Monthly Investment Outlook November 2015 · 2015-12-11 · Monthly Investment Outlook November 2015 1. Table of Contents ... • US’s third quarter annualised economic growth slowed

Monthly Investment Outlook

November 2015

1

Table of Contents

• Market Update P.3

• Market Performance Review P.6

• Portfolio’s Performance Review P.9

• Portfolio Holdings’ Performance P.10

• Investment View P.17

2

• US’s third quarter annualised economic growth slowed down to 1.5% quarter-on-quarter mainly because of a reduction in inventories. If excluding the change in inventories, the economic growth will be 3%. Personal consumption expenditure rose 3.2% during the same period with household spending continuously supporting US’ economic growth.

• The European Central Bank (ECB) president Draghi mentioned that as both the European economy and the price level are facing downward pressure now, the bank may consider expanding its quantitative easing scheme before year-end.

• China’s economy grew a mere 6.9% in the third quarter, the slowest since 2009. The People’s Bank of China announced for the third time this year a RRR and interest rate cut, slashing 50 basis points off the reserve requirement ratio (RRR) on 23 October, as well as cutting 25 basis points off both the deposit and lending interest rates while canceling the deposit rate’s ceiling.

Market Update (1)

Source: iFAST compilations;

data as at end-October 2015

3

Market Update (2)

• The Bank of Japan maintained its monetary policy unchanged in October

while lowering its economic growth forecast for the current fiscal year from

1.7% to 1.2%.

• South Korea’s third quarter economy rose 2.6% year-on-year to beat market

consensus. On a quarterly basis, the economy rose 1.25% to become the

fastest growth since the second quarter of 2010 and was better than

estimates.

• Taiwan’s third quarter economy shrank 1.01% year-on-year, the first time

since the fourth quarter of 2009, and the Executive Yuan has announced a

NTD 4.08 billion stimulus package to boost domestic demand.



4

Market Update (3)

• The Indian government opened up local government bonds to foreign

capital for the first time on 12 October, and the corresponding 35 billion

rupees quota were fully allocated within three days.

• Fitch lowered Brazil’s sovereign credit rating from BBB to BBB- on 15

October.

• Standard & Poor’s raised Ukraine’s sovereign credit rating from Selective

Default (SD) to B- with stable rating outlooks as the government has already

completed its debt restructuring deal, which lowered its sovereign bond’s

default risk in the next two to three years.

• Emerging bond market recorded a net inflow of USD 7.7 billion in October,

the highest since January this year.



5

October’s Best-Performing Markets

(in local currencies)Market Index 1 Month Ranking Year-to-date Ranking

China A CSI 300 10.34% 1 0.01% 6

Japan Nikkei 225 9.75% 2 9.35% 2

China Hang Seng Mainland100 9.22% 3 -6.14% 12

Hong Kong HSI 8.60% 4 -4.09% 10

US S&P 500 8.30% 5 0.99% 5

Europe Stoxx 600 7.97% 6 9.61% 1

Asia ex-Japan MSCI Asia ex Japan 7.91% 7 -7.50% 14

World MSCI AC World 7.76% 8 -1.41% 7

Singapore FTSE Straits Times 7.43% 9 -10.90% 17

Russia Russian Trading System Cash 7.07% 10 6.93% 3

Emerging Markets MSCI Emerging Markets 7.04% 11 -11.34% 18

Indonesia Jakarta Stock Exchange 5.48% 12 -14.77% 19

Taiwan Taiwan Stock Exchange 4.56% 13 -8.09% 15

Australia S&P/ASX 200 4.34% 14 -3.17% 9

Thailand Stock Exchange of Thailand 3.41% 15 -6.86% 13

South Korea Korea Composite Stock Price 3.40% 16 5.94% 4

Malaysia KLCI 2.76% 17 -5.42% 11

India BSE SENSEX 1.92% 18 -3.06% 8

BrazilIbovespa Brasil Sao Paulo Stock

Exchange1.80% 19 -8.28% 16

Source: iFAST compilations; data as at end-October 2015

6

October’s Best-Performing Markets

(in HKD)Market Index 1 Month Ranking Year-to-date Ranking

Indonesia Jakarta Stock Exchange 12.69% 1 -22.86% 17

China A CSI 300 11.05% 2 -1.78% 7

China Hang Seng Mainland 100 9.22% 3 -6.14% 9

Singapore FTSE Straits Times 9.19% 4 -15.79% 16

Japan Nikkei 225 8.81% 5 8.12% 1

Hong Kong Hang Seng Index 8.60% 6 -4.09% 8

US S&P 500 8.30% 7 0.94% 4

Asia ex-Japan MSCI Asia ex Japan 7.90% 8 -7.55% 11

World MSCI AC World 7.75% 9 -1.46% 6

South Korea Korea Composite Stock Price 7.35% 10 1.65% 3

Russia Russian Trading System Cash 7.06% 11 6.83% 2

Emerging Market MSCI Emerging Markets 7.04% 12 -11.39% 13

Russia Russian Trading System Cash 6.38% 13 -0.24% 5

Taiwan Taiwan Stock Exchange 6.27% 14 -10.55% 12

Australia S&P/ASX 200 6.24% 15 -15.34% 15

Thailand Stock Exchange of Thailand 5.61% 16 -14.12% 14

Malaysia KLCI 4.90% 17 -22.95% 18

BrazilIbovespa Brasil Sao Paulo Stock

Exchange4.22% 18 -37.22% 19

India BSE SENSEX 2.10% 19 -6.35% 10


7

October’s Best-Performing Bond Classes

(in HKD)

8

Bond Class 1 Month Year-to-date

Emerging-Market Local Currency Bond 4.23% -10.39%

Emerging-Market Hard Currency Bond 3.16% 2.83%

Global High-Yield Bond 3.02% -0.25%

Asian Bond 1.61% 3.18%

Developed Countries’ Sovereign Bond -0.17% -0.95%


Portfolio Since-Inception Performance

(as at end Oct 15)

See http://www.fundsupermart.com.hk/ for detailed fund allocation

Source: iFAST compilations; 0.5% upfront sales charge has been deducted from returns

