SFC Authorized Retail Fund

Avenue Asian High Yield Bond Fund

<Class A (HKD)> HK0000675881

NAV: 90.53

<Class B (USD)> HK0000675899

NAV: 9.04

As of 21st October 2021

  • This document intends to provide a summary of the Avenue Asian High Yield Bond Fund, a sub fund of Avenue Global OFC (“Company”), a Hong Kong domiciled public open ended fund company with variable capital with limited liability and segregated liability between sub-funds registered and incorporated under Part IVA of the Securities and Future Ordinance (Cap. 571) (“SFO”). The Company and the Sub-Fund are authorized under section 104 of the SFO. It is governed by the laws of Hong Kong.
  • Prospective Investors should also pay attention to Risk Factors as disclosed in the Fund’s offering documents, although the disclosure may not be a complete representation of all possible risks.
  • The Manager may at its discretion pay dividends on a monthly basis. Dividends may be paid out of capital or effectively out of capital of the Sub-Fund. This may result in an immediate reduction of the Net Asset Value per share.
  • The Fund primarily invests in a portfolio of fixed and floating rate bonds and other debt securities, including convertible bonds, in Asia.
  • The Fund may invest in high yielding securities which may be unrated or below investment grade and debt securities. The Fund is therefore exposed to general investment, credit, interest rate, sovereign debt, geographical concentration, downgrading, valuation, currency, volatility and liquidity, credit rating, emerging market, hedging as well as risks in investing in convertible bonds, associated with debt securities rated below investment grade or unrated and performance fee charged by the Sub-Fund.
  • The Fund primarily invests in Asia and therefore is subject to emerging market and concentration risks. Generally, investments in emerging markets are more volatile than investments in developed markets due to additional risks relating to political, social, economic, and regulatory uncertainty. Adverse development in such region may affect the value of underlying securities in which the Fund invests.
  • Convertible bonds are a hybrid between debt and equity, permitting holders to convert into shares in the company issuing the bond at a specified future date. As such, convertibles will be exposed to equity movement and greater volatility than straight bond investments. Investments in convertible bonds are subject to the same interest rate, credit risk, liquidity risk and prepayment risk associated with comparable straight bond investments.
  • The Fund may use derivatives for hedging purposes. However, usage for investment purposes will not be allowed. The Fund may suffer losses from its derivative usage and is exposed to risks such as counterparty default risk, insolvency or liquidity risk.
  • Investors should not make investment decision on the basis of this marketing material alone. Please read the offering documents for details and risk factors.

Investment Objective and Investment Strategy

The Sub-Fund is an actively managed portfolio which seeks to provide investors with income and capital growth through primarily investing in a range of fixed income securities.
 

The Sub-fund seeks to achieve the investment objective through investing primarily (i.e. at least 70% of its Net Asset Value) in high-yield fixed income securities which may include securities rated below investment grade or unrated debt securities (such as fixed rate bonds, floating rate notes, convertibles, commercial papers and certificates of deposit) issued by corporate and/or sovereign issuers in Asia (namely, PRC, Hong Kong, India, Indonesia, Korea, Macau, Malaysia, Mongolia, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam). The fixed income securities shall primarily be denominated in US dollar.This Fund is a Hong Kong SFC authorized fund* .

Documents

Performance Update


Dividend History

wdt_ID Ex-Dividend Date 除息日 Ex-Dividend Date NAV 除息日資產淨值(USD) Dividend Per Unit 每單位派息 (USD) Dividend from Capital 從資本派付股息% Net Distributable Income 可供分派淨收入%

wdt_ID Ex-Dividend Date 除息日 Ex-Dividend Date NAV 除息日資產淨值(HKD) Dividend Per Unit 每單位派息 (HKD) Dividend from Capital 從資本派付股息% Net Distributable Income 可供分派淨收入%

*Warning statement:  Please note that a positive distribution yield does not imply a positive return. Investors should not make any investment decision solely based on information contained in the table above. You should read the relevant offering document (including the key facts statement) of the fund for further details including the risk factors.

“Net Distributable Income” means (i) the net investment income (i.e. dividend income and interest income net of fees and expenses) attributable to the relevant unit class and may also include net realized gains (if any) based on unaudited management accounts. However, “net distributable income” cannot include net unrealized gains (ii) which is not declared and paid as dividends in a period of a financial year can be carried forward as net distributable income for the next period(s) within the same financial year. “Net distributable income” that has been accrued as at the end of a financial year and is declared and paid as dividends at the next distribution date immediately after that financial year end could be treated as “net distributable income” in respect of that financial year. However, “net distributable income” which has been accrued as at the end of a financial year but is not declared and paid as dividends at the next distribution date immediately after that financial year end should be included as “capital” for the next financial year (iii) where the fund may pay dividend out of gross income while charging / paying all or part of the fund’s fees and expenses to / out of capital, the amount of fees and expenses that has been paid out of capital has to be deducted from the gross investment income in order to come up with the “net distributable income”.

Investment involves risks. This product is intended for investors who are willing to bear the economic risks associated with their investments, and may loss of part or all of their investments. Investments are not deposits in, obligations of, guaranteed or insured by Avenue and are subject to investment risks. The value of investments may rise or fall as a result of changes in market and economic conditions. Past performance is not indicative of future results and current performance may be higher or lower than the performance shown on this website. Investors should carefully review and consider potential risks before making investments and should not make investment decisions solely based on the information on this website alone. Before making an investment in a fund offered by Avenue, reference should be made to the Offering Documents of that fund which includes details such as risk factors. Where you have any queries, please contact your financial advisor and seek professional advice.

*SFC registration and authorization do not represent a recommendation or endorsement of the Company or the Sub-Fund nor do they guarantee the commercial merits of the Company or the Sub-Fund or their performance. They do not mean the Company or the Sub-Fund is suitable for all investors nor do they represent an endorsement of its suitability for any particular investor or class of investors.