the region’s economy and companies as it is highly relied on for financing, shows signs of shaping up and potential improvements in earnings.

3. Diversification across various European asset classes

No one can predict with any certainty which asset class will perform best. Hence, we believe that a well-diversified portfolio lowers the potential risks compared to investing in a single asset class.

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4. Flexibility to potentially seek out the most attractive yield

We employ a flexible asset allocation approach by adjusting the asset class mix and weightage, with the aim of achieving an optimal balance of risk and return. These asset allocation decisions are driven by our Multi Asset Solutions (MAS) team’s assessment on valuation and macroeconomic views.

Actual Asset Allocation of the Fund

Source: BNP Paribas Asset Management, 30 June 2017
This allocation is for reference only and is subject to change without notice.

 

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Bart van Poucke, Portfolio Manager: “We believe that allocating flexibly across various asset classes can potentially generate income while limiting risk* relative to a fixed allocation.”

*This should not be confused with and does not imply low or no risk.

5. Combined expertise of highly experienced teams from a European powerhouse

Our MAS team dedicated to asset allocation focuses on achieving an optimal asset class blend. This is combined with the security selection expertise of our asset class specialists.

Investment involves risks. Please refer to the Hong Kong Offering Document for further information (including the risk factors) about the fund. This material is issued and has been prepared by BNP PARIBAS ASSET MANAGEMENT Asia Limited. This material has not been reviewed by the Hong Kong Securities and Futures Commission (SFC). This material is produced for information purposes only and does not constitute 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 investment advice. Investors should consult their own legal and tax advisors in respect of legal, accounting, domicile and tax advice prior to investing in the financial instrument(s) in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Given the economic and market risks, there can be no assurance that the fund will achieve its investment objectives. Investors may not get back the amount they originally invested.

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