最低投資額 : 首次最低投資額..其後最低投資額.. 分派單位類別 ( 收益 ) A 類別美元收益 5,000 美元 500 美元 A 類別歐元收益 3,500 歐元 500 歐元 A 類別英鎊收益 2,500 英鎊 500 英鎊 累積單位類別 ( 累積 ) A 類別澳元對沖累積 6,000 澳元

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1 產品資料概覽 霸菱國際傘子基金霸菱大東協基金 2018 年 4 月 Baring International Fund Managers (Ireland) Limited 本概覽提供有關霸菱大東協基金 ( 本基金 ) 的重要資料 本概覽是發售文件的一部分 閣下切勿單憑本概覽作出投資於本基金的決定 資料便覽 基金經理 Baring International Fund Managers (Ireland) Limited( 基金經理 ) 投資經理 Baring Asset Management Limited ( 內部委派, 英國 ) 副投資經理 霸菱資產管理 ( 亞洲 ) 有限公司 ( 內部委派, 香港 ) 保管人 Northern Trust Fiduciary Services (Ireland) Limited 全年經常性開支比率 : 分派單位類別 ( 收益 ) 累積單位類別 ( 累積 ) A 類別美元收益 : 1.70% # A 類別澳元對沖累積 : 1.71% # A 類別歐元收益 : 1.70% # A 類別美元累積 : 1.70% # A 類別英鎊收益 : 1.70% # A 類別歐元累積 : 1.70%^ I 類別美元累積 : 1.00% # I 類別歐元累積 : 1.00% # I 類別英鎊累積 : 1.00% # # 由於本基金的收費結構由 2018 年 4 月 30 日起已更改, 故經常性開支比率僅為估計數字, 乃根據各個單位類別應支付的估計年度經常性開支計算, 以各個單位類別於同一期間的平均資產淨值的百分比表示 實際比率每年均可能有所變動 ^ 此尚未發行之單位類別之經常性開支比率僅為估計數字, 乃根據擁有類似收費結構的參考單位類別的經常性開支比率計算 在該單位類別開始實際運作後, 實際經常性開支比率可能有別於估計數字, 及每年均可能有所變動 交易頻次基本貨幣股息政策 * 財政年度年結日 每日 美元 就分派單位類別 ( 收益 ) 而言, 如有宣派股息, 將會派發股息 就累積單位類別 ( 累積 ) 而言, 將不會派發股息 * 本基金普遍會從盈餘收入淨額支付股息 然而, 基金經理亦可能會就其認為維持合理分派水平而言合適的情況下, 在扣除變現及未變現資本虧損後, 分派部分資本收益 根據香港監管披露規定, 自未變現資本收益中分派款項相當於從資本中作出分派 在該等情況下作出的分派款項或會令本基金的每單位資產淨值即時減少 4 月 30 日 1

2 最低投資額 : 首次最低投資額..其後最低投資額.. 分派單位類別 ( 收益 ) A 類別美元收益 5,000 美元 500 美元 A 類別歐元收益 3,500 歐元 500 歐元 A 類別英鎊收益 2,500 英鎊 500 英鎊 累積單位類別 ( 累積 ) A 類別澳元對沖累積 6,000 澳元 500 澳元 A 類別美元累積 5,000 美元 500 美元 A 類別歐元累積 3,500 歐元 500 歐元 I 類別美元累積 10,000,000 美元 500 美元 I 類別歐元累積 10,000,000 歐元 500 歐元 I 類別英鎊累積 10,000,000 英鎊 500 英鎊 霸菱大東協基金 這是甚麼產品? 霸菱大東協基金為霸菱國際傘子基金的子基金 霸菱國際傘子基金為設於愛爾蘭的單位信託基金 其成立地監管機構為愛爾蘭中央銀行 目標及投資策略 目標 透過投資於基金經理相信將從經濟增長及地區發展中受惠的亞洲公司, 在資產價值中達致長期資本增長 策略 本基金將在任何時候把其總資產至少 70% 投資於已在東南亞國協會 (ASEAN,Association of South-East Asian Nations) 成員國註冊成立的公司, 或在該等國家進行其主要經濟活動的公司的股票及股票相關證券 ( 例如結構性票據 參與票據或股票掛鈎票據 ), 或在該等國家的證券交易所掛牌或買賣的股票及股票相關證券 ASEAN 的成員國包括 ( 但不限於 ) 新加坡 泰國 菲律賓 馬來西亞 印尼及越南 就此而言, 總資產並不包括現金及輔助流動資金 本基金亦可將其最多 30% 的總資產直接或透過預託證券投資於 (a) 在亞太區其他市場 ( 包括但不限於韓國 香港 中國 台灣 印度 澳洲 紐西蘭 巴基斯坦 斯里蘭卡及孟加拉, 但日本除外 ), 或 (b) 基金經理認為將可能從亞太區 ( 日本除外 ) 的經濟增長及地區發展中受惠的其他市場 ( 如基金經理認為適合 )(i) 註冊成立, 或 (ii) 進行其主要經濟活動, 或 (iii) 在證券交易所上市或買賣的公司的股票及股票相關證券 本基金亦可根據愛爾蘭中央銀行的規定, 將本基金的資產淨值最多 10% 投資於集體投資計劃 就投資於中國而言, 在任何時候均不可將本基金資產淨值多於 10% 直接或間接投資於中國 A 股及 B 股 預期此項投資將可透過經滬港通及深港通投資於在上海證券交易所及深圳證券交易所上市的中國 A 股直接作出, 或透過投資於其他合資格集體投資計劃或參與票據間接作出 在特殊情況下, 例如經濟狀況 政治風險或世界事件 不明朗情況下的較高下行風險或相關市場因突發事件 ( 例如政治動盪 戰爭或大型財務機構破產 ) 而關閉, 本基金可暫時將其高達 100% 的總資產投資於現金 存款 國庫債券 政府債券或短期貨幣市場工具, 或大額持有現金及現金等價物 本基金可運用衍生工具, 包括認股權證 期貨 期權 貨幣遠期合約 ( 包括不可交割遠期合約 ) 掉期協議及差價合約, 以作有效管理投資組合 ( 包括對沖 ) 或投資用途 儘管可運用衍生工具, 但不會廣泛運用該等衍生工具作投資用途 衍生工具技巧可能包括 ( 但不限於 )(i) 以對沖貨幣風險,(ii) 以在投資經理認為衍生工具投資於相關資產較直接投資更具價值時候, 使用衍生工具作為在相關資產持倉的替代,(iii) 以根據投資經理對利率的觀點而調整本基金的利率風險, 及 / 或 (iv) 以對符合本基金投資目標及政策的特定指數的成份及表現取得投資參與 2

3 霸菱大東協基金 有什麼主要風險? 投資涉及風險 請參閱發售文件以了解風險因素等資料 1. 投資風險 本基金投資組合的價值可能因下文任何主要風險因素而下跌, 故閣下在本基金的投資可能蒙受損失 本基金為一項投資基金, 不屬銀行存款性質, 故不保證返還本金 2. 投資於股票及股票相關證券的風險 本基金於股本證券的投資須承受一般市場風險, 其價值可能因多項因素 ( 例如投資情緒 政治及經濟情況變化以及發行人特定因素 ) 而波動 本基金可投資於股票相關證券 ( 例如結構性票據 參與票據或股票掛鈎票據 ) 該等投資工具一般由經紀 投資銀行或公司發行, 並因而須承受發行人的無力償債或違責風險 如該等投資工具並無活躍市場, 可能會導致流動性風險 此外, 與其他直接投資於類似相關資產的基金相比, 投資於股票掛鈎證券可能會因股票相關證券附帶的費用而攤薄本基金的業績表現 上述情況可能會對本基金的每單位資產淨值構成不利影響 證券交易所一般有權暫停或限制任何在該交易所買賣的工具之買賣 政府或監管機構亦可實施可能影響金融市場的政策 暫停買賣可令投資經理或相關基金經理無法進行平倉, 因而使本基金造成損失, 並可能對本基金造成負面影響 3. 新興市場投資風險 本基金可能投資於在東南亞國協會及亞太區 ( 日本除外 ) 的公司, 其可能包括新興市場 投資於該等市場或會涉及投資於較成熟市場不常有的額外風險以及特別考慮因素, 如流動性風險 貨幣風險 / 管制 政治及經濟不確定因素 法律及稅務風險 結算風險 託管風險, 且波幅很可能偏高 該等市場的高市場波動性及潛在結算困難亦可能導致在該等市場買賣的證券價格大幅波動, 並因而可能對本基金的價值造成不利影響 4. 投資於特定國家附帶的風險 本基金的投資可能集中於在東南亞國協會的市場 相對於投資組合更為多元化的基金, 本基金的價值可能較為波動 本基金的價值可能較易受到影響在東南亞國協會的市場之不利經濟 政治 政策 外匯 流動性 稅務 法律或監管事件所影響 5. 投資於小型 中型公司附帶的風險 一般而言, 小型及中型公司的股票可能有較低流動性, 且其價格相對較大型公司的股價於面對不利經濟發展時會更為波動 風險包括經濟風險, 例如有關產品深度欠奉 地域分散有限 對業務週期的敏感度較高及組織風險 ( 例如集中管理及依賴股東及主要人員等 ) 較小型公司的股份可能較為難以買賣, 以致執行投資決定時的靈活性較低, 並有時可能須承擔較高成本 6. 衍生工具附帶的風險 7. 流動性風險 本基金可能會投資於衍生工具, 以作投資用途或有效管理投資組合 與衍生工具相關的風險包括對手方 信貸風險 流動性風險 估值風險 波動性風險及場外交易風險 衍生工具的槓桿元素 / 組成部分可導致損失遠大於本基金投資於衍生工具的金額 投資於衍生工具可導致本基金蒙受重大損失的高風險 此外, 概不保證本基金為對沖運用衍生工具將會完全有效, 在不利情況下, 如運用衍生工具無效, 本基金可能會蒙受重大損失 新興市場的市場流動性可能較已發展市場的流動性為低, 故購買及銷售持股可能較為需時 本基金亦可能須面對難以按證券或衍生工具的公平市場價格出售的問題 3

4 8. 對手方風險 9. 貨幣風險 霸菱大東協基金 對手方風險為組織未能就債券或其他交易或買賣支付款項的風險 在對手方未能及時履行責任及本基金被延遲或阻止行使其於組合投資的權利的前提下, 本基金持倉的價值可能會下跌 失去收入及 或產生與維護其權利有關的成本 本基金的相關投資可能以本基金的基本貨幣以外的貨幣計值 此外, 本基金的單位類別可指定以本基金的基本貨幣以外的貨幣結算 本基金的資產淨值可能因該等貨幣與基本貨幣之間的匯率波動及匯率管制的變動而受到不利影響 10. 從資本扣除的費用 / 與分派有關的風險 本基金普遍會 ( 根據愛爾蘭會計指引 ) 自收入中支付其管理費及其他費用及開支 然而, 如沒有充足收入, 基金經理可從資本中, 或從已扣除變現及未變現資本虧損後的變現及未變現資本收益中支付其部分或全部管理費及其他費用及開支 如管理費及其他費用及開支乃自資本而非所產生的收入中扣除, 則增長可能會受到限制, 並可能會侵蝕資本 本基金普遍會自盈餘收入淨額中支付股息 然而, 基金經理亦可能會就其認為維持合理分派水平而言合適的情況下, 在扣除變現及未變現資本虧損後, 分派部分資本收益 根據香港監管披露規定, 自未變現資本收益中支付分派相當於從資本中作出分派, 而在該等情況下作出的分派則相當於從投資者的原有投資或自該原有投資應佔的任何資本收益中退還或提取部分款項 任何與以未變現資本收益支付股息有關的分派 ( 即指實際上從資本中支付股息 ) 或會令本基金的每單位資產淨值即時減少 本基金過往的業績表現如何? 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% -20.0% 該年度的業績表現乃在不再適用的情況下達致, 因投資政策已於 2008 年起作出更改 資料來源..霸菱 86.2% 37.4% -11.6% -6.0% -11.9% 往績並非預測日後業績表現的指標 投資者未必能取回全部投資本金 基金業績表現以曆年末的資產淨值作為比較基礎, 股息會滾存再作投資 上述數據顯示 A 類別美元收益總值在有關曆年內的升跌幅度 業績表現以美元計算, 當中反映出基金的持續費用, 但不包括基金可能向閣下收取的認購費及贖回費 由於 A 類別美元收益為在香港獲認可的零售單位類別並以本基金的基本貨幣計值, 故獲選為代表單位類別 如年內沒有顯示有關的業績表現, 即代表當年沒有足夠數據用作提供業績表現之用 基金發行日 :1978 年 10 月 11 日 A 類別美元收益發行日 年 8 月 1 日 霸菱大東協基金 - A 類別美元收益 22.2% 9.2% 5.1% 30.7% 4

5 霸菱大東協基金 有否提供保證? 本基金並不提供任何保證 閣下未必能全數取回投資金額 有什麼費用及收費? 閣下應支付的收費 當進行本基金單位交易時, 閣下可能須支付下列費用 費用 支付金額 認購費 ( 初期手續費 ) A 類別單位 : 每單位資產淨值之最多 5% I 類別單位..無 轉換費 ( 轉換費用 ) 無 贖回費 ( 贖回費用 ) 無 * 本基金應支付的持續費用 以下費用將從本基金中支付 該等費用將使閣下的投資回報減少 年率 ( 佔本基金資產淨值 ( 資產淨值 ) 的百分比 ) 如另有載述, 則不在此限 管理費 A 類別單位..類別應佔本基金資產淨值的 1.25% I 類別單位..類別應佔本基金資產淨值的 0.75% 保管人費用 表現費 包含在行政管理 保管及營運費 不適用 行政管理 保管及營運費 ** A 類別單位 ( 對沖類別除外 )..類別應佔本基金資產淨值的 0.45% A 類別單位 ( 對沖類別 )..類別應佔本基金資產淨值的 % I 類別單位..類別應佔基金資產淨值的 0.25% 交易費用 分銷商費用 按一般商業費率 不適用 * 如有徵收任何贖回費用或贖回費用增加至發售文件列明的特定允許最高水平, 本基金將會向投資者發出最少 1 個月通知 ** 行政管理 保管及營運費包括行政管理人及保管人的合計費用及開支, 以及若干其他費用及經常性開支 請參閱發售文件以了解進一步詳情 其他費用 當進行本基金單位交易時, 閣下可能須支付其他費用 本基金亦將須承擔與其直接相關的費用, 而該等費用列明於發售文件中 5

6 霸菱大東協基金 其他資料 當香港代表霸菱資產管理 ( 亞洲 ) 有限公司於香港營業日 1 ( 亦為交易日 ) 下午五時正 ( 香港時間 ) 或之前, 或基金經理於交易日中午十二時正 ( 愛爾蘭時間 ) 或之前收妥閣下的要求後, 閣下一般按本基金下一個釐定的相關單位類別每單位資產淨值認購及贖回單位 交易日指愛爾蘭及英國的銀行均營業的每個營業日 ( 不包括星期六或星期日 ) 閣下在下達認購 贖回及 / 或轉換指示前, 請聯絡閣下的分銷商核實有關分銷商的內部最後交易時間 ( 其可能較本基金的最後交易時間為早 ) 本基金將就各交易日計算資產淨值, 而相關單位類別的單位價格則在各交易日公佈, 並可於 2 查閱 過去 12 個月的股息 ( 即自可分派收入及資本淨額中支付的相關金額 ) 組成可透過香港代表的網站 2 取得, 或可向香港代表索取 投資者可於 2 取得其他向香港投資者銷售的單位類別之過往業績資料 重要資料 閣下如有疑問, 應尋求專業意見 證監會對本概要的內容概不承擔責任, 對其準確性或完整性亦不作出任何陳述 1 香港營業日 指香港銀行開放正常營業的日子 ( 星期六或星期日除外 ), 惟倘因懸掛 8 號風球 黑色暴雨警告或其他類似事件, 使香港銀行於任何日子開放營業的時間縮短, 則該日並非香港營業日, 除非基金經理及保管人另行決定或基金經理及保管人可能釐定的該等日子 2 該網站並未經證監會審閱, 並可能載有未經證監會認可的基金的資料 6

7 Baring International Fund Managers (Ireland) Limited PRODUCT KEY FACTS Barings International Umbrella Fund Barings ASEAN Frontiers Fund April 2018 This statement provides you with key information about Barings ASEAN Frontiers Fund (the Fund ). This statement is a part of the offering document. You should not invest in the Fund based on this statement alone. QUICK FACTS Fund Manager Investment Manager Sub-Investment Manager Depositary Ongoing charges over a year: Dealing frequency Base currency Dividend policy* Financial year end Baring International Fund Managers (Ireland) Limited (the Manager ) Baring Asset Management Limited (internal delegation, in the United Kingdom) Baring Asset Management (Asia) Limited (internal delegation, in Hong Kong) Northern Trust Fiduciary Services (Ireland) Limited Distribution Unit Classes (Inc) Accumulation Unit Classes (Acc) Class A USD Inc: 1.70% # Class A AUD Hedged Acc: 1.71% # Class A EUR Inc: 1.70% # Class A USD Acc: 1.70% # Class A GBP Inc: 1.70% # Class A EUR Acc: 1.70%^ Class I USD Acc: 1.00% # Class I EUR Acc: 1.00% # Class I GBP Acc: 1.00% # # As the fee structure of the Fund has been changed with effect from 30 April 2018, the ongoing charges figure is an estimate only and is calculated based on the estimated annual ongoing expenses chargeable to the respective unit class expressed as a percentage of the average net asset value of the respective unit class for the same period. The actual figures may vary from year to year. ^ The ongoing charges figure for this unlaunched unit class is an estimate only and is based on ongoing charges figure for a reference unit class which has a similar fee structure. The actual figure may be different upon actual operation of the unit class and the figure may vary from year to year. Daily USD For Distribution Unit Classes (Inc), dividends, if declared, will be paid. For Accumulation Unit Classes (Acc), no dividend will be paid. * The Fund normally pays dividends out of surplus net income. However, the Manager may also distribute such part of any capital gains less realised and unrealised capital losses as, in its opinion, is appropriate to maintain a satisfactory level of distribution. Payment of distributions out of unrealised capital gains amounts to distribution out of capital under Hong Kong regulatory disclosure requirements and payment of distributions under such circumstances may result in an immediate reduction of the Fund s net asset value per unit. 30 April 1

8 BARINGS ASEAN Frontiers Fund Min. investment: Initial min. investment: Subsequent min. investment: Distribution Unit Classes (Inc) Class A USD Inc USD5,000 USD500 Class A EUR Inc EUR3,500 EUR500 Class A GBP Inc GBP2,500 GBP500 Accumulation Unit Classes (Acc) Class A AUD Hedged Acc AUD6,000 AUD500 Class A USD Acc USD5,000 USD500 Class A EUR Acc EUR3,500 EUR500 Class I USD Acc USD10,000,000 USD500 Class I EUR Acc EUR10,000,000 EUR500 Class I GBP Acc GBP10,000,000 GBP500 WHAT IS THIS PRODUCT? Barings ASEAN Frontiers Fund is a sub-fund of Barings International Umbrella Fund, which is a unit trust domiciled in Ireland. Its home regulator is the Central Bank of Ireland. OBJECTIVES AND INVESTMENT STRATEGY Objectives To achieve long-term capital growth in the value of assets by investing in companies in Asia which the Manager believes will benefit from the economic growth and development of the region. Strategy The Fund will invest at least 70% of its total assets at any one time in equities and equity-related securities (such as structured notes, participation notes or equity-linked notes) of companies incorporated in, or exercising the predominant part of their economic activity in, countries which are members of the Association of South-East Asian Nations (ASEAN) or quoted or traded on the stock exchanges in those countries. The members of ASEAN include (but not to be limited to) Singapore, Thailand, the Philippines, Malaysia, Indonesia and Vietnam. For this purpose, total assets exclude cash and ancillary liquidities. The Fund may also invest up to 30% of its total assets, either directly or through depositary receipts, in equities and equity-related securities of companies that are (i) incorporated, or (ii) exercising the predominant part of their economic activity, or (iii) quoted or traded on the stock exchanges, in (a) other markets in the Asia Pacific region including, but not limited to, Korea, Hong Kong, China, Taiwan, India, Australia, New Zealand, Pakistan, Sri Lanka and Bangladesh but excluding Japan, or (b) other markets which the Manager believes would have the potential to benefit from the economic growth and development from the Asia Pacific region excluding Japan, when and if they consider it appropriate. The Fund may also invest in collective investment schemes in accordance with the requirements of the Central Bank of Ireland up to a maximum of 10% of the net asset value of the Fund. With regard to investment in China, no more than 10% of the Fund s net asset value may at any one time be invested directly or indirectly in China A shares and B shares. It is anticipated that this exposure will be obtained either directly through investment in China A shares listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange via the Shanghai Hong Kong Stock Connect Scheme and Shenzhen Hong Kong Stock Connect Scheme or indirectly through investment in other eligible collective investment schemes or participation notes. Under exceptional circumstances (e.g. economic conditions, political risks or world events, high downside risks during uncertainties, or closure of relevant market(s) due to unexpected events, such as political unrest, war or bankruptcy of large financial institutions), the Fund may temporarily invest up to 100% of its total assets in cash, deposits, treasury bills, government bonds or short-term money market instruments or have substantial holdings in cash and cash equivalents. The Fund may use derivatives (including warrants, futures, options, currency forward contracts (including non-deliverable forwards), swap agreements and contracts for difference) for efficient portfolio management (including hedging) or investment purposes. Although derivatives may be used, they will not be used extensively for investment purposes. The derivative techniques may include, but are not limited to: (i) hedging a currency exposure; (ii) using derivatives as a substitute for taking a position in the underlying asset where the Investment Manager feels that a derivative exposure to the underlying asset represents better value than a direct exposure; (iii) tailoring the Fund s interest rate exposure to the Investment Manager s outlook for interest rates; and/or (iv) gaining an exposure to the composition and performance of a particular index which are consistent with the investment objective and policies of the Fund. 2

9 BARINGS ASEAN Frontiers Fund WHAT ARE THE KEY RISKS? Investment involves risks. Please refer to the offering document for details including the risk factors. 1. Investment risk The Fund s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Fund may suffer losses. The Fund is an investment fund and is not in the nature of a bank deposit. There is no guarantee of repayment of principal. 2. Risks of investment in equities and equity-related securities The Fund s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors. The Fund may invest in equity-related securities such as structured notes, participation notes or equity-linked notes. These are usually issued by a broker, an investment bank or a company and are therefore subject to the risk of insolvency or default of the issuer. If there is no active market in these instruments, this may lead to liquidity risk. Further, investment in equity-linked securities may lead to dilution of performance of the Fund when compared to the other funds which invest directly in similar underlying assets due to fees embedded in the equity-related securities. The aforesaid circumstances may adversely affect the net asset value per unit of the Fund. Securities exchanges typically have the right to suspend or limit trading in any instrument traded on that exchange. Governments or the regulators may also implement policies that may affect the financial markets. A suspension could render it impossible for the Investment Manager or an underlying fund manager to liquidate positions and thereby expose the Fund to losses and may have a negative impact on the Fund. 3. Emerging market investment risk The Fund may invest in companies in ASEAN and the Asia Pacific region excluding Japan, which may include emerging markets. Investing in these markets may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility. High market volatility and potential settlement difficulties in such markets may also result in significant fluctuations in the prices of the securities traded on such markets and thereby may adversely affect the value of the Fund. 4. Risks associated with investment in specific countries The Fund s investment may be concentrated in the markets in ASEAN. The value of the Fund may be more volatile than that of a fund having a more diverse portfolio of investments. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the markets in ASEAN. 5. Risks associated with small-capitalisation / mid-capitalisation companies The stock of small-capitalisation and mid-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general. Risks include economic risks, such as lack of product depth, limited geographical diversification, increased sensitivity to the business cycle and organisational risk, such as concentration of management and shareholders and key-person dependence. Shares in smaller companies can be more difficult to buy and sell, resulting in less flexibility, and sometimes higher costs, in implementing investment decisions. 6. Risks associated with derivatives The Fund may have exposure to derivatives for investment purposes or for efficient portfolio management. Risks associated with derivatives include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The leverage element/component of a derivative can result in a loss significantly greater than the amount invested in the derivative by the Fund. Exposure to derivatives may lead to a high risk of significant loss by the Fund. Furthermore, there is no guarantee that the Fund s use of derivatives for hedging will be entirely effective and in adverse situations, where the use of derivatives becomes ineffective, the Fund may suffer significant loss. 7. Liquidity risk Market liquidity in the emerging markets may be lower than the more developed markets so that the purchase and sale of holding may take longer. The Fund may also encounter difficulties in disposing of securities or derivatives at their fair market price. 3

10 8. Counterparty risk BARINGS ASEAN Frontiers Fund Counterparty risk is the risk that an organization does not pay out on a bond or other trade or transaction when it is supposed to. If a counterparty fails to honour its obligations in a timely manner and the Fund is delayed or prevented from exercising its rights with respect to the investments in its portfolio, it may experience a decline in the value of its position, lose income and/or incur costs associated with asserting its rights. 9. Currency risk The underlying investments of the Fund may be denominated in currencies other than the base currency of the Fund. Also, a class of units of the Fund may be designated in a currency other than the base currency of the Fund. The net asset value of the Fund may be affected unfavourably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls. 10. Charges deducted from capital/ risks relating to distribution The Fund normally pays its management fee and other fees and expenses out of income (in accordance with Irish accounting guidelines). However, where insufficient income is available, the Manager may pay some or all of its management fee and other fees and expenses out of capital and out of both realised and unrealised capital gains less realised and unrealised capital losses. Where the management fee and other fees and expenses are deducted from capital rather than income generated, this may constrain growth and could erode capital. The Fund normally pays dividends out of surplus net income. However, the Manager may also distribute such part of any capital gains less realised and unrealised capital losses as, in its opinion, is appropriate to maintain a satisfactory level of distribution. Payment of distributions out of unrealised capital gains amounts to distribution out of capital under Hong Kong regulatory disclosure requirements and that payment of distributions under such circumstances amounts to a return or withdrawal of part of an investor's original investment or from any capital gains attributable to that original investment. Any distributions involving payment of unrealised capital gains as dividends (which means effectively paying dividend out of capital) may result in an immediate reduction of the Fund s net asset value per unit. HOW HAS THE FUND PERFORMED? 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% -20.0% Source: Barings Barings ASEAN Frontiers Fund - Class A USD Inc The performance of this year 86.2% was achieved under circumstanc es that no longer apply 37.4% as the investment 22.2% policy was changed in 9.2% % -6.0% -11.9% Past performance information is not indicative of future performance. Investors may not get back the full amount invested. The computation basis of the performance is based on the calendar year end, NAV-To-NAV, with dividend reinvested. These figures show by how much the Class A USD Inc increased or decreased in value during the calendar year being shown. Performance data has been calculated in US dollars, including ongoing charges and excluding subscription fee and redemption fee you might have to pay. Class A USD Inc is selected as representative unit class as it is a retail unit class authorised in Hong Kong and is denominated in the Fund s base currency. Where no past performance is shown there was insufficient data available in that year to provide performance. Fund launch date: 11 October 1978 Class A USD Inc launch date: 01 August % 30.7% 4

11 BARINGS ASEAN Frontiers Fund IS THERE ANY GUARANTEE? The Fund does not have any guarantees. You may not get back the full amount of money you invest. WHAT ARE THE FEES AND CHARGES? Charges which may be payable by you You may have to pay the following fees when dealing in the units of the Fund. Fee Subscription fee (Preliminary charge) Switching fee (Conversion charge) Redemption fee (Redemption charge) What you pay Class A Units: up to 5% of the net asset value per unit Class I Units: Nil Nil Nil* Ongoing fees payable by the Fund The following expenses will be paid out of the Fund. They affect you because they reduce the return you get on your investments. Annual rate (as a % of the Fund s net asset value ( NAV )), unless otherwise specified Management fee Depositary fee Performance fee Administration, Depositary and Operating Fee ** Transaction fee Distributor fee Class A Units: 1.25% of the Fund s NAV attributable to the Class Class I Units: 0.75% of the Fund s NAV attributable to the Class Included in the Administration, Depositary and Operating Fee Not applicable Class A Units (other than hedged Class): 0.45% of the Fund s NAV attributable to the Class Class A Units (hedged Class): % of the Fund s NAV attributable to the Class Class I Units: 0.25% of the Fund s NAV attributable to the Class At normal commercial rates Not applicable * At least 1 month s notice will be given to investors should any redemption fees be charged or increased up to the specified permitted maximum level as set out in the offering document.. ** The Administration, Depositary and Operating Fee includes the aggregate fees and expenses of the Administrator and Depositary and certain other fees and ongoing expenses. Please refer to the offering document for further details. Other fees You may have to pay other fees when dealing in the units of the Fund. The Fund will also bear the costs which are directly attributable to it, as set out in the offering document. 5

12 ADDITIONAL INFORMATION BARINGS ASEAN Frontiers Fund You generally subscribe and redeem units at the Fund s next-determined NAV per unit attributable to the relevant unit class after your request is received in good order by Baring Asset Management (Asia) Limited, our Hong Kong Representative, by 5 p.m. Hong Kong time on a Hong Kong Business Day 1 which is also a Dealing Day or the Manager by 12 noon Irish time on a Dealing Day. Dealing Days are every business day on which banks in both Ireland and the United Kingdom are open for business (excluding Saturday or Sunday). Before placing your subscription, redemption and/or conversion orders, please check with your distributor for the distributor s internal dealing deadline (which may be earlier than the Fund s dealing deadline). The NAV of the Fund is calculated and the prices of unit of the relevant unit classes are published for each Dealing Day, and are available online at 2. The composition of the dividends (i.e. the relative amounts paid out of net distributable income and capital) for the last 12 months 2 can be obtained either through the Hong Kong Representative's website at 2 or from the Hong Kong Representative on request. Investors may obtain the past performance information of other unit classes offered to Hong Kong investors from 2. IMPORTANT If you are in doubt, you should seek professional advice. The SFC takes no responsibility for the contents of this statement and makes no representation as to its accuracy or completeness. 1 Hong Kong Business Day means a day (other than a Saturday or Sunday) on which banks in Hong Kong are open for normal business, provided that where as a result of a number 8 typhoon signal, black rainstorm warning or other similar event, the period during which banks in Hong Kong are open on any day is reduced, such day shall not be a Hong Kong Business Day unless the Manager and the Depositary determine otherwise or such other day or days as the Manager and the Depositary may determine. 2 This website has not been reviewed by the SFC and it may contain information on funds which are not authorised by the SFC. 6

13 產品資料概覽 霸菱國際傘子基金霸菱亞洲增長基金 2018 年 4 月 Baring International Fund Managers (Ireland) Limited 本概覽提供有關霸菱亞洲增長基金 ( 本基金 ) 的重要資料 本概覽是發售文件的一部分 閣下切勿單憑本概覽作出投資於本基金的決定 資料便覽 基金經理 Baring International Fund Managers (Ireland) Limited( 基金經理 ) 投資經理 Baring Asset Management Limited ( 內部委派, 英國 ) 副投資經理 霸菱資產管理 ( 亞洲 ) 有限公司 ( 內部委派, 香港 ) 保管人 全年經常性開支比率 : Northern Trust Fiduciary Services (Ireland) Limited 分派單位類別 ( 收益 ) 累積單位類別 ( 累積 ) A 類別美元收益 : 1.70% # A 類別美元累積 : 1.70%^ A 類別歐元收益 : 1.70% # A 類別歐元累積 : 1.70%^ A 類別英鎊收益 : 1.70% # I 類別美元累積 : 1.10% # I 類別歐元累積 : 1.10% # I 類別英鎊累積 : 1.10% # # 由於本基金的收費結構由 2018 年 4 月 30 日起已更改, 故經常性開支比率僅為估計數字, 乃根據各個單位類別應支付的估計年度經常性開支計算, 以各個單位類別於同一期間的平均資產淨值的百分比表示 實際比率每年均可能有所變動 ^ 此等尚未發行之單位類別之經常性開支比率僅為估計數字, 乃根據擁有類似收費結構的參考單位類別的經常性開支比率計算 在該等單位類別開始實際運作後, 實際經常性開支比率可能有別於估計數字, 及每年均可能有所變動 交易頻次基本貨幣股息政策 * 財政年度年結日 每日 美元 就分派單位類別 ( 收益 ) 而言, 如有宣派股息, 將會派發股息 就累積單位類別 ( 累積 ) 而言, 將不會派發股息 * 本基金普遍會從盈餘收入淨額支付股息 然而, 基金經理亦可能會就其認為維持合理分派水平而言合適的情況下, 在扣除變現及未變現資本虧損後, 分派部分資本收益 根據香港監管披露規定, 自未變現資本收益中分派款項相當於從資本中作出分派 在該等情況下作出的分派款項或會令本基金的每單位資產淨值即時減少 4 月 30 日 1

14 霸菱亞洲增長基金 最低投資額 : 首次最低投資額..其後最低投資額.. 分派單位類別 ( 收益 ) A 類別美元收益 5,000 美元 500 美元 A 類別歐元收益 3,500 歐元 500 歐元 A 類別英鎊收益 2,500 英鎊 500 英鎊 累積單位類別 ( 累積 ) A 類別美元累積 5,000 美元 500 美元 A 類別歐元累積 3,500 歐元 500 歐元 I 類別美元累積 10,000,000 美元 500 美元 I 類別歐元累積 10,000,000 歐元 500 歐元 I 類別英鎊累積 10,000,000 英鎊 500 英鎊 這是甚麼產品? 霸菱亞洲增長基金為霸菱國際傘子基金的子基金 霸菱國際傘子基金為設於愛爾蘭的單位信託基金 其成立地監管機構為愛爾蘭中央銀行 目標及投資策略 目標 透過投資於亞洲及太平洋地區 ( 日本除外 ), 在資產價值中達致長期資本增長 策略 本基金將把其總資產至少 70% 投資於已在亞太區 ( 日本除外 ) 註冊成立或在該等地區進行其主要經濟活動的公司, 或在該等國家 ( 包括已發展及新興市場 ) 的交易所上市或買賣的股票及股票相關證券 就此而言, 總資產並不包括現金及輔助流動資金 至於其總資產的其餘部份, 本基金可投資於亞太區以外的地區 ( 日本除外 ), 以及投資於固定收益與現金 儘管本基金將旨在分散其投資, 惟視乎投資經理於不同時間的評估, 於若干國家 行業或界別的分配可能超過其總資產的 30% 為實施投資政策, 本基金可透過美國預託證券 全球預託證券及其他股票相關證券 ( 包括符合中央銀行的可轉讓證券集體投資計劃規例所載的可轉讓證券準則的參與票據 結構性票據 股票掛鈎票據及可轉換為股票的債務證券 ) 取得投資參與 本基金亦可根據愛爾蘭中央銀行的規定, 將本基金的資產淨值最多 10% 投資於集體投資計劃 就投資於中國而言, 在任何時候均不可將本基金資產淨值多於 10% 直接或間接投資於中國 A 股及 B 股 預期此項投資將可透過經滬港通及深港通投資於在上海證券交易所及深圳證券交易所上市的中國 A 股直接作出, 或透過投資於其他合資格集體投資計劃或參與票據間接作出 參與票據可用作投資於中國及越南的股票市場 在特殊情況下, 例如經濟狀況 政治風險或世界事件 不明朗情況下的較高下行風險或相關市場因突發事件 ( 例如政治動盪 戰爭或大型財務機構破產 ) 而關閉, 本基金可暫時將其高達 100% 的總資產投資於現金 存款 國庫債券 政府債券或短期貨幣市場工具, 或大額持有現金及現金等價物 本基金可運用衍生工具, 包括認股權證 期貨 期權 貨幣遠期合約 ( 包括不可交割遠期合約 ) 掉期協議及差價合約, 以作有效管理投資組合 ( 包括對沖 ) 或投資用途 儘管可運用衍生工具, 但不會廣泛運用該等衍生工具作投資用途 衍生工具技巧可能包括 ( 但不限於 )(i) 以對沖貨幣風險,(ii) 以在投資經理認為衍生工具投資於相關資產較直接投資更具價值時候, 使用衍生工具作為在相關資產持倉的替代,(iii) 以根據投資經理對利率的觀點而調整本基金的利率風險, 及 / 或 (iv) 以對符合本基金投資目標及政策的特定指數的成份及表現取得投資參與 2

15 霸菱亞洲增長基金 有什麼主要風險? 投資涉及風險 請參閱發售文件以了解風險因素等資料 1. 投資風險 本基金投資組合的價值可能因下文任何主要風險因素而下跌, 故閣下在本基金的投資可能蒙受損失 本基金為一項投資基金, 不屬銀行存款性質, 故不保證返還本金 2. 投資於股票及股票相關證券的風險 本基金於股本證券的投資須承受一般市場風險, 其價值可能因多項因素 ( 例如投資情緒 政治及經濟情況變化以及發行人特定因素 ) 而波動 本基金可投資於股票相關證券 ( 例如參與票據 結構性票據 股票掛鈎票據及可轉換為股票的債務證券 ) 該等投資工具一般由經紀 投資銀行或公司發行, 並因而須承受發行人的無力償債或違責風險 如該等投資工具並無活躍市場, 可能會導致流動性風險 此外, 與其他直接投資於類似相關資產的基金相比, 投資於股票掛鈎證券可能會因票據附帶的費用而攤薄本基金的業績表現 上述情況可能會對本基金的每單位資產淨值構成不利影響 證券交易所一般有權暫停或限制任何在該交易所買賣的工具之買賣 政府或監管機構亦可實施可能影響金融市場的政策 暫停買賣可令投資經理或相關基金經理無法進行平倉, 因而使本基金造成損失, 並可能對本基金造成負面影響 3. 新興市場投資風險 本基金可能投資於在亞太區 ( 日本除外 ) 的公司, 其可能包括新興市場 投資於該等市場或會涉及投資於較成熟市場不常有的額外風險以及特別考慮因素, 如流動性風險 貨幣風險 / 管制 政治及經濟不確定因素 法律及稅務風險 結算風險 託管風險, 且波幅很可能偏高 該等市場的高市場波動性及潛在結算困難亦可能導致在該等市場買賣的證券價格大幅波動, 並因而可能對本基金的價值造成不利影響 4. 投資於特定國家附帶的風險 本基金的投資可能集中於亞太區 ( 日本除外 ) 市場 相對於投資組合更為多元化的基金, 本基金的價值可能較為波動 本基金的價值可能較易受到影響亞太區 ( 日本除外 ) 市場之不利經濟 政治 政策 外匯 流動性 稅務 法律或監管事件所影響 5. 投資於小型 中型公司附帶的風險 一般而言, 小型及中型公司的股票可能有較低流動性, 且其價格相對較大型公司的股價於面對不利經濟發展時會更為波動 風險包括經濟風險, 例如有關產品深度欠奉 地域分散有限 對業務週期的敏感度較高及組織風險 ( 例如集中管理及依賴股東及主要人員等 ) 較小型公司的股份可能較為難以買賣, 以致執行投資決定時的靈活性較低, 並有時可能須承擔較高成本 6. 衍生工具附帶的風險 7. 流動性風險 本基金可能會投資於衍生工具, 以作投資用途或有效管理投資組合 與衍生工具相關的風險包括對手方 / 信貸風險 流動性風險 估值風險 波動性風險及場外交易風險 衍生工具的槓桿元素 / 組成部分可導致損失遠大於本基金投資於衍生工具的金額 投資於衍生工具可導致本基金蒙受重大損失的高風險 此外, 概不保證本基金為對沖運用衍生工具將會完全有效, 在不利情況下, 如運用衍生工具無效, 本基金可能會蒙受重大損失 新興市場的市場流動性可能較已發展市場的流動性為低, 故購買及銷售持股可能較為需時 本基金亦可能須面對難以按證券或衍生工具的公平市場價格出售的問題 3

16 8. 對手方風險 霸菱亞洲增長基金 對手方風險為組織未能就債券或其他交易或買賣支付款項的風險 在對手方未能及時履行責任及本基金被延遲或阻止行使其於組合投資的權利的前提下, 本基金持倉的價值可能會下跌 失去收入及 或產生與維護其權利有關的成本 9. 投資於可換股債券的風險 10. 貨幣風險 可換股債券是債務與股票之間的混合體, 准許持有人於指定的未來日期轉換為發行債券的公司之股份 因此, 可換股債券將面對股本變動及較傳統債券投資承受較大波動性 於可換股債券的投資承受與可比較傳統債券投資相關的相同利率風險 信貸風險 流動性風險及提前還款風險 本基金的相關投資可能以本基金的基本貨幣以外的貨幣計值 此外, 本基金的單位類別可指定以本基金的基本貨幣以外的貨幣結算 本基金的資產淨值可能因該等貨幣與基本貨幣之間的匯率波動及匯率管制的變動而受到不利影響 11. 從資本扣除的費用 / 與分派有關的風險 本基金普遍會 ( 根據愛爾蘭會計指引 ) 自收入中支付其管理費及其他費用及開支 然而, 如沒有充足收入, 基金經理可從資本中, 或從已扣除變現及未變現資本虧損後的變現及未變現資本收益中支付其部分或全部管理費及其他費用及開支 如管理費及其他費用及開支乃自資本而非所產生的收入中扣除, 則增長可能會受到限制, 並可能會侵蝕資本 本基金普遍會自盈餘收入淨額中支付股息 然而, 基金經理亦可能會就其認為維持合理分派水平而言合適的情況下, 在扣除變現及未變現資本虧損後, 分派部分資本收益 根據香港監管披露規定, 自未變現資本收益中支付分派相當於從資本中作出分派, 而在該等情況下作出的分派則相當於從投資者的原有投資或自該原有投資應佔的任何資本收益中退還或提取部分款項 任何與以未變現資本收益支付股息有關的分派 ( 即指實際上從資本中支付股息 ) 或會令本基金的每單位資產淨值即時減少 4

17 霸菱亞洲增長基金 本基金過往的業績表現如何? 80.0% 60.0% 40.0% 20.0% 0.0% -20.0% -40.0% -60.0% -80.0% 資料來源..霸菱 -54.1% 61.5% 往績並非預測日後業績表現的指標 投資者未必能取回全部投資本金 基金業績表現以曆年末的資產淨值作為比較基礎, 股息會滾存再作投資 上述數據顯示 A 類別美元收益總值在有關曆年內的升跌幅度 業績表現以美元計算, 當中反映出基金的持續費用, 但不包括基金可能向閣下收取的認購費及贖回費 由於 A 類別美元收益為在香港獲認可的零售單位類別並以本基金的基本貨幣計值, 故獲選為代表單位類別 基金發行日 :1987 年 2 月 3 日 13.1% A 類別美元收益發行日 年 2 月 3 日 霸菱亞洲增長基金 - A 類別美元收益 -19.8% 18.2% 1.8% 9.1% -1.4% -1.9% 57.8% 有否提供保證? 本基金並不提供任何保證 閣下未必能全數取回投資金額 有什麼費用及收費? 閣下應支付的收費 當進行本基金單位交易時, 閣下可能須支付下列費用 費用 支付金額 認購費 ( 初期手續費 ) A 類別單位..每單位資產淨值之最多 5% I 類別單位..無 轉換費 ( 轉換費用 ) 無 贖回費 ( 贖回費用 ) 無 * 5

18 霸菱亞洲增長基金 本基金應支付的持續費用 以下費用將從本基金中支付 該等費用將使閣下的投資回報減少 年率 ( 佔本基金資產淨值 ( 資產淨值 ) 的百分比 ) 如另有載述, 則不在此限 管理費 A 類別單位..類別應佔本基金資產淨值的 1.25% I 類別單位..類別應佔本基金資產淨值的 0.75% 保管人費用 表現費 包含在行政管理 保管及營運費 不適用 行政管理 保管及營運費 ** A 類別單位..類別應佔本基金資產淨值的 0.45% I 類別單位..類別應佔本基金資產淨值的 0.35% 交易費用 分銷商費用 按一般商業利率 不適用 * 如有徵收任何贖回費用或贖回費用增加至發售文件列明的特定允許最高水平, 本基金將會向投資者發出最少 1 個月通知 ** 行政管理 保管及營運費包括行政管理人及保管人的合計費用及開支, 以及若干其他費用及經常性開支 請參閱發售文件以了解進一步詳情 其他費用 當進行本基金單位交易時, 閣下可能須支付其他費用 本基金亦將須承擔與其直接相關的費用, 而該等費用列明於發售文件中 其他資料 當香港代表霸菱資產管理 ( 亞洲 ) 有限公司於香港營業日 1 ( 亦為交易日 ) 下午五時正 ( 香港時間 ) 或之前, 或基金經理於交易日中午十二時正 ( 愛爾蘭時間 ) 或之前收妥閣下的要求後, 閣下一般按本基金下一個釐定的相關單位類別每單位資產淨值認購及贖回單位 交易日指愛爾蘭及英國的銀行均營業的每個營業日 ( 不包括星期六或星期日 ) 閣下在下達認購 贖回及 / 或轉換指示前, 請聯絡閣下的分銷商核實有關分銷商的內部最後交易時間 ( 其可能較本基金的最後交易時間為早 ) 本基金將就各交易日計算資產淨值, 而相關單位類別的單位價格則在各交易日公佈, 並可於 2 查閱 過去 12 個月的股息 ( 即自可分派收入及資本淨額中支付的相關金額 ) 組成可透過香港代表的網站 2 取得, 或可向香港代表索取 投資者可於 2 取得其他向香港投資者銷售的單位類別之過往業績資料 重要資料 閣下如有疑問, 應尋求專業意見 證監會對本概要的內容概不承擔責任, 對其準確性或完整性亦不作出任何陳述 1 香港營業日 指香港銀行開放正常營業的日子 ( 星期六或星期日除外 ), 惟倘因懸掛 8 號風球 黑色暴雨警告或其他類似事件, 使香港銀行於任何日子開放營業的時間縮短, 則該日並非香港營業日, 除非基金經理及保管人另行決定或基金經理及保管人可能釐定的該等日子 2 該網站並未經證監會審閱, 並可能載有未經證監會認可的基金的資料 6

19 PRODUCT KEY FACTS Barings International Umbrella Fund Barings Asia Growth Fund April 2018 Baring International Fund Managers (Ireland) Limited This statement provides you with key information about Barings Asia Growth Fund (the Fund ). This statement is a part of the offering document. You should not invest in the Fund based on this statement alone. QUICK FACTS Fund Manager Investment Manager Sub-Investment Manager Depositary Ongoing charges over a year: Baring International Fund Managers (Ireland) Limited (the Manager ) Baring Asset Management Limited (internal delegation, in the United Kingdom) Baring Asset Management (Asia) Limited (internal delegation, in Hong Kong) Northern Trust Fiduciary Services (Ireland) Limited Distribution Unit Classes (Inc) Accumulation Unit Classes (Acc) Class A USD Inc: 1.70% # Class A USD Acc: 1.70%^ Class A EUR Inc: 1.70% # Class A EUR Acc: 1.70%^ Class A GBP Inc: 1.70% # Class I USD Acc: 1.10% # Class I EUR Acc: 1.10% # Class I GBP Acc: 1.10% # # As the fee structure of the Fund has been changed with effect from 30 April 2018, the ongoing charges figure is an estimate only and is calculated based on the estimated annual ongoing expenses chargeable to the respective unit class expressed as a percentage of the average net asset value of the respective unit class for the same period. The actual figures may vary from year to year. ^ The ongoing charges figures for these unlaunched unit classes are estimates only and are based on ongoing charges figure for a reference unit class which has a similar fee structure. The actual figures may be different upon actual operation of the unit classes and the figures may vary from year to year. Dealing frequency Base currency Dividend policy* Financial year end Daily USD For DistributionUnit Classes (Inc), dividends, if declared, will be paid. For Accumulation Unit Classes (Acc), no dividend will be paid. * The Fund normally pays dividends out of surplus net income. However, the Manager may also distribute such part of any capital gains less realised and unrealised capital losses as, in its opinion, is appropriate to maintain a satisfactory level of distribution. Payment of distributions out of unrealised capital gains amounts to distribution out of capital under Hong Kong regulatory disclosure requirements and payment of distributions under such circumstances may result in an immediate reduction of the Fund s net asset value per unit. 30 April 1

20 Barings Asia Growth Fund Min. investment: Initial min. investment: Subsequent min. investment: Distribution Unit Classes (Inc) Class A USD Inc USD5,000 USD500 Class A EUR Inc EUR3,500 EUR500 Class A GBP Inc GBP2,500 GBP500 Accumulation Unit Classes (Acc) Class A USD Acc USD5,000 USD500 Class A EUR Acc EUR3,500 EUR500 Class I USD Acc USD10,000,000 USD500 Class I EUR Acc EUR10,000,000 EUR500 Class I GBP Acc GBP10,000,000 GBP500 WHAT IS THIS PRODUCT? Barings Asia Growth Fund is a sub-fund of Barings International Umbrella Fund, which is a unit trust domiciled in Ireland. Its home regulator is the Central Bank of Ireland. OBJECTIVES AND INVESTMENT STRATEGY Objectives To achieve long-term capital growth in the value of assets by investing in Asia and the Pacific region excluding Japan. Strategy The Fund will invest at least 70% of its total assets in equities and equity-related securities of companies incorporated in, or exercising the predominant part of their economic activity in the Asia Pacific region excluding Japan, or quoted or traded on the stock exchanges in those countries, including developed and emerging markets. For this purpose, total assets exclude cash and ancillary liquidities. For the remainder of its total assets, the Fund may invest outside the Asia Pacific region (excluding Japan) as well as in fixed income and cash. While the Fund will aim to diversify its investments, allocation to certain countries, industries or sectors may be more than 30% of its total assets depending on the Investment Manager s assessment at different times. In order to implement the investment policy the Fund may gain exposure through American depositary receipts, global depositary receipts and other equity related securities including participation notes, structured notes, equity-linked notes and debt securities convertible into equities which will satisfy the criteria for transferable securities as set out in the Central Bank s UCITS Regulations. The Fund may also invest in collective investment schemes in accordance with the requirements of the Central Bank of Ireland up to a maximum of 10% of the net asset value of the Fund. With regard to investment in China, no more than 10% of the Fund s net asset value may at any one time be invested directly or indirectly in China A shares and B shares. It is anticipated that this exposure will be obtained either directly through investment in China A shares listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange via the Shanghai Hong Kong Stock Connect Scheme and Shenzhen Hong Kong Stock Connect Scheme or indirectly through investment in other eligible collective investment schemes or participation notes. Participation notes may be used to gain access to the equity markets in China and Vietnam. Under exceptional circumstances (e.g. economic conditions, political risks or world events, high downside risks during uncertainties, or closure of relevant market(s) due to unexpected events, such as political unrest, war or bankruptcy of large financial institutions), the Fund may temporarily invest up to 100% of its total assets in cash, deposits, treasury bills, government bonds or short-term money market instruments or have substantial holdings in cash and cash equivalents. The Fund may use derivatives (including warrants, futures, options, currency forward contracts (including non-deliverable forwards), swap agreements and contracts for difference) for efficient portfolio management (including hedging) or investment purposes. Although derivatives may be used, they will not be used extensively for investment purposes. The derivative techniques may include, but are not limited to: (i) hedging a currency exposure; (ii) using derivatives as a substitute for taking a position in the underlying asset where the Investment Manager feels that a derivative exposure to the underlying asset represents better value than a direct exposure; (iii) tailoring the Fund s interest rate exposure to the Investment Manager s outlook for interest rates; and/or (iv) gaining an exposure to the composition and performance of a particular index which are consistent with the investment objective and policies of the Fund. 2

21 Barings Asia Growth Fund WHAT ARE THE KEY RISKS? Investment involves risks. Please refer to the offering document for details including the risk factors. 1. Investment risk The Fund s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Fund may suffer losses. The Fund is an investment fund and is not in the nature of a bank deposit. There is no guarantee of repayment of principal. 2. Risks of investment in equities and equity-related securities The Fund s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors. The Fund may invest in equity-related securities such as participation notes, structured notes, equity-linked notes and debt securities convertible into equities. These are usually issued by a broker, an investment bank or a company and are therefore subject to the risk of insolvency or default of the issuer. If there is no active market in these instruments, this may lead to liquidity risk. Further, investment in equity-linked securities may lead to dilution of performance of the Fund when compared to the other funds which invest directly in similar underlying assets due to fees embedded in the notes. The aforesaid circumstances may adversely affect the net asset value per unit of the Fund. Securities exchanges typically have the right to suspend or limit trading in any instrument traded on that exchange. Governments or the regulators may also implement policies that may affect the financial markets. A suspension could render it impossible for the Investment Manager or an underlying fund manager to liquidate positions and thereby expose the Fund to losses and may have a negative impact on the Fund. 3. Emerging market investment risk The Fund may invest in companies in the Asia Pacific region excluding Japan, which may include emerging markets. Investing in these markets may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility. High market volatility and potential settlement difficulties in such markets may also result in significant fluctuations in the prices of the securities traded on such markets and thereby may adversely affect the value of the Fund. 4. Risks associated with investment in specific countries The Fund s investment may be concentrated in the markets in the Asia Pacific region excluding Japan. The value of the Fund may be more volatile than that of a fund having a more diverse portfolio of investments. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the markets in the Asia Pacific region excluding Japan. 5. Risks associated with small-capitalisation / mid-capitalisation companies The stock of small-capitalisation and mid-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general. Risks include economic risks, such as lack of product depth, limited geographical diversification, increased sensitivity to the business cycle and organisational risk, such as concentration of management and shareholders and key-person dependence. Shares in smaller companies can be more difficult to buy and sell, resulting in less flexibility, and sometimes higher costs, in implementing investment decisions. 6. Risks associated with derivatives The Fund may have exposure to derivatives for investment purposes or for efficient portfolio management. Risks associated with derivatives include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The leverage element/component of a derivative can result in a loss significantly greater than the amount invested in the derivative by the Fund. Exposure to derivatives may lead to a high risk of significant loss by the Fund. Furthermore, there is no guarantee that the Fund s use of derivatives for hedging will be entirely effective and in adverse situations, where the use of derivatives becomes ineffective, the Fund may suffer significant loss. 7. Liquidity risk Market liquidity in the emerging markets may be lower than the more developed markets so that the purchase and sale of holding may take longer. The Fund may also encounter difficulties in disposing of securities or derivatives at their fair market price. 3

22 8. Counterparty risk Barings Asia Growth Fund Counterparty risk is the risk that an organization does not pay out on a bond or other trade or transaction when it is supposed to. If a counterparty fails to honour its obligations in a timely manner and the Fund is delayed or prevented from exercising its rights with respect to the investments in its portfolio, it may experience a decline in the value of its position, lose income and/or incur costs associated with asserting its rights. 9. Risks of investing in convertible bonds Convertible bonds are a hybrid between debt and equity, permitting holders to convert into shares in the company issuing the bond at a specified future date. As such, convertibles will be exposed to equity movement and greater volatility than straight bond investments. Investments in convertible bonds are subject to the same interest rate risk, credit risk, liquidity risk and prepayment risk associated with comparable straight bond investments. 10. Currency risk The underlying investments of the Fund may be denominated in currencies other than the base currency of the Fund. Also, a class of units of the Fund may be designated in a currency other than the base currency of the Fund. The net asset value of the Fund may be affected unfavourably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls. 11. Charges deducted from capital/risks relating to distribution The Fund normally pays its management fee and other fees and expenses out of income (in accordance with Irish accounting guidelines). However, where insufficient income is available, the Manager may pay some or all of its management fee and other fees and expenses out of capital and out of both realised and unrealised capital gains less realised and unrealised capital losses. Where the management fee and other fees and expenses are deducted from capital rather than income generated, this may constrain growth and could erode capital. The Fund normally pays dividends out of surplus net income. However, the Manager may also distribute such part of any capital gains less realised and unrealised capital losses as, in its opinion, is appropriate to maintain a satisfactory level of distribution. Payment of distributions out of unrealised capital gains amounts to distribution out of capital under Hong Kong regulatory disclosure requirements and that payment of distributions under such circumstances amounts to a return or withdrawal of part of an investor s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of unrealised capital gains as dividends (which means effectively paying dividend out of capital) may result in an immediate reduction of the Fund s net asset value per unit. 4

23 Barings Asia Growth Fund HOW HAS THE FUND PERFORMED? 80.0% 60.0% 40.0% 20.0% 0.0% -20.0% -40.0% -60.0% -80.0% -54.1% Source: Barings 61.5% Past performance information is not indicative of future performance. Investors may not get back the full amount invested. The computation basis of the performance is based on the calendar year end, NAV-To-NAV, with dividend reinvested. These figures show by how much the Class A USD Inc increased or decreased in value during the calendar year being shown. Performance data has been calculated in US dollars, including ongoing charges and excluding subscription fee and redemption fee you might have to pay. Class A USD Inc is selected as representative unit class as it is a retail unit class authorised in Hong Kong and is denominated in the Fund s base currency. Fund launch date: 03 February 1987 Class A USD Inc launch date: 03 February 1987 Barings Asia Growth Fund - Class A USD Inc 13.1% -19.8% 18.2% 1.8% 9.1% -1.4% -1.9% 57.8% IS THERE ANY GUARANTEE? The Fund does not have any guarantees. You may not get back the full amount of money you invest. WHAT ARE THE FEES AND CHARGES? Charges which may be payable by you You may have to pay the following fees when dealing in the units of the Fund. Fee What you pay Subscription fee (Preliminary charge) Switching fee (Conversion charge) Redemption fee (Redemption charge) Class A Units: up to 5% of the net asset value per unit Class I Units: Nil Nil Nil* 5

24 Ongoing fees payable by the Fund Barings Asia Growth Fund The following expenses will be paid out of the Fund. They affect you because they reduce the return you get on your investments. Annual rate (as a % of the Fund s net asset value ( NAV )), unless otherwise specified Management fee Depositary fee Performance fee Administration, Depositary and Operating Fee** Transaction fee Distributor fee Class A Units: 1.25% of the Fund s NAV attributable to the Class Class I Units: 0.75% of the Fund s NAV attributable to the Class Included in the Administration, Depositary and Operating Fee Not applicable Class A Units: 0.45% of the Fund s NAV attributable to the Class Class I Units: 0.35% of the Fund s NAV attributable to the Class At normal commercial rates Not applicable * At least 1 month s notice will be given to investors should any redemption fees be charged or increased up to the specified permitted maximum level as set out in the offering document. ** The Administration, Depositary and Operating Fee includes the aggregate fees and expenses of the Administrator and Depositary and certain other fees and ongoing expenses. Please refer to the offering document for further details. Other fees You may have to pay other fees when dealing in the units of the Fund. The Fund will also bear the costs which are directly attributable to it, as set out in the offering document. ADDITIONAL INFORMATION You generally subscribe and redeem units at the Fund s next-determined NAV per unit attributable to the relevant unit class after your request is received in good order by Baring Asset Management (Asia) Limited, our Hong Kong Representative, by 5 p.m. Hong Kong time on a Hong Kong Business Day 1 which is also a Dealing Day or the Manager by 12 noon Irish time on a Dealing Day. Dealing Days are every business day on which banks in both Ireland and the United Kingdom are open for business (excluding Saturday or Sunday). Before placing your subscription, redemption and/or conversion orders, please check with your distributor for the distributor s internal dealing deadline (which may be earlier than the Fund s dealing deadline). The NAV of the Fund is calculated and the prices of unit of the relevant unit classes are published for each Dealing Day, and are available online at 2. The composition of the dividends (i.e. the relative amounts paid out of net distributable income and capital) for the last 12 months can be obtained either through the Hong Kong Representative s website at 2 or from the Hong Kong Representative on request. Investors may obtain the past performance information of other unit classes offered to Hong Kong investors from 2. IMPORTANT If you are in doubt, you should seek professional advice. The SFC takes no responsibility for the contents of this statement and makes no representation as to its accuracy or completeness. 1 Hong Kong Business Day means a day (other than a Saturday or Sunday) on which banks in Hong Kong are open for normal business, provided that where as a result of a number 8 typhoon signal, black rainstorm warning or other similar event, the period during which banks in Hong Kong are open on any day is reduced, such day shall not be a Hong Kong Business Day unless the Manager and the Depositary determine otherwise or such other day or days as the Manager and the Depositary may determine. 2 This website has not been reviewed by the SFC and it may contain information on funds which are not authorised by the SFC. 6

25 產品資料概覽 霸菱國際傘子基金霸菱澳洲基金 2018 年 4 月 Baring International Fund Managers (Ireland) Limited 本概覽提供有關霸菱澳洲基金 ( 本基金 ) 的重要資料 本概覽是發售文件的一部分 閣下切勿單憑本概覽作出投資於本基金的決定 資料便覽 基金經理 Baring International Fund Managers (Ireland) Limited( 基金經理 ) 投資經理 Baring Asset Management Limited ( 內部委派, 英國 ) 副投資經理 霸菱資產管理 ( 亞洲 ) 有限公司 ( 內部委派, 香港 ) 保管人 全年經常性開支比率 : Northern Trust Fiduciary Services (Ireland) Limited 分派單位類別 ( 收益 ) 累積單位類別 ( 累積 ) A 類別美元收益 : 1.70% # A 類別歐元累積 : 1.70%^ A 類別歐元收益 : 1.70% # I 類別美元累積 : 1.00% # A 類別英鎊收益 : 1.70% # I 類別歐元累積 : 1.00%^ A 類別澳元收益 : 1.70% # I 類別英鎊累積 : 1.00% # I 類別澳元累積 : 1.00%^ # 由於本基金的收費結構由 2018 年 4 月 30 日起已更改, 故經常性開支比率僅為估計數字, 乃根據各個單位類別應支付的估計年度經常性開支計算, 以各個單位類別於同一期間的平均資產淨值的百分比表示 實際比率每年均可能有所變動 ^ 此等尚未發行之單位類別之經常性開支比率僅為估計數字, 乃根據擁有類似收費結構的參考單位類別的經常性開支比率計算 在該等單位類別開始實際運作後, 實際經常性開支比率可能有別於估計數字, 及每年均可能有所變動 交易頻次基本貨幣股息政策 * 財政年度年結日 每日 美元 就分派單位類別 ( 收益 ) 而言, 如有宣派股息, 將會派發股息 就累積單位類別 ( 累積 ) 而言, 將不會派發股息 * 本基金普遍會從盈餘收入淨額支付股息 然而, 基金經理亦可能會就其認為維持合理分派水平而言合適的情況下, 在扣除變現及未變現資本虧損後, 分派部分資本收益 根據香港監管披露規定, 自未變現資本收益中分派款項相當於從資本中作出分派 在該等情況下作出的分派款項或會令本基金的每單位資產淨值即時減少 4 月 30 日 1

26 霸菱澳洲基金 最低投資額 : 首次最低投資額..其後最低投資額.. 分派單位類別 ( 收益 ) A 類別美元收益 5,000 美元 500 美元 A 類別歐元收益 3,500 歐元 500 歐元 A 類別英鎊收益 2,500 英鎊 500 英鎊 A 類別澳元收益 6,000 澳元 500 澳元 累積單位類別 ( 累積 ) A 類別歐元累積 3,500 歐元 500 歐元 I 類別美元累積 10,000,000 美元 500 美元 I 類別歐元累積 10,000,000 歐元 500 歐元 I 類別英鎊累積 10,000,000 英鎊 500 英鎊 I 類別澳元累積 10,000,000 澳元 500 澳元 這是甚麼產品? 霸菱澳洲基金為霸菱國際傘子基金的子基金 霸菱國際傘子基金為設於愛爾蘭的單位信託基金 其成立地監管機構為愛爾蘭中央銀行 目標及投資策略 目標 透過投資於澳洲, 在資產價值中達致長期資本增長 策略 本基金將在任何時候把其總資產至少 70% 投資於已在澳洲註冊成立或在澳洲進行其主要經濟活動的公司的股票及股票相關證券 ( 例如結構性票據 參與票據或股票掛鈎票據 ), 或在澳洲的交易所上掛牌或買賣的股票及股票相關證券 就此而言, 總資產並不包括現金及輔助流動資金 本基金亦可將其最多 30% 的總資產直接或透過預託證券投資於 (a) 在亞太區澳洲以外市場, 或 (b) 基金經理認為將可能從亞太區的經濟增長及地區發展中受惠的其他市場 ( 如基金經理認為適合 )(i) 註冊成立, 或 (ii) 進行其主要經濟活動, 或 (iii) 在證券交易所上市或買賣的公司的股票及股票相關證券 本基金亦可根據愛爾蘭中央銀行的規定, 將本基金的資產淨值最多 10% 投資於集體投資計劃 在特殊情況下, 例如經濟狀況 政治風險或世界事件 不明朗情況下的較高下行風險或相關市場因突發事件 ( 例如政治動盪 戰爭或大型財務機構破產 ) 而關閉, 本基金可暫時將其高達 100% 的總資產投資於現金 存款 國庫債券 政府債券或短期貨幣市場工具, 或大額持有現金及現金等價物 本基金可運用衍生工具, 包括認股權證 期貨 期權 貨幣遠期合約 ( 包括不可交割遠期合約 ) 掉期協議及差價合約, 以作有效管理投資組合 ( 包括對沖 ) 或投資用途 儘管可運用衍生工具, 但不會廣泛運用該等衍生工具作投資用途 衍生工具技巧可能包括 ( 但不限於 )(i) 以對沖貨幣風險,(ii) 以在投資經理認為衍生工具投資於相關資產較直接投資更具價值時候, 使用衍生工具作為在相關資產持倉的替代,(iii) 以根據投資經理對利率的觀點而調整本基金的利率風險, 及 / 或 (iv) 以對符合本基金投資目標及政策的特定指數的成份及表現取得投資參與 2

27 霸菱澳洲基金 有什麼主要風險? 投資涉及風險 請參閱發售文件以了解風險因素等資料 1. 投資風險 本基金投資組合的價值可能因下文任何主要風險因素而下跌, 故閣下在本基金的投資可能蒙受損失 本基金為一項投資基金, 不屬銀行存款性質, 故不保證返還本金 2. 投資於股票及股票相關證券的風險 本基金於股本證券的投資須承受一般市場風險, 其價值可能因多項因素 ( 例如投資情緒 政治及經濟情況變化以及發行人特定因素 ) 而波動 本基金可投資於股票相關證券 ( 例如結構性票據 參與票據或股票掛鈎票據 ) 該等投資工具一般由經紀 投資銀行或公司發行, 並因而須承受發行人的無力償債或違責風險 如該等投資工具並無活躍市場, 可能會導致流動性風險 此外, 與其他直接投資於類似相關資產的基金相比, 投資於股票掛鈎證券可能會因股票相關證券附帶的費用而攤薄本基金的業績表現 上述情況可能會對本基金的每單位資產淨值構成不利影響 證券交易所通常有權暫停或限制買賣任何在該交易所買賣的工具 政府或監管機構亦可實施可能影響金融市場的政策 暫停買賣可使得投資經理或相關基金經理無法進行平倉, 因而致使本基金蒙受虧損, 並可能對本基金造成負面影響 3. 投資於特定國家附帶的風險 本基金的投資可能集中於澳洲市場 相對於投資組合更為多元化的基金, 本基金的價值可能較為波動 本基金的價值可能較易受到影響澳洲市場之不利經濟 政治 政策 外匯 流動性 稅務 法律或監管事件所影響 4. 投資於小型 中型公司附帶的風險 一般而言, 小型及中型公司的股票可能有較低流動性, 且其價格相對較大型公司的股價於面對不利經濟發展時會更為波動 風險包括經濟風險, 例如有關產品深度欠奉 地域分散有限 對業務週期的敏感度較高及組織風險 ( 例如集中管理及依賴股東及主要人員等 ) 較小型公司的股份可能較為難以買賣, 以致執行投資決定時的靈活性較低, 並有時可能須承擔較高成本 5. 衍生工具及流動性附帶的風險 6. 對手方風險 7. 貨幣風險 本基金可能會投資於衍生工具, 以作投資用途或有效管理投資組合 與衍生工具相關的風險包括對手方 信貸風險 流動性風險 估值風險 波動性風險及場外交易風險 衍生工具的槓桿元素 組成部分可導致損失遠大於本基金投資於衍生工具的金額 投資於衍生工具可導致本基金蒙受重大損失的高風險 此外, 概不保證本基金為對沖運用衍生工具將會完全有效, 在不利情況下, 如運用衍生工具無效, 本基金可能會蒙受重大損失 若干衍生工具可能不設交投活躍的市場, 故購買及銷售持股可能較為需時 本基金亦可能須面對難以按衍生工具的公平市場價格出售的問題 對手方風險為組織未能就債券或其他交易或買賣支付款項的風險 在對手方未能及時履行責任及本基金被延遲或阻止行使其於組合投資的權利的前提下, 本基金持倉的價值可能會下跌 失去收入及 或產生與維護其權利有關的成本 本基金的相關投資可能以本基金的基本貨幣以外的貨幣計值 此外, 本基金的單位類別可指定以本基金的基本貨幣以外的貨幣結算 本基金的資產淨值可能因該等貨幣與基本貨幣之間的匯率波動及匯率管制的變動而受到不利影響 3

