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Investment in the Portfolio entails certain risks. Investment returns and principal value of the Portfolio will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Some of the principal risks of investing in the Portfolio include:
Strategy
Seeks long-term capital appreciation by:
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Investing primarily in Chinese A-share stocks that possess both attractive valuation and compelling return potential
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Constructing a portfolio of high-conviction investments from across multiple industries or sectors
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Employing a disciplined, bottom-up approach that combines fundamental research with proprietary quantitative tools to identify attractive investment opportunities while managing risk
Portfolio Management Team
Investment Risks to Consider
These and other risks are described in the Portfolio's prospectus
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China equities risk: the China Connect Scheme. A Portfolio of the Fund may invest directly or indirectly in eligible China A shares (“China Connect Securities”) through the China Connect Scheme, including investment in financial instruments and other market access products linked to China Connect Securities. Please read the Prospectus for full details of this.
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China market risk: The Fund may invest in domestic securities of issuers located in China and so may be directly affected by volatility in securities markets in China and changes in the economic and political climate in China generally. The legal and regulatory framework for capital markets in China may not be as well developed as those of developed countries and entails additional risks.
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Currency transactions risk: Transactions in currencies may include options, forwards, futures and swaps and are subject to a number of risks, in particular, the risk posed by fluctuations in the market price of currency contracts.
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Derivatives risk: The Portfolio may include financial derivative instruments. These may be used to obtain, increase or reduce exposure to underlying assets and may create gearing; their use may result in greater fluctuations of the net asset value.
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Emerging-markets risk: Where the Portfolio invests in emerging markets, these assets are generally smaller and more sensitive to economic and political factors, and may be less easily traded, which could cause a loss to the Portfolio.
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Equity securities risk: The value of equity investments may fluctuate in response to the activities and results of individual companies or because of market and economic conditions. These investments may decline over short- or long-term periods.
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Portfolio turnover risk: A portfolio may be actively managed and turnover may, in response to market conditions, exceed 100%. A higher rate of portfolio turnover increases brokerage and other expenses. High portfolio turnover may also result in the realization of substantial net short-term capital gains, which may be taxable when distributed.