Eastspring Investments Asian Bond Fund Class SGD

Eastspring Investments Asian Bond Fund Class SGD

Eastspring Investments Asian Bond Fund Class SGD Morningstar Category®: Asia Bond

Eastspring Investments Asian Bond Fund Class SGD Morningstar® Overall Rating:  (4 / 5)

Fund objective

Eastspring Investments Asian Bond Fund Class SGD invests in a diversified portfolio consisting primarily of fixed income/ debt securities issued by Asian entities or their subsidiaries. This Sub-Fund’s portfolio primarily consists of securities denominated in US dollars as well as the various Asian currencies and aims to maximize total returns through investing in fixed income/ debt securities that are rated as well as unrated.

Investment Strategy

Eastspring Investments Asian Bond Fund Class SGD will invest in a diversified portfolio consisting primarily of fixed income/ debt securities issued by Asian entities or their subsidiaries. The Sub-Fund’s portfolio primarily consists of securities denominated in US dollars as well as the various Asian currencies and aims to maximise total returns through investing in fixed income/ debt securities that are rated as well as unrated.

With effect from 2 October 2017, the Sub-Fund may:

• Invest up to 20% of its net assets in ABS, MBS, Contingent Convertible Bonds (“Cocos”), Distressed Securities and Defaulted Securities, with a limit of 10% for Distressed Securities and Defaulted Securities combined.
• In addition, it may invest up to 10% of its net assets in synthetic fixed income instruments. It may also hold up to 10% of its net assets in equity securities to the extent that such securities result from the conversion or exchange of a preferred stock or debt obligation.
• Make investments up to 10% of its net assets in Chinese onshore debt securities through the China interbank bond market direct access program and/or China Hong Kong Bond Connect (“Bond Connect”).

Eastspring Investments Asian Bond Fund Class SGD applies both a “top-down” and “bottom-up” approach in deciding its duration, credit and currency allocation strategies.

• “Top-down” analyses, which involve the analysis of economic and market developments, are carried out to determine the outlook for interest rate markets, as well as the credit and currency trends.
• Emphasis is also placed on “bottom-up” credit selection process, which is based on research and analysis of credit issuers, to identify value opportunities and avoid potential default events.

Who is Eastspring Investments Asian Bond Fund Class SGD suitable for?

Eastspring Investments Asian Bond Fund Class SGD is only suitable for investors who:

• Seek total returns.
• Are comfortable with the risks of a bond fund that invests in Asia.
• Appreciate that their capital will be at risk and that the value of their investment and any derived income may fall as well as rise.

Investment in a hedged share class is suitable for investors who already have exposure to, or have all or part of their deposits, assets and liabilities denominated in, the reference currency of the hedged share class.

Dividend or Income payout frequency: Monthly, Quarterly or Accumulating

For additional assessments on product suitability, please obtain professional advice from a qualified Financial Adviser.

What are the key risks of Eastspring Investments Asian Bond Fund Class SGD?

The value of Eastspring Investments Asian Bond Fund Class SGD and its dividends and coupons (if any) may rise or fall. You may lose some or all of your investment depending on the performance of the underlying securities. Factors that may affect the performance of these securities include, without limitation, market risks, fluctuations in interest rates and foreign exchange rates, political instability, exchange controls, changes in taxation and foreign investment policies.

Some of the key risks associated with Eastspring Investments Asian Bond Fund Class SGD are described below:

Market and Credit Risks

•  You are exposed to market risks in Asian markets.
• You are exposed to emerging markets risks.
• You are exposed to interest rate and credit risks as this is a bond fund.
• You are exposed to currency risks.
• You are exposed to the risks of currency hedging transactions for a hedged share class.
• You are exposed to counterparty risks.
• You are exposed to liquidity risks of the Sub-Fund’s investments.

Liquidity Risks

• The Sub-Fund is not listed and you can redeem your shares only on Business Days.
• Your redemption request may be deferred or suspended.

Product-Specific Risks

• You are exposed to derivatives risks.
• You are exposed to the risks of high-yield bonds the Sub-Fund may invest in.
• You are exposed to convertible bond risks.
• (With effect from 2 October 2017) You are exposed to ABS, MBS, Distressed and Defaulted Securities risks.
• (With effect from 2 October 2017) You are exposed to the risk of the China interbank bond market.
• (With effect from 2 October 2017) You are exposed to CIBM Direct Access Programme and Bond Connect risks.

Investment Fees and Charges

For a limited time (Until 31 Dec 2023), speak to a MAS licensed licensed financial adviser which has committed to offering our readers a flat 1% Subscription fee (Initial Sale Charge) for all Unit Trust Funds investment.

Learn more about the limited time offer on 1% Initial Sales Charge. Terms and conditions may apply.

Where can I get more details about Eastspring Investments Asian Bond Fund Class SGD

• Eastspring Investments Asian Bond Fund Fact Sheet (Open in New Window)
• Eastspring Investments Asian Bond Fund Product Highlight Sheet (Open in New Window)
• Speak to a licensed licensed financial adviser.

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