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BEA Union Investment Asian Bond and Currency Fund
(a Sub-fund of the BEA Union Investment Series)
IMPORTANT
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The BEA Union Investment Asian Bond and Currency Fund (the "Fund") aims to help you enjoy regular interest income, capital gains, and currency appreciation from an actively managed portfolio of debt securities denominated in Asian or other currencies and primarily issued by Asian governments and corporate entities. Debt securities invested by the Fund may include convertible, exchangeable and non-exchangeable and non-convertible debt securities; fixed and floating rate bonds; zero coupon and discount bonds; transferable notes; commercial paper; certificates of deposits of variable or fixed interest rates listed, traded, or dealt in regulated markets or exchanges. These debt securities may include below investment grade and non-rated debt securities. The Fund may also invest in money market instruments, unit trusts, and cash. |
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The Fund invests in emerging markets, which are subject to higher liquidity and volatility risks. |
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The Fund may invest in lower-rated fixed income instruments, including below investment grade and non-rated debt securities, which are subject to greater credit and liquidity risks than higher-rated securities. |
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The Fund may enter into futures contracts and currency forward contracts for hedging and investment purposes. For futures contracts and currency forward contracts entered into on an unhedged basis, the net total aggregate value of contract prices will not exceed 20% of the total net asset value of the Fund. Given the leverage effect embedded in futures and currency forward contracts, the Fund may be exposed to significant losses. |
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The investment decision is yours, but you should not invest in the Fund unless the intermediary who sells it to you has explained to you that the Fund is suitable for you and why, including how buying it would be consistent with your investment objective. |
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Investors should not make an investment decision based solely on this webpage. | |
The summary provided herewith is only a brief introduction of BEA Union Investment Asian Bond and Currency Fund (the "Fund"). You have to refer to and carefully read the Explanatory Memorandum of the Fund for all relevant details and interpretation of terminology before you make investment decision to subscribe for Units of the Fund. Copies of the Explanatory Memorandum of the Fund can be obtained at your nearest Bank of East Asia Branch.
Investment Objective
Why Invest in the Fund?
about the Fund
When Can a Fund Transaction Be Made?
How Can I Track the Fund's Performance?
How Do I Subscribe to or Redeem Fund Units?
Fund Facts
monthly fund factsheet
Fund price
Investment Manager
FINANCIAL STATEMENTS
Investment Objective
The BEA Union Investment Asian Bond and Currency Fund (the "Fund") aims to help you enjoy regular interest income, capital gains, and currency appreciation from an actively managed portfolio of debt securities denominated in Asian or other currencies and primarily issued by Asian governments and corporate entities. Debt securities invested by the Fund may include convertible, exchangeable and non-exchangeable and non-convertible debt securities; fixed and floating rate bonds; zero coupon and discount bonds; transferable notes; commercial paper; certificates of deposits of variable or fixed interest rates listed, traded, or dealt in regulated markets or exchanges. These debt securities may include below investment grade and non-rated debt securities. The Fund may also invest in money market instruments, unit trusts, and cash.
Why Invest in THE Fund?
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Improved Conditions in the Asian Credit Market |
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Asian countries will continue to expand fiscal spending, which should be positive for Asian economies. Asian credit spreads have continued to tighten significantly as the risk premium is considered to have been greatly reduced by strong intervention by governments around the world. There are signs that demand for high-yield credit is slowly increasing. |
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Asia ˇV An Important Player in the World Economy |
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With the US and Europe experiencing economic contraction, investors are looking to increase their non-US investments to diversify risk. Thus, funds have been continually pouring into the Asian region. Investors have remained highly optimistic on the fiscal expansion of Mainland China, which is expected to be a major driving force behind regional growth in the near future. Asia has become an important player in the world economy and investment in the Fund could enable investors to benefit from the regionˇ¦s long-term growth. |
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Benefits of Asian Currency Appreciation |
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Asian currencies have gained strong upside momentum against the US dollar as global asset prices rallied on the back of the announcement of the Fedˇ¦s outright purchase of US Treasury bonds. This US Government action is deemed to be an action of money printing, which is not good for the value of US dollar in the long term. Thus, the Fund diversifies into non-USD assets conservatively to capture currency appreciation. |
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Attractive Diversification Benefits |
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The Fund serves as a cost-effective way for investors to invest in a diversified portfolio of globally marketable debt with a focus on Asian countries. The Fund provides investment opportunities other than equity and property, and returns (bond price and currency appreciation plus coupon) are expected to have a low correlation to the performance of the equity and property markets. The Fund provides attractive diversification benefits to investors seeking to improve their risk-adjusted returns. |
ABOUT the Fund
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No Bid/Ask Spread for Subscription and Redemption |
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The net asset value per Unit of the Fund on the relevant Dealing Day will be used as the issue price and realisation price of the Fund, i.e. no bid/ask spread will be involved. Please refer to the "Fund Facts" below for details on other fees and charges. |
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Realisation Charge Waived for Class A Unitholders |
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The Realisation Charge will be waived# for Class A Unitholders of the Fund who redeem their Units. Partial redemption can be made, provided that the Unitholder maintains a minimum holding of USD2,000. |
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Switching Investment Strategy |
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If Unitholders wish to change their investment strategy, it is possible to switch the Units of any Fund class to Units of another Investment Fund of the same class within the BEA Union Investment Series on the same Dealing Day. |
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Distribution Policy |
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Investors may enjoy dividend distribution if they invest in Class A (Distributing) and Class B (Distributing) Units. An interim distribution (if any) will be performed in respect of three 3-month periods ending on 31st March, 30th June, and 30th September each year, and a final distribution (if any) will be performed in respect of the 3-month period ending on 31st December of each year. However, the manager may at his/her discretion decide whether or not to perform a distribution, and to determine the frequency and amount of a distribution. For details, please refer to the Explanatory Memorandum. |
When Can a Fund Transaction Be Made?
