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MAY 2017 LionGlobal Asia Bond Fund The investment objective of the Fund is to provide total return of capital growth and income over the medium to long-term, through an actively managed portfolio of bonds, high quality interest rate securities, convertible bonds, real estate investment trusts (“REITs”), business trusts and other related securities issued by issuers predominantly in the Asian region. There is no target industry or sector. Fund Manager’s Commentar y Fund Facts Despite Moody’s China sovereign rating downgrade and market sentiment impacted by a number of company specific credit news within the high-yield (HY) credit space, Asian credit market continued its positive momentum in May 2017. JACI Composite gained +0.49% as bull flattening of the U.S. Treasury (UST) yield curve offset modest credit spread widening caused by weak HY segment performance on company specific news. In terms of split, investment grade (IG) outperformed HY, returning +0.76% while HY returned -0.50% in May 17, dragged down by the selloff in Noble Group and Reliance Communication curve during the month. Credit spreads traded wider (Composite: +4basis points (bps)) with HY spreads widening by +23bps while IG spreads were flat. The primary market remained active in May 2017: • Issuers tapped the primary market for US$19.3 billion in the month of May, more than May 2016’s print of US$18.1 billion. • Issuance was skewed towards IG issuers with IG to HY split ratio of 66% to 34%. • Chinese issuers continued to lead the issuance pipeline, accounting for about 46% of the total while Hong Kong, Indonesia and Sri Lanka ranked behind accounting for 21%, 12% and 8% of issuance respectively. • Notable issuances during the month of May include PT Perusahaan Listrik Negara’s US$2 billion dual tranche print, Sri Lanka sovereign’s US$1.5 billion 10Y print, Cheung Kong Property’s US$1.5 billion fixed-for-life perpetual securities print and Nanyang Commercial Bank’s US$1.2 billion Basel 3 AT1 bank capital note print. For the month of May, emerging market (EM) hard currency bond funds saw fund inflows of about US$4 billion on still supportive risk appetite. Year to date (YTD) cumulative fund inflows into EM hard currency bond funds remained positive +$18.3bn as at end-May 17. (end-April 17: +US$14.3bn) The outperformance in May was mainly on the back of selection, with a slight drag from marginal underweight in duration amidst US Treasury rally. Looking ahead for 2017, we believe credit spreads will range trade but further tightening seems limited in view of current tight valuations. IG bonds performance will be mainly driven by movements in UST yields. Fund Inception Date: SGD Class: 1 Dec 2009 USD Class: 1 Dec 2009 SGD-Hedged: 19 Jul 2016 Subscription Mode: Cash, SRS2 Minimum Investment: S$ / US$ 1,000 Initial Charge: Currently 3% Maximum 5% Management Fee: Currently 1.0% p.a. Maximum 2.0% p.a. Valuation Dealing: Every dealing day NAV Price: S$1.380/US$0.997 NAV Price (Hedged Class): Fund Size: S$0.984 S$48.8 million Weighted Yield to Maturity3: 4.26% Weighted Duration4: Weighted Credit 4.91 years Rating5: BB+ Currenc y Exposure of Bonds (% of N AV ) USD 99.4 CNY 0.6 100.0 1 Performance ( %) Codes Year-toDate 1-year 3-years p.a. 5-years p.a. NAV -0.4 5.8 8.1 7.2 NAV^ -5.4 0.5 6.3 6.1 Benchmark# -0.8 5.2 8.5 7.2 NAV 4.0 5.3 4.8 6.0 USD NAV^ 0.0 -1.2 3.0 4.9 Class Benchmark# 3.6 4.7 5.0 5.7 NAV 2.8 SGDNAV^ -2.3 Hedged Benchmark# Class6 3.5 Past performance is not necessarily indicative of future performance Source: Lion Global Investors Ltd / Morningstar SGD Class © Lion Global Investors Limited. Company Registration Number 198601745D. A member of the OCBC Group. All rights reserved. Since Inception p.a. 6.7 6.0 6.4 6.9 6.2 6.4 0.4 -4.6 1.7 SGD Class: SG9999006548 LGLASBS USD Class: SG9999006555 LGLASBU SGD Hedged Class: SG9999015515 LGLABSH SP Credits Rating 5 (% of N AV) Investment Grade 64.0 High Yield 36.0 100.0 LionGlobal Asia Bond Fund Countr y Allocation (% of N AV ) China Hongkong Indonesia Japan Malaysia Korea, South Thailand Australia Philippines India United Kingdom Singapore Sri Lanka Ireland Switzerland Cash Equivalent Top 10 Holdings (% of NAV ) 47.9% 19.9% 6.9% 4.1% 4.0% 3.6% 3.1% 2.3% 1.5% 1.3% 0.7% 0.7% 0.6% 0.6% 0.6% 2.5% Sector Allocation (% of NAV ) Real Estate Financial Industrial Utilities Consumer, Cyclical Energy Communications Sovereign Basic Materials Funds Cash Equivalent 32.8% 28.1% 14.5% 7.6% 5.2% 3.8% 2.5% 1.3% 1.3% 0.6% 2.5% WANDA PROPERTIES OVERSEA 2.2 4.875% 21/11/2018 CHINA LIFE INSURANCE VAR 2.1 03/07/2075 POWERLONG REAL ESTATE 1.8 HOLDINGS LTD 4.875% 15/09/2021 HUARONG FINANCE II SER EMTN VAR 1.6 PERP WANDA PROPERTIES INTL CO 7.25% 1.6 29/01/2024 BLUESTAR FIN HOLDINGS 3.5% 1.6 11/06/2018 WING LUNG BANK LTD EMTN 3.5% 1.6 07/11/2022 SINO OCEAN LND TRS FIN I (REG) 1.5 5.95% 04/02/2027 FUKOKU MUTUAL LIFE INSURANCE CO 1.5 VAR PERP NWD MTN LTD SER EMTN 4.375% 1.5 30/11/2022 # Benchmark: JP Morgan Asia Credit Index. ^ NAV: Figures include Initial Charge.