28 8. 從資本扣除的費用 / 與分派有關的風險 霸菱澳洲基金 本基金普遍會 ( 根據愛爾蘭會計指引 ) 自收入中支付其管理費及其他費用及開支 然而, 如沒有充足收入, 基金經理可從資本中, 或從已扣除變現及未變現資本虧損後的變現及未變現資本收益中支付其部分或全部管理費及其他費用及開支 如管理費及其他費用及開支乃自資本而非所產生的收入中扣除, 則增長可能會受到限制, 並可能會侵蝕資本 本基金普遍會自盈餘收入淨額中支付股息 然而, 基金經理亦可能會就其認為維持合理分派水平而言合適的情況下, 在扣除變現及未變現資本虧損後, 分派部分資本收益 根據香港監管披露規定, 自未變現資本收益中支付分派相當於從資本中作出分派, 而在該等情況下作出的分派則相當於從投資者的原有投資或自該原有投資應佔的任何資本收益中退還或提取部分款項 任何與以未變現資本收益支付股息有關的分派 ( 即指實際上從資本中支付股息 ) 或會令本基金的每單位資產淨值即時減少 本基金過往的業績表現如何? 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% -20.0% -40.0% -60.0% -80.0% -54.7% 資料來源..霸菱 84.6% 往績並非預測日後業績表現的指標 投資者未必能取回全部投資本金 基金業績表現以曆年末的資產淨值作為比較基礎, 股息會滾存再作投資 上述數據顯示 A 類別美元收益總值在有關曆年內的升跌幅度 業績表現以美元計算, 當中反映出基金的持續費用, 但不包括基金可能向閣下收取的認購費及贖回費 由於 A 類別美元收益為在香港獲認可的零售單位類別並以本基金的基本貨幣計值, 故獲選為代表單位類別 基金發行日 :1981 年 12 月 4 日 13.4% -12.4% A 類別美元收益發行日 年 12 月 4 日 霸菱澳洲基金 - A 類別美元收益 16.2% 1.2% -4.9% -2.7% -4.2% 19.6% 有否提供保證? 本基金並不提供任何保證 閣下未必能全數取回投資金額 4

29 霸菱澳洲基金 有什麼費用及收費? 閣下應支付的收費 當進行本基金單位交易時, 閣下可能須支付下列費用 費用 支付金額 認購費 ( 初期手續費 ) A 類別單位..每單位資產淨值之最多 5% I 類別單位..無 轉換費 ( 轉換費用 ) 無 贖回費 ( 贖回費用 ) 無 * 本基金應支付的持續費用 以下費用將從本基金中支付 該等費用將使閣下的投資回報減少 年率 ( 佔本基金資產淨值 ( 資產淨值 ) 的百分比 ) 如另有載述, 則不在此限 管理費 A 類別單位..類別應佔本基金資產淨值的 1.25% I 類別單位..類別應佔本基金資產淨值的 0.75% 保管人費用 表現費 包含在行政管理 保管及營運費 不適用 行政管理 保管及營運費 ** A 類別單位..類別應佔本基金資產淨值的 0.45% I 類別單位..類別應佔本基金資產淨值的 0.25% 交易費用 按一般商業費率 分銷商費用 不適用 * 如有徵收任何贖回費用或贖回費用增加至發售文件列明的特定允許最高水平, 本基金將會向投資者發出最少 1 個月通知 ** 行政管理 保管及營運費包括行政管理人及保管人的合計費用及開支, 以及若干其他費用及經常性開支 請參閱發售文件以了解進一步詳情 其他費用 當進行本基金單位交易時, 閣下可能須支付其他費用 本基金亦將須承擔與其直接相關的費用, 而該等費用列明於發售文件中 5

30 霸菱澳洲基金 其他資料 當香港代表霸菱資產管理 ( 亞洲 ) 有限公司於香港營業日 1 ( 亦為交易日 ) 下午五時正 ( 香港時間 ) 或之前, 或基金經理於交易日中午十二時正 ( 愛爾蘭時間 ) 或之前收妥閣下的要求後, 閣下一般按本基金下一個釐定的相關單位類別每單位資產淨值認購及贖回單位 交易日指愛爾蘭及英國的銀行均營業的每個營業日 ( 不包括星期六或星期日 ) 閣下在下達認購 贖回及 / 或轉換指示前, 請聯絡閣下的分銷商核實有關分銷商的內部最後交易時間 ( 其可能較本基金的最後交易時間為早 ) 本基金將就各交易日計算資產淨值, 而相關單位類別的單位價格則在各交易日公佈, 並可於 2 查閱 過去 12 個月的股息 ( 即自可分派收入及資本淨額中支付的相關金額 ) 組成可透過香港代表的網站 2 取得, 或可向香港代表索取 投資者可於 2 取得其他向香港投資者銷售的單位類別之過往業績資料 重要資料 閣下如有疑問, 應尋求專業意見 證監會對本概要的內容概不承擔責任, 對其準確性或完整性亦不作出任何陳述 1 香港營業日 指香港銀行開放正常營業的日子 ( 星期六或星期日除外 ), 惟倘因懸掛 8 號風球 黑色暴雨警告或其他類似事件, 使香港銀行於任何日子開放營業的時間縮短, 則該日並非香港營業日, 除非基金經理及保管人另行決定或基金經理及保管人可能釐定的該等日子 2 該網站並未經證監會審閱, 並可能載有未經證監會認可的基金的資料 6

31 PRODUCT KEY FACTS Barings International Umbrella Fund Barings Australia Fund April 2018 Baring International Fund Managers (Ireland) Limited This statement provides you with key information about Barings Australia Fund (the Fund ). This statement is a part of the offering document. You should not invest in the Fund based on this statement alone. QUICK FACTS Fund Manager Investment Manager Sub-Investment Manager Depositary Ongoing charges over a year: Baring International Fund Managers (Ireland) Limited (the Manager ) Baring Asset Management Limited (internal delegation, in the United Kingdom) Baring Asset Management (Asia) Limited (internal delegation, in Hong Kong) Northern Trust Fiduciary Services (Ireland) Limited Distribution Unit Classes (Inc) Accumulation Unit Classes (Acc) Class A USD Inc: 1.70% # Class A EUR Acc: 1.70%^ Class A EUR Inc: 1.70% # Class I USD Acc: 1.00% # Class A GBP Inc: 1.70% # Class I EUR Acc: 1.00%^ Class A AUD Inc: 1.70% # Class I GBP Acc: 1.00% # Class I AUD Acc: 1.00%^ # As the fee structure of the Fund has been changed with effect from 30 April 2018, the ongoing charges figure is an estimate only and is calculated based on the estimated annual ongoing expenses chargeable to the respective unit class expressed as a percentage of the average net asset value of the respective unit class for the same period. The actual figures may vary from year to year. ^ The ongoing charges figures for these unlaunched unit classes are estimates only and are based on ongoing charges figure for a reference unit class which has a similar fee structure. The actual figures may be different upon actual operation of the unit classes and the figures may vary from year to year. Dealing frequency Base currency Dividend policy* Financial year end Daily USD For Distribution Unit Classes (Inc), dividends, if declared, will be paid. For Accumulation Unit Classes (Acc), no dividend will be paid. * The Fund normally pays dividends out of surplus net income. However, the Manager may also distribute such part of any capital gains less realised and unrealised capital losses as, in its opinion, is appropriate to maintain a satisfactory level of distribution. Payment of distributions out of unrealised capital gains amounts to distribution out of capital under Hong Kong regulatory disclosure requirements and payment of distributions under such circumstances may result in an immediate reduction of the Fund s net asset value per unit. 30 April 1

32 Min. investment: Initial min. investment: Subsequent min. investment: Distribution Unit Classes (Inc) Class A USD Inc USD5,000 USD500 Class A EUR Inc EUR3,500 EUR500 Class A GBP Inc GBP2,500 GBP500 Class A AUD Inc AUD6,000 AUD500 Accumulation Unit Classes (Acc) Class A EUR Acc EUR3,500 EUR500 Class I USD Acc USD10,000,000 USD500 Class I EUR Acc EUR10,000,000 EUR500 Class I GBP Acc GBP10,000,000 GBP500 Class I AUD Acc AUD10,000,000 AUD500 Barings Australia Fund WHAT IS THIS PRODUCT? Barings Australia Fund is a sub-fund of Barings International Umbrella Fund, which is a unit trust domiciled in Ireland. Its home regulator is the Central Bank of Ireland. OBJECTIVES AND INVESTMENT STRATEGY Objectives To achieve long-term capital growth in the value of assets by investing in Australia. Strategy The Fund will invest at least 70% of its total assets at any one time in equities and equity-related securities (such as structured notes, participation notes or equity-linked notes)of companies incorporated in, or exercising the predominant part of their economic activity in Australia, or quoted or traded on the stock exchanges in Australia. For this purpose, total assets exclude cash and ancillary liquidities. The Fund may also invest up to 30% of its total assets, either directly or through depositary receipts, in equities and equity-related securities of companies that are (i) incorporated, or (ii) exercising the predominant part of their economic activity, or (iii) quoted or traded on the stock exchanges, in (a) markets other than Australia in the Asia Pacific region, or (b) other markets which the Manager believes would have the potential to benefit from the economic growth and development from the Asia Pacific region, when and if they consider it appropriate. The Fund may also invest in collective investment schemes in accordance with the requirements of the Central Bank of Ireland up to a maximum of 10% of the Fund s net asset value. Under exceptional circumstances (e.g. economic conditions, political risks or world events, high downside risks during uncertainties, or closure of relevant market(s) due to unexpected events, such as political unrest, war or bankruptcy of large financial institutions), the Fund may temporarily invest up to 100% of its total assets in cash, deposits, treasury bills, government bonds or short-term money market instruments or have substantial holdings in cash and cash equivalents. The Fund may use derivatives (including warrants, futures, options, currency forward contracts (including non-deliverable forwards), swap agreements and contracts for difference) for efficient portfolio management (including hedging) or investment purposes. Although derivatives may be used, they will not be used extensively for investment purposes. The derivative techniques may include, but are not limited to: (i) hedging a currency exposure; (ii) using derivatives as a substitute for taking a position in the underlying asset where the Investment Manager feels that a derivative exposure to the underlying asset represents better value than a direct exposure; (iii) tailoring the Fund s interest rate exposure to the Investment Manager s outlook for interest rates; and/or (iv) gaining an exposure to the composition and performance of a particular index which are consistent with the investment objective and policies of the Fund. 2

33 Barings Australia Fund WHAT ARE THE KEY RISKS? Investment involves risks. Please refer to the offering document for details including the risk factors. 1. Investment risk The Fund s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Fund may suffer losses. The Fund is an investment fund and is not in the nature of a bank deposit. There is no guarantee of repayment of principal. 2. Risks of investment in equities and equity-related securities The Fund s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors. The Fund may invest in equity-related securities such as structured notes, participation notes or equity-linked notes. These are usually issued by a broker, an investment bank or a company and are therefore subject to the risk of insolvency or default of the issuer. If there is no active market in these instruments, this may lead to liquidity risk. Further, investment in equity-linked securities may lead to dilution of performance of the Fund when compared to the other funds which invest directly in similar underlying assets due to fees embedded in the equity-related securities. The aforesaid circumstances may adversely affect the net asset value per unit of the Fund. Securities exchanges typically have the right to suspend or limit trading in any instrument traded on that exchange. Governments or the regulators may also implement policies that may affect the financial markets. A suspension could render it impossible for the Investment Manager or an underlying fund manager to liquidate positions and thereby expose the Fund to losses and may have a negative impact on the Fund. 3. Risks associated with investment in specific countries The Fund s investment may be concentrated in the Australian markets. The value of the Fund may be more volatile than that of a fund having a more diverse portfolio of investments. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the Australian markets. 4. Risks associated with small-capitalisation / mid-capitalisation companies The stock of small-capitalisation and mid-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general. Risks include economic risks, such as lack of product depth, limited geographical diversification, increased sensitivity to the business cycle and organisational risk, such as concentration of management and shareholders and key-person dependence. Shares in smaller companies can be more difficult to buy and sell, resulting in less flexibility, and sometimes higher costs, in implementing investment decisions. 5. Risks associated with derivatives and liquidity The Fund may have exposure to derivatives for investment purposes or for efficient portfolio management. Risks associated with derivatives include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The leverage element/component of a derivative can result in a loss significantly greater than the amount invested in the derivative by the Fund. Exposure to derivatives may lead to a high risk of significant loss by the Fund. Furthermore, there is no guarantee that the Fund s use of derivatives for hedging will be entirely effective and in adverse situations, where the use of derivatives becomes ineffective, the Fund may suffer significant loss. There may not be an active market for certain derivatives so that the purchase and sale of holding may take longer. The Fund may also encounter difficulties in disposing of derivatives at their fair market price. 6. Counterparty risk Counterparty risk is the risk that an organization does not pay out on a bond or other trade or transaction when it is supposed to. If a counterparty fails to honour its obligations in a timely manner and the Fund is delayed or prevented from exercising its rights with respect to the investments in its portfolio, it may experience a decline in the value of its position, lose income and/or incur costs associated with asserting its rights. 7. Currency risk The underlying investments of the Fund may be denominated in currencies other than the base currency of the Fund. Also, a class of units of the Fund may be designated in a currency other than the base currency of the Fund. The net asset value of the Fund may be affected unfavourably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls. 3

34 8. Charges deducted from capital/risks relating to distribution Barings Australia Fund The Fund normally pays its management fee and other fees and expenses out of income (in accordance with Irish accounting guidelines). However, where insufficient income is available, the Manager may pay some or all of its management fee and other fees and expenses out of capital and out of both realised and unrealised capital gains less realised and unrealised capital losses. Where the management fee and other fees and expenses are deducted from capital rather than income generated, this may constrain growth and could erode capital. The Fund normally pays dividends out of surplus net income. However, the Manager may also distribute such part of any capital gains less realised and unrealised capital losses as, in its opinion, is appropriate to maintain a satisfactory level of distribution. Payment of distributions out of unrealised capital gains amounts to distribution out of capital under Hong Kong regulatory disclosure requirements and that payment of distributions under such circumstances amounts to a return or withdrawal of part of an investor s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of unrealised capital gains as dividends (which means effectively paying dividend out of capital) may result in an immediate reduction of the Fund s net asset value per unit. HOW HAS THE FUND PERFORMED? Barings Australia Fund - Class A USD Inc 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% -20.0% -40.0% -60.0% -80.0% 84.6% 13.4% 16.2% 19.6% 1.2% -12.4% -4.9% -2.7% -4.2% -54.7% Source: Barings Past performance information is not indicative of future performance. Investors may not get back the full amount invested. The computation basis of the performance is based on the calendar year end, NAV-To-NAV, with dividend reinvested. These figures show by how much the Class A USD Inc increased or decreased in value during the calendar year being shown. Performance data has been calculated in US dollars, including ongoing charges and excluding subscription fee and redemption fee you might have to pay. Class A USD Inc is selected as representative unit class as it is a retail unit class authorised in Hong Kong and is denominated in the Fund s base currency. Fund launch date: 04 December 1981 Class A USD Inc launch date: 04 December 1981 IS THERE ANY GUARANTEE? The Fund does not have any guarantees. You may not get back the full amount of money you invest. 4

35 Barings Australia Fund WHAT ARE THE FEES AND CHARGES? Charges which may be payable by you You may have to pay the following fees when dealing in the units of the Fund. Fee Subscription fee (Preliminary charge) Switching fee (Conversion charge) Redemption fee (Redemption charge) What you pay Class A Units: up to 5% of the net asset value per unit Class I Units: Nil Nil Nil* Ongoing fees payable by the Fund The following expenses will be paid out of the Fund. They affect you because they reduce the return you get on your investments. Annual rate (as a % of the Fund s net asset value ( NAV )), unless otherwise specified Management fee Depositary fee Performance fee Administration, Depositary and Operating Fee** Transaction fee Distributor fee Class A Units: 1.25% of the Fund s NAV attributable to the Class Class I Units: 0.75% of the Fund s NAV attributable to the Class Included in the Administration, Depositary and Operating Fee Not applicable Class A Units: 0.45% of the Fund s NAV attributable to the Class Class I Units: 0.25% of the Fund s NAV attributable to the Class At normal commercial rates Not applicable * At least 1 month s notice will be given to investors should any redemption fees be charged or increased up to the specified permitted maximum level as set out in the offering document. ** The Administration, Depositary and Operating Fee includes the aggregate fees and expenses of the Administrator and Depositary and certain other fees and ongoing expenses. Please refer to the offering document for further details. Other fees You may have to pay other fees when dealing in the units of the Fund. The Fund will also bear the costs which are directly attributable to it, as set out in the offering document. 5

36 ADDITIONAL INFORMATION Barings Australia Fund You generally subscribe and redeem units at the Fund s next-determined NAV per unit attributable to the relevant unit class after your request is received in good order by Baring Asset Management (Asia) Limited, our Hong Kong Representative, by 5 p.m. Hong Kong time on a Hong Kong Business Day 1 which is also a Dealing Day or the Manager by 12 noon Irish time on a Dealing Day. Dealing Days are every business day on which banks in both Ireland and the United Kingdom are open for business (excluding Saturday or Sunday). Before placing your subscription, redemption and/or conversion orders, please check with your distributor for the distributor s internal dealing deadline (which may be earlier than the Fund s dealing deadline). The NAV of the Fund is calculated and the prices of unit of the relevant unit classes are published for each Dealing Day, and are available online at 2. The composition of the dividends (i.e. the relative amounts paid out of net distributable income and capital) for the last 12 months can be obtained either through the Hong Kong Representative s website at 2 or from the Hong Kong Representative on request. Investors may obtain the past performance information of other unit classes offered to Hong Kong investors from 2. IMPORTANT If you are in doubt, you should seek professional advice. The SFC takes no responsibility for the contents of this statement and makes no representation as to its accuracy or completeness. 1 Hong Kong Business Day means a day (other than a Saturday or Sunday) on which banks in Hong Kong are open for normal business, provided that where as a result of a number 8 typhoon signal, black rainstorm warning or other similar event, the period during which banks in Hong Kong are open on any day is reduced, such day shall not be a Hong Kong Business Day unless the Manager and the Depositary determine otherwise or such other day or days as the Manager and the Depositary may determine. 2 This website has not been reviewed by the SFC and it may contain information on funds which are not authorised by the SFC. 6

37 產品資料概覽 霸菱國際傘子基金霸菱歐洲基金 2018 年 4 月 Baring International Fund Managers (Ireland) Limited 本概覽提供有關霸菱歐洲基金 ( 本基金 ) 的重要資料 本概覽是發售文件的一部分 閣下切勿單憑本概覽作出投資於本基金的決定 資料便覽 基金經理 Baring International Fund Managers (Ireland) Limited( 基金經理 ) 投資經理 Baring Asset Management Limited ( 內部委派, 英國 ) 保管人 全年經常性開支比率 : Northern Trust Fiduciary Services (Ireland) Limited 分派單位類別 ( 收益 ) 累積單位類別 ( 累積 ) A 類別美元收益 : 1.70% # A 類別歐元累積 : 1.70%^ A 類別歐元收益 : 1.70% # I 類別美元累積 : 1.00%^ C 類別美元收益 : 2.70% # I 類別歐元累積 : 1.00% + C 類別歐元收益 : 2.70% # I 類別英鎊收益 : 1.00%^ # 由於本基金的收費結構由 2018 年 4 月 30 日起已更改, 故經常性開支比率僅為估計數字, 乃根據各個單位類別應支付的估計年度經常性開支計算, 以各個單位類別於同一期間的平均資產淨值的百分比表示 實際比率每年均可能有所變動 ^ 此等尚未發行之單位類別之經常性開支比率僅為估計數字, 乃根據擁有類似收費結構的參考單位類別的經常性開支比率計算 在該等單位類別開始實際運作後, 實際經常性開支比率可能有別於估計數字, 及每年均可能有所變動 + 由於此單位類別已全部贖回, 故經常性開支比率僅為估計數字, 乃根據擁有類似收費結構的參考單位類別的經常性開支比率計算 在該等單位類別開始實際運作後, 實際經常性開支比率可能有別於估計數字, 及每年均可能有所變動 交易頻次基本貨幣股息政策 * 財政年度年結日 每日 美元 就分派單位類別 ( 收益 ) 而言, 如有宣派股息, 將會派發股息 就累積單位類別 ( 累積 ) 而言, 將不會派發股息 * 本基金普遍會從盈餘收入淨額支付股息 然而, 基金經理亦可能會就其認為維持合理分派水平而言合適的情況下, 在扣除變現及未變現資本虧損後, 分派部分資本收益 根據香港監管披露規定, 自未變現資本收益中分派款項相當於從資本中作出分派 在該等情況下作出的分派款項或會令本基金的每單位資產淨值即時減少 4 月 30 日 1

38 最低投資額 : 首次最低投資額..其後最低投資額.. 分派單位類別 ( 收益 ) A 類別美元收益 5,000 美元 500 美元 A 類別歐元收益 3,500 歐元 500 歐元 C 類別美元收益 5,000 美元 500 美元 C 類別歐元收益 3,500 歐元 500 歐元 I 類別英鎊收益 10,000,000 英鎊 500 英鎊 累積單位類別 ( 累積 ) A 類別歐元累積 3,500 歐元 500 歐元 I 類別美元累積 10,000,000 美元 500 美元 I 類別歐元累積 10,000,000 歐元 500 歐元 霸菱歐洲基金 這是甚麼產品? 霸菱歐洲基金為霸菱國際傘子基金的子基金 霸菱國際傘子基金為設於愛爾蘭的單位信託基金 其成立地監管機構為愛爾蘭中央銀行 目標及投資策略 目標 透過投資於歐洲 ( 包括英國 ) 公司, 在資產價值中達致長期資本增長 策略 本基金將在任何時候把其總資產至少 70% 投資於已在任何歐洲國家 ( 包括英國 ) 註冊成立的公司, 或進行其主要經濟活動的公司的股票及股票相關證券 ( 例如結構性票據 參與票據或股票掛鈎票據 ), 或在該等國家的交易所掛牌或買賣的股票及股票相關證券 基金經理將評估歐洲各國投資前景, 平衡投資組合的比例 本基金可投資於任何一個國家的比例並無限制 就此而言, 總資產並不包括現金及輔助流動資金 本基金將持續把其資產至少 75% 投資於合資格證券 ( 包括由總辦事處位於歐洲聯盟 ( 歐盟 ) 或歐洲經濟區 ( 歐洲經濟區 ) 國家 ( 列支敦士登除外 ) 的公司所發行, 以及在正常情況下須繳納企業所得稅的股本證券 ) 本基金亦可根據愛爾蘭中央銀行的規定, 將基金的資產淨值最多 10% 投資於集體投資計劃 在特殊情況下, 例如經濟狀況 政治風險或世界事件 不明朗情況下的較高下行風險或相關市場因突發事件 ( 例如政治動盪 戰爭或大型財務機構破產 ) 而關閉, 本基金可暫時將其高達 100% 的總資產投資於現金 存款 國庫債券 政府債券或短期貨幣市場工具, 或大額持有現金及現金等價物 本基金可運用衍生工具, 包括認股權證 期貨 期權 貨幣遠期合約 ( 包括不可交割遠期合約 ) 掉期協議及差價合約, 以作有效管理投資組合 ( 包括對沖 ) 或投資用途 儘管可運用衍生工具, 但不會廣泛運用該等衍生工具作投資用途 衍生工具技巧可能包括 ( 但不限於 )(i) 以對沖貨幣風險,(ii) 以在投資經理認為衍生工具投資於相關資產較直接投資更具價值時候, 使用衍生工具作為在相關資產持倉的替代,(iii) 以根據投資經理對利率的觀點而調整本基金的利率風險, 及 / 或 (iv) 以對符合本基金投資目標及政策的特定指數的成份及表現取得投資參與 2

39 霸菱歐洲基金 有什麼主要風險? 投資涉及風險 請參閱發售文件以了解風險因素等資料 1. 投資風險 本基金投資組合的價值可能因下文任何主要風險因素而下跌, 故閣下在本基金的投資可能蒙受損失 本基金為一項投資基金, 不屬銀行存款性質, 故不保證返還本金 2. 投資於股票及股票相關證券的風險 本基金於股本證券的投資須承受一般市場風險, 其價值可能因多項因素 ( 例如投資情緒 政治及經濟情況變化以及發行人特定因素 ) 而波動 本基金可投資於股票相關證券 ( 例如結構性票據 參與票據或股票掛鈎票據 ) 該等投資工具一般由經紀 投資銀行或公司發行, 並因而須承受發行人的無力償債或違責風險 如該等投資工具並無活躍市場, 可能會導致流動性風險 此外, 與其他直接投資於類似相關資產的基金相比, 投資於股票掛鈎證券可能會因股票相關證券附帶的費用而攤薄本基金的業績表現 上述情況可能會對本基金的每單位資產淨值構成不利影響 證券交易所一般有權暫停或限制任何在該交易所買賣的工具之買賣 政府或監管機構亦可實施可能影響金融市場的政策 暫停買賣可令投資經理或相關基金經理無法進行平倉, 因而使本基金造成損失, 並可能對本基金造成負面影響 3. 投資於特定國家附帶的風險 本基金的投資集中於歐洲市場, 因此其投資範圍較廣泛地投資於各個市場的基金為窄 本基金一般提供較少分散的投資, 因而被認為涉及較高風險 相對於投資組合更為多元化的基金, 本基金的價值可能較為波動 本基金的價值可能較易受到影響歐洲市場之不利經濟 政治 政策 外匯 流動性 稅務 法律或監管事件所影響 鑑於對歐元區內若干國家的主權債務風險的持續關注, 本基金於該地區的投資可能受到較高波動性 流動性 貨幣及違責風險所影響 任何不利事件 ( 例如某主權的信貸評級下降或歐盟成員撤出歐元區 ) 均可能對本基金的價值構成負面影響 4. 新興市場投資風險 本基金可能投資於在歐洲新興市場經營業務的發行人的證券 投資於新興市場或會涉及投資於較成熟市場不常有的額外風險以及特別考慮因素, 如流動性風險 貨幣風險 / 管制 政治及經濟不確定因素 法律及稅務風險 結算風險 託管風險, 且波幅很可能偏高 該等市場的高市場波動性及潛在結算困難亦可能導致在該等市場買賣的證券價格大幅波動, 並因而可能對本基金的價值造成不利影響 5. 投資於小型 中型公司附帶的風險 一般而言, 小型及中型公司的股票可能有較低流動性, 且其價格相對較大型公司的股價於面對不利經濟發展時會更為波動 風險包括經濟風險, 例如有關產品深度欠奉 地域分散有限 對業務週期的敏感度較高及組織風險 ( 例如集中管理及依賴股東及主要人員等 ) 較小型公司的股份可能較為難以買賣, 以致執行投資決定時的靈活性較低, 並有時可能須承擔較高成本 3

40 6. 衍生工具及流動性附帶的風險 7. 對手方風險 8. 貨幣風險 霸菱歐洲基金 本基金可能會投資於衍生工具, 以作投資用途或有效管理投資組合 與衍生工具相關的風險包括對手方 / 信貸風險 流動性風險 估值風險 波動性風險及場外交易風險 衍生工具的槓桿元素 / 組成部分可導致損失遠大於本基金投資於衍生工具的金額 投資於衍生工具可導致本基金蒙受重大損失的高風險 此外, 概不保證本基金為對沖運用衍生工具將會完全有效, 在不利情況下, 如運用衍生工具無效, 本基金可能會蒙受重大損失 若干衍生工具可能不設交投活躍的市場, 故購買及銷售持股可能較為需時 本基金亦可能須面對難以按衍生工具的公平市場價格出售的問題 對手方風險為組織未能就債券或其他交易或買賣支付款項的風險 在對手方未能及時履行責任及本基金被延遲或阻止行使其於組合投資的權利的前提下, 本基金持倉的價值可能會下跌 失去收入及 或產生與維護其權利有關的成本 本基金的相關投資可能以本基金的基本貨幣以外的貨幣計值 此外, 本基金的單位類別可指定以本基金的基本貨幣以外的貨幣結算 本基金的資產淨值可能因該等貨幣與基本貨幣之間的匯率波動及匯率管制的變動而受到不利影響 9. 從資本扣除的費用 / 與分派有關的風險 本基金普遍會 ( 根據愛爾蘭會計指引 ) 自收入中支付其管理費及其他費用及開支 然而, 如沒有充足收入, 基金經理可從資本中, 或從已扣除變現及未變現資本虧損後的變現及未變現資本收益中支付其部分或全部管理費及其他費用及開支 如管理費及其他費用及開支乃自資本而非所產生的收入中扣除, 則增長可能會受到限制, 並可能會侵蝕資本 本基金普遍會自盈餘收入淨額中支付股息 然而, 基金經理亦可能會就其認為維持合理分派水平而言合適的情況下, 在扣除變現及未變現資本虧損後, 分派部分資本收益 根據香港監管披露規定, 自未變現資本收益中支付分派相當於從資本中作出分派, 而在該等情況下作出的分派則相當於從投資者的原有投資或自該原有投資應佔的任何資本收益中退還或提取部分款項 任何與以未變現資本收益支付股息有關的分派 ( 即指實際上從資本中支付股息 ) 或會令本基金的每單位資產淨值即時減少 4

41 霸菱歐洲基金 本基金過往的業績表現如何? 霸菱歐洲基金 - A 類別美元收益 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% -40.0% -50.0% -60.0% 40.6% 25.3% 26.8% 32.4% 5.6% 4.2% -8.8% -5.7% -19.4% -49.7% 資料來源..霸菱 往績並非預測日後業績表現的指標 投資者未必能取回全部投資本金 基金業績表現以曆年末的資產淨值作為比較基礎, 股息會滾存再作投資 上述數據顯示 A 類別美元收益總值在有關曆年內的升跌幅度 業績表現以美元計算, 當中反映出基金的持續費用, 但不包括基金可能向閣下收取的認購費及贖回費 由於 A 類別美元收益為在香港獲認可的零售單位類別並以本基金的基本貨幣計值, 故獲選為代表單位類別 基金發行日 :1987 年 4 月 21 日 A 類別美元收益發行日 年 4 月 21 日 有否提供保證? 本基金並不提供任何保證 閣下未必能全數取回投資金額 5

42 霸菱歐洲基金 有什麼費用及收費? 閣下應支付的收費 當進行本基金單位交易時, 閣下可能須支付下列費用 費用 支付金額 認購費 ( 初期手續費 ) A 類別單位..每單位資產淨值之最多 5% C 類別及 I 類別單位..無 轉換費 ( 轉換費用 ) 無 贖回費 ( 贖回費用 ) A 類別及 I 類別單位..無 * C 類別單位..每單位資產淨值之最多 1% 本基金應支付的持續費用 以下費用將從本基金中支付 該等費用將使閣下的投資回報減少 年率 ( 佔本基金資產淨值 ( 資產淨值 ) 的百分比 ) 如另有載述, 則不在此限 管理費 A 類別及 C 類別單位..類別應佔本基金資產淨值的 1.25% I 類別單位..類別應佔本基金資產淨值的 0.75% 保管人費用 表現費 包含在行政管理 保管及營運費 不適用 行政管理 保管及營運費 ** A 類別及 C 類別單位..類別應佔本基金資產淨值的 0.45% I 類別單位..類別應佔本基金資產淨值的 0.25% 交易費用 分銷商費用 按一般商業費率 A 類別及 I 類別單位..不適用 C 類別單位..類別應佔本基金資產淨值的 1% * 如有徵收任何贖回費用或贖回費用增加至發售文件列明的特定允許最高水平, 本基金將會向投資者發出最少 1 個月通知 ** 行政管理 保管及營運費包括行政管理人及保管人的合計費用及開支, 以及若干其他費用及經常性開支 請參閱發售文件以了解進一步詳情 其他費用 當進行本基金單位交易時, 閣下可能須支付其他費用 本基金亦將須承擔與其直接相關的費用, 而該等費用列明於發售文件中 6

43 霸菱歐洲基金 其他資料 當香港代表霸菱資產管理 ( 亞洲 ) 有限公司於香港營業日 1 ( 亦為交易日 ) 下午五時正 ( 香港時間 ) 或之前, 或基金經理於交易日中午十二時正 ( 愛爾蘭時間 ) 或之前收妥閣下的要求後, 閣下一般按本基金下一個釐定的相關單位類別每單位資產淨值認購及贖回單位 交易日指愛爾蘭及英國的銀行均營業的每個營業日 ( 不包括星期六或星期日 ) 閣下在下達認購 贖回及 / 或轉換指示前, 請聯絡閣下的分銷商核實有關分銷商的內部最後交易時間 ( 其可能較本基金的最後交易時間為早 ) 本基金將就各交易日計算資產淨值, 而相關單位類別的單位價格則在各交易日公佈, 並可於 2 查閱 過去 12 個月的股息 ( 即自可分派收入及資本淨額中支付的相關金額 ) 組成可透過香港代表的網站 2 取得, 或可向香港代表索取 投資者可於 2 取得其他向香港投資者銷售的單位類別之過往業績資料 重要資料 閣下如有疑問, 應尋求專業意見 證監會對本概要的內容概不承擔責任, 對其準確性或完整性亦不作出任何陳述 1 香港營業日 指香港銀行開放正常營業的日子 ( 星期六或星期日除外 ), 惟倘因懸掛 8 號風球 黑色暴雨警告或其他類似事件, 使香港銀行於任何日子開放營業的時間縮短, 則該日並非香港營業日, 除非基金經理及保管人另行決定或基金經理及保管人可能釐定的該等日子 2 該網站並未經證監會審閱, 並可能載有未經證監會認可的基金的資料 7

44 PRODUCT KEY FACTS Barings International Umbrella Fund Barings Europa Fund April 2018 Baring International Fund Managers (Ireland) Limited This statement provides you with key information about Barings Europa Fund (the Fund ). This statement is a part of the offering document. You should not invest in the Fund based on this statement alone. QUICK FACTS Fund Manager Investment Manager Depositary Ongoing charges over a year: Baring International Fund Managers (Ireland) Limited (the Manager ) Baring Asset Management Limited (internal delegation, in the United Kingdom) Northern Trust Fiduciary Services (Ireland) Limited Distribution Unit Classes (Inc) Accumulation Unit Classes (Acc) Class A USD Inc: 1.70% # Class A EUR Acc: 1.70%^ Class A EUR Inc: 1.70% # Class I USD Acc: 1.00%^ Class C USD Inc: 2.70% # Class I EUR Acc: 1.00% + Class C EUR Inc: 2.70% # Class I GBP Inc: 1.00%^ # As the fee structure of the Fund has been changed with effect from 30 April 2018, the ongoing charges figure is an estimate only and is calculated based on the estimated annual ongoing expenses chargeable to the respective unit class expressed as a percentage of the average net asset value of the respective unit class for the same period. The actual figures may vary from year to year. ^ The ongoing charges figures for these unlaunched unit classes are estimates only and are based on ongoing charges figure for a reference unit class which has a similar fee structure. The actual figures may be different upon actual operation of the unit classes and the figures may vary from year to year. + As this unit class has been fully redeemed, the ongoing charges figure is an estimate only and is based on ongoing charges figure for a reference unit class which has a similar fee structure. The actual figure may be different upon actual operation of the unit class and the figure may vary from year to year. Dealing frequency Base currency Dividend policy* Financial year end Daily USD For Distribution Unit Classes (Inc), dividends, if declared, will be paid. For Accumulation Unit Classes (Acc), no dividend will be paid. * The Fund normally pays dividends out of surplus net income. However, the Manager may also distribute such part of any capital gains less realised and unrealised capital losses as, in its opinion, is appropriate to maintain a satisfactory level of distribution. Payment of distributions out of unrealised capital gains amount to distribution out of capital under Hong Kong regulatory disclosure requirements and payment of distributions under such circumstances may result in an immediate reduction of the Fund s net asset value per Unit. 30 April 1

45 Min. investment: Initial min. investment: Subsequent min. investment: Distribution Unit Classes (Inc) Class A USD Inc USD5,000 USD500 Class A EUR Inc EUR3,500 EUR500 Class C USD Inc USD5,000 USD500 Class C EUR Inc EUR3,500 EUR500 Class I GBP Inc GBP10,000,000 GBP500 Accumulation Unit Classes (Acc) Class A EUR Acc EUR3,500 EUR500 Class I USD Acc USD10,000,000 USD500 Class I EUR Acc EUR10,000,000 EUR500 Barings Europa Fund WHAT IS THIS PRODUCT? Barings Europa Fund is a sub-fund of Barings International Umbrella Fund, which is a unit trust domiciled in Ireland. Its home regulator is the Central Bank of Ireland. OBJECTIVES AND INVESTMENT STRATEGY Objectives To achieve long-term capital growth in the value of assets by investing in companies in Europe (including the United Kingdom). Strategy The Fund will invest at least 70% of its total assets at any one time in equities and equity-related securities (such as structured notes, participation notes or equity-linked notes) of companies incorporated in, or exercising the predominant part of their economic activity in, any European country (including the United Kingdom), or quoted or traded on the stock exchanges in those countries. Within Europe, the portfolio will be balanced according to the Manager s assessment of investment prospects for individual countries. There is no limit to the proportion of the Fund which may be invested in any one country. For this purpose, total assets exclude cash and ancillary liquidities. The Fund will invest on a continual basis at least 75% of its assets into qualifying securities (which include equity securities issued by companies where the head office is in the European Union (EU) or a European Economic Area (EEA) Country (other than Liechtenstein) and subject to corporate income tax under normal conditions). The Fund may also invest in collective investment schemes in accordance with the requirements of the Central Bank of Ireland up to a maximum of 10% of the Fund s net asset value. Under exceptional circumstances (e.g. economic conditions, political risks or world events, high downside risks during uncertainties, or closure of relevant market(s) due to unexpected events, such as political unrest, war or bankruptcy of large financial institutions), the Fund may temporarily invest up to 100% of its total assets in cash, deposits, treasury bills, government bonds or short-term money market instruments or have substantial holdings in cash and cash equivalents. The Fund may use derivatives (including warrants, futures, options, currency forward contracts (including non-deliverable forwards), swap agreements and contracts for difference) for efficient portfolio management (including hedging) or investment purposes. Although derivatives may be used, they will not be used extensively for investment purposes. The derivative techniques may include, but are not limited to: (i) hedging a currency exposure; (ii) using derivatives as a substitute for taking a position in the underlying asset where the Investment Manager feels that a derivative exposure to the underlying asset represents better value than a direct exposure; (iii) tailoring the Fund s interest rate exposure to the Investment Manager s outlook for interest rates; and/or (iv) gaining an exposure to the composition and performance of a particular index which are consistent with the investment objective and policies of the Fund. 2

46 Barings Europa Fund WHAT ARE THE KEY RISKS? Investment involves risks. Please refer to the offering document for details including the risk factors. 1. Investment risk The Fund s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Fund may suffer losses. The Fund is an investment fund and is not in the nature of a bank deposit. There is no guarantee of repayment of principal. 2. Risks of investment in equities and equity-related securities The Fund s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors. The Fund may invest in equity-related securities such as structured notes, participation notes or equity-linked notes. These are usually issued by a broker, an investment bank or a company and are therefore subject to the risk of insolvency or default of the issuer. If there is no active market in these instruments, this may lead to liquidity risk. Further, investment in equity-linked securities may lead to dilution of performance of the Fund when compared to the other funds which invest directly in similar underlying assets due to fees embedded in the equity-related securities. The aforesaid circumstances may adversely affect the net asset value per unit of the Fund. Securities exchanges typically have the right to suspend or limit trading in any instrument traded on that exchange. Governments or the regulators may also implement policies that may affect the financial markets. A suspension could render it impossible for the Investment Manager or an underlying fund manager to liquidate positions and thereby expose the Fund to losses and may have a negative impact on the Fund. 3. Risks associated with investment in specific countries The Fund s investments are concentrated in the European markets and therefore has a narrower focus than those funds which invest broadly across markets. The Fund typically offers less diversification and therefore is considered to be more risky. The value of the Fund may be more volatile than that of a fund having a more diverse portfolio of investments. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the European markets. In light of ongoing concerns on the sovereign debt risk of certain countries within the Eurozone, the Fund s investments in the region may be subject to higher volatility, liquidity, currency and default risks. Any adverse events, such as credit downgrade of a sovereign or exit of EU members from the Eurozone, may have a negative impact on the value of the Fund. 4. Emerging market investment risk The Fund may invest in securities of issuers operating in emerging markets of Europe. Investing in emerging market may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility. High market volatility and potential settlement difficulties in such markets may also result in significant fluctuations in the prices of the securities traded on such markets and thereby may adversely affect the value of the Fund. 5. Risks associated with small-capitalisation / mid-capitalisation companies The stock of small-capitalisation and mid-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general. Risks include economic risks, such as lack of product depth, limited geographical diversification, increased sensitivity to the business cycle and organisational risk, such as concentration of management and shareholders and key-person dependence. Shares in smaller companies can be more difficult to buy and sell, resulting in less flexibility, and sometimes higher costs, in implementing investment decisions. 3

47 6. Risks associated with derivatives and liquidity Barings Europa Fund The Fund may have exposure to derivatives for investment purposes or for efficient portfolio management. Risks associated with derivatives include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The leverage element/component of a derivative can result in a loss significantly greater than the amount invested in the derivative by the Fund. Exposure to derivatives may lead to a high risk of significant loss by the Fund. Furthermore, there is no guarantee that the Fund s use of derivatives for hedging will be entirely effective and in adverse situations, where the use of derivatives becomes ineffective, the Fund may suffer significant loss. There may not be active market for certain derivatives so that the purchase and sale of holding may take longer. The Fund may also encounter difficulties in disposing of derivatives at their fair market price. 7. Counterparty risk Counterparty risk is the risk that an organization does not pay out on a bond or other trade or transaction when it is supposed to. If a counterparty fails to honour its obligations in a timely manner and the Fund is delayed or prevented from exercising its rights with respect to the investments in its portfolio, it may experience a decline in the value of its position, lose income and/or incur costs associated with asserting its rights. 8. Currency risk The underlying investments of the Fund may be denominated in currencies other than the base currency of the Fund. Also, a class of units of the Fund may be designated in a currency other than the base currency of the Fund. The net asset value of the Fund may be affected unfavourably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls. 9. Charges deducted from capital/risks relating to distribution The Fund normally pays its management fee and other fees and expenses out of income (in accordance with Irish accounting guidelines). However, where insufficient income is available, the Manager may pay some or all of its management fee and other fees and expenses out of capital and out of both realised and unrealised capital gains less realised and unrealised capital losses. Where the management fee and other fees and expenses are deducted from capital rather than income generated, this may constrain growth and could erode capital. The Fund normally pays dividends out of surplus net income. However, the Manager may also distribute such part of any capital gains less realised and unrealised capital losses as, in its opinion, is appropriate to maintain a satisfactory level of distribution. Payment of distributions out of unrealised capital gains amounts to distribution out of capital under Hong Kong regulatory disclosure requirements and that payment of distributions under such circumstances amounts to a return or withdrawal of part of an investor s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of unrealised capital gains as dividends (which means effectively paying dividend out of capital) may result in an immediate reduction of the Fund s net asset value per unit. 4

48 Barings Europa Fund HOW HAS THE FUND PERFORMED? Barings Europa Fund - Class A USD Inc 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% -40.0% -50.0% -60.0% 40.6% 25.3% 26.8% 32.4% 5.6% 4.2% -8.8% -5.7% -19.4% -49.7% Source: Barings Past performance information is not indicative of future performance. Investors may not get back the full amount invested. The computation basis of the performance is based on the calendar year end, NAV-To-NAV, with dividend reinvested. These figures show by how much the Class A USD Inc increased or decreased in value during the calendar year being shown. Performance data has been calculated in US dollars, including ongoing charges and excluding subscription fee and redemption fee you might have to pay. Class A USD Inc is selected as representative unit class as it is a retail unit class authorised in Hong Kong and is denominated in the Fund s base currency. Fund launch date: 21 April 1987 Class A USD Inc launch date: 21 April 1987 IS THERE ANY GUARANTEE? The Fund does not have any guarantees. You may not get back the full amount of money you invest. 5

49 Barings Europa Fund WHAT ARE THE FEES AND CHARGES? Charges which may be payable by you You may have to pay the following fees when dealing in the units of the Fund. Fee Subscription fee (Preliminary charge) Switching fee (Conversion charge) Redemption fee (Redemption charge) What you pay Class A Units: up to 5% of the net asset value per unit Class C and Class I Units: Nil Nil Class A and Class I Units: Nil* Class C Units: up to 1% of the net asset value per unit Ongoing fees payable by the Fund The following expenses will be paid out of the Fund. They affect you because they reduce the return you get on your investments. Annual rate (as a % of the Fund s net asset value ( NAV )), unless otherwise specified Management fee Depositary fee Performance fee Administration, Depositary and Operating Fee** Transaction fee Distributor fee Class A and Class C Units: 1.25% of the Fund s NAV attributable to the Class Class I Units: 0.75% of the Fund s NAV attributable to the Class Included in the Administration, Depositary and Operating Fee Not applicable Class A and Class C Units: 0.45% of the Fund s NAV attributable to the Class Class I Units: 0.25% of the Fund s NAV attributable to the Class At normal commercial rates Class A and Class I Units: Not applicable Class C Units: 1% of the Fund s NAV attributable to the Class * At least 1 month s notice will be given to investors should any redemption fees be charged or increased up to the specified permitted maximum level as set out in the offering document. ** The Administration, Depositary and Operating Fee includes the aggregate fees and expenses of the Administrator and Depositary and certain other fees and ongoing expenses. Please refer to the offering document for further details. Other fees You may have to pay other fees when dealing in the units of the Fund. The Fund will also bear the costs which are directly attributable to it, as set out in the offering document. 6

50 ADDITIONAL INFORMATION Barings Europa Fund You generally subscribe and redeem units at the Fund s next-determined NAV per unit attributable to the relevant Unit Class after your request is received in good order by Baring Asset Management (Asia) Limited, our Hong Kong Representative, by 5 p.m. Hong Kong time on a Hong Kong Business Day 1 which is also a Dealing Day or the Manager by 12 noon Irish time on a Dealing Day. Dealing Days are every business day on which banks in both Ireland and the United Kingdom are open for business (excluding Saturday or Sunday). Before placing your subscription, redemption and/or conversion orders, please check with your distributor for the distributor s internal dealing deadline (which may be earlier than the Fund s dealing deadline). The NAV of the Fund is calculated and the prices of unit of the relevant unit classes are published for each Dealing Day, and are available online at 2. The composition of the dividends (i.e. the relative amounts paid out of net distributable income and capital) for the last 12 months can be obtained either through the Hong Kong Representative s website at 2 or from the Hong Kong Representative on request. Investors may obtain the past performance information of other unit classes offered to Hong Kong investors from 2. IMPORTANT If you are in doubt, you should seek professional advice. The SFC takes no responsibility for the contents of this statement and makes no representation as to its accuracy or completeness. 1 Hong Kong Business Day means a day (other than a Saturday or Sunday) on which banks in Hong Kong are open for normal business, provided that where as a result of a number 8 typhoon signal, black rainstorm warning or other similar event, the period during which banks in Hong Kong are open on any day is reduced, such day shall not be a Hong Kong Business Day unless the Manager and the Depositary determine otherwise or such other day or days as the Manager and the Depositary may determine. 2 This website has not been reviewed by the SFC and it may contain information on funds which are not authorised by the SFC. 7

51 產品資料概覽 霸菱國際傘子基金霸菱香港中國基金 2018 年 4 月 Baring International Fund Managers (Ireland) Limited 本概覽提供有關霸菱香港中國基金 ( 本基金 ) 的重要資料 本概覽是發售文件的一部分 閣下切勿單憑本概覽作出投資於本基金的決定 資料便覽 基金經理 Baring International Fund Managers (Ireland) Limited( 基金經理 ) 投資經理 Baring Asset Management Limited( 內部委派, 英國 ) 副投資經理 霸菱資產管理 ( 亞洲 ) 有限公司 ( 內部委派, 香港 ) 保管人 全年經常性開支比率 : Northern Trust Fiduciary Services (Ireland) Limited 分派單位類別 ( 收益 ) 累積單位類別 ( 累積 ) A 類別美元收益 : 1.70% # A 類別美元累積 : 1.70% # A 類別歐元收益 : 1.70% # A 類別歐元累積 : 1.70%^ A 類別英鎊收益 : 1.70% # I 類別美元累積 : 1.00% # A 類別港元收益 : 1.70% # I 類別歐元累積 : 1.00%^ C 類別美元收益 : 2.70% # I 類別英鎊累積 : 1.00% # C 類別歐元收益 : 2.70% # # 由於本基金的收費結構由 2018 年 4 月 30 日起已更改, 故經常性開支比率僅為估計數字, 乃根據各個單位類別應支付的估計年度經常性開支計算, 以各個單位類別於同一期間的平均資產淨值的百分比表示 實際比率每年均可能有所變動 ^ 此等尚未發行之單位類別之經常性開支比率僅為估計數字, 乃根據擁有類似收費結構的參考單位類別的經常性開支比率計算 在該等單位類別開始實際運作後, 實際經常性開支比率可能有別於估計數字, 及每年均可能有所變動 交易頻次基本貨幣股息政策 * 財政年度年結日 每日 美元 就分派單位類別 ( 收益 ) 而言, 如有宣派股息, 將會派發股息 就累積單位類別 ( 累積 ) 而言, 將不會派發股息 * 本基金普遍會從盈餘收入淨額支付股息 然而, 基金經理亦可能會就其認為維持合理分派水平而言合適的情況下, 在扣除變現及未變現資本虧損後, 分派部分資本收益 根據香港監管披露規定, 自未變現資本收益中分派款項相當於從資本中作出分派 在該等情況下作出的分派款項或會令本基金的每單位資產淨值即時減少 4 月 30 日 1

52 最低投資額 : 首次最低投資額..其後最低投資額.. 霸菱香港中國基金 分派單位類別 ( 收益 ) A 類別美元收益 5,000 美元 500 美元 A 類別歐元收益 3,500 歐元 500 歐元 A 類別英鎊收益 2,500 英鎊 500 英鎊 A 類別港元收益 5,000 美元 (5,000 美元等值之港元 ) 500 美元 (500 美元等值之港元 ) C 類別美元收益 5,000 美元 500 美元 C 類別歐元收益 3,500 歐元 500 歐元 累積單位類別 ( 累積 ) A 類別美元累積 5,000 美元 500 美元 A 類別歐元累積 3,500 歐元 500 歐元 I 類別美元累積 10,000,000 美元 500 美元 I 類別歐元累積 10,000,000 歐元 500 歐元 I 類別英鎊累積 10,000,000 英鎊 500 英鎊 這是甚麼產品? 霸菱香港中國基金為霸菱國際傘子基金的子基金 霸菱國際傘子基金為設於愛爾蘭的單位信託基金 其成立地監管機構為愛爾蘭中央銀行 目標及投資策略 目標 透過投資於香港 中國及台灣, 在資產價值中達致長期資本增長 策略 本基金將在任何時候把其總資產至少 70% 直接投資於已在香港或中國 (i) 註冊成立, 或 (ii) 進行其主要經濟活動, 或 (iii) 在證券交易所掛牌或買賣的公司的股票或透過該等公司的股票相關證券 ( 例如結構性票據 參與票據 股票掛鈎票據或預託證券 ) 投資 就此而言, 總資產並不包括現金及輔助流動資金 投資經理亦可將其總資產最多 30% 投資於本基金主要地區 ( 包括但不限於台灣 ) 市場界別 貨幣或資產類別以外 就債務證券的投資而言, 本基金對相關債務證券的信貸評級並無任何特定規限或限制 基金經理將評估投資前景, 平衡投資組合的比例, 但可因應相關投資情況, 集中投資於基金經理認為屬香港或中國經濟支柱的行業的公司, 例如國際貿易 地產及建築 工程 電子或服務業 本基金亦可根據愛爾蘭中央銀行的規定, 將本基金的資產淨值最多 10% 投資於集體投資計劃 就投資於中國而言, 在任何時候均不可將本基金資產淨值多於 10% 直接或間接投資於中國 A 股及 B 股 預期此項投資將可透過經滬港通及深港通投資於在上海證券交易所及深圳證券交易所上市的中國 A 股直接作出, 或透過投資於其他合資格集體投資計劃或參與票據間接作出 在特殊情況下, 例如經濟狀況 政治風險或世界事件 不明朗情況下的較高下行風險或相關市場因突發事件 ( 例如政治動盪 戰爭或大型財務機構破產 ) 而關閉, 本基金可暫時將其高達 100% 的總資產投資於現金 存款 國庫債券 政府債券或短期貨幣市場工具, 或大額持有現金及現金等價物 本基金可運用衍生工具, 包括認股權證 期貨 期權 貨幣遠期合約 ( 包括不可交割遠期合約 ) 掉期協議及差價合約, 以作有效管理投資組合 ( 包括對沖 ) 或投資用途 儘管可運用衍生工具, 但不會廣泛運用該等衍生工具作投資用途 衍生工具技巧可能包括 ( 但不限於 )(i) 以對沖貨幣風險,(ii) 以在投資經理認為衍生工具投資於相關資產較直接投資更具價值時候, 使用衍生工具作為在相關資產持倉的替代,(iii) 以根據投資經理對利率的觀點而調整本基金的利率風險, 及 / 或 (iv) 以對符合本基金投資目標及政策的特定指數的成份及表現取得投資參與 2

53 霸菱香港中國基金 有什麼主要風險? 投資涉及風險 請參閱發售文件以了解風險因素等資料 1. 投資風險 本基金投資組合的價值可能因下文任何主要風險因素而下跌, 故閣下在本基金的投資可能蒙受損失 本基金為一項投資基金, 不屬銀行存款性質, 故不保證返還本金 2. 投資於股票及股票相關證券的風險 本基金於股本證券的投資須承受一般市場風險, 其價值可能因多項因素 ( 例如投資情緒 政治及經濟情況變化以及發行人特定因素 ) 而波動 本基金可投資於股票相關證券 ( 例如結構性票據 參與票據 股票掛鈎票據或預託證券 ) 該等投資工具一般由經紀 投資銀行或公司發行, 並因而須承受發行人的無力償債或違責風險 如該等投資工具並無活躍市場, 可能會導致流動性風險 此外, 與其他直接投資於類似相關資產的基金相比, 投資於股票掛鈎證券可能會因股票相關證券附帶的費用而攤薄本基金的業績表現 上述情況可能會對本基金的每單位資產淨值構成不利影響 證券交易所一般有權暫停或限制任何在該交易所買賣的工具之買賣 政府或監管機構亦可實施可能影響金融市場的政策 暫停買賣可令投資經理或相關基金經理無法進行平倉, 因而使本基金造成損失, 並可能對本基金造成負面影響 3. 新興市場投資風險 本基金可能投資於屬新興市場的中國公司 投資於新興市場或會涉及投資於較成熟市場不常有的額外風險以及特別考慮因素, 如流動性風險 貨幣風險 管制 政治及經濟不確定因素 法律及稅務風險 結算風險 託管風險, 且波幅很可能偏高 該等市場的高市場波動性及潛在結算困難亦可能導致在該等市場買賣的證券價格大幅波動, 並因而可能對本基金的價值造成不利影響 4. 投資於特定國家附帶的風險 本基金的投資可能集中於香港及中國市場 相對於投資組合更為多元化的基金, 本基金的價值可能較為波動 本基金的價值可能較易受到影響香港及中國市場之不利經濟 政治 政策 外匯 流動性 稅務 法律或監管事件所影響 5. 投資於小型 中型公司附帶的風險 一般而言, 小型及中型公司的股票可能有較低流動性, 且其價格相對較大型公司的股價於面對不利經濟發展時會更為波動 風險包括經濟風險, 例如有關產品深度欠奉 地域分散有限 對業務週期的敏感度較高及組織風險 ( 例如集中管理及依賴股東及主要人員等 ) 較小型公司的股份可能較為難以買賣, 以致執行投資決定時的靈活性較低, 並有時可能須承擔較高成本 6. 衍生工具附帶的風險 7. 流動性風險 本基金可能會投資於衍生工具, 以作投資用途或有效管理投資組合 與衍生工具相關的風險包括對手方 信貸風險 流動性風險 估值風險 波動性風險及場外交易風險 衍生工具的槓桿元素 組成部分可導致損失遠大於本基金投資於衍生工具的金額 投資於衍生工具可導致本基金蒙受重大損失的高風險 此外, 概不保證本基金為對沖運用衍生工具將會完全有效, 在不利情況下, 如運用衍生工具無效, 本基金可能會蒙受重大損失 新興市場的市場流動性可能較已發展市場的流動性為低, 故購買及銷售持股可能較為需時 本基金亦可能須面對難以按證券或衍生工具的公平市場價格出售的問題 3

54 8. 對手方風險 9. 貨幣風險 霸菱香港中國基金 對手方風險為組織未能就債券或其他交易或買賣支付款項的風險 在對手方未能及時履行責任及本基金被延遲或阻止行使其於組合投資的權利的前提下, 本基金持倉的價值可能會下跌 失去收入及 或產生與維護其權利有關的成本 本基金的相關投資可能以本基金的基本貨幣以外的貨幣計值 此外, 本基金的單位類別可指定以本基金的基本貨幣以外的貨幣結算 本基金的資產淨值可能因該等貨幣與基本貨幣之間的匯率波動及匯率管制的變動而受到不利影響 10. 從資本扣除的費用 / 與分派有關的風險 本基金普遍會 ( 根據愛爾蘭會計指引 ) 自收入中支付其管理費及其他費用及開支 然而, 如沒有充足收入, 基金經理可從資本中, 或從已扣除變現及未變現資本虧損後的變現及未變現資本收益中支付其部分或全部管理費及其他費用及開支 如管理費及其他費用及開支乃自資本而非所產生的收入中扣除, 則增長可能會受到限制, 並可能會侵蝕資本 本基金普遍會自盈餘收入淨額中支付股息 然而, 基金經理亦可能會就其認為維持合理分派水平而言合適的情況下, 在扣除變現及未變現資本虧損後, 分派部分資本收益 根據香港監管披露規定, 自未變現資本收益中支付分派相當於從資本中作出分派, 而在該等情況下作出的分派則相當於從投資者的原有投資或自該原有投資應佔的任何資本收益中退還或提取部分款項 任何與以未變現資本收益支付股息有關的分派 ( 即指實際上從資本中支付股息 ) 或會令本基金的每單位資產淨值即時減少 本基金過往的業績表現如何? 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% -20.0% -40.0% -60.0% -80.0% -54.2% 資料來源..霸菱 64.2% 往績並非預測日後業績表現的指標 投資者未必能取回全部投資本金 基金業績表現以曆年末的資產淨值作為比較基礎, 股息會滾存再作投資 上述數據顯示 A 類別美元收益總值在有關曆年內的升跌幅度 業績表現以美元計算, 當中反映出基金的持續費用, 但不包括基金可能向閣下收取的認購費及贖回費 由於 A 類別美元收益為在香港獲認可的零售單位類別並以本基金的基本貨幣計值, 故獲選為代表單位類別 基金發行日 :1982 年 12 月 3 日 2.1% -19.5% A 類別美元收益發行日 年 12 月 3 日 霸菱香港中國基金 - A 類別美元收益 12.3% 8.4% 5.1% -4.5% -4.1% 47.4%

55 霸菱香港中國基金 有否提供保證? 本基金並不提供任何保證 閣下未必能全數取回投資金額 有什麼費用及收費? 閣下應支付的收費 當進行本基金單位交易時, 閣下可能須支付下列費用 費用 支付金額 認購費 ( 初期手續費 ) A 類別單位..每單位資產淨值之最多 5% C 類別及 I 類別單位..無 轉換費 ( 轉換費用 ) 無 贖回費 ( 贖回費用 ) A 類別及 I 類別單位 : 無 * C 類別單位..每單位資產淨值之最多 1% 本基金應支付的持續費用 以下費用將從本基金中支付 該等費用將使閣下的投資回報減少 年率 ( 佔本基金資產淨值 ( 資產淨值 ) 的百分比 ) 如另有載述, 則不在此限 管理費 A 類別及 C 類別單位 : 類別應佔本基金資產淨值的 1.25% I 類別單位 : 類別應佔本基金資產淨值的 0.75% 保管人費用 表現費 包含在行政管理 保管及營運費 不適用 行政管理 保管及營運費 ** A 類別及 C 類別單位 : 類別應佔本基金資產淨值的 0.45% I 類別單位..類別應佔本基金資產淨值的 0.25% 交易費用 分銷商費用本基金會向分銷商支付分銷商費用 按一般商業費率 A 類別及 I 類別單位..不適用 C 類別單位 : 類別應佔本基金資產淨值的 1% * 如有徵收任何贖回費用或贖回費用增加至發售文件列明的特定允許最高水平, 本基金將會向投資者發出最少 1 個月通知 ** 行政管理 保管及營運費包括行政管理人及保管人的合計費用及開支, 以及若干其他費用及經常性開支 請參閱發售文件以了解進一步詳情 其他費用 當進行本基金單位交易時, 閣下可能須支付其他費用 本基金亦將須承擔與其直接相關的費用, 而該等費用列明於發售文件中 5

56 霸菱香港中國基金 其他資料 當香港代表霸菱資產管理 ( 亞洲 ) 有限公司於香港營業日 1 ( 亦為交易日 ) 下午五時正 ( 香港時間 ) 或之前, 或基金經理於交易日中午十二時正 ( 愛爾蘭時間 ) 或之前收妥閣下的要求後, 閣下一般按本基金下一個釐定的相關單位類別每單位資產淨值認購及贖回單位 交易日指愛爾蘭及英國的銀行均營業的每個營業日 ( 不包括星期六或星期日 ) 閣下在下達認購 贖回及 / 或轉換指示前, 請聯絡閣下的分銷商核實有關分銷商的內部最後交易時間 ( 其可能較本基金的最後交易時間為早 ) 本基金將就各交易日計算資產淨值, 而相關單位類別的單位價格則在各交易日公佈, 並可於 2 查閱 過去 12 個月的股息 ( 即自可分派收入及資本淨額中支付的相關金額 ) 組成可透過香港代表的網站 2 取得, 或可向香港代表索取 投資者可於 2 取得其他向香港投資者銷售的單位類別之過往業績資料 重要資料 閣下如有疑問, 應尋求專業意見 證監會對本概要的內容概不承擔責任, 對其準確性或完整性亦不作出任何陳述 1 香港營業日 指香港銀行開放正常營業的日子 ( 星期六或星期日除外 ), 惟倘因懸掛 8 號風球 黑色暴雨警告或其他類似事件, 使香港銀行於任何日子開放營業的時間縮短, 則該日並非香港營業日, 除非基金經理及保管人另行決定或基金經理及保管人可能釐定的該等日子 2 該網站並未經證監會審閱, 並可能載有未經證監會認可的基金的資料 6

57 PRODUCT KEY FACTS Barings International Umbrella Fund Barings Hong Kong China Fund April 2018 Baring International Fund Managers (Ireland) Limited This statement provides you with key information about Barings Hong Kong China Fund (the Fund ). This statement is a part of the offering document. You should not invest in the Fund based on this statement alone. QUICK FACTS Fund Manager Investment Manager Sub-Investment Manager Depositary Ongoing charges over a year: Baring International Fund Managers (Ireland) Limited (the Manager ) Baring Asset Management Limited (internal delegation, in the United Kingdom) Baring Asset Management (Asia) Limited (internal delegation, in Hong Kong) Northern Trust Fiduciary Services (Ireland) Limited Distribution Unit Classes (Inc) Accumulation Unit Classes (Acc) Class A USD Inc: 1.70% # Class A USD Acc: 1.70% # Class A EUR Inc: 1.70% # Class A EUR Acc: 1.70%^ Class A GBP Inc: 1.70% # Class I USD Acc: 1.00% # Class A HKD Inc: 1.70% # Class I EUR Acc: 1.00%^ Class C USD Inc: 2.70% # Class I GBP Acc: 1.00% # Class C EUR Inc: 2.70% # # As the fee structure of the Fund has been changed with effect from 30 April 2018, the ongoing charges figure is an estimate only and is calculated based on the estimated annual ongoing expenses chargeable to the respective unit class expressed as a percentage of the average net asset value of the respective unit class for the same period. The actual figures may vary from year to year. ^ The ongoing charges figures for these unlaunched unit classes are estimates only and are based on ongoing charges figure for a reference unit class which has a similar fee structure.the actual figures may be different upon actual operation of the unit classes and the figures may vary from year to year. Dealing frequency Base currency Dividend policy* Financial year end Daily USD For Distribution Unit Classes (Inc), dividends, if declared, will be paid. For Accumulation Unit Classes (Acc), no dividend will be paid. * The Fund normally pays dividends out of surplus net income. However, the Manager may also distribute such part of any capital gains less realised and unrealised capital losses as, in its opinion, is appropriate to maintain a satisfactory level of distribution. Payment of distributions out of unrealised capital gains amounts to distribution out of capital under Hong Kong regulatory disclosure requirements and payment of distributions under such circumstances may result in an immediate reduction of the Fund s net asset value per unit. 30 April 1

58 Barings Hong Kong China Fund Min. investment: Initial min. investment: Subsequent min. investment: Distribution Unit Classes (Inc) Class A USD Inc USD5,000 USD500 Class A EUR Inc EUR3,500 EUR500 Class A GBP Inc GBP2,500 GBP500 Class A HKD Inc USD5,000 (HKD equivalent of USD5,000) USD500 (HKD equivalent of USD500) Class C USD Inc USD5,000 USD500 Class C EUR Inc EUR3,500 EUR500 Accumulation Unit Classes (Acc) Class A USD Acc USD5,000 USD500 Class A EUR Acc EUR3,500 EUR500 Class I USD Acc USD10,000,000 USD500 Class I EUR Acc EUR10,000,000 EUR500 Class I GBP Acc GBP10,000,000 GBP500 WHAT IS THIS PRODUCT? Barings Hong Kong China Fund is a sub-fund of Barings International Umbrella Fund, which is a unit trust domiciled in Ireland. Its home regulator is the Central Bank of Ireland. OBJECTIVES AND INVESTMENT STRATEGY Objectives To achieve long-term capital growth in the value of assets by investing in Hong Kong, China and Taiwan. Strategy The Fund will invest at least 70% of its total assets at any one time, either directly in equities or through equity-related securities (such as structured notes, participation notes, equity-linked notes or depositary receipts) of companies (i) incorporated, or (ii) exercising the predominant part of their economic activity, or (iii) quoted or traded on the stock exchanges in markets in Hong Kong or China. For this purpose, total assets exclude cash and ancillary liquidities. The Investment Manager may also invest up to 30% of its total assets outside the fund s principal geographies (including but not limited to Taiwan), market sectors, currency or asset classes. With regard to investment in debt securities, the Fund does not have any specific restrictions or limits on the credit rating of the underlying debt securities. The portfolio will be balanced according to the Manager s assessment of investment prospects but may, depending upon underlying investment conditions, emphasise investment in companies operating in those sectors of the Hong Kong or China economies that, in the Manager s opinion, provide the determinants for Hong Kong s or China s economic growth such as those involved in international trade, property and construction activity, engineering, electronics or the service sectors. The Fund may also invest in collective investment schemes in accordance with the requirements of the Central Bank of Ireland up to a maximum of 10% of the net asset value of the Fund. With regard to investment in China, no more than 10% of the Fund s net asset value may at any one time be invested directly or indirectly in China A shares and B shares. It is anticipated that this exposure will be obtained either directly through investment in China A shares listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange via the Shanghai Hong Kong Stock Connect Scheme and Shenzhen Hong Kong Stock Connect Scheme or indirectly through investment in other eligible collective investment schemes or participation notes. Under exceptional circumstances (e.g. economic conditions, political risks or world events, high downside risks during uncertainties, or closure of relevant market(s) due to unexpected events, such as political unrest, war or bankruptcy of large financial institutions), the Fund may temporarily invest up to 100% of its total assets in cash, deposits, treasury bills, government bonds or short-term money market instruments or have substantial holdings in cash and cash equivalents. The Fund may use derivatives (including warrants, futures, options, currency forward contracts (including non-deliverable forwards), swap agreements and contracts for difference) for efficient portfolio management (including hedging) or investment purposes. Although derivatives may be used, they will not be used extensively for investment purposes. The derivative techniques may include, but are not limited to: (i) hedging a currency exposure; (ii) using derivatives as a substitute for taking a position in the underlying asset where the Investment Manager feels that a derivative exposure to the underlying asset represents better value than a direct exposure; (iii) tailoring the Fund s interest rate exposure to the Investment Manager s outlook for interest rates; and/or (iv) gaining an exposure to the composition and performance of a particular index which are consistent with the investment objective and policies of the Fund. 2

