Alquity Asia Fund A Acc USD

Alquity 亞洲基金 A類 Acc 美元

LU1049766626

Risk Rating: Level 4

iFund risk rating methodology is a qualitative and quantitative assessment of a single fund’s geographic and asset class focus, investment style and any potential risk factors, as measured from one (1) (lowest risk) to six (6) (highest risk). For the funds with risk rating three (3) or four (4), these are mainly aimed at providing income and capital appreciation to investors by investing primarily in balanced portfolio, including high yield bonds and global equities etc. For more details, please refer to the Due Diligence section under the Procedures page.

Non-dealing Hours

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD20,000.00Min. Subscription

1.6%

HKD10,000.00Min. Subscription

EUR / GBP / USD

HKD20,000.00Min. Subscription

HKD20,000.00

HKD20,000.00

Daily

16:30

2019-09-30

*Not include dividends (If applicable)

Fund Performances (including dividend, if any)

1 mth
+3.76%
3 mth
-0.38%
6 mth
-6.45%
1 yr
-2.55%
3 yr
+1.81%
5 yr
+4.50%

Analytical Figures (3 years)

Annualized Return
+0.60%
Annualized Volatility
+14.61%
Sharpe Ratio
-0.12

Fund Information

Fund Houses
Alquity Investment Management Limited
Launch Date
2014-04-07
Fund Manager
Mike Sell
Manager Start Date
2014-03-31
Geographical Focus
Asia
Asset Class/ Sector
Equity - All cap
Risk Rating
Risk Level 4

iFund risk rating methodology is a qualitative and quantitative assessment of a single fund’s geographic and asset class focus, investment style and any potential risk factors, as measured from one (1) (lowest risk) to six (6) (highest risk). For the funds with risk rating three (3) or four (4), these are mainly aimed at providing income and capital appreciation to investors by investing primarily in balanced portfolio, including high yield bonds and global equities etc. For more details, please refer to the Due Diligence section under the Procedures page.

Fund AUM(As of 2019-04-29)
USD 68,628,209.2
Management Fee
1.6%
Latest Dividend
N.A.

Sector Leaders

    No Funds

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD20,000.00Min. Subscription

1.6%

HKD10,000.00Min. Subscription

EUR / GBP / USD

HKD20,000.00Min. Subscription

HKD20,000.00

HKD20,000.00

Daily

16:30

2019-09-30

Dividend Records

No Dividends

Investment Objective

To provide long term capital appreciation by investing in the regulated stock markets of countries in Asia (the "Asian Region").

