Monthly Investment Outlook January 2016...Monthly Investment Outlook January 2016 1. Table of...

Monthly Investment Outlook

January 2016

1

Table of Contents

• Market Update P.3

• Market Performance Review P.6

• Portfolio’s Performance Review P.9

• Portfolio Holdings’ Performance P.11

• Investment Perspective P.20

• Portfolio Changes and Strategies P.25

2

• Just as the market had expected, the US Federal Reserve increased the interest rate

by 25 basis points to 0.25%–0.5% for the first time in nearly 10 years. The median

expected value of the federal funds rate by all 17 officials is 1.375% by the end of

2016, suggesting four more interest rate hikes next year. After the interest rate hike,

Chile’s and Mexico’s central banks also lifted their corresponding interest rate.

• The European Central Bank announced a 10-basis-point reduction of its deposit rate

to -0.3% while extending the asset purchase programme’s duration to at least March

2017, unlimitedly reinvesting any QE programme’s mature bond proceeds in new

debts and broadening the scope of assets purchased to include local and regional

debts. However, there is no increase on the monthly asset purchase amount.

• The Bank of Japan maintains its pace of asset purchase at 80 trillion yen per annum

but is going to extend the average remaining maturity of its government bond

purchases. The central bank will also initiate a new programme to purchase ETFs at

an annual pace of 300 billion yen, which starts with purchasing ETFs that track the

JPX-Nikkei Index 400 in order to stimulate corporate investment.

Market Update (1)

Source: iFAST compilations;

data as at end-December 2015.

3

Market Update (2)

• The November Chinese economic data displayed mixed results. The Chinese official

manufacturing Purchasing Managers’ Index fell to a three-year low at 49.6, making it

the fourth consecutive month to stay in contraction. Exports missed market consensus

and plunged 6.8% year-on-year. Industrial production and retail sales both rose above

expectation to gain 6.2% and 11.2% respectively on a yearly basis.

• South Korean heavyweight Samsung Electronics led the drop as the corporation's

affiliates violated the country’s regulations regarding cross holdings. South Korean

antitrust regulators requested that Samsung SDI sell part of its Samsung C&T

holdings, contributing to a fall in the Samsun Electronics’ stock price

• In an Organisation of the Petroleum Exporting Countries meeting, Saudi Arabia

declared that it will only cut its domestic oil production by 100 million barrels per day if

all oil-producing countries agree to reduce their respective oil productions. Downward

pressure on oil price increases as the meeting fails to reach an agreement. Together

with surging political risk arising in South Africa as the country saw three different

financial in a week, the EMEA market slumped in the month.

4



Market Update (3)

• Emerging-market bonds were subject to significant pressure in December. South

Africa’s rapid replacement of financial ministers severely damaged the region’s bond

and stock markets. Fitch slashed Brazil’s sovereign credit rating to BB+ in mid-

December while Moody’s also put Brazil’s credit rating into its list of observation. The

country’s central bank also implied a possible interest rate hike next year, inducing a

wave of price adjustment in the bond market as a result.

• Global oil price sunk to the lowest level since the 2008 financial crisis. As a high-yield

bond fund under Third Avenue blocked redemptions, US high-yield bonds—especially

those of the oil & natural gas and energy equipment sectors—saw significant price

adjustment.

• Despite the continuous price drop, oil is still some distance away from the historical

low. High-yield bonds of oil-producing countries such as Venezuela, Ecuador and

Russia did not see significant sell-offs.