PortfolioPortfolio

Performance

Index

Performance

Aggressive 4.0% 3.3%

Moderately

Aggressive3.6% 2.7%

Balanced 2.2% 2.2%

Moderately

Conservative1.2% 1.6%

Conservative 0.6% 1.0%

9

http://www.fundsupermart.com.hk/

Portfolio Holdings’ Performance—

Equity Funds

For past performance, seehttp://www.fundsupermart.com.hk

Source: Bloomberg and iFAST compilations

Name October Return (%)

ETF

Vanguard S&P 500 Index ETF 8.37

Fund

Legg Mason ClearBridge US Aggressive Growth Fund (USD) A Acc 8.52

Threadneedle IF ICVC - European Select Fund (USD-Hedged) RNA 7.49

Aberdeen Global - Japanese Smaller Companies Fund (USD-

Hedged) A2 Acc10.79

First State Asian Equity Plus Fund (USD) I Dis 6.88

Mirae Asset Asia Great Consumer Equity Fund (USD) A 5.80

Fidelity Funds - Emerging Europe, Middle East And Africa Fund A-

Acc-USD6.00

JPMorgan Latin America Equity A (Dist) - USD 5.24

First State China Growth Fund (USD) I 9.20

Neuberger Berman China Equity Fund (USD) A Acc 11.19

10


Neuberger Berman China Equity Fund

(USD) A Acc

11

Name

Accumulative

return(%)Annual return(%)

1 month 2014 2013 2012 2011 2010

GAM Star China Equity (USD) A Acc 12.48 -5.58 26.34 17.05 -22.9 15.15

Neuberger Berman China Equity Fund (USD) A Acc 11.44 21.6 4.44 22.23 -14.19 9

Matthews Asia Funds - China Dividend Fund (USD) A Dist 8.64 -3.44 6.31 11.03 -18.49 10.58*

Jupiter Global Fund - Jupiter China Select (USD) L Acc 8.19 -3.39 32.03 19.67 -34.4 6.66

Parvest Equity China (USD) 7.62 0.34 8.31* - - -

Nikko AM China Multi Access Opportunities Fund (USD) 7.07 8.69 -1.08 19.1 -22.35 0.71

Fidelity Funds - China Focus Fund A-USD 6.77 11.72 9.93 15.95 -20.3 5.99

Macquarie IPO China Concentrated Core Fund (USD) A2 6.77 10.33 12.47 15.99 -33.54 8.07

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First State China Focus Fund (USD) I 4.02 -4.64 17.31 21.25 -14.87 16.54

Allianz China Equity (USD) A 3.93 6.5 7.96 16.32 -23.45 13.12

Allianz China Equity (USD) A 3.57 5.37 8.86 27.36 -19.25* -

Deutsche Invest I Chinese Equities (USD) LC 3.53 0.5 10.75 15.63 -20.73 1.61

Harvest Funds (Cayman) - China Equity Fund (HKD) A 3.44 7.25 12.46* - - -

Aberdeen Global - Chinese Equity Fund (USD) A2 3.43 -1.63 -4.13 18.13 -14.96 28.05

Principal LSF - China Equity Fund (HKD) 3.35 7.85 5.34 20.16 -21.17 8.77

Average 6.71 6.73 10.17 15.3 -21.72 8.12

• This fund remains to be the best-performing fund this month within the equity holdings

• The non-benchmark Chinese A-share stocks continue to contribute to the fund’s relative

performance

For past performance, see http://www.fundsupermart.com.hk

Source: Bloomberg and iFAST compilations; Data as at 30 Oct 2015

For fund(s) with performance figure less than 1 calendar year in the 1st year of its launch, the performance figure shown is calculated since launch

until the end of the particular calendar year.

Funds are ranked by 1 month cumulative return

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKGAM065

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKUL00015

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKMA006

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKJUP004

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKABN008

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKDBSCMA

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKFICHFU

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKMQ003

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKFSCF

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKAGI001


http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKDWSICE

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKHFCEF

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKABCOPP

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKPRCHINA


Aberdeen Global - Japanese Smaller

Companies Fund (USD-Hedged) A2 Acc

12

Name

Accumulative

return(%)Annual return(%)

1 month 2014 2013 2012 2011 2010

Aberdeen Global - Japanese Equity Fund (USD-hedged) A2 Acc 12.64 14.42 0.81* - - -

Aberdeen Global - Japanese Equity Fund (JPY) A2 11.72 1.16 15.4 15.01 -7.82 20.92

Henderson Horizon Fund Japan Opportunities Fund (USD) A2 10.84 -5.39 30.17 2.36 -9.71 17.51

Aberdeen Global - Japanese Smaller Companies Fund (USD-Hedged) A2 Acc 10.79 25.62 17.32* - - -

Principal GIF - Japanese Equity Fund - A Class Acc Unit (USD) 10.73 -6.3 24.96 5.18 -9.17 16.69

Aberdeen Global - Japanese Smaller Companies Fund (JPY) A2 9.86 10.91 22.61 16.27 -4.25 25.34

Old Mutual Japanese Equity Fund (JPY) A 9.42 -8.42 31.74 5.21 -14.79 14.93

Invesco Japanese Equity Core Fund (USD Hedged) A Acc 9.27 2.67 57.64 22.48* - -

Fidelity Funds - Japan Smaller Companies Fund A-Acc-JPY 8.42 -3.07 32.71 5.01 -8.62 11.45

JPMorgan Japan Equity J (dist) - USD 7.68 -6.84 34.92 10.48 -13.03 9.57

JPMorgan Japan (Yen) Fund 7.23 -5 51.87 6.35 -11.45 15.06

Fidelity Funds - Japan Fund A-Acc-JPY 6.64 -5.7 19.09 6.65 -18.16 12.96

Henderson Horizon Fund - Japanese Smaller Companies Fund (USD Hedged) A2 6.57 - - - - -

Henderson Horizon Fund - Japanese Smaller Companies Fund (USD) A2 6.44 4.01 30.29 12.62 -6.73 26.2

JPMorgan Japan Smaller Company (Yen) Fund 6.43 -3.13 47.32 -1.63 -4.4 -1.92

PineBridge Japan Small & Mid Cap Equity Fund (USD) A 4.95 0.55 37.73 13.87 -14.2 19

Average 8.73 1.03 30.31 9.22 -10.19 15.64


Source: Bloomberg and iFAST compilations; Data as at 30 Oct 2015

For fund(s) with performance figure less than 1 calendar year in the 1st year of its launch, the performance figure shown is calculated

since launch until the end of the particular calendar year.