Nature and Extent of Risks

Investment involves risks. Please refer to the offering documents for details including the risk factors.
1. Investing in equity securities
The fundamental risk associated with any equity portfolio is the risk that the value of the investments it holds might decrease in value. Equity security values may fluctuate in response to the activities of an individual company or in response to general market and/or economic conditions. The value of, and income derived from, equity securities held may fluctuate and the Sub-Fund may not recoup the original amount invested in such securities. The prices of and the income generated by equity securities may decline in response to certain events, including the activities and results of the issuer, general economic and market conditions, regional or global economic instability and currency and interest rate fluctuations, this may have an adverse impact on the NAV of the Sub-Fund.
2. Cost of doing business in the Asian Region / Regional risk
Investments in the Asian Region may result in higher costs for the Sub-Fund due to various other risks (e.g. geographic risk, regional/political risk, local currency risk) applicable to the Sub-Fund. Doing business in the Asian region may result in very high sub-custody and trading costs and higher costs. This may have an adverse impact on the NAV of the SubFund.
The performance of the Sub-Fund may be affected by economic downturns, political instability, regulatory, political, social change or natural disasters and other factors affecting the Asian Region as a whole, and/or specific countries in the Asian Region. During times of market uncertainty, investments in such securities may negatively affect the Sub-Fund’s performance.
3. Mainland China investment risk
Investing in the securities markets in Mainland China is subject to the risks of investing in emerging markets generally as well as to specific risks relating to the Mainland China market. Investing in Mainland China-related companies involves certain risks and special considerations not typically associated with investment in more developed economies or markets, such as greater political, tax, foreign exchange, liquidity and regulatory risk.
4. Mainland China tax risk:
The Sub-Fund's investments in China A Shares may be subject to PRC taxes. The Investment Manager of the Sub-Fund does not currently make any tax provision in respect of any potential PRC tax; however, the Investment Manager reserves the right to do so when it thinks appropriate. In addition, investments in China A shares through Stock Connect would be exempt from PRC corporate income tax and value-added tax on gains on disposal of the China A shares. The tax laws, regulations and practice in Mainland China are constantly changing, and they may be changed with retrospective effect. In this connection, the SubFund may be subject to additional taxation that is not anticipated as at the date hereof or when the relevant investments are made, valued or disposed of. The income from and/or the value of the relevant investments in the Sub-Fund may be reduced by any of those changes.
5. Investment via Stock Connect
Stock Connect is a new programme and there is no certainty as to how the relevant regulations will be applied. The current Stock Connect regulations are subject to change. A stock may be recalled from the scope of eligible Shanghai Stock Exchange ("SSE") shares or Shenzhen Stock Exchange ("SZSE") shares, as the case may be, for trading via Stock Connect, and in such event the stock can only be sold and is restricted from being bought by the Sub-Fund. During the settlement process for SSE shares and SZSE shares, such shares are held by Hong Kong Securities Clearing Company as nominee on behalf of the executing brokers. The Sub-Fund will have only a beneficial interest in the shares and there may be uncertainty surround such nominee arrangement. The Sub-Fund would also be exposed to the counterparty risk with respect to China Securities Depository and Clearing Corporation Limited. Under extreme market conditions, Stock Connect may be available only on a limited basis, and may be suspended by the PRC and Hong Kong regulators, in which case the SubFund's ability to invest in China A Shares through Stock Connect will be adversely affected.
Each of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect is subject to a daily quota measuring total trading volume via the relevant Stock Connect.
Trading in SSE shares or SZSE shares and carrying out corporate actions in respect of such shares held by the Sub-Fund are subject to local regulations, rules and practice. The risks and restrictions associated with investments via Stock Connect may affect the Investment Manager’s ability to implement the Sub-Fund’s investment strategy.
In addition, when the Sub-Fund invests in China A Shares listed on the Small and Medium Enterprise Board and/or ChiNext Board of the SZSE, such investment are subject to greater volatility in prices and have unstable level of liquidity. Shares of such companies may be overvalued and such exceptionally high valuation may not be sustainable. Such investments may result in significant losses for the Sub-Fund.
6. Investment in small and medium capitalized companies
Securities of companies with smaller and medium market capitalizations tend to be more volatile and less liquid than larger company stocks. Limited financial resources, a lower degree of expertise and liquidity in their securities, limits as regard to product range, markets or financial resources, a greater sensitivity to changes in general economic conditions and interest rates, and uncertainty over future growth prospects may all contribute to such increased price volatility and risks. Smaller and medium companies may have no or relatively short operating histories, or be newly public companies, thus may be unable to generate new funds for growth and development, may lack depth in management, and may be developing products in new and uncertain markets, all of which are risks to consider when investing in such companies and which may have an adverse impact on the NAV of the Sub-Fund. The Sub-Fund's investments in China A Shares listed on the Small and Medium Enterprise Board and/or ChiNext Board of the SZSE are also subject to this risk.