5



Best-Performing Markets in December

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

Chinese A shares CSI 300 4.6% 1 5.6% 3

Indonesia Jakarta Stock Exchange 3.3% 2 -12.1% 15

Australia S&P/ASX 200 2.5% 3 -2.1% 6

Malaysia KLCI 1.2% 4 -3.9% 7

Singapore FTSE Straits Times 0.9% 5 -14.3% 18

Taiwan Taiwan Stock Exchange 0.2% 6 -10.4% 12

India BSE SENSEX -0.1% 7 -5.0% 10

Hong Kong Hang Seng Index -0.4% 8 -7.2% 11

Asia ex-Japan MSCI AC Asia ex Japan -0.7% 9 -11.3% 14

Chinese H shares Hang Seng Mainland 100 -1.2% 10 -10.6% 13

South Korea Korea Composite Stock Price -1.5% 11 2.4% 4

US S&P 500 -1.8% 12 -0.7% 5

World MSCI AC World -1.9% 13 -4.3% 8

Emerging Markets MSCI Emerging Markets -2.5% 14 -17.0% 19

Japan Nikkei 225 -3.6% 15 9.1% 1

BrazilIbovespa Brasil Sao Paulo Stock

Exchange-3.9% 16 -13.3% 16

Europe Stoxx 600 -5.09% 17 6.8% 2

Thailand Stock Exchange of Thailand -5.3% 18 -14.0% 17

Russia Russian Trading System Cash -10.6% 19 -4.3% 9

6



Best-Performing Markets in December

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

Australia S&P/ASX 200 3.3% 1 -12.7% 12

Chinese A shares CSI 300 3.1% 2 1.0% 2

Indonesia Jakarta Stock Exchange 3.1% 3 -21.4% 16

Singapore FTSE Straits Times 0.4% 4 -20.0% 15

India BSE SENSEX 0.4% 5 -9.4% 9

Malaysia KLCI 0.0% 6 -21.9% 18

Hong Kong Hang Seng Index -0.4% 7 -7.2% 8

Taiwan Taiwan Stock Exchange -0.6% 8 -14.0% 13

Asia ex-Japan MSCI AC Asia ex Japan -0.7% 9 -11.4% 11

Chinese H shares Hang Seng Mainland100 -1.2% 10 -10.6% 10

Japan Nikkei 225 -1.6% 11 7.9% 1

US S&P 500 -1.8% 12 -0.8% 3

World MSCI AC World -2.0% 13 -4.3% 5

Europe Stoxx 600 -2.4% 14 -4.1% 4

Emerging Markets MSCI Emerging Markets -2.5% 15 -17.0% 14

South Korea Korea Composite Stock Price -3.2% 16 -4.8% 7

Brazil Ibovespa Brasil Sao Paulo Stock Exchange -5.4% 17 -42.0% 19

Thailand Stock Exchange of Thailand -5.9% 18 -21.7% 17

Russia Russian Trading System Cash -10.7% 19 -4.3% 6

7



Best-Performing Bond Classes in December

(in index currency)

8

Bond Class 1 Month Year-to-date

Developed countries’ sovereign bond 1.13% -1.60%

Asian bond -0.31% 2.82%

Emerging-market hard-currency bond -1.50% 1.23%

Emerging-market local-currency bond -2.21% -14.27%

Global high-yield bond -2.76% -3.49%



Portfolio Performance Since Inception

(as at end-Dec 15)

PortfolioPortfolio

Performance

Index

Performance

Aggressive 1.87% -0.91%

Moderately

Aggressive1.43% -0.78%

Balanced 0.10% -0.65%

Moderately

Conservative-0.79% -0.52%

Conservative -1.35% -0.39%

9

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

Source: Bloomberg and iFAST compilations;

0.5% sales charge has been deducted from returns.

.

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

Portfolio Performance in December

PortfolioPortfolio

Performance

Index

Performance

Aggressive -1.49% -1.90%

Moderately

Aggressive-1.53% -1.37%

Balanced -1.70% -0.83%

Moderately

Conservative-1.59% -0.29%

Conservative -1.55% 0.25%

10

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


0.5% sales charge has been deducted from returns.

.


Portfolio Holdings’ Performance—

Equity Funds

NameReturn Since Inception

(%)Return in December (%)

ETF

Vanguard S&P 500 Index ETF 4.29 -1.22

Fund

Legg Mason ClearBridge

US Aggressive Growth Fund (USD) A Acc-0.76 -2.99

Threadneedle IF ICVC –

European Select Fund (USD-Hedged) RNA7.45 -3.49

Aberdeen Global –

Japanese Smaller Companies Fund (USD-Hedged) A2 Acc-0.48 -2.70

First State Asian Equity Plus Fund (USD) I Dis 3.01 0.75

Mirae Asset Asia Great Consumer Equity Fund (USD) A 2.18 1.03

Fidelity Funds –

Emerging Europe, Middle East And Africa Fund A-Acc-USD-9.66 -8.63

JPMorgan Latin America Equity A (Dist) – USD -5.87 -6.48

First State China Growth Fund (USD) I 6.28 1.86

Neuberger Berman China Equity Fund (USD) A Acc 14.01 0.51

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

Source: Bloomberg and iFAST compilations.

Data as at 31 December 2015.

11


Fidelity Funds – Emerging Europe, Middle

East And Africa Fund A-Acc-USD

• The regional market’s sell-off in the month was mainly due to worsening investment

sentiment instead of fundamentals.

• South Africa’s president Zuma replaced its minister of finance for the third time in five

days, triggering a sell-off in the local stock market.