59 Barings Hong Kong China Fund WHAT ARE THE KEY RISKS? Investment involves risks. Please refer to the offering document for details including the risk factors. 1. Investment risk The Fund s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Fund may suffer losses. The Fund is an investment fund and is not in the nature of a bank deposit. There is no guarantee of repayment of principal. 2. Risks of investment in equities and equity-related securities The Fund s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors. The Fund may invest in equity-related securities such as structured notes, participation notes, equity-linked notes or depositary receipts. These are usually issued by a broker, an investment bank or a company and are therefore subject to the risk of insolvency or default of the issuer. If there is no active market in these instruments, this may lead to liquidity risk. Further, investment in equity-linked securities may lead to dilution of performance of the Fund when compared to the other funds which invest directly in similar underlying assets due to fees embedded in the equityrelated securities. The aforesaid circumstances may adversely affect the net asset value per unit of the Fund. Securities exchanges typically have the right to suspend or limit trading in any instrument traded on that exchange. Governments or the regulators may also implement policies that may affect the financial markets. A suspension could render it impossible for the Investment Manager or an underlying fund manager to liquidate positions and thereby expose the Fund to losses and may have a negative impact on the Fund. 3. Emerging market investment risk The Fund may invest in companies in China, which is an emerging market. Investing in emerging market may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility. High market volatility and potential settlement difficulties in such market may also result in significant fluctuations in the prices of the securities traded on such market and thereby may adversely affect the value of the Fund. 4. Risks associated with investment in specific countries The Fund s investment may be concentrated in the Hong Kong and China markets. The value of the Fund may be more volatile than that of a fund having a more diverse portfolio of investments. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the Hong Kong and China markets. 5. Risks associated with small-capitalisation / mid-capitalisation companies The stock of small-capitalisation and mid-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general. Risks include economic risks, such as lack of product depth, limited geographical diversification, increased sensitivity to the business cycle and organisational risk, such as concentration of management and shareholders and key-person dependence. Shares in smaller companies can be more difficult to buy and sell, resulting in less flexibility, and sometimes higher costs, in implementing investment decisions. 6. Risks associated with derivatives The Fund may have exposure to derivatives for investment purposes or for efficient portfolio management. Risks associated with derivatives include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-thecounter transaction risk. The leverage element/component of a derivative can result in a loss significantly greater than the amount invested in the derivative by the Fund. Exposure to derivatives may lead to a high risk of significant loss by the Fund. Furthermore, there is no guarantee that the Fund s use of derivatives for hedging will be entirely effective and in adverse situations, where the use of derivatives becomes ineffective, the Fund may suffer significant loss. 7. Liquidity risk Market liquidity in the emerging markets may be lower than the more developed markets so that the purchase and sale of holding may take longer. The Fund may also encounter difficulties in disposing of securities or derivatives at their fair market price. 3

60 8. Counterparty risk Barings Hong Kong China Fund Counterparty risk is the risk that an organization does not pay out on a bond or other trade or transaction when it is supposed to. If a counterparty fails to honour its obligations in a timely manner and the Fund is delayed or prevented from exercising its rights with respect to the investments in its portfolio, it may experience a decline in the value of its position, lose income and/or incur costs associated with asserting its rights. 9. Currency risk The underlying investments of the Fund may be denominated in currencies other than the base currency of the Fund. Also, a class of units of the Fund may be designated in a currency other than the base currency of the Fund. The net asset value of the Fund may be affected unfavourably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls. 10. Charges deducted from capital/risks relating to distribution The Fund normally pays its management fee and other fees and expenses out of income (in accordance with Irish accounting guidelines). However, where insufficient income is available, the Manager may pay some or all of its management fee and other fees and expenses out of capital and out of both realised and unrealised capital gains less realised and unrealised capital losses. Where the management fee and other fees and expenses are deducted from capital rather than income generated, this may constrain growth and could erode capital. The Fund normally pays dividends out of surplus net income. However, the Manager may also distribute such part of any capital gains less realised and unrealised capital losses as, in its opinion, is appropriate to maintain a satisfactory level of distribution. Payment of distributions out of unrealised capital gains amounts to distribution out of capital under Hong Kong regulatory disclosure requirements and that payment of distributions under such circumstances amounts to a return or withdrawal of part of an investor s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of unrealised capital gains as dividends (which means effectively paying dividend out of capital) may result in an immediate reduction of the Fund s net asset value per unit. HOW HAS THE FUND PERFORMED? Barings Hong Kong China Fund - Class A USD Inc 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% -20.0% -40.0% -60.0% -80.0% 64.2% 47.4% 2.1% 12.3% 8.4% 5.1% -4.5% -4.1% -19.5% -54.2% Source: Barings Past performance information is not indicative of future performance. Investors may not get back the full amount invested. The computation basis of the performance is based on the calendar year end, NAV-To-NAV, with dividend reinvested. These figures show by how much the Class A USD Inc increased or decreased in value during the calendar year being shown. Performance data has been calculated in US dollars, including ongoing charges and excluding subscription fee and redemption fee you might have to pay. Class A USD Inc is selected as representative unit class as it is a retail unit class authorised in Hong Kong and is denominated in the Fund s base currency. Fund launch date: 03 December 1982 Class A USD Inc launch date: 03 December

61 Barings Hong Kong China Fund IS THERE ANY GUARANTEE? The Fund does not have any guarantees. You may not get back the full amount of money you invest. WHAT ARE THE FEES AND CHARGES? Charges which may be payable by you You may have to pay the following fees when dealing in the units of the Fund. Fee Subscription fee (Preliminary charge) Switching fee (Conversion charge) Redemption fee (Redemption charge) What you pay Class A Units: up to 5% of the net asset value per unit Class C and Class I Units: Nil Nil Class A and Class I Units: Nil* Class C Units: up to 1% of the net asset value per unit Ongoing fees payable by the Fund The following expenses will be paid out of the Fund. They affect you because they reduce the return you get on your investments. Annual rate (as a % of the Fund s net asset value ( NAV )), unless otherwise specified Management fee Depositary fee Performance fee Administration, Depositary and Operating Fee** Transaction fee Distributor fee The Fund pays a distribution fee to the Distributor. Class A and Class C Units: 1.25% of the Fund s NAV attributable to the Class Class I Units: 0.75% of the Fund s NAV attributable to the Class Included in the Administration, Depositary and Operating Fee Not applicable Class A and Class C Units: 0.45% of the Fund s NAV attributable to the Class Class I Units: 0.25% of the Fund s NAV attributable to the Class At normal commercial rates Class A and Class I Units: Not applicable Class C Units: 1% of the Fund s NAV attributable to the Class * At least 1 month s notice will be given to investors should any redemption fees be charged or increased up to the specified permitted maximum level as set out in the offering document. ** The Administration, Depositary and Operating Fee includes the aggregate fees and expenses of the Administrator and Depositary and certain other fees and ongoing expenses. Please refer to the offering document for further details. Other fees You may have to pay other fees when dealing in the units of the Fund. The Fund will also bear the costs which are directly attributable to it, as set out in the offering document. 5

62 ADDITIONAL INFORMATION Barings Hong Kong China Fund You generally subscribe and redeem units at the Fund s next-determined NAV per unit attributable to the relevant unit class after your request is received in good order by Baring Asset Management (Asia) Limited, our Hong Kong Representative, by 5 p.m. Hong Kong time on a Hong Kong Business Day 1 which is also a Dealing Day or the Manager by 12 noon Irish time on a Dealing Day. Dealing Days are every business day on which banks in both Ireland and the United Kingdom are open for business (excluding Saturday or Sunday). Before placing your subscription, redemption and/or conversion orders, please check with your distributor for the distributor s internal dealing deadline (which may be earlier than the Fund s dealing deadline). The NAV of the Fund is calculated and the prices of unit of the relevant unit class are published for each Dealing Day, and are available online at 2. The composition of the dividends (i.e. the relative amounts paid out of net distributable income and capital) for the last 12 months can be obtained either through the Hong Kong Representative s website at 2 or from the Hong Kong Representative on request. Investors may obtain the past performance information of other unit classes offered to Hong Kong investors from 2. IMPORTANT If you are in doubt, you should seek professional advice. The SFC takes no responsibility for the contents of this statement and makes no representation as to its accuracy or completeness. 1 Hong Kong Business Day means a day (other than a Saturday or Sunday) on which banks in Hong Kong are open for normal business, provided that where as a result of a number 8 typhoon signal, black rainstorm warning or other similar event, the period during which banks in Hong Kong are open on any day is reduced, such day shall not be a Hong Kong Business Day unless the Manager and the Depositary determine otherwise or such other day or days as the Manager and the Depositary may determine. 2 This website has not been reviewed by the SFC and it may contain information on funds which are not authorised by the SFC. 6

63 產品資料概覽 霸菱國際傘子基金霸菱國際債券基金 2018 年 4 月 Baring International Fund Managers (Ireland) Limited 本概覽提供有關霸菱國際債券基金 ( 本基金 ) 的重要資料 本概覽是發售文件的一部分 閣下切勿單憑本概覽作出投資於本基金的決定 資料便覽 基金經理 Baring International Fund Managers (Ireland) Limited( 基金經理 ) 投資經理 Baring Asset Management Limited ( 內部委派, 英國 ) 保管人 全年經常性開支比率 : Northern Trust Fiduciary Services (Ireland) Limited 分派單位類別 ( 收益 ) 累積單位類別 ( 累積 ) A 類別美元收益 : 1.20% # I 類別美元累積 : 0.75% # A 類別歐元收益 : 1.20% # I 類別歐元累積 : 0.75%^ A 類別英鎊收益 : 1.20% # I 類別英鎊累積 : 0.75%^ I 類別英鎊收益 : 0.75% # # 由於本基金的收費結構由 2018 年 4 月 30 日起已更改, 故經常性開支比率僅為估計數字, 乃根據各個單位類別應支付的估計年度經常性開支計算, 以各個單位類別於同一期間的平均資產淨值的百分比表示 實際比率每年均可能有所變動 ^ 此等尚未發行之單位類別之經常性開支比率僅為估計數字, 乃根據擁有類似收費結構的參考單位類別的經常性開支比率計算 在該等單位類別開始實際運作後, 實際經常性開支比率可能有別於估計數字, 及每年均可能有所變動 交易頻次基本貨幣股息政策 * 財政年度年結日 每日 美元 就分派單位類別 ( 收益 ) 而言, 如有宣派股息, 將會派發股息 就累積單位類別 ( 累積 ) 而言, 將不會派發股息 * 本基金普遍會從盈餘收入淨額支付股息 然而, 基金經理亦可能會就其認為維持合理分派水平而言合適的情況下, 在扣除變現及未變現資本虧損後, 分派部分資本收益 根據香港監管披露規定, 自未變現資本收益中分派款項相當於從資本中作出分派 在該等情況下作出的分派款項或會令本基金的每單位資產淨值即時減少 4 月 30 日 1

64 最低投資額 : 首次最低投資額..其後最低投資額.. 分派單位類別 ( 收益 ) A 類別美元收益 : 5,000 美元 500 美元 A 類別歐元收益 : 3,500 歐元 500 歐元 A 類別英鎊收益 : 2,500 英鎊 500 英鎊 I 類別英鎊收益 : 10,000,000 英鎊 500 英鎊 累積單位類別 ( 累積 ) I 類別美元累積 : 10,000,000 美元 500 美元 I 類別歐元累積 : 10,000,000 歐元 500 歐元 I 類別英鎊累積 : 10,000,000 英鎊 500 英鎊 霸菱國際債券基金 這是甚麼產品? 霸菱國際債券基金為霸菱國際傘子基金的子基金 霸菱國際傘子基金為設於愛爾蘭的單位信託基金 其成立地監管機構為愛爾蘭中央銀行 目標及投資策略 目標 透過投資於多元化的定息證券投資組合, 以在資產價值中達致可觀的收入水平以及長期增長 策略 本基金將在任何時候把其總資產至少 70% 投資於多元化的國際公司及政府定息證券投資組合 投資組合亦可不時包括浮息證券 就此而言, 總資產並不包括現金及輔助流動資金 定息證券大多數獲得標準普爾或另一國際認可信貸評級機構的 A- 級或以上範圍內的評級, 或基金經理認為屬相若的信貸評級, 而浮息證券應獲得標準普爾或另一國際認可信貸評級機構的 AA- 級或以上範圍內的評級, 或基金經理認為屬相若的信貸評級 如證券不獲標準普爾評級, 有關評級將由投資經理決定為具可資比較質素 主權借款國以本身貨幣發行的證券並無信貸質素方面的限制 然而, 預期本基金將不會將多於其淨資產的 10% 投資於由國際認可評級機構評為低於投資評級的單一主權國 ( 包括其政府 該國家的公共或地方政府 ) 所發行及 或保證的證券 如各家評級機構的評級有別, 則相關主權發行人獲授予的最高信貸評級將被視為參考信貸評級 本基金亦可將其最多 10% 的資產淨值投資於集體投資計劃 儘管基金的資產淨值以美元表示, 以其他貨幣計值的投資之相對吸引力為基金經理的主要考慮之一 在特殊情況下, 例如經濟狀況 政治風險或世界事件 不明朗情況下的較高下行風險或相關市場因突發事件 ( 例如政治動盪 戰爭或大型財務機構破產 ) 而關閉, 本基金可暫時將其高達 100% 的總資產投資於現金 存款 國庫債券 政府債券或短期貨幣市場工具, 或大額持有現金及現金等價物 本基金可運用衍生工具, 包括認股權證 期貨 期權 貨幣遠期合約 ( 包括不可交割遠期合約 ) 掉期協議及差價合約, 以作有效管理投資組合 ( 包括對沖 ) 或投資用途 儘管可運用衍生工具, 但不會廣泛運用該等衍生工具作投資用途 衍生工具技巧可能包括 ( 但不限於 )(i) 以對沖貨幣風險,(ii) 以在投資經理認為衍生工具投資於相關資產較直接投資更具價值時候, 使用衍生工具作為在相關資產持倉的替代,(iii) 以根據投資經理對利率的觀點而調整本基金的利率風險, 及 / 或 (iv) 以對符合本基金投資目標及政策的特定指數的成份及表現取得投資參與 2

65 霸菱國際債券基金 有什麼主要風險? 投資涉及風險 請參閱發售文件以了解風險因素等資料 1. 投資風險 2. 信貸風險 3. 利率風險 本基金投資組合的價值可能因下文任何主要風險因素而下跌, 故閣下在本基金的投資可能蒙受損失 本基金為一項投資基金, 不屬銀行存款性質, 故不保證返還本金 本基金須承受本基金可能投資的債務證券發行人之信貸 / 違責風險 投資於本基金須承受利率風險 一般而言, 當利率下降, 債務證券的價格則上升, 而當利率上升, 其價格則下降 4. 波動性及流動性風險 本基金投資的債務工具未必在活躍的第二市場上買賣 相比較成熟市場, 若干市場的債務工具可能受限於較高的波動性及較低的流動性 於該等市場買賣的證券價格可能受到波動 該等證券的買賣差價可能重大, 本基金可能招致重大交易成本 5. 投資於特定國家或地區附帶的風險 本基金的投資可能集中於特定國家或地區 在此情況下, 相對於投資組合更為多元化的基金, 本基金的價值可能較為波動 本基金的價值可能較易受到影響特定國家或地區市場之不利經濟 政治 政策 外匯 流動性 稅務 法律或監管事件所影響 鑑於對歐元區內若干國家的主權債務風險的持續關注, 本基金於該地區的投資可能受到較高波動性 流動性 貨幣及違責風險所影響 任何不利事件 ( 例如某主權的信貸評級下降或歐盟成員撤出歐元區 ) 均可能對本基金的價值構成負面影響 6. 評級下調風險 債務工具或其發行人可能隨後被下調信貸評級 在評級下降的情況下, 本基金的價值可能會受到不利影響 投資經理未必能夠出售該等被降級的債務工具 7. 主權債務風險 8. 估值風險 本基金投資於由政府發行或擔保的證券或會承受政治 社會及經濟風險 在不利的情況下, 主權發行人未必能夠或願意償還已到期的本金及 / 或利息, 或可能要求本基金參與該等債務的重組 倘主權債務發行人違約, 本基金可能承受重大損失 本基金的投資之估值可能涉及不確定性及判斷性的決定 如該估值並不正確, 則可能影響本基金的資產淨值計算 9. 信貸評級風險 評級機構給予的信貸評級亦受到限制, 且證券及 / 或發行人的信貸能力並非時刻獲得保證 10. 與投資於次投資級別證券相關的風險 本基金可投資於次投資級別的債務證券或未獲評級的債務證券 與較高評級債務證券相比, 該等證券一般承受較低流動性 較高波動性及較大的本金及利息損失風險 3

66 11. 與衍生工具及流動性相關的風險 12. 對手方風險 霸菱國際債券基金 本基金可能會投資於衍生工具, 以作投資用途或有效管理投資組合 與衍生工具相關的風險包括對手方 / 信貸風險 流動性風險 估值風險 波動性風險及場外交易風險 衍生工具的槓桿元素 / 組成部分可導致損失遠大於本基金投資於衍生工具的金額 投資於衍生工具可導致本基金蒙受重大損失的高風險 此外, 概不保證本基金為對沖運用衍生工具將會完全有效, 在不利情況下, 如運用衍生工具無效, 本基金可能會蒙受重大損失 若干衍生工具可能不設交投活躍的市場, 故購買及銷售持股可能較為需時 本基金亦可能須面對難以按衍生工具的公平市場價格出售的問題 對手方風險為組織未能就債券或其他交易或買賣支付款項的風險 在對手方未能及時履行責任及本基金被延遲或阻止行使其於組合投資的權利的前提下, 本基金持倉的價值可能會下跌 失去收入及 或產生與維護其權利有關的成本 13. 投資於可換股債券的風險 14. 貨幣風險 可換股債券是債務與股票之間的混合體, 准許持有人於指定的未來日期轉換為發行債券的公司之股份 因此, 可換股債券將面對股本變動及較傳統債券投資承受較大波動性 於可換股債券的投資承受與可比較傳統債券投資相關的相同利率風險 信貸風險 流動性風險及提前還款風險 本基金的相關投資可能以本基金的基本貨幣以外的貨幣計值 此外, 本基金的單位類別可指定以本基金的基本貨幣以外的貨幣結算 本基金的資產淨值可能因該等貨幣與基本貨幣之間的匯率波動及匯率管制的變動而受到不利影響 15. 從資本扣除的費用 / 與分派有關的風險 本基金普遍會 ( 根據愛爾蘭會計指引 ) 自收入中支付其管理費及其他費用及開支 然而, 如沒有充足收入, 基金經理可從資本中, 或從已扣除變現及未變現資本虧損後的變現及未變現資本收益中支付其部分或全部管理費及其他費用及開支 如管理費及其他費用及開支乃自資本而非所產生的收入中扣除, 則增長可能會受到限制, 並可能會侵蝕資本 本基金普遍會自盈餘收入淨額中支付股息 然而, 基金經理亦可能會就其認為維持合理分派水平而言合適的情況下, 在扣除變現及未變現資本虧損後, 分派部分資本收益 根據香港監管披露規定, 自未變現資本收益中支付分派相當於從資本中作出分派, 而在該等情況下作出的分派則相當於從投資者的原有投資或自該原有投資應佔的任何資本收益中退還或提取部分款項 任何與以未變現資本收益支付股息有關的分派 ( 即指實際上從資本中支付股息 ) 或會令本基金的每單位資產淨值即時減少 4

67 霸菱國際債券基金 本基金過往的業績表現如何? 霸菱國際債券基金 - A 類別美元收益 10.0% 8.0% 6.0% 4.0% 3.9% 7.5% 7.4% 4.2% 5.2% 6.3% 2.0% 0.0% -2.0% -4.0% -6.0% -1.6% -1.6% -3.7% -4.5% 資料來源..霸菱 往績並非預測日後業績表現的指標 投資者未必能取回全部投資本金 基金業績表現以曆年末的資產淨值作為比較基礎, 股息會滾存再作投資 上述數據顯示 A 類別美元收益總值在有關曆年內的升跌幅度 業績表現以美元計算, 當中反映出基金的持續費用, 但不包括基金可能向閣下收取的認購費及贖回費 由於 A 類別美元收益為在香港獲認可的零售單位類別並以本基金的基本貨幣計值, 故獲選為代表單位類別 基金發行日 :1978 年 7 月 7 日 A 類別美元收益發行日 年 7 月 7 日 有否提供保證? 本基金並不提供任何保證 閣下未必能全數取回投資金額 5

68 霸菱國際債券基金 有什麼費用及收費? 閣下應支付的收費 當進行本基金單位交易時, 閣下可能須支付下列費用 費用 支付金額 認購費 ( 初期手續費 ) A 類別單位..每單位資產淨值之最多 5% I 類別單位..無 轉換費 ( 轉換費用 ) 無 贖回費 ( 贖回費用 ) 無 * 本基金應支付的持續費用 以下費用將從本基金中支付 該等費用將使閣下的投資回報減少 年率 ( 佔本基金資產淨值 ( 資產淨值 ) 的百分比 ), 如另有載述, 則不在此限 管理費 A 類別單位..類別應佔本基金資產淨值的 0.75% I 類別單位..類別應佔本基金資產淨值的 0.50% 保管人費用 表現費 包含在行政管理 保管及營運費 不適用 行政管理 保管及營運費 ** A 類別單位..類別應佔本基金資產淨值的 0.45% I 類別單位..類別應佔本基金資產淨值的 0.25% 交易費用 分銷商費用 按正常商業費率 不適用 * 如有徵收任何贖回費用或贖回費用增加至發售文件列明的特定允許最高水平, 本基金將會向投資者發出最少 1 個月通知 ** 行政管理 保管及營運費包括行政管理人及保管人的合計費用及開支, 以及若干其他費用及經常性開支 請參閱發售文件以了解進一步詳情 其他費用 當進行本基金單位交易時, 閣下可能須支付其他費用 本基金亦將須承擔與其直接相關的費用, 而該等費用列明於發售文件中 6

69 霸菱國際債券基金 其他資料 當香港代表霸菱資產管理 ( 亞洲 ) 有限公司於香港營業日 1 ( 亦為交易日 ) 下午五時正 ( 香港時間 ) 或之前, 或基金經理於交易日中午十二時正 ( 愛爾蘭時間 ) 或之前收妥閣下的要求後, 閣下一般按本基金下一個釐定的相關單位類別每單位資產淨值認購及贖回單位 交易日指愛爾蘭及英國的銀行均營業的每個營業日 ( 不包括星期六或星期日 ) 閣下在下達認購 贖回及 / 或轉換指示前, 請聯絡閣下的分銷商核實有關分銷商的內部最後交易時間 ( 其可能較本基金的最後交易時間為早 ) 本基金將就各交易日計算資產淨值, 而相關單位類別的單位價格則在各交易日公佈, 並可於 2 查閱 過去 12 個月的股息 ( 即自可分派收入及資本淨額中支付的相關金額 ) 組成可透過香港代表的網站 2 取得, 或可向香港代表索取 投資者可於 2 取得其他向香港投資者銷售的單位類別之過往業績資料 重要資料 閣下如有疑問, 應尋求專業意見 證監會對本概要的內容概不承擔責任, 對其準確性或完整性亦不作出任何陳述 1 香港營業日 指香港銀行開放正常營業的日子 ( 星期六或星期日除外 ), 惟倘因懸掛 8 號風球 黑色暴雨警告或其他類似事件, 使香港銀行於任何日子開放營業的時間縮短, 則該日並非香港營業日, 除非基金經理及保管人另行決定或基金經理及保管人可能釐定的該等日子 2 此網站並未經證監會審閱, 並可能載有未經證監會認可的基金的資料 7

70 PRODUCT KEY FACTS Barings International Umbrella Fund Barings International Bond Fund April 2018 Baring International Fund Managers (Ireland) Limited This statement provides you with key information about Barings International Bond Fund (the Fund ). This statement is a part of the offering document. You should not invest in the Fund based on this statement alone. QUICK FACTS Fund Manager Investment Manager Depositary Ongoing charges over a year: Baring International Fund Managers (Ireland) Limited (the Manager ) Baring Asset Management Limited (internal delegation, in the United Kingdom) Northern Trust Fiduciary Services (Ireland) Limited Distribution Unit Classes (Inc) Accumulation Unit Classes (Acc) Class A USD Inc: 1.20% # Class I USD Acc: 0.75% # Class A EUR Inc: 1.20% # Class I EUR Acc: 0.75%^ Class A GBP Inc: 1.20% # Class I GBP Acc: 0.75%^ Class I GBP Inc: 0.75% # # As the fee structure of the Fund has been changed with effect from 30 April 2018, the ongoing charges figure is an estimate only and is calculated based on the estimated annual ongoing expenses chargeable to the respective unit class expressed as a percentage of the average net asset value of the respective unit class for the same period. The actual figures may vary from year to year. ^ The ongoing charges figures for these unlaunched unit classes are estimates only and are based on ongoing charges figure for a reference unit class which has a similar fee structure. The actual figures may be different upon actual operation of the unit classes and the figures may vary from year to year. Dealing frequency Base currency Dividend policy* Financial year end Daily USD For Distribution Unit Classes (Inc), dividends, if declared, will be paid. For Accumulation Unit Classes (Acc), no dividend will be paid. * The Fund normally pays dividends out of surplus net income. However, the Manager may also distribute such part of any capital gains less realised and unrealised capital losses as, in its opinion, is appropriate to maintain a satisfactory level of distribution. Payment of distributions out of unrealised capital gains amounts to distribution out of capital under Hong Kong regulatory disclosure requirements and payment of distributions under such circumstances may result in an immediate reduction of the Fund s net asset value per unit. 30 April 1

71 Barings International Bond Fund Min. investment: Initial min. investment: Subsequent min. investment: Distribution Unit Classes (Inc) Class A USD Inc USD5,000 USD500 Class A EUR Inc EUR3,500 EUR500 Class A GBP Inc GBP2,500 GBP500 Class I GBP Inc GBP10,000,000 GBP500 Accumulation Unit Classes (Acc) Class I USD Acc USD10,000,000 USD500 Class I EUR Acc EUR10,000,000 EUR500 Class I GBP Acc GBP10,000,000 GBP500 WHAT IS THIS PRODUCT? Barings International Bond Fund is a sub-fund of Barings International Umbrella Fund, which is a unit trust domiciled in Ireland. Its home regulator is the Central Bank of Ireland. OBJECTIVES AND INVESTMENT STRATEGY Objectives To achieve an attractive level of income together with long-term growth in the value of assets by investing in a diversified portfolio of fixed interest securities. Strategy The Fund will invest at least 70% of its total assets at any one time in an internationally diversified portfolio of both corporate and government fixed interest securities.the portfolio may also, from time to time, include securities with floating interest rates. For this purpose, total assets exclude cash and ancillary liquidities. Fixed interest securities will predominately be rated A- or better by Standard & Poor s ( S&P ) or another internationally recognised credit rating agency or which are, in the opinion of the Manager, of similar credit status, and floating rate securities should be rated AA- or better by S&P or another internationally recognised credit rating agency or which are, in the opinion of the Manager, of similar credit status. Where a security is unrated by S&P, the rating will be that determined by the Investment Manager to be of comparable quality. No restriction on credit quality will apply to sovereign borrowers issuing in their own currency. However, the Fund is not expected to invest more than 10% of its net assets in securities issued and/or guaranteed by a single sovereign (including its government, a public or local government of that country) which is rated below investment grade by an internationally recognised rating agency. In the event of split rating, the highest credit rating accredited to the relevant sovereign issuer will be deemed the reference credit rating. The Fund may also invest up to a maximum of 10% of the Fund s net asset value into collective investment schemes. Although the net asset value of the Fund is expressed in US dollars, the relative attraction of investments denominated in other currencies is a major consideration of the Manager. Under exceptional circumstances (e.g. economic conditions, political risks or world events, high downside risks during uncertainties, or closure of relevant market(s) due to unexpected events, such as political unrest, war or bankruptcy of large financial institutions), the Fund may temporarily invest up to 100% of its total assets in cash, deposits, treasury bills, government bonds or short-term money market instruments or have substantial holdings in cash and cash equivalents. The Fund may use derivatives (including warrants, futures, options, currency forward contracts (including non-deliverable forwards), swap agreements and contracts for difference) for efficient portfolio management (including hedging) or investment purposes. Although derivatives may be used they will not be used, extensively for investment purposes. The derivative techniques may include, but are not limited to: (i) hedging a currency exposure; (ii) using derivatives as a substitute for taking a position in the underlying asset where the Investment Manager feels that a derivative exposure to the underlying asset represents better value than a direct exposure; (iii) tailoring the Fund s interest rate exposure to the Investment Manager s outlook for interest rates; and/or (iv) gaining an exposure to the composition and performance of a particular index which are consistent with the investment objective and policies of the Fund. 2

72 Barings International Bond Fund WHAT ARE THE KEY RISKS? Investment involves risks. Please refer to the offering document for details including the risk factors. 1. Investment risk The Fund s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Fund may suffer losses. The Fund is an investment fund and is not in the nature of a bank deposit. There is no guarantee of repayment of principal. 2. Credit Risk The Fund is exposed to the credit/default risk of issuers of debt securities that the Fund may invest in. 3. Interest rate risk Investment in the Fund is subject to interest rate risk. In general, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise. 4. Volatility and liquidity risk The debt instruments in which the Fund invests may not be traded on an active secondary market. Debt instruments in certain markets may be subject to higher volatility and lower liquidity when compared to more developed markets. The prices of securities traded in such markets may be subject to fluctuations. The bid and offer spreads of the price of such securities may be large and the Fund may incur significant trading costs. 5. Risk associated with investment in specific countries or regions The Fund s investment may be concentrated in specific countries or regions. In such event, the value of the Fund may be more volatile than that of a fund having a more diverse portfolio of investments. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the specific country or region market. In light of ongoing concerns on the sovereign debt risk of certain countries within the Eurozone, the Fund s investments in the region may be subject to higher volatility, liquidity, currency and default risks. Any adverse events, such as credit downgrade of a sovereign or exit of EU members from the Eurozone, may have a negative impact on the value of the Fund. 6. Downgrading risk The credit rating of a debt instrument or its issuer may subsequently be downgraded. In the event of such downgrading, the value of the Fund may be adversely affected. The Investment Manager may or may not be able to dispose of the debt instruments that are being downgraded. 7. Sovereign debt risk The Fund s investment in securities issued or guaranteed by governments may be exposed to political, social and economic risks. In adverse situations, the sovereign issuers may not be able or willing to repay the principal and/or interest when due or may request the Fund to participate in restructuring such debts. The Fund may suffer significant losses when there is a default of sovereign debt issuers. 8. Valuation risk Valuation of the Fund s investments may involve uncertainties and judgmental determinations. If such valuation turns out to be incorrect, this may affect the net asset value calculation of the Fund. 9. Credit rating risk Credit ratings assigned by rating agencies are also subject to limitations and do not guarantee the creditworthiness of the security and/or issuer at all times. 10. Risks associated with sub-investment grade securities The Fund may invest in sub-investment grade securities or unrated. Such securities are generally subject to lower liquidity, higher volatility and greater risk of loss of principal and interest than high-rated debt securities. 3

73 Barings International Bond Fund 11. Risks associated with derivatives and liquidity The Fund may have exposure to derivatives for investment purposes or for efficient portfolio management. Risks associated with derivatives include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The leverage element/component of a derivative can result in a loss significantly greater than the amount invested in the derivative by the Fund. Exposure to derivatives may lead to a high risk of significant loss by the Fund. Furthermore, there is no guarantee that the Fund s use of derivatives for hedging will be entirely effective and in adverse situations, where the use of derivatives becomes ineffective, the Fund may suffer significant loss. There may not be active market for certain derivatives so that the purchase and sale of holding may take longer. The Fund may also encounter difficulties in disposing of derivatives at their fair market price. 12. Counterparty risk Counterparty risk is the risk that an organization does not pay out on a bond or other trade or transaction when it is supposed to. If a counterparty fails to honour its obligations in a timely manner and the Fund is delayed or prevented from exercising its rights with respect to the investments in its portfolio, it may experience a decline in the value of its position, lose income and/or incur costs associated with asserting its rights. 13. Risks of investing convertible bonds Convertible bonds are a hybrid between debt and equity, permitting holders to convert into shares in the company issuing the bond at a specified future date. As such, convertibles will be exposed to equity movement and greater volatility than straight bond investments. Investments in convertible bonds are subject to the same interest rate risk, credit risk, liquidity risk and prepayment risk associated with comparable straight bond investments. 14. Currency risk The underlying investments of the Fund may be denominated in currencies other than the base currency of the Fund. Also, a class of units of the Fund may be designated in a currency other than the base Currency of the Fund. The net asset value of the Fund may be affected unfavourably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls. 15. Charges deducted from capital/risks relating to distribution The Fund normally pays its management fee and other fees and expenses out of income (in accordance with Irish accounting guidelines). However, where insufficient income is available, the Manager may pay some or all of its management fee and other fees and expenses out of capital and out of both realised and unrealised capital gains less realised and unrealised capital losses. Where the management fee and other fees and expenses are deducted from capital rather than income generated, this may constrain growth and could erode capital. The Fund normally pays dividends out of surplus net income. However, the Manager may also distribute such part of any capital gains less realised and unrealised capital losses as, in its opinion, is appropriate to maintain a satisfactory level of distribution. Payment of distributions out of unrealised capital gains amounts to distribution out of capital under Hong Kong regulatory disclosure requirements and that payment of distributions under such circumstances amounts to a return or withdrawal of part of an investor s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of unrealised capital gains as dividends (which means effectively paying dividend out of capital) may result in an immediate reduction of the Fund s net asset value per unit. 4

74 Barings International Bond Fund HOW HAS THE FUND PERFORMED? Barings International Bond Fund - Class A USD Inc 10.0% 8.0% 6.0% 4.0% 3.9% 7.5% 7.4% 4.2% 5.2% 6.3% 2.0% 0.0% -2.0% -4.0% -6.0% -1.6% -1.6% -3.7% -4.5% Source: Barings Past performance information is not indicative of future performance. Investors may not get back the full amount invested. The computation basis of the performance is based on the calendar year end, NAV-To-NAV, with dividend reinvested. These figures show by how much the Class A USD Inc increased or decreased in value during the calendar year being shown. Performance data has been calculated in US dollars, including ongoing charges and excluding subscription fee and redemption fee you might have to pay. Class A USD Inc is selected as representative unit class as it is a retail unit class authorised in Hong Kong and is denominated in the Fund s base currency. Fund launch date: 07 July 1978 Class A USD Inc launch date: 07 July 1978 IS THERE ANY GUARANTEE? The Fund does not have any guarantees. You may not get back the full amount of money you invest. 5

75 Barings International Bond Fund WHAT ARE THE FEES AND CHARGES? Charges which may be payable by you You may have to pay the following fees when dealing in the units of the Fund. Fee Subscription fee (Preliminary charge) Switching fee (Conversion charge) Redemption fee (Redemption charge) What you pay Class A Units: up to 5% of the net asset value per unit Class I Units: Nil Nil Nil* Ongoing fees payable by the Fund The following expenses will be paid out of the Fund. They affect you because they reduce the return you get on your investments. Annual rate (as a % of the Fund s net asset value ( NAV )), unless otherwise specified Management fee Depositary fee Performance fee Administration, Depositary and Operating Fee ** Transaction fee Distributor fee Class A Units: 0.75% of the Fund s NAV attributable to the Class Class I Units: 0.50% of the Fund s NAV attributable to the Class Included in the Administration, Depositary and Operating Fee Not applicable Class A Units: 0.45% of the Fund s NAV attributable to the Class Class I Units: 0.25% of the Fund s NAV attributable to the Class At normal commercial rates Not applicable * At least 1 month s notice will be given to investors should any redemption fees be charged or increased up to the specified permitted maximum level as set out in the offering document. ** The Administration, Depositary and Operating Fee includes the aggregate fees and expenses of the Administrator and Depositary and certain other fees and ongoing expenses. Please refer to the offering document for further details. Other fees You may have to pay other fees when dealing in the units of the Fund. The Fund will also bear the costs which are directly attributable to it, as set out in the offering document. 6

76 ADDITIONAL INFORMATION Barings International Bond Fund You generally subscribe and redeem units at the Fund s next-determined NAV per unit attributable to the relevant unit class after your request is received in good order by Baring Asset Management (Asia) Limited, our Hong Kong Representative, by 5 p.m. Hong Kong time on a Hong Kong Business Day 1 which is also a Dealing Day or the Manager by 12 noon Irish time of a Dealing Day. Dealing Days are every business day on which banks in both Ireland and the United Kingdom are open for business (excluding Saturday or Sunday). Before placing your subscription, redemption and/or conversion orders, please check with your distributor for the distributor s internal dealing deadline (which may be earlier than the Fund s dealing deadline). The NAV of the Fund is calculated and the prices of unit of the relevant unit classes are published for each Dealing Day, and are available online at 2. The composition of the dividends (i.e. the relative amounts paid out of net distributable income and capital) for the last 12 months can be obtained either through the Hong Kong Representative s website at 2 or from the Hong Kong Representative on request. Investors may obtain the past performance information of other unit classes offered to Hong Kong investors from 2. IMPORTANT If you are in doubt, you should seek professional advice. The SFC takes no responsibility for the contents of this statement and makes no representation as to its accuracy or completeness. 1 Hong Kong Business Day means a day (other than a Saturday or Sunday) on which banks in Hong Kong are open for normal business, provided that where as a result of a number 8 typhoon signal, black rainstorm warning or other similar event, the period during which banks in Hong Kong are open on any day is reduced, such day shall not be a Hong Kong Business Day unless the Manager and the Depositary determine otherwise or such other day or days as the Manager and the Depositary may determine. 2 This website has not been reviewed by the SFC and it may contain information on funds which are not authorised by the SFC. 7

77 霸菱國際傘子基金 基金章程 2018 年 4 月 30 日

78 霸菱國際傘子基金 香港說明文件 2018 年 4 月 30 日 1

79 目錄 頁數 致香港投資者的資料... 3 於香港提供的基金... 3 重要資料... 3 釋義... 4 香港代表... 4 投資經理... 4 投資政策 : 整體政策... 4 風險考慮因素... 5 股息政策... 5 於香港提供的單位... 6 香港投資者認購 贖回及轉換單位... 7 收費及開支... 9 與衍生工具有關的風險管理政策及程序概覽... 9 典型投資者概覽 每單位資產淨值的提供 報告及賬目 香港的稅務 經合組織共同匯報標準 海外賬戶稅收合規法案 (Foreign Account Tax Compliance Act) 主要投資者資料文件 備查文件 其他資料

80 致香港投資者的資料 重要事項 - 閣下如對本文件或隨附的任何文件的內容有任何疑問, 應諮詢閣下的股票經紀 銀行經理 律師 會計師或其他獨立專業財務顧問 本香港說明文件 ( 香港說明文件 ) 補充霸菱國際傘子基金 ( 單位信託基金 ) 日期為 2018 年 4 月 30 日的基金章程 ( 經不時補充 )( 基金章程 ), 構成基金章程的一部份並應與基金章程一併閱讀 除非本香港說明文件另有指明, 否則基金章程中界定的詞彙於本香港說明文件中具有相同涵義, 文義另有所指則作別論 名列基金章程 基金經理之董事 標題下 Baring International Fund Managers (Ireland) Limited( 基金經理 ) 的董事願對基金章程及香港說明文件所載資料負責 據董事 ( 作出一切合理審慎步驟查證後 ) 所深知及確信, 基金章程及本香港說明文件所載資料與事實相符, 且並無遺漏任何可能影響有關資料含義的事宜 董事願就此承擔責任 霸菱國際傘子基金及下文標題為 於香港提供的基金 一節所載的基金已獲香港證券及期貨事務監察委員會 ( 證監會 ) 根據香港 證券及期貨條例 第 104 條認可, 並可於香港向公眾銷售 證監會的認可並非對某計劃的推薦或認許, 亦非對某計劃的商業利益或其表現作出保證, 更不意指該計劃適合所有投資者, 或認許該計劃適合任何特定投資者或任何類別投資者 於香港提供的基金 警告 : 就基金章程所載基金而言, 只有下列基金獲證監會根據 證券及期貨條例 第 104 條認可, 因此可向香港公眾發售 : 霸菱大東協基金霸菱亞洲增長基金霸菱澳洲基金霸菱歐洲基金霸菱香港中國基金霸菱國際債券基金 基金章程為全球發售文件, 因此提及以下由基金經理所管理但未獲證監會認可的集體投資計劃 : Barings Umbrella Fund plc Barings Alpha Funds plc Barings China A-Share Fund plc Barings Component Funds 不得向香港公眾發售上述未經認可的集體投資計劃 證監會僅認可就向香港公眾發售上述證監會認可基金刊發的基金章程 中介機構應注意此限制 重要資料 在香港, 基金章程及本香港說明文件必須與單位信託基金當時的最近出版年報之副本及最近半年度報告 ( 如在上述年報出版後出版 ) 之副本一併派發, 方獲認可 在作出投資前, 閣下必須接獲並閱讀產品資料概覽 ( 產品資料概覽 ) 單位信託基金的單位僅根據基金章程 相關補充文件 本香港說明文件 相關產品資料概覽 單位信託基金的最近期年度報告及 ( 如其後刊發 ) 半年度報告所載資料發售 送交基金章程或相關補充文件或本香港說明文件或發行單位, 在任何情況下並非意味單位信託基金的事務自各文件日期以來並無任何變動, 亦非意味當中所載資料於相關文件日期後的任何時間屬正確 3

81 網站 及 及本香港說明文件及基金章程所載的其他網站 ( 如有 ) 未經證監會審閱, 並可能載有與於香港未獲認可的基金有關的資料以及並非以香港投資者為目標的資料 釋義 香港營業日 香港代表 在香港的銀行開門正常營業的日子 ( 星期六或星期日除外 ), 惟因懸掛 8 號颱風訊號 黑色暴雨警告或其他類似事件而導致香港銀行在任何一日的營業時間縮短, 則該日並非香港營業日, 除非基金經理及保管人另有決定則作別論, 或保管人及基金經理可能釐定的該等其他日子 ; 霸菱資產管理 ( 亞洲 ) 有限公司 香港代表 基金經理已委任霸菱資產管理 ( 亞洲 ) 有限公司為香港代表, 在香港代表基金經理處理單位信託基金相關一般事務 作為香港代表職責之一, 香港代表可接收香港及鄰近地區有意投資者的單位申請, 並處理單位持有人的贖回及 / 或轉換要求及其他查詢 香港代表就單位信託基金所收費用將由基金經理承擔 投資者如有任何關於單位信託基金的投訴或查詢, 可聯絡香港代表 有關投訴或查詢將會由香港代表直接處 理或轉交基金經理 有關人士進一步處理, 視乎該等投訴或查詢涉及的事宜而定 香港代表將盡力在切實可行情況下盡快回覆及解答投資者的投訴及查詢 香港代表的聯絡詳情載於下文標題為 其他資料 一節 投資經理 投資經理在獲得中央銀行及證監會批准下可以將有關投資管理責任分授予其他實體, 包括集團公司 ( 目前, 集團公司指 Baring Asset Management Limited 及霸菱資產管理 ( 亞洲 ) 有限公司 ) 將需就以下各項事先向證監會尋求批准.. (i) 向上文載列的集團公司內的實體作出任何責任分授 ;(ii) 上述受委人名單的任何變更 ; 或 (iii) 受委人 ( 不屬集團公司 ) 的任何委任或撤職 惟除在向上文載列的集團公司內的實體作出責任分授的情況下, 則將向單位持有人發出一個月的事先通知 概不會就向上文載列的集團公司內的實體作出的任何責任分授向單位持有人發給任何事先通知, 然而, 與該等責任分授有關的詳情將在基金的年度及半年度賬目內披露, 而最新的受委人名單亦將可免費向香港代表索取 任何由投資經理委任的副投資經理的費用及開支將由投資經理支付 任何獲委任為基金的副投資經理之詳情將應要求提供予單位持有人, 該等詳情亦會載於單位信託基金的定期報告內 投資政策 : 整體政策 除非基金的投資目標及政策另有披露, 否則基金無意將多於其淨資產的 10% 直接或間接投資於中國 A 股及中國 B 股 只要在基金仍於 證券及期貨條例 下獲認可的期間, 在達到適用的證監會要求 ( 如有 ) 及向投資者提供最少一個月事先通知後, 基金可將多於其淨資產的 10% 投資於中國 A 股及中國 B 股, 而基金章程及香港說明文件亦將作出相應更新 基金目前並無運用回購協議 逆回購協議或進行借股 如基金確實建議運用該等技巧及工具, 單位持有人將獲通知, 而香港說明文件及基金章程亦會根據中央銀行及證監會的規定予以修訂 如基金建議日後運用該等技巧及工具, 將須向單位持有人發出適當通知, 並須取得證監會的事先批准 ( 如有需要 ) 總回報掉期 為補充基金章程內有關運用總回報掉期的資料, 投資經理預期基金對總回報掉期的投資大致可能維持在下表所規定的範圍內 : 4

82 基金名稱 以名義總額計算的預期投資為基金資產淨值的百分比 (%) 以名義總額計算的預期投資上限為基金資產淨值的百分比 (%) 霸菱大東協基金 0-10% 25% 霸菱亞洲增長基金 0-10% 25% 霸菱澳洲基金 0-10% 25% 霸菱歐洲基金 0-10% 25% 霸菱香港中國基金 0-10% 25% 霸菱國際債券基金 0-70% 100% 風險考慮因素 投資者應參閱基金章程標題為 風險考慮因素 一節及以下與投資於基金有關的風險的額外資料 儘管基金章程標題為 風險考慮因素 一節載有 以下風險考慮因素詳列與投資於單位信託基金相關的特定風險, 投資者應與其專業顧問討論 以下風險考慮因素並非與投資於單位信託基金或個別基金相關的所有風險的全面概要 的陳述 據基金經理的董事所深知及確信, 於基金章程及香港說明文件日期, 基金章程及香港說明文件載有可能適用於相關基金以及投資者應注意的風險說明 投資者應注意, 基金因應其各自的投資政策須承受不同的風險 投資者應注意, 在不斷轉變的環境下, 基金可能須承受於基金章程及香港說明文件的日期時未能預計的風險 潛在投資者在投資基金前應考慮涉及的風險, 以決定基金的投資是否適合彼等 投資於其他集體投資計劃的風險 除了基金章程標題為 投資於其他集體投資計劃的風險 的風險因素下所載風險外, 投資者應注意基金可投資的相關集體投資計劃未必受證監會規管 從未變現資本收益中作出分派 基金經理亦可就其認為維持合理分派水平而言屬合適的情況下, 分派任何資本收益 ( 經扣除已變現及未變現資本虧損 ) 的部份 根據香港監管披露規定, 自未變現資本收益中支付分派相當於從資本中作出分派, 而在有關情況下支付的分派相當於從投資者的原有投資或自該原有投資應佔的任何資本收益中退還或提取部份款項 任何涉及以未變現資本收益支付股息 ( 指實際上從資本中支付股息 ) 或會令該基金的每單位資產淨值即時減少 從資本中作出分派的稅務影響可能與分派收入不同, 投資者應就此尋求獨立意見 股息政策 根據基金章程所述, 信託契據規定保管人於扣除基金章程 費用及開支 所載的開支及其他各項目 ( 歸屬於該項基金的收入 ) 後, 以就每項基金收取股息及利息的方式, 於各會計期間向相關類別的單位持有人分派不少於盈餘收入淨額的 85% 此外, 基金經理或會就其認為維持合理分派水平而言屬合適的情況下, 向相關基金或類別的單位持有人分派任何資本收益 ( 經扣除相關基金或類別應佔的已變現及未變現資本虧損 ) 的部份 投資者應注意, 根據香港監管披露規定, 自未變現資本收益中支付分派相當於從資本中作出分派, 而在該等情況下作出的分派則相當於從投資者的原有投資或自該原有投資應佔的任何資本收益中退還或提取部份款項 任何涉及以未變現資本收益支付以作為股息 ( 即實際上從資本中支付股息 ) 的分派或會令該基金的每單位資產淨值即時減少 在該等情況下, 在相關基金的存續期期間作出的分派必須被視為資本退還的一種 基金可對上述政策作出修訂, 惟須先取得證監會的事先批准及向受影響的香港投資者發出不少於一個月的事先通知 過去 12 個月的股息組成 ( 即自可分派收入淨額及資本中支付的相對金額 ) 可透過香港代表的網站 取得, 或可向香港代表索取 5

83 於香港提供的單位 截至本香港說明文件日期, 以下基金現正向香港公眾發售的單位載列如下 請參閱基金章程以了解有關單位類別的進一步資料 霸菱大東協基金 A 類別澳元對沖累積 A 類別歐元累積 A 類別歐元收益 A 類別英鎊收益 A 類別美元累積 A 類別美元收益 I 類別歐元累積 I 類別英鎊累積 I 類別美元累積 霸菱亞洲增長基金 A 類別歐元累積 A 類別歐元收益 A 類別英鎊收益 A 類別美元累積 A 類別美元收益 I 類別歐元累積 I 類別英鎊累積 I 類別美元累積 霸菱澳洲基金 A 類別澳元收益 A 類別歐元累積 A 類別歐元收益 A 類別英鎊收益 A 類別美元收益 I 類別澳元累積 I 類別歐元累積 I 類別英鎊累積 I 類別美元累積 霸菱歐洲基金 A 類別歐元累積 I 類別歐元累積 C 類別歐元收益 * A 類別歐元收益 I 類別英鎊收益 C 類別美元收益 * A 類別美元收益 I 類別美元累積 霸菱香港中國基金 A 類別歐元累積 I 類別歐元累積 C 類別歐元收益 * A 類別歐元收益 I 類別英鎊累積 C 類別美元收益 * 6

84 A 類別英鎊收益 A 類別港元收益 A 類別美元累積 A 類別美元收益 I 類別美元累積 霸菱國際債券基金 A 類別歐元收益 A 類別英鎊收益 A 類別美元收益 I 類別歐元累積 I 類別英鎊累積 I 類別英鎊收益 I 類別美元累積 * C 類別單位將可提供予已與基金經理或其授權代理訂有配售代理或分銷安排之若干分銷商 C 類別單位亦應支付一項分銷商費用, 有關費用相當於基金歸屬於各類別的資產淨值每年 1% 如有收取該項費用, 將應支付予根據基金經理或其受委人與相關分銷商訂立的配售代理協議而獲委任為分銷商的有關分銷商 分銷商費用應每日累計及於每季期末支付 上文並無提及的其他單位類別並無向香港公眾提供 累積單位將累計, 並將因此不會支付任何分派 累積單位於類別名稱中以 累積 標示 根據信託契據, 基金經理獲賦予獨有權利, 就單位信託基金發行任何類別單位, 並於證監會 ( 及其他相關機關 ) 的規定 ( 如有 ) 下, 增設新類別, 亦可全權酌情接納或拒絕任何單位申請的全部或其中部份 香港投資者認購 贖回及轉換單位 下文載列香港投資者的認購 贖回及轉換程序 有關認購 贖回及轉換程序的完整詳情 所有應付收費以及有關認購 贖回及轉換單位的其他重要資料載於基金章程 香港投資者應連同本香港說明文件一併仔細閱讀相關章節 投資者應注意, 不同的分銷商可就接收認購 贖回及 / 或轉換指示實施較交易截止時間為早的不同交易截止時間並可能有不同的交易安排 / 程序 閣下於下達認購 贖回及 / 或轉換指令前, 請與分銷商確認其內部交易截止時間 ( 可能較基金的交易截止時間為早 ) 及分銷商的交易安排 / 程序 申請程序 首次認購應於填妥申請表格後, 連同有關反洗黑錢活動規定的證明文件, 於交易日香港時間下午 5 時正或之前向香港代表提交正本, 再由香港代表轉交基金經理 ( 由行政管理人轉交 ) 隨後認購可以書面方式作出, 向香港代表提交已簽署的正本, 再由香港代表轉交基金經理 ( 由行政管理人轉交 ) 或直接向基金經理提交 ( 由行政管理人轉交 ) 隨後認購亦可以書面方式作出, 以傳真方式向基金經理直接提交 ( 由行政管理人轉交 ) 此外, 投資者可在基金經理或香港代表的同意下, 透過電子訊息服務 ( 例如 EMX 或 SWIFT), 或與基金經理或香港代表不時協定的其他方法提交認購申請 申請表格及隨後認購申請的表格可向香港代表索取 就香港代表於各交易日香港時間下午 5 時正或之前接獲或基金經理於各交易日愛爾蘭時間中午 12 時正或之前接獲的申請, 一般於該交易日發行各類別的單位 於首次發行後發行單位的交易價乃參考於該交易日的估值點釐定的每單位資產淨值計算 基金經理於交易日愛爾蘭時間中午 12 時正後接獲的申請, 將被當作於下一個交易日接獲處理 儘管有上文所述, 香港代表於香港營業日香港時間下午 5 時正後接獲或被當作香 7

85 港代表於並非香港營業日的交易日接獲的任何認購申請, 將被視為香港代表於下一個亦為交易日的香港營業日接獲 倘就單位申請而提供的任何詳情有所變更, 包括閣下的地址 其他聯絡資料 ( 例如電話號碼 電郵地址 ) 或銀行賬戶資料, 請立即致函通知香港代表或行政管理人, 否則, 可能導致延遲處理隨後任何指令 任何人不得向任何並非根據 證券及期貨條例 第 V 部獲發牌或註冊從事第 1 類 ( 買賣證券 ) 受規管活動的香港中介人付款 到期款項一般以相關基金的相關類別之貨幣計算 倘投資者擬以相關類別之貨幣以外任何貨幣支付款項, 務必與香港代表或基金經理 ( 由行政管理人轉交 ) 直接聯絡 根據基金章程標題為 認購單位 一節規定, 於單位持有人要求贖回單位的權利按基金章程標題為 贖回單位 一節及本文件標題為 贖回單位 一節所詳述的方式暫停期間, 或會暫停計算每單位的資產淨值 任何有關暫停事宜將通知證監會, 不得延誤, 且於可行情況下, 將採取一切合理措施盡快結束任何暫停期間 請參閱基金章程以了解有關單位申請的進一步資料 贖回單位 贖回要求可以書面方式作出, 向香港代表提交已簽署的正本, 再由香港代表轉交基金經理 ( 由行政管理人轉交 ) 或直接向基金經理提交 ( 由行政管理人轉交 ) 贖回要求亦可以書面方式作出, 以傳真方式向基金經理直接提交 ( 由行政管理人轉交 ) 此外, 香港投資者可在基金經理或香港代表的同意下, 透過電子訊息服務 ( 例如 EMX 或 SWIFT), 或與基金經理或香港代表不時協定的其他方法提交贖回申請 在香港代表收到以轉交基金經理 ( 由行政管理人轉交 ) 的認購申請表格正本 ( 及在根據任何不時的法定及監管責任完成有關單位持有人的任何適用身份核實程序 ) 前, 不會支付贖回款項 贖回表格可向香港代表索取 香港代表於交易日香港時間下午 5 時正前接獲或基金經理於交易日愛爾蘭時間中午 12 時正前接獲的贖回單位申請, 將在基金章程標題為 贖回單位 一節所述的規限下, 參考該交易日的估值點所釐定的每單位資產淨值處理 基金經理於愛爾蘭時間中午 12 時正後接獲的贖回申請, 將被當作於下一個交易日接獲處理 儘管有上文所述, 香港代表於香港營業日香港時間下午 5 時正後接獲或被當作香港代表於並非香港營業日的交易日接獲的任何贖回申請, 將被視為香港代表於下一個亦為交易日的香港營業日接獲 倘單位持有人有意以相關單位類別之貨幣以外的貨幣收取贖回單位款項, 基金可另作安排 在此情況下, 單位持有人務必直接與香港代表或基金經理 ( 由行政管理人轉交 ) 聯絡, 以促成付款程序 或會向單位持有人收取貨幣兌換成本及其他包括電子轉賬的行政開支 投資者可贖回部份所持單位, 惟不得導致單位持有人所持金額少於最低持有額 暫停贖回 基金章程規定, 單位持有人要求贖回單位的權利按基金章程標題為 贖回單位 一節所述方式遭暫停期間, 可能暫停計算每單位資產淨值 任何該暫停均須即時知會證監會, 並於可行情況下採取所有合理措施盡快結束任何暫停期間 此外, 暫停買賣公告將以合適方式 ( 包括透過基金經理的網站 即時刊登, 及後於暫停期間最少每月刊登一次 實物贖回 根據基金章程規定, 基金經理可酌情透過分派實物投資, 以應付贖回要求 只要基金仍獲證監會認可期間, 實物贖回只有在獲得贖回單位持有人的事先批准下方可進行 請參閱基金章程以了解有關贖回單位的進一步資料 8

86 單位轉換 單位持有人可申請於任何交易日將彼等所持任何類別 ( 原有類別 ) 的全部或其中部份單位, 轉換為同一基金或另一基金當時發售的另一類別 ( 新類別 ) 的單位 轉換申請可以書面方式作出, 向香港代表提交已簽署的正本, 再由香港代表轉交基金經理 ( 由行政管理人轉交 ) 或直接向基金經理提交 ( 由行政管理人轉交 ) 轉換要求亦可以書面方式作出, 以傳真方式向基金經理直接提交 ( 由行政管理人轉交 ) 此外, 香港投資者可在基金經理或香港代表的同意下, 透過電子訊息服務 ( 例如 EMX 或 SWIFT), 或與基金經理或香港代表不時協定的其他方法提交轉換申請 上文及基金章程所載有關贖回的一般條文及程序將同等適用於轉換情況 轉換表格可向香港代表索取 然而, 倘單位轉換將導致單位持有人所持原有類別或新類別單位數目的價值低於相關類別的最低持有額, 則不會進行轉換 請參閱基金章程以了解有關單位轉換的進一步資料 收費及開支 有關單位信託基金的費用及開支詳情, 載於基金章程標題為 收費及開支 一節 有意投資者應特別注意當中所載有關費用及開支的資料 就基金章程標題為 收費及開支 一節下的 行政管理 保管及營運費 分節而言, 規定基金經理將支付行政管理人及保管人的合計費用及開支, 以及若干其他費用及經常性開支 除了基金章程目前所述的有關其他費用及經常性開支外, 亦將包括印刷 編製及分派獲證監會認可的有關基金的產品資料概覽的費用 行政管理 保管及營運費的費率如有任何增加將須獲得單位持有人批准 管理費費率如有任何增加, 將須獲得單位持有人以特別決議案的方式批准 基金經理有權為其本身在每單位資產淨值之上另加一項足以補貼印花稅及發行單位所涉及稅項的費用, 亦可為相關基金就財政及購買費用另加一項不超過每單位資產淨值 1% 的費用 然而, 一般情況下, 基金經理無意增收任何此等額外費用 倘此政策改變, 單位持有人將獲至少一個月的事先書面通知有關徵收該收費的意向 基金經理目前無意在正常情況下收取贖回費用, 惟 C 類別單位除外, 基金經理或其受委人可酌情決定就 C 類別單位收取歸屬於 C 類別的資產淨值 1% 的開支 倘此政策改變, 單位持有人將獲至少一個月的事先書面通知有關徵收贖回費用或增加贖回費用至基金章程列明的特定允許最高水平的意向 只要單位信託基金及基金仍在香港獲認可期間, 不得向該基金收取銷售佣金 廣告或推廣開支 與衍生工具有關的風險管理政策及程序概覽 下文章節概述基金投資於衍生工具相關的風險管理政策及程序 有關該等政策及程序 ( 包括應用的數量限制以及基金主要投資類別的風險及收益特徵的任何最新發展 ) 的進一步詳情, 可向香港代表查詢 概覽 基金經理已委任投資經理負責每項基金的投資管理, 投資經理亦將代表基金負責常設風險管理的職能 由於基金經理的董事會仍負責該等已對外授權的責任, 基金經理會採取一切合理措施, 以確保該等已對外授權的職務乃以遵守適用規則及指引的情況下進行, 並受到適當監管及計量 投資經理會考慮基金經理的內部風險管理政策及程序, 監控 計量及管理基金於衍生工具方面的投資及運用 各基金涉及多項特定風險 與各基金相關的風險按以下層面監察及審閱, 並向基金經理的董事會匯報 : 由個別投資小組比較其自有策略及限制及透過部門風險審閱 9

87 由營運合規小組進行 投資營運部門內的營運合規小組運用霸菱的自動指引管理系統 Bloomberg AIM 及 thinkfolio Compliance 於進行交易前評估每項建議交易, 並就基金倉盤編撰每日交易後合規報告 被拒絕的交易於執行前必須先獲營運合規小組審批 透過合規監控, 以確保實施合適管制, 以保證基金符合所有監管要求 霸菱內有委員會及業務範圍職責涉及識別 計量及管理與基金相關的風險 對委員會的匯報關係如下 表示資訊流 管理衍生工具風險所用的監控措施及制度 個別投資小組負責投資及管理基金資產, 並與投資風險小組合作, 以考慮資產的風險及基金的整體風險特性 投資風險小組負責評估風險, 並制定及維持計量風險所需的方法及程序 投資風險小組 (Investment Risk Team) 透過運用行業標準指標監察基金的市場風險, 例如追蹤誤差 系數及壓力測試, 並輔以內部投資指引監察 ( 如適用 ) 投資風險小組於每日上午以前一日的收市基金及標準倉盤監察每日風險報表系統 倘發現與任何規定限制有別的任何例外情況, 則由投資風險小組驗證並與相關持份者 ( 例如營運合規小組 ) 溝通以尋求解決方案 將使用以下方法作風險計量及風險監察 ( 已就該等方法及風險設立內部及 ( 如適用 ) 規管限制 ): 風險值 ; 10

88 槓桿 ; 追蹤誤差 ; 及 場外交易對手方風險 ; 就採用承擔法計算整體風險的基金 ( 見基金章程 ) 而言, 投資經理每日採用承擔法及名義總額方式計算及監察槓桿 投資經理將採用回溯測試, 透過比較隨著時間產生風險值計算的模型, 對比實際觀察所得收益及損失, 以評估風險值模型的準確度及質素 回溯測試計劃將運用清晰的回溯測試方法每月進行 投資營運部門內的營運合規小組運用霸菱的自動指引管理系統 Bloomberg AIM 及 thinkfolio Compliance 於進行交易前評估每項建議交易, 並就基金倉盤編撰每日交易後合規報告 被拒絕的交易於執行前必須先獲營運合規小組審批 有關系統亦發出與市場走勢有關的每日特例報告, 列明超出載列於基金的基金章程的監管限額及 / 或投資限制及限額的倉盤 所有特例均由相關投資小組及營運合規小組審核, 以取得合適及及時的解決方案 如有需要, 有關複雜規則的特例將交予基金的保管人處理, 以確保適當地應用監管規則及規例及資金數據 以下主要系統負責風險監控 合規及匯報 : 就風險值及壓力測試匯報而言, 採用 MSCI RiskMetrics 就計算股票基金的追蹤錯誤而言, 風險模式數據及分析軟件由 MSCI 或 Axioma 提供 就固定收益基金而言, 有關追蹤錯誤及追蹤錯誤的百分比貢獻計算乃採用 MSCI 所開發的專屬模型 就多項資產基金而言, 基金的風險值乃採用來自 RiskMetrics 的分析進行評估 典型投資者概覽 有關在各補充文件中 典型投資者概覽 一節下, 投資者應注意, 該等資料僅供參考 具體而言, 對典型最低時限的提述並非建基於基金經理對風險概況的評估 典型香港投資者的風險承受能力 投資目標及 / 或投資視野或對有關香港投資者的特定情況 ( 不論為一般或特別情況 ) 的考慮 因此, 香港投資者在作出投資決定時不應依賴有關提述 在作出任何投資決定前, 投資者應考慮其自身的特定情況, 包括但不限於該等投資者的風險承受水平 財務狀況以及投資目標 如有任何疑問, 投資者應諮詢其股票經紀 銀行經理 律師 會計師 代表銀行或其他財務顧問 每單位資產淨值的提供 除暫停贖回基金單位的情況外 ( 在基金章程所述情況下 ), 各類別的每單位資產淨值將可於霸菱網站 查閱或以任何適當方式提供, 並將於每個交易日更新 該等價格亦可於香港代表的辦事處查證 報告及賬目 單位信託基金的經審核賬目及報告以及未經審核半年度報告僅提供英文版本 基金經理將通知單位持有人於基金章程標題為 報告及賬目 一節所述時間內, 可索取年度報告及經審核賬目 ( 以印刷及電子方式 ) 的地點, 以及可索取未經審核半年度賬目 ( 以印刷及電子方式 ) 的地點 最新的年度及半年度賬目一經刊發, 副本可於基金經理 投資經理及香港代表的辦事處索取 香港的稅務 11

89 以下為就購買 擁有及出售單位時所承擔的若干香港稅務後果的摘要 香港稅務概要屬一般性質, 僅供參考之用, 並不擬詳盡列出所有可能與購買 擁有 贖回或以其他方式出售單位的決定有關的稅務考慮 單位的潛在投資者應就購買 擁有及出售單位所承擔的香港或其他稅務後果諮詢其本身的顧問 根據現行香港法例及慣例, 於單位信託基金獲證監會認可期間 : (a) 單位信託基金預期毋須就其任何獲授權活動繳納香港稅項 ; (b) 香港單位持有人毋須就出售 贖回或以其他方式處置單位信託基金內單位所產生任何資本收益繳稅, 惟倘交易於香港成為一項買賣 行業或業務一部份時, 或會產生香港利得稅 ; 及 (c) 香港單位持有人一般毋須就單位信託基金的股息或其他收入分派繳稅 經合組織共同匯報標準 稅務 ( 修訂 )( 第 3 號 ) 條例 ( 該條例 ) 於 2016 年 6 月 30 日生效, 是在香港實施自動交換財務賬戶資料 ( AEOI ) 準則的法律框架 AEOI 要求香港的財務機構 ( 財務機構 ) 收集有關在財務機構持有賬戶的非香港稅務居民之資料, 並向香港稅務局 ( 香港稅務局 ) 提交有關資料 香港稅務局將繼而與該賬戶持有人居住的司法管轄區交換有關資料 一般而言, 只會向已與香港簽訂主管當局協定 ( 主管當局協定 ) 的司法管轄區交換稅務資料 ; 然而, 財務機構可進一步收集有關其他司法管轄區的居民的資料 投資者透過香港的財務機構投資於單位信託基金或相關基金及 或繼續投資於單位信託基金或相關基金, 即得悉彼等可能須向相關財務機構提供額外資料, 使相關財務機構可遵守 AEOI 香港稅務局可向其他司法管轄區的機關傳達投資者的資料 ( 及實益擁有人 受益人 直接或間接股東或與該等單位持有人有關聯而並非自然人的其他人士的資料 ) 各單位持有人及有意投資者應就 AEOI 對其透過香港財務機構於單位信託基金的目前或擬進行的投資之行政及實質影響諮詢其專業顧問 海外賬戶稅收合規法案 (Foreign Account Tax Compliance Act) 截至本香港說明文件日期, 投資經理 Baring Asset Management Limited 已登記為 保薦實體, 並同意代表保薦投資實體 ( 包括單位信託基金及 或其基金 ) 履行所有盡職審查 匯報及其他相關的 FATCA 規定 投資經理的 GIIN 為 HU7DQI SP.826 單位信託基金及 或各基金將分類為 保薦投資實體, 並將成為被視為已登記視同遵守海外財務機構的免申報財務機構 主要投資者資料文件 儘管基金章程提及主要投資者資料文件或 KIID, 主要投資者資料文件並不擬作為及在任何情況下均不應理解為香港的單位信託基金的發售文件, 並且不會向香港投資者派發 備查文件 以下文件副本可於下文所載香港代表的辦事處免費索取或查閱 : 信託契據 ( 經修訂 ) 行政協議 投資管理協議 香港代表與基金經理訂立的協議 最新年度及半年度報告及賬目 ( 年度及半年度報告僅提供英文版 ) 投資者亦可就有關基金的風險管理 投資經理的最佳執行政策 投資經理的委託投票政策及薪酬政策的資 料以及保管人的受委人及副受委人名單及有關轉授可能引起的任何利益衝突的最新資料聯絡香港代表 12

