Barings Asia Balanced Fund
as of 06/12/2019
|Umbrella||Barings Global Opportunities Umbrella Fund|
Share Class Info
|Share Class||Class A USD Acc|
|Accumulating / Distributing||Accumulative|
|Share Class Inception Date||31/05/1996|
The investment objective of the Barings Asia Balanced Fund (“the Fund”) is aimed specifically, but not exclusively, at meeting the investment requirements of Hong Kong-based retirement schemes, and its investment objective and policies have been tailored accordingly; namely, to achieve a long-term annualized real rate of return in excess of 2% per annum above Hong Kong wage inflation, when measured in Hong Kong dollar terms. Accordingly, it is the intention of the AIFM that the Fund will normally include a diversified range of international equities and debt securities, generally with a significant exposure to Asian equities. Investment may also be made in cash and money market instruments where considered appropriate in light of market conditions.
The Fund is invested in the international equity and fixed-interest markets, with a significant bias towards the Asia Pacific equity markets. Investments are made using both a “top-down” and a “bottom-up” investment approach. Asset allocation and thematic investing are based on a disciplined top-down research process. Stock selection is based on the individual merits of a specific company, rather than taking a stance on the outcome of a sector of the market or macroeconomic trends such as interest rate rises.
Who Should Invest
The Fund is designed for Asian-domiciled investors seeking a strategy that targets long-term return through a global balanced portfolio with an Asian focus.
The Fund is primarily invested in global equities and bonds, with a focus on Asian equities. As such, the Fund is exposed to higher than normal volatility, compared to a standard global balanced fund. This is based on the fact that Asian share prices tend to be more volatile than their developed market counterparts. In order to reduce the volatility in the portfolio, the Fund has also invested in fixed-interest investments. Bonds are generally considered to be safer than equities. However, their value can be significantly reduced by interest rate movement. When interest rates go up, bond values generally go down, and vice versa. Returns from overseas bond and equity markets can also be subject to fluctuations in exchange rates, which can have the effect of eroding or enhancing the value of investment returns for investors. Moreover, the Investment Manager regularly runs several risk reports, with the objective of assessing the implied risks taken in the portfolio, the result of which will lead the Investment Manager either to increase or reduce risk in the portfolio. Though we seek to achieve a long-term annualised real rate of return in excess of 2% per annum above Hong Kong wage inflation (when measured in Hong Kong dollar terms), this is not guaranteed.