• This fund is the worst-performing fund in the previous month within the equity holdings

• This fund rebounded significantly last month

• We asked for an explanation from the fund manager regarding its third quarter underperformance


http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKABD004

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKJPEU


http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKPRJAEF

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKABD011

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKSKD006

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKIVC057

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKFIL014

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKJF06



http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKHH003

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKHH002


http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKPB1004


Aberdeen Global - Japanese Smaller

Companies Fund (USD-Hedged) A2 Acc

13

Source: Aberdeen Asset Management; data as at end-September 2015

• The fund manager said its second-largest holding Pigeon is reorganising its distribution system in China, and the inventory level inevitably rises. Although the decision benefits the long-term growth, it still leads to a recent sell-off.

• The sixth-largest holding, commercial property landlord Daibiru, saw its shares being sold off despite stable leasing and occupancy rates. Currently its shares are trading at about half of the company’s net asset value.

• The same could be observed in other core holdings such as Kansai Paint and Resorttrust. The fund manager thinks that these companies’ fundamentals haven’t changed; the recent sell-off is ill-advised.

Portfolio Holdings’ Performance—

Fixed Income Funds


Source: Bloomberg and iFAST compilations

Name October Return (%)

Fund

BlackRock Global Funds - US Dollar Short Duration Bond Fund

(USD) A3 Mdis0.00%

PIMCO Global Bond (USD) E Acc 0.75%

Templeton Global Total Return Fund (USD) A (Acc) 3.83%

Invesco Emerging Markets Bond Fund (USD) A Dist 3.18%

Neuberger Berman Emerging Market Debt - Local Currency Fund

(USD) A Mdis3.82%

First State Asian Quality Bond Fund (USD) I 1.47%

BlackRock Global Funds - Asian Tiger Bond Fund (USD) A3 Mdis 2.15%

BEA Union Investment Asian Bond And Currency Fund (USD) A Acc 3.96%

Fidelity Funds - Asian High Yield Fund A-Acc-USD 4.18%

BlackRock Global Funds - Global High Yield Bond Fund (USD) A2 3.11%

Allianz US High Yield (USD) A MDis 2.08%

14


Fidelity Funds - Asian High Yield Fund A-

Acc-USD


Source: Fidelity Investment and iFAST compilations


Fact Sheet Information as at end-September 2015

Fund name

Accumulative

return (%)Annual return(%)

1 month 2014 2013 2012 2011 2010

Fidelity Funds - Asian High Yield Fund A-Acc-USD 3.95 3.52 2.72 19.77 -7.67 19.46

Eastspring Investments - Asian High Yield Bond Fund

(USD) Adm3.51 5.01 -0.81 11.11* - -

• Our platform offers several option for Asian High-Yield Bond funds; this fund is the best in the category.

• This fund focuses more on China, but its industry allocation is well-diversified with a relatively lower

allocation on China’s property developer bonds.

• The People’s Bank of China cut the required reserve ratio and the interest rate for the third time in

October while other Asian countries kept their monetary policies loose. The sufficient liquidity helps

benefit financing activities of issuers with lower credit quality within the region.

• Chinese corporations tend to issue bonds in the onshore market; the falling offshore bond supply has

pushed up the prices.

15



http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKEAST008

BlackRock Global Funds - US Dollar Short

Duration Bond Fund (USD) A3 Mdis

16


Source: iFAST compilations; Data as at 2 Nov 2015


• With the global financial market starting to stabilise and the Federal Reserve closing on its rate hike

timing, investors’ risk appetites are improving. Short-term bond yield rises in the month.

• USD bonds, especially those short-term bonds, generally saw price adjustment last month.

Fund name

Accumulative

return (%)Annual return(%)

1 month 2014 2013 2012 2011 2010

Eastspring Investments - US Investment Grade Bond (USD) A 0.67 6.55 -1.89 10.86 7.49 9.35

AllianceBernstein - American Income Portfolio (USD) AT 0.6 6.03 -1.45 9.22 5.7 10.83

Legg Mason Western Asset U.S. Adjustable Rate Fund (USD) A Acc 0.25 6.48 -1.82 6.62 6.05 9.79

Eastspring Investments - US High Investment Grade Bond (USD) A 0.13 5.69 -3.64 5.86 5.12 7

PIMCO Total Return Bond (USD) E Acc 0.08 3.27 -2.87 8.31 1.81 6.85

Legg Mason Western Asset U.S. Adjustable Rate Fund (USD) A Acc -0.07 -0.48 0.27 4.93 -0.77 11.17

Franklin U.S. Government Fund (USD) A (Mdis) -0.09 3.71 -2.06 0.87 6.09 6.03

BlackRock Global Funds - US Dollar Short Duration Bond Fund (USD)

A3 Mdis-0.11 1.03 0.92 4.02 1.82 5.23

Old Mutual Total Return USD Bond Fund (USD) A -0.12 4.36 -1.87 9.2 2.04 8.51

PARVEST Bond USD Short Duration (USD) -0.16 2.54 -4.4 0.85 8.26 5.08

Legg Mason Western Asset U.S. Short-Term Government Fund (USD)

A Acc-0.22 -0.01 -0.79 -0.22 1.58 2.16

Fidelity Funds - US Dollar Bond Fund A-Acc-USD -0.73 6.81 -3.28 6.26 9.28 8.56

Manulife Global Fund - U.S. Bond Fund (USD) AA -3.38 4.54 -0.49 8.7 5.23 9.43

Average return -0.24 3.89 -1.8 5.81 4.59 7.69


http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKPRUIGB

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKAB001

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKWAARI

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKPRUSHI


http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKWAARI

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKFT34


http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKSKD008

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKBUBU

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKWASTGI


http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?sedolnumber=HKMAL021

Investment Perspective:

Can the Asian equity market rebound persist? MSCI Asia ex Japan Index’s sectorial performance since 24 August

Change（%） Relative to MSCI Asia ex Japan Index

Asia ex Japan 13.4%

Cyclical 16.4% 3.0%

Materials 18.8% 5.4%

Information Technology 17.4% 4.0%

Consumer Discretionary 15.2% 1.8%

Energy 15.1% 1.7%

Industrial 14.7% 1.3%

Defensive 8.5% -4.9%

Utilities 13.5% 0.1%

Consumer Staple 9.6% -3.8%

Telecommunication 4.7% -8.7%

17

Source: MSCI, Credit Suisse, iFAST compilations; Data as at 2 Nov 2015

• The Asian equity market rebounded from the 24 August low with cyclical stocks leading the rise. All

five cyclical sectors outperformed the market.

• Surprisingly, even the market concerns worsened on the Chinese economy, materials is still the

strongest and fastest sector during the recent rebound.

Investment Perspective :

Leading Sectors Suffer from Continuous

Earnings Downgrades

• Although the cyclical sectors outperform the defensive sectors, their component stocks’ earnings forecasts have been continuously downgraded thisyear.

• Both materials and technology sectors’ 2015 estimated earnings have been downgraded.

• Technology stocks’ estimated earnings was upgraded slightly in October, but the material sector’s estimated earnings kept falling, although analysts are slowing on the downgrade.

• Leading sectors’ earning forecasts have yet to see an improvement, inducing worries towards the sustainability of the rebound.

18

Asia Tech stocks’ 2015 estimated earnings Asia material stocks’ 2015 estimated earnings

Source: MSCI, Credit Suisse, iFAST compilations; Data as at 30 Oct 2015

19

Investment Perspective :Asian Material Sectors Show Different Earnings

Momentum

China Material stocks’ 2015 estimated earnings Japan Material stocks’ 2015 estimated earnings

India Material stocks’ 2015 estimated earningsTaiwan material stocks’ 2015 estimated earnings

• Taiwan’s material stocks’ estimated earnings are upgraded recently, while India’s material stocks’

estimated earnings fell at a slower pace. Material stocks of Japan and China both received consistent

downgrade on their earnings forecasts.

• Equity markets need to see support from their earnings before return to the upward trend; such

support isn’t seen in the Asian market just yet.Source: MSCI, Credit Suisse, iFAST compilations; Data as at 30 Oct 2015

Portfolio Changes

• We did not make any change in the month.

• Overweight Asian Investment-grade bond funds and Asian high-yield bond funds

• Asian bonds shall benefit from the loose monetary policies of Asian central banks. China’s onshore bond market’s positive credit status has lowered China property developer’s refinancing risk. China’s property price is beginning to stabilise, and there are signs of improvements from the developers’ contract sales. We are therefore positive on China’s offshore high-yield bond market, especially those Chinese property high-yield bonds. We will increase our positions in Asian investment-grade bond funds and Asian high-yield bond funds in early November.

• Underweight US short-term bond funds and global bond funds• As the Federal Reserve finalises its rate hike timing, we expect the short-term bond yield to

rise. After the monetary policy start to normalise, G7’s low-yield bonds will be lackluster in terms of investment value. In terms of less risky bond funds, we will trim USD short-duration bond funds and global bond fund and will shift to Asia investment-grade bond funds in early November.

20

Investment Prospects:

Equity Strategy

21

Markets Portfolio Allocation

US Underweight

Europe Underweight

Japan Overweight

Asia ex-Japan Overweight

MENA Neutral

Latin America Neutral

China’ s H shares Overweight

Source: iFAST compilations

Investment Prospects:

Fixed Income Strategy

22

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

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


•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.




23


• Aberdeen Global - Japanese Smaller Companies Fund (USD-Hedged) A2 Acc


• 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


• 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.





24


• Mirae Asset Asia Great Consumer Equity Fund (USD) A


• 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.





Fidelity Funds - Emerging Europe, Middle East And Africa Fund A-Acc-USD


• 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.





25


• JPMorgan Latin America Equity A (Dist) – USD


•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.





First State China Growth Fund (USD) I


• 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.







26


• Neuberger Berman China Equity Fund (USD) A Acc


• 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.





27

Risk Disclosure Statement• GAM Star China Equity (USD) A Acc


• Investment involves risks. You should not only base on this marketing material alone to make investment decisions. You shou ld read and understand

the offering documents, in particular the “Investment Objectives and Policies” and the “Risk Factors” sections.

• The fund which primarily invests in a single country is subject to higher concentration risk and may be more volatile than funds following a more

diversified policy. The fund may invest in emerging market equity which is subject to higher risks of liquidity, currency, economic, political and regulatory

changes and thus posing additional risks to the fund. In addition, the fund may use financial derivative instruments such as covered warrants, index

futures/options, currency options/forwards for hedging and efficient portfolio management purposes. These derivative instruments may expose the fund

to leverage, counterparty and volatility risks, which may lead to a higher volatility to the net asset value of the fund and may result in large loss in the

fund’s assets.

• You should not invest in the fund 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.




Neuberger Berman China Equity Fund (USD) A Acc


• 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 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.




28

Risk Disclosure Statement• Matthews Asia Funds - China Dividend Fund (USD) A Dist


• Investment in this Fund involves risk. Please refer to the Hong Kong Offering Document for further details of the risk factors.

• The Fund invests primarily in Mainland China-related companies. Investing in such companies involve certain risks and special considerations such as

greater political, tax, economic and regulatory risks. Additional risks relate to liquidity and the repatriation of capital and income due to currency controls

which may adversely impact the value of the Fund holdings.

• Distribution of dividends, if any, is not guaranteed. There can be no guarantee that companies that the Fund invests in, and which have historically paid

dividends, will continue to pay them or to pay them at the current rates in the future.

• The Fund invests primarily in equity securities, concentrated in China, which may result in increased volatility. It is possible to lose the principal capital

of your investment.