90 其他資料 香港代表 霸菱資產管理 ( 亞洲 ) 有限公司註冊地址 : 香港皇后大道中 15 號告羅士打大廈 室及 35 樓 營業地址及聯絡詳情 : 香港皇后大道中 15 號告羅士打大廈 35 樓 基金經理的董事 Peter Clark James Cleary David Conway Barbara Healy Timothy Schulze Julian Swayne 由 Baring International Fund Managers (Ireland) Limited 轉交, 地址為 70 Sir John Rogerson s Quay Dublin 2, Ireland 電話 : 傳真 : 香港法律事宜的法律顧問 的近律師行香港中環遮打道 18 號歷山大廈 5 樓 13

91 基金章程 霸菱國際傘子基金 ( 根據 1990 年單位信託基金法案 (Unit Trusts Act, 1990) 成立以單位信託基金之形式組成的傘子基金, 並根據 2011 年歐洲共同體 ( 可轉讓證券集體投資計劃 ) 規例 ( 經修訂 ) 獲愛爾蘭中央銀行認可 ) 於各方名錄一節下名列 基金經理之董事 標題下的基金經理的董事對本基金章程所載資料承擔責任 據董事 ( 作出一切合理審慎步驟查證後 ) 所深知及確信, 本基金章程所載資料與事實相符, 且並無遺漏任何可能影響有關資料含義的事宜 董事願就此承擔責任 2

92 重要資料 閣下如對本章程的內容有任何疑問, 應諮詢閣下的股票經紀 銀行經理 律師 會計師或其他財務顧問 獲愛爾蘭中央銀行認可 單位信託基金已獲愛爾蘭中央銀行 ( 中央銀行 ) 根據 2011 年歐洲共同體 ( 可轉讓證券集體投資計劃 ) 規例 (European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011)( 經修訂 )( UCITS 規例 ) 認可為 可轉讓證券集體投資企計劃 ( UCITS ), 並以單位信託基金的形式組成, 將遵守中央銀行的 UCITS 規例 中央銀行的認可並不構成中央銀行對基金的表現提供保證, 而中央銀行毋須為基金的表現或違約事宜負責 中央銀行的認可並不代表中央銀行對單位信託基金的認可或擔保, 中央銀行亦不會對本章程的內容負責 本章程 ( 此詞彙所指亦包括本章程中或與本章程相關的任何補充文件 ) 提供有關單位信託基金及基金的資料 有意投資者須按申請表格的其中規定, 確認其已閱讀並理解本章程 本章程載有有意投資者於投資單位信託基金前應當知道的資料, 並應保留以供日後參考 副本可向基金經理或分銷商取得 單位信託基金最近期的年度報告副本可應要求免費提供 單位信託基金的單位僅根據本章程 相關補充文件 主要投資者資料文件 單位信託基金的最近期年度報告及 ( 如其後刊發 ) 半年度報告所載資料提呈發售 任何交易商 經紀或其他人士提供或作出的任何其他資料或陳述都應置之不理, 因此亦不應加以依賴 概無任何人士已獲授權提供或作出主要投資者資料文件 本章程 各相關補充文件 最近期的年度報告及 ( 如其後刊發 ) 單位信託基金的半年度報告所載以外的任何資料或任何聲明, 而倘提供或作出有關資料或聲明, 則一概不得視為已獲授權而加以依賴 在作出有關提呈或邀請即屬違法的任何情況下, 本章程並不構成提呈發售或邀請提呈購買本章程所涉單位以外之任何有關單位, 亦不構成任何人士提呈發售或邀請提呈購買任何有關單位 送交本章程或相關補充文件或發行單位, 在任何情況下並非意味單位信託基金的事務自本章程日期以來並無任何變動, 亦非意味本章程所載資料於任何其後時間屬正確 董事已作出合理審慎步驟, 確保本章程所述事實在所有重大方面均屬真實準確, 且並無遺漏其他重大事實, 致使本章程所載有關事實或意見的任何陳述構成誤導 董事願就此承擔責任 本章程及任何補充文件可翻譯成其他語言 任何該等翻譯本只可載有與英文章程及補充文件相同的資料及具有與英文章程及補充文件相同的意思 英文章程及補充文件與其他語言的章程 / 補充文件之間如有任何歧義, 概以英文章程 / 補充文件為準, 惟倘 ( 亦僅在此情況下 ) 任何司法管轄區的法律 ( 包括出售單位的司法管轄區的金融監管機構的規例或要求 ) 規定根據英文版以外的章程 / 補充文件的披露採取任何行動時, 則一概以該行動所依據的章程 / 補充文件的語言為準 單位信託基金為 傘子基金, 讓投資者可透過投資於一個或多個單位信託基金發售的獨立信託基金 ( 基金 ), 在一個或多個投資目標之間選擇 根據信託契據, 單位信託基金成立的各基金應佔的資產及負債, 將由保管人分隔 將不會就各類別維持獨立的資產組合 於本章程日期, 單位信託基金提呈發售於本章程日期生效的最近期補充文件所述的各基金之單位 董事可在中央銀行的事先批准下, 不時決定發售額外的獨立基金, 並在事先通知中央銀行及取得其批准後, 在現有基金提供額外類別 在該情況下, 本章程將作更新及修訂, 以載入有關新基金及 / 或類別的詳細資料, 及 / 或另行編製有關該等基金及 / 或類別的補充文件或補編 該等經更新及更修訂章程或新的獨立補充文件或補編不會向現有單位持有人分發, 除非就其認購該等基金的單位而分發, 則作別論 投資者可在適用法律的規則下, 投資於單位信託基金發售的任何基金 投資者應選擇最適合其特定風險及回報預期以及其多元化需求的基金, 並應就此尋求獨立意見 將會就各基金維持獨立的資產組合, 並將根據適用於相關基金的投資政策投資以達到其投資目標 預期不同基金的單位資產淨值及表現以及其類別各有不同 應謹記單位價格及來自單位的收入 ( 如有 ) 可升可跌, 概不擔保或保證將達到某基金的所述投資目標 投資者應注意, 如某基金的適用補充文件指明, 可能就該基金收取高達贖回單位資產淨值 1% 的贖回費用 單位持有人應注意, 當收入不足時, 基金的股息 管理費及其他費用及開支的部份或全部或會從資本中支付 因此, 單位持有人在贖回持有單位時未必能全數取回投資金額 從資本中支付股息或收取費用及開支的政策亦將可能會令閣下的投資資本價值下跌, 並限制未來資本增長的潛力 3

93 一般注意事項 有意認購單位的人士應自行查閱下列資料 : 根據彼等擁有公民身份 居留或擁有居籍國家所立法例, 因認購 持有或出售單位可能面對的 (a) 潛在稅務後果 ;(b) 法律規定 ; 及 (c) 任何外匯限制或匯兌管制規定 有意認購單位的人士應注意章程內 風險考慮因素 一節所載的風險因素 各單位買家必須遵守其購買 發售或出售該等單位或擁有或分發章程所在各司法管轄區生效的一切適用法律及法規, 並且必須根據其所屬或其作出該購買 發售或出售的任何司法管轄區的法律及法規, 獲得其購買 發售或出售單位所需的任何同意 批准或許可, 而本章程所指的單位信託基金 基金經理 投資經理 ( 或其任何關聯公司 ) 保管人或行政管理人概不對此承擔任何責任 美國 單位並無根據 1933 年美國證券法 ( 經修訂 ) 註冊, 故不得於美國境內或向任何美籍人士直接或間接發售或出售 日本 單位並無亦將不會根據 日本金融工具及交易法 註冊 因此, 單位不得直接或間接在日本境內提呈發售或出售, 亦不得向任何日本人士或以任何日本人士為受益人而提呈發售或出售, 或向其他人士提呈發售或出售以供直接或間接於日本或向任何日本人士重新提呈發售或轉售, 惟在導致遵守相關日本政府及監管機構所頒佈及於相關時間生效的一切適用法律 法規及指引的情況下, 則屬例外 就此而言, 日本人士 指在日本居住之任何人士, 包括根據日本法律組成之任何法團或其他實體 英國 單位信託基金就英國 2000 年金融服務與市場法令 ( FSMA ) 而言為認可集體投資計劃 本章程將由基金經理或代表基金經理於英國分發, 並獲 Baring Asset Management Limited( 投資經理 ) 批准, 投資經理就 2000 年金融服務與市場法令 (FSMA) 而言獲英國金融市場行為監管局 ( FCA ) 認可及受其監管 4

94 各方名錄 基金經理 Baring International Fund Managers (Ireland) Limited 註冊辦事處 : 70 Sir John Rogerson s Quay Dublin 2 Ireland 基金經理之董事 Peter Clark James Cleary David Conway Barbara Healy Timothy Schulze Julian Swayne 投資經理 Baring Asset Management Limited 155 Bishopsgate London EC2M 3XY UK 保管人 Northern Trust Fiduciary Services (Ireland) Limited Georges Court Townsend Street Dublin 2 Ireland 行政管理人 Northern Trust International Fund Administration Services (Ireland) Limited Georges Court Townsend Street Dublin 2 Ireland 法律顧問愛爾蘭法律 Matheson 70 Sir John Rogerson s Quay Dublin 2 Ireland 核數師 PricewaterhouseCoopers Chartered Accountants One Spencer Dock North Wall Quay Dublin 1 Ireland 保薦經紀 Matheson 70 Sir John Rogerson s Quay Dublin 2 Ireland 請參閱本基金章程 基金經理 投資經理 保管人及行政管理人 一節以了解更多詳情 5

95 目錄 釋義... 7 緒言 分配資產及負債 投資政策..整體政策 風險考慮因素 借款 收費及開支 單位信託基金的行政管理 釐定資產淨值 股息政策 申請程序 單位認購 收款賬戶 贖回單位 合資格單位持有人及全部贖回 單位轉讓 單位轉換 基金經理 投資經理 保管人及行政管理人 報告及賬目 稅務 單位持有人會議 單位信託基金的存續期 一般資料 委託投票政策及程序 最佳執行 誘因 備查文件 附錄 I - 投資限制 附錄 II 合資格證券及衍生工具市場 附錄 III - 有效投資組合管理 霸菱大東協基金 霸菱亞洲增長基金 霸菱澳洲基金 霸菱歐洲基金 霸菱香港中國基金 霸菱國際債券基金

96 釋義 會計日期 會計期間 法案 行政管理人 行政協議 申請表格 澳元 基本貨幣 營業日 中央銀行 編製單位信託基金的年度賬目的每一年的 4 月 30 日, 或基金經理可不時決定的其他日子 於會計日期結束, 並於上一個會計期間結束後的日子開始的期間 1990 年單位信託基金法案 或其現行有效的任何修訂 Northern Trust International Fund Administration Services (Ireland) Limited 或為其繼任, 並且當時在取得中央銀行事先批准的情況下獲基金經理正式委任為單位信託基金的行政管理人的任何其他一名或多名人士 基金經理 保管人及行政管理人之間於 2011 年 7 月 1 日訂定的經修訂及重訂的行政服務協議 ( 可能經不時修訂或補充 ) 任何由基金經理不時規定投資者填妥的申請表格 澳洲的貨幣 章程所訂明的基金賬戶貨幣 就某一基金而言, 指愛爾蘭及英國的銀行均營業的任何日子 ( 星期六或星期日除外 ), 或相關基金的補充文件另行訂明的日子 愛爾蘭中央銀行 中央銀行的可轉讓證券集體投資計劃規例 2013 年中央銀行 ( 監督及執行 ) 法 ( 第 48(1) 章 ( 可轉讓證券集體投資計劃 ))2015 年規例 ( 可能經不時修訂 組成或替代 ), 以及由中央銀行根據該規例發行的現時有效的任何通知或指引 類別 類別貨幣 收款賬戶 基金中某一特定單位分類 類別指定的貨幣 由行政管理人營運的賬戶, 該賬戶接收所有認購款項, 而該賬戶亦支付所有贖回及分派所得款項, 有關事宜在標題 收款賬戶 下說明 資料保障法例 (i)1988 年及 2003 年 資料保障法令 或實施指令 95/46/EC 的任何其他立法或規例,(ii) 2011 年歐洲共同體 ( 電子通訊網絡及服務 )( 私隱及電子通訊 ) 規例,(iii) 於 2018 年 5 月 25 日及自該日起, 一般數據保護條例 ( 歐洲議會及理事會於 2016 年 4 月 27 日的 (EU) 2016/679 號規例 ) 以及任何隨後的國家資料保障法例及 (iv) 愛爾蘭資料保障專員署或其他相關監管機關 ( 包括但不限於歐洲資料保障委員會 ) 頒佈的任何指引及 / 或行為守則 交易日 (i) 每個營業日 ( 除非因章程訂明的原因而已暫停釐定基金的資產淨值, 而倘該日並非相關補充文件所定義的營業日, 基金經理將就此向基金的所有單位持有人給予事先通知 ), 或 (ii) 基金經理在保管人批准下已釐定的任何其他日子, 惟須事先通知基金的所有單位持有人, 以及每兩星期須至少有一個交易日 聲明 保管人 董事 就 稅務法 第 739D 節而言, 愛爾蘭稅務局規定的形式之有效聲明 Northern Trust Fiduciary Services (Ireland) Limited 或為其繼任, 並且當時在中央銀行的事先批准下獲正式委任為單位信託基金的保管人的任何其他一名或多名人士 基金經理的董事或任何獲正式認可的委員會或其受委人 EMIR 針對衍生工具 中央交易對手結算所和交易資料儲存庫的 歐洲市場基礎設施監管規則 (European Market Infrastructure Regulation), 規則對訂立任何形式的衍生工具合約的所有類型及規模的實體 ( 包括並無涉足金融服務的實體 ) 施加規定, 亦為中央交易對手結算所和交易資料儲存庫制定共同組織 業務操守及審慎標準 ESMA 指引 歐洲證券及市場管理局的期末報告 -Guidelines on sound remuneration policies under the UCITS Directive and AIFMD (ESMA/2016/411) 7

97 歐元 歐洲經濟區 獲豁免投資者 特別決議案 若干歐洲聯盟成員國的貨幣 歐盟成員國 ( 奧地利 比利時 保加利亞 克羅地亞 塞普勒斯 捷克共和國 丹麥 愛沙尼亞 芬蘭 法國 德國 希臘 匈牙利 愛爾蘭 意大利 拉脫維亞 立陶宛 盧森堡 馬爾他 波蘭 葡萄牙 羅馬尼亞 斯洛伐克 斯洛文尼亞 西班牙 瑞典 荷蘭及英國 ) 以及冰島 列支敦斯登及挪威, 以及可能不時加入歐洲經濟區的其他國家 獲准 ( 不論法例上或獲愛爾蘭稅務局明確特許 ) 於單位信託基金持有單位而毋須單位信託基金扣減或繳納愛爾蘭稅項的愛爾蘭居民, 如章程標題為 稅務 一節所詳述 ; 於單位持有人大會上, 或在所需情況下, 特定類別的單位持有人根據信託契據所載條文正式召開及舉行的會議上提呈, 並於該大會以贊成及反對該決議案的總票數的 75% 或以上大多數通過的決議案 FCA 英國金融市場行為監管局 FSMA 英國 2000 年金融服務與市場法令 基金 環球交易市場 代表基金經理將某一特定類別指定為子基金的單位信託基金子基金, 發行基金的款項將根據適用於該子基金的投資目標及政策分別匯集及作出投資, 有關子基金乃由基金經理在獲得中央銀行批准後不時成立 愛爾蘭證券交易所的環球交易市場 對沖類別 相關補充文件指明為對沖類別並將就該類別進行貨幣對沖的相關類別 ; 稅務海關總署 港元 中介人 英國稅務海關總署 香港的貨幣 包括下列人士.. (a) (b) 代表其他人士經營包含 ( 或包括 ) 自投資計劃收取付款的業務 ; 或代表其他人士持有投資計劃的單位 投資管理協議 投資經理 投資者資金規例 愛爾蘭 愛爾蘭居民 愛爾蘭稅務局 愛爾蘭證券交易所 基金經理 成員國 最低投資額 最低持有額 基金經理及 Baring Asset Management Limited 之間於 2015 年 7 月 21 日訂定的經修訂及重訂的投資管理協議 Baring Asset Management Limited 或為其繼任, 並且當時根據中央銀行的規定獲正式委任為單位信託基金的投資經理的任何其他一名或多名人士 基金服務提供者應遵循的 2013 年中央銀行 ( 監督及執行 ) 法 ( 第 48(1) 章 )2015 年投資者資金規例 愛爾蘭共和國 除非基金經理另行釐定, 就愛爾蘭稅務而言居於愛爾蘭的任何公司, 或居於或通常居於愛爾蘭的其他人士 請見下文 稅務 一節 負責稅務及關稅的愛爾蘭機關 Irish Stock Exchange plc 及其任何繼任人 Baring International Fund Managers (Ireland) Limited 或為其繼任, 並且當時按中央銀行規定獲正式委任為單位信託基金的基金經理的任何其他一名或多名人士 歐洲聯盟的成員國 章程可能訂明或基金經理可釐定並知會投資者的初次及 或其後認購金額 章程訂明單位持有人須持有的最低單位數目或價值 8

98 貨幣市場工具 資產淨值 經合組織 正式牌價表 普通決議案 中國 初期手續費 普遍於貨幣市場進行交易, 且具流通性及可於任何時候可準確釐定價值的工具 該等貨幣市場工具的例子包括證明書 存款及上市短期定息及浮息證券 ( 包括政府及企業票據及債券 ) 按本章程的 釐定資產淨值 一節所載原則決定的基金或相關類別的資產淨值 ( 視情況而定 ) 經濟合作及發展組織 截至本章程日期, 下列三十五個國家屬經合組織成員國..澳洲 奧地利 比利時 加拿大 智利 捷克共和國 丹麥 愛沙尼亞 芬蘭 法國 德國 希臘 匈牙利 冰島 愛爾蘭 以色列 意大利 日本 韓國 拉脫維亞 盧森堡 墨西哥 荷蘭 紐西蘭 挪威 波蘭 葡萄牙 斯洛伐克共和國 斯洛文尼亞 西班牙 瑞典 瑞士 土耳其 英國及美國 獲准在正式牌價表上市及在愛爾蘭證券交易所的環球交易市場買賣的證券或股份名單, 正式牌價表會每日公佈 於單位信託基金 基金的單位持有人大會上, 或在所需情況下, 特定類別的單位持有人根據信託契據條文召開及舉行的會議上提呈, 並於該大會以贊成及反對該決議案的總票數的簡單大多數通過的決議案 中華人民共和國 章程訂明於認購時收取的費用或特別決議案可能批准的較高金額 私隱聲明 基金經理就信託基金採用並經不時修訂的私隱聲明 現有版本將隨申請表格附上, 並可自 2018 年 5 月 25 日起透過網站 閱覽 基金章程 本文件, 可不時經修訂 補充或更改 QFII 規例 中華人民共和國的相關機關就合格境外機構投資者發行的辦法 贖回費用 認可交易所 規例 人民幣 章程訂明的每單位資產淨值的某百分比或特別決議案可能批准的較高金額 基金可能投資的任何受規管證券交易所或市場 該等證券交易所及市場的名單載於本章程內 UCITS 規例及中央銀行的可轉讓證券集體投資計劃規例 中華人民共和國的貨幣 RQFII 規例 中華人民共和國的相關機關就人民幣合格境外機構投資者發行的辦法 半年度會計日期 每年的 10 月 31 日 結算日期 相關交易日後三個營業日 SFTR 有關證券融資交易以及重新啟用及修訂 (EU)648/2012 號規例的透明度的歐洲議會及理事會規例 (EU) 2015/2365 號 特定美國人 (i) 身為美國公民或居民的個人 ;(ii) 在美國或根據美國或其任何州分的法律組成的合夥關係或公司 ;(iii) 信託 ( 如 (a) 美國境內的法院有權根據適用法律宣佈關於該信託的管理的絕大部份事宜的命令或判決 ; 及 (b) 一名或多名美籍人士有權控制該信託的全部重大決定, 或身為美國公民或居民的死者的遺產 ), 惟不包括 (1) 一家其股票在一個或多個具規模證券市場定期買賣的公司 ; (2) 與第 (i) 項所述的公司屬同一經擴大關聯集團 ( 定義見 美國國內收入法 第 1471(e)(2) 條 ) 的成員的任何公司 ;(3) 美國或其任何全資機關或機構 ;(4) 美國的任何州分 任何美國領土 任何前述者的任何政治分支機構, 或前述任何一項或多項的任何全資機關或機構 ;(5) 在 美國國內收入法 第 501(a) 條下獲豁免繳稅的任何組織, 或在第 7701(a)(37) 條界定的個人退休計劃 ; (6) 美國國內收入法 第 581 條界定的任何銀行 ;(7) 美國國內收入法 第 856 條界定的任何房地產投資信託 ;(8) 美國國內收入法 第 851 條界定的任何受監管的投資公司, 或在 1940 年投資公司法 (15 U.S.C. 80a-64) 下向美國證券交易監督委員會登記的任何實體 ;(9) 美國國內收入法 第 584(a) 條界定的任何共同信託基金 ;(10) 在 美國國內收入法 第 664(c) 條下獲豁免繳稅, 或 美國國內收入法 第 4947(a)(1) 條所述的任何信託 ;(11) 在美國或任何州分的法律下登記為證券 商品或衍生金融工具 ( 包括名義本金合約 期貨 遠期合約及期權 ) 的交易商的有關交易商 ; 或 (12) 美國國內收入法 第 6045(c) 條界定的經紀 此定義應按 美國國內收入法 詮釋 9

99 英鎊 瑞士法郎 補充文件 增購表格 英國的貨幣 瑞士的貨幣 由基金經理就某基金不時刊發的任何補充文件, 附於基金章程或其形式為單獨的文件, 而且在任何情況下均構成基金章程的一部分 任何為增購現有基金單位之申請表格, 該表格將由基金經理不時規定投資者填妥 TCA 1997 或經不時修訂的愛爾蘭 1997 年稅收合併法案 稅收法案 可轉讓證券 (a) 公司股份, 以及相當於公司股份的其他證券 ; (b) 債券及其他形式的有抵押品債項 ; (c) 任何其他附有權利透過認購或交換 ( 為有效投資組合管理的技巧及投資除外 ) 購買該等可轉讓證券的可流轉證券 信託契據 由作為基金經理的 Baring International Fund Managers (Ireland) Limited 及作為保管人的 Northern Trust Fiduciary Services (Ireland) Limited 之間訂定的日期為 2016 年 3 月 30 日的信託契據 ( 經修訂及重申, 並可經不時補充 ) UCITS UCITS 規例定義的可轉讓證券集體投資計劃 UCITS 指令 歐洲議會及理事會於 2009 年 7 月 13 日有關協調可轉讓證券集體投資計劃的法律 規定及行政條文的指令 2009/65/EC( 經歐洲議會及理事會於 2014 年 7 月 23 日有關保管人職能 薪酬政策及認許 ( 包括其強制執行規定 ) 指令 2014/91/EU 修訂 ) UCITS 規例 2011 年歐洲共同體 ( 可轉讓證券集體投資計劃 ) 規例 ( 經修訂 ) 以及據此作出的所有適用中央銀行條例或施加的條件或廢除的條文, 可經不時修訂 單位 基金資產中不分割份數資產 美國 美國, 其領土 屬地及所有受其司法管轄的地區 ( 包括波多黎各聯邦 ) 美籍人士 單位持有人 單位信託基金 美元 估值點 任何美國公民或居民 ; 根據美國或美國任何州份法例成立或組成的任何企業 信託基金 合夥公司或其他實體 ; 或不論來源, 其收入須繳交美國聯邦所得稅的任何遺產或信託基金 該詞亦包括符合 1933 年美國證券法 ( 經修訂 ) 所公佈的 S 規例中 美籍人士 一詞的定義的任何人士 在當時由單位信託基金或代其保存的單位持有人名冊中登記為單位持有人的人士 霸菱國際傘子基金 美國的貨幣 每一交易日中午 12 時正 ( 愛爾蘭時間 ) 基金經理在獲得保管人批准後, 可在向單位持有人發出合理的事先通知後更改基金的估值點, 惟在任何情況下, 交易將需以遠期定價方式進行 10

100 緒言 單位信託基金乃根據由 Baring International Fund Managers (Ireland) Limited 作為基金經理 ( 基金經理 ) 及 Northern Trust Fiduciary Services (Ireland) Limited 作為保管人 ( 保管人 ) 之間訂定的日期為 1990 年 11 月 22 日的信託契據 ( 經日期為 2016 年 3 月 30 日的信託契據修訂及重申 ( 可能會不時作出補充 )) 成立, 並獲中央銀行根據 UCITS 規例認可為 UCITS 單位信託基金的目標是根據分散風險的原則營運, 將從公眾籌集所得的資本, 根據 UCITS 規例集體投資於可轉讓證券及 / 或其他流動的金融資產 單位信託基金以傘子基金的形式組成 信託契據規定單位信託基金可發售獨立的基金 各基金的投資組合將截然不同 單位信託基金已取得中央銀行的批准, 可成立下文所載的基金 基金的特定資料將載於各補充文件 單位信託基金的基金霸菱大東協基金霸菱亞洲增長基金霸菱澳洲基金霸菱歐洲基金霸菱香港中國基金霸菱國際債券基金 在獲得中央銀行的事先批准下, 基金經理可不時成立一個或多個新基金, 而基金的投資政策及目標須於補充文件概述, 並連同初次發售期的詳情 每單位的初次認購價以及基金經理認為適當或中央銀行要求載列的一個或多個新基金的其他相關資料 每份補充文件不論是否載於本章程當中作為一份文件, 均應構成本章程的一部份, 並應與本章程一併閱讀 此外, 基金經理可於某基金增設額外類別, 以提供不同收費及 / 或費用及 / 或經紀佣金安排, 惟中央銀行須獲事先通知, 並事先批准增設任何有關額外類別 分配資產及負債 根據信託契據, 保管人須以下列方式為各單位系列設立獨立基金並分開記錄.. - (a) 各基金的記錄及賬戶應予以獨立存置, 並應以基金經理及保管人不時釐定的貨幣存置 ; (b) 發行每一類別的所得款項 ( 不包括初期手續費 ) 應撥歸予為該類別設立的基金, 而歸屬予該基金的資產及負債, 以及收入及支出均應撥歸予該基金, 惟須遵守信託契據條文 ; (c) 如另一資產衍生任何資產, 該衍生資產應撥歸予衍生該資產的相同基金, 而對資產進行每次重新估值時, 價值的上升或下跌均應撥歸相關基金 ; (d) 在保管人不視任何資產為歸屬予某一 ( 或多個 ) 特定基金時, 保管人可酌情釐定任何該等資產在基金之間分配的基準 ( 惟須取得基金經理及核數師的批准 ), 而保管人應有權利在任何時間及不時改變有關基準 ( 惟須取得基金經理及核數師的批准 ), 惟若資產在作出分配時, 按其資產淨值比例於基金之間作出分配的情況下, 則毋須取得基金經理及核數師的批准 ; (e) 保管人可酌情釐定任何該等負債在基金之間分配的基準 ( 包括在許可情況下, 進行隨後重新分配的條件 )( 惟須取得基金經理及核數師的批准 ), 並應有權利在任何時間及不時改變有關基準, 惟若負債分配予 ( 一個或多個 ) 保管人認為與其有關的基金, 或如惟保管人認為該負債並未與任何特定基金有任何關連, 並按其資產淨值比例於所有相關基金之間作出分配的情況下, 則毋須取得基金經理及核數師的批准 ; (f) 如因債權人針對信託基金的若干資產作出的法律程序或其他事宜, 有關負債將以其本應根據上文 (e) 段承擔以外的方式承擔 ( 或任何類似情況 ), 則保管人可在取得基金經理及核數師批准的情況下, 將任何資產在基金之間來回轉讓 ; 及 (g) 在不抵觸上文 (f) 段的情況下, 各基金的資產應專屬於該基金, 應獨立於其他基金, 並不應用作直接或間接清償任何其他基金的負債或索償, 並不應為任何該等目的而使用 投資政策..整體政策 基金將按照附錄 I- 投資限制, 投資於在認可交易所上市或買賣的可轉讓證券及 / 或其他流動資產, 並在相關補充文件規定的範圍內, 投資於其他投資基金的單位 / 股份 11

101 此外, 僅在投資經理認為符合基金投資政策的範圍內, 基金可以為有效投資組合管理而運用附錄 III- 有效投資組合管理中所述的投資技巧及工具 該等投資技巧及工具可包括金融衍生工具 僅在投資經理認為符合基金投資政策的範圍內, 以及根據中央銀行的要求, 基金亦可運用金融衍生工具作投資目的 投資經理將運用風險管理程序, 使其能夠準確地計量 監控及管理金融衍生工具所附帶的風險, 有關此程序的詳情已向中央銀行提供 投資經理不會運用尚未納入風險管理程序的金融衍生工具, 直至提交並獲中央銀行批准經修訂的風險管理程序為止 投資者務須特別注意, 除下文所述任何投資外, 各基金的投資組合可包括存款 浮息工具及短期票據 ( 包括國庫券 存款證及銀行承兌匯票 ) 以及其他輔助流動資產 除非基金經理認為該等投資符合單位持有人最佳利益, 否則基金經理並不預期以此形式保留大量資產 如基金的投資政策規定將該基金的某特定百分比投資於某特定類別或種類範圍的投資, 該項規定將不適用於特別市況, 在該等情況下, 可投資於基金一般投資以外的資產類別, 從而減低基金的市場風險 特別市況的例子包括經濟狀況 政治風險或世界事件 不明朗情況下的較高下行風險或相關市場因突發事件 ( 例如政治動盪 戰爭或大型財務機構破產 ) 而關閉 於該等期間, 基金可暫時將其高達 100% 的總資產投資於現金 存款 國庫券 政府債券或短期貨幣市場工具, 或大額持有現金及現金等價物 每項基金均可投資於其他集體投資計劃 投資經理僅在其認為有關投資不會禁止基金向單位持有人提供本章程及各相關補充文件所述的流動性水平時, 方會投資於封閉式集體投資計劃 基金可投資的封閉式集體投資計劃應包括但不限於在紐約證券交易所 愛爾蘭證券交易所及倫敦證券交易所上市或買賣的封閉式集體投資計劃 倘若符合投資目標及政策, 基金亦可投資於單位信託基金的其他基金 只有在某基金投資的基金本身並無於單位信託基金的任何其他基金中持有單位的情況下, 該基金方可投資於單位信託基金的其他基金 投資於單位信託基金其他基金的任何基金, 將投資於不收取管理或投資管理費的類別 基金作出任何有關交叉投資, 均不會收取認購 轉換或贖回費 基金亦可透過投資於將遵循中央銀行的可轉讓證券集體投資計劃規例的規定之金融指數 ( 例如透過金融指數的期貨或掉期 ), 投資於每一基金的投資政策部份中所指的部分或全部資產 該等指數可能包括但不限於富時中國 A50 指數 (FTSE China A50; 於每季重新調整 ) FTSE Bursa Malaysia KLCI( 於每半年重新調整 ) MSCI 台灣指數 (MSCI Taiwan Index; 於每季重新調整 ) 標準普爾 500 指數 (S&P 500 Index; 於每季重新調整 ) 概不會運用每日重新調整的指數 與投資於金融指數有關的成本可能會受相關指數的重新調整次數影響 基金所持的任何金融指數詳情將由投資經理按要求向單位持有人提供, 並將於單位信託基金的半年度及年度賬目中載列 如相關指數的特定成分比重超出可轉讓證券集體投資計劃的投資限制, 投資經理將以補救有關情況為其首要目標, 並將單位持有人及相關基金的利益計入考慮 基金可投資於中國 A 股或中國 B 股證券, 惟該等投資須符合中央銀行及中華人民共和國相關監管機關的規定 除非基金的投資目標及政策另有明確披露, 否則基金無意將多於其淨資產的 10% 直接或間接投資於中國 A 股及 B 股 如相關基金有意將多於其淨資產的 10% 投資於中國 A 股及 B 股, 將須向投資者發出最少一個月事先通知, 而本章程亦將作出相應更新 截至本基金章程日期, 概不擬運用回購協議 逆回購協議或代表任何基金進行借股 如基金確實打算運用該等技巧及工具, 單位持有人將獲通知, 而基金章程亦會根據中央銀行的規定予以修訂 基金的投資目標及政策載於該基金的補充文件 每項基金的投資目標不會在未經普通決議案批准的情況下隨時更改 如對投資政策的變更屬重大性質, 必須以變更相關的普通決議案批准, 方可作出變更 如在作出某一變更後將對相關基金的資產類別 信貸質素 借款限制或風險概況構成重大更改, 則該變更屬重大變更 如改變投資目標及 或重大改變投資政策, 基金經理將給予合理通知期, 而單位信託基金將為單位持有人於此等變動實施前贖回彼等的單位提供方便 概不保證或擔保基金的投資將取得成功或將達致其投資目標 請參閱本章程中的 風險考慮因素 一節, 以了解投資於該基金時應考慮的因素詳情 有效投資組合管理技巧 誠如章程附錄 III 有效投資組合管理 所述以及在中央銀行規定的限制內, 每項基金均可運用不同的投資技巧 ( 包括認股權證 交易所買賣期貨及期權 貨幣遠期合約 掉期協議 差價合約 指數掛鈎票據, 以及股份及商品指數期貨合約 ) 作有效的投資組合管理以及作對沖目的 投資者亦應參閱標題為 風險考慮因素 一節, 以了解使用有效投資組合管理技巧的相關風險, 當中包括對手方風險及利益衝突風險 概不保證投資經理將成功運用該等技巧 使用衍生工具 投資者應注意, 基金可在中央銀行規定的限制內, 為有效投資組合管理 投資及 / 或對沖目的而主要進行金融衍生工具交易 可根據中央銀行的規定使用衍生工具 (i) 作對沖目的及 / 或 (ii) 作投資目的 舉例來說, 基金可使用衍生工具 ( 僅以基金的投資政策准許的相關資產或界別為基礎 )(i) 以對沖貨幣風險,(ii) 以在投資經理認為衍生工具投資於相關資產較直接投資更具價值時候, 作為在相關資產持倉的替代,(iii) 以根據投資經理對利率的觀點而調整基金的利率風險, 及 / 或 (iv) 以對符合基金投資目標及政策的特定指數的成份及表現取得投資參與 12

102 投資經理可決定不運用任何此等工具或策略 此外, 投資經理可按照中央銀行的規定決定運用下文所列以外的工具 除了附錄 III- 有效投資組合管理所述獲准為有效投資組合管理及對沖目的而使用的投資技巧外, 若干基金 ( 誠如下文 衍生工具資格表 中所詳述 ) 亦可大量使用衍生工具以達致其投資策略 在章程附錄 I 所列的投資限制的規限下, 該等基金可進行於下表中分類為合資格的衍生工具種類的交易 衍生工具資格表 : 衍生工具種類的資格期貨期權認股權證 貨幣遠期合約 掉期協議 差價合約 霸菱大東協基金是是是是是是 霸菱亞洲增長基金是是是是是是 霸菱澳洲基金是是是是是是 霸菱歐洲基金是是是是是是 霸菱香港中國基金是是是是是是 霸菱國際債券基金是是是是是是 期貨及期權 倘若符合資格, 若干基金可使用證券 指數 貨幣及利率期貨 銷售期貨合約規定賣方有義務以指定的價格在指定的交割月份交付在合約中要求的金融工具類型 購買期貨合約規定買方有義務以指定的價格在指定的交割月份支付及提取在合約中要求的金融工具類型 倘若符合資格, 若干基金可使用股票指數 期貨 掉期及貨幣的期權 投資的認購期權 ( 可以是備兌或無備兌 ) 是一種合約, 根據該合約, 買方作為所付溢價的回報, 有權在期權的期限內隨時以指定的行使價購買期權的相關證券 認沽期權 ( 可以是備兌或無備兌 ) 是一種合約, 讓買方有權在期權的期限內以指定的行使價出售相關證券, 作為所付溢價的回報 倘提供期權的一方並無持有根據期權可購買 ( 認購 ) 或出售 ( 認沽 ) 的相關證券, 該期權為無備兌 若干基金可使用上文所述的期貨及期權對沖利率風險, 平衡存續期, 以及綜合創造對若干證券的投資參與 期貨及期權的相關資產須為基金可根據其投資目標及政策直接投資的工具, 即可轉讓證券 集體投資計劃 ( 包括 ETF) 貨幣市場工具 股票或商品指數 外匯及貨幣 掉期 倘若符合資格, 若干基金可使用貨幣 利率及證券的掉期協議 ( 包括總回報掉期及差價合約 ) 貨幣方面, 基金可以運用貨幣掉期合約, 讓基金可以以固定匯率的貨幣交換浮動匯率的貨幣, 或以浮動匯率的貨幣交換固定匯率的貨幣 此等合約讓基金可管理其於當中持有投資的貨幣的風險 就此等工具而言, 基金的回報是按貨幣匯率相對雙方協定的固定貨幣額的變動計算 利率方面, 基金可以運用利率掉期合約, 讓基金可以以浮動利率計息的現金流交換以固定利率計息的現金流, 或以固定利率計息的現金流交換以浮動利率計息的現金流 此等合約讓基金可管理其利率風險 就此等工具而言, 基金的回報是按利率相對雙方協定的固定利率的變動計算 證券及證券指數方面, 基金可以運用總回報掉期合約, 讓基金可以以浮動利率計息的現金流交換基於股票或固定收益工具或證券指數的總回報的固定現金流, 或以基於股票或固定收益工具或證券指數的總回報的固定現金流交換以浮動利率計息的現金流 此等合約讓基金可管理其在若干證券或證券指數的風險 就此等工具而言, 基金的回報是按利率相對有關證券或指數回報的變動計算 該等掉期合約的對手方詳情載列如下 所有掉期交易的對手方將為受到審慎監管的機構, 並且屬於中央銀行批准的類別, 不會對基金的資產擁有全權管理權 投資經理在訂立掉期時可全權酌情決定對手方的委任以推進基金的投資目標及政策, 惟須符合該等條件 由於在章程發佈日期尚未挑選對手方, 而且對手方可不時變動, 故並不可能完全列出所有對手方 掉期的相關資產須為基金可以根據其投資目標及政策直接進行投資的工具 貨幣遠期合約 貨幣遠期合約是在未來的某個日期以一種貨幣交換另一種貨幣的協議 - 例如, 以一定數量的歐元交換一定數量的美元 日期 ( 可能是未來的任何約定的固定日數 ) 換取的貨幣數量及進行交換的價格, 在訂立合約時磋商並於合約期內固定 貨幣遠期合約可以以可交割或不可交割的形式買入或賣出 13

103 基金亦可使用不可交割遠期 不可交割遠期是強勢貨幣與新興貨幣之間匯率的雙邊財務期貨合約 於到期時, 不會交割新興貨幣, 取而代之的是以強勢貨幣對合約的財務業績進行現金結算 可轉換工具 可轉換票據 ( 即可轉換債券 強制可轉換債券 可轉換優先股及股票掛鈎票據 ) 是發行人的一般長期債務, 可按照既定匯率轉換為發行人的普通股 與所有債務證券一樣, 可轉換工具的市價往往在利率上升時下降, 相反, 在利率下降時上升 可轉換工具是有權轉換為固定數目股份的證券 因此, 可轉換工具具備與債務及股票相似的特色 當可轉換工具的股票價值低, 可轉換工具的價值表現會類似債務工具 隨著股票價值上升, 可轉換工具的價值表現會與股票較為相似 可轉換工具的倉盤或會附有期權 ( 有關詳情載於上文 ), 但不會構成重大槓桿 股票相關工具 基金於中央銀行所頒佈限制下可買賣股票指數及股票相關工具, 包括但不限於低行使價期權 (LEPO s) 優化投資組合作上市證券 (OPALS) 表現相關股票證券 (PERLES) 股票指數票據 股票指數期貨票據 可分享利潤收據及票據, 上述工具可能協助有關基金達致投資目標 倘若運用 LEPO s OPALS 及 PERLES, 有關工具將於基金獲准投資的一個或多個證券交易所或市場 ( 載於附錄 II- 合資格證券及衍生工具市場 ) 上市或買賣 儘管上述工具的價值與相關股票或股票指數掛鈎, 於各情況下有關工具仍將成為發行人的可轉讓證券 實際上, 相關基金將會向發行人購買該等工具, 而該工具將會追蹤相關股票或股票指數 謹請注意, 有關基金就上述工具所面對的風險將與工具發行人相關 然而, 基金亦會面對相關證券本身的經濟風險 有關基金所買賣的任何 LEPO 將可於其期限內隨時行使, 並以現金結算 認股權證 認股權證乃用作取得對特定資產類別的投資參與 認股權證是賦予權利 ( 而非義務 ) 在到期前按某特定價格購買或出售證券的衍生工具 基金可以買入認股權證以提供一個高效率及流通的機制, 以毋需買入或持有證券的方式投資於證券 總回報掉期 基金就總回報掉期的投資上限為 200% 的總投資上限 然而, 投資經理預期基金對總回報掉期的投資大可能維持在下表所規定的範圍內 基金名稱 以名義總和計算的投資 霸菱大東協基金基金資產淨值的 0%-10% 霸菱亞洲增長基金基金資產淨值的 0%-10% 霸菱澳洲基金 基金資產淨值的 0%-10% 霸菱歐洲基金 基金資產淨值的 0%-10% 霸菱香港中國基金 基金資產淨值的 0%-10% 霸菱國際債券基金 基金資產淨值的 0%-70% 衍生工具風險管理 投資經理採用風險管理程序, 讓其可準確地量度 監察及管理與金融衍生工具相關的各種不同風險, 此程序的詳情已向中央銀行提供 基金不會使用並未列入投資經理風險管理程序的衍生工具, 直至經修訂的風險管理程序已向中央銀行提交為止 使用衍生工具 ( 不論是用作對沖及 / 或投資目的 ) 可能使基金須承受下文 風險考慮因素 一節所述的風險 衍生工具 ( 指數基礎衍生工具除外 ) 相關資產所涉及的持倉 ( 不論是用作對沖及 / 或投資目的 ), 連同直接投資所產生的持倉, 不會超過附錄 I 所載的投資限額 除非有關的補充文件另有規定, 否則基金將採用承擔法計算其整體風險, 詳情載於投資經理的風險管理程序當中 在任何情況下, 基金的整體風險均不會超過其資產淨值的 100% 貨幣對沖 基金經理可不時全權酌情決定 ( 及毋須通知單位持有人 ) 發行以基金的基本貨幣以外的貨幣計值的對沖類別 除非相關補充文件另有說明, 對沖類別提供下列貨幣以供認購, 惟各基金不得以基金的基本貨幣提供對沖類別 : 澳元 瑞士法郎及人民幣 該等類別的外幣風險將通常對沖為基本貨幣 儘管不一定就基金內的每一類別 ( 例如, 類別貨幣與基本貨幣相同的類別 ) 使用對沖策略, 惟執行該等策略所用的金融工具須為相關基金整體的資產 / 負債 然而, 相關金融工具的收益 虧損及成本將只會累計至相關類別 投資經理會將對沖限於對沖類別單位的貨幣風險範圍內, 並且投資經理須設法確保有關對沖不 14

104 得超過各相關類別資產淨值的 105%, 以及不得低於相關類別應佔資產淨值的 95% 投資經理將監察對沖以確保有關對沖接近 100%, 並將檢討有關對沖以確保遠超相關類別資產淨值 100% 的倉盤不會每月結轉 有關外匯對沖的對手方風險須時刻符合 UCITS 規例及中央銀行的規定 預期以基本貨幣以外的貨幣計值的類別一般不會因為對沖策略而產生槓桿, 而單位類別對沖交易不得用作投機目的 由基金所持資產以及由基金訂立的任何貨幣交易 ( 與類別有關者除外 ) 所產生的基金貨幣風險, 不會分配至不同類別, 並將按比例分配至該基金的所有類別 倘就某類別訂立貨幣對沖交易 ( 不論有關風險是否屬於在類別或基金層面訂立的交易 ), 自該等交易產生的貨幣風險將僅歸於該類別的利益, 而不得與就其他類別訂立的交易所產生的貨幣風險合併計算或互相抵銷 每一基金的經審核財務報表將顯示對沖交易如何使用 貨幣代理 投資經理可委任第三方代表投資經理擔任貨幣代理 ( 貨幣代理 ) 貨幣代理將在投資經理的指導下, 在投資組合及 / 或對沖類別的層面執行貨幣對沖計劃 投資經理日後亦可選擇自行進行對沖或委任其他方擔任貨幣代理 單位上市 基金經理可決定申請將若干單位納入正式牌價表, 並可在愛爾蘭證券交易所的環球交易市場買賣 投資者應聯絡投資經理以確定基金中的哪些類別可在任何特定時間在愛爾蘭證券交易所供認購及 / 或上市 基金經理預料, 基金獲准在正式牌價表上市及在愛爾蘭證券交易所的環球交易市場買賣的任何上市單位, 均不會發展活躍的次級市場 基金內多個類別可能會在不同時間推出及上市, 因此, 在推出某類別時, 與該類別有關的匯集資產可能已開始進行買賣 有關此方面的進一步資料, 單位信託基金將應要求向潛在投資者提供最近期的中期及年度報告 風險考慮因素 概不保證基金的投資會成功, 亦不保證會達到基金的投資目標 基金投資組合的價值可能因下文任何主要風險因素而下跌, 故閣下在單位信託基金的投資可能蒙受損失 概不保證償還本金 投資於基金的單位並不構成完整的投資計劃 投資者或須以其他類型的投資補足基金的投資 於基金的投資不應佔投資組合的重大部份, 及可能並不適合所有投資者 基金單位的銷售與贖回價格之間於任何特定時間的差異, 表示投資應被視為中長期投資 儘管部份風險與若干基金更為相關, 但在風險與基金有關的情況下, 投資者仍應確保其理解本章程所述的所有風險 此外, 相關補充文件在相關情況下提供與個別基金有關的特定風險的更多資料 投資者應閱讀所有風險考慮因素, 以決定投資者有意投資的特定基金是否適合 以下風險考慮因素詳列與投資於單位信託基金相關的特定風險, 投資者應與其專業顧問討論 以下風險考慮因素並非與投資於單位信託基金或個別基金相關的所有風險的全面概要 從資本扣除的收費 每一基金一般以收入支付其管理費及其他費用及開支 然而, 如沒有充足收入, 基金經理可從資本中, 及從已扣除變現及未變現資本虧損後的變現及未變現資本收益中支付其部份或全部管理費及其他費用及開支 如管理費及其他費用及開支乃自基金的資本而非相關基金所產生的收入中扣除, 則增長可能會受到限制, 並可能會侵蝕資本, 原因是相關基金可供日後投資及資本增長的資本可能減少, 但這亦可能導致股息分派的收入增加 因此, 在贖回所持單位時, 單位持有人未必收回投資的全額 從資本中收取費用及開支的政策亦可能降低閣下投資的資本價值, 並限制未來資本增長的潛力 由於費用及開支可能會以資本支付, 投資者應注意, 缺乏潛在的資本增長可能造成資本侵蝕的風險較大, 以及由於資本侵蝕, 基金未來回報的價值亦可能減少 因此, 在基金的存續期期間作出的股息分派必須被視為資本退還的一種 以此方式收取費用及開支的理由是此舉會增加基金的可分派收入 對沖類別的分派金額及資產淨值可能因對沖類別的參考貨幣與基金的基本貨幣之間的利率差異而受到不利影響, 導致從資本中支付的分派金額增加, 因此較其他非對沖類別出現較大的資本侵蝕 組合交易 基金經理及身為基金經理聯營公司的基金經理受委人或會透過或與經理任何聯營公司為單位信託基金買賣證券及其他投資 此外, 在 1942 年至 2010 年 中央銀行法案 (Central Bank Acts, 1942 to 2010) 條文規限下, 單位信託基金任何現金可存放於保管人或保管人的任何聯營公司, 或投資於保管人或保管人任何聯營公司發行的存款證或銀行票據 銀行業務及類似交易亦可與或透過保管人或保管人任何其他聯營公司進行 15

105 基金經理 投資經理 行政管理人 保管人或與基金經理 投資經理 行政管理人或保管人有關或與其各自的高級職員 董事或行政人員有關的實體, 並無被禁止買賣基金的投資, 惟交易須按公平原則磋商 該等交易必須符合單位持有人的最佳利益 基金經理 投資經理 行政管理人 保管人或與基金經理 投資經理 行政管理人或保管人或其各自的高級職員 董事或行政人員有關的實體, 毋須就所產生的任何利益向單位持有人交代, 而相關人士可保留任何該等利益, 惟須符合以下條件 : (i) (ii) (iii) 獲保管人 ( 或如屬涉及保管人的交易, 則基金經理 ) 認可為獨立及合資格的人士證實進行交易的價格屬公平 ; 或交易乃按照有組織投資交易所規則規定的最佳條款進行 ; 或倘上文 (i) 或 (ii) 項所載條件並非切實可行, 保管人 ( 或如屬涉及保管人的交易, 則基金經理 ) 信納該等交易符合按公平原則磋商的原則, 並且符合單位持有人最佳利益 投資經理就本章程及相關事宜代表基金經理行事, 投資經理或其任何聯繫人士可能擁有單位信託基金的單位的權益或持倉 投資經理並無就投資於單位信託基金代表任何其他人士行事, 亦無向任何其他人士給予建議或視之為其客戶 ( 除非投資經理與該人士之間適用其他安排 ), 故不會負責向任何有關其他人士提供向其客戶提供的最佳執行或任何其他保障 對手方風險 對手方風險 ( 亦稱為違責風險 ) 為組織未能就債券或其他交易或買賣支付其應支付的款項的風險 在對手方未能及時履行其責任及基金被延遲或阻止行使其於組合投資的權利的前提下, 基金持倉的價值可能會下跌 失去收入及 或產生與維護其權利有關的成本 信貸風險 - 一般 基金可能須承受基金可能投資的債務證券發行人之信貸 違責風險 當基金投資於由銀行或其他種類的財務機構擔保的證券或其他工具時, 概不保證該擔保人本身不會面對信貸困難, 這可能導致該等證券或工具的評級下降, 或損失部份或全部投資於該等證券或工具的金額或到期支付該等證券或工具的款項 貨幣風險 基金的相關投資可能以基金的基本貨幣以外的貨幣計值 此外, 基金的類別可指定以基金的基本貨幣以外的貨幣結算 基金的資產淨值可能因該等貨幣與基本貨幣之間的匯率波動及匯率管制的變動而受到不利影響 除非某類別明確指明為對沖類別, 否則並無採取任何措施, 以減輕單位計值貨幣與基本貨幣之間匯率波動的影響 網絡安全風險 單位信託基金及其服務提供者容易受到網絡安全事件的運營及資訊安全及相關風險的影響 一般而言, 網絡事件可來自蓄意攻擊或非故意的事件 網絡安全攻擊包括 ( 但不限於 ) 未經授權進入數碼系統 ( 例如, 通過 黑客入侵 或惡意軟件編碼 ), 以盜用資產或敏感資料, 破壞數據或導致操作中斷 網絡攻擊亦可能以無需未經授權進入的方式進行, 例如對網站進行阻斷服務攻擊 ( 即令到目標用戶無法使用服務 ) 影響基金經理 投資經理 行政管理人或保管人或其他服務提供者 ( 例如財務中介機構 ) 的網絡安全事件可造成干擾和影響業務運作, 可能導致財務損失, 包括干擾行政管理人計算資產淨值的能力 ; 有損相關基金投資組合買賣 ; 單位持有人無法與單位信託基金進行業務 ; 違反適用私隱 數據安全或其他法律 ; 監管罰款及處分 ; 聲譽受損 ; 報銷或其他補償或修正成本 ; 法律費用 ; 或額外合規成本 網絡安全事件可能造成類似的不利後果, 影響單位信託基金投資的證券發行人 單位信託基金與之進行交易的對手方 政府及其他監管機構 交易所及其他金融市場營運商 銀行 經紀商 交易商 保險公司及其他財務機構及其他方 雖然已制定了資訊風險管理系統及業務持續計劃, 以減低與網絡安全相關的風險, 但任何網絡安全風險管理系統或業務持續計劃本身存在限制, 包括可能未有識別若干風險 基金終止風險 倘基金提早終止, 基金經理將須按單位持有人於基金資產的權益比例向彼等分派資產 在作出有關出售或分派時, 基金所持有若干投資的價值可能低於最初投資成本, 導致單位持有人出現重大虧損 此外, 任何尚未全面攤銷的基金相關組織成本將從基金當時的資本中扣除 基金可能被終止的情況載於標題為 單位信託基金的存續期 一節 通脹風險由於通脹導致金錢貶值, 以致基金資產或基金投資所得收入的實際價值可能會在日後下跌 在通脹加劇時, 除非基金投資組合的實際價值增幅高於通脹率, 否則其實際價值將隨之而下降 投資於歐洲 - 歐洲主權債務危機 16

106 部份基金可對歐洲作出大額投資 鑑於若干歐洲國家的財政狀況及對該等國家主權債務的關注, 歐元區危機繼續帶來不明朗因素, 且並只有少數甚至並無長久的解決方法 任何不利事件 ( 例如某一歐洲國家的信貸評級下降 歐元區內的一個或多個主權國家違約或破產 部份或全部相關歐盟成員國撤出歐元區, 或任何上述多項同時發生或其他經濟或政治事件 ) 均可能對基金的價值構成負面影響 鑑於對歐元區內若干國家的主權債務風險的持續關注, 基金於該地區的投資可能須承受與歐洲投資相關的較高波動性 流通性 貨幣及違責風險 如若干國家停止使用歐元作為其當地貨幣 歐盟成員國脫離歐元或歐元解體, 則或需要對部份或所有以歐元計值的主權債務 企業債券及證券 ( 包括股本證券 ) 重新計值 這或會對基金的歐元計值資產的流通性及持有該等資產的基金表現造成不利影響 歐元區解散或脫離歐元亦可能會對基金帶來額外的表現 法律及營運風險, 並可能會對受現有歐盟成員國的法律監管的若干協議條款的運作帶來不明朗因素 儘管多個歐洲國家的政府 歐洲委員會 歐洲中央銀行 國際貨幣基金組織及其他機構正採取多項措施 ( 例如進行經濟改革及對市民實施緊縮措施 ) 以解決現有的財政狀況, 但或會有該等措施的效果可能未如理想的憂慮, 故歐洲日後的穩定性及增長仍屬未知之數 如有出現危機, 經濟復甦可能需時, 而日後增長亦將會受到影響 基金的表現及價值或會因任何或所有上述因素而受到不利影響, 除上述各項外, 亦可能會因潛在歐洲危機而產生預期以外的後果, 繼而對基金的表現及價值構成不利影響 此外, 亦可能會有大量投資者會在同一時間決定贖回基金投資 投資者亦應緊記, 在歐洲發生的事件可能會蔓延至世界其他地區, 影響全球金融體系及其他地方經濟, 以至最終對基金的表現及價值構成不利影響 波動性及流動性風險 基金投資的債務工具未必在活躍的次級市場上買賣 此外, 若干市場的債務工具可能較更成熟市場承受較高的波動性及較低的流動性 於該等市場買賣的證券價格可能受到波動 該等證券的買賣差價可能重大, 基金可能招致重大交易成本 倘某一特定證券或工具難以進行購買或出售, 則存在流動性風險 如交易規模佔該證券的平均成交量的相對大部份, 或如相關市場缺乏流動性 ( 正如多個私下洽商的衍生工具的情況 ), 或未能在有利時間或以有利價格進行交易或進行平倉 有關投資經理如何管理流動性風險的進一步資料載於下文標題為流動性風險管理下 市場干擾風險 市場受到干擾時, 基金或會承受招致龐大虧損的風險 干擾可包括金融交易所買賣暫停或受到限制及某一市場行業的干擾可能對其他市場行業造成不利影響 倘若此情況發生, 基金的虧損風險可能會增加, 理由為許多倉盤或會變得缺乏流通性, 以致其難於出售 基金可用的融資亦會被減少, 可使基金較難進行買賣 概無投資保證 基金投資與存款於銀行賬戶的性質並不相同, 不受任何政府 政府機關或其他可能為銀行存款戶口持有人提供保障的保證計劃所保障 基金投資須承受價值波動, 而閣下所得可能少於投資本金 英國脫歐的潛在影響 於 2016 年 6 月 23 日, 英國舉行公投並投票決定脫離歐盟, 已導致英國以至歐洲各地的金融市場出現波動, 亦可能導致該等市場的消費者 公司及財務信心減弱 現階段尚未清楚英國脫離歐洲聯盟的程度及過程, 以及英國與歐洲聯盟之間將制定的較長期的經濟 法律 政治及社會框架, 故可能導致英國以至歐洲市場在一段時間內的政治及經濟持續不明朗以及出現波動加劇的時期 此中至長期的不明朗情況可能對整體經濟以及基金執行其各策略及收取可觀回報的能力產生不利影響 脫離歐洲聯盟亦可能導致英國法律和法規出現重大改變 目前無法評估這些變動對單位信託基金 其投資或單位持有人情況造成的影響 投資者應注意, 公投後產生的此等及其他類似後果可能會對單位的價值及單位信託基金的表現產生不利影響 暫停買賣 證券交易所一般有權暫停或限制任何於該交易所買賣的工具之買賣 政府或監管機構亦可實施可能影響金融市場的政策 暫停買賣可令投資經理或相關基金經理無法清盤, 因而令基金蒙受虧損, 並可能對基金造成負面影響 稅務 基金註冊 推廣或投資的任何司法管轄區的稅務法規或其詮釋的任何變動, 均可能影響基金的稅務狀況, 並繼而影響基金於受影響司法管轄區的投資的價值, 以及基金達成其投資目標及 或更改單位持有人除稅後回報的能力 基金可能須就其投資所得的收入及 或收益繳納預扣稅或其他稅項 若干投資本身可能須與其所持的相關投資繳納相若稅項 在發達或新興市場的任何投資均可能須繳納新稅項, 或適用於任何所得收入或資本收益的稅率或會因適用法律 規則或規例 ( 或其詮釋 ) 的任何日後或追溯性變更而增加或減少 基金可能或可能未能受惠於愛爾蘭與具備稅務居民地位的投資所在國家之間的於雙重稅務協議下的稅項寬免 17

107 若干國家的稅制可能界定較不清晰, 或須受未能預計的變更影響, 並可能容許追溯稅項, 故基金可能須承擔當初並未合理預期的當地稅務責任 該不明朗因素可能使任何相關基金需要在計算每單位資產淨值時就外國稅項作出大額撥備, 同時亦可能導致基金產生真誠地相信需要向財政機關支付但最終發現毋須支付的成本 因此, 如因相關稅項責任或仍未發展以實際及準時方式繳付稅款之完善機制等基本上的不明朗因素, 基金亦可能要繳交與過往年度相關的稅項, 而任何相關費用將可能從基金中扣除 該等後來須要繳交的稅項通常在決定於基金的賬目中累計負債時從基金中扣除 由於上文所述的情況, 基金於任何時候就所持投資引致的潛在稅項或可得的回報作出的任何撥備, 可能證實為過多或不足以應付任何最終稅務負債 因此, 基金投資者在認購或贖回其基金單位時, 可能會受到有利或不利影響 謹請單位持有人及潛在投資者注意與投資於基金相關的稅務風險 請參閱標題為 稅務 一節 海外賬戶稅收合規法案 (Foreign Account Tax Compliance Act) 適用於若干付款的 2010 年獎勵聘僱恢復就業法案 中的 海外賬戶稅收合規法案 ( FATCA ), 其主要原意是要求向美國國稅局 ( 國稅局 ) 申報特定美國人於非美國賬戶及非美國實體的直接及間接擁有權, 如未能提供所需資料, 會對直接美國投資 ( 亦可能對間接美國投資 ) 徵收 30% 的美國預扣稅 為了避免繳納美國預扣稅, 美國投資者及非美國投資者均可能須要提供有關彼等本身及其投資者的資料 就此而言, 愛爾蘭及美國政府已於 2012 年 12 月 21 日就 FATCA 的實施 ( 進一步詳情可參閱 稅務 一節下標題為 其他 一節 ) 簽署跨政府協議 ( 愛爾蘭跨政府協議 ) 根據愛爾蘭跨政府協議 ( 以及相關愛爾蘭法規及同樣實施 FATCA 的法律 ), 海外財務機構 ( 例如單位信託基金 ) 一般毋須應用 30% 的預扣稅 然而, 倘單位信託基金因 FATCA 須就其投資繳納美國預扣稅, 或未能遵守 FATCA 的任何規定, 代表單位信託基金行事的行政管理人可就單位持有人於單位信託基金的投資採取任何行動, 以糾正該不合規及 或確保該預扣由相關單位持有人 ( 其未能提供所需資料或未能成為參與海外財務機構或因其他作為或不作為導致預扣或不合規 ) 經濟上承擔, 有關行動包括強制贖回該單位持有人持有的部份或全部單位 基金經理在採取任何有關行動或尋求任何有關補救時, 應根據適用法律及法規, 以真誠及按合理理據行事 單位持有人及有意投資者應就與投資單位信託基金相關的美國聯邦 州份 當地及非美國稅項申報 FATCA 對彼等及單位信託基金的可能影響及認證規定, 諮詢其本身的稅務顧問 共同匯報標準 經合組織制定共同匯報標準 ( CRS ) 以解決全球離岸逃稅問題 CRS 為盡職審查 申報及交換財務賬戶資料提供共同標準 根據 CRS, 參與稅務管轄區將向申報財務機構獲取, 並每年與交換夥伴自動交換有關財務機構根據共同盡職審查及申報程序識別的所有須申報賬戶之財務資料 首批資料交換已於 2017 年 9 月開始 愛爾蘭已立法實施 CRS 因此, 單位信託基金將須遵守愛爾蘭採納的 CRS 盡職審查及申報規定 單位持有人可能須向單位信託基金提供額外資料, 以確保單 位信託基金能夠履行其於 CRS 下之責任 如未能提供所需資料, 投資者可能須對任何由此產生的處罰或其他收費負責及 或強制贖回其在相關基金中的單位 單位持有人及有意投資者應就與投資單位信託基金相關的認證規定, 諮詢其本身的稅務顧問 估值風險 基金的投資之估值可能涉及不確定性及判斷性的決定 如該估值並不正確, 則可能影響基金的資產淨值計算 投資於其他集體投資計劃的風險 基金可投資於其他集體投資計劃, 因此將承受與相關集體投資計劃有關的風險 基金無法控制相關集體投資計劃的投資, 故概不保證將成功達到相關集體投資計劃的投資目標及策略, 這可能對基金的資產淨值構成負面影響 投資該等集體投資計劃時可能會涉及額外的費用 概不保證相關集體投資計劃將時刻具備足夠的流動性以滿足基金的贖回要求 基金特定風險 對沖類別對沖類別旨在減輕相關對沖類別的貨幣兌基金的基本貨幣的匯率波動的影響 基金經理旨在利用金融工具 ( 如該等載於標題為 投資政策..整體政策 - 有效投資組合管理技巧 一節中的工具 ) 將此項風險減低, 條件為該等工具不得導致被對沖的倉盤超過基金相關類別應佔的資產淨值的 105% 或跌至低於基金相關類別應佔的資產淨值的 95% 貨幣對沖亦存在潛在不足之處 對沖技巧將產生由對沖類別承擔的交易成本 此外, 基金經理將可達致完美的貨幣對沖的可能性不大, 故概不保證貨幣對沖將完全有效 投資者亦應注意, 如指定貨幣兌基本貨幣及 或基金資產的計值貨幣的匯率下滑, 此項策略可能會嚴重限制相關類別的單位持有人受惠 18

108 基金負債 基金的相關對沖類別的單位持有人或會受每單位資產淨值 ( 反映相關金融工具的收益 虧損及成本 ) 的波動影響 然而, 用以實施該等策略的金融工具應為基金的整體資產 負債 人民幣對沖類別風險 人民幣匯率為一個受管理的浮動匯率, 匯率基於市場供求及參考一籃子貨幣而釐定 人民幣目前在兩個市場買賣 : 中國內地的在岸人民幣 (CNY) 及主要在香港的離岸人民幣 (CNH) 在岸人民幣 (CNY) 不可自由兌換, 並受到中國政府的匯率管制及若干規定所規限 另一方面, 離岸人民幣 (CNH) 可自由交易 人民幣計值對沖類別使用的匯率為離岸人民幣 (CNH) 離岸人民幣 (CNH) 的價值可能因多項因素而與在岸人民幣 (CNY) 的價值有重大差異, 該等因素包括但不限於外匯管制政策及匯回資金限制 因此, 人民幣計值對沖類別可能須承受較大的外匯風險 概不保證人民幣不會貶值或重新估值, 亦不保證不會出現外幣短缺的情況 投資於小型 中型公司 一般而言, 小型及中型公司的股票可能有較低流動性, 且其價格相對較大型公司的股價於面對不利經濟發展時會更為波動 風險包括經濟風險, 例如有關產品深度欠奉 地域分散有限及對業務週期的敏感度較高 該等風險亦包括組織風險, 例如集中管理及依賴股東及主要人員等 如較小型公司在證券交易所的 次級 部份上市, 該等公司可能會面臨一個規管較低的環境 此外, 較小型公司的股份可能較為難以買賣, 以致執行投資決定時的靈活性較低, 並有時可能須承擔較高成本 投資於特定國家 地區及界別 基金的投資集中於特定行業界別 工具 國家或地區 相對於投資組合更為多元化的基金, 基金的價值可能較為波動 基金的價值可能較易受到影響某一國家或地區市場之不利經濟 政治 政策 外匯 流動性 稅務 法律或監管事件所影響 投資於中國 投資於中國證券市場帶有新興市場風險及國家特定風險 政治變動 貨幣兌換限制 外匯監管 稅務 外資投資限制及匯回資本限制亦可影響投資表現 儘管可供認購的股份發行數量持續增加, 其供應與其他發達金融市場的可供選擇相比仍然非常有限 這可能對股份市場的流通性水平造成影響, 繼而引致價格波動 與發達國家相比, 中國的資本市場及合股公司的法律及規管框架的發展仍未完善 此外, 中國的會計準則可能與國際會計準則有所不同 投資於中國證券可能涉及若干託管風險 例如在中華人民共和國 ( 中國 ) 擁有交易所買賣證券的證據 就只記載於在相關交易所相關的託管人及 或登記處的電子賬面記錄中 該等託管人及登記處的安排是新安排, 並未完全就其效率 準確性及安全性進行測試 中國內地的投資仍然對中國的經濟 社會及政治政策上的任何重大改變非常敏感 該等投資的資本增長以至表現亦可能會因上述敏感性而受到不利影響 中國政府對未來的匯率及貨幣兌換走勢的控制或會對該等基金所投資的公司的業務及財務業績有不利影響 由於中國證券投資之稅務待遇的潛在不明朗因素 稅務法規有可能改變, 以及可能以追溯方式徵收稅項或稅務負擔, 相關基金於任何時候作出的任何稅項撥備可能證實為過多或不足以應付任何最終稅務負擔 因此, 視乎中國稅務當局日後的立場及投資者在認購或贖回相關基金的單位時的稅項撥備水平屬過多或不足而定, 投資者可能受到有利或不利影響 倘若已作出稅項撥備, 則將從基金資產中扣除的撥備與實際稅務負擔之間的任何差額將對基金的資產淨值產生不利影響 實際稅務負擔可能低於已作出的稅項撥備 視乎彼等認購及 / 或贖回的時機, 投資者可能因稅務撥備的任何差額受到不利影響及將無權就任何部分的過度撥備 ( 視情況而定 ) 進行申索 根據中國現行稅務政策, 擁有海外投資的中國公司可獲若干稅務優惠 而且, 中國的稅務法律 法規及慣例可予更改, 而該等更改可能具有追溯效力 並不保證現時提供予海外公司的稅務優惠日後不會被廢除 此外, 透過投資於中國證券 ( 包括中國 A 股及中國 B 股 )( 透過投資於其他集體投資計劃或參與票據間接投資 ), 該等基金可能會被徵收中國的預扣稅及其他稅項, 此等稅項並不能被任何適用的雙重徵稅條約消除 因此, 該等不明朗因素導致必須於計算每單位資產淨值時就外國稅項作出重大撥備 現時, 外國投資者一般僅可 (1) 透過根據 QFII 規例及 / 或 RQFII 規例獲批准的額度 ;(2) 透過滬港股票市場交易互聯互通機制及深港股票市場交易互聯互通機制 ( 互聯互通機制 ); 或 (3) 根據適用的中國法規以策略投資者身份, 投資於中國 A 股及中國境內證券市場 外國投資者可直接投資於中國 B 股 預期基金可以透過互聯互通機制直接投資於在上海證券交易所 ( 上交所 ) 及深圳證券交易所 ( 深交所 ) 上市的中國 A 股, 並將透過投資於其他合資格集體投資計劃或參與票據, 以間接投資的方式投資於在其他交易所上市的中國 A 股及中國 B 股, 任何有關投資詳情載於基金的相關補充文件內 19

