Investment involves risks. Please refer to the Hong Kong Prospectus for details including the risk factors.
1. Risk to Capital and Income (Investment Risk)
he assets of the fund are subject to fluctuations in value. There is no guarantee of repayment of principal and you may not get back the original amount invested. Past performance is no guarantee of future performance.
2. Equities
The fund’s investment in equities securities may fluctuate, sometimes dramatically, in response to the activities and results of individual companies or because of general market and economic conditions or other events including
changes in investment sentiment, political and economic conditions and issuer-specific factors.
3.Valuation Risk
Valuation of the fund’s investments may involve uncertainties and judgmental determinations. If such valuation turns out to be incorrect, this may affect the net asset value calculation of the fund.
4. Income-producing securities
Although the fund will generally invest in income-producing securities, it is not guaranteed that all underlying investments will generate income. To the extent that underlying investments of the fund are income producing, higher
yields generally mean that there will be reduced potential for capital appreciation for equity securities.
5. Foreign Currency Risk
The fund’s assets may be denominated in currencies other than the base currency of the fund. Also, a class of shares may be designated in a currency other than the base currency of the fund. Fluctuations in the exchange rates between
these currencies and the base currency as well as changes in exchange rate controls may adversely affect the fund’s net asset value.
6. Real Estate Investment Trusts (“REIT”) Risk
The fund may invest in REITS which are primarily indirect investments in real estate and are generally less liquid. Limited liquidity may affect the ability of a REIT to vary its investment portfolio or liquidate part of its assets in
response to changes in economic conditions, international securities markets, foreign exchange rates, interest rates, real estate market or other conditions. Heavy cash flow dependency, borrowers’ default risk, decline in the credit
rating of the REIT and interest rates rise will potentially lead to a decline in the value of the investments.
7. Sector Concentration
The fund may invest in a single sector and may have greater exposures to the market, liquidity, tax, legal, regulatory, and economic risks of those sectors than a fund which diversifies across a number of sectors. This may result in lower
liquidity of the fund’s assets and/or a higher volatility of the net asset value than a fund that diversifies across more sectors.