• OPEC’s refusal to cut production pushed oil price down further; the Russian and

Middle East markets suffered as a result.

• As South Africa’s and Russia’s stocks underwent price adjustment, Fidelity Funds –

Emerging Europe, Middle East And Africa Fund in our portfolio holdings lost.

• Fund manager Nick Price has been in charge of investment in emerging markets since

2005.

• He said he has already faced countless irrational, indiscriminate sell-off triggered by

short-term market volatility in the past 10 years.

12

Cumulative Return (%) Calendar-Year Return (%)

Fund Name 1-month YTD 2014 2013 2012 2011 2010

Fidelity Funds –

Emerging Europe,Middle East And Africa Fund A-Acc-USD-8.63 -15.67 -8.62 7.75 22.89 -21.36 29.99

JPM Emerging Europe, Middle East And Africa Equity A

(Dist) - USD-7.45 -16.37 -17.10 0.61 23.39 -24.78 27.21


Source: Bloomberg and iFAST compilations.

data as at 31 December 2015.

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

http://www.fundsupermart.com.hk/hk/main/fundinfo/viewFund.svdo?lang=en&sedolnumber=HKJPEMEA


13

Fidelity Funds – Emerging Europe,Middle


• The fund’s main holdings include South African stocks, which make up 55% of the fund’s

asset (relative to the benchmark’s 45%).

• The fund manger is pessimistic about South Africa‘s economic prospect, therefore most

of its South African holdings are mainly those global and multi-national corporations like

Naspers (pan-emerging market internet and media), Steingoff (European furniture

retailer) and Discover (international life insurance technology). These companies’

domestic business contributed only a limited portion of their overall revenues.

• The fund is currently underweight in South Africa’s banking sector. A vicious sell-off in

the banks has had a material impact on valuations and this may well prove to be an

excellent entry point.

Source: Fidelity Investment Management (Hong Kong) Limited;


• Naspers is the fund’s long-term

holding.

• Its business model looks much

like a private equity fund; its

underlying business covers

Africa, Asia, Latin America,

Eastern Europe and Middle East.

• Naspers’s PE and PB have both

risen more than 500% on a

cumulative basis since 2008.

• Naspers, the largest company in

the MSCI South Africa Index

and MSCI EM EMEA Index, has

pushed up the market’s overall

valuation with its high valuation.

• Because of a strong forecast

earnings growth, Naspers’s

estimated PE will drop

significantly.

14

Source: Fidelity Investment Management (Hong Kong) Limited and Datastream;


Fidelity Funds – Emerging Europe,Middle


Portfolio Holdings’ Performance—

Fixed Income Funds

NameReturn Since

Inception (%)

Return in December

(%)

Fund

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

A3 Mdis-0.37 -0.34

PIMCO Global Bond (USD) E Acc 0.17 -0.62

Templeton Global Total Return Fund (USD) A (Acc) 0.12 -3.05

Invesco Emerging Markets Bond Fund (USD) A Dist 0.81 -2.14

Neuberger Berman Emerging Market Debt - Local Currency Fund (USD)

A Mdis-3.41 -2.37

First State Asian Quality Bond Fund (USD) I 0.81 -0.45

BlackRock Global Funds - Asian Tiger Bond Fund (USD) A3 Mdis 0.75 -1.05

BEA Union Investment Asian Bond And Currency Fund (USD) A Acc 2.29 -0.42

Fidelity Funds - Asian High Yield Fund A-Acc-USD 0.43 -1.36

BlackRock Global Funds - Global High Yield Bond Fund (USD) A2 -5.06 -3.25

Allianz US High Yield (USD) A MDis -6.73 -2.97




15


Source: Bloomberg and iFAST Compilations; data as end-December

US High-Yield Bonds’ Performance:

Triple C-Rated Bonds Dropped More

16

80

85

90

95

100

105

BofA Merrill Lynch US High Yield CCC or Below Total Return Index

BofA Merrill Lynch US High Yield B Total Return Index

BofA Merrill Lynch US High Yield BB Total Return Index

Spreads on HY Bonds from Energy,

Industrial and Materials Sectors’ have

Widened Significantly

17

Sources: Bloomberg and iFAST compilations;


200

400

600

800

1000

1200

1400

Bps

All Tech Health Care Energy Industrial Financials Sub

Financials Snr Cons Disc Cons Staple Materials Communication

Spreads on US High-Yield Bond have further

Widened

Sources: Merrill Lynch and iFAST compilations;