109 與投資於中國 A 股或中國 B 股證券有關的風險詳情載於標題 風險考慮因素 - 投資於中國 項下, 而有關透過互聯互通機制直接投資於中國 A 股的特定風險因素則載於標題 風險考慮因素 - 透過互聯互通機制作出投資 項下 有關互聯互通機制的進一步詳情載於下文 滬港股票市場交易互聯互通機制是香港聯合交易所 ( 聯交所 ) 香港交易及結算所有限公司 ( 香港交易所 ) 上交所及中國證券登記結算有限責任公司 ( 中國結算 ) 建立的證券交易及結算互聯互通機制, 而深港股票市場交易互聯互通機制是聯交所 香港交易所 深交所及中國結算建立的證券交易及結算互聯互通機制 互聯互通機制旨在實現中國內地及香港兩地互相直接進入對方股票市場的目標 滬港股票市場交易互聯互通機制允許香港及海外投資者透過其香港經紀及經由聯交所設立的證券交易服務公司以滬股通投資於在上交所上市的中國 A 股 ( 滬股通股票 ) 根據滬股通, 投資者或可在遵循滬港股票市場交易互聯互通機制規則的情況下, 透過其香港經紀, 經由聯交所設立的證券交易服務公司買賣在上交所上市的滬股通股票 截至本章程日期, 滬股通股票包括在上交所上巿的 (a) 上證 180 指數的成份股 ;(b) 上證 380 指數的成份股 ;(c) 不屬上證 180 指數或上證 380 指數的成份股但在上交所上市並有相應的中國 H 股獲接納在聯交所上市及買賣的中國 A 股 ; 惟前提是.. (i) 該等證券並非以人民幣以外貨幣於上交所買賣 (ii) 該等證券並無被實施風險警示 聯交所可將證券納入或不納入為滬股通股票, 並可改變股份在滬股通上買賣的資格 深港股票市場交易互聯互通機制允許香港及海外投資者透過其香港經紀及經由聯交所設立的證券交易服務公司以深股通投資於在深交所上市的中國 A 股 ( 深股通股票 ) 根據深股通, 香港及海外投資者或可在遵循深港股票市場交易互聯互通機制規則的情況下, 透過其香港經紀, 經由聯交所設立的證券交易服務公司買賣在深交所上市的深股通股票 截至本基金章程日期, 深股通股票包括 (a) 市值不少於人民幣 60 億元的深證成份指數和深證中小創新指數的所有成份股 ; 及 (b) 在深交所上市並有相應的中國 H 股獲接納在聯交所上市及買賣的中國 A 股 ; 惟前提是.. (i) 該等證券並非以人民幣以外貨幣於深交所買賣 (ii) 該等證券並無被實施風險警示或正接受除牌安排 深港股票市場交易互聯互通機制開通初期, 合資格通過深股通買賣在深交所創業板上市的股票的投資者, 僅限於相關香港規則及規例定義的機構專業投資者 ( 而基金符合機構專業投資者的資格 ) 聯交所可將證券納入或不納入為深股通股票, 並可改變股份在深股通上買賣的資格 根據互聯互通機制, 香港交易所的全資附屬公司 香港中央結算有限公司 ( 香港結算 ) 將為香港市場參與者及投資者所進行的交易負責結算 交收, 並提供存管 代名人及其他相關服務 透過互聯互通機制作出投資 互聯互通機制的相關規則及規例可能變更, 且有關變更可能具有潛在追溯效力 互聯互通機制設有額度限制 如果透過該機制進行的交易暫停, 基金透過該機制投資中國 A 股或進入中國市場的能力將受到不利影響 在該情況下, 基金實現其投資目標的能力可能受到負面影響 額度限制 根據互聯互通機制進行的交易將受每日額度 ( 每日額度 ) 所限 滬港通機制下的滬股通 深港通機制下的深股通 滬港通機制下的港股通及深港通機制下的港股通, 將分別受獨立的每日額度所限 每日額度限制在各互聯互通機制下每天進行的跨境交易之最高淨買入金額 截至本章程日期, 各互聯互通機制的北向每日額度現時設定為人民幣 130 億元 聯交所將監察額度, 並在預定時間於香港交易所的網站公佈北向每日額度的餘額 一旦北向每日額度餘額於開市集合競價時段降至零或交易已超過北向每日額度, 新買盤指令將會被駁回 ( 不過, 不論額度餘額多少, 投資者仍將獲准出售其跨境證券 ) 因此, 額度限制可能限制相關基金即時透過互聯互通機制投資於中國 A 股的能力, 相關基金亦未必能夠有效地執行其投資策略 法定 實益擁有權 基金的滬股通股票及深股通股票由保管人持有, 並存放於香港結算在中央結算及交收系統 ( 中央結算系統 ) 開立, 作為香港中央證券存管處的賬戶內 香港結算繼而以代名持有人的身份, 經其於中國結算以其名稱註冊, 為各互聯互通機制設立的綜合證券賬戶持有滬股通股票及深股通股票 儘管相關中國證監會規例及中國結算規則就 代名持有人 的概念大致訂定條文, 而香港及海外投資者 ( 例如單位信託基金及基金 ) 將被認為擁有滬股通股票及深股通股票的實益擁有權, 惟根據中國法律, 基金透過作為代名人之香港結算成為滬股通股票及深股通股票的實益擁有人之確切性質及權利定義並不清晰 根據中國法律, 法定擁有權 與 實益擁有權 之間缺乏清楚定義及區別, 且於中國法院牽涉到代名人賬戶架構的案例甚少 因此, 基金在中國法律下之權利及權益之實際性質及執行方法仍不明確 此外, 投資者 ( 例如相關基金 ) 在互聯互通機制的架構下作為滬股通股票及深股通股票的實益擁有人如何於中國法院行使及執行其權利仍有待測試 由於此不確定性, 就香港結算在香港進行清盤程序這一不大可能發生的情況而言, 滬股通股票及深股通股票會否被視作為基金實益擁有而持有, 或被視為香港結算可作一般分派給債權人的一般資產之一部份仍未能夠確定 結算及交收風險 20

110 香港結算及中國結算已建立結算連結, 並已互相成為對方的參與者, 以便提供跨境交易的結算及交收服務 就於某一市場提出進行的跨境交易而言, 該市場的結算所將一方面與其本身的結算參與者進行結算及交收, 另一方面則承擔履行其結算參與者與對方結算所的結算及交收責任 倘若罕有地出現中國結算違約, 且中國結算被公佈為違約人, 香港結算根據其與結算參與者的市場合約, 在北向交易中的責任只限於協助結算參與者向中國結算追討相關賠償 香港結算將本著真誠透過可用的法律途徑或透過中國結算的清盤, 尋求向中國結算追收有待收回的股票及資金 在該情況下, 基金可能會在收回過程中受到延誤, 或未能向中國結算收回其全數損失 貨幣風險 香港及海外投資者只會以人民幣買賣及交收滬股通股票及深股通股票 因此, 基金將需要以人民幣買賣及交收滬股通股票及深股通股票 不受香港投資者賠償基金保障 通過互聯互通機制作出的投資乃透過經紀進行, 並須承受該等經紀未能履行其責任的風險 香港的投資者賠償基金並不涵蓋基金透過互聯互通機制下的北向交易作出的投資 香港的投資者賠償基金的成立是向任何因持牌中介人或認可財務機構就於香港交易所買賣的產品違約, 而招致金錢損失的任何國籍的投資者支付賠償 由於互聯互通機制下的滬股通 / 深股通的失責事宜並不涉及聯交所或香港期貨交易所有限公司上市或買賣的產品, 因此不受投資者賠償基金保障 另一方面, 由於基金是通過香港證券經紀而非中國經紀進行北向交易, 因此不受中國證券投資者保護基金保障 企業行動及股東大會 雖然香港結算對於其在中國結算的綜合股票戶口內持有的滬股通股票及深股通股票並不享有所有人權益, 中國結算作為上交所及深交所上市公司的股份過戶登記處, 於處理與該等滬股通股票及深股通股票有關的企業行動時仍將視香港結算為其中一名股東 香港結算將監察影響滬股通股票及深股通股票的企業行動, 並將知會參與中央結算系統的相關經紀或託管人 ( 中央結算系統參與者 ) 所有需要中央結算系統參與者採取行動以參與其中的該等企業行動 上交所 深交所上市公司通常於大會日期前約兩至三個星期公佈關於股東週年大會 股東特別大會的資料 所有決議案將以投票的方式進行表決 香港結算將通知中央結算系統參與者所有股東大會的詳情, 例如大會舉行日期 時間 地點, 以及決議案的數目 香港結算將會通知中央結算系統參與者有關滬股通股票及深股通股票 ( 定義見上文 ) 的企業行動 但凡上市公司的組織章 程並無禁止其股東委任受委代表 多名受委代表, 香港結算在收到指示後, 將安排委任一名或多名投資者作為其受委代表或代表出席股東大會 此外, 根據中央結算系統規則, 投資者 ( 按中國法規及上市公司的組織章程中所規定, 當持有量達致所需門檻 ) 可以經其中央結算系統參與者由香港結算向上市公司提交建議決議案 在相關法規及要求的允許下, 香港結算作為上市公司股東名冊上的股東將協助傳遞此等議案予相關上市公司 香港及海外投資者 ( 包括基金 ) 正持有經其經紀或託管人透過互聯互通機制買賣的滬股通股票及深股通股票, 將需要遵守各自的經紀或託管人 ( 即中央結算系統參與者 ) 指定的安排和最後期限 就滬股通股票及深股通股票的某些類型企業行動採取行動的時間, 可能很短 因此, 基金可能無法及時參與某些企業行動 外資持股限制 中國證券監督管理委員會 ( 中國證監會 ) 規定, 當香港及海外投資者透過互聯互通機制持有中國 A 股時, 須受以下持股量限制之規限 : - 投資於某一上市公司的單一海外投資者 ( 例如基金 ) 的持股比例, 不得超過該上市公司已發行股份總數的 10%; 及 - 於某一上市公司作出投資的所有海外投資者 ( 即香港及海外投資者 ) 的持股比例總和, 不得超過該上市公司的已發行股份總數的 30% 當個別中國 A 股的合計外資持股比例達到 26%, 上交所或深交所 ( 視情況而定 ) 將於其網站 ( 如屬上交所 ) 及 如屬深交所 )) 刊發通知 如果合計外資持股比例超過 30% 限額, 有關海外投資者將會被要求在五個交易日內以 後買先賣 原則出售股份 21

111 操作風險 互聯互通機制為香港及海外投資者直接進入中國股票市場提供了渠道 互聯互通機制運作的前提為有關市場參與者的操作系統保持運作 市場參與者可以參與此機制, 惟須符合相關交易所及 或結算所可能指定的若干資訊技術性能 風險管理及其他方面的要求 市場參與者一般已就透過互聯互通機制買賣中國 A 股安裝及調整其營運及技術系統 然而, 應注意 : 兩地市場的證券制度及法律體制截然不同, 為了進行計劃, 市場參與者或須持續處理該等差異衍生的問題 此外, 互聯互通機制的 互通 需要將跨境買賣盤指令傳遞 聯交所已設立交易指令傳遞系統 ( 中國互聯互通機制系統 ), 以補捉 綜合及傳遞交易所參與者輸入的跨境買賣盤指令 概不保證聯交所及市場參與者的系統將正常運作或將繼續適應兩地市場的變化和發展 如果有關系統未能正常運作, 通過機制於兩個市場進行的交易可能受到干擾 基金進入中國 A 股市場 ( 從而執行其投資策略 ) 的能力將會受到不利影響 監管風險 互聯互通機制將受監管機關所頒佈的規例及中港兩地證券交易所制定的實施細則所規限 此外, 監管機關可能不時就互聯互通機制的相關運作及根據互聯互通機制進行跨境交易的相關跨境執法頒佈新法規 謹請注意, 互聯互通機制的現行規例及規則可予更改, 並可能具有潛在追溯效力 概不保證互聯互通機制將不會被廢除 可透過互聯互通機制投資於中國市場的基金可能因有關變更而受到不利影響 暫停風險 為確保市場公平有序及風險得到審慎管理, 聯交所 上交所及深交所各自保留於必要時可暫停北向及 或南向交易的權利 啟用暫停交易機制前將需取得相關監管機構的同意 如果透過互聯互通機制進行的北向交易實施暫停, 則基金進入中國市場的能力將受到不利影響 前端監控對沽出的限制 根據中國法規, 投資者在出售任何股份前, 賬戶須有足夠的股份, 否則上交所或深交所將拒絕有關賣盤指令 聯交所將於交易進行前檢查其參與者 ( 即股票經紀 ) 的中國 A 股賣盤指令, 以確保不會發生超賣情況 一般而言, 倘若基金擬沽出所持有的若干中國 A 股, 必須在沽出當天 ( 交易日 ) 開市前把該等中國 A 股轉至其經紀的相關賬戶 如果錯過了此期限, 相關基金將不能於該交易日沽出該等股份 由於此項要求, 基金可能無法及時出售所持有的中國 A 股 然而, 基金可要求託管人於中央結算系統開立特別獨立戶口 ( SPSA ) 以在經提升的前端監控模式下存放其中國 A 股 中央結算系統會為每個 SPSA 分配一個 投資者識別編號, 以方便中國互聯互通機制系統核實投資者 ( 例如基金 ) 的持股 倘於經紀輸入基金的賣出指令時,SPSA 有足夠的持股量, 則基金將能夠出售其所持有的中國 A 股 ( 而非在現有的前端監控模式下就非 SPSA 賬戶將中國 A 股轉移至經紀的賬戶 ) 為基金開立 SPSA 賬戶將讓其可及時出售其所持中國 A 股 交易日的差異 互聯互通機制將只於中國及香港股票市場均開放交易且兩地市場的銀行於相應的交收日均開放營業的日子運作, 因此可能導致以下情況 : 雖然某日為中國股票市場的正常交易日, 但香港投資者 ( 例如基金 ) 卻無法進行任何中國 A 股交易 由於交易日的差異, 在中國股票市場開放進行交易但香港股票市場關閉的日子, 基金可能須承受中國 A 股價格波動的風險 合資格股票的調出 當一些原本為互聯互通機制合資格股票被調出互聯互通機制範圍時, 該股票只能被賣出而不能被買入 這可能會在 ( 舉例而言 ) 基金有意購入被調出合資格股票範圍的股票時影響基金的投資組合或策略 與深交所中小企業板 ( 中小企業板 ) 及 或創業板有關的風險 若干基金可能會投資於在中小企業板及 或創業板上市的股票 較高的股價波動 22

112 中小企業板及 或創業板的上市公司一般屬新興性質, 營運規模較小, 因此與深交所主板 ( 主板 ) 的上市公司相比, 該等公司承受較高的股價波動及流動性, 以及較高的風險和周轉率 估值過高風險 在中小企業板及 或創業板上市的股票可能估值過高, 而該極高的估值未必得以持續 股價可能會因較少流通股份而較容易受到操控 規例差異 與主板及中小企業板相比, 有關創業板上市公司的規則及規例在盈利能力及股本方面較為寬鬆 除牌風險 中小企業板及 或創業板上市公司出現除牌的情況, 可能較為普遍及快速 如果基金投資的公司被除牌, 可能對基金產生不利影響 投資於中小企業板及 或創業板可能導致基金及其投資者蒙受重大損失 中華人民共和國的稅項 中華人民共和國的稅制的界定較不清晰, 或須受未能預計的變更影響, 並可能容許追溯稅項, 故基金可能須承擔當初並未合理預期的當地稅務責任 該不明朗因素可能使基金需要在計算資產淨值時就外國稅項作出大額撥備, 同時亦可能導致基金產生真誠地相信需要向財政機關支付但最終發現毋須支付的成本 就基金透過 RQFII 額度或互聯互通機制或連接產品於中國的投資所變現的資本收益而言, 現行中國稅務法律 規例及慣例 ( 可能具有追溯效力 ) 涉及風險與不明朗因素 基金的稅務責任如有任何增加, 均可能對基金的價值構成不利影響 人民幣貨幣及兌換風險 人民幣現時並非可自由兌換的貨幣, 受到外匯管制政策及限制所規限 以基金基本貨幣計量的基金資產價值可能受到貨幣匯率波動及外匯管制規例的不利影響 概不保證人民幣不會貶值或重新估值, 亦不保證不會出現外幣供應短缺 並非以人民幣為基礎的投資者須承受外匯風險, 概不保證人民幣兌投資者的基本貨幣不會貶值 人民幣的任何貶值均可能對投資者於基金的投資構成不利影響 儘管離岸人民幣 (CNH) 及在岸人民幣 (CNY) 為相同貨幣, 但按不同匯率交易 CNH 與 CNY 之間的任何差異均可能對投資者構成不利影響 在特殊情況下, 以人民幣支付的贖回付款及 / 或股息付款或會因外匯管制及適用於人民幣的限制而受到延誤 稅務申報 投資者亦應注意, 鑑於基金能夠投資於多種不同的工具, 基金在不同會計期間產生的收入水平及性質可能會有重大差異 因此, 視乎投資者的稅務狀況以及可能須要繳稅的地方而定, 這亦可能對其任何收入一部份的申報及徵稅方式構成影響 有關投資者潛在稅務待遇的進一步資料, 載於章程中標題為 稅務 一節 RQFII 風險 若干基金可能會作出在經濟上與來自中國的發行人有關連的投資 對中國市場的這種投資可在適用中國監管規定所批准及規限的若干投資額度內, 透過人民幣合格境外機構投資者 ( RQFII ) 計劃或透過滬港股票市場交易互聯互通機制 ( 滬港通 ) 獲得 RQFII 監管風險 RQFII 制度受中國相關機構 ( 包括中國證券監督管理委員會 ( 中國證監會 ) 國家外匯管理局 ( 外管局 ) 及中國的人民銀行 ( 中國人民銀行 ) 及 / 或其他相關機構 ) 頒佈的規則及規例 ( RQFII 規例 ) 所監管 符合 RQFII 規例下指明的相關資格要求的若干投資經理, 可於日後申請獲發 RQFII 牌照及額度 ( 分別及統稱為 霸菱 RQFII ) 由於 RQFII 規例的歷史相對較短, 其應用及詮釋亦相對未經試驗, 故日後中國機關將如何應用及詮釋該等規例或監管機構可如何行使規例賦予其的廣泛酌情權尚存在不明朗性 基金能否進行相關投資或充分實施或達成其投資目標及策略, 受限於中國的適用法律 規則及規例 ( 包括對投資和匯出本金及利潤的限制 ), 該等法律 規則及規例可能會變更及有關變更可能有追溯效力 相關規則的任何變更可能對單位持有人在基金的投資有重大不利影響 如基金透過 RQFII 計劃投資, 將須承受以下部份或全部額外風險 23

113 根據外管局及中國人民銀行的 RQFII 額度管理政策, 霸菱 RQFII 可靈活地將其 RQFII 額度分配至不同基金, 或在外管局及中國人民銀行的批准下 ( 視情況而定 ), 分配至屬於開放式基金的其他產品及 / 或並非開放式基金的產品及 / 或賬戶 因此, 霸菱 RQFII 可將 RQFII 額度分配至基金, 或將可供基金使用的 RQFII 額度分配至其他產品及 / 或賬戶 在適用規則的規限下及在獲得批准的情況下, 霸菱 RQFII 將獲得的 RQFII 額度可供其管理的基金及 / 或霸菱集團中現時並無持有 RQFII 牌照及額度的其他投資經理管理的基金使用 如屬後者, 根據 RQFII 規例, 霸菱 RQFII 仍將負責全面監督 RQFII 額度的使用, 但不會就該等其他投資經理管理的基金承擔任何全權委託投資管理之職責 RQFII 規例可經不時修訂, 並包括 ( 但不限於 ): (i) (ii) (iii) (iv) (v) 由中國證監會 中國人民銀行及外管局頒佈並於 2013 年 3 月 1 日生效的 人民幣合格境外機構投資者境內證券投資試點辦法 ; 由中國證監會頒佈並於 2013 年 3 月 1 日生效的關於實施 人民幣合格境外機構投資者境內證券投資試點辦法 的規定; 由外管局頒佈並於 2013 年 3 月 21 日生效的關於 人民幣合格境外機構投資者境內證券投資試點 有關問題的通知 ( RQFII 辦法 ); 由中國人民銀行頒佈並於 2013 年 5 月 2 日生效的中國人民銀行關於實施 人民幣合格境外機構投資者境內證券投資試點辦法 有關事項的通知 ; 及 相關當局頒佈的任何其他適用法規 RQFII 規例相對較新 因此該等投資規定的應用及詮釋相對而言未經試驗, 加上由於中國機關及監管機構就該等投資規例獲授予廣泛酌情權, 而有關酌情權現時或以後如何行使既沒有先例亦未可確定, 因此該等規例會如何應用並不確定 RQFII 額度風險 倘霸菱 RQFII 已使用其全部 RQFII 額度, 霸菱 RQFII 可在任何適用規例的規限下, 申請增加其可供基金 霸菱 RQFII 其他客戶或霸菱 RQFII 管理的其他產品使用之 RQFII 額度 然而, 概不保證可獲得額外的 RQFII 額度以應付相關基金的所有認購要求, 故可能導致需要停止接受對該等基金的進一步認購, 以拒絕及 / 或 ( 在等待獲授額外 RQFII 額度時 ) 延遲全部或部份任何新的認購要求, 惟須受章程的條文所規限 另一方面, 如果霸菱 RQFII 在獲授額度後的一 (1) 年內無法有效使用其 RQFII 額度, 則相關中國機關一般可減少或取消授予該霸菱 RQFII 的額度規模 此外, 如霸菱 RQFII( 或 RQFII 當地託管人 - 請見下文 RQFII 託管風險 ) 違反 RQFII 規例的任何條文, 可能會對霸菱 RQFII 實施監管制裁, 這可能導致撤銷 RQFII 額度或其他監管制裁, 並可能對可供相關基金用作投資的部份額度構成影響 倘霸菱 RQFII 失去其 RQFII 資格或其投資額度遭撤銷或減少, 基金可能無法再直接投資於中國或可能須出售其透過額度於中國境內證券市場持有的投資, 並可能對其表現構成不利影響或導致重大損失 倘若基金獲分配作出投資的 RQFII 額度不足, 霸菱 RQFII 的批准因基金可能被禁止買賣相關證券及匯返基金的資金而遭到撤銷 / 終止或以其他方式作廢, 或如任何主要營辦商或各方 ( 包括 RQFII 託管人 / 中國經紀 ) 破產 / 違責及 / 或被取消資格履行其責任 ( 包括執行任何交易或就任何交易進行交收或轉撥資金或將證券過戶 ), 則基金可能蒙受損失 RQFII 匯出風險 基金可能受到 RQFII 規例下的規則及限制 ( 包括投資限制 對境外擁有或持有的限制 ) 所影響, 並可能對其表現及 / 或其流動性有不利影響 外管局根據 RQFII 規例規管及監控 RQFII 將資金匯出中國 RQFII 就相關基金等開放式 RQFII 基金 ( 定義見 RQFII 規例 ) 匯出人民幣資金現時每日進行, 有關匯出並不受匯出限制亦毋須獲得事先批准 然而, 概不保證 RQFII 規例不會變更或日後不會實施匯出限制 對匯出投資資本及純利潤的任何限制, 可能影響相關基金應付單位持有人贖回要求的能力 於極端情況下, 相關基金可能因投資能力有限而招致重大損失, 或因 RQFII 投資限制 中國證券市場的流動性不足以及交易執行或交易交收時有所延誤或阻礙而未必能夠全面實施或實現其投資目標或策略 RQFII 託管風險 倘基金透過霸菱 RQFII 額度投資於在中國銀行間債券市場及交易所市場買賣的固定收益證券, 該等證券將會由當地託管人 ( RQFII 託管人 ) 根據中國法規透過於中國證券登記結算有限責任公司或中央國債登記結算有限責任公司及 / 或銀行間市場清算所股份有限公司及中國法律可能允許或規定的其他相關保管人以中國法律可能允許或規定的名義開立的證券賬戶保存 現金應保存在於 RQFII 託管人開立的現金賬戶 保管人將作出安排以確保 RQFII 託管人設有適當程序以妥善地安全保管相關基金的資產, 包括存置清楚顯示該等基金資產以該等基金名義記錄並與 RQFII 託管人的其他資產分開之記錄 根據 RQFII 規例, 基金透過霸菱 RQFII 持有的 RQFII 額 24

114 度購入的任何證券將由 RQFII 託管人保存, 並應以霸菱 RQFII( 作為 RQFII 牌照持有人 ) 與基金的聯名登記, 僅為基金的唯一利益及僅供基金使用 然而, 中國的司法及監管機關日後可能對有關情況作不同理解, 並釐定霸菱 RQFII 可以為有權享有該證券交易賬戶中的證券的一方 該等證券可能容易遭霸菱 RQFII 的清盤人作出申索, 及未必如其僅以基金的名義登記般受到妥善保障 特別是, 霸菱 RQFII 的債權人可能錯誤地假定基金的資產屬於霸菱 RQFII, 而該等債權人可能尋求取得對基金資產的控制, 以應付霸菱 RQFII 欠負該等債權人的任何負債 投資者亦應注意, 存放於相關基金於 RQFII 託管人開立的現金賬戶中的現金, 將不會分開存放但將成為 RQFII 託管人欠負相關基金 ( 作為存款人 ) 的債務 有關現金將與屬於 RQFII 託管人的其他客戶之現金混合 倘 RQFII 託管人破產或清盤, 相關基金對存放於該現金賬戶的現金將無任何所有權, 而相關基金將成為 RQFII 託管人的無抵押債權人, 與 RQFII 託管人所有其他無抵押債權人具同等地位 相關基金在追回有關債務時可能會遭遇困難及 / 或有所延誤, 或未必能夠追回全部債務或甚至完全無法追回, 在該情況下, 基金將蒙受損失 此外, 由於 RQFII 託管人在執行或結算任何交易或轉移任何資金或證券方面的作為或不作為, 基金可能會招致損失 RQFII 制度下的中國經紀風險交易的執行及結算或任何資金或證券的轉移可由霸菱 RQFII 指定的中國經紀人進行 基金可能因中國經紀違約 破產或取消資格而蒙受損失 在該情況下, 基金可能在執行或結算任何交易或轉移任何資金或證券時受到不利影響 在挑選中國經紀時, 霸菱 RQFII 將考慮到佣金收費率的競爭力 相關買賣盤的規模及執行標準等因素 倘霸菱 RQFII 認為合適及在市場或運營規限下, 可能會委任一名中國經紀及基金未必需要支付最低佣金, 或者交易未必在相關時間以市場上可得的最佳價格執行 股票風險 投資於股票 基金於股本證券的投資須承受一般市場風險, 其價值可能因多項因素 ( 例如投資情緒 政治及經濟情況變化以及發行人特定因素 ) 而波動 在股票市場極端反覆時, 基金的資產淨值可能會有大幅波動 股票相關證券 基金可投資於股票相關證券 ( 例如結構性票據 參與票據或股票掛鈎票據 ) 該等投資工具一般由經紀 投資銀行或公司發行, 並因而須承受發行人的無力償債或違責風險 如該等投資工具並無活躍市場, 可能會導致流動性風險 此外, 與其他直接投資於類似相關資產的基金相比, 投資於股票掛鈎證券可能會因票據附帶的費用而攤薄基金的業績表現 上述情況可能會對基金的每單位資產淨值構成不利影響 可換股債券是債務與股票之間的混合體, 准許持有人於指定的未來日期轉換為發行債券的公司之股份 因此, 可換股債券將面對股本變動及較傳統債券投資承受較大波動性 於可換股債券的投資承受與可比較傳統債券投資相關的相同利率風險 信貸風險 流動性風險及提前還款風險 新興市場 投資於新興市場 ( 及 或前緣市場 ) 倘基金投資於新興市場, 或會涉及投資於較成熟市場不常有的額外風險以及特別考慮因素, 例如流動性風險 貨幣風險 管制 政治及經濟不確定因素 法律及稅務風險 結算風險 託管風險, 且波幅很可能偏高 若干市場的高市場波動性及潛在的結算困難亦可能導致在該等市場買賣證券的價格出現大幅波動, 繼而可能對基金的價值產生不利影響 基金的貨幣兌換及將投資收入 資本及銷售所得款項調撥回國的能力或會受到限制, 或需要政府同意 倘政府延遲或拒絕授予批准調撥資金回國或作出任何官方干預而影響交易結算程序, 基金可能受到不利影響 證券交易所或其他該等結算基礎設施可能缺乏流動性及穩健的程序, 並可能容易受到干擾 政治 社會及經濟不穩 若干國家的國有化 徵用或沒收稅項風險較一般為高, 任何有關風險可能對基金於該等國家的投資構成不利影響 發展中國家的政治變動 政府規管 社會不穩或外交發展 ( 包括戰爭 ) 風險亦可能較一般為高, 可能對會該等國家的經濟造成不利影響, 從而對基金在該等國家的投資構成不利影響 此外, 基金可能難以於若干發展中國家要求有效強制執行其權利 市場流動性及外國投資基礎建設 大部份發展中國家的證券交易所交投量可能遠少於發達國家的主要股票市場, 因此購買及銷售所持股份可能較為需時 價格波幅可能較發達國家為大 此情況可能導致基金價值大幅波動 倘須於短時間內出售大量證券以應付贖回要求, 可能須以不利價格出售, 從而對基金價值並繼而對每單位資產淨值造成不利影響 25

115 於若干發展中國家, 各基金等外國投資者進行投資組合投資或須徵求同意或遵守若干限制 此等限制及日後施加的任何其他限制可能阻礙基金把握投資良機 企業披露 會計及監管標準 發展中國家的公司一般毋須遵守與發達國家公司適用者相若的會計 審計及財務報告準則 慣例及披露規定 此外, 與備有較為先進的證券市場之國家相比, 大部份發展中國家的政府對證券交易所 經紀公司及上市公司的監管及規例一般亦較為寬鬆 因此, 投資者可以取得有關發展中國家證券的公開資料可能較少, 而且該等可得資料的可靠性亦可能較低 官方數據的提供及可靠性 有關發展中國家證券市場可得的統計數據, 較可從 ( 例如 ) 英國的證券市場可得者為少 ; 該等可得數據的可靠性亦可能較低 法律風險 發展中國家有許多法律仍屬嶄新及未經試驗 因此, 基金可能須承受多項風險, 包括但不限於投資者保障不足 法律互相矛盾 法律不完整 不清晰及持續變更 缺乏具規模的索取法律賠償途徑及缺乏執行現有規例 此外, 在基金投資資產的若干國家可能難以取得及實施判決 稅項 發展中國家的外國投資者就股息 利息及資本增值須繳付的稅項各有不同, 部份國家的徵稅相對較高 此外, 若干發展中國家屬於稅務法例及程序的界定較不清晰, 而且該等法例可能容許追溯徵稅的國家, 導致投資於該國家的基金日後可能須承擔並未合理預期的當地稅務責任 該等不明朗因素可能使基金需要在計算其資產淨值時就外國稅項作出大額撥備 該等撥備的作出及潛在影響的進一步詳情載於 一般風險 - 稅務 一節 結算及託管風險 由於基金可投資於在買賣 結算及託管系統仍未發展完善的市場, 故因欺詐行為 疏忽大意 無心之失或災難 ( 如火災 ) 而損失基金於該等市場買賣的資產的風險可能增加 在次級託管人或過戶登記處無力償債或追溯應用法例等其他情況下, 基金不一定可以就所作投資確定擁有權, 因而或會蒙受損失 在該等情況下, 基金可能無法對第三方強制執行其權利 由於該等基金可能投資於買賣 結算及託管系統仍未發展完善的市場, 該基金在該等市場買賣的資產及託管予該等市場的次級託管人的資產, 在保管人毋須負責的情況下, 要承受一定風險 風險包括但不限於.. 非真正的貨銀對付結算, 可能增加對手方的信貸風險 貨銀對付是一項規定現金支付必須於交付證券之前或同時作出之結算制度 ; 一個實質的市場 ( 而非電子記賬記錄 ), 及因此出現虛假證券的流通 ; 有關企業行動的資料欠奉 ; 影響證券可得性的登記程序 ; 缺乏適當的法律 金融基礎意見 ; 缺乏設有中央存管的賠償 風險基金 固定收益證券 投資於固定收益證券 投資於債券或固定收益證券須承受流動性 利率及信貸風險 ( 即違責風險 ) 如發行人違責, 債券將會貶值 固定收益證券通常由信貸評級機構評級 信貸評級反映發行人將未能按照證券條款及時支付應付予投資者的本金及 或利息的可能性, 即違責風險 若干信貸評級機構獲美國證券交易委員會指定為全國認定的評級組織 ( Nationally Recognized Statistical Rating Organizations(NRSRO)) 各 NRSRO 均設有反映其評級的字母或字母數字尺度 其中一個 NRSRO 為標準普爾, 其評級尺度 ( 在本文中以違責風險的遞增順序排列 ) 為 AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B+ B B- CCC+ CCC CCC- CC C 評級 D 亦予使用, 以表示某證券已經違責 評級介乎 AAA 評級水平及 BBB- 評級水平的的證券一般被稱為 投資級別 預料該等證券的違責風險屬非常低 具 BB+ 及更低評級的證券一般被稱為 次投資級別 與 投資級別 證券相比, 預料該等證券具較高違責風險, 並會對經濟狀況更為敏感 26

116 根據基金的投資政策, 基金可能僅獲准投資於獲若干信貸評級的證券 投資 然而, 信貸評級並不能夠時刻準確地或可靠 地量度所投資證券 投資的實力 評級機構給予的信貸評級亦受到限制, 且證券及 / 或發行人的信貸能力並非時刻獲得保 證 如該等信貸評級被證實為不準確或不可靠, 則任何投資於該等證券 投資的基金可能招致虧損 若干國際債券市場進行交易的成交量, 可能明顯低於全球最大市場, 例如美國 故此, 基金於該等市場的投資可能較不流通, 而價格相對於較大成交量市場買賣的證券的可比較投資更為波動 此外, 若干市場的結算期可能較其他為長, 影響投資組合的流通性 信貸風險 - 固定收益 基金可投資於信貸狀況較差的固定收益證券, 這可能代表與其他並無投資於該等證券的基金相比, 該等基金具有較高信貸風險 投資於由公司發行的證券亦可能較投資於由政府所發行的證券具較高信貸風險 概不保證基金可能投資的固定收益證券的發行人將不會面臨信貸困難, 以致該等證券或工具的評級下降, 或導致損失部份或全部投資金額, 或到期支付予該等證券或工具的款項 利率風險 基金可投資的固定收益工具須承受利率風險 一般而言, 當利率下降, 債務證券的價格則上升, 而當利率上升, 其價格則下降 評級下降風險 債務工具或其發行人可能隨後被下調信貸評級 在評級下降的情況下, 基金的價值可能會受到不利影響 投資經理未必能夠出售該等被降級的債務工具 零息風險 與支付利息並具相若期限的證券相比, 結構屬零息的證券的市價一般會因利率變更而受到較大影響 與定期支付利息的證券相比, 該等證券傾向較為波動 主權債務風險 基金投資於由政府發行或擔保的證券或會承受政治 社會及經濟風險 在不利的情況下, 主權發行人未必能夠或願意償還已到期的本金及 或利息, 或可能要求基金參與該等債務的重組 倘主權債務發行人違約, 基金可能承受重大損失 政府機構如期償還到期本金和利息的意願或能力可能受 ( 包括其他原因 ) 其現金流動狀況 外匯儲備水平 到期還款日當天是否有足夠的外匯 債務償還的規模相對其整體經濟的負擔 政府機構對國際貨幣基金組織的政策, 和政府機構可能受制的政治限制所影響 政府機構亦可能倚賴外國政府 多邊機構和其他外國組織的預計支款以減低其債務的本金和利息欠款 這些承諾可能是以政府機構推行經濟改革及 或達致某水平的經濟表現, 和準時履行債務人責任作為條件 政府機構未能推行改革 達到某水平的經濟表現或準時償還本金或利息時, 可能導致該等第三者取消向政府機構借款的承諾, 繼而削弱債務人準時還債的能力和意願 投資於次投資級別證券基金可投資於獲評為次投資級別的債務證券 ( 例如信貸評級低於標準普爾評級尺度的 BBB- 評級, 或其他國際認可信貸評級機構的同等評級 ) 或未獲評級的債務證券 與較高評級債務證券相比, 該等證券一般承受較低流動性 較高波動性及較大的本金及利息損失風險 由於次投資級別證券一般無抵押, 且通常在債權人的優先次序較低, 故因該等發行人違責而蒙受虧損的風險明顯較高 與投資級別證券相比, 次投資級別證券的價值會有較急促的升跌, 反映短期公司及市場發展 投資級別證券主要回應一般利率水平的波動 投資於次投資級別證券的投資者較少, 出售該等證券的難度可能較高 高收益債務證券可能並無市場報價, 因此與具有較多外在報價資料及最近期銷售資料的證券比較, 評估高收益公司債務證券價值時更加需要運用判斷 衍生技巧及工具 投資於衍生工具 基金的投資可包含具有不同波動性的證券, 並可不時包含金融衍生工具 由於金融衍生工具可以是槓桿性工具, 使用該等工具可能導致有關基金面對較大的資產淨值波動 與金融衍生工具相關的風險包括對手方 信貸風險 流動性風險 估值 27

117 風險 波動性風險及場外交易風險 金融衍生工具的槓桿元素 組成部份可導致損失遠大於單位信託基金投資於金融衍生工具的金額 投資於金融衍生工具可導致單位信託基金蒙受重大損失的高風險 基金可為有效投資組合管理目的或嘗試對沖或降低其投資的整體風險而使用金融衍生工具, 或 ( 如按任何基金所披露 ) 使用金融衍生工具作為主要投資政策及策略之一部份 基於市況, 該等策略或許不成功, 並會使基金造成虧損 基金利用該等策略之能力, 可能受到市況 監管限制及稅務考慮因素之限制 投資於金融衍生工具須承受正常市場波動及投資於證券的其他固有風險 此外, 運用金融衍生工具涉及特殊風險, 包括.. 1. 依賴投資經理準確預測相關證券的價格走勢之能力 ;2. 金融衍生工具合約所依據的證券或貨幣的走勢與相關基金的證券或貨幣的走勢之間的低關連性 ;3. 任何特定工具在任何特定時間缺乏流通市場, 以致抑制基金以有利的價格將金融衍生工具平倉的能力 ;4. 由於衍生工具合約帶有的槓桿作用, 合約的價格出現相對微小變動, 便可立即使基金產生重大虧損 ; 及 5. 由於基金資產的某百份比會被分開用作償付其責任, 可能對有效投資組合管理或應付購回要求或其他短期責任的能力造成阻礙 遠期外匯交易 遠期合約與期貨合約不同, 並非在交易所進行買賣, 亦無標準化規定 ; 再者, 銀行及交易商擔當此等市場的主事人, 按個別情況就每項交易進行議價, 故會有較高的對手方風險 若對手方違約, 基金或不能取回預期的款項或收回資產, 導致損失未變現利益 期貨合約 期貨合約是雙方之間以當日議定價格 ( 期貨價格或行使價 ) 交換具標準數量及質量的特定資產, 並於特定未來日期 ( 即交付日期 ) 交付的標準化合約 該等合約普遍會在期貨交易所進行買賣 虧損金額 ( 以及利潤金額 ) 並無上限 舉例而言, 如相關特定資產為商品指數, 期貨合約可能缺乏流動性, 理由為若干商品交易所透過規例對若干期貨合約價格在某單一日子內的波動作出限制, 即所謂 每日價格波動限額 或 每日限額 某一特定期貨的合約價格所增加或減少的金額一旦相等於每日限額, 則該期貨的倉盤不可進行或平倉, 除非交易商願意按照該限額或在該限額內進行交易 如與對手方進行交易或就交易向對手方存置保證金或抵押品, 基金亦可能會承受與對手方有關的信貸風險, 以及須承受對手方違責的風險 基金可以投資於若干期貨合約, 故或會涉及承擔若干責任及權利和資產 作為保證金存於經紀的資產未必會由經紀存於獨立賬戶 因此, 倘若經紀無力償債或破產, 有關經紀的債權人可能取得有關資產 對沖技巧 基金可運用各種金融工具, 例如期權 利率掉期 期貨及遠期合約等, 以尋求對沖基金倉盤因貨幣匯率變動 股票市場 市場利率及其他事件所致的價值下滑 如基金倉盤價值下滑, 對沖該等倉盤的價值下滑將不會消除該等倉盤的價值波動或避免虧損, 但有關對沖將設立其他倉盤, 旨在從相同發展中獲利, 以減少基金的價值下滑 然而, 如基金倉盤價值上升, 對沖交易亦會限制基金獲利機會 如出現任何變更或發生任何事件, 基金可能無法以足以保障其資產免受該變更而預期所致的基金倉盤價值下滑影響的價格對沖該等變更或事件 此外, 可能無法對沖若干變更或事件, 或投資經理可能選擇不進行任何對沖 此外, 概不保證基金為對沖而運用金融衍生工具將會完全有效, 在不利情況下, 如運用金融衍生工具無效, 基金可能會蒙受重大損失 槓桿風險 當基金購買證券, 基金的風險限於損失其投資 如交易涉及期貨 遠期 掉期或期權, 基金的負債可能無限大, 直至平倉為止 場外交易 場外交易在金融工具由雙方直接而非透過證券交易所買賣時進行 如基金透過場外交易購入證券, 由於該等證券傾向流動性有限, 故概不保證基金將能夠將該等證券的公平價值變現 缺乏規例 一般而言, 場外交易的規例及監管較在部份證券交易所訂立的交易為少 此外, 許多提供予若干證券交易所參與者的保障未必可就場外交易而提供 對手方違責 基金亦可能會因其在掉期協議 回購交易 期貨外匯匯率及其他金融或衍生工具合約的持倉而承受對手方的信貸風險 場外交易乃根據基金與對手方之間協定的條款及條件執行 倘若對手方面臨信貸問題並因而違反其責任及基金被延誤或妨礙行使其有關其投資組合之投資的權利, 基金可能會遭遇其倉盤價值下跌 損失收入及因維護其權利而招致成本 對手方風險會按照基金的投資限制而定 不論基金施行何種措施以減輕對手方風險, 概不能保證對手方不會違責或基金不會因此而就該等交易蒙受虧損 28

118 期權 期權交易也可能涉及高度風險 就已購入的倉盤而言, 期權持有人的風險限於設立該倉盤的購入成本 價外 (Out of the Money; OTM) 倉盤 ( 特別是即將到期的倉盤 ) 將出現期權倉盤的價值下滑 掉期協議 掉期協議可就多種不同類型投資或市場因素而個別商議及構建而成 掉期協議會視乎其結構而提高或減低基金所涉及的策略 長期或短期利率 外幣價值 企業借貸率或其他因素 掉期協議可有多種不同形式, 並有多種名稱 視乎該等掉期協議的用法而定, 掉期協議可提高或減低基金的整體波動性 掉期協議表現的最重要因素為特定利率 貨幣或其他因素的變更, 上述各項釐定應支付予對手方或可從對手方獲得的金額 如掉期協議需要基金支付款項, 基金必須準備在到期時付款 此外, 如對手方的信用可靠性下滑, 可預期與該對手方訂立的掉期協議價值亦會下滑, 並可能會令基金蒙受虧損 證券融資交易的相關風險 訂立總回報掉期為單位信託基金及其投資者帶來數項風險 相關基金須承受的風險, 是證券融資交易的對手方可能未能履行責任, 退還相等於相關基金向其提供的資產 如相關基金未能變現向其提供的抵押品以支付對手方違約, 亦須承受流動性風險 該等交易亦可能附帶法律風險, 運用標準合約進行證券融資交易可能會令基金承受法律風險, 例如有關合約或未能準確反映合約各方的意向, 或未能於對手方註冊成立的司法管轄區執行有關合約 該等交易亦可能涉及營運風險, 運用證券融資交易及抵押品的管理須承受因內部程序 人事及系統的不足或失敗, 或外在事件所致的虧損風險 對手方再用任何抵押品的任何權利亦可能產生風險, 有關內容載於下文 與抵押品管理有關的營運風險 與借股有關的風險 借股或會涉及借貸人可能無法及時歸還借出的證券, 以及抵押品價值跌至低於借出證券價值的風險 與回購協議有關的風險 在獲給予抵押品的對手方倒閉的情況下, 基金可能蒙受損失, 因為在收回所給予的抵押品時可能有所延誤, 或原本收取的現金可能因抵押品的定價不準確或市場走勢而少於給予對手方的抵押品 與逆回購協議有關的風險 在獲給予現金的對手方倒閉的情況下, 基金可能蒙受損失, 因為在收回所給予的現金時可能有所延誤, 或難以將抵押品變現, 或出售抵押品的收益可能因抵押品的定價不準確或市場走勢而少於給予對手方的現金 稅務 倘基金投資於衍生工具, 一般風險 - 稅務 一節的所述事宜亦可能適用於衍生工具合約 衍生工具對手方 組成衍生工具相關投資的市場或基金的註冊或營銷市場的監管法律之稅務法律或其詮譯的任何變更 法律風險 一般而言, 場外衍生工具會根據按國際掉期及衍生工具協會 (International Swaps and Derivatives Association) 為衍生工具主協議 (derivatives master agreement; 由合約各方之間議定 ) 設立的標準訂定的合約進行 運用該等合約可能會令基金承受法律風險, 例如有關合約或未能準確反映合約各方的意向, 或未能於對手方註冊成立的司法管轄區執行有關合約 與抵押品管理有關的營運風險 場外衍生工具的運用及所獲抵押品的管理須承受因內部程序 人事及系統的不足或失敗, 或外在事件所致的虧損風險 如根據中央銀行施加的條件重新投資現金抵押品, 基金將須承受現金抵押品所投資的相關證券發行人失敗或違約的風險 營運風險的管理乃透過投資經理的風險委員會設定的政策所設立 該等政策為高水平的風險評估設立標準, 並監察及報告業務內的風險, 以及分析該等已上報的營運風險事件 借款 信託契據賦予基金經理權力在 UCITS 規例下的限制下行使單位信託基金所有借款權力, 並有權將單位信託基金資產押記為任何該等借款的抵押 29

119 根據 UCITS 規例, 基金不可批出貸款或擔任第三方擔保人, 亦不得借入款項, 惟不超過其淨資產 10% 的款額的暫時借款以及 UCITS 規例另行准許者除外 基金可以對銷貸款協議的方式取得外幣 倘基金的外幣借款超過對銷存款的價值時, 基金經理須確保超出的金額就 UCITS 規例而言被視為借款 根據 UCITS 規例及中央銀行的可轉讓證券集體投資計劃規例的規定, 倘基金須就衍生工具交易向相關對手方提供抵押品, 基金經理可把不時價值與所需抵押品相關金額相等的相關基金資產, 質押予相關衍生工具對手方 收費及開支 以下費用及開支適用於每一基金 基金收費及開支 基金經理 基金經理根據信託契據有權按相關補充文件所訂明的年率收取管理費 管理費須按月期末支付, 並將參考各基金歸屬於相關類別於相關基金及相關類別計算資產淨值當天的資產淨值計算 至於基金在集體投資計劃的投資乃由.. (i) 基金經理直接或透過受委人管理 ; 或 (ii) 因與基金經理受共同管理及控制而有聯繫的另一家公司, 或因基金經理直接或間接持有其資本或投票權 10% 以上而有聯繫的另一家公司 ( 統稱為 相關基金 ) 管理, 則以下條件將適用.. (a) 不得就基金於相關基金的投資收取認購費 轉換費用或贖回費用 ; (b) 不得在相關基金的層面收取任何管理費 ; 及 (c) 當基金經理或投資經理因其投資於相關基金而收取佣金 ( 包括相關佣金 ) 時, 該佣金必須退回予相關基金的財產 中 投資管理 基金經理將就單位信託基金資產的全權管理從其本身的管理費中支付投資經理的費用及開支 行政管理 保管及營運費 基金經理亦有權收取相關基金補充文件所載的一項行政管理 保管及營運費 ( 行政管理 保管及營運費 ) 應付的行政管理 保管及營運費將為各類別資產淨值某一百分比, 將每日累計, 並按月期末支付 基金經理將支付行政管理人及保管人的合計費用及開支, 以及若干其他費用及經常性開支, 例如應付各基金常駐代表及其他代理的費用 ; 各基金核數師及法律顧問的費用及開支 ; 副託管人費用 開支及按一般商業費率計算的直接交易手續費 ; 向愛爾蘭及任何其他國家的任何政府機構或證券交易所登記及維持登記基金所涉及的費用及開支 ( 包括付款代理人的費用及開支 ); 有關投資組合及單位類別貨幣對沖的開支 ; 報告及出版開支, 包括印刷 編製 廣告及分派基金章程 主要投資者資料文件 解釋備忘錄 定期報告或註冊表的費用 ; 以及向基金單位持有人報告的費用 行政管理 保管及營運費並不包括任何其他開支, 包括但不限於對基金投資收取的預扣稅 印花稅或其他稅項 ( 包括與處理及索回此類稅項相關的專業代理人的費用 ); 就基金投資產生的佣金及經紀費 ; 在磋商 實施或更改該等借款的條款 ( 包括就基金訂立的任何流動性融資額度 ) 時產生的借款利息及銀行收費 ; 中介人就基金的投資收取的任何佣金以及可能不時產生的非常或特殊成本及開支 ( 如有 ), 例如有關單位信託基金的重大訴訟 該等開支一般將以相關基金的資產淨值支付 開支將自產生有關項目的基金扣除, 或倘保管人認為未能將開支歸入任何單一基金, 有關開支一般將由保管人按相關基金資產淨值的比例分配至所有基金 付款代理人 當地法律 規例可規定委任付款代理人 代表 分銷商 代理銀行 ( 付款代理人 ), 以及由該等付款代理人維持供支付認購及贖回款項或分派的賬戶 單位持有人如選擇或必須按照當地規例透過中介機構而非直接由保管人 ( 例如是當地司法管轄區的付款代理人 ) 支付或收取認購或變現款項或分派, 須承擔中介機構就 (a) 在為單位信託基金或相關基金而向保管人傳遞認購款項之前的有關款項及 (b) 由該中介機構向相關單位持有人應付變現及 或分派款項之信貸風險 佣金 經紀佣金 30

120 基金經理及其任何正式委任的受委人有權根據信託契據, 就彼等作為單位信託基金代理進行的交易收取佣金及 或經紀佣金 倘基金經理或其任何正式委任的受委人成功洽商從經紀或交易商就基金購買及 / 或銷售證券收取的佣金中取回一部份, 則回扣的佣金應支付予基金 基金一般按慣常的機構經紀費率支付經紀佣金 基金交易可透過基金經理的聯繫人士進行 基金經理及其聯繫人士不會就基金交易自經紀或交易商收取現金或其他回佣 基金交易將按照最佳執行準則執行 從資本扣除的收費 每一基金普遍會自收入中支付其管理費及其他費用及開支 然而, 如沒有充足收入, 投資者應注意, 基金經理可規定基金從資本中, 及從已扣除變現及未變現資本虧損後的變現及未變現資本收益中支付其部份或全部管理費及其他費用及開支 單位持有人費用 初期手續費 可能在每單位資產淨值之上再收取最多 5% 的初期手續費並由基金經理保留, 基金經理可從中向授權代理支付佣金 就 C 類別及 I 類別單位而言, 董事將不收取初期手續費 基金經理亦有權為其本身在每單位資產淨值之上另加一項足以補貼印花稅及發行單位所涉及稅項的費用, 亦可為相關基金就財政及購買費用另加一項不超過每單位資產淨值 1% 的費用 然而, 一般情況下, 基金經理無意增收任何此等額外費用 分銷商費用 C 類別單位亦應支付一項分銷商費用, 有關費用相當於基金歸屬於各類別的資產淨值每年 1% 如有收取該項費用, 將應支付予根據基金經理或其受委人與相關分銷商訂立的配售代理協議而獲委任為分銷商的有關分銷商 分銷商費用應每日累計及於每季期末支付 贖回費用 根據信託契據, 基金經理有權於計算每單位資產淨值時, 為合適基金自每單位資產淨值扣除一筆不超過該每單位資產淨值 1% 的費用, 以支付於資產變現時為滿足贖回要求以提供款項所產生的徵費及開支 惟於一般情況下, 基金經理無意扣去任何有關徵費及開支, 惟 C 類別單位除外, 基金經理或其受委人可酌情決定就 C 類別單位收取歸屬於 C 類別的資產淨值 1% 的開支 倘此政策改變, 單位持有人將會事先獲書面通知有關徵收贖回費用的意向 轉換費用 發行單位時一般要支付的初期手續費及任何其他開支, 一般不會於轉換單位時徵收, 惟基金經理有權酌情收取任何有關開支 單位信託基金的行政管理 釐定資產淨值 基金經理已將資產淨值及每單位資產淨值的釐定轉授予行政管理人, 有關釐定須按照公認會計原則進行 在計算資產淨值時, 如因任何第三方定價服務提供的資料有任何不準確之處, 而行政管理人獲基金經理或投資經理根據單位信託基金的估值政策指示使用該等資料, 行政管理人對基金經理 單位信託基金因產生的任何錯誤而蒙受的任何損失概不負上責任 在計算資產淨值及每單位資產淨值時, 行政管理人對基金經理或其受委人 投資經理 或彼等的代理及受委人 ( 包括外聘估值師 主要經紀 做市商及 / 或獨立第三方定價服務 ) 向其提供的財務資料 意見或建議的準確性不承擔任何責任 行政管理人可接受 使用及依賴基金經理或其受委人或其他協定的獨立第三方定價服務向其提供的價格, 以釐定資產淨值及每單位資產淨值, 並且對於行政管理人獲基金經理 單位信託基金或外聘估值師根據基金經理估值政策指示使用, 並由基金經理 其受委人 外聘估值師或其他獨立第三方定價服務或其受委人提供的資料有任何不準確之處, 而導致資產淨值的計算有任何錯誤, 概不對單位信託基金 基金經理 保管人 外聘估值師 任何單位持有人或任何其他人士負責 基金經理承認並同意行政管理人並未獲聘用為外聘估值師或獨立估值代理 倘單位信託基金 基金或類別的資產淨值計算出現錯誤, 導致單位持有人從單位信託基金收取款項, 基金經理保留權利尋求向該單位持有人追回其追回的任何多出款額, 或重新發行標示單位信託基金 基金或類別正確資產淨值的成交單據 31

121 每單位資產淨值的計算方法為將基金的資產價值扣除其負債後, 除以該交易日已發行單位總數 每單位資產淨值乃調整至兩個小數位 ( 四捨五入 ) 任何基金的資產淨值釐定方法載於信託契據及於下文概述 各基金的資產淨值將以基金的基本貨幣計算, 方法為按照信託契據所載及下文概述的估值規定評估基金資產的價值, 然後扣除基金的負債 然而, 就若干存有不同類別的基金而言, 基金資產淨值按下文所載方式計算, 並根據各自價值分配至各種類別 分配至各類別的資產淨值部份除以相關類別當時已發行單位數目, 得出數額是相關類別的資產淨值 總括而言, 上市投資按其最後成交價估值, 或倘並未取得最後成交價, 則按中期市場價格估值 非上市投資則按基金經理或基金經理所挑選及保管人所批准的合資格人士 公司或法團 ( 包括投資經理 ) 以謹慎及真誠行事估計的可能變現的價值估值 現金存款及類似投資一般須按面值連同累計利息估值 ; 存款證參考期限 金額及信貸風險相若的存款證於相關交易日的最佳買入價估值 ; 而國庫券及匯票則參考期限 金額及信貸風險相若的工具於相關交易日在適當市場的價格估值 集體投資計劃 ( 倘適用 ) 按最近期公佈每股資產淨值 ( 如並無每股資產淨值 ) 或最近期公佈每股買入價 ( 撇除任何初期手續費 ) 估值 利息及其他收入與負債 ( 倘於可行情況下 ) 每日累計 遠期外匯合約須參考現行市場莊家報價 ( 即訂立相同價值及期限的新遠期合約的價格 ) 或 ( 如無有關價格 ) 對手方所提供的結算價估值 於受規管市場買賣的衍生工具按市場釐定的結算價估值 倘無有關結算價, 價值則為基金經理或基金經理所挑選及保管人所批准的合資格人士 公司或法團 ( 包括投資經理 ) 以謹慎及真誠行事估計的可能贖回的價值 場外衍生工具合約將每日按以下其中一項基礎估值: (i) 相關對手方提供的報價, 該估值須由保管人就此認可並獨立於對手方的人士最少每週批准或核實一次 ( 對手方估值 ); 或 (ii) 採用基金經理或基金經理所委任並獲保管人就此認可的合資格人士所提供的替代估值 ( 替代估值 ) 倘採用該替代估值方法, 基金經理將按照國際最佳慣例及依循由如國際證券事務監察委員會組織 (IOSCO) 及另類投資管理協會 (AIMA) 等機構所制定的場外投資工具估值原則, 並將每月對照對手方估值進行調整 倘出現重大差異, 將盡快作出調查及解釋 倘基金經理認為有需要, 特定投資可以保管人批准的其他估值方法估值 倘未能按照上述方法確定投資的價值, 則按基金經理以謹慎及真誠行事或基金經理所委任並獲保管人就此認可的合資格人士所估計的可能贖回的價值釐定 信託契據亦規定, 儘管上文所述, 如基金經理經考慮貨幣 適用利率 到期日 可銷售性及 / 或其可能認為相關的其他考慮因素後, 認為需要作出調整任何投資的價值以反映其公平價值, 則可在保管人的同意下作出該調整 有關公平價值定價及可使用公平價值定價的情況之說明載於下文 公平價值定價 公平價值定價 (FVP) 可定義為應用基金經理於基金的估值點對基金在出售一隻或以上證券甚或全部證券投資組合時可能獲得的金額, 或在購買一隻或以上證券甚或全部證券投資組合時預期支付的金額之最佳估計, 旨在提供一個較合理的交易價格, 以保障繼續持有 新進及退資的投資者 如基金經理認為市況可能出現最後適用實時報價或估值點不能最佳地反映某股票的買入及賣出價, 則可採用公平價值定價 由於相關證券交易所的收市時間與基金的估值點不同, 基金可能對其投資進行較其他證券頻密的公平價值定價, 而就部份基金而言, 可能每日進行公平估值 基金經理已決定, 相關指數或其他適當的市場指標在證券交易所收市後出現變動, 可顯示市場報價並不可靠, 並可能觸發對若干證券進行公平價值定價 因此, 就基金的投資給予的公平價值不一定是有關投資在一級市場或交易所的報價或公佈價格 如某證券暫停買賣 ( 例如由於金融違規行為 ) 或其價格可能已受到其最後市場定價後出現的重大事件或消息之影響, 各基金會透過對該證券進行公平估值, 試圖訂定基金在現時出售該證券時可合理預期獲得的價格 如在無預期的情況下市場因不可抗力事件仍然關閉, 亦需要採用公平價值定價 攤薄調整 在計算單位信託基金及各基金的資產淨值時, 基金經理可在保管人的批准下 :(i) 如於任何交易日, 接獲的所有贖回要求的價值總額超過所有單位申請的價值時, 向下調整單位信託基金或任何基金的資產淨值或 (ii) 如於任何交易日, 就該交易日接獲的所有單位申請的價值超過所有贖回要求的價值總額時, 向上調整單位信託基金或任何基金的資產淨值, 惟在各情況下, 只要單位信託基金或各基金持續經營, 基金經理的估值政策應貫徹地在各類別資產中應用, 亦將在單位信託基金或各基金的存續期內貫徹應用 ( 由本章程日期起生效 ) 基金經理僅擬於出現重大或經常性淨贖回或認購時, 才行使此酌情權, 以保障持續單位持有人所持單位的價值 該等價格及該調整數額的計算, 可能計及任何估計市場差價 ( 相關證券的買 賣差價 ) 徵稅 ( 例如交易稅項 ) 及收費 ( 例如結算成本或買賣佣金 ) 及其他與調整或出售投資及保留相關基金的相關資產的價值有關的交易成本之撥備 應用上述定價方法時將遵循中央銀行的規定 每單位資產淨值的提供 除暫停贖回基金單位的情況外, 在下文標題為 暫停贖回 一節所述情況下, 各類別的每單位資產淨值將可於霸菱網站 查閱 價格亦可於基金經理的註冊辦事處 投資經理及付款代理人的辦事處查證, 地址載於本章程 各方名錄 一節 該等資料將與前一個交易日的每單位資產淨值相關, 並僅供參考, 並非作為按該每單位資產淨值認購或贖回單位的邀請 如屬上市單位, 每單位資產淨值亦將於計算後立即通知愛爾蘭證券交易所, 並可於網站 上查閱 32

122 股息政策 信託契據規定保管人於扣除 費用及開支 所載的開支及其他各項目 ( 歸屬於該項基金的收入 ) 後, 以就每項基金收取股息及利息的方式, 於各會計期間向相關類別的單位持有人分派不少於盈餘收入淨額的 85% 此外, 基金經理或會就其認為維持合理分派水平而言屬合適的情況下, 向相關基金或類別單位的持有人分派任何資本收益 ( 經扣除相關基金應佔的已變現及未變現資本虧損 ) 的部份 基金經理可酌情就任何分派基金或類別宣佈額外的股息支付日期 基金的收入分派 ( 如有 ) 擬將按下文相關補充文件所載方式支付 由宣佈有關分派的日期起計的六年期間後任何未領取的分派將告失效, 並應退還相關基金 在下文 重新投資收入分派 所述基金經理的政策的規限下, 分派款項將以相關單位類別的相關貨幣, 電匯至申請表格所載的賬戶, 有關風險由合資格獲發分派款項的人士承擔 如投資者有意對付款指示作出任何變更, 有關變更必須以書面方式, 由唯一單位持有人或所有聯名單位持有人簽署, 通知基金經理 以電子方式轉賬所招致的任何收費可能由單位持有人支付 然而, 倘單位持有人 ( 或倘為聯名持有單位, 則各單位持有人 ) 向基金經理提出書面要求, 分派款項可以任何其他主要貨幣支付, 惟所安排款項的開支及風險由單位持有人承擔 透過銀行過戶支付任何分派付款所涉及的開支由單位持有人承擔 為確保任何類別的應付分派水平不會於相關會計期間受到該類別單位的發行 轉換或贖回所影響, 基金經理將採取均等化安排 如已向單位持有人作出分派, 並因任何理由被退回, 有關款項將存於收款賬戶內, 直至提供有效的銀行詳情為止 重新投資收入分派 基金經理將自動把任何分派權益重新投資於相關基金的相關類別的其他單位 : i) 除非分派價值超逾 100 美元 ( 或等額貨幣 ) 50 英鎊或 100 歐元 ( 視乎單位的相關計值而定 ), 並於相關分派日期前最少 21 日接獲單位持有人提出相反的書面指示 ii) 如分派少於 100 美元 ( 或視乎單位的相關計值而定的等額貨幣 ), 則由基金經理酌情決定以現金分派或重新投資 iii) 在所有情況下, 倘若單位持有人的反洗黑錢文件不齊全或尚未完全致令行政管理人滿意, 及 或單位持有人並未提供申請表格正本 額外單位將於分派當日, 或倘當日並非交易日, 則為下一個交易日, 按其他單位發行的相同方式計算所得價格發行, 惟不會產生任何初期手續費 然而, 可供認購的額外單位數目不設下限, 有需要時將發行零碎單位 單位持有人亦可於申請單位時或其後書面要求基金經理向彼等支付所有應得分派 單位持有人提出的所有要求將一直有效, 直至以書面方式收回要求或 ( 倘為較早者 ) 提出要求人士不再為單位持有人為止 申請程序 單位申請必須於各交易日的估值點前收妥 單位將按相關交易日適用的每單位資產淨值發行, 惟倘該單位所屬類別現時並無發行單位, 單位將按以下兩者其中之一發行 :a) 就歐元計值類別而言,10 歐元的首次發售價, 就英鎊計值類別而言,10 英鎊的首次發售價, 就美元計值類別而言,10 美元的首次發售價, 以及就所有其他貨幣計值的類別而言, 相當於 10 美元的相關貨幣等值的首次發售價 ; 或 b) 相當於 A 類別 I 類別或 C 類別的相關類別之最近期可得每單位資產淨值 ( 已按現行匯率就貨幣轉換作出調整 ) 如單位所屬類別現時並無發行單位, 首次發售期將於 2018 年 5 月 1 日上午 9 時正 ( 愛爾蘭時間 ) 開始並於 2018 年 5 月 30 日中午 ( 愛爾蘭時間 ) 結束, 或董事可能同意並通知中央銀行的其他日期及 / 或時間 首次認購必須於填妥申請表格後, 以書面方式向基金經理提交 ( 由行政管理人轉交 ), 地址或傳真號碼載於申請表格 已簽署的申請表格正本必須連同有關反洗黑錢活動規定的證明文件一併由基金經理及時收妥 倘提供的任何詳情有所變更, 包括閣下的地址 其他聯絡資料 ( 例如電話號碼 電郵地址 ) 或銀行賬戶資料, 請立即致函通知行政管理人, 地址載於本基金章程 各方名錄 一節, 否則, 可能導致延遲處理隨後任何指令 隨後認購可於填妥增購表格後, 以傳真方式向基金經理提交 ( 由行政管理人轉交 ) 此外, 投資者可在基金經理的同意下後, 透過電子訊息服務 ( 例如 EMX 或 SWIFT) 作出認購 倘要求於交易日愛爾蘭時間中午 12 時正後收妥, 將當作於下一個交易日收妥處理 以傳真方式遞交的申請即使其後並無書面確認, 基金經理將當作落實申請處理 一經基金經理接納, 不得撤回申請 基金經理可酌情豁免各類別的最低投資額 最低持有額 33

