Docstoc

BNP Paribas Bond Asia ex Japan BNP Paribas Investment

Document Sample
BNP Paribas Bond Asia ex Japan BNP Paribas Investment Powered By Docstoc
					•	 The	fund	may	invest	in	derivatives	(up	to	100%)	and	structured	investment	products	e.g.	credit	default	swaps	and	collateralized	debt	
   obligations.	The	fund	may	also	invest	in	below	investment	grade	debt	securities.	These	types	of	investments	can	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.
•	 The	fund	is	exposed	to	interest	rate	and	credit	risks.
•	 The	fund	has	significant	exposure	to	emerging	markets	and	is	likely	to	be	subject	to	a	higher	than	average	volatility.	Emerging	
   markets	may	have	higher	legal,	regulatory	and	political	risk.
•	 Investors	should	not	solely	rely	on	this	document	to	make	any	investment	decision.	




                                                                         BNP Paribas L1
                                                                      Bond Asia ex-Japan
2	-	BNP	Paribas	L1	Bond	Asia	ex-Japan	




               INvestMeNt strAtegy
               The	 Fund	 invests	 in	 Asian	 (excluding	 Japan)	 fixed-income	 securities	 denominated	 in	 US	 dollars	 and/or	
               major	currencies	and	local	Asia/Pacific	currencies	with	medium-	and	long-term	maturity.	Rather	than	a	
               generalised	top-down	asset-allocation	process,	we	use	a	differentiated	strategy	overlay	approach,	in	which	
               specific	 directional	 and	 micro	 strategies	 are	 implemented	 relative	 to	 the	 benchmark.	 These	 include	
               duration,	foreign	exchange,	country,	yield	curve	and	credit	spreads.	The	Fund	aims	to	achieve	the	highest	
               possible	return	in	US	dollars	measured	against	its	benchmark#.


           Why BNP PArIBAs L1 BoNd AsIA ex-JAPAN?
           1) Asia Bonds historically have strong risk-adjusted                                         3) Long and steady track record and monthly dividend
              returns1                                                                                     share class is available
           	   	 sian	 bond	 offers	 a	 decent	 return	 against	 other	 asset	
               A                                                                                             •    The	 fund	 delivered	 positive	 returns	 in	 the	 past	 10	
               classes	while	stay	with	lower	volatility	over	the	past	10	                                         years	except	2008.3	
               years	on	stronger	economic	growth.	
                                                                                                          40%
                                                                                                                           BNPP L1 Bond Asia ex Japan
                        Asset Class*               Annualized Annualized               sharpe
                                                     return    volatility               ratio             30%
                  Bond                                                                                    20%
                  Asian	Bond	(USD)                     8.1%              7.0%           0.94%
                                                                                                          10%
                  Asian	Local	Currency	                8.0%              6.5%           1.01%
                                                                                                           0%
                  Bond
                  Global	Emerging	                     9.4%              9.7%           0.86%            -10%
                  Market	Bond	                                                                           -20%
                  US	Treasury	(>	1	year)               5.8%              5.0%           0.79%
                                                                                                         -30%
                  World	Government	                    7.1%              7.5%           0.72%
                                                                                                                    2002


