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BNP PARIBAS ASSET MANAGEMENT - PV bond best selection world EM 1440x300

BNP Paribas Funds Emerging Bond Opportunities

 

Our broadest emerging market fixed income fund, run on a total return approach, utilising local and hard currency and corporate bonds.

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 may use financial derivative instruments extensively for investment and/or hedging purposes, which may involve material additional risks, for example counterparty default risk or insolvency, volatility risk, liquidity risk, leverage risk and valuation risk, and may expose the fund to significant losses.

3) The fund is exposed to interest rate and credit risks.

4) 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.

5) 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.

6) 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.

7) 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.

8) 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 21.1tn*. 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.

 

Index returns table Singapore March 2020

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

 

Fund Highlights

  • BNP Paribas Emerging Bond Opportunities: The fund seeks to increase the value of its assets over the medium term by investing in bonds and other debt instruments issued by emerging countries or companies from emerging countries, or operating in these countries, with a solid financial structure and/or potential for earnings growth.
  • 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#
  • Second quartile ranking in December 2019: Rated by eVestment Alliance##
  • An award-winning investment team^: The team of specialists is supported by a strong EM network.

 

Insurance-Asia-News-Insti-Asset-Management-Awards-2018 2018-SG-MF-House-Emerging-Markets-Fixed-Income_BIC-292x300 Best Awards 2017Logo B&Y

  * JP Morgan, December 2019.   ** Source: JP Morgan, 31 December 2019. Gov refers to Government. EM Local Currency Government Debt (USD hedged) refers to the JP Morgan GBI-EM Global Diversified (USD Hedged) Index; EM Local Currency Government Debt (USD unhedged) refers to the JP Morgan GBI-EM Global Diversified (USD Unhedged) Index; EM USD Government Debt refers to JP Morgan EMBI Global Diversified Index; EM USD Corporate Debt refers to the JP Morgan CEMBI Broad Diversified Index. Past performance is not indicative of current or future performance.   # 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. Source: BNPP AM, December 2019.   ## Source: eVestment Alliance (Global Emerging Markets Fixed Income – Blended Currency Universe), BNPP AM, 2nd quartile ranking refers to the 3.75 year performance as at December 2019.   ^ Source: Insurance Asia News/ Institutional Asset Management Awards 2018 reflects the performance as of 31 December 2017. Benchmark Fund of The Year Awards reflects the performance as of end August 2018 period. Asia Asset Management ‘Best of the Best Awards 2020’ Asset Class Performance Award – Global Emerging Markets Debt (3 Years) reflects the performance as of 30 September 2019.   Trademark, copyrights and other intellectual property rights are and remain the property of their respective owners.