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FSM Managed Portfolio –
Monthly Investment Outlook
March 2016
1
Table of Contents
• Market Update P.3
• Market Performance Review P.6
• Portfolio’s Performance Review P.9
• Portfolio Holdings’ Performance P.11
• Portfolio Changes and Strategies P.27
2
• The US’ January ISM Manufacturing PMI inched up to 48.2 but still came in below
market consensus and remained in contraction. The employment index fell to 45.9,
the lowest since June 2009.
• The consumer confidence index retreated from 97.8 to 92.2 in January, the lowest in
seven months. Core personal consumption expenditures deflator rose 1.7% on a
year-to-year basis and reached the highest level since 2012.
• Market concerns over European banks’ capital adequacy and low earnings growth
triggered a sell-off of European banking stocks in January. Deutsche Bank reported
the first loss since the Global Financial Crisis in 2008 at 6.8 billion euro in 2015.
• To counteract market doubts, the bank issued a statement saying that it has in
reserve 1 billion euro for its 2016 debts and 4.3 billion for 2017, and the bank is also
capable of repaying the 0.35 billion euro AT1 interest maturing on 30 April.
Market Update (1)
3
Market Update (2)
• The Japanese economy disappointed market expectation after its GDP shrank by an
annualised 1.4% in the fourth quarter last year. Exports declined for the fourth straight
month and recorded the worst reduction since 2009 at -12.9% in January on a year-
on-year basis.
• In order to deal with deflation and the appreciation of the yen, the Bank of Japan
introduced a controversial negative-rate policy that depreciated the yen for only one
day before the yen rose again to even reach 110 against the green back once,
triggering the unwinding of carry trades; and exports-related stocks took a dive and
made the Japanese market one of the worst-performing equity markets year-to-date.
• China’s exports fell 6.6% in January year-on-year in RMB terms, but the size of both social financing and new yuan loans have recorded historical highs. The market focused its attention on the state-owned enterprise reforms and supply side policies just before the start of the “Two Sessions” (the 4th Session of the 12th Chinese People's Political Consultative Conference and the National People’s Congress) and prompted related stocks to rise. Chinese property stocks also flourished after the government cut part of the home transaction tax and waived some of the business tax.
4
Market Update (3)
• Russia and some of the OECD countries agreed to freeze the oil production size at the 11 January level while Iran’s international oil price has stabilised over the month. The bond markets of oil-producing countries such as Venezuela and Ecuador were supported after a rebound in oil prices, and most emerging markets’ USD sovereign bonds also bounced back in the month.
• In order to suppress the inflationary pressure from the peso’s depreciation, the Mexican central bank hiked the interest rate by 50 basis points to 3.75% out of the blue and directly intervened in the currency market by dumping the USD to protect the peso. .
• The Indian central bank, on the other hand, announced a 25-basis-point cut on the interest rate to 7% and lowered the required reserve ratio by 100 basis points to 6.5% to stimulate the economy.
• Worrying about Brazil’s economic and political prospects, Standard and Poor’s and Moody’s both lowered Brazil’s sovereign credit rating. Standard and Poor’s cut it to BB-grade on 17 February while Moody’s downgraded it to Ba2.
5
Best-Performing Markets in February
(in Local Currencies)Market Index Feb 2016 Ranking Year 2015 Ranking
Brazil Ibovespa Brasil Sao Paulo Stock Exchange 5.5% 1 -1.3% 5
Russia Russian Trading System Cash 5.3% 2 1.6% 3
Indonesia Jakarta Stock Exchange Composite 3.2% 3 3.9% 1
Taiwan Taiwan Stock Exchange 3.1% 4 0.9% 4
Thailand Stock Exchange of Thailand 2.7% 5 3.4% 2
Singapore FTSE Straits Times 2.5% 6 -7.5% 12
Emerging Markets MSCI Emerging Markets -0.3% 9 -6.8% 9
US S&P 500 -0.4% 10 -5.5% 8
South Korea Korea Composite Stock Price -0.4% 11 -2.3% 7
Malaysia KLCI -0.8% 12 -2.2% 6
Chinese A shares CSI 300 -0.8% 13 -22.9% 22
Asia ex-Japan MSCI AC Asia ex Japan -1.0% 14 -8.6% 15
World MSCI AC World -1.2% 15 -6.9% 10
Europe Stoxx 600 -2.3% 18 -8.7% 16
Hong Kong Hang Seng Index -2.5% 19 -12.8% 19
Chinese H shares Hang Seng Mainland 100 -2.6% 20 -15.0% 20
Australia S&P/ASX 200 -3.2% 22 -7.8% 13
India BSE SENSEX -7.3% 23 -11.9% 18
Japan Nikkei 225 -10.3% 24 -15.8% 21
6
Source: iFAST compilations;
data as at end-February 2016.
Best-Performing Markets in February
(in HKD)Market Index Feb 2016 Ranking Year 2015 Ranking
Brazil Ibovespa Brasil Sao Paulo Stock Exchange 5.7% 1 -1.4% 6
Indonesia Jakarta Stock Exchange Composite 5.3% 2 8.4% 1
Russia Russian Trading System Cash 5.3% 3 1.9% 3
Singapore FTSE Straits Times 3.8% 4 -6.5% 9
Taiwan Taiwan Stock Exchange 3.5% 5 0.0% 5
Thailand Stock Exchange of Thailand 2.6% 6 5.0% 2
Emerging Markets MSCI Emerging Markets -0.3% 9 -6.5% 8
US S&P 500 -0.4% 10 -5.1% 7
Chinese A shares CSI 300 -0.4% 11 -23.4% 22
Asia ex-Japan MSCI AC Asia ex Japan -1.0% 12 -8.3% 14
World MSCI AC World -1.2% 13 -6.6% 10
Malaysia KLCI -2.0% 16 0.6% 4
Australia S&P/ASX 200 -2.3% 17 -9.3% 16
Europe Stoxx 600 -2.4% 18 -8.3% 15
Hong Kong Hang Seng Index -2.5% 19 -12.8% 19
Chinese H shares Hang Seng Mainland 100 -2.6% 20 -15.0% 21
South Korea Korea Composite Stock Price -3.1% 21 -6.8% 11
Japan Nikkei 225 -3.9% 23 -9.8% 17
India BSE SENSEX -7.8% 24 -14.2% 20
7
Source: iFAST compilations;
data as at end-February 2016.