                                                                                                                            2003


                                                                                                                                   2004


                                                                                                                                            2005


                                                                                                                                                    2006


                                                                                                                                                           2007


                                                                                                                                                                   2008


                                                                                                                                                                          2009


                                                                                                                                                                                 2010


                                                                                                                                                                                          2011


                                                                                                                                                                                                 ytd
                  Bond
                  US	High	Yield	Bond	                  6.4%              6.1%           0.79%
                  equity
                  Asia	ex	Japan	Equity                 8.8%             23.8%           0.47%                •    The	annualized	monthly	dividend	payout	rate	set	for	
                                                                                                                  2012	is	5.6%	(Classic	–	MD)4		-	this	helps	to	provided	
                  World	Equity	                       -1.5%             16.1%          -0.13%
                                                                                                                  a	potential	stable	income	during	market	uncertainties.	
                  US	Equity	                          -1.7%	            16.1%          -0.13%
                                                                                                                record date               Payment          rate / share          Annualised
                                                                                                                                            date              (Usd)               yield (%)
           2) Asian credit outlook remains stable and positive                                                   13/01/11                 20/01/11                0.48                  5.95%
                                                                                                                 14/02/11                 22/02/11                0.48                  6.04%
           	   A
               	 sian	sovereign	credit	ratings	are	upgraded	and	with	an	
                                                                                                                 14/03/11                 21/03/11                0.48                  6.02%
               uptrend	outlook,	supported	by	the	strong	fundamentals	
               and	low	public	debt	ratios.2                                                                      13/04/11                 20/04/11                0.48                  6.03%
                                                                                                                 13/05/11                 20/05/11                0.48                  5.98%
           	
               Asian credit rating
                                                                                                                 13/06/11                 20/06/11                0.48                  5.96%
                  s&P                        Moody’s                     Fitch                                   13/07/11                 20/07/11                0.48                  5.95%
                  China	(AA-)                China	(Aa3)                 Hong	Kong	(AA+)                         15/08/11                 22/08/11                0.48                  5.95%
                  Hong	Kong	(AAA)            Hong	Kong	(Aa1)             Indonesia	(BB+)                         13/09/11                 20/09/11                0.48                  6.03%
                  Indonesia	(BB+)            Indonesia	(Ba1)                                                     13/10/11                 20/10/11                0.48                  6.14%
                  Philippines	(BB)           Philippines	(Ba2)                                                   14/11/11                 21/11/11                0.48                  6.07%
                  Pakistan	(B-)              Pakistan	(B3)                                                       13/12/11                 20/12/11                0.48                  6.13%
                                             South	Korea	(A1)                                                    18/01/12                 31/01/12                0.46                  5.83%
                                             Sri	Lankan	(B1)                                                     16/02/12                 29/02/12                0.46                  5.75%
           #
            The	fund’s	benchmark	is	HSBC	Asia	US	Dollar	Bond	Gross	Return	Index.
           Source:	1Bloomberg.	Return	from	31	December	2000	to	September	2011,	inception	date	of	HSBC	Asia	Local	Currency	Bond	index.	*Asian	Bond	(USD)	refers	to	HSBC	Asian	Bond	Index,	Asian	
           Local	Currency	Bond	refers	to	HSBC	Asia	Local	Currency	Bond	Index,	Global	Emerging	Market	Bond	refers	to	JP	Morgan	Emerging	Markets	Bond	Index,	World	Government	Bond	refers	to	
           Salomon	World	Government	Bond	Index,	US	High	Yield	Bond	refers	to	Merrill	Lynch	US	High	Grade	Index,	Asia	ex	Japan	Equity	refers	to	MSCI	Asia	ex	Japan	Free	Gross	USD	Index,	World	
           Equity	refers	to	MSCI	World	Free	Index	and	US	Equity	refers	to	S&P	500	Index.	 2Fitch,	Moody’s	and	S&P,	January	2012.	3BNP	Paribas	Investment	Partners,	as	of	29	February	2012,	NAV	to	
           NAV,	net	of	fees	return	with	dividend	reinvested.	4BNP	Paribas	Investment	Partners,	as	of	February	2012.	The	monthly	dividend	payout	is	determined	based	on	the	benchmark	yield	of	the	
           respective	sub-funds,	applying	a	discretionary	mark-up	based	on	the	feedback	of	the	fund	manager	/	CIO	of	the	long	term	outlook	for	the	relevant	asset	class	and	an	analysis	of	market	
           practice.	The	benchmark	for	BNP	Paribas	L1	Bond	Asia	ex	Japan	is	HSBC	Asian	US	Dollar	Bond	Gross	Return	Index.	The	above-mentioned	annualised	dividend	yield	is	only	set	for	the	year	
           of	2012	and	is	calculated	on	31	October	2011.	The	monthly	dividend	payout	for	Classic	–	MD	from	1	January	2012	to	31	December	2012	is	US$0.46	per	unit.	Therefore,	the	actual	dividend	
           yield	may	go	up	and	down	with	the	net	asset	value.
                                                                                                                                                                        BNP	Paribas	L1	Bond	Asia	ex-Japan	-	3	