• The Fund may invest in smaller companies which are likely to carry higher risks than larger companies.

• The Fund does not hedge to attempt to offset certain market risks. This may expose the Fund to the risk of full losses resu lting from a decline in a

security’s value.

• The Fund may hold investments denominated in multiple currencies. Movements in the exchange rate between these currencies and the base

currency of the Fund may adversely affect performance.




Jupiter Global Fund - Jupiter China Select (USD) L Acc


• The Fund primarily invests in equities and equity-related securities in China, which may be subject to strong price fluctuations; it is also likely to be

more volatile than funds with a broader range of investments. Investment in China would be subject to certain risk factors and involve considerations not

typically associated with investment in major western jurisdiction, including the legal, judicial and regulatory infrastructure, the economy, the investment

restrictions in securities market as well as brokerage commissions, other transaction charges and custody charge arrangements. The Fund may fall in

value and therefore investment in the Fund may suffer losses.

• The Fund may make use of any one or a combination of the following instruments for hedging or efficient portfolio managemen t purposes only: futures,

options and swaps and other financial derivative instruments (“FDI”). In adverse circumstances, the Fund’s use of FDI may become ineffective in

hedging/efficient portfolio management and the Fund may suffer significant losses in relation to those investments.

• The Fund may invest in assets which are not in its base currency and therefore the investment returns may be affected by the fluctuation in currency

rates and subject to foreign exchange risks.

• Investors should not base their investment decision on this document alone and must refer to the Hong Kong offering documents of the Fund for

further details (including risk factors) prior to investing.




29


• Parvest Equity China (USD)


• 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 emerging markets and a single country and is likely to be subject to a higher than average volatility.

Emerging markets may have higher legal, regulatory and political risk.

• Please refer to the Prospectus and Hong Kong Covering Document for further information (including the risk factors) about the fund.





Nikko AM China Multi Access Opportunities Fund (USD)


• Investors should note that investment involves risks. You may lose part or all of your investment. This fund may not be suitable for all

investors.

• The price of units or shares and the income from the Fund may go down as well as up and past performance may not be indicative of

future performance.

• This fund will invest in securities that may significantly be subject to the economic, political and social development and risks in the PRC.

• The Explanatory Memorandum of the Fund should be read in detail including the risk factors of emerging markets pertaining to the Fund

before making any investment decision. Please also refer to the Explanatory Memorandum of the Fund for other Risk Factors.





30


• Fidelity Funds - China Focus Fund A-USD














Macquarie IPO China Concentrated Core Fund (USD) A2


• The Macquarie IPO China Concentrated Core Fund (“Fund”)invests in emerging market securities which are exposed to higher risk of

economic, political and regulatory changes. These changes may pose additional risk to the Fund and securities linked to these markets

are subject to higher volatility and liquidity risks.

• The Fund may invest in IPO Securities - price performance of these securities may be difficult to assess due to lack of trading history.

• Investment involves risk which may result in loss of part or entire amount of your investment.

• Investors should refer to the explanatory memorandum for more information about risks.





31


• First State China Focus Fund (USD) I


• The Fund is a concentrated portfolio that invests in securities issued by large and mid capitalization companies established or having

significant operations in 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.







Allianz China Equity (USD) A


• The Fund, compared with other equity funds, contains higher risks and opportunities associated with investing in equities in emerging

markets and share price fluctuation.

•The Fund may invest extensively in financial derivative instruments and/or structured products and be subject to various risks (including

counterparty, liquidity, credit and market risks etc.).

• 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.





32

Risk Disclosure Statement• Deutsche Invest I Chinese Equities (USD) LC


• The fund is exposed to risks inherent from investments into companies which are registered in China, or conduct their princ ipal business activities in

China (including Hong Kong). It is also exposed to risks arising from Renminbi exchange fluctuation, political and regulatory risks.

• The Fund may invest in financial derivative instruments (“FDI”), including options, financial futures contracts and swaps (e.g. credit default swaps,

swaps in interest rate, currency and equity). Given the leverage effect embedded in FDI, investments in FDI may result in a total loss in the Fund’s

assets (i.e. as much as 100% of the NAV of the Fund may be lost).

• Investment in FDI may subject the Fund to counterparty, volatility and liquidity risks.

• The Fund invests in emerging markets and may be subject to higher liquidity and volatility risks. The Fund also invests in a particular market or sector

and may be subject to a higher concentration risk than funds following a more diversified policy.




Harvest Funds (Cayman) - China Equity Fund (HKD) A


• The Product: China Equity Fund (the “Sub-Fund”) invests primarily in equity and equity-related securities of companies which are incorporated in, have

their area of primary activity in or which are related to the growth of the People’s Republic of China.

• 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 and therefore your investment in the Sub-Fund may suffer losses.

• China Market Risk: Investing in or investing in companies relating to the PRC (in particular mainland China) involves greater risk of loss than investing

in more developed markets due to, among other factors, greater political, social, economic, tax, foreign exchange, liquidity, settlement and regulatory

risks.

• Single Country Risk :Insofar as the Sub-Fund invests substantially in securities related to the growth of the People’s Republic of China, it will be

subject to risks inherent in the China market and additional concentration risks.

• Emerging and Less Developed Markets Securities Risk: Prices of securities traded in the securities markets of emerging or developing countries tend

to be more volatile and such securities may have less liquidity. As such, any holdings in emerging markets are exposed to higher levels of market risk

than holdings in more developed countries.

• Currency Conversion Risk: The investments of the Sub-Fund may be denominated in currencies other than the relevant Class Currency and the Sub-

Fund may be subject to currency exchange risk involved as a result of fluctuations in exchange rates between the relevant Class Currency and such

other currency.

• For Reference Only: You should not solely rely on this material to make any investment decision. Before investing, you shou ld read the offering

documents for further details, including the risk factors, and are advised to consult your financial adviser.




33


• Aberdeen Global - Chinese Equity Fund (USD) A2


• Investment in this fund may involve a high degree of risk and may not be suitable for all investors. Past performance is not indicative of

future results. The value of the fund can be volatile and could go down substantially within a short period of time. It is possible that the

entire value of your investment could be lost.

