Investment involves risks. Please refer to the offering document for details including the risk factors.
1. Investment Risk
The underlying investments of the Sub-Fund may fall in value due to any of the key risk factors below and therefore your investment in the Sub-Fund may suffer losses. You may not get back the full amount of money you invest. In addition, the Sub-Fund primarily invests in equities or equity-related securities. Generally, equities or equityrelated securities are subject to higher volatility and therefore higher risk of loss, compared to other instruments such as bonds, money markets instruments or bank deposits.
2. Geographical Risk
The Sub-Fund invests in a small number of geographical locations (i.e. Asia excluding Japan) which may subject it to greater volatility than a more broadly diversified portfolio. The equity markets in these geographical locations may decline even while broader based equity market indices are rising.
3. Emerging Markets Risk
The Sub-Fund may invest substantially in emerging markets (i.e. Asia excluding Japan) which may have relatively unstable social, political and economic environments, less regulated securities markets and less developed accounting and disclosure standards. Emerging markets may have higher risk of expropriation and risk of remittance restrictions and be subject to currency exchange controls. Other risks include legal and taxation risks, settlement risk and custody risk. The Sub-Fund may be more volatile and less liquid, and may have higher risk of loss, than funds which primarily invest in developed markets.
4. Derivatives Usage Risk
The Sub-Fund may use derivatives for the purposes of hedging and/or EPM. Investments in derivatives involve additional risks such as leverage risk, counterparty risks, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. In adverse situations, the Sub-Fund's use of derivatives may become ineffective in hedging and/or in EPM and the Sub-Fund may suffer significant losses.
5. Exchange Rate Fluctuation Risk
Currency fluctuations may adversely affect the value of a Sub-Fund's investments and the income thereon. Currency fluctuations may also adversely affect the profitability of an underlying company in which a Sub-Fund invests.