18

0

5

10

15

20

25

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

(%)Yield Spreads on US High-Yield Bond

BofA Merrill Lynch US High Yield Master II Option-Adjusted Spread©

BofA Merrill Lynch US High Yield BB Option-Adjusted Spread©

705bps vs

579bps LT

average

453bps vs

384bps LT

average

US High-Yield Bond’s YTM is One of the

Highest in Major High-Yield Bond Categories

19

Sources: Merrill Lynch and iFAST compilations;


0

4

8

12

16

20

(%)

BofA Merrill Lynch US High Yield BB Effective Yield

BofA Merrill Lynch US High Yield CCC or Below Effective Yield

BofA Merrill Lynch US High Yield Master II Effective Yield

Investment Perspective :

Underweighting EMEA

• EMEA stock markets, represented by the MSCI EM Emerging Europe,

Middle East and Africa (EMEA) Index, has an expensive valuation.

• Although the market index dropped recently, its valuation has risen as the

earnings fell faster than the corresponding stock price.

• South African stocks, which take up 45% of the MSCI EM EMEA Index’s

weighting, are expensive.

• Naspers, the largest company in the MSCI South Africa Index and the MSCI

EM EMEA Index, has an estimated valuation of more than 50X.

• Most EMEA funds are still overweight in South African stocks, especially

Naspers. Therefore, technically we cannot get rid of Naspers’s effect on the

market valuation and earnings growth.

• No matter how much we appreciate the fund managers, in the situation of

worsening macro-economics, we turn defensive against the EMEA stock

market’s prospects and have decided to shift the corresponding allocation

from neutral to underweight.

20

EMEA Markets’ PE is above Historical Mean; PE ex

Russia and energy stocks would Hit Even Higher

21

0

50

100

150

200

250

300

350

400

450

500

6

7

8

9

10

11

12

13

14

Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15

(X)

Forward PE - MSCI EMEA Index

+1 SD

-1 SD

Mean

Market PE

Index

Sources: Bloomberg; data as at 31 December 2015.

Earnings on a Downtrend; Estimated Earnings have

Recently been Adjusted Downward Significantly

22

10

15

20

25

30

35

40

45

50

0

50

100

150

200

250

300

350

400

450

500

Earnings Trend – MSCI EMEA Index

MSCI EMEA

（LHS）

Earnings

（RHS）


South African Market’s Valuation Rose to

Historical High

23

0

10000

20000

30000

40000

50000

60000

6

8

10

12

14

16

18

20

Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15

(X)Forward PE - South African Stock market

+1 SD

-1 SD

Mean

Market PE

Index

Sources: Bloomberg.; data as at 31 December 2015.

Earnings Trend is still Positive but the Stock Market

is Rising Faster than its Earnings Growth

24

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

0

10000

20000

30000

40000

50000

60000Earnings Trend – MSCI EMEA Index

South African

Stock Market

Index (LHS)

Earnings

（RHS）


• We saw no changes in December but the following changes will be made starting

January 2016:

• Neutral asset class allocationIn terms of asset allocation, we are neutral on “Equities vs. Fixed-Income” and

removing our overweight in equities relative to bonds for the first time in eight years.

We will change our asset allocation to neutral in early January 2016, which

means we will reduce our equity holdings and increase our fixed income

holdings.

• Underweight in EMEA stocksThe South African market, which make more than 45% of the EMEA index, is still

expensive. Naspers, the largest company within the MSCI South Africa Index and

MSCI EM EMEA Index, still sees an estimated valuation of more than 50X. Although

the market’s earnings prospects remain positive , the current valuation has already

fully factored in such positive factor. The low oil and commodity prices also contribute

to the region’s economic uncertainty, and we therefore will start underweighting

EMEA equity funds in early January 2016.

25

Portfolio Changes

Investment Prospects:

Equity Strategy

26

Markets Portfolio Allocation

US Underweight

Europe Underweight

Japan Overweight

Asia ex-Japan Overweight

EMEA Neutral-> Underweight

Latin America Neutral

China’s H shares Overweight

Source: iFAST compilations.

26

Investment Prospects:

Fixed Income Strategy

27

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.

27

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.

• 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.28


• 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.





29


• 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.





30


• 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.

• 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.





31


• 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.





32


• 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.

• 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.





33


• 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.





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Risk Disclosure Statement• 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.

• 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.

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.

• 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.

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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


• 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 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 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 only base on this marketing material alone to make investment decision.





36


• 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.

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

• RISK 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.





• JPM Emerging Europe, Middle East And Africa Equity A (Dist) – USD

• RISK DISCLOSURE STATEMENTS

•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.





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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.

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