Units of the Fund may be subscribed for or redeemed on any business day in Hong Kong, except on Saturdays, Sundays, and public holidays.
How Can I Track the Fund's Performance?
The Fund price (i.e. net asset value per Unit) will be published daily in the South China Morning Post and the Hong Kong Economic Times. In addition, you can also check the fund pirce via here.
How Do I Subscribe to or Redeem Fund Units?
You can subscribe to or redeem units of the Fund at any BEA branch on any business day. As an added convenience, customers can invest in the Fund via the Cyberfund Centre†, which can be accessed 24 hours a day through Cyberbanking.
† To enjoy this service, customers must hold a Cyberbanking account.
FUND FACTS
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Class A Units |
Class B Units |
| Fund Inception Date |
29th August, 2008 |
| Fund Base Currency |
US Dollar |
| Minimum Initial Subscription |
US$2,000* |
| Minimum Additional Subscription |
US$1,000* |
| Minimum Holding |
US$2,000* |
| Management Fee |
0.75% p.a. |
0.85% p.a. |
| Trustee Fee |
0.125% p.a. |
| Preliminary Charge |
Up to 5% of issue price |
Nil |
| Realisation Charge |
Waived# |
Up to 3% of the realisation price
- Holding period of less than 2 years: 3%
- Holding period of 2 years or more but less than 4 years: 2%
- Holding period of 4 years or more: Nil |
| Distribution Policy^ |
- Class A (Accumulating) Units and Class B (Accumulating) Units: no distribution
- Class A (Distributing) Units and Class B (Distributing) Units: net income may be distributed |
| Investment Manager |
BEA Union Investment Management Limited |
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(i) Inclusive of the preliminary charge (for Class A Units only)
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The Manager may at his / her discretion agree to accept applications for investment of smaller amounts. | |
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Pursuant to the Trust Deed of the Fund, the Manager is entitled to levy a realisation charge on the realisation of Class A Units of up to 0.5% of the realisation price of such Units. The Manager currently agrees to waive such realisation charge. |
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For details please refer to the ˇ§Distributionsˇ¨ paragraph of the Fund in the Explanatory Memorandum. |
Investment Manager
BEA Union Investment Management Limited ("BEA Union Investment") is the asset management joint venture between The Bank of East Asia ("BEA") and Union Asset Management Holding AG ("Union Investment"). BEA Union Investment is the sole asset investment centre for both BEA and Union Investment in Asia, with a combined investment team consisting of over 200 seasoned investment professionals based in Hong Kong and Frankfurt. We add value through the use of an active investment process and global research resources, and provide a wide range of quality and innovative investment products.
FINANCIAL STATEMENTS
2009 interim report
2009 annual report
NOTES AND WARNING STATEMENT TO INVESTORS
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Investments in the Fund are subject to investment risks, including the possible loss of the principal amount invested. For full details and risk factors of the Fund, please refer to the Explanatory Memorandum of the Fund. Investors should also read the Explanatory Memorandum of the Fund for detailed information prior to any subscription. |
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The information contained herein is only a brief introduction to the Fund. It does not constitute an offer, recommendation, or solicitation to buy or sell any securities or financial instruments. |
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Investors should be aware that the price of units may go down as well as up as the investments of the Fund are subject to market fluctuations and to the risks inherent in all investments. |
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Performance figures of the Fund are for illustrative purposes only and are not indicative of the actual return likely to be achieved. |
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The Fund has been authorised by the Securities and Futures Commission in Hong Kong. However, such authorisation does not imply official recommendation of the Fund. |
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This webpage has not been reviewed by the Securities and Futures Commission in Hong Kong. |
Issuer: BEA Union Investment Management Limited.
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For details, please visit your nearest BEA location. With over 130 branches and SupremeGold Centres, BEA operates one of the largest banking networks in Hong Kong.
Enquiry Hotline: 2211 1311 |
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