BNP PARIBAS ASSET MANAGEMENT - TM Diversification 1440x300

BNP Paribas A Fund European Multi-Asset Income

  • The fund primarily invests in various European asset classes – equities, real estate securities, corporate bonds, high-yield bonds, government bonds, convertible bonds and cash instruments.
  • Derivatives will be used for hedging purposes and efficient portfolio management. These types of investments can involve material additional risks, for example counterparty default risk or insolvency, volatility risk, liquidity risk, leverage risk and valuation risk, and may expose the fund to significant losses.
  • Investment in the fund involves risks. Please refer to the Singapore offering documents for further information (including the risk factors) about the fund.
  • The fund intends to make regular distributions to investors and, if its income is insufficient to cover these payments, these payments may reduce the fund’s capital.
  • Investors should not solely rely on this document to make any investment decision.

Are you searching for a regular income stream in a low-yield environment?

Are you looking for a smoother ride in generating income?

Are you a traditional equity investor seeking lower volatility investments?

Do you believe Europe’s growth momentum is on the rise?

Explore what BNP Paribas A Fund European Multi-Asset Income has to offer

 

WHY MULTI-ASSET INCOME

A low yield environment

  • Demand for a regular income stream has rarely been so strong, yet historically low bond yields make it difficult for investors to achieve this objective via low-risk fixed income assets.

US-10-Year-Yields---March-2018

Source: Thomson Reuters, 30 March 2018

  • On the other hand, opting to chase returns and rotate assets into equities typically come at the expense of much higher risk, as equity markets tend to be volatile.

 

WHY INVEST IN BNP PARIBAS A FUND EUROPEAN MULTI-ASSET INCOME?

1. Receive monthly payout by investing in monthly distribution share classes

The fund enables investors to enjoy a fixed monthly dividend payment of 0.51 per share in the Classic RH AUD MD share class, equivalent to a 6.75% annual dividend rate; 0.56 per share in the Classic RH USD MD equivalent to 7.50% annual dividend rate; 0.54 per share in the Classic RH CAD MD share classes, equivalent to 7.25% annual dividend rate; 0.50 per share in the Classic RH HKD MD share class, equivalent to 6.75% annual dividend rate; and 0.33 per share in the Classic MD share class, equivalent to 4.50% annual dividend rate. The aforementioned annual dividend rates are only applicable for 2019 and are valued with reference to the net asset value of the corresponding monthly dividend share classes as at 31 October 2018; and decomposed into a fixed monthly payment for a 12-month period in 2019. Dividends may be paid out of capital. A positive distribution yield does not imply a positive return. Distributions may be paid out of capital which may result in an immediate reduction of the fund’s net asset value per share. The Board of Directors has the sole discretion to vary the rate and/or frequency of distribution subject to one month’s prior notice to shareholders.

The fund contains monthly dividend share classes with a fixed monthly dividend amount (which is calculated with an annual dividend rate to be determined by the investment manager with reference to the net asset value of the relevant monthly dividend share classes as at 31 October each year and decomposed into a fixed monthly dividend payment for the 12-month period in the following calendar year). While there will be no variations month on month and investors will receive a fixed dividend amount on a monthly basis, the monthly dividend rate with reference to the prevailing net asset value of the share classes concerned will vary.

2. Europe is still looking attractive#

  • Monetary policy remains accommodative may further support European assets
  • Stable inflation and high Purchasing Manager’s Index

#Please note that any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the current or future or likely performance of the fund. The above views represent our judgement as at March 2018 and may subject to change without notice.

3. Diversification across various European asset classes

No one can predict with any certainty which asset class will perform best. Hence, we believe that a well-diversified portfolio increases the potential for higher risk-adjusted returns compared to investing in a single asset class.EMAI-Asset-Classes

*Emerging bonds refers to Central Europe, Eastern Europe, Middle East & Africa (CEMEA) bonds.

4. Flexibility to potentially seek out the most attractive yield

We employ a flexible asset allocation approach by adjusting the asset class mix and weightage, with the aim of achieving an optimal balance of risk and return. These asset allocation decisions are driven by our Multi-Asset, Quantitative and Solutions (MAQS) investment group’s assessment on valuation and macroeconomic views.

ClementDupire_photo-(2)“We believe that allocating flexibly across various asset classes can potentially generate income while limiting risk relative to a fixed allocation.*

*This should not be confused with and does not imply low or no risk.

5. Combined expertise of highly experienced teams from a European powerhouse

Our Multi-Asset, Quantitative and Solutions (MAQS) investment group dedicated to asset allocation focuses on achieving an optimal asset class blend. This is combined with the security selection expertise of our asset class specialists.

 

Disclaimer: This material has been prepared and is issued by BNP PARIBAS ASSET MANAGEMENT Singapore Limited (BNPP AMS). It is regulated by the Monetary Authority of Singapore (MAS) and holds a Capital Markets Services Licence for the regulated activity – Fund Management. It has as its principal place of business 10 Collyer Quay, #15-01 Ocean Financial Centre, Singapore 049315 (Company Registration No:199308471D). The content has not been reviewed by the MAS. This material is produced for information purposes only and does not constitute: 1. an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or 2. any investment advice. The information contained in this document is provided without prior knowledge of your circumstances, including your financial position, risk profile and investment objectives. Investors should consult their own professional advisors in respect of investment, legal, accounting, domicile and tax advice prior to investing in the fund in order to make an independent determination of the suitability and consequences thereof. Investors considering subscribing for the fund should read carefully the most recent prospectus as well as the Product Highlight Sheet and any other relevant offering document(s), available from BNPP IPS or any of its appointed distributors, before investing. Opinions included in this material constitute the judgment of BNPP AMS at the time specified and may be subject to change without notice. BNPP AMS is not obliged to update or alter the information or opinions contained within this material. While all efforts are taken to ensure the accuracy of the information and data included in this material, no warranty is given and no liability shall be accepted in the event of any error, inaccuracy or discrepancy of such information and data. Investments involve risks. Given the economic and market risks, there can be no assurance that the fund will achieve its investment objectives. Returns may be affected by, amongst other things, investment strategies or objectives of the fund and material market and economic conditions, including interest rates, market terms and general market conditions. Past performance and any economic and market trends/forecasts are not a guide to current or future performance and the value of the investments in the fund may go down as well as up. Investors may not get back the amount they originally invested.

 

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