E Fund (HK) Strategic Value Bond Fund
Important Notes Fund Information Portfolio Allocation Performance Distribution History Announcements Notices Documents Distributors
Investment Objective and Strategy
Objective

The investment objective of the Sub-Fund is to generate income and long term capital growth. There can be no assurance that the Sub-Fund will achieve its investment objective.
Strategy

Primary investments

The Sub-Fund seeks to achieve its objective by investing primarily (at least 70% of its net asset value ("NAV")) in debt securities issued or traded in the global debt securities markets, which may include investment grade, non-investment grade and/or unrated debt securities with no limit on duration. The SubFund may invest up to 100% of its NAV in developed markets or emerging markets, with no set proportion between investments in developed markets and emerging markets. The Sub-Fund will invest in a portfolio of fixed and floating rate debt securities and debt securities issued by government and government-related issuers, and/or corporate entities, which may include Mainland China property developers. The Sub-Fund's investment in debt securities issued by Mainland China property developers will not be more than 30% of its NAV. The Sub-Fund may also purchase debt securities issued by supranational entities organised or supported by several national governments, such as the International Bank for Reconstruction and Development or the European Investment Bank. The Sub-Fund will not invest in perpetual bonds. The SubFund's investment horizon is not restricted geographically. It may invest up to 100% in a single region or in global debt securities. Countries or regions in which the Sub-Fund may invest in include, but are not limited to Hong Kong, Mainland China, Singapore, the European Union and the United States.

Debt securities shall include debt issued or guaranteed by governments, local authorities/public authorities and corporates denominated in hard currencies (i.e. globally traded major currencies).

The Sub-Fund may invest up to 30% of its NAV (including urban investment bonds) in Mainland China through the initiative for mutual bond market access between Hong Kong and Mainland China ("Bond Connect") or directly (also referred to as CIBM direct).

The Sub-Fund may also invest up to 30% of its NAV in "Dim Sum" bonds (i.e. bonds issued outside of Mainland China but denominated in RMB).

The weighted average duration of the debt securities in the Sub-Fund's portfolio will not exceed 5 years.

The Sub-Fund may invest up to 100% of its NAV in debt securities that are rated below investment grade or unrated. A long-term debt security is considered investment grade if its credit rating is BBB- or higher by Standard & Poor's or Fitch Ratings or Baa3 or higher by Moody's or equivalent rating as rated by an international credit rating agency. A short-term debt security is considered investment grade if its credit rating is A-3 or higher by Standard & Poor's or F3 or higher by Fitch Ratings or P-3 or higher by Moody's or equivalent rating as rated by an international credit rating agency. For split credit ratings, the highest rating shall apply.

For Mainland China debt securities, a long-term debt security is considered investment grade if it has a minimum credit rating of AA+ and a short-term debt security is considered investment grade if it has a minimum credit rating of A-1, as rated by China Chengxin International Credit Rating Co, Ltd or China Lianhe Credit Rating Co., Ltd, or equivalent ratings by one of the local rating agencies recognised by the relevant authorities in Mainland China. For split credit ratings, the highest rating shall apply.

For the purpose of the Sub-Fund, "unrated" refers to where neither the instrument itself nor its issuer has a credit rating assigned by international credit rating agencies. For a debt security which itself does not have a credit rating, the Manager will assess the debt security by reference to the credit rating of the issuer, the guarantor or the keepwell provider.

For all debt securities, the Manager will also conduct its own assessment of the credit risks of the debt securities on an ongoing basis based on quantitative and qualitative fundamentals, including but not limited to the leverage, operating margin, return on capital, interest coverage, operating cash flows, industry outlook, the competitive position and corporate governance etc. of the issuer, guarantor or keepwell provider to ensure that the debt securities in which the Sub-Fund invests is of sound credit quality.

Ancillary investments

The Sub-Fund may invest up to 30% of its NAV in (1) collateralised and/or securitised products, such as asset backed securities, mortgage backed securities and asset backed commercial papers and/or (2) onshore urban investment bonds (城投債), which are debt securities issued by Mainland China local government financing vehicles (the "LGFVs") and traded in the listed bond market and inter-bank bond market in Mainland China. These LGFVs are separate legal entities established by local governments and/or their affiliates to raise financing for public welfare investment or infrastructure projects.