Best-Performing Bond Classes in February
(in Index Currency)
8
Bond Class Feb 2016 Year 2015
Developed countries’ sovereign bond 3.4% 4.6%
Asian bond 0.6% 1.4%
Emerging-market hard-currency bond 1.5% 1.8%
Emerging-market local-currency bond 2.0% 2.7%
Global high-yield bond 0.7% -0.7%
Source: iFAST compilations;
data as at end-February 2016.
Portfolio Performance Since Inception
(as at End-Feb 16)
PortfolioPortfolio
Performance
Index
Performance
Aggressive -7.41% -6.71%
Moderately
Aggressive-5.83% -4.59%
Balanced -4.50% -2.47%
Moderately
Conservative-3.87% -0.35%
Conservative -2.20% 1.78%
9
See http://www.fundsupermart.com.hk/ for detailed fund allocation.
Source: Bloomberg and iFAST compilations;
All performance figures shown are in HKD terms including dividends. The
performance figures are cumulative returns based on the prices of the underlying
securities on a NAV-to-NAV basis with dividends reinvested. The performance
figures are net of subscription fee and platform fees.
Portfolio Performance in February
PortfolioPortfolio
Performance
Index
Performance
Aggressive -1.23% -0.34%
Moderately
Aggressive-0.68% 0.21%
Balanced -0.49% 0.74%
Moderately
Conservative-0.35% 1.25%
Conservative -0.16% 1.75%
10
See http://www.fundsupermart.com.hk/ for detailed fund allocation.
Source: Bloomberg and iFAST compilations;
All performance figures shown are in HKD terms including dividends. The
performance figures are cumulative returns based on the prices of the underlying
securities on a NAV-to-NAV basis with dividends reinvested. The performance
figures are net of subscription fee and platform fees.
11
4.4%3.8%
3.1% 2.7%
1.9%1.1%
-0.7%-1.3% -1.4%
-2.2%
-3.5%-4.0%
-4.5% -4.7%
-5.6%-6.2% -6.2% -6.3%
-7.3% -7.4%
-8.5% -8.5% -8.7% -8.9%-9.5%
-10.2%
-11.5%
-14.7%
-20%
-15%
-10%
-5%
0%
5%
10%
Portfolio’s Performance Review
(Since Inception)
Source: Bloomberg and iFAST compilations.
The first subscription of FSM Managed Portfolios was on 31 August 2015.
Data as at 22 February 2016
Performance figures are cumulative with dividends reinvested and include the effects of
sales charges.
Portfolio Holdings’ Performance—
Equity Funds
NameReturn Since Inception
(%)February’s Return (%)
ETF
Vanguard S&P 500 Index ETF -3.15 -7.00
Fund
Legg Mason ClearBridge
US Aggressive Growth Fund (USD) A Acc-10.19 0.38
Threadneedle IF ICVC –
European Select Fund (USD-Hedged) RNA-3.48 -3.67
Aberdeen Global –
Japanese Smaller Companies Fund (USD-Hedged) A2 Acc-12.78 -5.39
First State Asian Equity Plus Fund (USD) I Dis -4.25 -0.62
Mirae Asset Asia Great Consumer Equity Fund (USD) A -9.06 -2.22
Fidelity Funds –
Emerging Europe, Middle East And Africa Fund A-Acc-USD-14.85 -1.01
JPMorgan Latin America Equity A (Dist) – USD -5.41 4.22
First State China Growth Fund (USD) I -10.48 -0.11
Neuberger Berman China Equity Fund (USD) A Acc -9.83 -2.65
For past performance, see http://www.fundsupermart.com.hk.
Source: Bloomberg and iFAST compilations.
Data as at 29 February 2016.
The performance figures are cumulative returns based on the prices of the
underlying securities on a NAV-to-NAV basis with dividends reinvested. 12
Portfolio Holdings’ Performance—
Equity Funds
Name 2015 2014 2013 2012 2011
Fund
Legg Mason ClearBridge
US Aggressive Growth Fund (USD) A Acc-5.29 13.66 37.56 18.39 -2.78
Threadneedle IF ICVC –
European Select Fund (USD-Hedged) RNA4.07 -2.32 24.80 26.71 -4.93
Aberdeen Global –
Japanese Smaller Companies Fund (USD-Hedged) A2 Acc8.26 25.62 17.32* - -
First State Asian Equity Plus Fund (USD) I Dis -2.85 13.75 4.31 24.33 -10.35
Mirae Asset Asia Great Consumer Equity Fund (USD) A -3.41 18.19 6.34 26.93 -17.88*
Fidelity Funds –
Emerging Europe, Middle East And Africa Fund A-Acc-USD-15.67 -8.62 7.75 22.89 -21.36
JPMorgan Latin America Equity A (Dist) – USD -30.85 -11.43 -10.55 13.74 -20.11
First State China Growth Fund (USD) I -4.08 -2.76 21.48 18.96 -14.84
Neuberger Berman China Equity Fund (USD) A Acc 0.65 21.60 4.44 22.23 -14.19
For past performance, see http://www.fundsupermart.com.hk.
Source: Bloomberg and iFAST compilations, data as at 29 February 2016.
For fund(s) with performance figure less than one calendar year in the first year of launch,
the performance figure shown is calculated since launch until the end of the particular calendar year.
The performance figures are cumulative returns based on the prices of the underlying securities on a
NAV-to-NAV basis with dividends reinvested. 13
US Equities: Growth Stocks
Outperformed Value Stocks (1)
14
80
85
90
95
100
105
110
Rebased to 100 as at 31 Dec 2014
Russell 3000 Growth Russell 3000 Value
Source: Bloomberg and iFAST compilations.
US Equities: Growth Stocks
Outperformed Value Stocks (2)
15
80
85
90
95
100
105
110 Rebased to 100 as at 31 Dec 2014
S&P 500 Growth S&P 500 Value
Source: Bloomberg and iFAST compilations.
