Related Theme in WeLab Bank Featured Fund Services
Global Income
- One of the most popular themes among WeLab Bank customers
- Funds under this theme invest majority into global fixed income.# The asset class faced pressure last year due to the rate hike environment. The market is anticipating market entry opportunities when the rate cycle turns.
- The latest annualised dividend distribution is from 5.1% to 5.7%#
Featured Funds of Global Income
Other hot fund ideas#Data as of 31 May 2023. The table lists out all the funds under such themes and the latest annualised yield, year to date total return and past 3-year return of the funds. The figures are provided by Morningstar Asia Limited and are for information only. We do not take responsibility for and do not endorse the accuracy of such information. Past performance is not indicative of future results. Dividend funds listed above aim to pay dividend on a monthly basis. Dividend payout is not guaranteed and may be paid out of capital. The information set out in the table above is for reference only and does not constitute any comment, recommendation, solicitation, offer or sale of any investment product.Below are the captioned fund’s calendar year return since 2018, as of 31 May 2023.
JPM Income: 2023-to-date: 0.81%; 2022: -8.3%; 2021: 2.2%; 2020: 3.1%; 2019: 11.4%; 2018: 0.4%. PIMCO Income II: 2023-to-date: 2.3%; 2022: -8.5% (The fund inception date is 29 Jan 2021). Allianz Global Opportunistic Bond: 2023-to-date: 1.7%; 2022: -5.0%; 2021: -2.5%; 2020: 6.2%; 2019: 7.1%; 2018: -1.8%
Insights from WeLab Bank Investment Experts
Bond Market: Receive high dividend while capturing for the potential capital gain
The current bond yield level is very attractive.Since the 10 consecutive rate hikes to 5%-5.25%, the 10Y US Treasury Bond Yield has since risen to 4.07% high earlier this year.That implies that if you invest into high quality, lower default risk fixed income asset, e.g. US Treasury or investment grade bond, you can enjoy a decent dividend yield given the low price. For instance, at the rate of the aforementioned US treasury yield.When interest rate peaked, it creates room for bond price to grow.The price of bond and interest rate has always been an negative correlation. For example, the rate hikes in the past 1+ years have caused huge downward pressure to the bond price. But coming back to today’s scenario, if the Feds really stopped its rate hike or even lowering the rate in the future, this will propel the bond price to an upward direction.Looking from another angle, the bond yield currently is at its highest point in 5 years. If you look at the past 5 times when bond yield peaked, the bond price performance of the following year has been very appealing. This again shows the opportunity we see today.To sum it up, it is obvious that the change of the interest rate cycle provides opportunities to the market. Bond investment can on one hand provide you regular income, on the other hand give you the possibility of capital appreciation.
The One-year return of the US Agg of the above market events are calculated from: 1990 Bond Market Crash: 26 April 1990; 2000 Dot Com Bubble: 18 May 2000; 2008 Global Financial Crisis: 31 October 2008; 2013 Taper Tantrum: 5 September 2013; COVID-19: 19 March 2020. The figures are obtained from the reliable sources and are for information only. We do not take responsibility for and do not endorse the accuracy of such information. Past performance is not indicative of future results.
*As of 31 May 2023, the annualised dividend yield of JPM Income (USD)(Dividend) under “Global Income” theme is 5.7%. The fund aims to pay dividend on a monthly basis. Dividend payout is not guaranteed and may be paid out of capital. “Potential Gain” refers to the above market insight of bond funds performance in general. This information is for reference only and does not constitute a forecast or guarantee of performance of any fund.^From 5 June to 4 August 2023, the Fund Platform Fee Monthly Rate applicable to the Featured Funds Services is 0%. Terms and conditions apply. For details, please visit HERE.
1Based on the publicly published date on subscription and redemption from the HKIFA (2023 to date)Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.