• Please read the offering documents for further details and the risk factors, particularly the risk of investment in equities.





Principal LSF - China Equity Fund (HKD)


• Principal China Equity Fund will invest primarily in equities issued by companies with exposure in different sectors of economies in

People’s Republic of China (Mainland China).

• The Fund invests in a single country. Compared with a well-diversified fund, its concentration risk is relatively high and hence it might be

more volatile than a well-diversified fund.

• Investment involves risk. There is no assurance on investment returns and your investments may suffer significant loss.

• You should not invest solely in reliance on this marketing material alone. You should read the Explanatory Memorandum of Principal Life

Style Fund for further details (including investment policy, risk factors, fees and charges, and fund information).





34


• Aberdeen Global - Japanese Equity Fund (JPY) A2


• Investment in this fund may involve a high degree of risk and may not be suitable for all investors. Past performance is not indicative of

future results. The value of the fund can be volatile and could go down substantially within a short period of time. It is possible that the

entire value of your investment could be lost.

• Please read the offering documents for further details and the risk factors, particularly the risk of investment in equities.





Henderson Horizon Fund Japan Opportunities Fund (USD) A2


• The Fund primarily invests its assets in equity securities and equity instruments of large and small companies across a variety of sectors

in Japan but largely weighted towards companies of large market capitalization.

• The Fund may invest in OTC markets which are operated and regulated differently from other regulated markets and accordingly carry

higher risks.

• Investments in the Fund are exposed to varying degree of risks to economic, political, regulatory and social development changes in

Japan.

• Fund’s investment focus on a single country may carry higher concentration risk and market volatility, including liquidity risks for

investments in smaller companies, than funds following a more diversified policy.

• Investments in the Fund involve investment risks (eg. market, legal, financial, interest rate, etc). In extreme market conditions, you may

lose your entire investment in the Fund.





35


• Aberdeen Global - Japanese Equity Fund (USD-Hedged) A2 Acc


• The Fund invests in equities and equity-related securities of companies registered in or conducting the bulk of their business activities in

Japan.





consistency with their investment objective. If in doubt, please seek independent financial and professional advice.







Principal GIF - Japanese Equity Fund - A Class Acc Unit (USD)


• The Principal Japanese Equity Fund will invest primarily in the equity securities of companies domiciled or with their core business in

Japan, which the Adviser believes are mispriced by the market and have the potential for significant growth.

• The Fund invests in a single country. Compared with a well-diversified fund, its concentration risk is relatively high and hence it might be

more volatile than a well-diversified fund.

• Investment involves risk. There is no assurance on investment returns and your investments may suffer significant loss.

• You should not invest solely in reliance on this marketing material alone. You should read the Prospectus and the relevant Supplement(s)

before investing including the Special Investment Considerations and Risks section of the Prospectus.





36


• Aberdeen Global - Japanese Smaller Companies Fund (JPY) A2


• 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.





consistency with their investment objective. If in doubt,please seek independent financial and professional advice.







Old Mutual Japanese Equity Fund (JPY) A


• Investment involves risk and may not be suitable for all investors.

• It cannot be guaranteed that the performance of the Fund will generate a return and there may be circumstances where no return is

generated or the amount invested is lost.

• Past performance is not indicative of future performance.





37

Risk Disclosure Statement• Invesco Japanese Equity Core Fund (USD Hedged) A Acc


• The Fund is an investment fund investing in single country equities.

• Investors should note the equities risk 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.

• Investors should not only base on this marketing material alone to make investment decisions.





Fidelity Funds - Japan Smaller Companies Fund A-Acc-JPY














38


• JPMorgan Japan Equity J (Dist) – USD


•The Fund invests in a single market and therefore is subject to greater concentration and liquidity risk than a more diversified investment.

•The Fund has exposure to the relevant currency risk. The Fund’s price movement may go down or up sharply over a short time span.

•Investors may be subject to substantial losses.





JPMorgan Japan (Yen) Fund


• The Fund invests in a single market and therefore is subject to greater concentration and liquidity risk than a more diversified investment.

• The Fund has exposure to the relevant currency risk. The Fund’s price movement may go down or up sharply over a short time span.


• Please refer to the offering document(s) for details.





39


• Fidelity Funds - Japan Fund A-Acc-JPY














PineBridge Japan Small & Mid Cap Equity Fund (USD) A


• Investment in the Fund may decline in value. Investors should be prepared to sustain a total loss of their investment in the Fund.

• Investors should not rely solely on this material to make investment decisions.





40


• BlackRock Global Funds - US Dollar Short Duration Bond Fund (USD) A3 Mdis


• 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.





PIMCO Global Bond (USD) E Acc


• 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.







41


• Templeton Global Total Return Fund (USD) A (Acc)


• 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.





Invesco Emerging Markets Bond Fund (USD) A Dist


• 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.





42


• First State Asian Quality Bond Fund (USD) I


• 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.




BlackRock Global Funds - Asian Tiger Bond Fund (USD) A3 Mdis


• 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.




43

Risk Disclosure Statement• BEA Union Investment Asian Bond And Currency Fund (USD) A Acc


• 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.





BlackRock Global Funds - Global High Yield Bond Fund (USD) A2



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 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







44


• Allianz US High Yield (USD) A MDisRISK 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 whichrepresents 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.

Fidelity Funds - Asian High Yield Fund A-Acc-USDRISK 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.

45

Risk Disclosure Statement• Eastspring Investments - Asian High Yield Bond Fund (USD) Adm


• The Fund invests in bonds, which are subject to interest rate fluctuations, liquidity and credit risks, such as downgrade risk and the risk

of issuer default. The Fund may invest in non-investment grade/high yield/non-rated corporate and sovereign bonds, which are more

susceptible to credit risk.

• The Fund may have greater exposure to bonds issued or guaranteed by non-investment grade countries, and hence subject to higher

credit / default and concentration risks. If any sovereign issuer defaults, the Fund may suffer significant losses. The Fund may invest

substantially in bonds that are denominated in currencies different from the base currency of the Fund and/or currency of the share class

and is therefore exposed to foreign exchange rate fluctuations.