16
US equity funds available on our platform
(by category)
Performance (%)
YTD 2015 2014 2013 2012 2011
Large-cap stocks (15 funds) -4.51 -1.84 10.80 30.82 13.64 -3.84
Small- to mid-cap stocks (5 funds) -4.09 -4.34 5.24 32.19 10.71 -9.40
Growth stocks (5 funds) -7.00 1.93 10.93 31.20 13.46 -2.96
But Growth Funds Generally
Underperformed in Other US Equity Funds
Source: iFAST compilations.
Data as at 29 February 2016; ranked by YTD performance.
US Equity Funds: Growth Strategy
Fund Name
Cumulative
Performance(%)Calendar-Year Performance(%)
1-mth YTD 2015 2014 2013 2012 2011
Parvest Equity USA Growth (USD) -0.70 -5.15 0.29 10 12.95 - -
AB FCP I - American Growth Portfolio
(USD) A-0.82 -5.13 9.54 12.87 35.78 15.31 -2.67
Legg Mason ClearBridge Growth Fund
(USD) A Acc-1.14 -7.18 0.38 11.38 31.06 11.07 -2.38
Legg Mason ClearBridge US Aggressive
Growth Fund (USD) A Acc0.38 -8.33 -5.29 13.66 37.56 18.39 -2.78
Franklin U.S. Opportunities Fund (USD) A
(Acc)-2.92 -9.2 4.75 6.74 38.64 9.05 -4.02
Peers Average -1.04 -7.00 1.93 10.93 31.2 13.45 -2.96
Russell 3000 Growth Index -0.27 -4.61 3.54 10.77 32.09 13.33 0.70
17
Source: iFAST Compilations
Data as at 29 February 2016; Rank by YTD performance
The performance figures are cumulative returns based on the prices of the underlying
securities on a NAV-to-NAV basis with dividends reinvested.
Legg Mason ClearBridge US Aggressive Growth Fund
Tracked the Performance of Value Indices in 2H 15
18
75
80
85
90
95
100
105
110 Rebased to 100 as at 31 Dec 2014
Legg Mason ClearBridge US Aggressive Growth Fund (USD) A Acc Russell 3000 Growth Russell 3000 Value
Source: Bloomberg and iFAST compilations.
Legg Mason ClearBridge US Aggressive Growth Fund:
a Different US Growth Fund
• This fund is very different to other US growth funds with a highly concentrated holdings.
The top 10 holdings generally makes up around 50% of the portfolio, and the fund
consists of over 90% of active shares.
• With a usually single-digit turnover rate, this fund has acquired many of its holdings for
over 10 years; in fact, all of the top 10 holdings have been held for at least 20 years.
• The fund manager thinks the fund is undergoing a particularly challenging period now,
especially during the recent macro-economic turmoil. Historically speaking, the fund
always beats the benchmark in the three years after underperforming the benchmark.
19
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Legg Mason
ClearBridge
US
Aggressive
Growth
-33.13 35.55 10.22 10.96 9.56 0.13 -40.89 34.8 23.48 -2.64 18.69 37.53 13.62 -5.22
Russell 3000
Growth Index-28.03 30.97 6.93 5.17 9.46 11.4 -38.44 37.01 17.64 2.18 15.21 34.23 12.44 5.09
Represents outperformance
Source: Legg Mason and iFAST compilations.
The performance figures are cumulative returns based on the prices of the
underlying securities on a NAV-to-NAV basis with dividends reinvested.
• The US market returns in 2015 were mainly driven by a handful of mega-cap, technology and internet
companies. This fund was clearly hurt by the overweight in energy, and by some of the names that the
fund owns in the technology space, including storage companies.
• The latter half of 2015 was notable for three major corrections within health care; the most severe of
which was a 22% pullback in biotech companies in a five-day trading period. There was also a
significant correction in the media sector, as well as the ongoing correction in commodity stocks.
20
Legg Mason ClearBridge US Aggressive Growth Fund:
High Exposure to Health Care, Technology and Energy
Source: Legg Mason and iFAST compilations.
Data as at end-January 2016.
Fund Manager’s Latest View
• Against the recent market correction, the fund has reduced its cash holding. Its long investment horizon is highlighted by one of the principal tenets of the fund’s strategy, which is being valuation conscious and bringing dollar cost averaging into the businesses. When valuations become compelling, the fund takes the opportunity to add related stocks to existing long-term holdings.
• The fund’s price-to-book ratio is about half the benchmark; its price-to-sales and price-to-earnings (P/E) ratios are below the benchmark, and the debt-to-equity ratio is only a small fraction of the benchmark.
• Anadarko Petroleum, which is trading well below 50% of its NAV, has a strong liquidity profile. The company maintains a neutral free cash flow status even in the current commodity environment and keeps investing through operating cash flow and asset sales. As its peers fail or go bankrupt, Anadarko is actually able to invest in long-life projects around the world.
• Certain corporates in the technology space like Seagate are not expensive, and we have also recently added Western Digital to our portfolio. Western Digital is in the process of acquiring SanDisk, creating the next generation storage powerhouse in both hard disk drives as well as flash memory. The merge will translate into a mere 5X PE ratio based on the current stock price, and it will be able to generate over USD 3 billion in cash.
21
Our View on This Fund
• This fund has a proven track record, and its performance is comparable to the
benchmark, making it a great choice to gain exposure to US growth stocks. Currently
there is no ETF in the market that traces the Russell 3000 Growth Index.
• The fund tends to deliver stronger returns during market uptrends and record larger
correction during downturns. Historically speaking, the fund always beats the
benchmark in the three years after underperforming the benchmark.
• This fund is highly concentrated and does not closely track the benchmark. It has
acquired many of its holdings for over 10 years; in fact, all of the top 10 holdings have
been held for at least 20 years. We view this fund as a long-term investment.
• After the disappointing performance in 2015 and so far in 2016, it may not be a good
time for us to quit or sell this fund.
