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Allianz Yield Plus Fund

Bond Funds | Global

  • The Fund aims at long-term income and enhanced return by investing directly and indirectly in global interest bearing securities.
  • The Fund is exposed to significant risks which include investment/general market, investing in other underlying collective investment schemes and exchange traded funds, asset allocation, sovereign debt, creditworthiness/credit rating/downgrading, counterparty, interest rate changes, valuation, volatility and liquidity, and currency.
  • The Fund may invest in financial derivative instruments (“FDI”) which may expose to higher leverage, counterparty, liquidity, valuation, volatility, market and over the counter transaction risks. The Fund’s net derivative exposure may be up to 50% of the Fund’s net asset value.
  • This investment may involve risks that could result in loss of part or entire amount of investors’ investment.
  • In making investment decisions, investors should not rely solely on this material.
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Market Insights

1. Inflation does not appear to be a risk factor in the short term even though structural factors remain which may lead to higher levels in the longer term
  • Major central banks are in monetary easing mode. The inflation risks that have built up in recent years are finally easing, but longer-term inflation uncertainty remains due to three structural factors — Deglobalisation, Demographics, and Decarbonisation.
Source: AllianzGI. , 2024.
2. Amidst global uncertainty, prudence is key
  • The market has witnessed a slowdown in economic growth around the world. In the fourth quarter of 2024, with inflation pressures fading and major central banks starting the interest rate cutting cycles, the market focus has transitioned from inflation risk to growth risk.
  • The prevailing soft-landing narrative will support risk assets into the fourth quarter of 2024. The US election and interest rate cuts by the Federal Reserve will also provide support for both fixed income and equity markets.
  • However, we expect the market to gradually shift from a “buy the dip” to a “sell the rally” mentality as the medium-term picture becomes less clear. The uncertainty ahead warrants a prudent investment approach.
Source: US. 10 Year- Treasury Bond, data as of 1 October 2024
3. Navigate market divergence with active management
  • Uncertainties surrounding economic growth, monetary policies and geopolitical developments present challenges for investors, yet also open up opportunities.
  • As individual companies, sectors and economies embark on increasingly divergent growth paths, bond prices will likely develop in different directions depending on the securities’ ratings. Diversification, flexibility and active investing will therefore become increasingly important.

Fund Features

1. Benefiting from a rate cut environment
  • The fund invests directly or indirectly in global interest-bearing securities and can flexibly allocate up to 5% of its NAV to global equities.
  • With market expectations of ongoing monetary easing and softer macro data, sovereign bonds are expected to be supported.
  • Investment grade corporate debt continues to provide a source of extra income in a context of generally strong corporate earnings, moderate default rate forecast and monetary policy easing.
  • The fund is not bound by geographical limitations and can broadly invest across the markets of the United States, Europe and Asia, capturing a diverse range of income opportunities.
*Liquidity includes cash and FX hedging positions.

Source: IDS, as of 30 June 2024. The above analysis looks through the underlying fund and ETF holdings of the Allianz Yield Plus Fund.

The information above is provided for illustrative purposes only to demonstrate the Fund’s investment strategy, it should not be considered a recommendation to purchase or sell any particular security or strategy or an investment advice. There is no assurance that any securities discussed herein will remain in the Fund at the time you receive this document. Past performance is not indicative of future results. While best efforts are used in compiling the information, the company expressly assumes no warranty of any kind, actual or implied, for the accuracy, completeness and timeliness of the information.

Please refer to the offering document for further details.
2. Seeking potential income with a diversified portfolio
  • Adopting a diversified investment strategy, we invest in a range of fixed-income securities across various regions and bond types. This may include U.S. government bonds, Hong Kong government bonds, and bonds issued by listed or private companies. The portfolio maintains an average credit quality rating of AA^, which helps manage risk in navigating uncertain investment environments. Such a diversified fixed income portfolio creates potential income opportunities for investors.
  • The fund may also invest in global equities (up to 5% of its NAV).
^ Source: Allianz Global Investors, 30 June 2024. Average Rating refers to a measure of creditworthiness of the underlying securities of the portfolio and this may change over time. The portfolio itself has not been rated by an independent rating agency. For the purpose of this document, the letter rating, which is based on the best rating among S&P, Moody’s and Fitch, is provided to indicate the credit rating of the portfolio’s underlying bonds and generally ranges from AAA (highest) to D (lowest). Unrated bonds are excluded from the calculation, while Cash is treated as an investment with AAA rating. The Credit Quality is provided for informational purposes only.
*Net asset value
Source: Allianz Global Investors. During any given stage of the investment process, the selection criteria may vary from those shown above. The diagrams and statements above reflect the typical investment process applied to this strategy. At any given time, other criteria may affect the investment process. There is no guarantee that these investment strategies and processes will be effective under all market conditions and investors should evaluate their ability to invest for a long-term based on their individual risk profile especially during periods of downturn in the market.
3. Rigorous process tailored to investor needs
  • While the fund performance may be influenced by market fluctuations, its sensitivity to interest rate environment is relatively lower compared to typical long-duration bond funds, making it an alternative investment option.
  • With robust experience in multi-asset management, we aim to control portfolio volatility at lower levels through active asset allocation and rigorous risk management.
Source: Allianz Global Investors. Data as at 30 June 2024.
¹Team data as at 1 July 2024. Multi Asset AUM include Overlay and Advisory SFDR: (EU) Sustainable Financial Disclosure Regulation. Information accurate at time of publishing.

