All investments involve risk. The value of your investment and the income from it will fluctuate and a loss of capital may occur.
Supported by strong global demand, Asian bonds are attractive because they offer relatively high yield, allowing for a combination of income and capital appreciation. Investment grade bonds are relatively more insulated from market volatility and global macro headwinds compared with other asset classes, offering yield-seeking investors a more stable investment solution.
Partner with PineBridge to access this quality market segment through a highly selective strategy.
Pure investment grade exposure
Compelling risk-adjusted returns
Rigorous credit selection seeks to maximize returns and downside protection
The Sub-Fund is actively managed, in reference to a benchmark. Many of the securities in the Sub-Fund may also be represented in the benchmark because the Investment Manager uses it as a basis for portfolio construction, but the Investment Manager has some discretion to deviate from the Benchmark composition and risk characteristics within certain risk parameters. The Sub-Fund may share some composition and risk characteristics with the Sub-Fund’s benchmark, though the Investment Manager’s discretion may result in performance that differs from the Sub-Fund’s benchmark.
Potential Investors should consider the following key risks before investing in the Sub-Fund:
Fixed Income Default Risk: The failure of an issuer or a counterparty to meet its payment obligations of a financial asset in the Sub-Fund will have a negative impact on the Sub-Fund.
Derivative Risk: A Sub-Fund may use derivative instruments for both efficient portfolio management and for investment purposes. Derivative transactions may be subject to significant volatility which may result in a loss greater than the principal amount invested.
Counterparty Risk: A Sub-Fund may have credit exposure (by virtue of position in swaps, repurchase agreements, FDI etc.) to its trading parties and may bear the risk of default of the counterparties.
Operational Risk: A Sub-Fund may risk loss resulting from process failures, inadequate procedures or controls.
Liquidity Risk: The risk that the Sub-Fund may invest some of their assets in illiquid securities and other illiquid financial instruments, in respect of which they may not always be possible to execute a buy or sell order at the desired price or to liquidate the open positon.
Interest Rate Risk: Fixed income securities are typically interest rate sensitive, therefore changes in interest rates can result in positive or negative fluctuations in the value of the assets held by the Sub-Fund.
Currency Risk - Base Currency: Securities may be denominated in currencies different from the Sub-Fund's Base Currency and there is a risk that changes in exchange rates and exchange control regulations may cause the value of the assets expressed in the Base Currency to rise or fall.
Emerging Markets Risk: Emerging markets are typically smaller, less transparent, and subject to evolving, less stable political and regulatory regimes and securities from these markets may be more expensive to transact in, bear higher risk or have lower liquidity.
Counterparty Risk – Depositary and Sub-Custodians: Custody services in many emerging markets remain undeveloped and there is a transaction and custody risk of dealing in emerging market investments.
Risks Relating to China: Risks of investing in China arise from an uncertain taxation and political regime, restrictions on inward investment, dealing in closed currency and custody arrangements which are not to the same standard as those in developed markets.
The risk factors described above should not be considered an exhaustive list of risks, which potential investors should consider before investing in the Sub-Fund. For more details on the fund’s potential risks please read the Prospectus and Key Investor Information Document at pinebridge.com/funds
1 J.P. Morgan, PineBridge Investments, as of 31 December 2020.
2 PineBridge has been awarded Top 8 and Top 7 Investment House for Asian G3 Bonds in Hong Kong in The Asset Benchmark Research Awards 2018 and 2019, respectively. Portfolio manager Arthur Lau has been awarded Top 8 Most Astute Investors in Asian Local Currency Bonds, and Highly Commended for Asia G3 Bonds in Hong Kong, while portfolio manager Omar Slim was Highly Commended, Most Astute Investor category, Asian G3 Bonds and Asian Local Currency Bonds in Singapore, The Asset Benchmark Research Awards, 2018. For details of methodology, please visit: https://www.theasset.com/research-project/asian-g3 and https://theasset.com/research-project/asian-local-currency.
Third-party rankings and recognition from rating services or publications are no guarantee of future investment success. Working with a highly rated advisor does not ensure that a client or prospective client will experience a higher level of performance or results. Awards should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. Generally, ratings, rankings, and recognition are based on information prepared and submitted by the advisor, and are part of a process in which not all advisors elect to participate.