22
Portfolio Holdings’ Performance—
Fixed Income Funds
NameReturn Since
Inception (%)
Return in February
(%)
Fund
BlackRock Global Funds - US Dollar Short Duration Bond Fund (USD)
A3 Mdis0.17 -0.34
PIMCO Global Bond (USD) E Acc 1.50 -0.10
Templeton Global Total Return Fund (USD) A (Acc) -4.78 -3.78
Invesco Emerging Markets Bond Fund (USD) A Dist 0.97 0.92
Neuberger Berman Emerging Market Debt - Local Currency Fund (USD)
A Mdis-1.40 1.08
First State Asian Quality Bond Fund (USD) I 2.52 0.43
BlackRock Global Funds - Asian Tiger Bond Fund (USD) A3 Mdis 1.97 0.37
BEA Union Investment Asian Bond And Currency Fund (USD) A Acc 3.53 1.00
Fidelity Funds - Asian High Yield Fund A-Acc-USD -0.10 0.34
BlackRock Global Funds - Global High Yield Bond Fund (USD) A2 -6.00 -0.07
Allianz US High Yield (USD) A MDis -10.53 -1.39
For past performance, see http://www.fundsupermart.com.hk.
Source: Bloomberg and iFAST compilations;
data as at 29 February 2016.
The performance figures are cumulative returns based on the prices of the underlying securities on a NAV-to-NAV basis with
dividends reinvested. 23
Portfolio Holdings’ Performance—
Fixed Income Funds
Name 2015 2014 2013 2012 2011
Fund
BlackRock Global Funds - US Dollar Short
Duration Bond Fund (USD) A3 Mdis0.32 1.03 0.92 4.02 1.82
PIMCO Global Bond (USD) E Acc -0.07 8.02 -1.39 9.92 6.65
Templeton Global Total Return Fund (USD) A
(Acc)-5.84 -0.24 3.59 19.46 -1.23
Invesco Emerging Markets Bond Fund (USD) A
Dist0.92 5.92 -6.37 19.16 4.02
Neuberger Berman Emerging Market Debt -
Local Currency Fund (USD) A Mdis-17.08 -7.36* - - -
First State Asian Quality Bond Fund (USD) I 0.86 6.86 -2.93 8.83 2.40
BlackRock Global Funds - Asian Tiger Bond
Fund (USD) A3 Mdis2.27 8.19 -2.98 13.96 1.75
BEA Union Investment Asian Bond And
Currency Fund (USD) A Acc4.76 2.54 5.51 24.37 -0.82
Fidelity Funds - Asian High Yield Fund A-Acc-
USD1.40 3.52 2.72 19.77 -7.67
BlackRock Global Funds - Global High Yield
Bond Fund (USD) A2-4.74 1.66 7.39 16.05 2.37
Allianz US High Yield (USD) A MDis -8.81 -0.85 6.11 11.14 4.79
24
For past performance, see http://www.fundsupermart.com.hk.
Source: Bloomberg and iFAST compilations; data as at 29 February 2016.
For fund(s) with performance figure less than one calendar year in the first year of its launch,
the performance figure shown is calculated since launch until the end of the particular calendar year.
The performance figures are cumulative returns based on the prices of the underlying securities on a NAV-to-NAV basis with dividends reinvested.
Spreads of Energy, Industrial and Materials High-Yield
Bonds Have Widened Significantly
25
Sources: Bloomberg and iFAST compilations;
data as at 29 February 2016.
200
400
600
800
1000
1200
1400
1600
Bps
All Tech Health Care Energy Industrial Financials Sub
Financials Snr Cons Disc Cons Staple Materials Communication
Spreads of US High-Yield Bonds Have
Widened Further
Currently
780 basis points
vs
Long-term average
579 basis points
Currently
480 basis points
vs
Long-term average
384 basis points
Sources: Merrill Lynch and iFAST compilations;
data as at 29 February 2016.
26
• Oil prices continue to hover at low level, and some low-quality energy companies are facing risk of closure; but for
those with a strong balance sheet, better cash flow and who have sufficiently hedged against the oil prices, they
should have enough flexibility and ability to withstand the trough of oil prices.
• After a round of correction for energy corporate bonds, the sector’s bond yield has now come near the 2008 level at
16%, and the implicated default rate has also risen to more than 18%, above what the three major credit rating
agencies have expected.
• The spread between US high-yield bond and US five-year sovereign bond has risen to more than 700 basis points,
which was previously seen in 1998, 2000, 2001, 2003 and 2008.
0
5
10
15
20
25(%)
BofA Merrill Lynch US High Yield Master II Option-Adjusted Spread
BofA Merrill Lynch US High Yield BB Option-Adjusted Spread
US High-Yield Bond’s YTM is One of the Highest
in Major High-Yield Bond Categories
27
• We still favour the high-yield sector, especially when the yield spread between BB-grade bonds and B-grade
bonds has widened to the largest extent since the 2008 financial tsunami.
• We now favour funds that are overweight in B-grade bonds while underweight in BB-grade bonds relative to the
benchmark. Of course, certain smaller companies in the energy sector may continue to see difficulties in
financing, in turn aggravating market concern and depressing the high-yield bond market. This is why we believe
that it is important to select funds with both stable track records and strong resilience.
Sources: Merrill Lynch and iFAST compilations;
data as at 29 February 2016.
0
4
8
12
16
20
24
(%)
BofA Merrill Lynch US High Yield BB Effective Yield BofA Merrill Lynch US High Yield CCC or Below Effective Yield
BofA Merrill Lynch US High Yield Master II Effective Yield
• We made the following changes in the beginning of February 2016:
• Currently, the spread of US energy high-yield bond sector is implying a default rate of at least
25%, whereas the market expects a default rate between 5.4% and 13% in the next two years.
The current prices therefore point to an over-reaction to the negative factors.
• As a result of surfacing investment value in high-yield bond funds and a rise in our Asian high-
yield bond holdings, we sold some of our Asian high-yield bond fund at the end of February
to lock in part of the profits and acquire more global high-yield bond fund.
28
Portfolio Changes
Investment Prospects:
Equity Strategy
29
Markets Portfolio Allocation
US Underweight
Europe Underweight
Japan Overweight
Asia ex-Japan Overweight
EMEA Underweight
Latin America Neutral
China’s H shares Overweight
Source: iFAST compilations.