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#Mox Bank Limited have teamed up with Allianz Global Investors Asia Pacific Limited (AllianzGI) to offer customers access to this fund. Mox Bank Limited is not affiliated with Allianz Global Investors Asia Pacific Limited.

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  • Allianz Global Investors Fund (“AGIF”)

    • Allianz Global Investors Fund (“AGIF”) as an umbrella fund under the UCITS regulations has within it different sub-funds investing in fixed income securities, equities, and derivative instruments, each with a different investment objective and/or risk profile.

    • All sub-funds (“Sub-Funds”) may invest in financial derivative instruments (“FDI”) which may expose to higher leverage, counterparty, liquidity, valuation, volatility, market and over the counter transaction risks. A Sub-Fund’s net derivative exposure may be up to 50% of its NAV. 

    • Some Sub-Funds as part of their investments may invest in any one or a combination of the instruments such as fixed income securities, emerging market securities, and/or mortgage-backed securities, asset-backed securities, property-backed securities (especially REITs) and/or structured products and/or FDI, exposing to various potential risks (including leverage, counterparty, liquidity, valuation, volatility, market, fluctuations in the value of and the rental income received in respect of the underlying property, and over the counter transaction risks). 

    • Some Sub-Funds may invest in single countries or industry sectors (in particular small/mid cap companies) which may reduce risk diversification. Some Sub-Funds are exposed to significant risks which include investment/general market, country and region, emerging market (such as Mainland China), creditworthiness/credit rating/downgrading, default, asset allocation, interest rate, volatility and liquidity, counterparty, sovereign debt, valuation, credit rating agency, company-specific, currency  (in particular RMB), RMB debt securities and Mainland China tax risks. 

    • Some Sub-Funds may invest in convertible bonds, high-yield, non-investment grade investments and unrated securities that may subject to higher risks (include volatility, loss of principal and interest, creditworthiness and downgrading, default, interest rate, general market and liquidity risks) and therefore may adversely impact the net asset value of the Sub-Funds. Convertibles will be exposed prepayment risk, equity movement and greater volatility than straight bond investments.

    • Some Sub-Funds may invest a significant portion of the assets in interest-bearing securities issued or guaranteed by a non-investment grade sovereign issuer (e.g. Philippines) and is subject to higher risks of liquidity, credit, concentration and default of the sovereign issuer as well as greater volatility and higher risk profile that may result in significant losses to the investors. 

    • Some Sub-Funds may invest in European countries. The economic and financial difficulties in Europe may get worse and adversely affect the Sub-Funds (such as increased volatility, liquidity and currency risks associated with investments in Europe).

    • Some Sub-Funds may invest in the China A-Shares market, China B-Shares market and/or debt securities directly  via the Stock Connect or the China Interbank Bond Market or Bond Connect and or other foreign access regimes and/or other permitted means and/or indirectly through all eligible instruments the qualified foreign institutional investor program regime and thus is subject to the associated risks (including quota limitations, change in rule and regulations, repatriation of the Fund’s monies, trade restrictions, clearing and settlement, China market volatility and uncertainty, China market volatility and uncertainty, potential clearing and/or settlement difficulties and, change in economic, social and political policy in the PRC and taxation Mainland China tax risks).  Investing in RMB share classes is also exposed to RMB currency risks and adverse impact on the share classes due to currency depreciation.

    • Some Sub-Funds may adopt the following strategies, Sustainable and Responsible Investment Strategy, SDG-Aligned Strategy, Sustainability Key Performance Indicator Strategy (Relative), Green Bond Strategy, Multi Asset Sustainable Strategy, Sustainability Key Performance Indicator Strategy (Absolute Threshold), Environment, Social and Governance (“ESG”) Score Strategy, and Sustainability Key Performance Indicator Strategy (Absolute). The Sub-Funds may be exposed to sustainable investment risks relating to the strategies (such as foregoing opportunities to buy certain securities when it might otherwise be advantageous to do so, selling securities when it might be disadvantageous to do so, and/or relying on information and data from third party ESG research data providers and internal analyses which may be subjective, incomplete, inaccurate or unavailable and/or reducing risk diversifications compared to broadly based funds) which may result in the Sub-Fund being more volatile and have adverse impact on the performance of the Sub-Fund and consequently adversely affect an investor’s investment in the Sub-Fund. Also, some Sub-Funds may be particularly focusing on the GHG efficiency of the investee companies rather than their financial performance which may have an adverse impact on the Fund’s performance.