123 基金經理及行政管理人保留權利, 按照其視為就遵守反洗黑錢活動條例而言屬恰當的方式, 索取申請人身份證明文件 倘並無令人信納的證據或基於任何其他理由, 基金經理有權拒絕受理全部或部份申請 ( 詳情請見上文標題為 反洗黑錢及反資助恐怖活動措施 一節 ) 倘申請遭基金經理 行政管理人或分銷商拒絕受理, 或會以電子轉賬方式退回申請款項或當中餘款, 風險及費用概由申請人承擔 有意投資者應注意, 彼等填妥申請表格, 即表示向基金經理提供個人資料, 這可能構成資料保障法例所界定的個人資料 有意投資者及登記單位持有人的個人資料須按私隱聲明處理 有意投資者簽署申請表格, 即表示同意基金經理 其受委人 其正式委任代理及任何彼等各自的相關 關聯或聯屬公司出 於記錄保存 安全性及 或培訓目的, 記錄向投資者致電及由投資者致電的電話內容 即使投資者已從單位信託基金 / 基金全面贖回, 行政管理人仍可及將根據適用法律持有全部或部份所提供的資料 將向每名成功申請人寄交確認通知 已結算的認購金必須在結算日期前收取 倘未能於結算日期前收訖全數已結算款項, 申請可遭拒絕, 而任何據此所配發或轉讓的單位可被註銷, 或基金經理可能將該項申請視為以該筆付款申請購買或認購的單位數目處理 倘於到期還款日尚未能收妥已結算款項而註銷認購, 基金經理保留向申請人追討所產生虧損的權利 基金經理保留權利限制未有事先收訖結算資金的交易 在該情況下, 投資者須就其於到期還款日前未有匯寄其認購款額或因其他原因未能遵守該申請表格的條款而導致任何有關人士蒙受或招致的任何及一切索賠 損失 責任或損害賠償 ( 包括律師費及其他相關實報實銷的開支 ), 彌償基金經理 行政管理人 保管人 單位信託基金 適用分銷商 投資經理及任何彼等各自的關聯公司 到期款項一般以相關基金的相關類別的貨幣支付 基金經理可接納以其他幣值付款, 惟有關款項將會兌換為相關類別的貨幣, 而基金經理僅會動用按現行匯率兌換後的所得款項 ( 扣除兌換相關開支後 ) 支付認購款項 以類別貨幣列值的單位價值將須承受與相關基金基本貨幣有關的匯率風險 基金經理已設立常設安排, 規定認購款項按申請表格所訂明以電子轉賬方式繳付 電子轉賬繳款應列出申請人姓名 銀行 銀行賬戶號碼 基金名稱及確認通知號碼 ( 倘已發出有關通知 ) 電子轉賬繳款產生的任何收費將由申請人支付 倘投資者擬以相關類別的貨幣以外任何貨幣支付款項, 務必與基金經理直接聯絡 可發行不少於千份之一單位的零碎單位 認購較此少的零碎單位的申請款項不會退還申請人, 惟將保留作相關基金資產一部份 信託契據亦准許基金經理按發行價發行單位, 作為基金經理所批准投資轉歸保管人的代價 反洗黑錢及反資助恐怖活動措施 旨在反洗黑錢及反恐佈活動的措拖規定詳細核實投資者身份, 及在適當情況下, 根據風險敏感程度對實益擁有人進行詳細身份核實 高知名度政治人物 (Politically exposed persons( 高知名度政治人物 ), 在上年的任何時候獲委託重要公眾職務的個別人士 ), 以及該人士的直繫親屬或所知與該等人士有緊密關係的人士的身份亦需被核實 舉例而言, 個別人士可能需要出示護照或身份證副本, 連同其住址證明 ( 例如公用事業賬單或銀行月結單及稅務居住地證明的副本 ) 如屬企業投資者, 該等措施可能規定其出示公司註冊 ( 及任何更改名稱 ) 證書 說明書及組織章程細則 ( 或同等文件 ) 所有董事的名稱 職業 出生日期以及居住及營業地址的經核證副本 視乎每一申請的情況, 可能毋須呈交詳細的身份核實證明, 舉例而言, 倘有關申請乃透過相關第三方作出 ( 按 Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 中界定 ) 在上文所指的相關第三方位於獲愛爾蘭認可, 具有同等反洗黑錢及反資助恐佈活動規例, 並符合其他適用情況 ( 例如可出示承諾書, 以確實其已進行適當的投資者身份核實, 並將根據規定期間保留該等資料, 並將按要求向基金經理或行政管理人提供該等資料 ) 的國家的情況下, 此項特例方予以適用 上述詳情僅為舉例例子, 基金經理及行政管理人各自保留在申請基金單位時 ( 以及在保持業務關係期間 ) 要求任何該等所需資料或文件的權利, 以核實投資者 ( 及投資者的實益擁有人 ( 如適用 )) 的身份 特別是, 基金經理及行政管理人各自保留權利, 以進行與被歸類為高知名度政治人物的投資者有關的額外程序 核實投資者身分須在確立業務關係前進進行 在任何情況下, 所有投資者均須在首次接觸後的合理切實可行情況下盡快給予身份證明 如投資者或申請人延遲或未能為核實目的給出示任何所需資料, 基金經理或行政管理人可拒絕接納申請及認購款項, 並將所有認購款項退回或強制贖回該單位持有人的單位及 / 或可能延遲支付贖回所得款項 ( 倘單位持有人未能出示有關資料, 不會支付贖回所得款項 ) 倘在該等情況下, 單位申請未獲處理, 或單位被強制回購或延遲支付回購所得款項, 基金經理 投資經理或行政管理人概毋須向認購人或單位持有人負責 如申請被拒絕, 行政管理人可能會根據任何適用法律, 以電子轉賬方式將申請款項或其餘額退回其原先支付的賬戶, 有關成本及風險概由申請人承擔 倘單位持有人並未出示核實身份所需資料, 基金經理或行政管理人將會拒絕支付所得款項, 以及任何該等所得款項將存於收款賬戶 就強制贖回的現有所持單位而言, 贖回所得款項將存於傘子現金賬戶, 直至基金經理或行政管理人已核實單位持有人的身份至滿意為止 34

124 傘子現金賬戶 在單位因未能提供核實所需的資料而遭強制回購的情況下, 贖回所得款項將存於 傘子現金賬戶 ( 於下文詳述 ), 因此, 投資者應注意, 該等所得款項應被視為相關基金的資產 傘子現金賬戶是代表單位信託基金以保管人的名義開立的賬戶, 其目的為持有到期應付投資者但無法向相關投資者轉賬的贖回所得款項 相關投資者將為相關基金的無抵押債權人, 直至基金經理或行政管理人信納已完全遵守反洗黑錢及反資助恐怖活動程序為止, 方會發放贖回所得款項 基金終止後的任何有關未領取的款項亦將存於傘子現金賬戶 ( 見標題為 單位信託基金的存續期 一節 ) 如果相關基金或單位信託基金無力償債, 概不保證相關基金或單位信託基金將有足夠資金全數支付無抵押債權人 到期應收存於傘子現金賬戶的贖回所得款項之投資者, 將與相關基金所有其他無抵押債權人具相同地位, 並將有權按比例獲得由處理無力償債的人員向所有無抵押債權人提供的款項 因此, 在該等情況下, 投資者未必能夠收回原先支付予傘子現金賬戶以轉發予該投資者的所有款項 因此, 投資者應確保基金經理或行政管理人為遵守反洗黑錢及反欺詐程序所需的所有文件, 均於認購單位時及時提交予基金經理或行政管理人 基金經理及行政管理人保留權利在保持業務關係的任何時候, 向投資者收取任何額外資料或文件, 以及在獲得基金經理滿意的額外資料或文件前不得為投資者提供服務 基金經理及行政管理人不得依賴第三方履行此項責任, 該責任應為基金經理及行政管理人的最終責任 單位認購 根據信託契據, 基金經理獲賦予獨有權利, 就單位信託基金發行任何類別單位, 並於保管人及中央銀行同意下, 增設新單位類別, 亦可全權酌情接納或拒絕任何單位申請的全部或其中部份 各類別的首次發行價由基金經理釐定 各類別所有單位將享有同等權益 單位發行一般自接獲申請的交易日至該交易日愛爾蘭時間中午 12 時正進行 倘任何人士提出的申請於首次發行後的交易日愛爾蘭時間中午 12 時正前接獲, 向有關人士發行單位的價格將參考該交易日估值點釐定的每單位資產淨值計算 基金經理有絕對酌情權宣佈停止接受任何基金或類別的進一步認購 相關基金或類別的現有單位持有人在停止前會獲得通 知, 基金經理亦會通知分銷商及 或配售代理 基金經理因應當時市況, 基於信納符合基金單位持有人的最佳利益而行使此酌情權, 以停止接受基金的進一步認購 基金經理將可酌情決定在任何交易日重新接受相關基金或類別的認購, 而現有單位持有人將會在該重新接受認購前獲得通知 於單位持有人要求贖回單位的權利按下文 贖回單位 所述方式遭暫停的任何期間, 基金經理或不得發行或出售單位 單位申請人將獲通知有關延誤或註銷, 除非撤回申請, 否則有關申請將於暫停結束後的下一個交易日處理 所有單位將以記名形式發行, 但不會發出單位證書 申請過程涉及的單位登記, 一般於基金經理接獲相關登記詳情後二十一日內生效 擁有權將記錄於單位登記冊, 而投資者會獲配發賬戶號碼, 該號碼將顯示於基金經理接獲相關登記詳情後二十一日內寄發的登記通知內 所有與基金有關的通訊應列明閣下的賬戶號碼 每一基金的每單位資產淨值將由行政管理人計算, 並於行政管理人計算得出結果後知會愛爾蘭證券交易所, 不得延誤 於單位持有人要求贖回單位的權利按本章程 贖回單位 一節所詳述的方式暫停期間, 或會暫停計算每單位資產淨值 任何有關暫停事宜將通知中央銀行及愛爾蘭證券交易所, 不得延誤, 且於可行情況下, 將採取一切合理措施盡快結束任何暫停期間 基金經理 行政管理人或分銷商可基於任何原因或毋須任何原因, 包括特別是在基金經理或行政管理人 ( 如適用 ) 合理認為認購指令可能代表單位信託基金的過度交易或選時交易活動的模式時, 全權酌情拒絕全部或部份的單位認購指令 倘單位申請遭拒絕, 認購款項須在有關申請之日起計十四日內退還給申請人, 成本及風險由申請人承擔, 並且概不會就該退回的款項支付利息或其他賠償 概不會發出單位證書 收款賬戶 行政管理人根據中央銀行的投資者資金規例 (Investor Money Regulations) 為多個由基金經理管理的集體投資計劃操作收款賬戶 收款賬戶乃以行政管理人名義在投資者資金規例規定的信貸機構 ( 相關銀行 ) 存管, 並獲命名為 收款賬戶 或 Coll a/c 收款賬戶內的所有款項將由行政管理人以獨立方式在相關銀行存管, 為其持有該投資者資金的投資者之利益及代表該等投資者進行託管, 風險由投資者承擔 相關銀行將會代表行政管理人在獨立賬戶中持有現金 ( 為其持有投資者資金的投資者之利益而持有 ), 所得款項與相關銀行為行政管理人本人持有的任何款項分開處理 如相關銀行無力償債, 35

125 行政管理人應代表代其持有收款賬戶的款項之投資者向相關銀行提出申索 如行政管理人無力償債, 收款賬戶的款項概不會構成行政管理人資產的一部份 行政管理人在投資於基金前所收取的任何認購款項將存於收款賬戶中, 並將不會構成相關基金資產的一部份, 直至該等款項由收款賬戶轉移至相關基金的賬戶為止 贖回所得款項將於結算日期支付至收款賬戶, 而分派則將於相關支付分派日期作出, 其時該等款項將不會再被視為相關基金的資產 此外, 由某一基金或類別 ( 原有基金 ) 轉換至另一基金或類別 ( 新基金 ) 的任何轉換將會被視為自原有基金進行贖回, 以及向新基金進行認購, 相關所得款項將存於收款賬戶中, 直至轉入新基金為止 倘若單位信託基金的另一基金無力償債, 基金有權收取但可能因為收款賬戶的運作而已轉移至有關其他基金的任何金額的收回將須符合愛爾蘭信託基金法律的原則及收款賬戶的營運程序條款 收回有關金額時可能出現延誤及 / 或糾紛, 及破產基金可能並無足夠資金償還結欠相關基金的金額 因此, 概不保證有關基金或單位信託基金將收回有關金額 此外, 概不保證有關基金或單位信託基金在該等情況下將有足夠資金償還任何無抵押債權人 基金經理或行政管理人概不會就已存入收款賬戶的款項支付利息 贖回單位 單位贖回的要求可透過傳真或書面方式向基金經理提出 ( 由行政管理人轉交 ), 地址或傳真號碼載於申請表格 此外, 投資者可在基金經理的同意下, 透過電子訊息服務 ( 例如 EMX 或 SWIFT) 贖回單位 只有在向單位持有人於記錄上所示的賬戶已付款的情況下, 方可於接獲電子指示後處理贖回要求 在基金經理收到認購申請表格正本 ( 連同證明文件 ) 前, 不會支付贖回款項 單位亦需在支付贖回款項前予以悉數登記及結算 在本節所述的規限下, 基金經理於交易日愛爾蘭時間中午 12 時正前接獲的贖回單位申請, 將參考該交易日的估值點所釐定的每單位資產淨值處理 於愛爾蘭時間中午 12 時正後接獲的贖回要求, 將被當作於下一個交易日接獲處理 即使其後並無書面確認, 以傳真方式提出的要求將被基金經理當作落實指示處理, 一經基金經理接納, 不得撤回要求 基金經理及行政管理人將不予支付單位贖回所得款項及收入, 並可自動重新投資股息權益, 直至接獲投資者發出的經簽署的申請表格正本為止, 屆時會根據法定 監管 歐洲聯盟或其他責任向單位持有人進行或落實其認為必要或合宜的完整識別程序 贖回單位的指令必須經單位持有人簽署, 方獲支付贖回所得款項 贖回所得款項將按照基金經理獲知會的首次贖回付款指示支付 倘投資者擬改變贖回付款指示, 有關變動須以經唯一單位持有人或所有聯名單位持有人簽署致基金經理的書面通知作出 基金經理將被視作獲授權處理任何據報為單位持有人且列明相關賬戶號碼的人士所發出任何贖回指示 除非基金經理獲登記單位持有人或聯名登記單位持有人另行書面指示, 否則將向登記單位持有人或以聯名登記單位持有人為受益人 ( 視適用情況而定 ) 支付贖回所得款項 有關單位持有人的登記詳情及付款指示的修訂, 僅於接獲文件的正本時生效 贖回所得款項將以電子轉賬方式支付 透過電子轉賬方式作出支付所產生的任何費用, 或須由單位持有人支付 倘單位持有人有意以相關類別之貨幣以外的貨幣收取贖回單位款項, 基金可另作安排 在此情況下, 單位持有人務必與基金經理直接聯絡, 以加快付款程序 或會向單位持有人收取貨幣兌換成本及其他包括電子轉賬的行政開支 在上述規限下, 到期應付的單位贖回金額將以相關類別的貨幣支付 付款一般於相關交易日的結算日期 ( 不包括因相關國家公眾假期而未能以相關類別的貨幣結算付款的日子 ) 或之前支付, 或倘為較遲者, 則會在基金經理接獲以傳真或書面發出並經妥為簽署的交易確認書後四個營業日內 ( 不包括因相關國家公眾假期而未能以相關類別的貨幣結算付款的日子 ) 支付 倘某基金的相關證券之結算有所延誤, 則可能使贖回款項的支付出現延遲, 惟延遲情況不會超過由收到贖回要求之日起計 10 個營業日 如已持有所有與單位持有人有關的相關文件及資料, 贖回所得款項將由收款賬戶支付至單位持有人所提供的銀行賬戶 如已支付贖回所得款項, 但該款項被單位持有人的收款銀行拒絕收款, 則有關款項將退還至收款賬戶, 直至單位持有人提供其有效的銀行詳情為止 投資者可贖回或轉換部份所持單位, 惟不得導致單位持有人所持某類單位數目的價值少於相關類別的最低持有額 確認新單位持有狀況的登記通知書將寄予單位持有人 倘單位持有人未能於到期支付日期前支付認購款項, 基金經理可全權酌情決定贖回該單位持有人的部份或全部單位, 並根據 申請程序 下所述的彌償, 動用該贖回所得款項以償還單位持有人對單位信託基金 基金經理 投資經理或任何彼等各自的關聯公司的負債 36

126 贖回遞延政策 基金經理於保管人批准下, 有權將可於任何交易日贖回的單位數目限制於該基金已發行單位總數的 10%( 贖回遞延政策 ) 贖回遞延政策將按比例適用於有意於相關交易日贖回單位的所有單位持有人, 而在該情況下, 基金經理將進行合計佔基金當時已發行單位 10% 的股份贖回 倘基金經理決定應用此贖回遞延政策, 超出 10% 而又尚未贖回的單位將結轉至下一個交易日, 並將於下一個交易日贖回 ( 須受下一個交易日繼續操作贖回遞延政策所限 ) 如果贖回要求被結轉, 基金經理將即時通知受影響的單位持有人 實物贖回 贖回要求將通常以現金結算 然而, 基金經理可按其酌情在單位持有人有意於單一交易日贖回相當於任何基金資產淨值 5% 或以上的單位時及在單位持有人要求作實物分派或已同意進行該實物形式贖回時, 以實物分派形式應付任何贖回要求 因此而贖回的資產的價值應相等於贖回價 ( 根據信託契據的條文計算 ) 減就該項出售或實物形式分派而招致的任何費用 該等費用應包括一筆相當於就註銷單位而須支付的任何印花稅儲備稅 (SDRT) 之金額 用作分派的資產將經諮詢保管人及獲保管人批准後按基金經理認為屬公平的基準而被挑選, 以致毋損其餘單位持有人的權益 單位持有人可向基金經理發出書面通知, 要求基金經理出售該等投資及支付出售所得款項 ( 減除該項出售而產生的任何成本 ) 如贖回單位持有人已選擇或已同意接受以股票實物形式分派相當於任何基金資產淨值 5% 或以上單位的贖回所得, 在為決定是否可於某交易日應用贖回遞延政策而計算就已收到贖回要求的單位之百分比時, 該等已按實物形式結算的單位將不計算在內 如單位持有人已選擇或已同意接受部份或全部實物形式的贖回所得, 基金經理應知會單位持有人, 贖回遞延政策可在被要求以現金結算時而實施 暫停贖回 此外, 基金經理可於下列任何期間, 於保管人的批准下隨時暫停單位持有人要求贖回任何類別單位的權利及 或可能延遲支付任何有關贖回所涉及的任何金額 : (i) 相關基金重大部份投資報價 上市或買賣的任何市場被關閉, 或於有關市場進行買賣受限制或被暫停的任何期間 ; (ii) 於任何有關市場進行買賣受到限制或被暫停的任何期間 ; (iii) 出現基金經理認為未能正常出售相關基金投資或出售對該類別單位持有人利益構成嚴重影響的任何情況 ; (iv) 一般用於釐定相關基金資產淨值的通訊方式出現任何故障, 或基於任何其他理由未能迅速及準確釐定相關基金任何 投資價值 ; (v) 保管人未能調動所需資金以支付贖回單位應付款項, 或基金經理認為變現投資或有關贖回所涉及資金轉讓未能按正 常價格或一般匯率進行的任何期間 已要求贖回任何單位的單位持有人將獲知會任何有關暫停, 而除非單位持有人撤回要求 ( 但須符合上述限制 ), 否則彼等的要求將於解除暫停後首個交易日處理 中央銀行及愛爾蘭證券交易所將即時獲知會任何暫停買賣, 及在任何情況下, 如在同一營業日內實際可行, 亦知會單位信託基金營銷所在成員國的其他主管機關 流動性風險管理 基金經理已制定一項流動性管理政策, 有關政策可供基金經理識別 監察及管理單位信託基金的流動性風險, 並確保每一基金的投資流動性狀況將可促進遵循基金的相關責任 基金經理的流動性政策將基金的投資策略 流動性狀況 贖回政策及其他相關責任納入考慮 流動性管理系統及程序包括適當的伸價措施, 以應付預計或實際的流動性不足或單位信託基金的其他困境 總括而言, 流動性管理政策監察由單位信託基金及每一基金所持投資的狀況, 並確保該等投資就上文贖回單位所載的贖回政策而言為適當, 並將促進其遵循每一基金的相關責任 基金經理尋求確保每一基金的投資策略 流動性狀況及贖回政策相一致 在投資者有能力以與所有投資者的公平對待一致的方式, 並按基金經理的贖回政策及其責任贖回其投資時, 將視為符合單位信託基金的投資策略 流動性狀況及贖回政策 在評核是否符合投資策略 流動性狀況及贖回政策時, 基金經理將須考慮到贖回可能會對每一基金的獨立資產之相關價格或差價造成的影響 有關單位持有人贖回權利的詳情, 包括單位持有人於正常及特殊情況下的贖回權利, 以及現有的贖回安排載於上文本節內 合資格單位持有人及全部贖回 基金經理有權 ( 但無責任 ) 施加其認為必需的限制, 以確保由任何人士收購或持有的任何單位不會導致違反任何國家或政府機構的法律或任何要求 ( 包括任何外匯管制規例 ) 任何單位不會由美籍人士或日本人士收購或持有 ( 惟獲豁免遵守 1933 年美國證券法 ( 經修訂 ) 的要求及適用國家證券法的交易則除外 ), 或任何單位不會由下文 (a) 至 (f) 所述的任何人士收購或持有 37

127 基金經理可隨時發出書面通知, 以贖回或要求轉讓由下列人士直接或實益持有的單位 : (a) 如其持有違反任何國家或政府當局的任何法律或要求之任何人士或基於該等法律或要求不合資格持有該等單位之任何人士 ; (b) 任何美籍人士 ; (c) 任何日本人士 ; (d) (e) (f) 如基金經理認為其持有情況 ( 不論是否直接或間接影響該等人士及不論單獨觀之或連同任何其他關連或非關連人士觀之, 或基金經理認為相關的任何其他情況 ) 可能導致單位信託基金或其單位持有人產生或蒙受彼等原應不會產生或蒙受的任何稅務負擔或金錢損害之任何人士 ; 基金經理依據有關單位持有人的情況, 有合理理由相信其從事的任何活動可能導致單位信託基金或其整體單位持有人蒙受彼等原應不會蒙受的任何法規 金錢 法律 稅務或其他重大行政不利影響的任何單位持有人 ; 或 持有價值少於最低持有額的單位之任何人士 基金經理有權向該等人士發出通知, 要求彼等將該等單位轉讓予合資格或有權擁有單位的人士或提交贖回要求 倘若獲發上述通知的任何該等人士於該通知發出日期後 30 日內未能按上述轉讓該等單位或要求基金經理購買該等單位, 有關人士將被視為在 30 日屆滿時已立即要求基金經理購買其單位, 以及基金經理有權委任任何受委人代表該人士簽署就基金經理購買有關單位而言屬必需的文件 倘若持有相關類別或基金價值 75% 的持有人在正式召開及舉行的單位持有人大會上決議該等單位應予以贖回, 任何基金或單位信託基金的所有單位可由基金經理變現 基金經理可酌情議決在進行單位全數贖回前保留足夠款項以支付與單位信託基金或相關基金其後終止有關的成本 單位轉讓 每一基金的單位將可以經轉讓人簽署 ( 或如屬由法人團體進行的轉讓, 則須代表轉讓人簽署或由轉讓人蓋章 ) 的書面文書予以轉讓, 惟有關轉讓概不得令轉讓人或承讓人持有價值少於該基金的最低持有額的單位數目 在承讓人填妥指定申請表格及任何隨帶文件 ( 例如反洗黑錢文件 ), 及行政管理人接獲相關文件的正本前, 聲稱單位轉讓概不會生效, 亦不對基金經理具任何約束力 就此而言, 聲稱轉讓人的權力及義務將存續, 而聲稱轉讓人 ( 惟不包括聲稱承讓人 ) 將繼續被視為單位的登記持有人, 直至行政管理人接獲上述文件為止 如其中一名聯名單位持有人死亡,( 一名或多名 ) 尚存者將會獲保管人及基金經理認可為擁有以該等聯名單位持有人名義登記的單位所有權或權益的唯一人選 倘轉讓人並非居於愛爾蘭, 轉讓人亦須填妥非居民聲明, 以避免就贖回及分派獲得稅項減免 除獲豁免投資者外, 愛爾蘭居民單位持有人必須提前通知基金經理任何擬進行的單位轉讓 單位轉換 單位持有人可以上文 贖回單位 下所載方式通知基金經理, 申請於任何交易日將彼等所持任何類別 ( 原有類別 ) 的全部或其中部份單位, 轉換為同一基金或另一基金當時提呈發售的另一類別 ( 新類別 ) 的單位 有關贖回的一般條文及程序將同等適用於轉換情況 然而, 倘單位轉換將導致單位持有人所持原有類別或新類別單位數目的價值低於相關類別的最低持有額, 則不會進行轉換 將予發行新類別單位數目將按照下列公式計算 : 當中 : N = P(R x CF) S N P R - 指將予配發新類別的單位數目 - 指將予轉換原有類別的單位數目 - 指適用於相關交易日所接獲贖回要求的原有類別的每單位資產淨值 CF - 指基金經理釐定的貨幣兌換因素, 相當於原有類別及新類別基本貨幣 ( 倘兩者基本貨幣有別 ) 於相關交易日的實際匯率 38

128 S - 指適用於相關交易日所接獲認購申請的新類別的每單位資產淨值 基金經理 投資經理 保管人及行政管理人 基金經理 單位信託基金的基金經理為 Baring International Fund Managers (Ireland) Limited, 該公司於 1990 年 7 月 16 日在愛爾蘭註冊成立為私人有限公司 基金經理的已發行股本為 100,000 英鎊, 經已全部繳足股款 基金經理的公司秘書為 Matsack Trust Limited 於本章程日期, 基金經理的董事如下 : James Cleary:( 愛爾蘭居民 )Cleary 先生自 2002 年 6 月起擔任於愛爾蘭設立並經營基金顧問業務之 Cleary Consulting 的主事人 1986 年至 1990 年間, 其於倫敦及盧森堡擔任公職, 主要為金融服務部門服務 自 1990 年以來, 彼直接專注於境外基金之管理, 並於 1990 年 2 月至 1993 年 10 月期間, 為 State Street Bank 在盧森堡及多倫多建立並管理基金管理辦公室 ; 於 1993 年 10 月至 1997 年 6 月, 於都柏林擔任 PFPC 之財務總監 ; 於 1997 年 6 月至 2002 年 6 月, 於都柏林擔任 SEI Investments 之董事總經理 彼曾為愛爾蘭基金業協會 (Irish Funds Industry Association) 之委員會成員以及另類投資管理協會 (Alternative Investment Management Association) 的成員 彼曾於業內發表著作並進行演講, 並且為多間互惠基金公司及多間於愛爾蘭國際金融服務中心營運公司之董事 彼為特許註冊會計師協會的會員, 並取得 University of Limerick 的工商管理碩士學位 ( 榮譽學位 ) Timothy B. Schulze:( 美國居民 )Schulze 先生為 Barings LLC 之風險總監及環球風險管理主管 Tim 負責公司企業風險管理計劃之全球監督, 包括投資 對手方及組織風險職能 彼目前擔任數間設立於愛爾蘭及盧森堡之霸菱聯屬基金公司之董事會成員 Tim 自 2001 年起於業內工作 在 2003 年加入 Barings LLC( 先前為 Babson Capital Management LLC) 之前,Tim 花兩年的時間參與 MassMutual 之行政人員發展計劃 (Executive Development Program) Tim 持有 University of Colorado at Boulder 之文學士學位及 University of Massachusetts Amherst 的工商管理碩士學位 他為 CFA 特許持有人, 並受任為財務風險經理及專業風險經理, 亦為 CFA 協會 全球風險專業人士協會 (Global Association of Risk Professionals) 及專業風險管理人員國際組織協會 (Professional Risk Managers International Association) 之成員 Barbara Healy:( 愛爾蘭居民 )Barbara 是專業特許會計師, 在資產管理行業擁有超過 20 年的經驗 2004 年至 2009 年, Barbara 擔任 JPMorgan Hedge Fund Services 的全球業務主管, 兼任執行董事及歐洲 中東和非洲以及亞洲地區的技術解決方案主管 在其任職期間, 資產從 50 億美元增長至 1,000 億美元, 使公司成為對沖基金管理市場的頂級服務提供者 Healy 女士在 2002 年至 2004 年間曾為 Tranaut Fund Administration Ltd 運營業務, 該公司後來被 JPMorgan 收購, 此前則擔任 SEI Investments Europe 的會計主管 Healy 女士亦曾於 Banker s Trust 及 Chase Manhattan 擔任基金會計職位 彼目前擔任愛爾蘭 盧森堡及開曼登記基金的非執行董事 Barbara 持有商業學士學位 ( 榮譽 ) 及專業會計研究生文憑 彼為愛爾蘭特許會計師協會的成員, 亦為愛爾蘭董事學會的成員 Barbara 曾於 2011 年出席在瑞士洛桑國際管理發展學院舉行的 High Performance Boards Corporate Governance Programme David Conway:( 愛爾蘭居民 )Conway 先生為一名公司董事, 曾任 Ulster Bank 的高級行政人員 彼於投資管理行業擁有豐富的領導經驗, 包括投資組合管理 資產管理 基金行政管理 保管服務 私人客戶及財富管理 Conway 先生為愛爾蘭人, 在 Ulster Bank 工作逾 26 年, 擔任多個不同職務, 最近擔任 Ulster Bank 財富管理部門的董事 彼目前為多個資產類別的多個集體投資計劃的董事 Conway 先生持有 Trinity College Dublin 的經濟學榮譽學位, 並為一名經認許之投資基金董事 (Certified Investment Fund Director,CIFD) Julian Swayne:( 英國居民 )Swayne 先生為 霸菱 在歐洲的行政總裁 彼負責霸菱的英國主要經營實體的日常管理 他曾擔任 霸菱 的國際首席財務官, 亦曾於 1989 年在 Baring Asset Management 成立時加入該公司 Swayne 先生於 1997 年成為財務總監, 其後於 2016 年成立新 霸菱 時成為國際首席財務官 在加入 Baring Asset Management 之前, 彼曾於 Baring Brothers & Co 工作 在此之前,Swayne 先生曾在位於倫敦市的審計公司 Neville Russell 工作 Swayne 先生持有 Leicester University 的經濟學學位, 並於 1985 年獲得特許會計師資格 Peter Clark:( 英國居民 ) 為 Barings (UK) 的歐洲固定收益及私人投資的董事總經理及總法律顧問 彼於 2007 年加入公司, 此前於 Latham & Watkins 的倫敦辦公室擔任金融部門的資深成員 Peter 負責領導及管理 Barings (UK) 的法律團隊 彼參與分析投資機會的法律問題, 設立新基金, 就不良貸款投資及法律監督進行測試及重組討論 彼於 1999 年取得英格蘭及威爾斯高級法院的律師資格, 並於 2001 年成為 California State Bar 的成員 上述所有董事均為非執行董事 各董事的地址為基金經理的註冊辦事處 根據信託契據, 基金經理有權在委任信託契據規定的繼任人後隨時退任 保管人可在若干情況下撤換基金經理, 包括不少於 50% 當時已發行單位的持有人作出有關要求的情況 39

129 信託契據載有規管基金經理職責的條文, 並規定基金經理於若干情況下將獲得彌償, 惟因其在履行其職責時的疏忽大意 欺詐行為 不真誠或故意失責等例外情況除外, 並須受 UCITS 規例的條文及中央銀行據此施加的任何條件所規限 基金經理為 MassMutual Financial Group 旗下 Massachusetts Mutual Life Insurance Company 的間接全資附屬公司 MassMutual Financial Group 為以增長為目標的全球性多元化金融服務機構, 提供人壽保險 年金 傷殘收入保險 長期護理保險 退休計劃產品 結構性結算年金 信託服務 財務管理及其他金融產品及服務 除管理單位信託基金外, 基金經理亦管理 Baring China A-Share Fund plc Baring Alpha Funds plc 霸菱貨幣傘子基金 霸菱新興市場傘子基金 霸菱環球傘子基金 霸菱環球組合傘子基金 霸菱投資基金公眾有限公司 霸菱韓國聯接基金 Baring Component Funds 及 Barings Umbrella Fund plc 只有單位信託基金 霸菱環球傘子基金 霸菱投資基金公眾有限公司及霸菱新興市場傘子基金為 FSMA 的認可計劃 基金經理將時刻充份顧及對其管理的每一基金 ( 包括單位信託基金中的每一基金 ) 所負責的職務 倘在任何該等基金之間產生了任何利益衝突, 基金經理將考慮到其於信託契據下的義務, 以其客戶的最佳利益為先行事, 以求確保公平地解決該衝突 薪酬政策 基金經理已制定好薪酬政策 ( 薪酬政策 ), 旨在確保其薪酬常規可推動健全及有效的風險管理, 並與其相一致, 並不鼓勵冒險, 並與基金的風險概況一致 基金經理視薪酬政策為適合其規模 內部運作 性質 比例及複雜性, 並符合單位信託基金的風險概況 風險承擔及策略 薪酬政策將適用於已識別員工所獲得的固定及浮動 ( 如有 ) 薪酬 薪酬政策的詳情包括但不限於如何計算薪酬及利益, 以及識別負責給予薪酬及利益的人員的說明, 有關說明可於 上瀏覽, 投資者亦可索取印刷本 基金經理並無任何僱員, 只有非執行董事屬薪酬政策範圍 非執行董事 ( 不包括未有收取任何董事費的 Baring Asset Management Limited 關聯董事 ) 僅收取固定費用並且不會收取任何以表現為基準的薪酬或浮動薪酬, 因而避免潛在利益衝突 概毋須就非執行董事會成員費用支付退休金供款 就任何投資管理受委人而言, 基金經理規定.. (i) 獲分授該等活動 的實體須遵守與薪酬有關的監管規定, 該等規定與該等在 ESMA 指引 UCITS 指令的第 14 條下適用的規定同等有效 ; 或 (ii) 與獲分授該等活動的實體訂立適當的合約安排, 以確保其並無規避 ESMA 指引 UCITS 指令所載的薪酬規則 投資經理 根據投資管理協議條款, 基金經理已授權投資經理負責每一基金的投資管理 投資管理協議規定, 投資經理的委任可由任何一方向對方發出書面通知終止, 亦規定投資經理在有關情況下有秩序交接職務 投資經理在獲得中央銀行批准下可以將有關投資管理責任分授予包括集團公司在內的其他實體 由投資經理委任的任何副投資經理的費用及開支將由投資經理支付 任何獲委任為基金的副投資經理之詳情將應要求提供予單位持有人, 該等詳情亦會載於單位信託基金的定期報告內 投資經理為全球機構及零售客戶提供在已發展及新興股票及債券市場的資產管理服務 投資經理獲 FCA 認可及受其規管 投資經理於經營業務時可能與單位信託基金產生利益衝突 然而, 在進行可能產生利益衝突的任何投資時, 投資經理將以客戶的最佳利益為先行事, 並尋求公平地解決該衝突 當基金與投資經理的其他客戶之間出現共同投資機會時, 投資經理將確保基金以公平方式參與該等投資機會, 並公平分配該等共同投資機會 保管人 單位信託基金的保管人為 Northern Trust Fiduciary Services (Ireland) Limited 保管人為一家私人有限公司, 於 1990 年 7 月 5 日在愛爾蘭註冊成立 保管人的主要業務為提供託管服務及擔任集體投資計劃的信託人及保管人 保管人為 Northern Trust Corporation 的間接全資附屬公司 Northern Trust Corporation 及其附屬公司組成 Northern Trust Group,Northern Trust Group 為向機構及個人投資者提供全球託管及行政服務的全球主要服務提供者之一 於 2017 年 9 月 30 日,Northern Trust Group 所託管的資產總值逾 7.1 萬億美元 根據信託契據, 保管人可轉授其保管義務, 前提是.. (i) 保管人並無意因避免遵守 UCITS 規例的規定而轉授服務 ;(ii) 保管人可證明其有客觀理由作出該項轉授 ; 及 (iii) 保管人已在挑選及委任任何其有意轉授部份服務的第三方時行使一切妥善技巧 審慎及盡責, 並在定期審核及持續監察任何其已轉授其部份保管服務的第三方, 以及第三方就其所獲轉授的事宜所作的安排時保持行使一切妥善技巧 審慎及盡責 保管人的責任將不會因任何有關轉授而受到影響 保管人已向其全球副託管人 Northern Trust Company( 倫敦分行 ) 轉授其保管單位信託基金的金融工具及現金之責任 全球副託管人建議進一步將該等責任轉授予副受委人 有關保管人的詳情, 包括有關其職責之說明及任何可能出現的利益衝突 任何由保管人轉授的任何保管職務以及最近期的副託管人名單須向投資者免費提供 40

130 信託契據規定, 保管人應就 (i) 其 ( 或其正式委任的受委人 ) 所託管持有的金融工具的虧損負責, 除非其可證明有關虧損乃因保管人合理控制範圍以外的外來事件所致 ( 即使已盡一切合理努力, 該外來事件的所致後果仍屬不可避免 ), 則保管人將毋須承擔責任 ; 及 (ii) 所有其他因保管人的疏忽或故意不妥善履行其根據 UCITS 規例下的義務而產生的虧損負責 信託契據載有若干為保管人 ( 及其各高級員工 僱員及受委人 ) 的利益而設的彌償保證, 惟該彌償保證設有限制, 概不包括保管人根據 UCITS 規例須承擔責任的事宜, 或因保管人的疏忽或故意不履行其職務所致的事件 有關保管人 其職責 可能出現的任何衝突 保管人轉授的保管職能 受委人及副受委人名單, 以及自有關轉授可能產生的任何利益衝突之更新資料將應要求提供予單位持有人 行政管理人 根據行政協議條款, 基金經理已委任行政管理人為單位信託基金的行政管理人 基金經理亦已根據行政協議將過戶登記處的職責授予行政管理人 行政協議規定, 行政管理人的委任可由任何一方向對方發出不少於 24 個月書面通知而終止 行政管理人為一家於 1990 年 6 月 15 日在愛爾蘭註冊成立的公司, 並為 Northern Unit Trust Corporation 的間接全資附屬公司 Northern Unit Trust Corporation 及其附屬公司組成 Northern Unit Trust Group,Northern Unit Trust Group 為向機構及個人投資者提供全球託管及行政服務的全球主要服務提供者之一 行政管理人的主要業務活動為集體投資計劃的行政管理 行政管理人的職責及職能包括 ( 其中包括 ) 計算資產淨值及每單位資產淨值, 就其根據行政協議承擔的義務而保管所需的有關基金的所有相關記錄, 編製及維持單位信託基金及單位信託基金的賬目及賬戶, 就單位信託基金財務報表的審核與核數師聯絡, 以及就單位信託基金的單位提供若干單位持有人登記及過戶代理服務 行政管理人並無直接或間接涉及單位信託基金的業務事務 組織 保薦業務或管理, 且概不負責備擬本文件 ( 備擬上述說明除外 ), 亦不會就本文件所載的任何資料 ( 與行政管理人有關的披露除外 ) 負責或承擔責任 截至本章程日期, 行政管理人概不知悉任何與其因其獲委任為單位信託基金的行政管理人有關的利益衝突 如有任何利益衝突, 行政管理人將確保該衝突已根據行政協議 適用法律及以合乎單位持有人的最佳利益解決 報告及賬目 單位信託基金的年度結算日期為每年的 4 月 30 日 有關單位信託基金的經審核賬目及報告將於各會計期間結束後 4 個月內編製並刊載於基金經理的網站 未經審核中期報告亦將於每年的半年度會計日期後 2 個月內編製並刊載於基金經理的網站 年度報告將寄發予愛爾蘭證券交易所 最近期年度及半年度賬目的副本亦可在基金經理及投資經理的註冊辦事處索取 稅務 愛爾蘭 以下為就購買 擁有及出售單位時所承擔的若干愛爾蘭稅務後果的摘要 該摘要並無表明為所有可能相關的愛爾蘭稅務考慮的完整描述 該摘要只關於作為單位絕對實益擁有人之人士的情況, 並不適用於若干其他類別的人士 該摘要乃根據於本章程日期生效的愛爾蘭稅法及愛爾蘭稅務局的慣例而編製 ( 並且可作出任何預期或具追溯效力的更改 ) 單位的潛在投資者應就購買 擁有及出售單位所承擔的愛爾蘭或其他稅務後果諮詢其本身的顧問 單位信託基金的稅務 基金經理擬於進行業務時, 使單位信託基金屬於愛爾蘭稅務居民 在單位信託基金屬於愛爾蘭稅務居民的基礎上, 單位信託基金就愛爾蘭稅務目的而言符合 投資計劃 的資格, 因此獲豁免就其收入及收益繳付愛爾蘭稅項 倘單位由非豁免愛爾蘭居民單位持有人持有 ( 及在若干其他情況下 ), 如下文所述, 單位信託基金將有責任向愛爾蘭稅務局繳付愛爾蘭所得稅 居民 及 普通居民 的解釋載於本概述的結尾 非愛爾蘭單位持有人的稅務 若單位持有人就愛爾蘭稅務而言並非愛爾蘭居民 ( 或普通居民 ), 一旦單位信託基金收到申請表格內所作的聲明, 確認單位持有人的非居民身份, 單位信託基金將不會就單位持有人的單位扣除任何愛爾蘭稅項 該聲明可由代表非愛爾蘭居民 ( 或普通居民 ) 的投資者持有單位的中介人提供, 惟中介人須盡其所知, 該等投資者並非愛爾蘭居民 ( 或普通居民 ) 中介人 一詞的解釋載於本概述的結尾 41

131 如單位信託基金未收到該聲明, 單位信託基金將就單位持有人的單位扣除愛爾蘭稅項, 猶如單位持有人為非豁免愛爾蘭居民單位持有人 ( 見下文 ) 若單位信託基金掌握資料可合理顯示單位持有人的聲明不正確, 單位信託基金亦將扣除愛爾蘭稅項 除非單位持有人為一家公司並透過愛爾蘭分行持有單位, 及在若干其他少數情況下, 否則單位持有人通常無權收回該等愛爾蘭稅項 若單位持有人成為愛爾蘭稅務居民, 必須通知單位信託基金 一般而言, 並非愛爾蘭稅務居民的單位持有人將毋須就其單位繳付其他愛爾蘭稅項 然而, 如單位持有人為一家透過愛爾蘭分行或代理人持有其單位的單位信託基金, 該單位持有人或須就該等單位所帶來的盈利及收益繳付愛爾蘭企業所得稅 ( 基於自我評稅 ) 獲豁免愛爾蘭單位持有人的稅務 倘單位持有人就愛爾蘭稅務目的而言為居民 ( 或普通居民 ), 並屬於 愛爾蘭稅務綜合法令 (Taxes Consolidation Act of Ireland)( 稅務綜合法令 ) 第 739D(6) 條所列的任何種類, 一旦單位信託基金收到申請表格所載的聲明, 確認單位持有人的豁免資格, 單位信託基金將不會就單位持有人的單位扣除愛爾蘭稅項 稅務綜合法令第 739D(6) 條所列的種類可概述如下 : 1. ( 稅務綜合法令第 774 條 第 784 條或第 785 條界定的 ) 退休金計劃 2. ( 稅務綜合法令第 706 條界定的 ) 經營人壽保險業務的公司 3. ( 稅務綜合法令第 739B 條界定的 ) 投資企業 4. ( 稅務綜合法令第 739J 條界定的 ) 投資有限合夥 5. ( 稅務綜合法令第 737 條界定的 ) 特殊投資計劃 6. ( 稅務綜合法令第 731(5)(a) 條所適用的 ) 未經認可單位信託計劃 7. ( 稅務綜合法令第 739D(6)(f)(i) 條界定的 ) 慈善機構 8. ( 稅務綜合法令第 734(1) 條界定的 ) 合資格管理公司 9. ( 稅務綜合法令第 734(1) 條界定的 ) 特定公司 10. ( 稅務綜合法令第 739D(6)(h) 條界定的 ) 合資格基金及儲蓄經理 11. ( 稅務綜合法令第 739D(6)(i) 條界定的 ) 個人退休儲蓄賬戶 (PRSA) 行政管理人 12. ( 1997 年儲蓄互助社法 第 2 條界定的 ) 愛爾蘭儲蓄互助社 13. 國家資產管理局 (National Asset Management Agency) 14. 財務部 (Minister for Finance) 為其唯一實益擁有人的國庫管理局或基金投資工具 ( 定義見 2014 年國庫管理局 ( 修訂 ) 法 第 37 章 ), 或透過國庫管理局行事的愛爾蘭 15. ( 稅務綜合法令第 110 條界定的 ) 合資格公司 16. ( 根據法例或愛爾蘭稅務局明確特許 ) 獲准持有單位信託基金的單位而不會導致單位信託基金須扣除或繳付愛爾蘭稅項的居於愛爾蘭的任何其他人士 聲稱具有豁免資格的愛爾蘭居民單位持有人將須自我評稅, 就單位繳付任何應付的愛爾蘭稅項 如單位信託基金未收到單位持有人作出該聲明, 單位信託基金將就單位持有人的單位扣除愛爾蘭稅項, 猶如單位持有人為非豁免愛爾蘭居民單位持有人 ( 見下文 ) 除非單位持有人為一家愛爾蘭企業應課稅網內的公司, 及在若干其他少數情況下, 否則單位持有人通常無權收回該等愛爾蘭稅項 其他愛爾蘭單位持有人的稅務 倘單位持有人就愛爾蘭稅務目的而言為愛爾蘭居民 ( 或普通居民 ) 以及並非 獲豁免 單位持有人 ( 見上文 ), 單位信託基金將扣除分派 贖回及轉讓以及額外的 八週年 事件之愛爾蘭稅項, 詳情如下 42

132 單位信託基金之分派 倘單位信託基金向非豁免愛爾蘭居民單位持有人支付分派, 單位信託基金將從分派中扣除愛爾蘭稅項 扣除的愛爾蘭稅項金額將為 : 1. 分派之 25%, 當中分派乃支付予屬於公司並已就應用 25% 費率作出適當聲明之單位持有人 ; 及 2. 在所有其他情況下, 分派之 41% 單位信託基金將向愛爾蘭稅務局支付此扣除的稅項 一般而言, 單位持有人就分派不會有其他愛爾蘭稅務責任 然而, 倘單位持有人為公司, 而分派為營業收入, 則分派總額 ( 包括已扣除之愛爾蘭稅項 ) 將構成其自我評稅之應課稅收入之一部份, 而單位持有人可以扣除的稅項抵銷其企業稅務責任 單位的贖回及轉讓 倘單位信託基金變現非豁免愛爾蘭居民單位持有人持有的單位, 單位信託基金將從支付予單位持有人之贖回付款中扣除愛爾蘭稅項 同樣地, 如該愛爾蘭居民單位持有人 ( 以出售或其他方式 ) 轉讓單位之權利, 單位信託基金將就有關轉讓繳付愛爾蘭稅項 扣除或繳付的愛爾蘭稅項金額將參考單位持有人從贖回或轉讓之單位中累計之收益 ( 如有 ) 計算, 並將相等於 : 1. 倘單位持有人屬於公司並已就應用 25% 費率作出適當聲明, 則為該收益之 25%; 及 2. 在所有其他情況下, 該收益之 41% 單位信託基金將向愛爾蘭稅務局支付此扣除的稅項 如屬單位的轉讓, 為提供資金支付此愛爾蘭稅務責任, 單位信託基金可使用或註銷單位持有人持有的其他單位 此舉可導致應付額外愛爾蘭稅項 一般而言, 單位持有人就贖回或轉讓不會有其他愛爾蘭稅務責任 然而, 倘單位持有人為公司, 而贖回或轉讓付款為營業收入, 則付款總額 ( 包括已扣除的愛爾蘭稅項 ) 減購買單位之成本將構成其自我評稅之應課稅收入之一部份, 而單位持有人可以扣除的稅項抵銷其企業稅務責任 倘單位並非以歐元計值, 單位持有人可能須就贖回或轉讓單位所產生之任何貨幣收益支付 ( 按自我評稅基準 ) 愛爾蘭資本增值稅 八週年 事件 倘非豁免愛爾蘭居民單位持有人於購買單位後八年內並無出售單位, 則單位持有人就愛爾蘭稅務目的而言將被視為於購買單位之第八週年 ( 以及任何其後的第八週年 ) 已出售單位 在被視為出售時, 單位信託基金將就該等單位於該八年期間的增值 ( 如有 ) 繳付愛爾蘭稅項 繳付之愛爾蘭稅項金額將相等於 : 1. 倘單位持有人屬於公司並已就應用 25% 費率作出適當聲明, 則為該增值之 25%; 及 2. 在所有其他情況下, 該增值之 41% 單位信託基金將向愛爾蘭稅務局支付此稅項 為提供資金支付愛爾蘭稅務責任, 單位信託基金可使用或註銷單位持有人持有的單位 然而, 倘非豁免愛爾蘭居民單位持有人持有相關基金之單位不足 10%( 按價值計 ), 單位信託基金可選擇不就是次當作出售繳付愛爾蘭稅項 單位信託基金要求具有選擇權時, 必須 : 1. 每年向愛爾蘭稅務局確認, 已符合是項 10% 規定, 並向愛爾蘭稅務局提供任何非豁免愛爾蘭居民單位持有人之詳 情 ( 包括其單位價值及其愛爾蘭稅務參考編號 ); 及 2. 通知任何非豁免愛爾蘭居民單位持有人, 單位信託基金將選擇要求是項豁免 倘單位信託基金要求該豁免, 任何非豁免愛爾蘭居民單位持有人必須按自我評稅基準向愛爾蘭稅務局繳付本應由單位信託基金於第八週年 ( 以及任何其後的第八週年 ) 繳付之愛爾蘭稅項 43

133 就單位於八年期間的增值支付的任何愛爾蘭稅項, 可按比例用於抵銷任何日後就該等單位原應支付之愛爾蘭稅項, 而任何多出之金額可於最終出售單位時收回 股份交換 倘單位持有人按公平準則將單位交換為單位信託基金之其他單位或單位信託基金之另一基金之單位而單位持有人並無收取任何付款, 則單位信託基金將不會就交換扣除愛爾蘭稅項 印花稅 愛爾蘭印花稅 ( 或其他愛爾蘭轉讓稅 ) 將不適用於單位之發行 轉讓或贖回 倘單位持有人從單位信託基金收取實物資產分派, 可能須繳付愛爾蘭印花稅 饋贈稅及遺產稅 愛爾蘭資本取得稅 ( 稅率 33%) 可適用於屬於位於愛爾蘭之資產之饋贈或遺產, 或給予饋贈或遺產之人士為居籍 居留地或通常居留地為愛爾蘭之人士或收取饋贈或遺產之人士為居留地或通常居留地為愛爾蘭之人士 單位可視為位於愛爾蘭之資產, 因為單位由愛爾蘭信託基金發行 然而, 凡屬於以下情況, 任何屬於饋贈或遺產之單位將獲豁免愛爾蘭饋贈稅或遺產稅 : 1. 單位於贈予或繼承日期及於 估值日期 ( 就愛爾蘭資本取得稅所定義 ) 包含於饋贈或遺產之中 ; 2. 給予饋贈或遺產之人士於出售單位日期之居籍或通常居留地均並非愛爾蘭 ; 及 3. 收取饋贈或遺產之人士於贈予或繼承日期之居籍或通常居留地均並非愛爾蘭 如單位信託基金因單位持有人或單位的實益擁有人就其單位獲得分派或以任何方式出售 ( 或被視為出售 ) 其單位 ( 應課稅事件 ) 而須於任何司法管轄區繳納稅項, 基金經理將有權從因應課稅事件產生的付款扣減一項相等於適當稅款的金額及 或 ( 如適當 ) 動用 註銷或強制回購單位持有人或該實益擁有人的若干數目的單位, 以應付有關稅款 如無作出有關扣減 動用 註銷或強制回購的情況下, 相關單位持有人應就發生應課稅事件而導致單位信託基金須在任何司法管轄區繳付稅項, 對單位信託基金因而產生的損失向單位信託基金作出彌償保證或使單位信託基金獲得彌償保證 經合組織共同匯報標準 經濟合作及發展組織制定的自動交換資料制度 ( 一般稱為 共同匯報標準 ) 於愛爾蘭適用 根據此制度, 單位信託基金須向愛爾蘭稅務局申報有關所有單位持有人的資料, 包括單位持有人的身份 居住地及稅務識別編號, 以及單位持有人就單位收取的收入及出售或贖回所得款項金額的詳情 此項資料可隨後由愛爾蘭稅務局與實施經合組織共同匯報標準的其他歐盟成員國及其他司法管轄區的稅務機關共用 經合組織共同匯報標準取代指令 2003/48/EC 下先前有關儲蓄收入的歐洲資料匯報制度 ( 一般稱為歐盟儲蓄指令制度 ) 詞語含義 對公司而言, 居民 的含義 其中央管理及控制位於愛爾蘭的公司, 不論其註冊成立的所在地, 均為愛爾蘭的稅務居民 在愛爾蘭並無擁有其中央管理及控制但於 2015 年 1 月 1 日當天或之後在愛爾蘭註冊成立的公司為愛爾蘭的稅務居民, 除非該公司根據愛爾蘭與另一國家之間訂立的雙重課稅條約不被視為愛爾蘭居民 任何公司若非在愛爾蘭中央管理及控制, 但於 2015 年 1 月 1 日之前在愛爾蘭註冊成立, 則該公司被視為愛爾蘭居民, 惟下列情況除外 : 1. 該公司 ( 或關連公司 ) 在愛爾蘭從事貿易, 而該公司由居住在歐盟成員國或愛爾蘭與其擁有雙重課稅條約的國家的人士最終控制, 或該公司 ( 或關連公司 ) 為在歐盟或課稅條約國家的認可證券交易所報價的公司 ; 或 2. 根據愛爾蘭與另一國家簽訂的雙重課稅條約, 該公司被當作並非愛爾蘭居民 最後, 倘符合以下條件, 於 2015 年 1 月 1 日之前在愛爾蘭註冊成立的公司亦被視為愛爾蘭居民 :(i) 該公司在與愛爾蘭訂立有效雙重課稅協議的管轄區 ( 相關管轄區 ) 受管理和控制, 且此類管理和控制若在愛爾蘭實施, 則足以使該公司成 44

134 為愛爾蘭稅務居民 ; 及 (ii) 倘該公司在相關管轄區註冊成立, 則應依法成為該管轄區的稅務居民 ; 及 (iii) 該公司不會因為任何管轄區之法律實施而被視為該管轄區的稅務居民 對個人而言, 居民 的含義 倘個人進行下列事項, 則該個人將於一個曆年被當作愛爾蘭稅務居民 : 1. 在該曆年中, 在愛爾蘭逗留 183 天或更長時間 ; 或 2. 在愛爾蘭度過的總日數超過 280 天, 包括該曆年中在愛爾蘭逗留的日數以及上一年在愛爾蘭逗留的日數 個人在一個曆年中在愛爾蘭逗留的日數如果少於 30 天, 將不計入上述的 兩年 檢查中 如果該個人於該日任何時候身處愛爾蘭, 將被視為於愛爾蘭逗留一天 對個人而言, 普通居民 的含義 普通居民 一詞 ( 有別於 居民 ) 涉及個人的日常生活方式並指某程度上連續居住在同一個地方 連續三個稅務年度居住在愛爾蘭的個人為普通居民, 自第四個稅務年度起生效 普通定居在愛爾蘭的個人於該個人並未居住在愛爾蘭的第三個連續稅務年度結束時不再為普通居民 舉例來說, 於 2017 年居住及普通定居在愛爾蘭但於該年離開愛爾蘭的個人在直至 2020 年稅務年度結束為止將仍為愛爾蘭普通居民 外國稅項 單位信託基金可能須在愛爾蘭以外的國家就其所賺取的收入及自其投資產生的資本收益繳納稅項 ( 包括預扣稅 ) 單位信託基金未必能夠藉著愛爾蘭與其他國家之間的雙重徵稅條約受惠於該外國稅項的稅率調減 因此, 單位信託基金可能無法在特定國家收回其繳付的任何外國預扣稅 若此情況有變及單位信託基金獲償還外國稅項, 則單位信託基金的資產淨值將不會重列, 而有關利益將於償還稅項時按比例分配給當時的現有單位持有人 英國 除非另有指明, 否則以下分析乃基於單位信託基金就英國稅務而言被視作財務不透明 保管人 基金經理及投資經理在進行單位信託基金的事務時, 擬在其認為合理可行的情況下盡量減少單位信託基金的任何英國稅務責任, 其中包括在管理及進行單位信託基金的事務時, 有意使單位信託基金就稅務而言不會成為英國居民 因此, 在單位信託基金並無於英國境內行使交易或通過常設機構在英國進行交易的前提下, 單位信託基金不應繳納英國稅項 ( 若干英國來源收入之英國稅項除外 ) 預期單位信託基金的業務就英國稅務而言不會被視為交易活動 然而, 倘於英國進行交易活動, 則該等活動可能原則上須繳納英國稅項 該等交易活動產生的利潤在單位信託基金及投資經理符合若干條件的前提下, 根據 2003 年英國金融法案, 不會為英國稅項課稅 基金經理及投資經理有意就單位信託基金進行事務, 以在該等條件在彼等各自的控制範圍內達成所有該等條件 居於英國的單位持有人應注意, 自單位信託基金的基金作出的所有分派, 根據 2005 年 ITTOIA 法令 第 830(2) 條須為英國所得稅課稅或根據 Schedule D Case V 須為企業稅課稅, 而不論該等分派是否自動或以其他方式再投資於相關基金的其他單位 由 2009 年 4 月 22 日起, 倘以附息 ( 或經濟上類似的 ) 方式持有其超過 60% 資產的基金作出任何分派, 則所得分派將就稅務而言被視作由居於英國的個人單位持有人作為年度利息付款擁有 這表示將按照不時適用於利息支付的稅率就該等分派支付英國稅項 然而, 自基金作出的任何其他分派將就稅務而言被視作由居於英國的個人單位持有人作為分派擁有, 而該單位持有人將須就該等分派於 2013/14 年度按稅率 10% 32.5% 或 37.5% 徵稅, 適用稅率視乎單位持有人屬較低 較高或附加稅率納稅人而定 由分派基金資格更改為申報基金資格 於 2009 年 12 月 1 日, 新的英國法例生效, 據此, 分派基金制度將在一段時間內由申報基金制度取代 在兩個制度下, 每一類別均被當作獨立的離岸基金 於過往會計期間曾經或將會尋求分派基金資格的類別, 已於 2010 年 5 月 1 開始的會計期間起獲納入英國申報基金制度 獲納入英國申報基金制度的類別的詳情可向基金經理索取 儘管有意採取一切可行的措施以確保該等類別日後保持申報基金的資格, 惟不能保證會得以實現 居於或通常居於英國的單位持有人在符合資格作為申報基金 ( 或先前為分派基金 ) 的類別持有單位, 就稅務而言的相關性是, 除非持有單位作為交易股票 ( 當不同的規則適用時 ), 否則須就出售 贖回或以其他方式出售單位所得的任何收益, 繳付英國的資本收益 ( 而非收入 ) 稅項 ( 惟可能因出售所得款項的均等化元素而須就收入繳付所得稅或企業稅則除外 ) 如果相關類別在進行出售的英國居民或普通居民單位持有人的整個持有期間成功申請成為申報基金或獲認證為分派基金, 則以上處理方法只會在出售後方會適用 因此, 出售一個在整個持有期間既不符合資格成為申報基金, 亦未獲認證為分派 45

135 基金的類別中的投資所產生並計入居於或通常居於英國的單位持有人的任何收益, 就稅務目的而言, 如屬個人投資者, 可能因收益被視為離岸收入收益而不享有年度豁免利益而須繳付所得稅或企業稅 亦應注意, 申報基金必須按照可接納的會計政策編製賬目, 並提供其 須申報收入 的詳細資料, 即按照 2009 年離岸基金 ( 稅務 ) 規例 (Offshore Funds (Tax) Regulations 2009)( 該規例 ) 所載的若干規則調整的基金總回報的賬目數字 申報基金必須向英國稅務海關總署返還其須申報收入, 並按照該規例規定的方式之一, 向英國投資者提供彼等於過往未曾於各會計期間結束後的 6 個月內向其分派的任何須申報收入所佔的比例部份詳情 申報基金的英國投資者將有責任在其報稅表披露在申報任何相關收入金額的期間適用的申報收入 ( 如有 ) 其他條文 獲豁免就資本收益及投資 ( 例如獲豁免認可退休金計劃 ) 所得收入繳付英國稅項的單位持有人將就出售其單位所得的任何收入及任何收益享有英國稅項豁免 在英國居籍或就英國稅務而言被視為在英國居籍的任何個人單位持有人, 在死亡或進行若干類別的終身轉讓時, 可能須就其單位繳納英國繼承稅 就稅務而言通常居於英國的個人應注意 2007 年所得稅法 第 13 部份第 2 章的條文 該等條文旨在防止通常居於英國的個人透過交易將資產或收入轉移到在英國境外居住或居籍的人士 ( 包括公司 ), 從而逃避繳交所得稅 該等條文可能使其須就尚未徵稅的單位信託基金的未分派收入及利潤每年繳交所得稅 居於或通常居於英國的人士 ( 及如屬個人, 在英國居籍 ) 應注意, 如任何有關人士連同與其有關連的人士於單位信託基金持有 10% 或以上的單位, 而同一時間, 該單位信託基金的控制方式使其成為一間在居於英國的情況下就英國稅務而言屬於 封閉公司 的公司 ( 就應課稅收益而言, 單位信託基金被視為公司 ), 則 1992 年應課稅收益徵稅法令 (Taxation of Chargeable Gains Act, 1992) 第 13 條的條文可能對該等人士而言相當重要 如應用該等條文, 則就英國應課稅收益之稅務而言, 可能使該人士之課稅情況, 猶如計入單位信託基金的任何收益 ( 例如就該等目的而言於出售其投資時構成應課稅收益的任何收益 ) 的部份乃直接計入該人士般, 而該部份相等於應課稅收益計入單位信託基金之時, 該人士於單位信託基金清盤時有權獲得的單位信託基金之資產比例 根據英國企業債務制度, 倘單位信託基金的特定子基金的投資超過 60%( 按價值計 ) 為 合資格投資, 則在英國企業稅的課稅範圍內的任何企業單位持有人均可能就其按市值計算 ( 而非出售時 ) 的持有價值的增加繳稅, 或可就任何等價的減值獲得稅款減免 合資格投資大致為以利息形式直接或間接產生收益的投資 作為根據愛爾蘭法律組成的單位信託基金, 單位信託基金就英國稅務而言或可被視為財務透明 如屬此情況, 單位信託基金內的單位類別之稅務處理將與上文所述有所不同 主要的影響將會是, 居於或通常居於英國的單位持有人將須就其於單位信託基金的相關類別按比例分佔的收入繳交所得稅或企業稅 ( 須扣除適當產生並由基金經理以該收入支付的開支 ), 而不論收入乃由類別分派或代表單位持有人累計 然而, 應注意,HMRC 已表明其一般意見, 認為愛爾蘭單位信託基金就英國稅務而言應被視為財務不透明 其他 一般而言, 根據經 美國財政部規例 修訂的 1986 年美國國內收入法 第 1471 至 1474 條 國稅局的指引 跨政府協議及實施中的非美國法律及法規, 並遵守任何進一步指引 ( 統稱 FATCA ), 倘非美國基金進行的投資將產生美國來源收入, 則若干美國來源利息 股息, 以及向該非美國基金支付有關該投資的若干其他付款 ( 包括在若干情況下, 於出售或以其他方式出售該投資時變現的所得款項總額 ) 將須繳納 30% 的預扣稅, 除非在一般情況下, 該非美國基金 (i) 與美國財政部部長訂立有效協議, 規定非美國基金須向其投資者獲取並核實若干資料, 並遵守有關若干直接及間接美國投資者的年度申報告要求及其他要求, 或 (ii) 符合適用的跨政府協議的要求 ( 或以其他方式符合資格獲豁免上述規定 ) 就此而言, 愛爾蘭與美國已就 FATCA 的實施訂立跨政府協議 ( 跨政府協議 ), 據此, 單位信託基金及每一基金或須向其投資者取得並向愛爾蘭政府提供若干資料並符合若干其他要求 愛爾蘭亦已頒份法規, 將跨政府協議的條款引入愛爾蘭法律 倘單位信託基金及每一基金遵守其在跨政府協議下的義務, 及倘愛爾蘭遵守其在跨政府協議下的義務, 則單位信託基金及每一基金一般毋須根據 FATCA 繳納預扣稅, 惟倘其 聯屬集團 或 相關實體 的成員未能遵守 FATCA, 則單位信託基金或基金可能須繳納預扣稅 根據 FATCA 作出的預扣可能減少單位持有人的回報 單位信託基金向愛爾蘭稅務局報告的任何資料均會根據跨政府協議傳送予美國國稅局 愛爾蘭稅務局有可能根據任何適用的雙重徵稅條約的條款 跨政府協議或資料交換機制, 將該資料傳送予其他稅務機關 倘任何單位持有人未能向基金提供基金為履行其根據 FATCA 的義務而要求的任何資料 文件或證明, 可能須就上述向該單位持有人作出的付款繳納 30% 的預扣稅, 並可能須就該單位持有人未能提供資料而產生的其他稅項及成本彌償基金及單位信託基金 單位信託基金及每一基金可於必要時或在適當情況下, 向稅務機關及其他方披露單位持有人提供的資料, 以遵守 FATCA 或據其減低預扣稅 單位持有人如未能提供適用資料 文件或證明, 可能承受額外的不利後果, 並可能須自其投資的每一基金進行強制贖回 46

136 FATCA 的規定複雜, 在若干方面仍未清晰, 並可能會因任何日後指引而有重大變動 務請單位持有人就向單位信託基金 每一基金及單位持有人施加的規定, 以及任何規定對單位持有人的可能影響諮詢其顧問 單位持有人會議 信託契據載有一般單位持有人會議及各特定類別單位持有人會議的詳細條文 會議可由保管人 基金經理或已發行單位或特定類別已發行單位價值最少 10% 的單位持有人透過發出不少於 21 日通知召開 大會通告將寄交單位持有人或特定類別的單位持有人 單位持有人可委任受委代表, 受委代表毋須為單位持有人 會議法定人數將為持有或代表不少於當時已發行單位或相關類別單位 10%( 或需要通過特別決議案時則為 25%) 的親身出席或透過受委代表出席的單位持有人, 續會的法定人數, 則為親身出席或透過受委代表出席的單位持有人, 而人數或所持單位數目不限 舉手表決時,( 如屬個人 ) 親身出席或透過受委代表出席的每名單位持有人或 ( 如屬公司 ) 由代表或擔任其受委代表的高級職員出席的每名單位持有人可各投一票 於按單位數目投票表決時, 親身出席或透過代表或受委代表出席的每名單位持有人可就其登記為持有人的每個單位各投一票 只要單位信託基金仍於香港獲證券及期貨事務監察委員會認可期間, 單位持有人會議上將按單位數目進行投票表決 有關投票權可按信託契據任何其他條文以相同方式修訂 特別決議案為在獲法定人數出席的單位持有人會議上提出並以總投票票數 75% 的多數票獲得通過的決議案 信託契據規定, 如保管人認為某決議案僅影響一個單位類別, 則決議案於該類別單位持有人的獨立會議通過, 將為正式通過 ; 倘保管人認為有關決議案影響一個以上的單位類別, 但不會引致各類別的單位持有人之間產生利益衝突, 如該項決議案於有關類別的單位持有人的單一會議通過, 將為正式通過 ; 倘保管人認為有關決議案影響一個以上的單位類別, 並引致或可能引致各類別的單位持有人之間產生利益衝突, 則該項決議案須分別於有關類別的單位持有人的會議通過 ( 而非於有關類別的單位持有人的單一會議通過 ), 方為正式通過 單位信託基金的存續期 單位信託基金將無限期延續, 直至於下列情況根據信託契據終止為止 :(a) 倘單位信託基金的資產淨值於任何時間少於 2,500 萬美元或其等額, 基金經理可予以終止 ; 或 (b) 如單位信託基金不再為認可 UCITS 或依據 香港證券及期貨條例 不再獲認可或不獲正式核准 ; 或 (c) 倘通過任何法律, 致使繼續經營單位信託基金屬非法, 或基金經理認為繼續經營單位信託基金不切實可行或不適當 ; 或 d) 於單位持有人會議以特別決議案通過時隨時予以終止 在下列情況下, 單位信託基金亦可能會被保管人終止.. (a) 如基金經理被清盤 ( 惟不包括按保管人在較早前以書面批准的條款, 為重組或合併而進行的自願性清盤 ) 或如已委任財產接收人接收其任何資產 ; 或 (b) 如保管人認為基金經理沒有能力以令人滿意的方式履行或實際上未能履行其職責, 或作出任何保管人認為會令單位信託基金的聲譽受損或有損單位持有人的利益的其他舉動 ; 或 (c) 如單位信託基金 (i) 不再為認可 UCITS 或 (ii) 依據 香港證券及期貨條例 不再獲認可或不獲正式核准, 或倘通過任何法律, 致使繼續經營單位信託基金屬非法, 或保管人認為繼續經營單位信託基金不切實可行或不適當 ; 或 (d) 如保管人以書面方式向基金經理表達其有意退任的日期後六個月內, 基金經理未能委任新保管人 倘任何特定基金於首次發行該基金的單位後滿 1 週年之日或其後任何日子的資產淨值少於 2 百萬美元或其等額, 基金經理有權於當日終止有關基金 信託契據規定, 單位信託基金或任何基金被終止後, 保管人須 : (a) (b) 出售為單位信託基金或相關基金持有的全部投資 ; 及 按相關類別的單位持有人各自的權益比例, 向彼等分派贖回每一基金資產所產生的一切現金款項淨額或提交保管人可能規定的要求表格 倘當時手頭現金不足以按每個單位派發 1 美元等額, 保管人則無責任 ( 最後分派的情況除外 ) 分派任何款項 保管人有權保留手頭任何款項, 作為單位信託基金或相關基金財產一部份, 以就一切成本 費用 開支 索償及付款要求作出全數撥備 在基金終止後, 任何未領取的所得款項或不可向投資者分派 ( 例如當投資者尚未提供識別及核實客戶身份所需的文件, 或當無法追蹤投資者時 ) 的款項將存於傘子現金賬戶 有關傘子現金賬戶及相關風險的描述, 請閣下注意章程中標題為 反洗黑錢及反資助恐怖活動措施 - 傘子現金賬戶 一節 一般資料 任何實物分派資產, 均不會對其餘單位持有人的利益造成重大損害 47