29
Investment Prospects:
Fixed Income Strategy
30
Fixed Income Fund Portfolio Allocation
Global bond/short-duration bond Underweight/Underweight
Asian investment-grade bond Overweight
Asian high-yield bond Overweight
Emerging-market bond Neutral
Global/US high-yield bond Overweight
Source: iFAST compilations.
30
Risk Disclosure Statement
• Legg Mason ClearBridge US Aggressive Growth Fund (USD) A Acc
RISK DISCLOSURE STATEMENTS
• INVESTMENT INVOLVES RISKS. The value of the Fund can be volatile and investors may not get back the amount originally invested. Past
performance is not indicative of future results.
• Investors will be exposed to equity market, US markets, concentration, currency and debt securities risks.
• The Fund may use certain types of financial derivative instruments, which may involve a higher degree of risk including but not limited to counterparty,
volatility, liquidity, leverage and valuation risks, and the Fund may suffer a substantial loss.
• Securities of smaller companies generally are less liquid and more volatile than those of larger companies; and smaller companies generally are more
likely to be adversely affected by poor economic or market conditions.
• Investors should not invest based on this marketing material alone. Offering documents should be read for further details, including the risk factors.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has advised you
that the product is suitable for you and explained how it is consistent with your investment objectives. Note: Fundsupermart.com is a self-directed online
distributor and we only provide limited personal financial advisory services upon a particular request from client.
Threadneedle IF ICVC - European Select Fund (USD-Hedged) RNA
RISK DISCLOSURE STATEMENTS
•Threadneedle Investment Funds ICVC – European Select (the “Fund”) principally invests mainly in a relatively concentrated portfolio of equities of
companies domiciled in Continental Europe or which have significant Continental European operations. The select investment approach means that the
Authorised Company Director has the flexibility to take significant stock and sector positions which may lead to increased levels of volatility.
•The Fund may invest in one or a combination of the following instruments which may involve embedded leverage: fixed interest securities, other
equities and money market securities. Investing in any one of the above instruments may involve substantial credit/counterparty, market, volatility and
liquidity risk. If the issuers default or such instruments, or their underlying assets, cannot be realised or perform badly, investors’ entire investment may
be lost.
•The Fund focuses on investing in a single geographical area is subject to higher risks of concentration than Funds following a more diversified policy.
•The Fund may have concentrated portfolios (holding a limited number of investments and/or large positions in a relatively small number of stocks). If
one or more of those investments decline or are otherwise adversely affected, it may have a more pronounced effect on the Fund’s value than if a larger
number of investments were held or if the Fund had fewer large individual positions. Accordingly, the Fund may carry a higher degree of risk and NAV
volatility than a fund which invests in a broad range of companies and or does not take large positions in a relatively small number of stocks.
•The investment decision is yours but you should not invest unless the intermediary which sells you the Fund has advised you that the Fund is suitable
for you and has explained why, including how investment in the Fund will be consistent with your investment objectives.
•Investors should not base their investment decision on this document alone and must refer to the Prospectus of each Fund prior to investing.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has advised you
that the product is suitable for you and explained how it is consistent with your investment objectives. Note: Fundsupermart.com is a self-directed online
distributor and we only provide limited personal financial advisory services upon a particular request from client.
31
Risk Disclosure Statement
• Aberdeen Global - Japanese Smaller Companies Fund (USD-Hedged) A2 Acc
RISK DISCLOSURE STATEMENTS
• The Fund invests in equities and equity-related securities of smaller companies in Japan. Smaller Companies are defined as companies
with a market capitalisation of under Yen 250 billion at
the date of initial investment and a maximum market capitalisation of Yen 500 billion at any time subsequent.
• The Fund’s exposure to a single country market increases potential volatility.
• Investment in this fund may involve a high degree of risk and may not be suitable for all investors. It is possible that the entire value of
the investment could be lost.
• Investors are responsible for their investment decisions and should ensure that the intermediary has advised on fund’s suitability and
consistency with their investment objective. If in doubt, please seek independent financial and professional advice.
• Investors should not invest in this Fund based solely on this document and should read the relevant offering documents (particularly the
investment policies and risk factors) for more details before investing.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has
advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:
Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular
request from client.
First State Asian Equity Plus Fund (USD) I Dis
RISK DISCLOSURE STATEMENTS
• Please refer to the Fund's offering document for the details of its ""Risk factors"", particularly the Emerging Markets Risks.
• The value of the Fund can be extremely volatile according to the change of market situation and could go down within a short period of
time. It is possible that the entire value of your investment could be lost.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has
advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:
Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular
request from client.
32
Risk Disclosure Statement
• Mirae Asset Asia Great Consumer Equity Fund (USD) A
RISK DISCLOSURE STATEMENTS
• The Sub-Fund invests in emerging markets that should be regarded as having higher political, regulatory, volatility, liquidity, economic
and foreign currency risks than a fund which invests in developed markets.
• The Sub-Fund invests mainly in single geographical region (i.e. Asia ex Japan region) or specific sector should be regarded as having
higher concentration risk and is more volatile than a fund following a more diversified policy.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has
advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:
Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular
request from client.
Fidelity Funds - Emerging Europe, Middle East And Africa Fund A-Acc-USD
RISK DISCLOSURE STATEMENTS
• The Fidelity Funds is an umbrella fund with sub-funds investing in equities, debt, money market securities and/or other instruments,
including derivatives.
• These funds may be subject to the risks of investing in emerging markets which may be more volatile, and to concentration risks of
investing in a single or in a limited number of market(s) or sector(s).
• These funds may invest in non-investment grade bonds which may be more volatile and subject to greater credit and liquidity risks.
• These funds may invest in derivative instruments and / or structured products which may involve additional risks. (For example, leverage
may cause greater volatility.)
• Investors may suffer substantial loss of their investments in the funds.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has
advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:
Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular
request from client.
33
Risk Disclosure Statement
• JPMorgan Latin America Equity A (Dist) – USD
RISK DISCLOSURE STATEMENTS
•The Fund invests in emerging markets and thus has exposure to the relevant currency and settlement risk. The Fund’s price movement
may be subject to significant volatility and thus may go down or up sharply over a short time span.
•Investors may be subject to substantial losses.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has
advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:
Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular
request from client.