The Sub-Fund may also invest up to 30% of its NAV in debt securities with loss-absorption features, which will be limited to Tier 2 capital instruments only. These instruments may be subject to contingent write-down or contingent conversion to ordinary shares on the occurrence of trigger event(s).

The Sub-Fund may also utilise financial derivative instruments ("FDIs") for hedging, efficient portfolio management and/or investment purposes to the extent permitted by Chapter 7 of the SFC's Code on Unit Trusts and Mutual Funds (the "Code").

The Sub-Fund may also invest no more than 30% of the NAV in money market funds (which are either authorised by the SFC, eligible schemes (as defined by the SFC) or non-eligible schemes (as defined by the SFC) in accordance with the Code), and may hold cash or cash equivalents, to the extent not invested in accordance with the above, for cash management purpose, except under exceptional circumstances (e.g. market crash or major crisis), the Sub-Fund may invest temporarily up to 100% of the NAV in liquid assets such as bank deposits, certificates of deposit, commercial paper and treasury bills for cash flow management. Investments in non-eligible schemes may not exceed 10% of the NAV.

The Sub-Fund may conduct securities lending, sale and repurchase and/or reverse repurchase transactions (collectively, "securities financing transactions") in aggregate for up to 50% of its NAV. Such sale and repurchase and reverse repurchase transactions will be conducted over-the-counter.

The Sub-Fund will invest no more than 10% of its NAV in debt securities that are issued and/or guaranteed by a single sovereign issuer which is below investment grade and/or unrated.

The Sub-Fund currently has no intention to invest in structured deposits, or to take any short positions. If any of this changes in the future, prior approval of the SFC will be sought (if required) and not less than one month's notice will be provided to Unitholders before the Sub-Fund enters into any such transaction.
Fund Information
HKD
RMB
USD
Class A (Acc) HKD
Class A (Dis) HKD
Class A (Acc) RMB
Class A (Dis) RMB
Class A (Acc) (Hedged) RMB
Class A (Dis) (Hedged) RMB
Class A (Acc) USD
Class A (Dis) USD
Class I (Acc) HKD
Class I (Dis) HKD
Class I (Acc) RMB
Class I (Dis) RMB
Class I (Acc) (Hedged) RMB
Class I (Dis) (Hedged) RMB
Class I (Acc) USD
Class I (Dis) USD
Manager
Inception Date
Base Currency
Management Fee (p.a.)
Subscription Fee
Switching Fee
Performance Fee
Trustee Fee
Redemption Fee
Dealing & Trading Frequency
Current NAV ()
as of 16 May,2024
Trustee
Historical NAV
ISIN
Bloomberg Ticker
Custodian
Custody Fee
*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.
Disclaimer
Copyright© 2012 - 2024. E Fund Management (Hong Kong) Co., Limited.

E Fund Management (Hong Kong) Co., Limited is the issuer of this report. This report is neither an offer nor solicitation to purchase units of the fund; applications for units may only be made on forms of application available with the Explanatory Memorandum. Investments are subject to investment risks, fund value may go up as well as down and past performance is not indicative of future performance. Investors should read carefully the Explanatory Memorandum (including the section “Risk Factors”) for the relevant risks associated with the investment in the fund before investing.
Distribution of this report may be restricted in certain jurisdictions. This report does not constitute the distribution of any information or the making of any offer or solicitation by anyone in any jurisdiction in which such distribution or offer is not authorized or to any person to whom it is unlawful to distribute such a report or make such an offer or solicitation. This report is exempted from pre-vetting and authorization by the Securities and Futures Commission of Hong Kong and has not been reviewed by the Securities and Futures Commission of Hong Kong.
SFC authorization is not a recommendation or endorsement of a scheme nor does it guarantee the commercial merits of a scheme or its performance. It does not mean the scheme is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.