General risks of investing in the Fund

The below mentioned risks which you should consider before investing into  the Fund should not be considered to be an exhaustive list.
You should be aware that investments in the Fund may be exposed to other risks of an exceptional nature from time to time.

  • Market Risk

    Market risk refers to the possibility that an investment will lose value because of a general decline in financial markets, due to economic, political and/or other factors, which will result in a decline in the Fund’s NAV.

  • Foreign Market Risk (includes emerging markets)

    Investments in foreign markets may present risks not typically associated with domestic markets. These risks may include changes in currency exchange rate; less-liquid markets and less available information; less government supervision of exchanges, brokers, and issuers; increased social, economic, and political uncertainty; greater price volatility. These risks may be greater in emerging markets, which may also entail different risks from developed markets.

  • Loan Financing Risk

    The risk occurs when investors take a loan/financing to finance their investment and thereafter unable to service the loan repayments. If units are used as collateral, an investor may be required to top-up the investor’s existing instalment if the prices of units fall below a certain level due to market conditions. Failing which, the units may be sold at a lower net asset value per unit as compared to the net asset value per unit at the point of purchase towards settling the loan.

  • Performance Risk

    As a result of the risk elements, the returns from a fund are not guaranteed. The value of the fund’s investment will vary when sold and an investment may be worth more or less than when purchased.

  • Manager’s Risk

    This risk refers to the day-to-day management of the fund by the manager which will impact the performance of the fund. For example, investment decisions undertaken by the manager, as a result of an incorrect view of the market or any non-compliance with internal policies, investment mandate, the deed, relevant law or guidelines due to factors such as human error or weaknesses in operational process and systems, may adversely affect the performance of the fund.

  • Inflation Risk

    This is the risk that investors’ investment in the fund may not grow or generate income at a rate that keeps pace with inflation. This would reduce investors’ purchasing power even though the value of the investment in monetary terms has increased.

  • Taxation Risk

    Investment may be adversely affected by changes in taxation, monetary and fiscal policies. New Taxes imposed on the holding of investments in a particular jurisdiction, or any capital gains or income derived from such investments, may adversely affect the performance of such investments and consequently the value of Units and the income from a fund.

  • Acounting Risk

    Financial Reporting standards, practices and disclosure requirements may vary between countries and may also be subject to change. This may cause uncertainty when establishing the true value of investments and may result in a loss of capital or income.

Specific Risks Associated With The Sub-Fund

  • Stock Specific Risk

    Prices of a particular stock may fluctuate in response to the circumstances affecting individual companies such as adverse financial performance, news of a possible merger or loss of key personnel of a company. Any adverse price movements of such stocks will adversely affect the Fund’s NAV.

  • Equity-related Securities Risk

    The Fund invests in equity-related securities such as rights and warrants, where price movement is dependent on the price movement of the underlying equities. The risk is generally higher than their underlying equities as these equity related securities are a leveraged form of investment. The price of equity-related securities generally fluctuates more than the underlying equities and consequently may affect the volatility of the Fund’s NAV.

  • Concentration risk

    Concentration risk is the probability of loss arising from lack of diversification, investing with a single issuer. The strength of the issuer may be affected due to changes of financial performance, news of a possible merger or loss of key personnel of the issuer.

  • Country Risk

    Investments of the Fund in any foreign countries may be affected by changes in the economic and political climate, restriction on currency repatriation or other developments in the law or regulations of the countries in which the Fund invests in. For example, the deteriorating economic condition of the countries may adversely affect the value of the investments undertaken by the Fund in those affected countries. This in turn may cause the NAV or prices of Units to fall.

  • Currency Risk

    As the base currency of the Fund is in USD, any fluctuation in the exchange rate between the base currency and the currencies in which the investments are denominated may have an impact on the value of these investments. Investors should be aware that if the currencies in which the investments are denominated depreciate against the base currency, this will have an adverse effect on the NAV of the Fund in the base currency and vice-versa. Investors should note that any gains or losses arising from the fluctuation in the exchange rate may further increase or decrease the returns of the investment.

  • Credit and default risk

    Credit risk relates to the creditworthiness of the issuers of the debt instruments and its expected ability to make timely payment of interest and/or principal. Any adverse situations faced by the issuer may impact the value as well as liquidity of the debt instrument. Default risk relates to the risk than an issuer of a debt instrument either defaulting on payments or failing to make payments in a timely manner which will in turn adversely affect the value of the debt instruments. This could adversely affect the value of the Fund.

  • Single Country, Sector and Regional Risk

    Where a Sub-Fund’s exposure is focused in a single country, sector or region, you should be aware that while such concentrated exposure may present greater opportunities and potential for capital appreciation, it may be subject to higher risks as there may be less diversification than a global portfolio.

  • Interest Rate Risk

    Interest rate risk refers to the impact of interest rate changes on the valuation of debt instruments whenever is applicable. When interest rates rise, debt instruments prices generally decline and this may lower the market value of the Fund’s investment in debt instruments. The reverse may apply when interest rates fall.

  • Counterparty risk

    The Fund’s placements of deposits and/or investments in money market instruments with financial institutions are subject to the risk of the counterparty. Counterparty risk also refers to the possibility that the counterparty being unable to make timely payments of interest and/or principal payment on the maturity date. This may then lead to a default in the payment and/or interest and ultimately, affect the NAV per Unit of the Fund.

  • Charges to Capital Risk

    If a Sub-Fund does not have sufficient income to cover its charges and expenses, the capital of the Sub-Fund may be used to offset those charges and expenses instead leading to a lower rate of capital growth.

  • Fair Value Pricing Risk

    Fair vaue pricing adjustments reflect predicted changes in the last available price between the market close and the Valuation Point and may be made to the price of an underlying assets of a Sub-Fund’s portfolio, at the Investment Committee’s Discretion. The associated risk is that the predicted price is not consistent with the opening price of that security.

  • Dividend Risk

    The Sub-Fund may rely on the dividend income of underlying securities, which may be affected by the profitablilty of the underlying company and its dividend policy. On occasion, companies that had previously paid dividends may change their dividend policy, reduce dividends or not to issue a dividend at all, resulting in less income generation for the Sub-Fund.