First State China Growth Fund (USD) I
RISK DISCLOSURE STATEMENTS
• The Fund is a portfolio that invests in securities issued by companies with either assets in, or revenues derived from the People’s
Republic of China.
• Other than the “Risk factors” of the Fund’s offering document - particularly the China Market Risk and Emerging Markets Risks, the Fund
also involves Single Country Risk.
• The value of the Fund can be extremely volatile according to the change of market situation and could go down within a short period of
time. It is possible that the entire value of your investment could be lost.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has
advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:
Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular
request from client.
34
Risk Disclosure Statement
• Neuberger Berman China Equity Fund (USD) A Acc
RISK DISCLOSURE STATEMENTS
• The Fund will invest primarily in equity and equity-linked securities which are listed or traded on recognised markets and issued by
companies that are incorporated or organized under the laws of, or that have a principal office in, the PRC, Hong Kong SAR, Macau SAR
or Taiwan (the “Greater China Region”), generally derive a majority of their total revenue or profits from (a) goods that are produced or
sold, (b) investments made, or (c) services performed, in the Greater China Region, or generally hold a majority of their assets in the
Greater China Region, (each a “Greater China Company”). The Portfolio will invest primarily in mid and large capitalisation companies.
• The Fund is therefore exposed to investment, Equity Securities, Emerging Markets, Chinese Market, Lower Rated Securities, Currency
and Currency Hedging Risk.
• The Fund may use financial derivative instruments (FDI) for efficient portfolio management and hedging purposes. FDIs, however, will
not be extensively used for investment purposes (including efficient portfolio management) nor for hedging purposes.
• In respect of Distributing Shares, the Fund may at its discretion pay dividends out of the capital of the Fund. Dividends paid out of capital
amount to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original
investment. Such dividends may result in an immediate decrease in the net asset value of the relevant shares.
• Investors may be subject to substantial losses.
• Investors should not solely rely on this document to make any investment decision. Please refer to the offering documents for details
including the risk factors before making any investment decisions.
• Please seek independent financial and professional advice if necessary.
• Before you decide to invest, you should make sure the intermediary has explained to you that the fund is suitable for you.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has
advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:
Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular
request from client.
35
Risk Disclosure Statement
• Parvest Equity USA Growth (USD)
RISK DISCLOSURE STATEMENTS
• The fund may invest in derivatives (up to 100%) and structured investment products e.g. credit default swaps and collateralized debt
obligations. These types of investments can involve material additional risks, for example counterparty default risk or insolvency, and may
expose the fund to significant losses.
• The fund has significant exposure to a single country and is likely to be subject to a higher than average volatility.
• Please refer to the Prospectus and Hong Kong Covering Document for further information (including the risk factors) about the fund.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has
advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:
Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular
request from client.
AB FCP I - American Growth Portfolio (USD) A
RISK DISCLOSURE STATEMENTS
• Investment in the portfolio may also involve country risk, management risk and focused portfolio risk. The value of the portfolio can be
volatile and can go down substantially within a short period of time. It is possible that the entire value of your investment in the portfolio
can be lost.
• The portfolio is entitled to use derivative instruments for hedging and efficient portfolio management purposes which may involve
additional risks. In adverse situations, the portfolio's use of derivative instruments may become ineffective in hedging or efficient portfolio
management and the portfolio may suffer significant losses.
• Investors should not rely on this document alone to make investment decisions.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has
advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:
Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular
request from client.
36
Risk Disclosure Statement
• Legg Mason ClearBridge Growth Fund (USD) A Acc
RISK DISCLOSURE STATEMENTS
• INVESTMENT INVOLVES RISKS. Past performance is not indicative of future results.
• Investors should read and understand the Fund’s most current offering document, including details of risk factors relevant to the Fund
before making an investment in the Fund.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has
advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:
Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular
request from client.
Franklin U.S. Opportunities Fund (USD) A (Acc)
RISK DISCLOSURE STATEMENTS
• The Fund may invest in small and mid-sized companies, and as a result may be subject to lower liquidity and more volatility than funds
investing wholly in larger companies.
• The Fund may invest primarily in a single sector, and is subject to higher concentration risk and as a result may be more volatile than
funds following a more diversified policy.
• This investment involves risks which may result in loss of part or entire amount of your investment.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has
advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:
Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular
request from client.
37
Risk Disclosure Statement
• BlackRock Global Funds - US Dollar Short Duration Bond Fund (USD) A3 Mdis
RISK DISCLOSURE STATEMENTS
• The Fund invests in debt securities that are subject to both actual or perceived downgrading. The Fund may be affected by changes in
prevailing interest rates and by credit quality considerations. The Fund's investments are concentrated in the US. This may result in
greater volatility than more broad-based investments.
• The Fund may use derivatives to hedge market and currency risk and for efficient portfolio management. However, derivatives will not
be extensively or primarily used for investment purposes. In an adverse situation, the Fund may suffer significant losses from their
derivatives usage for hedging and efficient portfolio management.
• The value of a Fund can be volatile and could go down substantially within a short period of time. It is possible that the certain amount of
your investment could be lost.
• Investors should not only base on this marketing material alone to make investment decision.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has
advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:
Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular
request from client.
PIMCO Global Bond (USD) E Acc
RISK DISCLOSURE STATEMENTS
• The Fund may invest wholly through financial derivative instruments such as collateralised debt obligations, credit default swaps and
asset-backed securities in order to meet its investment objective and such investment policies or portfolio management techniques may
as a result lead to a higher volatility to the net asset value of the Fund.
• This investment may involve risks that could result in loss of part or entire amount of your investment.
• In making investment decisions, investors should not rely solely on this material.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has
advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:
Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular
request from client.
38
Risk Disclosure Statement
• Templeton Global Total Return Fund (USD) A (Acc)
RISK DISCLOSURE STATEMENTS
• The Fund may invest in emerging market securities which are exposed to higher risk of economic, political and regulatory changes that
may pose additional risk to the Fund.
• The Fund may invest up to 100% of their total net assets in structured products, mortgage- and asset-backed securities and derivatives
(such as credit default swaps, forwards and options), and is subject to significant liquidity and counterparty default risks.