(in respective fund’s currency) 1 Returns based on single pricing. Dividends are reinvested net of all charges payable upon reinvestment and in respective share class currency terms. 2 Supplementary Retirement Scheme ("SRS") monies may be used to purchase SGD Class Units only. 3 In local currency yield terms and on unhedged FX basis. Inclusive of cash & equivalents at a yield of 0.10%. 4 Inclusive of cash & equivalents which are assumed to be zero duration. 5 Includes cash & equivalents @ AA, takes the worst of S&P, Moody’s or Internal ratings and based on a straight-line model. 6 Returns are based on a single pricing basis. Return periods longer than 1 year are annualised. Returns less than 1 year are cumulative. Dividends are reinvested net of all charges payable upon reinvestment and in respective share class currency terms. The above is based on information available as of 31 May 2017, unless otherwise stated. Bonds referenced are not intended as recommendations to buy or sell. Opinions and estimates constitute our judgment and along with other portfolio data, are subject to change without notice. © Lion Global Investors Limited. Company Registration Number 198601745D. A member of the OCBC Group. All rights reserved. LionGlobal Asia Bond Fund For further information or to obtain a copy of the prospectus: Funds Hotline | +65 6417 6900 Facsimile | +65 6417 6806 www.lionglobalinvestors.com Lion Global Investors Limited 65 Chulia Street #18-01 OCBC Centre Singapore 049513 This publication is for information only. It is not an offer or solicitation for the purchase or sale of any securities/investments and does not have regard to your specific investment objectives, financial situation or particular needs. All applications for units in our funds must be made on application forms accompanying the prospectus. You should read the prospectus and Product Highlights Sheet, available from Lion Global Investors Limited (“LGI”) or any of its approved distributors, before deciding whether to subscribe for or purchase units of the Fund. Investments in the Fund are not obligations of, deposits in, guaranteed or insured by LGI or any of its affiliates and are subject to investment risks including the possible loss of the principal amount invested. The performance of the Fund is not guaranteed and the value of units in the Fund and the income accruing to the units, if any, may rise or fall. Past performance, as well as any prediction, projection, or forecast on the economy, securities market, or the economic trends of the markets are not necessarily indicative of the future or likely performance of the funds. Distribution of income and capital will be at the Managers' sole discretion. Any distributions made out of capital will reduce the net asset value of the Fund. Any opinion or view presented is subject to change without notice. Accordingly, no warranty is given and no liability is accepted for any loss arising directly or indirectly as a result of you acting on any information, opinion, forecast, or estimate contained herein. You may wish to seek advice from a financial adviser before making a commitment to purchase the Fund. In the event that you choose not to seek advice from a financial adviser, you should consider carefully whether the Fund is suitable for you. The Fund may invest in financial derivative instruments such as futures, options, warrants, forwards and swaps for hedging purposes or for the purpose of efficient portfolio management. The Manager reserves the right to make any amendments to the information at any time, without notice. © Lion Global Investors Limited. All rights reserved. LGI is a Singapore incorporated company, and is not related to any corporation or trading entity that is domiciled in Europe or the United States (other than entities owned by its holdings companies). © Lion Global Investors Limited. Company Registration Number 198601745D. A member of the OCBC Group. All rights reserved.