137 任何投資者如欲就單位信託基金或其營運的任何方面作出投訴, 可直接向基金經理或投資經理作出投訴, 地址載於本文件末 查詢 下 委託投票政策及程序 基金經理將根據投資經理的程序就基金所持有的證券進行委託投票 投資經理已制定委託投票政策, 乃由投資經理的投票委託委員會監督 該政策旨在確保投票乃按照投資經理的客戶 ( 如基金 ) 的最佳經濟利益進行 投資經理使用獨立第三方服務提供者的服務, 該提供者提供委託分析 需要進行投票的事件及投票建議之資料, 以及執行投資經理的投票決定 投資經理通常根據獨立第三方服務提供者的委託投票建議進行委託投票 投資經理會就所有提案進行委託投票, 惟在投票委託委員會的指引下 ( 如需要 ), 投資經理確定委託投票的成本大於投資經理的客戶的經濟利益時, 則屬例外 投資經理的詳細委託投票政策可向投資經理索取 最佳執行 基金經理依賴投資經理的最佳執行政策 最佳執行是一個用以描述旨在採取一切足夠措施以為投資經理就單位信託基金的 財產進行的各項交易取得最佳可能的結果之詞彙 為了取得最佳可能的結果, 投資經理需要考慮多項因素, 包括價格 交 易的顯性和隱性成本 交易規模及執行速度, 以及任何其他與該交易有關的具體考慮因素 投資經理的詳細最佳執行政策可向投資經理索取 誘因 在提供投資組合管理服務的過程中, 投資經理禁止接受及保留由任何第三方或代表第三方行事的人士支付或提供的任何費用 佣金或金錢利益, 或接受任何非金錢利益 ( 可接納的少量非金錢利益及許可的研究除外 ) 投資經理認為 : (a) 有關金融工具或投資服務, 屬普通性質或為反映個別客戶的情況而特設的資料或文件 ; (b) 由公司發行人或潛在發行人委託並支付的第三方為宣傳該發行人的新發行而提供的書面材料, 或倘第三方公司由發行人以合約委聘並支付以持續編製有關材料, 惟該材料須清楚披露該關係並同一時間向有意獲得材料的任何公司或向一般公眾提供 ; (c) 參與有關特定金融工具或投資服務的利益及特性的會議 研討會及其他培訓活動 ; (d) 具合理最低價值的款待, 包括本條文所指明的商業會議或會議 研討會及其他培訓活動的食物及飲料 ; (e) 有關發行人發行股份 債權證 認股權證或代表若干證券的證明書的研究, 而有關研究 : - 於完成發行前由就該次發行向發行人提供包銷或配售服務的人士編製 ; 及 - 向該次發行的有意投資者提供 ; 及 (f) 於試用期間接獲, 讓投資經理可根據 FCA 規則評估研究提供者的研究服務的研究 被視為可接納的少量非金錢利益, 因該等利益可提高投資經理向單位持有人提供服務的質素 ; 其規模及性質不能被評為損害投資經理遵守其誠實 公平及專業地為單位持有人的最佳利益行事的義務 ; 以及合理 合比例及其規模不大可能會以任何方式影響投資經理行為並因而損害單位持有人利益 倘投資經理收取任何該等費用 佣金或金錢利益, 其將為單位信託基金的利益轉讓該等費用 佣金或金錢利益, 並將於標準報告中通知基金經理 備查文件 以下文件副本可向基金經理免費索取, 或於營業日的一般營業時間於基金經理的註冊辦事處及投資經理的辦事處查閱, 地址載於本基金章程 各方名錄 一節 : (a) 信託契據 ; (b) 章程 ; (c) 主要投資者資料文件 ; 及 (d) 基金經理最近期編製及刊發與單位信託基金有關的年度及半年度報告 ; 上列第 (a) (b) (c) 及 (d) 項亦可於基金已註冊作公眾推銷的司法管轄區向付款代理人索取 48

138 有關單位信託基金的最近期編製年度報告, 有意投資者亦可向基金經理的辦事處或付款代理人索取 49

139 附錄 I- 投資限制 投資只可投資於信託契據及規例許可的項目, 並須遵守信託契據及規例所載任何限制及限額 下文載列單位信託基金及每項基金適用的規例所載有關投資限制的條文, 該條文附加於基金經理所訂其他限制 基金經理可不時制定配合或符合單位持有人利益的進一步投資限制, 以遵從每一基金單位所在國家的法例及規例 任何進一步限制均須符合 UCITS 規例及中央銀行的規定 1 許可投資 UCITS 的投資限於 : 1.1 獲接納可在成員國或非成員國證券交易所正式上市或在成員國或非成員國受規管 定期營運 獲認可及向公眾公開的市場買賣的可轉讓證券及貨幣市場工具 1.2 於一年內獲接納可在證券交易所或其他市場 ( 如上文所述 ) 正式上市的近期發行可轉讓證券 1.3 貨幣市場工具, 惟於受規管市場買賣者除外 1.4 UCITS 的股份 1.5 另類投資基金的股份 1.6 信貸機構的存款 1.7 金融衍生工具 2 投資限制 2.1 UCITS 可將淨資產不多於 10% 投資於第 1 段所述以外的可轉讓證券及貨幣市場工具 2.2 UCITS 可將淨資產不多於 10% 投資於將在一年內獲接納在證券交易所或其他市場 ( 如第 1.1 段所述 ) 正式上市的近期發行可轉讓證券 此項限制將不適用於 UCITS 在若干稱為第 144A 條證券的美國證券之投資, 條件為 : 證券乃承諾於發行後一年內在美國證券及期貨管理委員會 (US Securities and Exchanges Commission) 登記而發行 ; 及 證券並非低流通性證券, 即 UCITS 可於 7 日內按 UCITS 所評估價格或相若價格變現的證券 2.3 UCITS 可將淨資產不多於 10% 投資於同一機構所發行的可轉讓證券及貨幣市場工具, 惟其在當中投資超過 5% 的發行機構所持有的可轉讓證券及貨幣市場工具之總值不得超過 40% 2.4 如債券由註冊辦事處位於成員國的信貸機構發行, 而該信貸機構須遵守專為保障債券持有人而設的特定公眾監督法例, 則第 2.3 段所述的 10% 限額可提高至 25% 倘若 UCITS 將其淨資產不多於 5% 投資於單一發行人所發行的債券, 此等投資總值不得多於 UCITS 資產淨值的 80% ( 本條文必須事先徵得中央銀行批准方可生效 ) 2.5 倘可轉讓證券或貨幣市場工具由成員國或其地方機構或由有一個或多個成員國為成員的非成員國或公眾國際機構發行或擔保, 則第 2.3 段所述 10% 限額可提高至 35% 2.6 就應用第 2.3 段所述 40% 限額而言, 第 2.4 及 2.5 段所指可轉讓證券及貨幣市場工具不被計算在內 2.7 記入賬戶及作輔助流動資金持有的現金不得超過 : (a) UCITS 淨資產的 10%; 或 (b) 倘現金記入於保管人開立的賬戶, 則 UCITS 淨資產的 20% 2.8 UCITS 所面對場外衍生工具對手方風險不得多於淨資產 5% 如屬歐洲經濟區認可信貸機構 1988 年 7 月巴塞爾資本協定簽署國 ( 歐洲經濟區成員國除外 ) 認可信貸機構或澤西島 根西島 馬恩島 澳洲或新西蘭認可信貸機構, 此限額將提高至 10% 2.9 不論上文第 及 2.8 段所載, 同一機構所發行 作出或承擔兩項或以上下列項目合共不得多於淨資產 20%: 於可轉讓證券或貨幣市場工具的投資 ; 50

140 存款 ; 及 或 場外衍生交易所產生的風險 2.10 上文第 及 2.9 段所指限額不得合併計算, 故對單一機構的投資不得多於淨資產的 35% 2.11 就第 及 2.9 段而言, 同一集團旗下公司視作同一發行人 然而, 淨資產 20% 的限額可應用於在同一集團內的可轉讓證券及貨幣市場工具的投資 2.12 UCITS 可將淨資產最多達 100% 投資於由任何成員國 其地方機構 有一個或多個成員國為成員的非成員國或公眾國際機構發行或擔保的不同可轉讓證券及貨幣市場工具 2.13 存款 個別發行人須名列本章程及由下列名單抽取 : 經合組織成員國政府 ( 惟有關證券須屬投資級別 ) 中華人民共和國政府 巴西政府 ( 惟證券須屬投資級別 ) 印度政府 ( 惟證券須屬投資級別 ) 新加坡政府 歐洲投資銀行 歐洲復興開發銀行 國際金融公司 國際貨幣基金組織 歐洲原子能共同體 亞洲開發銀行 歐洲中央銀行 歐洲理事會 Eurofima 非洲開發銀行 國際復興開發銀行 ( 世界銀行 ) 美洲開發銀行 歐洲聯盟 聯邦國民抵押協會 ( 房利美 ) 美國聯邦住宅貸款抵押公司 (Freddie Mac) 政府全國抵押協會 (Ginnie Mae) 學生貸款推廣協會 (Sallie Mae) 聯邦住宅貸款銀行 聯邦農業信貸銀行 田納西河谷管理局 Straight-A Funding LLC UCITS 必須持有最少 6 個不同發行人所發行的證券, 任何單一發行人所發行證券不得多於淨資產 30% 在任何單一信貸機構 ( 中央銀行的可轉讓證券集體投資計劃規例的規例 7 所載明的信貸機構除外 ) 中, 以附屬流動資產形式作出的存款不得超出.. (a) UCITS 的資產淨值的 10%; 或 (b) 如存款乃存於保管人,UCITS 的淨資產之 20% 2.14 近期已發行的可轉讓證券 (i) (ii) 在第 (ii) 段的規限下, 基金不得投資任何多於其資產的 10% 於 UCITS 規例的規例 68(1)(d) 所適用的類別證券 第 (i) 段並不適用於由負責人對美國證券所作出的投資, 即 規則 144 A 證券, 前提是.. (a) (b) 已發行相關證券, 並承諾在發行後 1 年內將該等證券在美國證券交易委員會登記 ; 及該等證券並非低流通性證券, 即該等證券可在 7 日內由 UCITS 按 UCITS 對該等證券作出估價的價格或大約價格變現 3 集體投資計劃 ( 集體投資計劃 ) 的投資 3.1 UCITS 不得將淨資產多於 20% 投資於任何單一集體投資計劃 然而, 基金經理已決定不可將基金淨資產多於 10% 投資於集體投資計劃 3.2 於另類投資基金的投資合共不得多於淨資產 30% 3.3 集體投資計劃不得將淨資產多於 10% 投資於另一開放式集體投資計劃 3.4 倘若 UCITS 投資於其他集體投資計劃的單位, 而該集體投資計劃由 UCITS 管理公司或與 UCITS 管理公司有關連的任何其他公司 ( 因受共同管理或控制或直接或間接持有大量股份而有關連 ) 直接管理或獲指派管理, 則該管理公司或其他公司不得就 UCITS 投資於該其他集體投資計劃的單位而收取認購 轉換或贖回費用 3.5 倘若 UCITS 基金經理或投資經理就另一集體投資計劃單位的投資收取佣金 ( 包括回佣 ), 此筆佣金必須撥歸 UCITS 所有 4 指數追蹤 UCITS 4.1 倘若 UCITS 的投資政策為復現某項指數 ( 該指數須符合中央銀行的可轉讓證券集體投資計劃規例所載準則並且獲 中央銀行認可 ), 則 UCITS 可將淨資產最多 20% 投資於同一機構所發行的股份及 或債務證券 4.2 倘若在特殊市況下有充份理由, 第 4.1 段所指限額可提高至 35%, 並可應用於單一發行人 51

141 5 一般規定 5.1 投資公司或管理公司就其管理的所有集體投資計劃行事時, 不得購入任何附帶投票權的股份, 致使其可對發行機構的管理行使重大影響力 5.2 UCITS 不得購入超過 : (i) 任何單一發行機構 10% 的無投票權股份 ; (ii) 任何單一發行機構 10% 的債務證券 ; (iii) 任何單一集體投資計劃 25% 的單位 ; (iv) 任何單一發行機構 10% 的貨幣市場工具 注意 : 倘若購入時無法計算債務證券或貨幣市場工具總額或已發行證券淨額, 則當時毋須理會上文 (ii) (iii) 及 (iv) 項所訂的限額 5.3 第 5.1 及 5.2 段不適用於 : (i) 成員國或其地方機構發行或擔保的可轉讓證券及貨幣市場工具 ; (ii) 非成員國發行或擔保的可轉讓證券及貨幣市場工具 ; (iii) 由有一個或多個成員國為成員的公眾國際機構發行的可轉讓證券及貨幣市場工具 ; (iv) UCITS 所持有於非成員國註冊成立公司股本的單位, 該公司的資產主要投資於註冊辦事處設於該國的發行機構所發行證券, 而根據該國法例, 持有該公司股份乃 UCITS 投資該國發行機構證券的唯一途徑 該非成員國公司的投資政策必須符合第 2.3 至 及 5.6 各段所訂限額, 是項豁免方適用 倘若超出此等限制, 則須遵守下文第 5.5 及 5.6 段的規定 ; (v) 由一間或多間投資公司應單位持有人代表彼等本身提出回購單位的要求而持有在某些附屬公司股本的單位, 有關附屬公司僅於所在國家經營管理 顧問或市場推廣業務 5.4 當 UCITS 行使屬其資產一部份的可轉讓證券或貨幣市場工具所附認購權時, 毋須遵守本文所訂投資限制 5.5 中央銀行可容許近期獲認可的 UCITS 於認可日期起計六個月內豁免第 2.3 至 及 4.2 段各條文的約束, 惟須遵守分散風險原則 5.6 倘由於 UCITS 無法控制的理由或因行使認購權而超出本文所訂限額,UCITS 須在充分考慮其單位持有人利益後對有關情況作出補救, 並以此作為其銷售交易的首要目的 5.7 代表單位信託基金行事的投資公司 管理公司或保管人或共同契約基金的管理公司, 概不得以無擔保方式出售 : 可轉讓證券 ; 貨幣市場工具 1 ; 集體投資計劃的單位 ; 或 金融衍生工具 5.8 UCITS 可持有輔助流動資產 6 金融衍生工具 6.1 UCITS 於全球有關金融衍生工具的投資 ( 按 UCITS 規例所規定 ) 不得超過其資產淨值總額 6.2 金融衍生工具 ( 包括可轉讓證券或貨幣市場工具內附金融衍生工具 ) 相關資產所涉及的持倉, 連同直接投資所產生的持倉 ( 如適用 ), 不得超過 UCITS 規例所載的投資限額 ( 此條文不適用於指數相關金融衍生工具, 惟有關指數須符合中央銀行的可轉讓證券集體投資計劃規例所載準則 ) 6.3 UCITS 可投資於場外交易市場買賣的金融衍生工具, 惟場外交易的對手方須為受到嚴密監管且屬中央銀行認可類別的機構 6.4 投資於金融衍生工具須遵守中央銀行所訂條件及限制 1 禁止 UCITS 賣空任何貨幣市場工具 52

142 附錄 II- 合資格證券及衍生工具市場 除未上市證券的許可投資外, 單位信託基金將僅投資於在符合規管準則 ( 受規管 定期營運 獲認可及開放予公眾投資 ) 的證券交易所或市場買賣的證券並於以下市場上市的證券 就單位信託基金而言, 市場應為.. 與構成可轉讓證券或交易所買賣衍生工具的任何投資有關.. (i) 屬以下任何證券交易所或市場.. - 位於歐洲經濟區的任何成員國 ; 或 - 位於任何下列國家.. 澳洲加拿大日本新西蘭瑞士美國 ; 或 (ii) 下列名單載列的任何證券交易所或市場.. 阿根廷阿根廷巴林孟加拉孟加拉巴西巴西巴西智利智利中國中國哥倫比亞埃及迦納香港冰島印度印度印尼約旦肯亞大韓民國馬來西亞毛里裘斯墨西哥摩洛哥尼日利亞阿曼巴基斯坦巴基斯坦巴基斯坦祕魯菲律賓俄羅斯塞爾維亞新加坡南非 Bolsa de Comercio de Buenos Aires Mercado Abierto Electronico S.A. Bahrain Bourse 達卡證券交易所有限公司 (Dhaka Stock Exchange Ltd) Chittagong Stock Exchange Sociedade Operadora Do Mercado De Ativos S.A. BM & F Bovespa SA Central de Custodia e de Liquidacao Financiera de Titulos 智利電子交易所 (La Bolsa Electronica De Chile) Bolsa de Comercio de Santiago 上海證券交易所深圳證券交易所 Bolsa De Valores De Colombia The Egyptian Exchange 迦納證券交易所 (Ghana Stock Exchange) 香港聯合交易所有限公司 NASDAQ OMX Iceland 孟買證券交易所有限公司 (Bombay/Mumbai Stock Exchange) 國家證券交易所 (National Stock Exchange) 印尼證券交易所 (Indonesia Stock Exchange) 安曼證券交易所 (Amman Stock Exchange) Nairobi Securities Exchange 韓國證券交易所 (Korea Stock Exchange) Bursa Malaysia Berhad 毛里裘斯證券交易所 (Stock Exchange of Mauritius Ltd, The) 墨西哥證券交易所 (Bolsa Mexicana De Valores (Mexican Stock Exchange)) 卡薩布蘭卡證券交易所 (Casablanca Stock Exchange) 尼日利亞證券交易所 (Nigerian Stock Exchange, The) 馬斯喀特證券市場 (Muscat Securities Market) Karachi Stock Exchange Lahore Stock Exchange Islamabad Stock Exchange Bolsa De Valores De Lima 菲律賓證券交易所 (Philippine Stock Exchange, Inc) 莫斯科交易所 (Moscow Exchange) 貝爾格萊德證券交易所 (Belgrade Stock Exchange) 新加坡交易所 (Singapore Exchange) 約翰尼斯堡證券交易所 (JSE Securities Exchange) 53

143 斯里蘭卡台灣泰國土耳其烏拉圭委內瑞拉越南越南贊比亞 科倫坡證券交易所 (Colombo Stock Exchange) 臺灣證券交易所泰國證券交易所 (Stock Exchange of Thailand) 伊斯坦堡證券交易所 (Istanbul Stock Exchange) Bolsa De Valores De Montevideo Bolsa De Valores De Caracas 河內證券交易中心 (HanoiSecurities Trading Centre) 胡志明證券交易所 (Ho Chi Minh Stock Exchange) 盧薩卡證券交易所 (Lusaka Stock Exchange) (iii) 以下任何一家.. - 由國際資本市場協會組織的市場 ; - 英倫銀行於 1988 年 4 月刊發的 The Regulation of the Wholesale Markets in Sterling, Foreign Exchange and Bullion ( 經不時修訂 ) 所述的 上市貨幣市場機構 ; - 受紐約聯邦儲備銀行規管的一級交易商所經營的美國政府證券市場 ; - 由美國全國證券交易商協會及美國證券交易委員會規管的交易商組成的市場 ; - 美國納斯達克 ; - 由日本證券交易商協會規管的日本場外市場 ; - 由全國證券交易商協會有限公司 (National Association of Securities Dealers Inc.) 規管的美國場外市場, 亦稱為由美國證券交易委員會及全國證券交易商協會 ( 以及由美國貨幣監理署 (US Comptroller of the Currency) 聯邦儲備系統 (Federal Reserve System) 或聯邦存款保險公司 (Federal Deposit Insurance Corporation) 規管的銀行機構 ) 規管的一級交易商及二級交易商運作的美國場外市場 ; - 法國的可轉讓債務票據場外市場 (Titres de Créances Négotiables); - 由加拿大投資交易商協會 (Investment Dealers Association of Canada) 規管的加拿大政府債券場外市場 (iv) 獲允許的金融衍生工具可在其上市或交易的所有衍生工具交易所: - 成員國 ; - 在歐洲經濟區的成員國 ( 歐盟 挪威 冰島及列支敦士登 ); - 美國 - 芝加哥交易所 (Chicago Board of Trade); - 芝加哥期權交易所 (Chicago Board Options Exchange); - 芝加哥商業交易所 (Chicago Mercantile Exchange); - Eurex US; - 紐約期貨交易所 (New York Futures Exchange); - 紐約商品交易所 (New York Mercantile Exchange) - 中國, 上海期貨交易所 ; - 香港, 香港期貨交易所 ; - 日本 - 大阪證券交易所 (Osaka Securities Exchange); - 東京金融交易所 (Tokyo Financial Exchange Inc.); - 東京證券交易所 (Tokyo Stock Exchange); - 新西蘭,NZX Limited; - 新加坡, 新加坡商品交易所 (Singapore Mercantile Exchange) 惟保管人及基金經理有權修改此項定義, 即是從上文名單中增加或刪去國家 市場及交易所而毋須通過特別決議案批准 54

144 上述的市場及交易所乃根據中央銀行的要求而於本文件刊載, 該局並無刊發獲核准市場名單 55

145 附錄 III- 有效投資組合管理 章程的本節闡明投資經理可用作有效投資組合管理或投資目的之工具及 / 或策略 投資經理將按要求向單位持有人提供有關所採用的風險管理方法的補充資料, 包括採用的數量限制以及主要投資類別的風險及收益特徵的任何最新發展 每一基金可以運用相關補充文件列出的技術及工具作有效投資組合管理目的 投資經理擬運用下文所述的衍生工具及投資技術而達到的有效投資組合管理目的, 是在考慮基金的風險概況及 UCITS 規例的一般規定後, 為相關基金降低風險 降低成本及在適當的風險水平下產生額外資本或收入 投資經理可使用各種衍生工具, 包括但不限於認股權證 交易所買賣期貨及期權 貨幣遠期合約 掉期協議 差價合約 指數掛鈎票據及股票及商品指數期貨合約 任何因運用有效投資組合管理技巧而產生的直接營運成本及 或費用 ( 可於交付予基金的收入中扣除 ) 應按一般商業利率計算, 且不應包括任何隱藏收入 該等直接成本及費用將會支付予交易的相關對手方 透過運用有效投資組合管理技巧所產生的所有收入 ( 扣除直接及間接營運成本 ) 將交還予相關基金 獲支付任何直接及間接成本及費用的實體將於本公司的定期報告中披露, 並將表明該等實體是否與基金經理或保管人相關的各方 投資者應注意, 單位信託基金須遵守中央銀行根據 UCITS 規例不時規定並載列如下的條件及限額 在基金運用任何衍生工具作有效投資組合管理之前, 基金經理須就適當的風險管理程序獲得中央銀行的批准 該等交易所產生收益的資料, 連同獲支付與該等交易相關的直接及間接營運成本及費用之實體, 須在單位信託基金的年度及半年度報告中披露 該等實體可包括與基金經理 保管人或與基金經理或保管人相關的實體 投資者應查看本章程 風險考慮因素 一節以了解對手方風險 信貸風險及與證券融資交易的相關風險的資料 對手方程序 投資經理已成立管治委員會, 負責根據公司的整體對手方風險管理政策載列的條文及規定, 批准及監察買賣及衍生工具對手方 倘對手方被標準普爾 惠譽或穆迪下調評級至 A2 或以下 ( 或類似評級 ), 則會導致進行新的信貸評估 就場外衍生工具而言, 所有對手方均為投資級別, 即獲標準普爾或另一間國際認可評級機構評為 BBB- 或以上或投資經理認為具類似信貸狀況的對手方 該等掉期合約的對手方概不會對基金的投資組合或相關投資有任何酌情決定權, 而基金的任何投資組合交易亦毋須取得對手方批准 管治委員會監察的主要準則為有關對手方的結構 管理 財務實力 內部控制及一般聲譽, 以及相關市場的法律 監管及政治環境 及後, 該等對手方會被持續監察 ( 利用股份價格走勢資料及其他市場資訊 ) 對手方風險將每日記錄及監察, 並向管治委員會匯報 所選的對手方將屬於根據歐盟金融工具市場指令 (EU MiFID Directive)(2004/39/EC) 獲認可的投資公司或從美國聯邦儲備局獲發行銀行控股公司牌照的實體的集團公司, 而該集團公司須受聯邦儲備局的銀行控股公司合併監管或 認可信貸機構 認可信貸機構是 : (i) 獲歐洲經濟區認可的信貸機構 ; 或 (ii) 獲 1988 年 7 月 巴塞爾資本統合協議 (Basle Capital Convergence Agreement) 簽約國 ( 歐洲經濟區成員國除外 ) ( 瑞士 加拿大 日本 美國 ) 認可的信貸機構 ; 或 (iii) 獲澤西島 根西島 馬恩島 澳洲或新西蘭認可的信貸機構 每一對手方亦將須遵守以下各項.. (i) 最佳執行 - 透過具規模的第三方分析系統監察對手方及作出評級, 以優化交易策略 (ii) 經營效率 - 投資經理的交易商根據其服務質素為對手方評級 就每一交易而言, 最佳執行較任何其他考慮事項優先, 且投資經理概不得進行直接交易 在 UCITS 規例所載條件及限制規限下, 基金可運用回購協議 逆回購協議及 或借股協議作有效投資組合管理用途, 即為基金帶來額外收入 回購協議指一方向另一方出售證券, 而同時訂立協議於固定未來日期按指定價格購回有關證券的各項交易, 有關指定價格反映與證券票面利率無關的市場利率 逆回購協議指基金向對手方買入證券, 而同時承諾於協定日期及按協定價格將有關證券售回對手方的各項交易 借股協議指 貸方 將 借出 證券的所有權轉讓予 借方, 而借方立約於較後日期將 等價證券 交回貸方的協議 56

146 投資經理將就每一基金運用風險管理程序, 讓其可準確地計量 監控及管理與衍生工具相關的各項風險 抵押品管理 根據中央銀行規定, 投資經理將就因場外金融衍生工具交易而收到的抵押品 ( 不論是為投資或有效投資組合管理目的以及 為回購協議 逆回購協議及 或借股協議而收取 ) 代表單位信託基金及每一基金運用抵押品管理政策 投資經理就基金採用的抵押品管理政策規定, 與估值 發行的信貸質素 相關性及抵押品分散有關的現金及符合監管準則 ( 於風險管理程序中披露 ) 的高度流動性資產將為每一建議金融衍生工具交易的許可抵押品 除現金外所收到的抵押品將具有高度流動性, 並在受監管市場或多邊交易設施上以透明的定價買賣, 以便能夠以接近預售估值的價格迅速出售 抵押品將按照市場價格每日進行估值, 如果抵押品的價值跌至低於承保要求, 將使用每日變動保證金 收到的抵押品將由獨立於對手方的實體發行, 且預期不會與對手方的業績表現出高度相關性 抵押品將在國家 市場及發行人方面充份多樣化, 而對某一發行人的最大投資為相關基金資產淨值的 20% 倘基金投資於不同對手方, 則集合不同的抵押品籃子以計算單一發行人的 20% 投資限制 此外, 相關基金可全數抵押在成員國 其一個或多個地方當局 第三國家或一個或多個成員國所屬的公共國際機構 ( 載於本章程附錄 I) 發行或擔保的不同可轉讓證券及貨幣市場工具, 惟基金須收到最少六次不同發行的證券, 及任何一次發行的證券不可超逾基金資產淨值的 30% 由投資經理操作的抵押品政策將設定投資經理就衍生工具交易所需的適當抵押品水平 投資經理亦將為各個作為抵押品收取的資產類別, 在計入該等作為抵押品而收取的資產特性 ( 例如其信貸地位或價格波動以及任何流動性壓力測試政策的結果 ) 後, 採用清晰的扣減政策 ( 即將從用作抵押品的資產市值中扣減事先釐定的百份比之政策 ) 投資經理代表相關基金不得出售 抵押或再投資相關基金接獲的任何非現金抵押品 不可出售 抵押或再投資非現金抵押品及任何為及代表基金收取的現金抵押品可投資於以下任何一項.. (i) 於相關機構的存款 ( 定義見中央銀行的可轉讓證券集體投資計劃規例 ); (ii) 高質素的政府債券 ; (iii) 逆回購協議, 惟該等交易乃與信貸機構 ( 定義見中央銀行的可轉讓證券集體投資計劃規例 ) 作出, 且 UCITS 可於 任何時候以累計方式收回全額現金 ; (iv) 短期貨幣市場基金 ( 定義見 ESMA Guidelines on a Common Definition of European Money Market Funds) 已投資的現金抵押品將根據適用於非現金抵押品的分散規定予以分散, 並可能不會存於對手方或有關連實體存款 在基金接獲佔其資產最少 30% 的抵押品的情況下, 投資經理將採納適當的壓力測試政策, 以確保可在正常及不尋常的的流動性狀況下進行定期壓力測試, 以令投資經理可評估抵押品附帶的流動性風險 流動性壓力測試政策應在投資經理所採用的風險管理過程中披露 抵押品的估值 基金接獲的抵押品將至少每日估值, 而價格波動大的資產, 除非設有適當保守的扣減率, 否則將不獲接受為抵押品 由於抵押品的規定流動性質, 基金接獲的非現金抵押品將按市價計值 安全保管基金接獲的抵押品 基金按所有權轉讓所接獲的抵押品應由保管人或保管人正式委任的次級保管人持有 就其他類型的抵押品安排而言, 抵押品可由保管人 保管人正式委任的次級保管人或第三方託管人持有, 而該第三方託管人須受到審慎監管, 並不得與抵押品供應人有任何關聯 基金將抵押品過賬 基金向對手方提供的抵押品須與相關對手方協定, 並可包括相關基金根據其投資目標及政策持有的現金或任何種類的資產, 並須 ( 如適用 ) 符合 EMIR 的要求 抵押品可由基金按所有權轉讓轉交對手方, 在該情況下, 資產在託管範圍外轉移, 並且不再由保管人或其次級保管人持有 在該等情況下, 在 SFTR 規定的規限下, 交易的對手方可絕對酌情決定使用該等資產 如抵押品由基金根據證券抵押品安排過賬至對手方, 而相關證券的所有權仍屬相關基金所有, 則該抵押品必須由保管人或其次級保管人安全保管 然而, 在 SFTR 規定的規限下, 對手方可能有權再用該等資產 與再用抵押品相關的風險載於 風險考慮因素 : 與抵押品管理有關的營運風險 57

147 霸菱大東協基金 管理費 1.25% 0.75% 行政管理 保管及營運開支費 A 0.45% ( 對沖類別 %) I 0.25% ( 對沖類別 %) 基本貨幣美元美元 可供投資的對沖類別 可供投資的非對沖類別 分派單位 ( 收益 ) 股息支付日期 1 最低認購及持有水平 1 其後的最低投資額 A 類別澳元對沖累積 A 類別瑞士法郎對沖累積 A 類別歐元對沖累積 A 類別人民幣對沖累積 A 類別歐元累積 A 類別歐元收益 A 類別英鎊累積 A 類別英鎊收益 A 類別美元累積 A 類別美元收益 在每年不遲於 7 月 31 日支付 I 類別瑞士法郎對沖累積 I 類別歐元對沖累積 I 類別歐元累積 I 類別英鎊累積 I 類別英鎊收益 I 類別美元累積 6,000 澳元 - 2 5,000 美元 2 10,000,000 美元 3,500 歐元 10,000,000 歐元 2,500 英鎊 10,000,000 英鎊 500 澳元 美元 美元 500 歐元 500 歐元 500 英鎊 500 英鎊 1 2 或基金經理可酌情釐定的較低金額所列美元金額的等值瑞士法郎或人民幣 投資目標及政策 基金的投資目標是透過投資於基金經理認為將從經濟增長及地區發展中受惠的亞洲公司, 在資產價值中達致長期資本增長 基金將尋求透過在任何時候把其總資產至少 70% 投資於已在東南亞國協會 (ASEAN,Association of South-East Asian Nations) 成員國註冊成立的公司, 或在該等國家進行其主要經濟活動的公司的股票及股票相關證券, 或在該等國家的證券交易所掛牌或買賣的股票及股票相關證券, 以達致其投資目標 ASEAN 的成員國包括 ( 但不限於 ) 新加坡 泰國 菲律賓 馬來西亞 印尼及越南 股票相關證券的說明載於標題為 投資政策..整體政策 一節 就此而言, 總資產並不包括現金及輔助流動資金 基金亦可將其最多 30% 的總資產直接或透過預託證券投資於 (a) 在亞太區其他市場, 包括但不限於韓國 香港 中國 台灣 印度 澳洲 紐西蘭 巴基斯坦 斯里蘭卡及孟加拉, 但日本除外, 或 (b) 基金經理認為將可能從亞太區 ( 日本除外 ) 的經濟增長及地區發展中受惠的其他市場 ( 如基金經理認為適合 )(i) 註冊成立, 或 (ii) 進行其主要經濟活動, 或 (iii) 在證券交易所上市或買賣的公司的股票及股票相關證券 基金亦可根據中央銀行的規定, 將基金的資產淨值最多 10% 投資於集體投資計劃 就投資於中國而言, 在任何時候均不可將基金資產淨值多於 10% 直接或間接投資於中國 A 股及 B 股 預期此項投資將可透過經互聯互通機制 ( 於章程中標題為 投資政策..整體政策 一節中進一步說明 ) 投資於在上海證券交易所及深圳證券交易所上市的中國 A 股直接作出, 或透過投資於其他合資格集體投資計劃或參與票據間接作出 基金可根據中央銀行的規定, 投資於標題為 投資政策 : 整體政策 一節所詳述的各類金融衍生工具, 以作投資目的或有效投資組合管理, 但不會廣泛運用該等衍生工具作投資用途 如運用衍生工具, 基金將透過運用衍生工具的固有槓桿作用產生槓桿效應 58

148 策略 投資經理相信股票市場存在被忽略的增長潛力, 並尋求透過分析公司的業務模式, 同時將更廣泛的經濟及社會管治趨勢納入分析 ( 一般稱為基礎分析 ), 從而識別此潛力 投資經理的股票投資團隊擁有共同的投資方法, 稱為合理價格增長 (Growth at a Reasonable Price 或 GARP) GARP 尋求透過進行結構性基礎分析, 配合有紀律的投資過程, 從而辨別出其質素被市場參與者忽略及定價合理的成長型公司 根據基金傾向的地區 國家或界別, 潛在成長型公司的分析包括其未來財政表現以及其業務模式及管理風格, 並同時專注於三至五年的長期盈利增長 投資經理的策略有利業務專營權發展成熟或有改善 管理專注於盈利能力及資產負債表強健並讓公司可執行其業務策略的公司 投資經理認為此等公司的質素較高, 因其提供透明度, 讓我們的投資專家能更有信心預測收益 這讓投資經理可提供隨著時間推移而波動性預期較低的基金 典型投資者概覽 基金可能適合在中至長期投資期間內尋求資本增長的投資者, 並了解及已準備接受基金的價值與其他投資種類相比, 可能會有較頻繁及較大幅度的上升或下跌 這一般意味著 5 年的最短時期, 但視乎個人風險概況, 時期可能更短 59

149 霸菱亞洲增長基金 管理費 1.25% 0.75% 行政管理 保管及營運開支費 A 0.45% ( 對沖類別 %) I 0.35% ( 對沖類別 %) 基本貨幣美元美元 可供投資的對沖類別 可供投資的非對沖類別 分派單位 ( 收益 ) 股息支付日期 1 最低認購及持有水平 1 其後的最低投資額 A 類別澳元對沖累積 A 類別瑞士法郎對沖累積 A 類別歐元對沖累積 A 類別人民幣對沖累積 A 類別歐元累積 A 類別歐元收益 A 類別英鎊累積 A 類別英鎊收益 A 類別美元累積 A 類別美元收益 在每年不遲於 7 月 31 日支付 I 類別瑞士法郎對沖累積 I 類別歐元對沖累積 I 類別歐元累積 I 類別英鎊累積 I 類別英鎊收益 I 類別美元累積 6,000 澳元 - 2 5,000 美元 2 10,000,000 美元 3,500 歐元 10,000,000 歐元 2,500 英鎊 10,000,000 英鎊 500 澳元 美元 美元 500 歐元 500 歐元 500 英鎊 500 英鎊 1 2 或基金經理可酌情釐定的較低金額所列美元金額的等值瑞士法郎或人民幣 投資目標及政策 基金的投資目標是透過投資於亞洲及太平洋地區 ( 日本除外 ), 在資產價值中達致長期資本增長 基金將尋求透過把其總資產至少 70% 投資於已在亞太區 ( 日本除外 ) 註冊成立或在該等地區進行其主要經濟活動的公司, 或在該等國家 ( 包括已發展及新興市場 ) 的交易所上市或買賣的股票及股票相關證券, 以達致其投資目標 就此而言, 總資產並不包括現金及輔助流動資金 至於其總資產的其餘部份, 基金可投資於亞太區以外的地區 ( 日本除外 ), 以及投資於固定收益與現金 儘管基金將旨在分散其投資, 惟視乎投資經理於不同時間的評估, 於若干國家 行業或界別的分配可能超過其總資產的 30% 為實施投資政策, 基金可透過美國預託證券 全球預託證券及其他股票相關證券 ( 包括符合中央銀行的可轉讓證券集體投資計劃規例所載的可轉讓證券準則的參與票據 結構性票據 股票掛鈎票據及可轉換為股票的債務證券 ) 取得投資參與 基金亦可根據中央銀行的規定, 將基金的資產淨值最多 10% 投資於集體投資計劃 基金可投資於金融衍生工具, 包括期貨 期權 認股權證及遠期合約, 以作有效投資組合管理及投資目的 就投資於中國而言, 在任何時候均不可將基金資產淨值多於 10% 直接或間接投資於中國 A 股及 B 股 預期此項投資將可透過經互聯互通機制 ( 於章程中標題為 投資政策..整體政策 一節中進一步說明 ) 投資於在上海證券交易所及深圳證券交易所上市的中國 A 股直接作出, 或透過投資於其他合資格集體投資計劃或參與票據間接作出 參與票據可用作投資於中國及越南的股票市場 60

150 如運用衍生工具, 基金將透過運用衍生工具的固有槓桿作用產生槓桿效應 雖然基金可運用衍生工具, 但不會廣泛運用該等金融衍生工具作投資目的 策略 投資經理相信股票市場存在被忽略的增長潛力, 並尋求透過分析公司的業務模式, 同時將更廣泛的經濟及社會管治趨勢納入分析 ( 一般稱為基礎分析 ), 從而識別此潛力 投資經理的股票投資團隊擁有共同的投資方法, 稱為合理價格增長 (Growth at a Reasonable Price 或 GARP) GARP 尋求透過進行結構性基礎分析, 配合有紀律的投資過程, 從而辨別出其質素被市場參與者忽略及定價合理的成長型公司 根據基金傾向的地區 國家或界別, 潛在成長型公司的分析包括其未來財政表現以及其業務模式及管理風格, 並同時專注於三至五年的長期盈利增長 投資經理的策略有利業務專營權發展成熟或有改善 管理專注於盈利能力及資產負債表強健並讓公司可執行其業務策略的公司 投資經理認為此等公司的質素較高, 因其提供透明度, 讓我們的投資專家能更有信心預測收益 這讓投資經理可提供隨著時間推移而波動性預期較低的基金 典型投資者概覽 基金可能適合在中至長期投資期間內尋求資本增長的投資者, 並了解及已準備接受基金的價值與其他投資種類相比, 可能會有較頻繁及較大幅度的上升或下跌 這一般意味著 5 年的最短時期, 但視乎個人風險概況, 時期可能更短 61

151 霸菱澳洲基金 管理費 1.25% 0.75% 行政管理 保管及營運開支費 A 0.45% ( 對沖類別 %) I 0.25% 基本貨幣美元美元 可供投資的對沖類別 A 類別人民幣對沖累積 - 可供投資的非對沖類別 分派單位 ( 收益 ) 股息支付日期 1 最低認購及持有水平 1 其後的最低投資額 A 類別澳元收益 A 類別歐元累積 A 類別歐元收益 A 類別英鎊收益 A 類別美元收益 在每年不遲於 7 月 31 日支付 I 類別澳元累積 I 類別歐元累積 I 類別英鎊累積 I 類別英鎊收益 I 類別美元累積 6,000 澳元 10,000,000 澳元 2 5,000 美元 10,000,000 美元 3,500 歐元 10,000,000 歐元 2,500 英鎊 10,000,000 英鎊 500 澳元 500 澳元 美元 500 美元 500 歐元 500 歐元 500 英鎊 500 英鎊 1 或基金經理可酌情釐定的較低金額 2 所列美元金額的等值人民幣 投資目標及政策 基金的投資目標是透過投資於澳洲以在資產價值中達致長期資本增長 基金將尋求透過在任何時候把其總資產至少 70% 投資於已在澳洲註冊成立或在澳洲進行其主要經濟活動的公司的股票及股票相關證券, 或在澳洲的交易所上掛牌或買賣的股票及股票相關證券, 以達致其投資目標 股票相關證券的說明載於標題為 投資政策..整體政策 一節 就此而言, 總資產並不包括現金及輔助流動資金 基金亦可將其最多 30% 的總資產直接或透過預託證券投資於 (a) 在亞太區澳洲以外市場, 或 (b) 基金經理認為將可能從亞太區的經濟增長及地區發展中受惠的其他市場 ( 如基金經理認為適合 )(i) 註冊成立, 或 (ii) 進行其主要經濟活動, 或 (iii) 在證券交易所上市或買賣的公司的股票及股票相關證券 基金亦可根據中央銀行的規定, 將基金的資產淨值最多 10% 投資於集體投資計劃 基金可根據中央銀行的規定, 投資於標題為 投資政策 : 整體政策 一節所詳述的各類金融衍生工具, 以作投資目的或有效投資組合管理, 但不會廣泛運用該等衍生工具作投資用途 如運用衍生工具, 基金將透過運用衍生工具的固有槓桿作用產生槓桿效應 策略 投資經理相信股票市場存在被忽略的增長潛力, 並尋求透過分析公司的業務模式, 同時將更廣泛的經濟及社會管治趨勢納入分析 ( 一般稱為基礎分析 ), 從而識別此潛力 投資經理的股票投資團隊擁有共同的投資方法, 稱為合理價格增長 (Growth at a Reasonable Price 或 GARP) GARP 尋求透過進行結構性基礎分析, 配合有紀律的投資過程, 從而辨別出其質素被市場參與者忽略及定價合理的成長型公司 根據基金傾向的地區 國家或界別, 潛在成長型公司的分析包括其未來財政表現以及其業務模式及管理風格, 並同時專注於三至五年的長期盈利增長 62

152 投資經理的策略有利業務專營權發展成熟或有改善 管理專注於盈利能力及資產負債表強健並讓公司可執行其業務策略的公司 投資經理認為此等公司的質素較高, 因其提供透明度, 讓我們的投資專家能更有信心預測收益 這讓投資經理可提供隨著時間推移而波動性預期較低的基金 典型投資者概覽 基金可能適合在中至長期投資期間內尋求資本增長的投資者, 並了解及已準備接受基金的價值與其他投資種類相比, 可能會有較頻繁及較大幅度的上升或下跌 這一般意味著 5 年的最短時期, 但視乎個人風險概況, 時期可能更短 63

153 霸菱歐洲基金 A C I 管理費 1.25% 1.25% 0.75% 行政管理 保管及營運開支費 0.45% ( 對沖類別 %) 0.45% 0.25% 基本貨幣美元美元美元 可供投資的對沖類別 A 類別人民幣對沖累積不適用不適用 可供投資的非對沖類別 A 類別歐元累積 A 類別歐元收益 A 類別美元收益 3 C 類別歐元收益 3 C 類別美元收益 I 類別歐元累積 I 類別英鎊收益 I 類別美元累積 分派單位 ( 收益 ) 股息支付日期 最低認購及持有水平 1 其後的最低投資額 1 2 5,000 美元 在每年不遲於 7 月 31 日支付 5,000 美元 10,000,000 美元 3,500 歐元 3,500 歐元 10,000,000 歐元 美元 10,000,000 英鎊 500 美元 500 美元 500 歐元 500 歐元 500 歐元 500 英鎊 1 或基金經理可酌情釐定的較低金額 2 所列美元金額的等值人民幣 3 C 類別單位將可提供予已與基金經理或其授權代理訂有配售代理或分銷安排之若干分銷商 C 類別單位亦應支付一項分銷商費用, 有關費用相當於基金歸屬於各類別的資產淨值每年 1% 如有收取該項費用, 將應支付予根據基金經理或其受委人與相關分銷商訂立的配售代理協議而獲委任為分銷商的有關分銷商 分銷商費用應每日累計及於每季期末支付 投資目標及政策 基金的投資目標是透過投資於歐洲國家 ( 包括英國 ) 的公司以在資產價值中達致長期資本增長 基金將尋求透過在任何時候把其總資產至少 70% 投資於已在任何歐洲國家 ( 包括英國 ) 註冊成立的公司, 或進行其主要經濟活動的公司的股票及股票相關證券, 或在該等國家的交易所掛牌或買賣的股票及股票相關證券, 以達致其投資目標 基金經理將評估歐洲各國投資前景, 平衡投資組合的比例 基金可投資於任何一個國家的比例並無限制 股票相關證券的說明載於標題為 投資政策..整體政策 一節 就此而言, 總資產並不包括現金及輔助流動資金 基金將持續把其資產至少 75% 投資於合資格證券 ( 包括由總辦事處位於歐盟或歐洲經濟區國家 ( 列支敦士登除外 ) 的公司所發行, 以及在正常情況下須繳納企業所得稅的股本證券 ), 使法國投資者得以從法國合資格儲蓄計劃 PEA (Plan d Epargne en Actions equity savings plans) 獲益 基金亦可根據中央銀行的規定, 將基金的資產淨值最多 10% 投資於集體投資計劃 基金可根據中央銀行的規定, 投資於標題為 投資政策 : 整體政策 一節所詳述的各類金融衍生工具, 以作投資目的或有效投資組合管理, 但不會廣泛運用該等衍生工具作投資用途 如運用衍生工具, 基金將透過運用衍生工具的固有槓桿作用產生槓桿效應 策略 投資經理相信股票市場存在被忽略的增長潛力, 並尋求透過分析公司的業務模式, 同時將更廣泛的經濟及社會管治趨勢納入分析 ( 一般稱為基礎分析 ), 從而識別此潛力 投資經理的股票投資團隊擁有共同的投資方法, 稱為合理價格增長 (Growth at a Reasonable Price 或 GARP) GARP 尋求透過進行結構性基礎分析, 配合有紀律的投資過程, 從而辨別出其質素被市場參與者忽略及定價合理的成長型公司 根據基金傾向的地區 國家或界別, 潛在成長型公司的分析包括其未來財政表現以及其業務模式及管理風格, 並同時專注於三至五年的長期盈利增長 64

154 投資經理的策略有利業務專營權發展成熟或有改善 管理專注於盈利能力及資產負債表強健並讓公司可執行其業務策略的公司 投資經理認為此等公司的質素較高, 因其提供透明度, 讓我們的投資專家能更有信心預測收益 這讓投資經理可提供隨著時間推移而波動性預期較低的基金 典型投資者概覽 基金可能適合在中至長期投資期間內尋求資本增長的投資者, 並了解及已準備接受基金的價值與其他投資種類相比, 可能會有較頻繁及較大幅度的上升或下跌 這一般意味著 5 年的最短時期, 但視乎個人風險概況, 時期可能更短 65

155 霸菱香港中國基金 A C I 管理費 1.25% 1.25% 0.75% 行政管理 保管及營運開支費 0.45% ( 對沖類別 %) 0.45% 0.25% 基本貨幣美元美元美元 可供投資的對沖類別 A 類別人民幣對沖累積 - - 可供投資的非對沖類別 分派單位 ( 收益 ) 股息支付日期 1 最低認購及持有水平 1 其後的最低投資額 A 類別歐元累積 A 類別歐元收益 A 類別英鎊收益 A 類別美元累積 A 類別美元收益 A 類別港元收益 2 5,000 美元 3 C 類別歐元收益 3 C 類別美元收益 在每年不遲於 7 月 31 日支付 I 類別歐元累積 I 類別英鎊累積 I 類別英鎊收益 I 類別美元累積 5,000 美元 10,000,000 美元 3,500 歐元 3,500 歐元 10,000,000 英鎊 2,500 英鎊 10,000,000 歐元 美元 500 美元 500 美元 500 歐元 500 歐元 500 英鎊 500 英鎊 500 歐元 1 或基金經理可酌情釐定的較低金額 2 所列美元金額的等值人民幣或港元 3 C 類別單位將可提供予已與基金經理或其授權代理訂有配售代理或分銷安排之若干分銷商 C 類別單位亦應支付一項分銷商費用, 有關費用相當於基金歸屬於各類別的資產淨值每年 1% 如有收取該項費用, 將應支付予根據基金經理或其受委人與相關分銷商訂立的配售代理協議而獲委任為分銷商的有關分銷商 分銷商費用應每日累計及於每季期末支付 投資目標及政策 基金的投資目標是透過投資於香港 中國及台灣以在資產價值中達致長期資本增長 基金將尋求透過在任何時候把其總資產至少 70% 直接投資於已在香港或中國 (i) 註冊成立, 或 (ii) 進行其主要經濟活動, 或 (iii) 在證券交易所掛牌或買賣的公司的股票或透過該等公司的股票相關證券 ( 包括預託證券 ), 以達致其投資目標 股票相關證券的說明載於標題為 投資政策..整體政策 一節 就此而言, 總資產並不包括現金及輔助流動資金 投資經理亦可將其總資產最多 30% 投資於基金主要地區 ( 包括但不限於台灣 ) 市場界別 貨幣或資產類別以外 就債務證券的投資而言, 基金對相關債務證券的信貸評級並無任何特定規限或限制 基金經理將評估投資前景, 平衡投資組合的比例, 但可因應相關投資情況, 集中投資於基金經理認為屬香港或中國經濟支柱的行業的公司, 例如國際貿易 地產及建築 工程 電子或服務業 基金亦可根據中央銀行的規定, 將基金的資產淨值最多 10% 投資於集體投資計劃 就投資於中國而言, 在任何時候均不可將基金資產淨值多於 10% 直接或間接投資於中國 A 股及 B 股 預期此項投資將可透過經互聯互通機制 ( 於章程中標題為 投資政策..整體政策 一節中進一步說明 ) 投資於在上海證券交易所及深圳證券交易所上市的中國 A 股直接作出, 或透過投資於其他合資格集體投資計劃或參與票據間接作出 基金可根據中央銀行的規定, 投資於標題為 投資政策 : 整體政策 一節所詳述的各類金融衍生工具, 以作投資目的或有效投資組合管理, 但不會廣泛運用該等衍生工具作投資用途 如運用衍生工具, 基金將透過運用衍生工具的固有槓桿作用產生槓桿效應 66

156 策略 投資經理相信股票市場存在被忽略的增長潛力, 並尋求透過分析公司的業務模式, 同時將更廣泛的經濟及社會管治趨勢納入分析 ( 一般稱為基礎分析 ), 從而識別此潛力 投資經理的股票投資團隊擁有共同的投資方法, 稱為合理價格增長 (Growth at a Reasonable Price 或 GARP) GARP 尋求透過進行結構性基礎分析, 配合有紀律的投資過程, 從而辨別出其質素被市場參與者忽略及定價合理的成長型公司 根據基金傾向的地區 國家或界別, 潛在成長型公司的分析包括其未來財政表現以及其業務模式及管理風格, 並同時專注於三至五年的長期盈利增長 投資經理的策略有利業務專營權發展成熟或有改善 管理專注於盈利能力及資產負債表強健並讓公司可執行其業務策略的公司 投資經理認為此等公司的質素較高, 因其提供透明度, 讓我們的投資專家能更有信心預測收益 這讓投資經理可提供隨著時間推移而波動性預期較低的基金 典型投資者概覽 基金可能適合在中至長期投資期間內尋求資本增長的投資者, 並了解及已準備接受基金的價值與其他投資種類相比, 可能會有較頻繁及較大幅度的上升或下跌 這一般意味著 5 年的最短時期, 但視乎個人風險概況, 時期可能更短 67

157 霸菱國際債券基金 管理費 0.75% 0.50% 行政管理 保管及營運開支費 A 0.45% ( 對沖類別 %) I 0.25% 基本貨幣美元美元 可供投資的對沖類別 A 類別人民幣對沖收益 ( 每月 ) 3 可供投資的非對沖類別 A 類別歐元收益 A 類別英鎊收益 A 類別美元收益 可供投資的累積單位 ( 累積 ) 沒有有 不適用 I 類別歐元累積 I 類別英鎊累積 I 類別英鎊收益 I 類別美元累積 分派單位 ( 收益 ) 股息支付日期 3 在每年不遲於 1 月 31 日及 7 月 31 日支付兩次 在每年不遲於 7 月 31 日支付 1 最低認購及持有水平 1 其後的最低投資額 2 5,000 美元 10,000,000 美元 3,500 歐元 10,000,000 歐元 2,500 英鎊 10,000,000 英鎊 美元 500 美元 500 歐元 500 歐元 500 英鎊 500 英鎊 1 或基金經理可酌情釐定的較低金額 2 所列美元金額的等值人民幣 3 有關 A 類別人民幣對沖收益 ( 每月 ) 類別的分派乃在每月不遲於最後營業日支付 投資目標及政策 基金的投資目標是透過投資於多元化的定息證券投資組合, 以在資產價值中達致可觀的收入水平以及長期增長 基金將尋求透過在任何時候把其總資產至少 70% 投資於多元化的國際公司及政府定息證券投資組合, 以達致其投資目標 該投資組合亦可不時包括浮息證券 就此而言, 總資產並不包括現金及輔助流動資金 定息證券大多數獲得標準普爾 ( 標準普爾 ) 或另一國際認可評級機構的 A- 級或以上範圍內的評級, 或基金經理認為屬相若的信貸評級, 而浮息證券應獲得標準普爾或另一國際認可信貸評級機構的 AA- 級或以上範圍內的評級, 或基金經理認為屬相若的信貸評級 如證券不獲標準普爾評級, 有關評級將由投資經理決定為具可資比較質素 主權借款國以本身貨幣發行的證券並無信貸質素方面的限制 然而, 預期基金將不會將多於其淨資產的 10% 投資於由國際認可評級機構評為低於投資評級的單一主權國 ( 包括其政府 該國家的公共或地方政府 ) 所發行及 或保證的證券 如各家評級機構的評級有別, 則相關主權發行人獲授予的最高信貸評級將被視為參考信貸評級 除可投資於非上市證券的基金資產百分比 ( 見 附錄 I ) 以外, 基金經理僅可投資於在受規管 定期營運且受認可的, 以及對公眾公開的證券交易所及市場買賣的證券 基金亦可根據中央銀行的規定, 將基金的資產淨值最多 10% 投資於集體投資計劃 儘管基金的資產淨值以美元表示, 以其他貨幣計值的投資之相對吸引力為基金經理的主要考慮之一 基金可根據中央銀行的規定, 投資於標題為 投資政策 : 整體政策 一節所詳述的各類金融衍生工具, 以作投資目的或有效投資組合管理, 但不會廣泛運用該等衍生工具作投資用途 如運用衍生工具, 基金將透過運用衍生工具的固有槓桿作用產生槓桿效應 68

158 策略 基金透過投資於投資經理認為收益有可能下降的債券市場, 同時避免投資於被視為貴價的債券市場, 以尋求投資回報 如投資經理對與市場有關的經濟發展預期有所變更, 基金的整體存續期或利率敏感性將會波動 基金亦有意藉著主動投資於貨幣 ( 相對基準而言 ), 透過外匯管理, 識別匯率吸引的市場 ( 例如因穩健的經濟基本狀況或利率上升 ), 以圖增值 槓桿及風險價值 如運用衍生工具, 基金將透過運用衍生工具的固有槓桿作用產生槓桿效應 儘管基金可運用衍生工具, 但不會廣泛運用該等衍生工具作投資用途 - 當槓桿效應按照中央銀行的可轉讓證券集體投資計劃規例所訂明計算為所運用全部衍生工具的名義價值總和, 基金的槓桿水平預期為其資產淨值的 0% 至 70% 之間不等 - 槓桿效應或會因時而異, 亦有可能會有較高的槓桿水平, 尤其是在基金有大量淨額認購或贖回而將會運用期貨作風險承擔管理的期間 在該等情況下, 當槓桿效應計算為所運用全部衍生工具的名義價值總和時, 預期槓桿效應在任何時候均不會超過基金資產淨值的 100% 為量度市場風險波幅, 基金將運用相對 風險值 ( VaR ) 方法, 此為一個先進的風險量度方法 VaR 方法是量度因市場風險而造成的最高潛在虧損的方法, 而非量度槓桿效應 更具體而言,VaR 方法量度在正常市況下於特定期間內於既定信心水平 ( 或然率 ) 的最高潛在虧損 基金的 VaR 不會大於基金的參考投資組合的 VaR 的兩倍 基金的相對 VaR 計算所用的參考投資組合是花旗集團世界政府債券指數 (Citigroup World Government Bond Index) 基金的 VaR 將運用蒙地卡羅法 (Monte Carlo approach) 單邊 99% 信心水平 10 日持有期間及一年過往觀察期間以及 11 日半衰期每日計算 基金應時刻符合透過運用上文所載的風險價值方法所量度的市場風險水平的限額 典型投資者概覽 基金可能適合在中至長期投資期間內尋求可觀的收入水平及資本增長的投資者, 並了解及已準備接受基金的價值與其他投資種類相比, 可能會有較頻繁及較大幅度的上升或下跌 這一般意味著 5 年的最短時期, 但視乎個人風險概況, 時期可能更短 69

159 地址 : Baring Asset Management Limited 155 Bishopsgate London EC2M 3XY 重要資料 : 本文件獲 Baring Asset Management Limited 認可及由其刊發 披露 : Baring Asset Management Limited 獲金融市場行為監管局認可及受其規管 155 Bishopsgate, London, EC2M 3XY

160 Barings International Umbrella Fund Prospectus 30 April 2018

161 BARINGS INTERNATIONAL UMBRELLA FUND HONG KONG COVERING DOCUMENT 30 April

162 CONTENTS Page INFORMATION FOR HONG KONG INVESTORS... 3 FUNDS AVAILABLE IN HONG KONG... 3 IMPORTANT INFORMATION... 3 DEFINITIONS... 4 HONG KONG REPRESENTATIVE... 4 INVESTMENT MANAGER... 4 INVESTMENT POLICY: GENERAL... 5 RISK CONSIDERATIONS... 5 DIVIDEND POLICY... 6 AVAILABLE UNITS IN HONG KONG... 6 SUBSCRIPTIONS, REDEMPTIONS AND CONVERSION OF UNITS BY HONG KONG INVESTORS... 8 CHARGES AND EXPENSES OVERVIEW OF RISK MANAGEMENT POLICIES AND PROCEDURES IN RELATION TO DERIVATIVES PROFILE OF A TYPICAL INVESTOR AVAILABILITY OF THE NET ASSET VALUE PER UNIT REPORT AND ACCOUNTS TAXATION IN HONG KONG OECD COMMON REPORTING STANDARD FOREIGN ACCOUNT TAX COMPLIANCE ACT KEY INVESTOR INFORMATION DOCUMENT DOCUMENTS AVAILABLE FOR INSPECTION OTHER INFORMATION

163 INFORMATION FOR HONG KONG INVESTORS Important - If you are in any doubt about the contents of this document or any of the documents accompanying it, you should consult your stockbroker, bank manager, solicitor, accountant or other independent professional financial adviser. This Hong Kong covering document (the Hong Kong Covering Document ) is supplemental to, forms part of and should be read in conjunction with the prospectus for Barings International Umbrella Fund (the Unit Trust ) dated 30 April 2018 as supplemented from time to time (the Prospectus ). Unless otherwise provided in this Hong Kong Covering Document, terms defined in the Prospectus have the same meaning in this Hong Kong Covering Document unless the context otherwise requires. The Directors of Baring International Fund Managers (Ireland) Limited (the Manager ), whose names appear under the heading Directors of the Manager in the Prospectus, accept responsibility for the information contained in the Prospectus and the Hong Kong Covering Document. To the best of the knowledge and belief of the Directors (who have taken all reasonable care to ensure such is the case) the information contained in the Prospectus and this Hong Kong Covering Document is in accordance with the facts and does not omit anything likely to affect the import of such information. The Directors accept responsibility accordingly. Barings International Umbrella Fund and the Funds set out below under the section headed Funds Available in Hong Kong have been authorised by the Securities and Futures Commission ( SFC ) in Hong Kong under Section 104 of the Securities and Futures Ordinance of Hong Kong ( SFO ) and are available for sale to the public in Hong Kong. The SFC s authorisation is not a recommendation or endorsement of a scheme nor does it guarantee the commercial merits of a scheme or its performance. It does not mean the scheme is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors. FUNDS AVAILABLE IN HONG KONG Warning: In relation to the Funds as set out in the Prospectus, only the following Funds are authorised by the SFC pursuant to Section 104 of the SFO and hence may be offered to the public of Hong Kong:- Barings ASEAN Frontiers Fund Barings Asia Growth Fund Barings Australia Fund Barings Europa Fund Barings Hong Kong China Fund Barings International Bond Fund The Prospectus is a global offering document and therefore contains references to the following collective investment schemes managed by the Manager which are not authorised by the SFC:- Barings Umbrella Fund plc Barings Alpha Funds plc Barings China A-Share Fund plc Barings Component Funds No offer shall be made to the public of Hong Kong in respect of the above unauthorised collective investment schemes. The issue of the Prospectus was authorised by the SFC only in relation to the offer of the above SFCauthorised Funds to the public of Hong Kong. Intermediaries should take note of this restriction. IMPORTANT INFORMATION In Hong Kong, distribution of the Prospectus and this Hong Kong Covering Document is not authorised unless accompanied by a copy of the then latest published annual report of the Unit Trust and, if 3

164 published after such annual report, a copy of the latest semi-annual report. Before investing you must have received and read the Product Key Facts Statement ( KFS ). Units in the Unit Trust are offered only on the basis of the information contained in the Prospectus, the relevant Supplement, this Hong Kong Covering Document, the relevant KFS, the most recent annual report and, if subsequently published, the semi-annual report of the Unit Trust. Neither the delivery of the Prospectus or the relevant Supplement or this Hong Kong Covering Document nor the issue of Units shall, under any circumstances, create any implication that the affairs of the Unit Trust have not changed since the respective dates of the documents or that the information contained therein is correct as of any time subsequent to the date of the relevant document. The websites and and other websites (if any) set out in this Hong Kong Covering Document and the Prospectus have not been reviewed by the SFC and may contain information relating to funds which are not authorised in Hong Kong and information which is not targeted at Hong Kong investors. DEFINITIONS Hong Kong Business Day Hong Kong Representative a day (other than a Saturday or Sunday) on which banks in Hong Kong are open for normal business, provided that where as a result of a number 8 typhoon signal, black rainstorm warning or other similar event, the period during which banks in Hong Kong are open on any day is reduced, such day shall not be a Hong Kong Business Day unless the Manager and the Depositary determine otherwise or such other day or days as the Manager and the Depositary may determine; Baring Asset Management (Asia) Limited. HONG KONG REPRESENTATIVE Baring Asset Management (Asia) Limited has been appointed by the Manager as the Hong Kong Representative to represent the Manager in Hong Kong generally in relation to the affairs of the Unit Trust. As part of its function as the Hong Kong representative, it may receive applications for Units from prospective investors in Hong Kong and its localities and deal with redemption and/or conversion requests and other enquiries from Unitholders. The fees of the Hong Kong Representative in relation to the Unit Trust will be borne by the Manager. Investors may contact the Hong Kong Representative if they have any complaints or enquiries in respect of the Unit Trust. Depending on the subject matter of the complaints or enquiries, these will be dealt with either by the Hong Kong Representative directly, or referred to the Manager/relevant parties for further handling. The Hong Kong Representative will, on a best effort basis, revert and address the investor s complaints and enquiries as soon as practicable. The contact details of the Hong Kong Representative are set out in the section headed Other Information below. INVESTMENT MANAGER Subject to the Central Bank and the SFC s approval, the Investment Manager may sub-delegate such investment management to other entities including group companies (group companies currently refers to Baring Asset Management Limited and Baring Asset Management (Asia) Limited). Prior approval from the SFC will be sought in relation to (i) any sub-delegation to entities within the group companies listed above; (ii) any change to the list of sub-delegates above; or (iii) any appointment or removal of subdelegates not being a group company. Except in the case of a sub-delegation to entities within the group companies listed above, one month s prior notice will be given to Unitholders. No prior notice would be given to Unitholders in respect of any sub-delegation to entities within the group companies listed above, however, details of such sub-delegation will be disclosed in the Fund s annual and semi-annual accounts and an up-to-date list of sub-delegates will be available free of charge upon request from the Hong Kong Representative. The fees and expenses of any sub-investment managers appointed by the Investment Manager will be discharged by the Investment Manager. Details of any sub-investment managers 4

165 appointed to a Fund will be provided to Unitholders upon request and details will also be provided in the periodic reports of the Unit Trust. INVESTMENT POLICY: GENERAL Unless otherwise specifically disclosed in the investment objectives and policies of a Fund, it is not intended that it will invest, whether directly or indirectly, more than 10% of its net assets in China A and China B shares. For so long as the Funds remain authorised under the SFO, upon satisfaction of applicable SFC requirements (if any) and providing at least one month's prior notice to investors a Fund may invest more than 10% of its net assets in China A and China B shares and the Prospectus and the Hong Kong Covering Document will be updated accordingly. The Funds do not currently use repurchase agreements, reverse repurchase agreements or engage in stocklending. In the event that a Fund does propose to utilise such techniques and instruments, Unitholders will be notified and the Hong Kong Covering Document and the Prospectus will be revised in accordance with the requirements of the Central Bank and the SFC. Due notification will be given to Unitholders and prior approval from the SFC (if required) will be sought if a Fund proposes to utilise such techniques and instruments in the future. Total Return Swaps To supplement the information relating to the use of total return swaps in the Prospectus, the Investment Manager anticipates that a Fund s exposure to total return swaps is likely to remain with the range specified in the table below: Fund Name Expected exposure calculated using the sum of the notionals as a % of the Net Asset Value of the Fund Expected maximum exposure calculated using the sum of the notionals as a % of the Net Asset Value of the Fund Barings ASEAN Frontiers Fund 0-10% 25% Barings Asia Growth Fund 0-10% 25% Barings Australia Fund 0-10% 25% Barings Europa Fund 0-10% 25% Barings Hong Kong China Fund 0-10% 25% Barings International Bond Fund 0-70% 100% RISK CONSIDERATIONS Investors should refer to the section headed Risk Considerations of the Prospectus and the following additional information in respect of the risks associated with investing in the Funds. Notwithstanding the statement in the section headed Risk Considerations in the Prospectus that The following Risk Considerations detail particular risks associated with an investment in the Unit Trust, which investors are encouraged to discuss with their professional advisers. It does not purport to be a comprehensive summary of all of the risks associated with an investment in the Unit Trust or an individual Fund.. To the best of the knowledge and belief of the Directors of the Manager, the Prospectus and the Hong Kong Covering Document contain explanations of the risks that may apply to the relevant Funds and that investors should be aware of as at the date of the Prospectus and the Hong Kong Covering Document. Investors should note that the Funds are exposed to various risks depending on their respective investment policies. Investors should be aware that in a changing environment the Funds may be exposed to risks that were not envisaged as at the date of the Prospectus and the Hong Kong Covering Document. Potential investors should consider the risks involved prior to investing in the Funds to determine whether an investment in the Fund is suitable to them. 5