• The Fund may invest in defaulted debt securities on which the issuers are not currently making interest payment, and as a result may be
subject to liquidity and counterparty default risks.
• The Fund may invest in non-investment grade debt securities, and as a result may be subject to liquidity and counterparty default risks.
• This investment involves risks which may result in loss of part or entire amount of your investment.
• The Fund’s value may be affected by exchange control regulations and changes in exchange rates.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has
advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:
Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular
request from client.
Invesco Emerging Markets Bond Fund (USD) A Dist
RISK DISCLOSURE STATEMENTS
• The Fund is an investment fund investing in emerging markets bonds.
• Investors should note the interest rate risk, credit risk, counterparty risk and emerging markets associated with the investment.
• Financial derivatives instruments may be used for the purpose of meeting the investment objective of the fund; and such investment
policies or portfolio management techniques may lead to a higher volatility to the net asset value of the fund and can involve additional
risk, including but not limited to counterparty default risk or insolvency.
• The value of the product can be volatile and could go down substantially within a short period of time.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has
advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:
Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular
request from client.
39
Risk Disclosure Statement• Neuberger Berman Emerging Market Debt - Local Currency Fund (USD) A Mdis
RISK DISCLOSURE STATEMENTS• The Fund invests primarily in debt securities and money market instruments which are issued by governments of, government agencies in or corporate issuers which have their head office or exercise an overriding part of their economic activity in Emerging Market Countries and which are denominated in or are exposed to the currencies of such Emerging Market Countries.
• • The Fund is therefore exposed to investment, credit and sovereign debt, lower rated securities, emerging markets, concentration, currency, currency hedging, fixed income securities and downgrade risks, risk of investing in securities issued by or guaranteed by a single sovereign issuer with a credit rating below investment grade and risk of investing in asset-backed securities.
• • The Fund may make use of financial derivative instruments (FDI) in its investment program. The Fund may use FDI extensively for investment purposes, including efficient portfolio management. The Fund may have a net leveraged exposure of over 100% of its net asset value as a result of its use of FDI, and may result in a significant or a total loss of the Fund.
• • In respect of Distributing Shares, the Fund may at its discretion pay dividends out of the capital of the Fund. Dividends paid out of capital amount to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Such dividends may result in an immediate decrease in the net asset value of the relevant shares.
• • Investors should not solely rely on this document to make any investment decision. Please refer to the offering documents for details including the risk factors before making any investment decisions.
• • Please seek independent financial and professional advice if necessary.
• • Before you decide to invest, you should make sure the intermediary has explained to you that the fund is suitable for you.
• • The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note: Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular request from client.
•
BlackRock Global Funds - Global High Yield Bond Fund (USD) A2RISK DISCLOSURE STATEMENTS• The Fund invests in debt securities that are subject to both actual or perceived downgrading. The Fund may be affected by changes in prevailing interest rates and by credit quality considerations. The Fund may be subject to a higher risk of default when it invests in distressed securities.
• • Certain shares of the Fund pay dividends gross of expenses or from capital at the Directors’ discretion. Paying dividends gross of expenses may result in more income being available for distribution; however these shares may effectively pay dividends from capital. Dividends paid from capital may amount to a partial return of an investor’s original investment or capital gains. All declared dividends result in an immediate reduction in the NAV price of the share class on the ex-dividend date.
• • The Fund may use derivatives to hedge market and currency risk and for efficient portfolio management. However, derivatives will not be extensively or primarily used for investment purposes. In an adverse situation, the Fund may suffer significant losses from their derivatives usage for hedging and efficient portfolio management.
• • The value of a fund can be volatile and could go down substantially within a short period of time. It is possible that a certain amount of your investment could be lost.
• • Investors should not only base on this marketing material alone to make investment decision.
• • The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note: Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular request from client.
40
Risk Disclosure Statement
• Allianz US High Yield (USD) A Mdis
• RISK DISCLOSURE STATEMENTS
• The Fund is therefore exposed to significant risks which include investment/general market, creditworthiness and interest rate changes
risks.
• The Fund may invest in high-yield, non-investment grade investments and unrated securities which may subject to higher risks, such as
credit, default, interest rate changes, general market and liquidity risks and therefore may increase the risk of loss of original investment.
• The Fund may invest in financial derivative instruments ("FDI") for efficient portfolio management (including for hedging) which may
expose to higher counterparty, liquidity and market risks. The Fund will not invest extensively in FDI for investment purpose.
• Dividend payments may, at the sole discretion of the Investment Manager, be made out of the Fund’s income and/or capital which
represents a return or withdrawal of part of the amount investors originally invested and/or capital gains attributable to the original
investment. This may result in an immediate decrease of the NAV and the capital of the Fund available for investment in the future and
capital growth may be reduced.
• This investment may involve risks that could result in loss of part or entire amount of your investment.
• In making investment decisions, investors should not rely solely on this material.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has
advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:
Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular
request from client.
41
Risk Disclosure Statement
• First State Asian Quality Bond Fund (USD) IRISK DISCLOSURE STATEMENTS• The Fund invests in debt securities of issuers organised, headquartered or having their primary business operations in Asia.• The Fund invests in emerging markets which may involve a greater risk than developed markets including sharp price movements, liquidity risk and currency risk. The Fund may invest in below investment grade and unrated debt securities. This exposes the Fund to greater liquidity risk, default risk and price changes due to change in the issuer's creditworthiness. The Fund invests in fixed income securities which may be impacted by movement in interest rates. It is possible that the entire value of your investment could be lost.• For the monthly distributing Shares Class, any fees and expenses relating to this Share Class may be paid out of capital resulting in an increase in distributable income. At times the dividend may be paid out of capital. This amounts to a partial return of an investor's original investment, or from any capital gains attributable to that original investment, and may result in an immediate decrease of the Net Asset Value per share.• You should not base your investment decision solely on this document. You should not invest unless the intermediary who sells it to you has advised you that the Fund is suitable for you and explained how it is consistent with your investment objectives.• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note: Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular request from client.
