IMPORTANT:
• The Fund aims to generate positive absolute returns regardless of market direction, but it does not guarantee positive returns. The Fund's investments in equities could incur significant losses due to higher fluctuation of equity values.
• The Fund is subject to credit/counterparty default, interest rate, liquidity, valuation and credit rating risks associated with fixed income securities. It may invest in below investment grade or unrated bonds, which can be more volatile and involve a higher risk of loss. Credit ratings assigned by local PRC rating agencies may differ from international standards. Investors may suffer a loss of part or all their investment.
• The Fund invests in other Collective Investment Schemes (“underlying CIS”) which may include those not regulated by the Securities and Futures Commission of Hong Kong (“SFC”). The underlying CIS may not achieve their investment objectives and strategies which may have negative impacts to the Fund’s net asset value (“NAV”). The Fund may incur additional costs when investing into underlying CIS. Such underlying CIS may have insufficient liquidity to meet the Fund’s redemption requests. The Fund’s NAV may be adversely impacted by investing in index funds (including exchange traded funds (“ETFs”)), which are not actively managed and are subject to tracking error risk of the relevant underlying index’s returns.
• The Fund’s market neutral strategy involves risks and volatility, relying on the Investment Adviser’s quantitative models, with no guarantee of success in exploiting price discrepancies and may result in higher portfolio turnover and increased transaction costs.
• The Fund uses multiple sub-strategies, which may not perform as expected or provide the intended diversification benefits. Incorrect investment assumptions, or changes in market, regulatory and economic conditions may result in losses or increased volatility.
• The Fund invests up to 35% of its NAV in debt securities issued and/or guaranteed by a single sovereign issuer (e.g. Argentina, Brazil and South Africa) which is below investment grade or unrated. The Fund may result in greater volatility than funds with a broader range of investments.
• The Fund's investments in emerging markets may involve increased risks, including liquidity, currency, political, economic, legal, taxation, settlement, custody, and regulatory risks, as well as high volatility.
• The Fund uses proprietary quantitative models to pursue its investment objective, but there is no guarantee that these models will perform as forecasted and result in effective investment decisions due to factors like data accuracy, historical trends, and technological issues.
• The Fund may use derivatives for hedging and extensively for investment purposes. Risks associated with derivatives include counterparty/credit, liquidity, valuation, volatility and over-the-counter (OTC) transaction risks, and may lead to substantial losses. The Fund's investment in total return swaps involves liquidity, counterparty, and legal risks, with bespoke terms that may affect their sale or liquidation and are traded in less regulated OTC markets lacking protection of organized exchanges. Synthetic short positions may result in unlimited losses, heightened counterparty risk, and increased liquidity risk, particularly in stressed market conditions.
• The Fund is subject to currency risk, foreign investments restrictions risk, small/mid cap companies’ volatility and liquidity risks, liquidity risk, securities lending transactions risks, risks associated with performance fee charged by the Fund, and currency conversion risk for Renminbi denominated Classes.
• The value of the Fund can be volatile and can 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 make investment decisions based on this document alone. Investors should refer to the Prospectus and Key Facts Statement for details including risk factors.