• The Fund may invest substantially in bonds issued by emerging markets and hence subject to greater political, tax, economic, foreign

exchange, liquidity, volatility, concentration and regulatory risks. Such risks may increase if there is concentrated exposure in issuers of

lower credit rating.

• The Fund may offer currency hedged share classes which involve currency hedging transactions that may, in extreme cases, adversely

affect the Fund's NAV.

• The Fund may, at its discretion, pay dividends out of capital or gross income while charging all or part of its fees and expenses to its

capital, resulting in higher distributable income. Thus, the Fund may effectively pay dividends out of capital. Payment of dividends out of

capital (effective or not) amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable

to that original investment, which may result in an immediate reduction of the net asset value per share/unit. The distributions, including

amounts and frequency, are not guaranteed and are subject to the discretion of the Fund. Past dividends declared are not a forecast or

projection of future distributions.

• The Fund may, for efficient portfolio management and/or hedging purposes, have significant exposure to financial derivatives

instruments, which involve risks may be different and greater than, the risks presented by traditional investments. These risks include

market, management, credit, liquidity, operational and leverage risks. The Fund will also be exposed to credit risk of the counterparties

with which it trades. The use of such instruments may be ineffective in adverse market situations and may incur losses.

• Under extreme market conditions and circumstances, investors may lose the entire principal amount originally invested. Investors should

not make any investment decision solely based on this document and should read the Funds' offering document for details.





46

Risk Disclosure Statement• Eastspring Investments - US Investment Grade Bond (USD) A


• The Fund invests in bonds, which are subject to interest rate fluctuations, liquidity, and credit risks, such as downgrade risk and the risk of issuer

default.

• The Fund invests in a single country, and is subject to greater volatility risks compared to a broad based investment.

• The Fund may offer currency hedged share classes which involve currency hedging transactions that may, in extreme cases, adversely affect the

Fund's net asset value.

• The Fund invests in Asset Backed Securities and Mortgage Backed Securities, both of which have limited recourse to the issuers. These instruments

are also generally illiquid and subject to market, credit and interest rate risks.

• The Fund will also be exposed to credit risk of the counterparties with which it trades.

• The Fund may, at its discretion, pay dividends out of capital or gross income while charging all or part of its fees and expenses to its capital, resulting

in higher distributable income. Thus, the Fund may effectively pay dividends out of capital. Payment of dividends out of capital (effective or not) amounts

to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment, which may result in

an immediate reduction of the net asset value per share/unit.

• The Fund may, for efficient portfolio management and/or hedging, have significant exposure to financial derivatives instruments, which involve risks

may be different and greater than, the risks presented by traditional investments. These risks include market, management, credit, liquidity, operational

and leverage risks. The Fund will also be exposed to credit risk of the counterparties with which it trades. The use of such instruments can be ineffective

in adverse market situations and may incur losses.

• Under extreme market conditions and circumstances, investors may lose the entire principal amount originally invested. Investors should not make any

investment decision solely based on this document and should read the Funds' offering document for details.




AllianceBernstein - American Income Portfolio (USD) AT


• Investment in the portfolio may also involve fixed-income securities risks, illiquid assets risk, management risk, credit risks and the risk associated with

payment of dividends out of capital. 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.




47


• Eastspring Investments - US High Investment Grade Bond (USD) A


• The Fund invests in bonds, which are subject to interest rate fluctuations, liquidity, and credit risks, such as downgrade risk and the risk of issuer

default.

• The Fund invests in a single country, and is subject to greater volatility risks compared to a broad based investment.

• The Fund may offer currency hedged share classes which involve currency hedging transactions that may, in extreme cases, adversely affect the

Fund's net asset value.

• The Fund invests in Asset Backed Securities and Mortgage Backed Securities, both of which have limited recourse to the issuers. These instruments

are also generally illiquid and subject to market, credit and interest rate risks.

• The Fund will also be exposed to credit risk of the counterparties with which it trades.

• The Fund may, at its discretion, pay dividends out of capital or gross income while charging all or part of its fees and expenses to its capital, resulting

in higher distributable income. Thus, the Fund may effectively pay dividends out of capital. Payment of dividends out of capital (effective or not) amounts

to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that origina l investment, which may result in

an immediate reduction of the net asset value per share/unit.

• The Fund may, for efficient portfolio management and/or hedging purposes, have significant exposure to financial derivatives instruments, which

involve risks may be different and greater than, the risks presented by traditional investments. These risks include market, management, credit, liquidity,

operational and leverage risks. The Fund will also be exposed to credit risk of the counterparties with which it trades. The use of such instruments may

be ineffective in adverse

market situations and may incur losses.

• Under extreme market conditions and circumstances, investors may lose the entire principal amount originally invested. Investors should not make any

investment decision solely based on this document and should read the Funds' offering document for details.




PIMCO Total Return Bond (USD) E Acc


• 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.






48


• Legg Mason Western Asset U.S. Adjustable Rate Fund (USD) A Acc


• INVESTMENT INVOLVES RISKS. Past performance is not indicative of future results.

• The Fund may invest up to 100% of its NAV in mortgage related securities, including mortgage-backed securities (MBS), stripped

securities and asset-backed securities (ABS), which can involve material additional risks, e.g. counterparty default risk, and may expose

the Fund to significant losses.

• The Fund may invest in a single country which may give rise to increased risk over more diversified funds.

• Investors should read and understand the Fund’s most current offering document, including details of risk factors relevant to the Fund

and, in particular, the risk of investments in the securities of emerging markets issuers, MBS, stripped securities, ABS and derivatives,

before making an investment in the Fund.





Franklin U.S. Government Fund (USD) A (Mdis)


• The Fund invests in debt securities and money market instruments, and is subject to interest rate risk caused by movements in interest

rates.

• The Fund invests in fixed income securities and money market instruments where an issuer may fail to make principal and interest

payments.

• This investment involves risks which may result in loss of part or entire amount of your investment.