7. Local currency risk
Investments in emerging markets carry a high degree of risk which may cause the value of the Sub-Fund’s investments to diminish as the shares of the companies in which it invests are likely to be denominated in a currency that is subject to greater fluctuation and loss of value when compared to its shares which are denominated in USD. Such currency may also be more affected by exchange control regulations or changes in the exchange rates. The SubFund does not intend to hedge its local currency exposure, although may do depending on prevailing economic circumstances within countries of the region. There is no requirement that the Sub-Fund seeks to hedge or to protect against currency exchange risk in connection with any transaction. This may have an adverse impact on the NAV of the Sub-Fund.
8. Liquidity risk
Daily trading volume on markets in the region in which the Sub-Fund invests, (i.e. the Asian Region) and for small and mid-cap stocks generally, may fluctuate and persist at low levels, which may result in a higher cost of entering and exiting such investments, particularly at times of market and/or economic volatility, and may result in a diminishment of the value of the Sub-Fund’s investment. Some of the Sub-Fund’s investments (such as investments in small and mid-cap companies) may be subject to higher liquidity risk. Lower liquidity may arise from a low trading volume of securities, or if trading restrictions or temporary suspensions on trading are imposed. Investment in securities that have lower liquidity may reduce returns for or result in substantial losses to the Sub-Fund if it is unable to sell such securities at the desirable time or price.
9. Investments in debt securities
Debt securities, such as notes and bonds are subject to the risk of an issuer’s ability to meet principal and interest payments on the obligation, and may also be subject to price volatility due to such factors as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity (liquidity risk).
An investment in fixed-income securities may be interest rate sensitive. An increase in interest rates will generally reduce the value of fixed-income securities, whilst a decline in interest rates will generally increase the value of fixed-income securities. The performance of a sub-fund will therefore partly depend on the ability to anticipate and respond to market interest rate fluctuations, and to utilise appropriate strategies to maximise returns, whilst attempting to minimise credit and liquidity risks to investment capital.
An issuer of an instrument may be unable to make interest payments or repay principal when due. Decrease in the financial strength of an issuer or decrease in the credit rating of a security may adversely affect its value. Fixed income securities are also exposed to the risk that their, or their issuers’, credit ratings may be downgraded, which can cause a significant drop in the value of such securities.
The above features may adversely impact a sub-fund.
10. Real estate securities risk
Real estate values fluctuate in response to a variety of factors, including local and global economic conditions, interest rates and tax considerations. When economic growth is slow, demand for property decreases and prices may decline. A REIT’s performance depends on the types and locations of the properties it owns and on how well it manages those properties, it also depends on various reasons including but not limited to competition from other properties, extended vacancies, policy and regulatory changes. Since REITs typically are invested in a limited number of projects or in a particular market segment, they are more susceptible to adverse developments affecting a single project or market segment than more broadly diversified investments. The underlying REITs may not necessarily be authorized by the SFC and the dividend policy or payout policy of the Sub-Fund is not representative of the dividend policy or payout policy of the underlying REITs. This may have an adverse impact on the NAV of the Sub-Fund.
11. Derivatives risk
The use of derivatives presents risks different from, and possibly greater than, the risks associated with investing directly in traditional securities (e.g. counterparty risks, valuation risks and volatility risks). The use of derivatives and currency hedging strategies may be ineffective and can lead to substantial losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivatives. This may have substantial adverse impact on the NAV of the Sub-Fund.
12. Concentration risk
Concentration risk may arise as the Sub-Fund focuses to invest into the securities of the particular markets (e.g. the Asian Region), regardless of whether the securities are listed on or outside the respective regions. Although the Sub-Fund’s portfolio will be well diversified in terms of the number of holdings, the Sub-Fund is likely to be more volatile than a broad-based sub-fund, as it is more susceptible to fluctuations in value resulting from adverse conditions in its respective region or asset class.
13. Investment risk
The Sub-Fund is an investment fund. There is no guarantee of the repayment of principal. The instruments invested by the Sub-Fund may fall in value.
14. Performance fee risk
The method of calculating performance fee gives rise to the risk that a shareholder redeeming shares may still incur performance fee in respect of the shares, even though a loss in investment capital has been suffered by the redeeming shareholder. There is also a risk of adverse impact on the shareholders in the absence of equalization calculation or series accounting to make adjustment on each share individually. Risk also arises that the Investment Manager may be inclined to make riskier investment than in the absence of performance-based incentive and the performance fee may be paid on unrealized gains which may subsequently never be realized.

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