4) Unique Multiple Alpha Approach                                                              Country Breakdown
	      	 his	helps	to	capture	wider	range	of	investment	opportunities	
       T                                                                                                                                                     28.48%                  south Korea
       from	interest	rate,	credit	and	FX	via	various	vehicles.                                                                                               16.43%                  Indonesia
                                                                                                                                                             14.85%                  hong Kong
                                                                                                                                                             13.75%                  Philippines
                                         Asia	USD	bonds	
             rates	                                                                                                                                           9.79%                  China
                                         Asia	local	currency	bonds	                                                                                           6.34%                  Malaysia
                                                                                                                                                              5.13%                  India
                                         Asia	government	and	                                                                                                 2.65%                  taiwan
             Credit
                                         corporate	bonds	                                                                                                     2.58%                  thailand


             Fx	                         Asia	currencies	                                      sector exposure (%)
                                                                                                  25%

                                                                                                  20%
5) outstanding Internal Credit scoring Model
                                                                                                  15%
       •    Internal	rating	system	developed	since	2002	to	assign	                                10%
            rating	the	non-rated	bond	issuer	in	Singapore.
                                                                                                   5%
       •    10	years	in	rating	Asian	issuers,	and	a	critical	tool	to	
            avoid	exposure	to	“bad	credits”.	                                                      0%

                                                                                                           Banking



                                                                                                                     Conglomerate



                                                                                                                                    energy



                                                                                                                                             Industrials



                                                                                                                                                            Property


                                                                                                                                                                             Quasi
                                                                                                                                                                         sovereign


                                                                                                                                                                                      sovereign



                                                                                                                                                                                                      telecom



                                                                                                                                                                                                                Utility
       •    Rely	 on	 internal	 rating	 other	 than	 purely	 rely	 on	
            external	rating	agencies.	

                                                                                               rating Breakdown (%)
FUNd detAILs
    Inception	date	            1	September	2010	(Classic	–	MD)	
                               27	May	1998	(Classic	–	Capitalisation)
                                                                                                                                                                         A           41.80%
    Currency	                  USD                                                                                                                                     Baa           35.30%
                                                                                                                                                                        Ba           16.89%
    Domicile	                  Luxembourg
                                                                                                                                                                         B           1.03%
    Dealing	frequency	         Daily	                                                                                                                                   Nr           4.97%

    Management	fee	            1.25%	per	annum
    Initial	Charge	            Up	to	5%                                                        FUNd stAtIstICs
    Realisation	Charge         Nil
                                                                                                                                                    Fund                              Benchmark
    ISIN	                      LU0531551629	(Classic	–	MD)                                        YTM                                               3.59%                             4.30%
                               LU0377063374	(Classic	–	QD)	
                                                                                                  Current	Yield                                     4.07%                             5.36%
    Fund	manager	              Adeline	Ng		                                                       Duration	(years)                                  5.21                              5.46
                                                                                                  Average	Rating                                    A3                                Baa1
                                                                                                  Aveage	Life	(years)                               6.66                              7.03


PerForMANCe IN Usd (2/29/2012)
                                                 3 months             ytd                     1 year                      3 years                          5 years                                since Inception
    Portolio                                     4.05%                3.57%                   6.71%                       56.73%                           29.73%                                 175.10%
    Benchmark                                    4.09%                3.28%                   8.69%                       49.30%                           46.98%                                 232.91%
    Portolio (Annualised)                        -                    -                       6.71%                       16.16%                           5.34%                                  7.63%
    Benchmark (Annualised)                       -                    -                       8.69%                       14.29%                           8.01%                                  9.13%
                                                 2011                 2010                    2009                        2008                             2007
    Portolio (yearly)                            3.18%                12.97%                  28.96%                      -19.75%                          5.26%
    Benchmark (yearly)                           5.54%                10.31%                  25.42%                      -6.50%                           5.51%
    Portolio (February to February)              6.71%                11.67%                  31.53%                      -19.99%                          3.44%
    Benchmark (February to February) 8.69%                            8.77%                   26.28%                      -6.33%                           5.10%



