• 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
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.
BNPP L1 Bond Asia ex Japan
Asset Class* Annualized Annualized sharpe
return volatility ratio 30%
Asian Bond (USD) 8.1% 7.0% 0.94%
Asian Local Currency 8.0% 6.5% 1.01%
Global Emerging 9.4% 9.7% 0.86% -10%
Market Bond -20%
US Treasury (> 1 year) 5.8% 5.0% 0.79%
World Government 7.1% 7.5% 0.72%
US High Yield Bond 6.4% 6.1% 0.79%
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%
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
Asia USD bonds
rates 9.79% China
Asia local currency bonds 6.34% Malaysia
Asia government and 2.65% taiwan
corporate bonds 2.58% thailand
Fx Asia currencies sector exposure (%)
5) outstanding Internal Credit scoring Model
• Internal rating system developed since 2002 to assign 10%
rating the non-rated bond issuer in Singapore.
• 10 years in rating Asian issuers, and a critical tool to
avoid exposure to “bad credits”. 0%
• Rely on internal rating other than purely rely on
external rating agencies.
rating Breakdown (%)
Inception date 1 September 2010 (Classic – MD)
27 May 1998 (Classic – Capitalisation)
Currency USD Baa 35.30%
Dealing frequency Daily Nr 4.97%
Management fee 1.25% per annum
Initial Charge Up to 5% FUNd stAtIstICs
Realisation Charge Nil
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%
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
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.