Authorized Participant An Authorized Participant refers to brokers or dealers who have entered into a Participation Agreement with the Receiving Agent, the Manager and the Trustee with respect to creations and redemptions.
Bond An instrument of debt issued by a corporation or government to raise capital. Bonds are interest bearing and promise to pay the holder a specified sum of money at its maturity plus interest at given intervals.
Bond Price Expressed as a % of the par value of a bond.
Call Provision Call Provision allows the issuer to call back the bond prior to maturity.
Certificate of Deposit (CD) CD are interest-bearing certificates and generally issued by commercial banks.
Commercial Paper Commercial Papers are short-term credit instruments with a maturity of 30, 60 or 90 days. They are cash equivalents.
Coupon Rate Coupon rate is the interest rate on a bond, expressed as a percentage of par (or face value).
Current Yield Amount of coupon income received, expressed as a percentage of the current market value of the bond or portfolio.
Creation Dealing Deadline All orders to create units must be received by the Receiving Agent no later than 12 noon, Hong Kong time (Creation Dealing Deadline); otherwise, the orders will be deemed to be received next Dealing Day.
Creation Unit PAIF units can be subscribed and redeemed in multiples of Creation Unit, ie, blocks of 20,000 units, through Authorized Participants.
Dealing Day Any day on which commercial banks are open for business in Singapore and Hong Kong, the Stock Exchange of Hong Kong is open for normal trading, and the Markit iBoxx ABF Pan-Asia Index is compiled and published.
Dilution Levy is an allocation of the funds trading costs paid by professional investors, the proceeds are held within the fund. The levy is used to protect the majority of investors from costs of trading by a minority.
Eurodollar Bond Bonds issued by US organizations and denominated in US Dollar but traded outside of the US (not only Eurozone).
EMEAP EMEAP refers to The Executives' Meeting of East Asia and Pacific Central Banks, comprising the Central Banks and Monetary Authorities in the Asia-Pacific region: Reserve Bank of Australia, People's Bank of China, Monetary Authority of Hong Kong, Bank Indonesia, Bank of Japan, Bank of Korea, Bank Negara Malaysia, Reserve Bank of New Zealand, Bangko Sentral ng Pilipinas, Monetary Authority of Singapore and Bank of Thailand.
Exchange Traded Fund (ETF) An investment product that tracks an index, commodity or basket of assets in a similar manner to an index mutual fund, but trades like a stock on an exchange.
Ex-Dividend Date Dealing day falling immediately before the 15th day of December and June or such determined by the Manager with the approval of the Trustee.
Floating-Rate Note (FRN) Also known as Floater or Variable-Rate Note, FRN has variable coupon rates, periodically changed according to the rise and fall of a certain interest rate index or a specific fixed income security which is used as a benchmark. Also known as a "floater".
Gilt Edge Bonds that carry the smallest degree of investment risk are referred to as 'gilt edge'.
Index Constituent Economies China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore and Thailand.
Junk Bond Junk Bond refers to lower quality bond and is also known as high yield bond, usually with a rating of BB or less. It is not considered to be of investment quality by Wall Street analysts.
Maturity Date The date on which final payment is due.
Par Value The value of a bond as expressed on its face value without consideration to any premium or discount. It also signifies the dollar value on which bond interest is figured. The principal amount at which the issuer contracts to redeem the bond at maturity.
Perpetual Bond Bonds that are never paid off and have no maturity dates.
Put Provision Put Provision enables investors to have an option to sell a bond back to the issuer at par value after a certain period prior to maturity.
Receiving Agent The Receiving Agent, HSBC Institutional Trust Services (Asia) Limited, will perform certain services in connection with the creation and redemption of Units by Authorized Participants, including receiving creation and redemption orders from, and issuing settlement instructions to, Authorized Participants as well as facilitating the exchange of, cash and units on the transaction settlement day.
Record Date The 15th day of December and June or such other date as shall be determined by the Manager (with the prior approval of the Trustee) as the dates for the purpose of determining the unitholders of record entitled to receive any distributions of dividends.
Redemption Dealing Deadline All orders to redeem units must be received by the Receiving Agent no later than 12 noon, Hong Kong time (Redemption Dealing Deadline); otherwise, the orders will be deemed to be received next Dealing Day.
Serial Bond An issue that is segmented into a series of maturities which matures in relatively small amounts at stated periodic intervals.
Treasury Bill (T-bill) T-Bill is non-interest bearing and fully guaranteed by the US Government. T-bill is sold on a discount basis so that the income is the difference between the purchase price and the face value.
Treasury Bond Treasury Bond is issued by the US Treasury and has a maturity of 10 to 30 years, considered to be a long term bond.
Treasury Inflation Protection Securities (TIPS) TIPS is issued by the US Treasury. It intends to protect investors against the effects of inflation by adjusting both the principal and coupon payments upward with any rise in inflation.
Treasury Note Treasury Note is issued by the US Treasury with a maturity of 1 to 10 years, considered to be an intermediate bond.
The Manager State Street Global Advisors Singapore Limited.
The Trustee HSBC Institutional Trust Services (Singapore) Limited.
Transaction Date The date on which an order to create/redeem units is received by the Receiving Agent.
Variable-Rate Note Please refer to Floating Rate Note.
Valuation Point PAIF's NAV (net asset value) will be calculated by the day end prices at the time when the valuation of the Underlying Index is completed on a Dealing Day.
Yield The rate of annual income return on an investment expressed as a percentage. Income yield is obtained by dividing the current dollar income by the current market price of the security.
Yield Curve The yield curve, a graph that depicts the relationship between bond yields and maturities, is an important tool in fixed-income investing. Investors use the yield curve as a reference point for forecasting interest rates, pricing bonds and creating strategies for boosting total returns.
Yield to Call (YTC) The yield of a bond that an investor holds until the call date, calculated based on the coupon rate, the length of time to the call date, and the market price.
Zero-Coupon Bond This kind of bond is sold at a discount from its value, which means investors receive return in the form of capital appreciation over the life of the bond rather than interest installments.