49


• BlackRock Global Funds - US Dollar Short Duration Bond Fund (USD) A3 Mdis



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 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







Old Mutual Total Return USD Bond Fund (USD) A


• Investment involves risk and may not be suitable for all investors.

• It cannot be guaranteed that the performance of the Fund will generate a return and there may be

circumstances where no return is generated or the amount invested is lost.

• Past performance is not indicative of future performance.





50


• Legg Mason Western Asset U.S. Short-Term Government Fund (USD) A Acc


• INVESTMENT INVOLVES RISKS. Past performance is not indicative of future results.

• The Fund may invest up to 100% of its NAV in mortgage related securities, including mortgage-backed securities (MBS), stripped

securities and asset-backed securities (ABS), which can involve material additional risks, e.g. counterparty default risk, and may expose

the Fund to significant losses.

• The Fund may invest in a single country which may give rise to increased risk over more diversified funds.

• Investors should read and understand the Fund’s most current offering document, including details of risk factors relevant to the Fund

and, in particular, the risk of investments in the securities of emerging markets issuers, MBS, stripped securities, ABS and derivatives,

before making an investment in the Fund.





Fidelity Funds - US Dollar Bond Fund A-Acc-USD














51

Risk Disclosure Statement• Manulife Global Fund - U.S. Bond Fund (USD) AA


• Manulife Global Fund (the“ Fund”) is an umbrella fund comprising a number of sub-funds investing primarily in equity and bond

securities, each of which has a different investment objective and risk profile.

• Certain sub-funds with significant exposure to non-investment grade bonds, structured products, a single emerging market, a single

sector / geographic region, or smaller companies may involve credit / counterparty, concentration, currency, liquidity, volatility, down-

grading, regulatory and political risks.

• Certain sub-funds trading in futures, forwards, options, swaps and other financial derivative instruments (“FDI”) may involve credit /

counterparty, correlation, liquidity and settlement risks.

• Certain sub-funds may be subject to a performance fee that may be paid on unrealized gains which may subsequently never be realized;

Investors may still incur such a fee despite investment capital loss.

• Investors may suffer substantial loss of their investments in certain sub-funds that are subject to higher risks, extreme volatility, less

liquid market conditions, or default by counterparty.

• Investment involves risks. Investors should not invest in the Fund solely based on this material and should read the offering document(s)

of the Fund for details, including the risk factors, charges and features of the Fund.





JPMorgan Japan (Yen) Fund


• The Fund invests in a single market and therefore is subject to greater concentration and liquidity risk than a more diversified investment.

• The Fund has exposure to the relevant currency risk. The Fund’s price movement may go down or up sharply over a short time span.







52

Risk Disclosure Statement• Henderson Horizon Fund - Japanese Smaller Companies Fund (USD Hedged) A2


• The Fund primarily invests in equity securities and equity instruments of smaller companies in Japan that generally fall wi thin the bottom 25% of their

relevant market by way of market capitalization.

• The Fund may invest in OTC markets which are operated and regulated differently from other regulated markets and accordingly carry higher risks.

• Investments in the Fund are exposed to varying degree of risks to economic, political, regulatory and social development changes in Japan.

• Fund’s investment focus on a single country may carry higher concentration risk and market volatility, including liquidity risks for investments in smaller

companies, than funds investing in larger companies and following a more diversified policy.

• Investments in the Fund involve varying degree of investment risks (eg. market, legal, financial, interest rate, currency, etc). In extreme market

conditions, you may lose your entire investment in the Fund.

• Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable

to that original investment. Any distributions involving payment of dividends out of the Fund’s capital or payment of dividends effectively out of the Fund’s

capital (as the case may be) may result in an immediate reduction of the NAV per share of the Fund.

• Investors should not only base on marketing material alone to make investment decisions. Investors are advised to read the Prospectus, Offering

Document and Key Facts Statement of the Fund for more details of the investment risks.




Henderson Horizon Fund - Japanese Smaller Companies Fund (USD) A2


• The Fund primarily invests in equity securities and equity instruments of smaller companies in Japan that generally fall wi thin the bottom 25% of their

relevant market by way of market capitalization.

• The Fund may invest in OTC markets which are operated and regulated differently from other regulated markets and accordingly carry higher risks.

• Investments in the Fund are exposed to varying degree of risks to economic, political, regulatory and social development changes in Japan.

• Fund’s investment focus on a single country may carry higher concentration risk and market volatility, including liquidity risks for investments in smaller

companies, than funds investing in larger companies and following a more diversified policy.

• Investments in the Fund involve varying degree of investment risks (eg. market, legal, financial, interest rate, currency, etc). In extreme market

conditions, you may lose your entire investment in the Fund.

• Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable

to that original investment. Any distributions involving payment of dividends out of the Fund’s capital or payment of dividends effectively out of the Fund’s

capital (as the case may be) may result in an immediate reduction of the NAV per share of the Fund.

• Investors should not only base on marketing material alone to make investment decisions. Investors are advised to read the Prospectus, Offering

Document and Key Facts Statement of the Fund for more details of the investment risks.




53


• JPMorgan Japan Smaller Company (Yen) Fund


• The Fund invests in a single market focusing on small and medium sized companies which may be less liquid and more volatile

investments.

• The Fund’s price movement may be subject to significant volatility and thus may go down or up sharply over a short time span.







PARVEST Bond USD Short Duration (USD)


• Parvest is an investment company under the UCITS regulations and has within it different Sub-Funds investing in equities, bonds and

short term debt securities each with different risk profile.

• Investors should note the interest risk, credit risk and counterparty risk that may involve and the concentrated market risks of a Sub-fund

which invest in one single or a limited number of geographical market(s) or industry sector(s) are generally higher than that of a more

diversified fund.

• Investment involves risk. Further details of the potential risks involved are contained in the Sub-Fund Risk Profile section of the

Explanatory Memorandum. The value of the shares may go down as well as up. It is possible that investors may lose their entire

investments

• Investors should not only base on this document alone to make investment decisions.





54

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.

55

Documents

Monthly Investment Outlook November 2015 · 2015-12-11 · Monthly Investment Outlook November 2015 1. Table of Contents ... • US’s third quarter annualised economic growth slowed