BlackRock Global Funds - Asian Tiger Bond Fund (USD) A3 MdisRISK DISCLOSURE STATEMENTS• The Fund invests in debt securities that are subject to risk of downgrading. The Fund is exposed to changes in prevailing interest rates and by credit quality considerations. The Fund may invest in higher yielding bonds which may have higher risk of loss. Investment in certain emerging markets may subject the Fund to additional risks arising from political, economic and market factors. The Fund also invests in bonds issued or guaranteed by governments or authorities which may involve political, economic, default, or other risks, and in turn have an adverse impact on the Fund.• Certain shares of the Fund pay dividends gross of expenses or from capital at the Directors’ discretion. Paying dividends gross of expenses may result in more income being available for distribution; however these shares may effectively pay dividends from capital. Dividends paid from capital may amount to a partial return of an investor’s original investment or capital gains. All declared dividends result in an immediate reduction in the NAV price of the share class on the ex-dividend date.• The Fund may use derivatives to hedge market and currency risk and for efficient portfolio management. However, derivatives will not be extensively or primarily used for investment purposes. In an adverse situation, the Fund may suffer significant losses from their derivatives usage for hedging and efficient portfolio management.• The value of a fund can be volatile and could go down substantially within a short period of time. It is possible that a certain amount of your investment could be lost.• Investors should not base their investment decision on this marketing material alone.• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note: Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular request from client.
42
Risk Disclosure Statement
• BEA Union Investment Asian Bond And Currency Fund (USD) A Acc
RISK DISCLOSURE STATEMENTS
• The Fund invests in emerging markets, which are subject to higher liquidity and volatility risks.
• The Fund may invest in lower-rated fixed income instruments, including below investment grade and non-rated debt securities, which
are subject to greater credit and liquidity risks than higher-rated securities.
• The Fund may enter into futures contracts and currency forward contracts for hedging and investment purposes. For futures contracts
and currency forward contracts entered into on an unhedged basis, the net total aggregate value of contract prices will not exceed 20% of
the total net asset value of the Fund. Given the leverage effect embedded in futures and currency forward contracts, the Fund may be
exposed to significant losses.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has
advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:
Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular
request from client.
Fidelity Funds - Asian High Yield Fund A-Acc-USD
RISK DISCLOSURE STATEMENTS
• The Fidelity Funds is an umbrella fund with sub-funds investing in equities, debt, money market securities and/or other instruments,
including derivatives.
• These funds may be subject to the risks of investing in emerging markets which may be more volatile, and to concentration risks of
investing in a single or in a limited number of market(s) or sector(s).
• These funds may invest in non-investment grade bonds which may be more volatile and subject to greater credit and liquidity risks.
• These funds may invest in derivative instruments and / or structured products which may involve additional risks. (For example, leverage
may cause greater volatility.)
• Investors may suffer substantial loss of their investments in the funds.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has
advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:
Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular
request from client.
43
Risk Disclosure Statement
• BlackRock Global Funds - Global High Yield Bond Fund (USD) A2
RISK DISCLOSURE STATEMENTS
• The Fund invests in debt securities that are subject to both actual or perceived downgrading. The Fund may be affected by changes in prevailing
interest rates and by credit quality considerations. The Fund may be subject to a higher risk of default when it invests in distressed securities.
• Certain shares of the Fund pay dividends gross of expenses or from capital at the Directors’ discretion. Paying dividends gross of expenses may result
in more income being available for distribution; however these shares may effectively pay dividends from capital. Dividends paid from capital may
amount to a partial return of an investor’s original investment or capital gains. All declared dividends result in an immediate reduction in the NAV price of
the share class on the ex-dividend date.
• The Fund may use derivatives to hedge market and currency risk and for efficient portfolio management. However, derivatives will not be extensively
or primarily used for investment purposes. In an adverse situation, the Fund may suffer significant losses from their derivatives usage for hedging and
efficient portfolio management.
• The value of a fund can be volatile and could go down substantially within a short period of time. It is possible that a certain amount of your investment
could be lost.
• Investors should not only base on this marketing material alone to make investment decision.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has advised you
that the product is suitable for you and explained how it is consistent with your investment objectives. Note: Fundsupermart.com is a self-directed online
distributor and we only provide limited personal financial advisory services upon a particular request from client.
Allianz US High Yield (USD) A MDis
RISK DISCLOSURE STATEMENTS
• The Fund is therefore exposed to significant risks which include investment/general market, creditworthiness and interest rate changes risks.
• The Fund may invest in high-yield, non-investment grade investments and unrated securities which may subject to higher risks, such as credit, default,
interest rate changes, general market and liquidity risks and therefore may increase the risk of loss of original investment.
• The Fund may invest in financial derivative instruments ("FDI") for efficient portfolio management (including for hedging) which may expose to higher
counterparty, liquidity and market risks. The Fund will not invest extensively in FDI for investment purpose.
• Dividend payments may, at the sole discretion of the Investment Manager, be made out of the Fund’s income and/or capital which represents a return
or withdrawal of part of the amount investors originally invested and/or capital gains attributable to the original investment. This may result in an
immediate decrease of the NAV and the capital of the Fund available for investment in the future and capital growth may be reduced.
• This investment may involve risks that could result in loss of part or entire amount of your investment.
• In making investment decisions, investors should not rely solely on this material.
• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has advised you
that the product is suitable for you and explained how it is consistent with your investment objectives. Note: Fundsupermart.com is a self-directed online
distributor and we only provide limited personal financial advisory services upon a particular request from client.
44
Disclaimer
Investment involves risk. The price of securities may go down as well as up, and under
certain circumstances an investor may sustain a total or substantial loss of investment.
Past performance is not necessarily indicative of the future or likely performance of the
fund. Investors should read the relevant fund's prospectus for further details including the
risk factors before making any investment decision. An Investor should make an
appraisal of the risks involved in investing in these products and should consult his/her
own independent and professional advises to ensure that any decision made is suitable
with regards to his/her circumstances and financial position. The above materials are
issued by iFAST Platform Services (HK) Limited and have not been reviewed by the SFC.
When the investment returns of a fund are denominated in a foreign currency other than
the USD/HKD, US/HK dollar-based investors are exposed to exchange rate fluctuations.
Funds that are invested in emerging markets may involve a higher degree of risk, and
may be more sensitive to price movements relative to the developed markets.
45