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 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.
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.
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.
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.
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.
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.