    • Some Sub-Funds may invest in share class with fixed distribution percentage (Class AMf). Investors should note that fixed distribution percentage is not guaranteed. The share class is not an alternative to fixed interest paying investment. The percentage of distributions paid by these share classes is unrelated to expected or past income or returns of these share classes or the Sub-Funds. Distribution will continue even the Sub-Fund has negative returns and may adversely impact the net asset value of the Sub-Fund.  Positive distribution yield does not imply positive return.

    • Investment involves risks that could result in loss of part or entire amount of investors’ investment.

    • In making investment decisions, investors should not rely solely on this [website/material].

    Note: Dividend payments may, at the sole discretion of the Investment Manager, be made out of the Sub-Fund’s capital or effectively out of the Sub-Fund’s capital which represents a return or withdrawal of part of the amount investors originally invested and/or capital gains attributable to the original investment. This may result in an immediate decrease in the NAV per share and the capital of the Sub-Fund available for investment in the future and capital growth may be reduced, in particular for hedged share classes for which the distribution amount and NAV of any hedged share classes (HSC) may be adversely affected by differences in the interests rates of the reference currency of the HSC and the base currency of the respective Sub-Fund. Dividend payments are applicable for Class A/AM/AMg/AMi/AMgi/AQ Dis (Annually/Monthly/Quarterly distribution) and for reference only but not guaranteed.  Positive distribution yield does not imply positive return. For details, please refer to the Sub-Fund’s distribution policy disclosed in the offering documents.


    Allianz Global Investors Asia Fund

    • Allianz Global Investors Asia Fund (the “Trust”) is an umbrella unit trust constituted under the laws of Hong Kong pursuant to the Trust Deed. Allianz Thematic Income and Allianz Selection Income and Growth and Allianz Yield Plus Fund are the sub-funds of the Trust (each a “Sub-Fund”) investing in fixed income securities, equities and derivative instrument, each with a different investment objective and/or risk profile.

    • Some Sub-Funds are exposed to significant risks which include investment/general market, company-specific, emerging market, creditworthiness/credit rating/downgrading, default, volatility and liquidity, valuation, sovereign debt, thematic concentration, thematic-based investment strategy, counterparty, interest rate changes, country and region, asset allocation risks and currency (such as exchange controls, in particular RMB), and the adverse impact on RMB share classes due to currency depreciation.  

    • Some Sub-Funds may invest in other underlying collective schemes and exchange traded funds. Investing in exchange traded funds may expose to additional risks such as passive investment, tracking error, underlying index, trading and termination. While investing in other underlying collective schemes (“CIS”) may subject to the risks associated to such CIS. 

    • Some Sub-Funds may invest in high-yield (non-investment grade and unrated) investments and/or convertible bonds which may subject to higher risks, such as volatility, creditworthiness, default, interest rate changes, general market and liquidity risks and therefore may  adversely impact the net asset value of the Fund. Convertibles may also expose to risks such as prepayment, equity movement, and greater volatility than straight bond investments.

    • All Sub-Funds may invest in financial derivative instruments (“FDI”) which may expose to higher leverage, counterparty, liquidity, valuation, volatility, market and over the counter transaction risks.  The use of derivatives may result in losses to the Sub-Funds which are greater than the amount originally invested. A Sub-Fund’s net derivative exposure may be up to 50% of its NAV.

    • These investments may involve risks that could result in loss of part or entire amount of investors’ investment.

    • In making investment decisions, investors should not rely solely on this website.

    Note: Dividend payments may, at the sole discretion of the Investment Manager, be made out of the Sub-Fund’s income and/or capital which in the latter case represents a return or withdrawal of part of the amount investors originally invested and/or capital gains attributable to the original investment. This may result in an immediate decrease in the NAV per distribution unit and the capital of the Sub-Fund available for investment in the future and capital growth may be reduced, in particular for hedged share classes for which the distribution amount and NAV of any hedged share classes (HSC) may be adversely affected by differences in the interests rates of the reference currency of the HSC and the base currency of the Sub-Fund. Dividend payments are applicable for Class A/AM/AMg/AMi/AMgi Dis (Annually/Monthly distribution) and for reference only but not guaranteed.  Positive distribution yield does not imply positive return. For details, please refer to the Sub-Fund’s distribution policy disclosed in the offering documents.

     

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