All investments involve risk. The value of your investment and the income from it will fluctuate and a loss of capital may occur.
Volatility is inevitable in any market. What PineBridge’s multi-asset strategies can offer is dynamic asset allocation that helps smoothen returns for investors over time so they can reach their investment goals despite the market’s ups and downs.
Sunny Ng, portfolio manager of Global Multi-Asset, gives us an insider’s view on how dynamic multi-asset works across different market cycles.
Designed to dynamically respond to different market conditions
Dual objectives: growth and downside protection
The Sub-Fund is actively managed to an outcome. The benchmark is a performance target. The Fund seeks a return equivalent to the performance target over five year rolling period but the Sub-Fund’s holdings and risk characteristics are not constrained by the 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.
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.
Equity Investing Risk: The value of shares and securities related to shares may fall due to issuer related issues, financial market dynamics and world events including economic and political changes.
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.
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.
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 and where the Sub-Fund invests in eligible China A-Shares via the Stock Connect, such investments are subject to risks including market, suspension and operational risks.
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.
Below Investment Grade Debt Securities Risk: Where Sub-Funds invest in securities rated below investment grade, also known as high yield securities, they may be subject to a greater credit, liquidity and market risk than investment grade debt securities.
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 Source: Chief Investment Officer Industry Innovation Awards 2018 winner for asset management and servicing in the multi-asset category. CIO Industry Innovation award methodology: https://www.ai-cio.com/events/2018-cio-awards-dinner/?pid=me&eday=2. Last accessed 13 February 2020; Institutional Investor, The PineBridge Global Dynamic Asset Allocation Strategy was named the top 2015 U.S. Investment Manager within the Balanced/Global Tactical Asset Allocation category by Institutional Investor, announced May 2015. The Institutional Investor US Investment Management Awards winners were chosen from a short-list of top-performing managers across a range of investment strategies identified by the magazine’s editorial and research teams in consultation with eVestment. More than 1,000 leading U.S. pension plans, foundations, endowments and other institutional investors were also surveyed and voted for the top-performing managers in each strategy over the past year. Investment Management award methodology: click here. Last accessed 13 February 2020; and BENCHMARK, announced Jan 2016. The award (Investment Manager of the Year (MPF), Best-In-Class in Aggressive Allocation) is granted to PineBridge as an investment manager in this asset class. For details of methodology, please visit: www.fundasia.net. Last accessed 13 February 2020.
Awards are for reference only. It is not indicative of the actual performance of the funds. Third-party rankings from rating publications are no guarantee of future investment success. These ratings 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. A more detailed disclosure of the criteria used in making these rankings is included in the footnotes for each award. Information contained in this material is based on sources we believe to be accurate as of the date indicated. No representation or warranty is made. We reserve the right to revise any information at any time without prior notice.