S
	 ource:	BNP	Paribas	Investment	Partners.	NAV	to	NAV,	net	of	fees	with	dividend	reinvested	in	USD.	For	more	details	concerning	the	fund’s	feature	and	fees	&	expenses,	please	refer	to	the	
Prospectus	and	Hong	Kong	Covering	Document.
The	performance	quoted	in	this	material	after	the	Effective	Date	belongs	to	Class	–	Capitalisation	share	class.	On	8	December	2008	(the	“Effective	Date”),	ABN	ABRO	Funds	Asia	Bond	Fund	
(the	“Old	Fund”)	was	merged	into	BNPP	L1	Bond	Asia	ex-Japan	(the	“New	Fund”)	by	contribution	in	kind.	The	performance/information	shown	on/before	the	Effective	Date	is	that	of	the	Old	
Fund.	The	inception	date	is	that	of	the	Old	Fund.	
The	NAV	and	return	data	from	prior	to	08/12/2008	are	based	on	the	track	record	of	the	former	ABN	AMRO	Funds	Asia	Bond	Fund.	They	do	not	give	any	indication	of	future	returns.
4	-	BNP	Paribas	L1	Bond	Asia	ex-Japan	




      disclaimers
      this material is issued and has been prepared by BNP Paribas Investment Partners Asia Limited*, a member of BNP Paribas Investment Partners (BNPP IP)**. the content
      has not been reviewed by the hong Kong securities and Futures Commission.

      this material 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. any investment advice.

      this material makes reference to certain financial instruments (the “Financial Instrument(s)”) authorized and regulated in its/their jurisdiction(s) of incorporation.

      No action has been taken which would permit the public offering of the Financial Instrument(s) in any other jurisdiction, except as indicated in the most recent
      prospectus, offering document or any other information material, as applicable, of the relevant Financial Instrument(s) where such action would be required, in
      particular, in the United states, to Us persons (as such term is defined in regulation s of the United states securities Act of 1933). Prior to any subscription in a country
      in which such Financial Instrument(s) is/are registered, investors should verify any legal constraints or restrictions there may be in connection with the subscription,
      purchase, possession or sale of the Financial Instrument(s).

      Investors considering subscribing for the Financial Instrument(s) should read carefully the most recent prospectus, offering document or other information material and
      consult the Financial Instrument(s)’ most recent financial reports. the prospectus, offering document or other information of the Financial Instrument(s) are available
      from your local BNPP IP correspondents, if any, or from the entities marketing the Financial Instrument(s).

      opinions included in this material constitute the judgment of BNP Paribas Investment Partners Asia Limited at the time specified and may be subject to change without
      notice. BNP Paribas Investment Partners Asia Limited is not obliged to update or alter the information or opinions contained within this material. 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. Please note that different types of investments, if contained within
      this material, involve varying degrees of risk and there can be no assurance that any specific investment may either be suitable, appropriate or profitable for a client or
      prospective client’s investment portfolio.

      Investments involve risks. Investments in emerging markets involve above-average risk. given the economic and market risks, there can be no assurance that the
      Financial Instrument(s) will achieve its/their investment objectives. returns may be affected by, amongst other things, investment strategies or objectives of the
      Financial Instrument(s) and material market and economic conditions, including interest rates, market terms and general market conditions. the different strategies
      applied to the Financial Instrument(s) may have a significant effect on the results portrayed in this material. Past performance is not a guide to future performance and
      the value of the investments in Financial Instrument(s) may go down as well as up. Investors may not get back the amount they originally invested.

      the performance data, as applicable, reflected in this material, do not take into account the commissions, costs incurred on the issue and redemption and taxes.

      * BNP Paribas Investment Partners Asia Limited, 30/F three exchange square, 8 Connaught Place, Central, hong Kong.

       ** “BNP Paribas Investment Partners” is the global brand name of the BNP Paribas group’s asset management services. the individual asset management entities
      within BNP Paribas Investment Partners if specified herein, are specified for information only and do not necessarily carry on business in your jurisdiction. For further
      information, please contact your locally licensed Investment Partner.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:7
posted:10/7/2012
language:English
pages:4