Some funds may invest in bonds or debt securities which may be subject to credit, liquidity, and counterparty and market risks.
Some funds may invest in non-investment grade bonds and unrated securities which may be subject to greater credit and liquidity risks, and may be more volatile than higher rated securities. Some funds invest in investment grade debt securities, which may be subject to ratings downgrades by the rating agencies that may affect the net asset value of the fund.
Some funds may invest in derivative instruments which may involve additional risks. (For example, leverage may cause greater volatility.)
Some funds will potentially make extensive use of derivatives including more complex derivative instruments or strategies to achieve the investment objective, this may give rise to additional exposure in that performance may rise or fall more than it would have done otherwise. In adverse situations, the fund’s use of derivative instruments may become ineffective and the fund may suffer significant losses. The use of derivatives may give rise to leverage, liquidity, counterparty and valuation risks.
Dividend of certain share classes, at the Board’s discretion, may be 1) paid out of gross income while fees/charges may be charged to capital of the fund which will result in an increase in distributable income for the payment of dividends and the fund may pay dividend effectively out of capital; or 2) paid directly out of capital where the net income generated by the fund is insufficient to pay a distribution as declared. This will represent a return or withdrawal of part of the amount they originally invested or from any capital gains attributable to the original investment. Such distributions may result in an immediate decrease in the fund’s net asset value per share.
Some funds’ performance will be closely tied to the economic, political, regulatory, geopolitical, market, currency or other conditions in the European Economic Area and may be subject to increased liquidity, price, and foreign exchange risk.
Some funds may invest in Russia and some investments in Russian securities may be unlisted securities not dealt on a regulated market. The Russian market presents specific risks in relation to the settlement and safekeeping of securities.
The fund invests in China A shares or onshore China fixed income securities directly through the Qualified Foreign Institutional Investor (“QFII”) scheme and may incur losses due to limited investment opportunities, illiquidity of the China A shares or onshore China fixed income market, and/or delay or disruption in execution of trades or in settlement of trades.
Some funds may invest in securities denominated in RMB but settled in other currencies. Its performance may be adversely affected by the movements in the exchange rates between RMB and such other currencies. Some funds’ investments may involve substantial credit/counterparty, downgrading, interest rate, market, currency, volatility, liquidity, and diversification, regulatory and political risks.
In an extreme scenario, the value of the funds may be worth substantially less than the original amount you have invested and in the worst case could be worth nothing.