About the fund

A best ideas, comprehensive China-centric fixed income solution investing across the full universe of onshore CNY and offshore USD bonds which can exploit relative value opportunities.

Reasons to invest

  • Provides access to one of the world’s fastest growing economies and its second largest bond market*
  • Chinese bonds are likely to see increased demand from international investors as they move to the mainstream
  • We believe Chinese bonds can provide a yield boost and diversification to developed market bond portfolios
  • Provides holistic access to the broadest opportunity set of onshore (RMB) and offshore (USD) Chinese bonds
  • Is actively managed to seek to exploit the relative value opportunities between asset classes
* Source: Bank for International Settlements, 30 September 2020.

Objective

Investment objective summary

  • The Fund aims to provide income with the opportunity for long-term capital growth primarily through investment in a portfolio of debt securities (e.g. bonds) which are issued by Chinese Borrowers. The Fund may hold debt securities issued in Mainland China, including, without limitation, the China Interbank Bond Market.
Wilfred Wee
Co-Portfolio Manager, All China Bond
Wilfred is in the Emerging Markets Fixed Income team at Ninety One and is co-portfolio manager...
Alan Siow
Co-Portfolio Manager, All China Bond
Alan is Co-head of Emerging Markets Corporate Debt and Co-portfolio manager of the Emerging Markets Corporate...

Performance & returns

Portfolio & Holdings

Date as of 30/06/2024
Index
Fund
AA
A
100
BBB
BB
B
C
Cash and near cash
*Bond ratings are Ninety One approximations.

Specific fund risks

Charges from capital

Expenses are charged to the capital account rather than to income, so capital will be reduced. This could constrain future capital and income growth. Income may be taxable.

Currency exchange

Changes in the relative values of different currencies may adversely affect the value of investments and any related income.

Default

There is a risk that the issuers of fixed income investments (e.g. bonds) may not be able to meet interest payments nor repay the money they have borrowed. The worse the credit quality of the issuer, the greater the risk of default and therefore investment loss.

Derivatives

The use of derivatives may increase overall risk by magnifying the effect of both gains and losses leading to large changes in value and potentially large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss.

Emerging market (inc. China)

These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems.

Geographic / Sector

Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean that, in certain market conditions, the value of the portfolio may decrease whilst more broadly-invested portfolios might grow.

Government securities exposure

The Fund may invest more than 35% of its assets in securities issued or guaranteed by a permitted sovereign entity, as defined in the definitions section of the Fund’s prospectus.

Income Allocation

On some investments any gains may be allocated to income rather than capital. This may cause greater fluctuations in the capital value of the fund. Income may be taxable.

Interest rate

The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise.

Distributions & Yields

We recommend that you seek independent financial advice to ensure this Fund is suitable for your investment needs.

All the information contained in this communication is believed to be reliable but may be inaccurate or incomplete. Any opinions stated are honestly held but are not guaranteed and should not be relied upon.

It is not an invitation to make an investment nor does it constitute an offer for sale. Any decision to invest in the Fund should be made after reviewing the full offering documentation, including the Prospectus, which sets out the fund specific risks. Fund prices and English language copies of the Prospectus, annual and semi-annual Report & Accounts, Articles of Incorporation and where relevant, the local language copies of the Key Investor Information Documents (KIID) and Key Information Documents (KID), may be obtained from www.ninetyone.com.

Performance data source: © Morningstar, NAV based, (net of fees, excluding initial charges), total return, in the share class dealing currency. Performance would be lower had initial charges been included as an initial charge of up to 5% (10% for S shares) may be applied to your investment. This means that for an investment of $1,000, where the initial charge equals 5%, $950 ($900 for S shares) would actually be invested in the Fund. Returns to individual investors will vary in accordance with their personal tax status and tax domicile.

PRIIPs Performance scenarios and Risk Profile SRI data source: Broadridge Ireland Limited.

For a full description of the Morningstar rating for funds, please see the attached guide. A rating is not a recommendation to buy, sell or hold a fund.

The overall rating for a fund, often called the ‘star rating’, is a third party rating derived from a quantitative methodology that rates funds based on an enhanced Morningstar™ Risk-Adjusted Return measure. ‘Star ratings’ run from 1 star (lowest) to 5 stars (highest) and are reviewed at the end of every calendar month. The various funds are ranked by their Morningstar™ Risk-Adjusted Return scores and relevant stars are assigned. It is important to note that individual shareclasses of each fund are evaluated separately and their ratings may differ depending on the launch date, fees and expenses relevant to the shareclass. In order to achieve a rating the share class of a fund must have a minimum three-year performance track record.

The portfolio may change significantly over a short period of time. This is not a buy or sell recommendation for any particular security. Figures may not always sum to 100 due to rounding. 

For an explanation of statistical terms, please see our glossary.