ABF Pan Asia Bond Index Fund ("PAIF") is an exchange traded bond fund which seeks to provide investment returns that corresponds closely to the total return of the Markit iBoxx ABF Pan-Asia Index ("Index"), before fees and expenses, and its return may deviate from that of the Index.
PAIF primarily invests in local currency government and quasi-government bonds in eight Asian markets, comprising of China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore and Thailand.
Investment involves risks, including risks of exposure to bonds in both developed and emerging Asia markets. Investors may lose part or all of their investments.
PAIF is not "actively managed" and will not try to "beat" the market it tracks.
The Executives' Meeting of East Asia and Pacific Central Banks group (the "EMEAP") member central banks and monetary authorities are like any other investors in PAIF and each of them may dispose of their respective interest in the Units they hold. There are no guarantees that the EMEAP member central banks and monetary authorities will continue to be investors in PAIF.
The trading price of PAIF may differ from the underlying net asset value per share.
PAIF may not be suitable for all investors. Investors should not invest based on this marketing material only. Investors should read the PAIF's prospectus, including the risk factors, take into consideration of the product features, their own investment objectives, risk tolerance level etc and seek independent financial and professional advices as appropriate prior to making any investment.
Fee Waivers for Fixed Income ETF Investors
Fixed-income exchange traded funds to benefit from the HKEX decision to remove trading tariff and
minimum settlement fee
Hong Kong Exchanges and Clearing Limited (HKEX) has introduced fee waivers for fixed income exchange traded funds (ETFs) – a move that is aimed at enhancing investors ability to access the bond market through ETFs.
From 1 June 2021, the HKEX has eliminated the HK$0.50 trading tariff and HK$2.00 minimum stock settlement fee for all exchange trades1 on Fixed Income ETFs. Meanwhile, for a crossed exchange trade2 on Fixed Income ETFs, the waived amount is HK$1.00.
For example, investors could save up to 2.45bps3 on a 10 unit exchange trade in the ABF Pan Asia Bond Index Fund (PAIF), Asia’s largest fixed income ETF4. This saving is subject to fee waivers being passed on by brokers to end
ABF Pan Asia Bond Index Fund (PAIF)
Trade Size (units)
Potential Cost Savings for Exchange Trade (USD)
Potential Cost Savings for Exchange Trade (bps)
Potential Cost Savings for Crossed Exchange Trade (USD)
Potential Cost Savings for Crossed Exchange Trade (bps)
Source: Bloomberg Finance L.P., as of 30 June 2021
1. Source: HKEX, as of 30 June 2021. Exchange Trade is defined in the Rules of the Exchange as a trade in a CCASS Eligible Security (other than a China Connect Security) either reported to the Exchange by an Exchange Participant or effected on the Exchange.
2. Source: HKEX, as of 30 June 2021. Crossed Exchange Trade is a trade where the buy and sell of an Exchange Trade is handled by the same Exchange Participant.
3. State Street Global Advisors, as of 30 June 2021.
4. Source: Bloomberg Finance L.P., as of 30 June 2021.
The ABF Pan Asia Bond Index Fund (the 'PAIF') is an authorized unit trust in Hong Kong and Singapore only. Authorization does not imply official recommendation. Nothing contained here constitutes investment advice or should be relied on as such. Past performance of PAIF is not necessarily indicative of its future performance. Distributions from PAIF are contingent on dividends paid on underlying investments of PAIF and are not guaranteed. Listing of PAIF on the Hong Kong Stock Exchange and the Tokyo Stock Exchange does not guarantee a liquid market for the units and PAIF may be delisted from the Hong Kong Stock Exchange and/or the Tokyo Stock Exchange. Investors should read the PAIF's prospectus including the risk factors. The Prospectus for PAIF is available and may be obtained from State Street Global Advisors Singapore Limited or can be downloaded from www.abf-paif.com*.
All the information contained in this website is from SSGA and as of date indicated unless otherwise noted. The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA's express written consent. This website and the information contained herein may not be distributed and published in jurisdictions in which such distribution and publication is not permitted.
All forms of investment carry risk, including the risk of losing all of the invested amount. Such activities may not be suitable for everyone.
The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor. All material has been obtained from sources believed to be reliable. There is no representation or warranty as to the accuracy of the information and State Street shall have no liability for decisions based on such information.
Securities lending programs and the subsequent reinvestment of the posted collateral are subject to a number of risks, including the risk that the value of the investments held in the collateral may decline in value and may at any point be worth less than the original cost of that investment.
Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates rise, bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.
Diversification does not ensure a profit or guarantee against loss.
ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns. Frequent trading of ETF's could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.
The Markit iBoxx ABF Pan-Asia Index referenced herein is the property of Markit Indices GmbH and is used under license. The PAIF is not sponsored, endorsed, or promoted by Markit Indices GmbH or any of its members.
State Street Global Advisors Singapore Limited: Hong Kong address: 68/F, Two International Finance Centre, 8 Finance Street, Central, Hong Kong. Telephone: +852 2103-0288. Facsimile: +852 2103-0200.