166 Risk of investing in other collective investment schemes In addition to the risks set out under the risk factor headed Risk of investing in other collective investment schemes in the Prospectus, investors should note that the underlying collective investment schemes in which a Fund may invest may not be regulated by the SFC. Distribution out of unrealised capital gains The Manager may also distribute such part of any capital gains less realised and unrealised capital losses as, in its opinion, is appropriate to maintain a satisfactory level of distribution. Payment of distributions out of unrealised capital gains amount to distribution out of capital under Hong Kong regulatory disclosure requirements and that payment of distributions under such circumstances amounts to a return or withdrawal of part of an investor's original investment or from any capital gains attributable to that original investment. Any distributions involving payment of unrealised capital gains as dividends (which means effectively paying dividend out of capital) may result in an immediate reduction of the Fund s Net Asset Value per Unit. Distributions out of capital may have different tax implications to distributions of income and investors are encouraged to seek independent advice in this regard. DIVIDEND POLICY As stated in the Prospectus, the Trust Deed provides for the Depositary to distribute in respect of each accounting period not less than 85% of surplus net income represented by the dividends and interest received for each Fund to the holders of Units of the relevant class, after charging expenses and various other items, as set out under Charges and Expenses in the Prospectus, as are attributable to the income of that Fund. In addition, the Manager may distribute to the holders of Units of the relevant Fund or Class such part of any capital gains less realised and unrealised capital losses attributable to the relevant Fund or Class as, in its opinion, is appropriate to maintain a satisfactory level of distribution. Investors should note that payment of distributions out of unrealised capital gains amounts to distribution out of capital under Hong Kong regulatory disclosure requirements and that payment of distributions under such circumstances amounts to a return or withdrawal of part of an investor's original investment or from any capital gains attributable to that original investment. Any distributions involving payment of unrealised capital gains as dividends (which means effectively paying dividend out of capital) may result in an immediate reduction of that Fund's Net Asset Value per Unit. In such circumstances, distributions made during the lifetime of the relevant Fund must be understood as a type of capital reimbursement. The Funds may amend the above policy subject to obtaining the SFC's prior approval and by giving not less than one month's prior notice to affected Hong Kong investors. The composition of the dividends (i.e. the relative amounts paid out of net distributable income and capital) for the last 12 months can be obtained either through the Hong Kong Representative's website at or from the Hong Kong Representative on request. AVAILABLE UNITS IN HONG KONG As at the date of this Hong Kong Covering Document, Units of the following Funds which are being offered to the public of Hong Kong are set out below. Please refer to the Prospectus for further information relating to the Unit Classes. Barings ASEAN Frontiers Fund Class A AUD Hedged Acc Class A EUR Acc Class A EUR Inc Class A GBP Inc Class A USD Acc Class A USD Inc Class I EUR Acc Class I GBP Acc Class I USD Acc 6

167 Barings Asia Growth Fund Class A EUR Acc Class A EUR Inc Class A GBP Inc Class A USD Acc Class A USD Inc Class I EUR Acc Class I GBP Acc Class I USD Acc Barings Australia Fund Class A AUD Inc Class A EUR Acc Class A EUR Inc Class A GBP Inc Class A USD Inc Class I AUD Acc Class I EUR Acc Class I GBP Acc Class I USD Acc Barings Europa Fund Class A EUR Acc Class I EUR Acc Class C EUR Inc* Class A EUR Inc Class I GBP Inc Class C USD Inc* Class A USD Inc Class I USD Acc Barings Hong Kong China Fund Class A EUR Acc Class I EUR Acc Class C EUR Inc* Class A EUR Inc Class I GBP Acc Class C USD Inc* Class A GBP Inc Class I USD Acc Class A HKD Inc Class A USD Acc Class A USD Inc Barings International Bond Fund Class A EUR Inc Class A GBP Inc Class A USD Inc Class I EUR Acc Class I GBP Acc Class I GBP Inc Class I USD Acc * Class C Units will be available to certain distributors who have in place a placing agency or distribution arrangement with the Manager or its delegates. Class C Units shall also pay a distributor fee of 1% per annum of the Net Asset Value of the Fund attributable to the Classes. Such fee when applied will be payable to the distributor who has been appointed as a distributor pursuant to a placing agency agreement between the Manager or its delegate and the relevant distributor. The distributor fee shall be accrued daily and is payable quarterly in arrears. Other Classes of Units which are not mentioned above are not available to the public in Hong Kong. Accumulation Units are accumulating and will therefore not pay any distributions. Accumulation Units are identified by the reference Acc in the name of the Class. Under the Trust Deed the Manager is given the exclusive right to effect for the account of the Unit Trust the issue of Units of any Class and to create, subject to the requirements of the SFC (and other relevant authorities) (if any), new Classes and has absolute discretion to accept or reject in whole or in part any application for Units. 7

168 SUBSCRIPTIONS, REDEMPTIONS AND CONVERSION OF UNITS BY HONG KONG INVESTORS The below sets out the subscription, redemption and conversion procedures for Hong Kong investors. Full details of subscription, redemption and conversion procedures, all charges payable and other important information concerning the subscription, redemption and conversion of Units are set out in the Prospectus; and Hong Kong investors should read the relevant sections carefully in conjunction with this Hong Kong Covering Document. Investors should note that different distributor(s) may impose different dealing cut-off times before the dealing deadlines for receiving instructions for subscription, redemption and/or conversion and may have different dealing arrangements/procedures. Before placing your subscription, redemption and/or conversion orders, please check with your distributor for the distributor s internal dealing deadline (which may be earlier than the Fund s dealing deadline) and the distributor s dealing arrangements/procedures. Application Procedures Initial subscriptions should be made on the Application Form together with the supporting documents in relation to anti-money laundering requirements and the originals submitted to the Hong Kong Representative by 5 p.m. Hong Kong time for onward transmission to the Manager c/o the Administrator on a Dealing Day. Subsequent subscriptions may be made in writing by submitting the signed originals to the Hong Kong Representative for onward transmission to the Manager c/o the Administrator or directly to the Manager c/o the Administrator. Subsequent subscriptions may also be made in writing and submitted by facsimile directly to the Manager c/o the Administrator. In addition, Hong Kong investors can, with the agreement of the Manager or the Hong Kong Representative, submit the subscription applications via electronic messaging services such as EMX or SWIFT, or via other means as agreed by the Manager or the Hong Kong Representative from time to time. The Application Form and forms for subsequent subscription applications may be obtained from the Hong Kong Representative. Units of each Class may be issued with effect from each Dealing Day pursuant to applications received by the Hong Kong Representative by 5 p.m. Hong Kong time or received by the Manager by 12 noon Irish time on that Dealing Day. The dealing price at which Units will be issued, after the initial issue, is calculated by reference to the Net Asset Value per Unit determined as at the Valuation Point on that Dealing Day. Applications received by the Manager after 12 noon Irish time on a Dealing Day will be treated as having been received on the following Dealing Day. Notwithstanding the aforesaid, any subscription applications received by the Hong Kong Representative after 5 p.m. Hong Kong time on a Hong Kong Business Day or treated as having been received by the Hong Kong Representative on a Dealing Day which is not a Hong Kong Business Day will be deemed to have been received by the Hong Kong Representative on the next Hong Kong Business Day that is also a Dealing Day. If any of the details that are provided in respect of an application for Units change, including your address, other contact details (e.g. telephone number, address) or bank account details, please inform the Hong Kong Representative or the Administrator immediately by letter. Failure to do so may cause a delay in processing any subsequent orders. No money should be paid to any intermediary in Hong Kong who is not licensed or registered to carry on Type 1 (dealing in securities) regulated activities under Part V of the Securities and Futures Ordinance. Payment is normally due in the currency of the relevant Class of the relevant Fund. Should investors prefer to make payment in any currency other than the currency of the relevant Class they are advised to make direct contact with the Hong Kong Representative or with the Manager c/o the Administrator. As provided in the section headed Subscriptions of Units in the Prospectus, the calculation of the Net Asset Value per Unit may be suspended when the right of Unitholders to require the redemption of Units is suspended as detailed in section headed Redemption of Units in the Prospectus and in the section headed Redemption of Units of this document. Any such suspension will be notified to the SFC without delay and where possible all reasonable steps will be taken to bring any period of suspension to an end as soon as possible. 8

169 Please refer to the Prospectus for further details relating to the application of Units. Redemption of Units Redemption requests may be made in writing by submitting the signed originals to the Hong Kong Representative for onward transmission to the Manager c/o the Administrator or directly to the Manager c/o the Administrator. Redemption requests may also be made in writing and submitted by facsimile directly to the Manager c/o the Administrator. In addition Hong Kong investors can, with the agreement of the Manager or the Hong Kong Representative, submit the redemption applications via electronic messaging services such as EMX or SWIFT, or via other means as agreed by the Manager or the Hong Kong Representative from time to time. No redemption payments shall be made until the original subscription Application Form (and upon completion of any applicable identification procedures in relation to the Unitholder pursuant to any statutory and regulatory obligation from time to time) has been received by the Hong Kong Representative for onward transmission to the Manager c/o the Administrator. The redemption form may be obtained from the Hong Kong Representative. Applications for the redemption of Units received by the Hong Kong Representative prior to 5 p.m. Hong Kong time or received by the Manager prior to 12 noon Irish time on a Dealing Day will, subject as mentioned in the section headed Redemption of Units in the Prospectus, be dealt with by reference to the Net Asset Value per Unit determined as at the Valuation Point on that Dealing Day. Redemption applications received by the Manager after 12 noon Irish time will be treated as having been received on the following Dealing Day. Notwithstanding the aforesaid, any redemption applications received by the Hong Kong Representative after 5 p.m. Hong Kong time on a Hong Kong Business Day or treated as having been received by the Hong Kong Representative on a Dealing Day which is not a Hong Kong Business Day will be deemed to have been received by the Hong Kong Representative on the next Hong Kong Business Day that is also a Dealing Day. Arrangements can be made for Unitholders wishing to redeem their Units to receive payment in currencies other than the currency of the relevant Class of Unit. In such circumstances the Unitholder is advised to make direct contact with the Hong Kong Representative or Manager c/o the Administrator in order to facilitate payment. The cost of currency conversion and other administrative expenses, including electronic transfers, may be charged to the Unitholder. Partial redemptions of holdings are permitted provided that this will not result in the Unitholder holding an amount which is less than the Minimum Holding. Temporary Suspension of Redemptions As provided in the Prospectus, the calculation of the Net Asset Value per Unit may be suspended when the right of Unitholders to require the redemption of Units is suspended as detailed in section headed Redemption of Units in the Prospectus. Any such suspension will be notified to the SFC without delay and where possible all reasonable steps will be taken to bring any period of suspension to an end as soon as possible. In addition, the fact that dealing has been suspended will be published immediately and thereafter at least once a month during the period of suspension in an appropriate manner (including via the Manager s website In Specie Redemption As provided in the Prospectus, the Manager has the discretion to satisfy the redemption request by a distribution of investments in specie. For so long as a Fund is authorised by the SFC, a redemption in specie will only be effected with the prior approval of the redeeming Unitholder. Please refer to the Prospectus for further details relating to the redemption of Units. Conversion of Units Unitholders will be able to apply to convert on any Dealing Day all or part of their holding of Units of any Class (the Original Class ) into Units of another Class of the same Fund or in another Fund, which are 9

170 being offered at that time (the New Class ). Conversion applications may be made in writing by submitting the signed originals to the Hong Kong Representative for onward transmission to the Manager c/o the Administrator or directly to the Manager c/o the Administrator. Conversion requests may also be made in writing and submitted by facsimile directly to the Manager c/o the Administrator. In addition, Hong Kong investors can, with the agreement of the Manager or the Hong Kong Representative, submit the conversion applications via electronic messaging services such as EMX or SWIFT, or via other means as agreed by the Manager or the Hong Kong Representative from time to time. The general provisions and procedures relating to redemption set out above and in the Prospectus will apply equally to conversions. The conversion form may be obtained from the Hong Kong Representative. No conversion will be made, however, if it would result in the Unitholder holding a number of Units of either the Original Class or the New Class of a value which is less than the Minimum Holding for the relevant Class. Please refer to the Prospectus for further details relating to the conversion of Units. CHARGES AND EXPENSES Details of the fees and expenses relating to the Unit Trust are set out in the section headed Charges and Expenses in the Prospectus. The attention of prospective investors is in particular drawn to the information relating to fees and expenses set out therein. In respect of the sub-section headed Administration, Depositary and Operating Fee under the section headed Charges and Expenses in the Prospectus, it is provided that the Manager will pay the aggregate fees and expenses of the Administrator and Depositary, in addition to certain other fees and ongoing expenses. In addition to such other fees and ongoing expenses currently stated in the Prospectus, costs of printing, preparing and distributing the KFS of such Funds which are authorised by the SFC will also be included. Any increase in the rate of Administration, Depositary and Operating Fee will require Unitholders approval. Any increase in the rate of Management Fee will require Unitholders approval by way of Special Resolution. The Manager is entitled to add to the Net Asset Value per Unit for its own account, a charge sufficient to cover amounts paid by them on account of stamp duties and taxation in respect of the issue of Units and may also add a charge (not exceeding 1% of the Net Asset Value per Unit) for the account of the relevant Fund in respect of fiscal and purchase charges. It is not, however, the intention of the Manager to make any such additions in normal circumstances. Should this policy change, the Unitholders will be given at least one month s prior written notice of the intention to impose such charge. It is currently not the intention of the Manager to charge a Redemption Charge in normal circumstances, other than in respect of the Class C Units for which a charge of 1% of the Net Asset Value attributable to the Class C Unit may be applied at the discretion of the Manager or its delegate. Should this policy change, the Unitholders will be given at least one month s prior written notice of the intention to charge or increase the Redemption Charge up to the specified permitted maximum as set out in the Prospectus. For so long as the Unit Trust and the Funds are authorised in Hong Kong, no sales commissions, advertising or promotional expenses shall be charged to such Fund. OVERVIEW OF RISK MANAGEMENT POLICIES AND PROCEDURES IN RELATION TO DERIVATIVES The following sections provide a summary of the risk management policy and procedures concerning the Funds investment in derivatives. Further information in relation to such policies and procedures (including the quantitative limits that are applied and any recent developments in the risk and yield characteristics of the main categories of investments of the Funds) is available from the Hong Kong Representative on request. 10

171 Overview The Manager has delegated the investment management of each Fund to the Investment Manager who will also carry out the permanent risk management function on behalf of the Funds. As the Board of Directors of the Manager remain responsible for these delegated responsibilities, the Manager take all reasonable measures to ensure that these delegate duties are carried out in compliance with applicable rules and guidelines and are appropriately monitored and measured. The Investment Manager monitors, measures and manages the investment in and use of derivatives by the Funds having regard to the Manager s internal risk management policies and procedures. Each Fund has a number of specific risks. The risks associated with each Fund are monitored and reviewed on the following levels and reported to the Board of the Manager: By the individual investment teams against their own strategies and limits and via departmental risk reviews. By the Operational Compliance Unit ( OCU ). The OCU (within Investment Operations) uses Barings automated guideline management systems, Bloomberg AIM and thinkfolio Compliance, to evaluate proposed transactions on a pre-trade basis and produces a daily post-trade compliance report on Fund positions. Rejected trades must be cleared through OCU prior to execution. By compliance monitoring to ensure appropriate controls are in place to ensure Funds are meeting all regulatory requirements. Within Barings, there are committees and business areas whose responsibilities involve identifying, measuring and managing the risk relevant to the Funds. Reporting lines for the committees are below. Controls and Systems Used to Manage Derivatives Risk The individual investment teams are responsible for investing and managing the assets of the Funds, and work with Investment Risk team to take into consideration the risk of the assets as well as the overall risk characteristics of the Funds. The Investment Risk team is responsible for the assessment of risk and the development and maintenance of the methods and procedures necessary to measure risk. The Investment Risk team oversees the market risk of funds through the use of industry standard metrics such as tracking error, beta and stress analysis supplemented by internal investment guidelines (IIGs) 11

172 monitoring where appropriate. Daily risk dashboards are monitored each morning by Investment Risk team using the previous day s closing Fund and benchmark positions. If any exceptions are identified against any of the prescribed limits, they are validated by the Investment Risk team and then communicated to the relevant stakeholders (such as OCU) for resolution. The following methodologies will be used for risk measurement and monitoring of exposures (internal and where applicable regulatory limits have been set for these methodologies and exposures): Value at Risk; Leverage; Tracking Error; and OTC Counterparty exposure. For Funds using the commitment approach to calculate global exposure (see Prospectus), the Investment Manager calculate and monitor leverage using both the commitment approach and sum of notional methodologies on a daily basis. The Investment Manager will use back testing to assess the accuracy and quality of the VaR model by comparing the model generated VaR measures that it produced over time, versus actual observed gains and losses. The back testing program will be performed on a monthly basis using the clean back testing approach. The OCU (within Investment Operations) uses Barings automated guideline management systems, Bloomberg AIM and thinkfolio Compliance, to evaluate proposed transactions on a pre-trade basis and produces a daily post-trade compliance report on Fund positions. Rejected trades must be cleared through OCU prior to execution. The systems also generate daily exceptions reports relative to market movement identifying positions which have exceeded regulatory limits and/or investment restriction limits set out in the Funds Prospectuses. All exceptions are reviewed by the relevant investment team and OCU to achieve an appropriate and timely resolution. Where necessary exceptions on complex rules are escalated to the Fund s Depositary to ensure appropriate application of regulatory rules and regulations and fund data. Below are the key systems which provide risk monitoring and compliance and reporting: For Value at Risk and stress test reporting MSCI RiskMetrics is used. For the calculation of tracking error in equity based funds the risk model data and the analysis software is provided by MSCI or Axioma. For fixed income funds the calculation of tracking error and percentage contribution to tracking error the proprietary model developed by MSCI is used. For multi asset funds the Value at Risk of the funds is assessed using analysis from RiskMetrics. PROFILE OF A TYPICAL INVESTOR Regarding the Profile of a Typical Investor section in respect of each of the Supplements, investors should note that such information is provided for reference only. In particular, the reference to the typical minimum time horizon is not made based on the Manager s assessment of the risk profile, risk tolerance, investment objective and/or investment horizon of a typical Hong Kong investor nor does it take into account specific circumstances relevant to Hong Kong investors (whether generally or in a particular case). As such, Hong Kong investors should not rely on such reference when making investment decisions. Before making any investment decisions, investors should consider their own specific circumstances, including, without limitations, their own risk tolerance level, financial circumstances, and 12

173 investment objectives. If in doubt, investors should consult their stockbrokers, bank managers, solicitors, accountants, representative banks or other financial advisers. AVAILABILITY OF THE NET ASSET VALUE PER UNIT Except where the redemption of Units of a Fund has been suspended, in the circumstances described in the Prospectus, the Net Asset Value per Unit of each Class shall be available on the Barings website at or any appropriate manner and will be updated on each Dealing Day. Such prices can also be ascertained from the offices of the Hong Kong Representative. REPORT AND ACCOUNTS The audited accounts and a report on the Unit Trust and the unaudited semi-annual report will be available in English only. The Manager will notify Unitholders where the annual report and audited accounts can be obtained (in printed and electronic forms), and where the unaudited semi-annual accounts can be obtained (in printed and electronic forms) within the timeframe set out in the section headed Report and Accounts in the Prospectus. Once issued, copies of the latest annual and semi-annual accounts may also be obtained at the office of the Manager, Investment Manager and the Hong Kong Representative. TAXATION IN HONG KONG The following is a summary of certain Hong Kong tax consequences of the purchase, ownership and disposal of Units. The summary of Hong Kong taxation is of a general nature, is for information purposes only, and is not intended to be an exhaustive list of all of the tax considerations that may be relevant to a decision to purchase, own, redeem or otherwise dispose of the Units. Potential investors in Units should consult their own advisors as to the Hong Kong or other tax consequences of the purchase, ownership and disposal of Units. During such period as the Unit Trust is authorised by the SFC then, under present Hong Kong law and practice: (a) The Unit Trust is not expected to be subject to Hong Kong tax in respect of any of its authorised activities; (b) No tax will be payable by Unitholders in Hong Kong in respect of any capital gains arising on a sale, redemption or other disposal of Units in the Unit Trust, except that Hong Kong profits tax may arise where such transactions form part of a trade, profession or business carried on in Hong Kong; and (c) No tax should generally be payable by Unitholders in Hong Kong in respect of dividends or other income distributions of the Unit Trust. OECD COMMON REPORTING STANDARD The Inland Revenue (Amendment) (No.3) Ordinance (the Ordinance ) came into force on 30 June This is the legislative framework for the implementation in Hong Kong of the Standard for Automatic Exchange of Financial Account Information ( AEOI ). The AEOI requires financial institutions ( FI ) in Hong Kong to collect information relating to non-hong Kong tax residents holding accounts with FIs, and to file such information with the Hong Kong Inland Revenue Department ( IRD ) who in turn will exchange such information with the jurisdiction(s) in which that account holder is resident. Generally, tax information will be exchanged only with jurisdictions with which Hong Kong has a Competent Authority Agreement ( CAA ); however, FIs may further collect information relating to residents of other jurisdictions. By investing in the Unit Trust or the relevant Fund and/or continuing to invest in the Unit Trust or the relevant Fund through FIs in Hong Kong, investors acknowledge that they may be required to provide additional information to the relevant FI in order for the relevant FI to comply with AEOI. The investor s information (and information on beneficial owners, beneficiaries, direct or indirect shareholders or other persons associated with such Unitholders that are not natural persons), may be communicated by the IRD to authorities in other jurisdictions. 13

174 Each Unitholder and prospective investor should consult its own professional advisor(s) on the administrative and substantive implications of AEOI on its current or proposed investment in the Unit Trust through FIs in Hong Kong. FOREIGN ACCOUNT TAX COMPLIANCE ACT As at the date of this Hong Kong Covering Document, Baring Asset Management Limited, the Investment Manager, has registered as a sponsoring entity and agreed to perform, on behalf of the sponsored investment entities (including the Unit Trust and/or its Funds), all due diligence, reporting and other relevant FATCA requirements. The Investment Manager has a GIIN of HU7DQI SP.826. The Unit Trust and/or each Fund will be classified as a sponsored investment entity and will be a non-reporting financial institution treated as a registered deemed-compliant foreign financial institution. KEY INVESTOR INFORMATION DOCUMENT Notwithstanding the references to the Key Investor Information Document or KIID in the Prospectus, the Key Investor Information Document is not intended to be, and shall not in any event be interpreted as, an offering document of the Unit Trust in Hong Kong and is not distributed to investors in Hong Kong. DOCUMENTS AVAILABLE FOR INSPECTION Copies of the following documents may be obtained or inspected free of charge at the offices of the Hong Kong Representative set out below: the Trust Deed (as amended) the Administrator Agreement the Investment Management Agreement the agreement between the Hong Kong Representative and the Manager the latest annual and half yearly reports and accounts (the annual and half yearly reports are available in English only) Investors may also contact the Hong Kong Representative for information on the risk management of the Funds, the Investment Manager s Best Execution Policy, the Investment Manager s Proxy Voting Policy, Remuneration Policy, and up-to-date information on the Depositary s list of delegates and sub-delegates and any conflicts of interest that may arise from such delegation. OTHER INFORMATION Hong Kong Representative Baring Asset Management (Asia) Limited Registered address: Room 3401, & 35/F Gloucester Tower 15 Queen s Road Central Hong Kong Business address and contact details: Directors of the Manager Peter Clark James Cleary David Conway Barbara Healy Timothy Schulze Julian Swayne c/o Baring International Fund Managers (Ireland) Limited, 70 Sir John Rogerson s Quay Dublin 2, Ireland 35th Floor, Gloucester Tower 15 Queen s Road Central Hong Kong Telephone: Facsimile:

175 Legal Advisers as to matters of Hong Kong law Deacons 5 th Floor Alexandra House 18 Chater Road Central Hong Kong 15

176 PROSPECTUS Barings International Umbrella Fund (an umbrella fund constituted as a unit trust established pursuant to the Unit Trusts Act, 1990, and authorised by the Central Bank of Ireland pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (as amended)) The Directors of the Manager, whose names appear under the heading Directors of the Manager in the Directory section, accept responsibility for the information contained in this Prospectus. To the best of the knowledge and belief of the Directors (who have taken all reasonable care to ensure such is the case) the information contained in this Prospectus is in accordance with the facts and does not omit anything likely to affect the import of such information. The Directors accept responsibility accordingly. 1

177 Important Information If you are in any doubt about the contents of this Prospectus, you should consult your stockbroker, bank manager, solicitor, accountant or other financial adviser. Authorisation by the Central Bank of Ireland The Unit Trust has been authorised by the Central Bank of Ireland (the Central Bank ) as an Undertaking for Collective Investment in Transferable Securities ( UCITS ) under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 as amended ( UCITS Regulations ) and has been constituted as a unit trust and will comply with the Central Bank UCITS Regulations. Authorisation by the Central Bank does not constitute a warranty by the Central Bank as to the performance of the Funds and the Central Bank shall not be liable for the performance or default of the Funds. Authorisation by the Central Bank is not an endorsement or guarantee of the Unit Trust nor is the Central Bank responsible for the contents of this Prospectus. This Prospectus (which term shall include a reference to any Supplement herein or hereto) provides information about the Unit Trust and the Funds. Prospective investors are required as part of the Application Form to confirm they have read and understood it. It contains information which prospective investors ought to know before investing in the Unit Trust and should be retained for future reference. Further copies may be obtained from the Manager or from a distributor. Copies of the most recent annual report of the Unit Trust are available free of charge on request. Units in the Unit Trust are offered only on the basis of the information contained in this Prospectus, the relevant Supplement, the Key Investor Information Document, the most recent annual report and, if subsequently published, the semi-annual report of the Unit Trust. Any further information or representations given or made by any dealer, broker or other person should be disregarded and, accordingly, should not be relied upon. No person has been authorised to give any information or to make any representation other than those contained in the Key Investor Information Document, this Prospectus, each relevant Supplement, the most recent annual report and, if subsequently published, the semi-annual report of the Unit Trust and, if given or made, such information or representation must not be relied upon as having been authorised. This Prospectus does not constitute an offer to sell or the solicitation of an offer to buy any such Units other than the Units to which it relates or an offer to sell or the solicitation of an offer to buy such Units by any person in any circumstances in which such offer or solicitation is unlawful. Neither the delivery of this Prospectus or the relevant Supplements nor the issue of Units shall, under any circumstances, create any implication that the affairs of the Unit Trust have not changed since the date hereof or that the information contained herein is correct as of any time subsequent to this date. The Directors have taken reasonable care to ensure that the facts stated herein are true and accurate in all material respects and that there are no other material facts the omission of which makes misleading any statement herein, whether of fact or opinion. The Directors accept responsibility accordingly. This Prospectus and any Supplements may be translated into other languages. Any such translation shall only contain the same information and have the same meaning as the English language Prospectus and Supplements. To the extent that there is any inconsistency between the English language Prospectus and Supplements and the Prospectus/Supplements in another language, the English language Prospectus/Supplements will prevail, except to the extent (but only to the extent) required by the laws of any jurisdiction including the regulations or requirements of the financial regulator of such jurisdiction where the Units are sold, that in any action based upon disclosure in the Prospectus/Supplement in a language other than English, the language of the Prospectus/Supplement on which such action is based shall prevail. The Unit Trust is an "umbrella fund" enabling investors to choose between one or more investment objectives by investing in one or more separate trust funds (a Fund ) offered by the Unit Trust. Under the Trust Deed, the assets and liabilities attributable to each Fund established by the Unit Trust, will be segregated by the Depositary. A separate pool of assets will not be maintained for each Class. As of the date of this Prospectus, the Unit Trust is offering Units in the Funds described in the most recent Supplements in force at the date of this Prospectus. The Directors may from time to time decide to offer, with the prior approval of the Central Bank, additional separate Funds and, with prior notice to and clearance from the Central Bank, additional Classes in existing Fund(s). In such an event, this Prospectus will be updated and amended so as to include detailed information on the new Funds and/or Classes, and/or a separate Supplement or addendum with respect to such Funds and/or Classes will be prepared. Such updated and amended Prospectus or new separate Supplement or addendum will not be circulated to existing Unitholders except in connection with their subscription for Units of such Funds. Investors may, subject to applicable law, invest in any Fund offered by the Unit Trust. Investors should choose the Fund that best suits their specific risk and return expectations as well as their diversification needs and are encouraged to seek independent advice in that regard. A separate pool of assets will be maintained for each Fund and will be invested in accordance with the investment policy applicable to the relevant Fund in seeking to achieve its investment objective. The Net Asset Value and the performance of the Units of the different Funds and Class thereof are expected to differ. It should be remembered that the price of Units and the income (if any) from them may fall as well as rise and there is no guarantee or assurance that the stated investment objective of a Fund will be achieved. Investors should note that, if 2

178 specified in a Fund s Supplement as applicable, a Redemption Charge of up to 1% of the Net Asset Value of the Units being redeemed may be chargeable in respect of that Fund. Unitholders should note that some or all of the dividends, management fees and other fees and expenses of a Fund may be paid from capital where there is insufficient income available. Thus, on redemption of holdings, Unitholders may not receive back the full amount invested. The policy of paying dividends from, or charging fees and expenses to capital will also have the effect of lowering the capital value of your investment and constraining the potential for future capital growth. 3

179 GENERAL NOTICE Potential subscribers of Units should inform themselves as to (a) the possible tax consequences, (b) the legal requirements and (c) any foreign exchange restrictions or exchange control requirements which they might encounter under the laws of the countries of their citizenship, residence or domicile and which might be relevant to the subscription, holding or disposal of Units. Potential subscriber s attention is drawn to the risk factors described under the heading Risk Considerations within the Prospectus. EACH PURCHASER OF UNITS MUST COMPLY WITH ALL APPLICABLE LAWS AND REGULATIONS IN FORCE IN EACH JURISDICTION IN WHICH IT PURCHASES, OFFERS OR SELLS SUCH UNITS OR POSSESSES OR DISTRIBUTES THE PROSPECTUS AND MUST OBTAIN ANY CONSENT, APPROVAL OR PERMISSION REQUIRED FOR THE PURCHASE, OFFER OR SALE BY IT OF UNITS UNDER THE LAWS AND REGULATIONS IN FORCE IN ANY JURISDICTIONS TO WHICH IT IS SUBJECT OR IN WHICH IT MAKES SUCH PURCHASES, OFFERS OR SALES, AND NONE OF THE UNIT TRUSTS, THE MANAGER, THE INVESTMENT MANAGER (OR ANY OF ITS AFFILIATES), THE DEPOSITARY OR THE ADMINISTRATOR SPECIFIED HEREIN SHALL HAVE ANY RESPONSIBILITY THEREFOR. US Units have not been registered under the United States Securities Act of 1933 (as amended) and may not be directly or indirectly offered or sold in the United States or to any United States Person. JAPAN The Units have not been and will not be registered under the Financial Instruments and Exchange Law of Japan, and, accordingly, no Units may be offered or sold, directly or indirectly, in Japan or to, or for the benefit of, any Japanese person or to others for re-offering or resale, directly or indirectly, in Japan or to any Japanese person except under circumstances which will result in compliance with all applicable laws, regulations and guidelines promulgated by the relevant Japanese governmental and regulatory authorities and in effect at the relevant time. For this purpose, Japanese person means any person resident in Japan, including any corporation or other entity organised under the laws of Japan. UK The Unit Trust is a recognised collective investment scheme for the purposes of the Financial Services and Markets Act 2000 (the FSMA ) of the United Kingdom. This Prospectus will be distributed in the United Kingdom by or on behalf of the Manager and is approved by Baring Asset Management Limited (the Investment Manager ), which is authorised and regulated by the Financial Conduct Authority ( FCA ) for the purposes of the Financial Services and Markets Act 2000 (FSMA). 4

180 Directory MANAGER Baring International Fund Managers (Ireland) Limited Registered Office: 70 Sir John Rogerson s Quay Dublin 2 Ireland DIRECTORS OF THE MANAGER Peter Clark James Cleary David Conway Barbara Healy Timothy Schulze Julian Swayne INVESTMENT MANAGER Baring Asset Management Limited 155 Bishopsgate London EC2M 3XY UK DEPOSITARY Northern Trust Fiduciary Services (Ireland) Limited Georges Court Townsend Street Dublin 2 Ireland ADMINISTRATOR Northern Trust International Fund Administration Services (Ireland) Limited Georges Court Townsend Street Dublin 2 Ireland LEGAL ADVISERS IRISH LAW Matheson 70 Sir John Rogerson s Quay Dublin 2 Ireland AUDITORS PricewaterhouseCoopers Chartered Accountants One Spencer Dock North Wall Quay Dublin 1 Ireland SPONSORING BROKERS Matheson 70 Sir John Rogerson s Quay Dublin 2 Ireland Please refer to the section Manager, Investment Manager, Depositary and Administrator within this Prospectus for more details. 5

181 Table of Contents Definitions... 7 Introduction Allocation of Assets and Liabilities Investment Policy: General Risk Considerations Borrowings Charges and Expenses Administration of the Unit Trust Determination of Net Asset Value Dividend Policy Application Procedure Subscriptions of Units Collection Account Redemption of Units Qualified Unitholders and Total Redemption Transfer of Units Conversion of Units Manager, Investment Manager, Depositary and Administrator Report and Accounts Taxation Meetings of Unitholders Duration of the Unit Trust General Information Proxy Voting Policies and Procedures Best Execution Inducements Documents Available for Inspection Appendix I - Investment Restrictions Appendix II - Eligible Securities & Derivatives Markets Appendix III - Efficient Portfolio Management Barings ASEAN Frontiers Fund Barings Asia Growth Fund Barings Australia Fund Barings Europa Fund Barings Hong Kong China Fund Barings International Bond Fund

182 Definitions Accounting Date Accounting Period Act Administrator Administrator Agreement Application Form AUD, Australian Dollar Base Currency Business Day Central Bank Central Bank UCITS Regulations Class, Classes Class Currency Collection Account Data Protection Legislation Dealing Day 30 April of each year by reference to which annual accounts for the Unit Trust are prepared or such other date as the Manager may from time to time decide. a period ending on an Accounting Date and commencing on the day following expiry of the last Accounting Period. Unit Trusts Act, 1990 or any amendment thereto for the time being in force. Northern Trust International Fund Administration Services (Ireland) Limited or any other person or persons for the time being duly appointed by the Manager as administrator of the Unit Trust in succession thereto with the prior approval of the Central Bank. the Amended and Restated Administration Services Agreement made between the Manager, the Depositary and the Administrator dated 1 July 2011, as may be amended or Supplemented from time to time. any application form to be completed by investors as prescribed by the Manager from time to time. the currency of Australia. the currency of account of a Fund as specified in the Prospectus. in relation to a Fund any day other than Saturday or Sunday on which banks in both Ireland and the UK are open for business, or as otherwise specified in the supplement for the relevant Fund. the Central Bank of Ireland. the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1) (Undertakings for Collective Investment in Transferable Securities)) Regulations 2015 as may be amended, constituted or substituted from time to time and any notices or guidance issued by the Central Bank pursuant thereto for the time being in force. a particular division of Units in a Fund. the currency in which a Class is designated. the account operated by the Administrator into which all subscription monies are received and from which all redemption and distribution proceeds are paid as described under the heading Collection Account. (i) the Data Protection Acts 1988 and 2003 or any other legislation or regulations implementing Directive 95/46/EC, (ii) the European Communities (Electronic Communications Networks and Services) (Privacy and Electronic Communications) Regulations 2011, (iii) on and with effect from 25 May 2018, the General Data Protection Regulation (Regulation (EU) 2016/679 of the European Parliament and the Council of 27 April 2016) and any consequential national data protection legislation and (iv) any guidance and/or codes of practice issued by the Irish Data Protection Commissioner or other relevant supervisory authority, including without limitation the European Data Protection Board. (i) each Business Day (unless the determination of the Net Asset Value of the Fund has been suspended for the reasons specified in the Prospectus and provided that if the day is a Business Day other than one which is as defined in the relevant Supplement, the Manager will provide advance notice of this fact to all Unitholders in the Fund), or (ii) any other day which the Manager may, with the approval of the Depositary, have determined, subject to advance notice to all Unitholders in the Fund and provided there is at least one Dealing Day per fortnight. Declaration Depositary a valid declaration in a form prescribed by the Irish Revenue Commissioners for the purposes of Section 739D of the Taxes Act. Northern Trust Fiduciary Services (Ireland) Limited or any other person or persons for the time being duly appointed as depositary of the Unit Trust in succession thereto with the prior approval of the Central Bank. 7

183 Directors EMIR ESMA Guidelines Euro,, EUR European Economic Area (EEA) Exempt Investor Extraordinary Resolution FCA FSMA Fund or Funds" Global Exchange Market Hedged Class HMRC HKD, Hong Kong Dollar Intermediary the directors of the Manager or any duly authorised committee or delegate thereof. European Market Infrastructure Regulation on derivatives, central counterparties and trade repositories which imposes requirements on all types and sizes of entities that enter into any form of derivative contract, including those not involved in financial services and also establishes common organisational, conduct of business and prudential standards for central counterparties (CCPs) and trade repositories. the European Securities and Markets Authority s Final report - Guidelines on sound remuneration policies under the UCITS Directive and AIFMD (ESMA/2016/411). the currency of certain member states of the European Union. the EU Member States (Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, the Netherlands and the United Kingdom) together with Iceland, Liechtenstein and Norway and such other states which may join the EEA from time to time. Irish Residents who are permitted (whether by legislation or by express concession of the Irish Revenue Commissioners to hold Units in the Unit Trust without requiring the Unit Trust to deduct or account for Irish tax as more fully described in the section of the Prospectus entitled Taxation ; a resolution proposed as such and passed as such by a majority consisting of 75 per cent, or more of the total number of votes cast for and against such resolution, of a meeting of Unitholders or, as the case may require, Unitholders of a particular Class, duly convened and held in accordance with the provisions contained in the Trust Deed. the Financial Conduct Authority of the United Kingdom. the Financial Services and Markets Act, 2000 of the United Kingdom. a sub-fund of the Unit Trust representing the designation by the Manager of a particular Class or Classes as a sub-fund the proceeds of issue of which are pooled separately and invested in accordance with the investment objective and policies applicable to such sub-fund and which is established by the Manager from time to time with the approval of the Central Bank. the global exchange market of the Irish Stock Exchange. the relevant Classes which have been indicated as hedged classes in the relevant Supplement and in respect of which currency hedging will be implemented; Her Majesty s Revenue & Customs in the United Kingdom. the currency of Hong Kong. a person who: (a) carries on a business which consists of, or includes, the receipt of payments from an investment undertaking on behalf of other persons; or (b) holds units in an investment undertaking on behalf of other persons. Investment Management Agreement the amended and restated investment management agreement dated 21 July 2015 between the Manager and Baring Asset Management Limited. Investment Manager Investor Money Regulations Ireland Baring Asset Management Limited or any other person or persons for the time being duly appointed as investment manager of the Unit Trust in succession thereto in accordance with the requirements of the Central Bank. the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) Investor Money Regulations 2015 for Fund Service Providers. the Republic of Ireland. 8

184 Irish Resident Irish Revenue Commissioners Irish Stock Exchange Manager Member State Minimum Investment Minimum Holding Money Market Instruments unless otherwise determined by the Manager, any company resident, or other person resident or ordinarily resident, in Ireland for the purposes of Irish tax. Please see the Taxation section below. the Irish authority responsible for taxation and customs duties. the Irish Stock Exchange plc and any successor hereto. Baring International Fund Managers (Ireland) Limited or any other person or persons for the time being duly appointed as manager of the Unit Trust in succession thereto in accordance with the requirements of the Central Bank. a member state of the European Union. such amount in respect of initial and/or subsequent subscriptions as may be specified in the Prospectus or as the Manager may determine and notify to investors. the minimum number or value of Units which must be held by Unitholders as specified in the Prospectus. instruments normally dealt in on the money market which are liquid and have a value which can be accurately determined at any time. Examples of such Money Market Instruments include certificates, deposits and listed short-term fixed and floating rate securities (including government and corporate notes and bonds). Net Asset Value, NAV the net asset value of a Fund or a relevant Class, as the case may be, determined in accordance with the principles set out in the section Determination of Net Asset Value within this Prospectus. OECD Official List Ordinary Resolution PRC Preliminary Charge Privacy Statement Prospectus QFII Regulations Redemption Charge Recognised Exchange Regulations Renminbi, RMB RQFII the Organisation for Economic Co-operation and Development. The thirty-five following countries are members of the OECD as of the date of this Prospectus: Australia, Austria, Belgium, Canada, Chile, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Latvia Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. the list of securities or shares admitted to the official list and trading on the Global Exchange Market of the Irish Stock Exchange and published daily. a resolution proposed as such at a meeting of Unitholders of the Unit Trust, a Fund or, as the case may require, Unitholders of a particular Class convened and held in accordance with the provisions of the Trust Deed and passed as such at such meeting by a simple majority of the total number of votes cast for and against such resolution. the People s Republic of China. a fee charged on subscriptions as specified in the Prospectus or such higher amount as may be approved by an Extraordinary Resolution. the privacy statement adopted by the Manager in respect of the Unit Trust, as amended from time to time. The current version will be appended to the Application Form and available via the website from 25 May 2018 onwards. this document as may be amended, supplemented or modified from time to time. the measures issued by the relevant authorities in the People s Republic of China with respect to the qualified foreign institutional investors. a percentage of the Net Asset Value per Unit as specified in the Prospectus or such higher amount as may be approved by an Extraordinary Resolution. any regulated stock exchange or market on which a Fund may invest. A list of those stock exchanges and markets is contained in this Prospectus. the UCITS Regulations and the Central Bank UCITS Regulations. the currency of the People s Republic of China. the measures issued by the relevant authorities in the People s Republic of China with respect to the Renminbi qualified foreign institutional investors. 9

185 Semi-Annual Accounting Date Settlement Date SFTR Specified US Person Sterling, GBP, Swiss Franc, CHF Supplement Top Up Form 31 October in each year. three Business Days following the relevant Dealing Day. Regulation EU 2015/2365 of the European Parliament and of the Council on transparency of securities financing transactions and of reuse and amending Regulation (EU) No 648/2012. (i) a US citizen or resident individual, (ii) a partnership or corporation organized in the United States or under the laws of the United States or any State thereof (iii) a trust if (a) a court within the United States would have authority under applicable law to render orders or judgments concerning substantially all issues regarding administration of the trust, and (b) one or more US persons have the authority to control all substantial decisions of the trust, or an estate of a decedent that is a citizen or resident of the United States excluding (1) a corporation the stock of which is regularly traded on one or more established securities markets; (2) any corporation that is a member of the same expanded affiliated group, as defined in section 1471(e)(2) of the U.S. Internal Revenue Code, as a corporation described in clause (i); (3) the United States or any wholly owned agency or instrumentality thereof; (4) any State of the United States, any U.S. Territory, any political subdivision of any of the foregoing, or any wholly owned agency or instrumentality of any one or more of the foregoing; (5) any organization exempt from taxation under section 501(a) or an individual retirement plan as defined in section 7701(a)(37) of the U.S. Internal Revenue Code; (6) any bank as defined in section 581 of the U.S. Internal Revenue Code; (7) any real estate investment trust as defined in section 856 of the U.S. Internal Revenue Code; (8) any regulated investment company as defined in section 851 of the U.S. Internal Revenue Code or any entity registered with the Securities Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. 80a- 64); (9) any common trust fund as defined in section 584(a) of the U.S. Internal Revenue Code; (10) any trust that is exempt from tax under section 664(c) of the U.S. Internal Revenue Code or that is described in section 4947(a)(1) of the U.S. Internal Revenue Code; (11) a dealer in securities, commodities, or derivative financial instruments (including notional principal contracts, futures, forwards, and options) that is registered as such under the laws of the United States or any State; or (12) a broker as defined in section 6045(c) of the U.S. Internal Revenue Code. This definition shall be interpreted in accordance with the US Internal Revenue Code. the currency of the United Kingdom. the currency of Switzerland. any supplement issued by the Manager in connection with a Fund from time to time which is appended to the Prospectus or which takes the form of a separate document and which, in either case, forms part of the Prospectus. any application form for additional units in an existing Fund, to be completed by investors as prescribed by the Manager from time to time. TCA 1997, Taxes Act the Irish Taxes Consolidation Act 1997, as amended from time to time. Transferable Securities (a) shares in companies and other securities equivalent to shares in companies; (b) bonds and other form of securitised debt; (c) any other negotiable securities which carry the right to acquire such transferable securities by subscription or exchange other than techniques and investments for efficient portfolio management. Trust Deed UCITS UCITS Directive the amended and restated Trust Deed dated 30 March 2016 (as may be supplemented from time to time) made between Baring International Fund Managers (Ireland) Limited as Manager and Northern Trust Fiduciary Services (Ireland) Limited as Depositary. an undertaking for collective investment in transferable securities within the meaning of the UCITS Regulations. Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities as amended by Directive 2014/91/EU of the European Parliament and of the Council of 23 July 2014 as regards depositary functions, remunerations policies and sanctions, including its mandatory implementing regulations. UCITS Regulations the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (as amended) and all applicable Central Bank regulations made 10

186 or conditions imposed or derogations granted thereunder as may be amended from time to time. Unit United States, US United States Person Unitholder Unit Trust an undivided share in the assets of a Fund. the United States of America, its territories, possessions and all areas subject to its jurisdiction (including the Commonwealth of Puerto Rico). any citizen or resident of the United States, any corporation, trust, partnership or other entity created or organised in or under the laws of the United States, any state thereof or any estate or trust the income of which is subject to United States federal income tax, regardless of source. The expression also includes any person falling within the definition of the term "U.S. Person" under Regulation S promulgated under the United States Securities Act of 1933 (as amended). a person who is registered as a holder of Units in the Register of Unitholders for the time being kept by or on behalf of the Unit Trust. Barings International Umbrella Fund. US Dollar, USD, US$ the currency of the United States of America. Valuation Point 12 noon (Irish time) on every Dealing Day. The Manager, with the approval of the Depositary, may change the Valuation Point of a Fund upon giving reasonable advance notice to Unitholders provided that in any event, dealing will always be on a forward pricing basis. 11

187 Introduction The Unit Trust was established pursuant to a trust deed dated 22 November 1990 made between Baring International Fund Managers (Ireland) Limited as Manager (the Manager ) and Northern Trust Fiduciary Services (Ireland) Limited as Depositary (the Depositary ), as amended and restated by the Trust Deed dated 30 March 2016 (as may be supplemented from time to time) and is authorised by the Central Bank as a UCITS pursuant to the UCITS Regulations. The object of the Unit Trust is the collective investment of capital raised from the public in transferable securities and/or in other liquid financial assets in accordance with the UCITS Regulations operating on the principle of risk spreading. The Unit Trust is organised in the form of an umbrella fund. The Trust Deed provides that the Unit Trust may offer separate Funds. Each Fund will have a distinct portfolio of investments. The Unit Trust has obtained the approval of the Central Bank for the establishment of the Funds set out below. Information specific to a Fund will be set out in each Supplement. Funds of the Unit Trust Barings ASEAN Frontiers Fund Barings Asia Growth Fund Barings Australia Fund Barings Europa Fund Barings Hong Kong China Fund Barings International Bond Fund With the prior approval of the Central Bank, the Manager from time to time may create an additional Fund or Funds, the investment policies and objectives for which shall be outlined in a Supplement, together with details of the initial offer period, the initial subscription price for each Unit and such other relevant information in relation to the additional Fund or Funds as the Manager deems appropriate, or the Central Bank requires, to be included. Each Supplement shall form part of, and should be read in conjunction with, this Prospectus, whether or not it is contained therein as one document. In addition, the Manager may create additional Classes within a Fund to accommodate different charges and/or fees and/or brokerage arrangements provided that the Central Bank is notified in advance, and gives prior clearance, of the creation of any such additional Class. Allocation of Assets and Liabilities Under the Trust Deed, the Depositary is required to establish a separate Fund, with separate records, for each series of Unit in the following manner: (a) (b) (c) (d) (e) (f) records and accounts of each Fund shall be maintained separately and in such currency as the Manager and the Depositary shall from time to time determine; the proceeds from the issue of each Class (excluding the Preliminary Charge) shall be applied to the Fund established for that Class, and the assets and liabilities and income and expenditure attributable thereto shall be applied to such Fund subject to the provisions of the Trust Deed; where any asset is derived from another asset, the derived asset shall be applied to the same Fund as the assets from which it was derived and on each revaluation of an asset the increase or diminution in value shall be applied to the relevant Fund; in the case of any asset which the Depositary does not consider as attributable to a particular Fund or Funds, the Depositary shall have discretion, subject to the approval of the Manager and the auditors, to determine the basis upon which any such asset shall be allocated between Funds, and the Depositary shall have power at any time and from time to time, subject to the approval of the Manager and the auditors, to vary such basis provided that the approval of the Manager and of the auditors shall not be required in any case where the asset is allocated between all Funds pro rata to their Net Asset Values at the time when the allocation is made; the Depositary shall have discretion, subject to the approval of the Manager and the auditors, to determine the basis upon which any liability shall be allocated between Funds (including conditions as to the subsequent reallocation thereof if circumstances so permit) and shall have power at any time and from time to time to vary such basis, provided that the approval of the Manager and the auditors shall not be required in any case where a liability is allocated to the Fund or Funds to which in the opinion of the Depositary it relates or if in the opinion of the Depositary it does not relate to any particular Fund or Funds, between all the underlying Funds pro rata to their Net Asset Values; subject to the approval of the Manager and the auditors, the Depositary may transfer any assets to and from Funds if, as a result of a creditor proceeding against certain of the assets of the Trust or otherwise, a liability 12

188 would be borne in a different manner from that in which it would have been borne under paragraph (e) above or in any similar circumstances; and (g) subject to paragraph (f) above, the assets of each Fund shall belong exclusively to that Fund, shall be segregated from other Funds and shall not be used to discharge directly or indirectly the liabilities of or claims against any other Fund and shall not be available for any such purpose. Investment Policy: General The Funds will invest in transferable securities and/or other liquid assets listed or traded on Recognised Exchange and, to the extent specified in the relevant Supplement, in units/shares of other investment funds, all in accordance with the investment restrictions described in Appendix I Investment Restrictions. In addition, and to the extent only that the Investment Manager deems consistent with the investment policies of the Funds, the Funds may utilise for the purposes of efficient portfolio management, the investment techniques and instruments described in Appendix III Efficient Portfolio Management. Such investment techniques and instruments may include financial derivative instruments. To the extent only that the Investment Manager deems consistent with the investment policies of the Funds, and in accordance with the requirements of the Central Bank, the Funds may also utilise financial derivative instruments for investment purposes. The Investment Manager will employ a risk management process which will enable it to accurately measure, monitor and manage the risks attached to financial derivative instruments, and details of this process have been provided to the Central Bank. The Investment Manager will not utilise financial derivative instruments which have not been included in the risk management process until such time as a revised risk management process has been submitted and approved by the Central Bank. Investors attention is particularly drawn to the fact that the portfolio for each Fund may, in addition to any investments referred to below, include deposits, instruments with floating interest rates and short-term paper including treasury bills, certificates of deposit and bankers acceptances and other ancillary liquid assets. The Manager does not expect to retain substantial amounts of assets in this form except if they consider such investments to be in the best interests of Unitholders. Where the investment policy of a Fund requires a particular percentage of that Fund to be invested in a specific type or range of investments, such requirement will not apply under extraordinary market conditions, in which circumstances investment may be made into asset classes other than those in which the Fund is normally invested in order to mitigate the Fund s exposure to market risk. Examples of extraordinary market conditions include economic conditions, political risks or world events, high downside risks during uncertainties, or closure of relevant market(s) due to unexpected events, such as political unrest, war or bankruptcy of large financial institutions. During such periods, a Fund may temporarily invest up to 100% of its total assets in cash, deposits, treasury bills, government bonds or short-term Money Market Instruments or have substantial holdings in cash and cash equivalents. Each Fund may invest in other collective investment schemes. The Investment Manager will only invest in closed ended collective investment schemes where it believes that such investment will not prohibit the Fund from providing the level of liquidity to Unitholders referred to in this Prospectus and each relevant Supplement. The closed ended collective investment schemes in which the Funds may invest shall include, without limitation, closed ended collective investment schemes listed or traded on the New York Stock Exchange, the Irish Stock Exchange and the London Stock Exchange. Where it is appropriate to its investment objective and policies a Fund may also invest in other Funds of this Unit Trust. A Fund may only invest in another Fund of this Unit Trust if the Fund in which it is investing does not itself hold Units in any other Fund of this Unit Trust. Any Fund that is invested in another Fund of this Unit Trust will be invested in a Class for which no management or investment management fee is charged. No subscription, conversion or redemption fees will be charged on any such cross investments by a Fund. A Fund may also seek exposure to some or all of the assets referred to in the investment policy section of each Fund by obtaining exposure to financial indices, such as through futures or swaps on financial indices which will comply with the requirements in the Central Bank UCITS Regulations. Such indices may include, but are not limited to, the FTSE China A50 (rebalanced on a quarterly basis), FTSE Bursa Malaysia KLCI (rebalanced on a semi-annual basis), MSCI Taiwan Index (rebalanced on a quarterly basis), S&P 500 Index (rebalanced on a quarterly basis). Indices which are rebalanced on a daily basis will not be utilised. The costs associated with gaining exposure to a financial index can be impacted by the frequency with which the relevant index is rebalanced. Details of any financial indices held by a Fund will be provided to Unitholders by the Investment Manager upon request and will be set out in the semi-annual and annual accounts of the Unit Trust. Where the weighting of a particular constituent in the relevant index exceeds the UCITS investment restrictions, the Investment Manager will as a priority objective look to remedy the situation, taking into account the interests of Unitholders and the relevant Fund. A Fund may invest in China A or China B securities provided that such investment is in accordance with the requirements of the Central Bank and the relevant regulatory authorities in the People s Republic of China. Unless otherwise specifically disclosed in the investment objectives and policies of a Fund, it is not intended that it will invest, whether directly or indirectly, more than 10% of its net assets in China A and B shares. At least one month s prior notice 13

189 will be given to investors if the relevant Fund intends to invest more than 10% of its net assets in China A and B shares and the Prospectus will be updated accordingly. As of the date of this Prospectus, it is not proposed to use repurchase agreements, reverse repurchase agreements or engage in stock lending on behalf of any Fund. In the event that a Fund does propose to utilise such techniques and instruments, Unitholders will be notified and the Prospectus will be revised in accordance with the requirements of the Central Bank. The investment objective and policies of a Fund are set out in the Supplement for that Fund. The investment objective of each Fund will not at any time be altered without the approval of an Ordinary Resolution. Changes to investment policies which are material in nature may only be made with the approval of an Ordinary Resolution to which the changes relate. A change would be material if, were it to be made, would alter significantly the asset type, credit quality, borrowing limits or risk profile of the relevant Fund. In the event of a change of investment objective and/or a material change in investment policy a reasonable notification period will be provided by the Manager and the Unit Trust will provide facilities to enable Unitholders to redeem their Units prior to implementation of these changes. There can be no assurance or guarantee that a Fund s investments will be successful or its investment objective will be achieved. Please refer to the Risk Considerations section in this Prospectus for a discussion of those factors that should be considered when investing in that Fund. Efficient Portfolio Management Techniques Each Fund may employ various investment techniques for efficient portfolio management (including warrants, exchange traded futures and options, currency forward contracts, swap agreements, contracts for differences, index-linked notes and share and commodity index futures contracts) and hedging purposes as described under Efficient Portfolio Management in Appendix III of the Prospectus and within the limits set out by the Central Bank. Investors should also refer to the section entitled Risk Considerations for the risks associated with the use of efficient portfolio management techniques, which include counterparty risk and conflict of interest risk. There can be no assurance that the Investment Manager will be successful in employing these techniques. Use of Derivatives Investors should note that the Funds may engage in transactions in financial derivative instruments principally for efficient portfolio management, investment and/or for hedging purposes subject to the limits laid down by the Central Bank. Derivative instruments may be used (i) for hedging purposes and/or (ii) for investment purposes in accordance with the requirements of the Central Bank. For example, a Fund may use derivatives (which will be based only on underlying assets or sectors which are permitted under the investment policy of a Fund) (i) to hedge a currency exposure, (ii) as a substitute for taking a position in the underlying asset where the Investment Manager feels that a derivative exposure to the underlying asset represents better value than a direct exposure, (iii) to tailor a Fund s interest rate exposure to the Investment Manager s outlook for interest rates, and/or (iv) to gain an exposure to the composition and performance of a particular index which are consistent with the investment objective and policies of the Fund. The Investment Manager may decide not to use any of these instruments or strategies. In addition, the Investment Manager may decide to use instruments other than those listed below, in accordance with the requirements of the Central Bank. Certain Funds (as detailed below in the Derivative Eligibility Table ) may, in addition to the investment techniques permitted for efficient portfolio management and hedging purposes as described in Appendix III Efficient Portfolio Management, make substantial use of derivatives to meet their investment strategies. Subject to the investment restrictions as set forth in Appendix I of the Prospectus, such Funds may engage in transactions in the types of derivatives classified as eligible in the table below. 14

190 Derivative Eligibility Table: Derivative Type Eligibility Futures Options Warrants Currency Forward Contracts Swap Agreements Contracts for Difference Barings ASEAN Frontiers Fund Yes Yes Yes Yes Yes Yes Barings Asia Growth Fund Yes Yes Yes Yes Yes Yes Barings Australia Fund Yes Yes Yes Yes Yes Yes Barings Europa Fund Yes Yes Yes Yes Yes Yes Barings Hong Kong China Fund Yes Yes Yes Yes Yes Yes Barings International Bond Fund Yes Yes Yes Yes Yes Yes 15

191 Futures and Options Where eligible, certain Funds may use security, index, currency and interest rate futures. The sale of a futures contract creates an obligation by the seller to deliver the type of financial instrument called for in the contract in a specified delivery month for a stated price. The purchase of a futures contract creates an obligation by the purchaser to pay for and take delivery of the type of financial instrument called for in the contract in a specified delivery month, at a stated price. Where eligible, certain Funds may use options on equity indices, futures, swaps and currencies. A call option (which may be covered or uncovered) on an investment is a contract under which the purchaser, in return for a premium paid, has the right to buy the securities underlying the option at the specified exercise price at any time during the term of the option. A put option (which may be covered or uncovered) is a contract that gives the purchaser, in return for a premium paid, the right to sell the underlying securities at the specified exercise price during the term of the option. An option is uncovered where the party writing the option does not hold the underlying security which may be purchased (called) or sold (put) pursuant to the option. Futures and options, as set out above, may be used by certain Funds to hedge interest rate risk, to balance duration, and to synthetically create exposure to certain securities. The underlying assets for futures and options shall be instruments in which the Fund can invest directly in accordance with its investment objective and policy i.e. transferable securities, collective investment schemes (including ETFs), money market instruments, stock or commodity indices, foreign exchange rates and currencies. Swaps Where eligible, certain Funds may use swap agreements (including total return swaps and contracts for difference) with respect to currencies, interest rates and securities. In respect of currencies, a Fund may utilise currency swap contracts where the Fund may exchange currencies at a fixed rate of exchange for currencies at a floating rate of exchange or currencies at a floating rate of exchange for currencies at a fixed rate of exchange. These contracts allow a Fund to manage its exposures to currencies in which it holds investment. For these instruments the Fund s return is based on the movement of currency exchange rates relative to a fixed currency amount agreed by the parties. In respect of interest rates, a Fund may utilise interest rate swap contracts where the Fund may exchange floating interest rate cash flows for fixed interest rate cash flows or fixed interest rate cash flows for floating interest rate cash flows. These contracts allow a Fund to manage its interest rate exposures. For these instruments the Fund s return is based on the movement of interest rates relative to a fixed rate agreed by the parties. In respect of securities and securities indices, a Fund may utilise total return swap contracts where the Fund may exchange floating interest rate cash flows for fixed cash flows based on the total return of an equity or fixed income instrument or a securities index or fixed cash flow based on total return of an equity or fixed income instrument or a securities index for floating interest rate cash flows. These contracts allow a Fund to manage its exposures to certain securities or securities indexes. For these instruments the Fund s return is based on the movement of interest rates relative to the return on the relevant security or index. Details in respect of the counterparties to such swap contracts are set out below. The counterparties to all swap transactions will be institutions subject to prudential supervision and belonging to categories approved by the Central Bank and will not have discretion over the assets of the Fund. Subject to compliance with those conditions, the Investment Manager has full discretion as to the appointment of counterparties when entering into a swap in furtherance of the Fund s investment objective and policies. It is not possible to comprehensively list all the counterparties as they have not, as of the date of issue of the Prospectus, been selected and they may change from time to time. The underlying assets for swaps shall be instruments in which a Fund can invest directly in accordance with its investment objective and policy. Currency Forward Contracts Currency forward contracts are agreements to exchange one currency for another - for example, to exchange a certain amount of Euro for a certain amount of US Dollars - at a future date. The date (which may be any agreed-upon fixed number of days in the future), the amount of currency to be exchanged and the price at which the exchange will take place are negotiated and fixed for the term of the contract at the time that the contract is entered into. Currency forward contracts may be bought or sold in either deliverable or non-deliverable form. A Fund may also utilise non-deliverable forwards. A non-deliverable forward is a bilateral financial futures contract on an exchange rate between a strong currency and an emerging currency. At maturity, there will be no delivery of the emerging currency; instead there is a cash settlement of the contract s financial result in the strong currency. 16

192 Convertible Instruments Convertible instruments, (meaning convertible bonds, mandatory convertible bonds, convertible preferred stock and equity linked notes), are ordinary long-term debt obligations of the issuer convertible at a stated exchange rate into common stock of the issuer. As with all debt securities, the market value of convertible instruments tends to decline as interest rates increase and, conversely, to increase as interest rates decline. Convertible instruments are securities which have the right to convert into a fixed number of shares. Convertible instruments therefore have debt and equity like features. When the equity value of the convertible is low, the convertible s value behaves like a debt instrument. As the equity value goes up, the convertible s value behaves more like equity. Positions in convertible instruments may embed options (details of which are set out above) but will not create material leverage. Equity Related Instruments A Fund may, within the limits laid down by the Central Bank purchase and sell equity index and equity related instruments including but not limited to Low Exercise Price Options (LEPO s), Optimised Portfolios as Listed Securities (OPALS), Performance Linked to Equity Securities (PERLES), share index notes, share index futures notes, participatory receipts and participatory certificates, each of which may assist in achieving the investment objective of the relevant Fund. Where utilised, LEPO s, OPALS and PERLES will be listed or traded on one or more of the stock exchanges or markets in which a Fund is permitted to invest, as set out in Appendix II Eligible Securities & Derivatives Markets. These instruments shall in each case comprise transferable securities of the issuer, notwithstanding that their value is linked to an underlying equity or equity index. In practice, the relevant Fund will purchase such instruments from an issuer and the instrument will track the underlying equity or equity index. It should be noted that the relevant Fund s exposure in relation to these instruments will be to the issuer of the instruments. However, it will also have an economic exposure to the underlying securities themselves. Any LEPO purchased or sold by the relevant Fund will be exercisable at any time over the duration of its life and may be settled on a cash basis. Warrants Warrants are used to gain investment exposure to a particular asset class. A warrant is a derivative that confers the right, but not the obligation, to buy or sell a security at a certain price before expiration. A Fund may purchase warrants to provide an efficient, liquid mechanism for taking position in securities without the need to purchase and hold the security. Total Return Swaps The maximum exposure of a Fund in respect of total return swaps shall be a maximum gross exposure of 200%. However, the Investment Manager anticipates that a Fund s exposure to total return swaps is likely to remain within the range specified in the table below. Fund Name Barings ASEAN Frontiers Fund Barings Asia Growth Fund Barings Australia Fund Barings Europa Fund Barings Hong Kong China Fund Barings International Bond Fund Exposure calculated using the sum of the notionals 0%-10% of the Net Asset Value of the Fund 0%-10% of the Net Asset Value of the Fund 0%-10% of the Net Asset Value of the Fund 0%-10% of the Net Asset Value of the Fund 0%-10% of the Net Asset Value of the Fund 0%-70% of the Net Asset Value of the Fund Derivative Risk Management The Investment Manager employs a risk management process which enables it to accurately measure, monitor and manage the various risks associated with financial derivative instruments and details of this process have been provided to the Central Bank. The Funds will not use derivative instruments which have not been listed in the Investment Manager s risk management process until such time as a revised risk management process has been submitted to the Central Bank. The use of derivative instruments (whether for hedging and/or for investment purposes) may expose a Fund to the risks as described in the Risk Considerations section below. Position exposure to underlying assets of derivative instruments (other than index based derivatives) (whether for hedging purposes and/or for investment purposes), when combined with positions resulting from direct investments, will not exceed the investment limits set out in Appendix I. Save as otherwise specified in the relevant Supplement, the Funds will use the commitment approach to calculate their global exposure, as described in detail in the risk management process of the Investment Manager. In no circumstances will the global exposure of a Fund exceed 100% of its Net Asset Value. 17

193 Currency Hedging The Manager may from time to time in its sole discretion, and without notice to the Unitholders, issue Hedged Classes which are denominated in a currency other than the Base Currency of a Fund. Unless otherwise stated in the relevant Supplement, Hedged Classes are available in the following currencies, provided that for each Fund, no Hedged Class is available in the Base Currency of the Fund: AUD, CHF and RMB. The foreign currency exposure of such Classes will usually be hedged into the Base Currency. Although hedging strategies may not necessarily be used in relation to each Class within a Fund (e.g., Class with a Class Currency that is the same as the Base Currency), the financial instruments used to implement such strategies shall be assets/liabilities of the relevant Fund as a whole. However, the gains/losses on and the costs of the relevant financial instruments will accrue solely to the relevant Class. The Investment Manager will limit hedging to the extent of the Hedged Class Units currency exposure and the Investment Manager shall seek to ensure such hedging shall not exceed 105% of the Net Asset Value of each relevant Class and shall not be below 95% of the Net Asset Value attributable to the relevant Class. The Investment Manager will monitor hedging in order to ensure that such hedging is close to 100% and will review such hedging with a view to ensuring that positions materially in excess of 100% of the Net Asset Value of the relevant Class are not carried over from month to month. Counterparty exposure in respect of foreign exchange hedging shall at all times comply with the requirements of the UCITS Regulations and the Central Bank. Classes denominated in a currency other than the Base Currency are generally not expected to be leveraged as a result of hedging strategies and Unit Class hedging transactions shall not be used for speculative purposes. The currency exposure of a Fund arising from the assets held by a Fund and also any currency transactions entered into by a Fund (other than with respect to a Class) will not be allocated to separate Classes and will be allocated pro rata to all Classes of such Fund. Where currency hedging transactions are entered into in respect of a Class (regardless of whether such exposure is attributable to transactions entered into at the Class or Fund level), the currency exposure arising from such transactions will be for the benefit of that Class only and may not be combined with or offset against the currency exposure arising from transactions entered into in respect of other Class. The audited financial statements of each Fund will indicate how hedging transactions have been utilised. Currency Agents The Investment Manager may appoint a third party to act as the currency agent (the "Currency Agent") on behalf of the Investment Manager. The Currency Agent(s) will implement a currency hedging programme, instructed by the Investment Manager, at the portfolio and/or the Hedged Class level. The Investment Manager may also elect to perform the hedging functions itself or appoint other parties to act as the Currency Agent(s) in the future. Listing of Units The Manager may determine to apply to have certain Units admitted to the Official List and to trading on the Global Exchange Market of the Irish Stock Exchange. Investors should contact the Investment Manager to determine which classes in a Fund are available for subscription and/or listed on the Irish Stock Exchange at any particular time. The Manager does not anticipate that an active secondary market will develop in any listed Units in a Fund admitted to the Official List and to trading on the Global Exchange Market of the Irish Stock Exchange. The launch and listing of various Classes in a Fund may occur at different times and therefore, at the time of the launch of a Class, the pool of assets to which such Class relates may have commenced trading. For further information in this regard, the most recent interim and annual reports of the Unit Trust will be made available to potential investors upon request. Risk Considerations There can be no assurance that a Fund s investments will be successful or that the investment objectives of a Fund will be achieved. A Fund s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Unit Trust may suffer losses. There is no guarantee of the repayment of principal. An investment in Units of a Fund does not constitute a complete investment programme. Investors may wish to complement an investment in a Fund with other types of investments. An investment in a Fund should not constitute a substantial proportion of an investment portfolio and may not be appropriate for all investors. The difference at any one time between the sale and redemption price of Units in a Fund means that the investment should be viewed as medium to long term. Whilst some risks will be more relevant to certain Funds, investors should ensure that they understand all the risks discussed in this Prospectus, insofar as they may relate to that Fund. In addition, the relevant Supplement provides more information on the specific risks associated with individual Funds, where relevant. Investors should read all the Risk Considerations to determine applicability to a specific Fund in which the investor intends to invest. 18

194 The following Risk Considerations detail particular risks associated with an investment in the Unit Trust, which investors are encouraged to discuss with their professional advisers. It does not purport to be a comprehensive summary of all of the risks associated with an investment in the Unit Trust or an individual Fund. Charges Deducted from Capital Each Fund normally pays its management fee and other fees and expenses out of income. However, where insufficient income is available, the Manager may pay some or all of its management fee and other fees and expenses out of capital and out of both realised and unrealised capital gains less realised and unrealised capital losses. Where the management fee and other fees and expenses are deducted from a Fund s capital rather than income generated by the relevant Fund this may constrain growth and could erode capital, as the capital of the relevant Fund available for investment in the future and for capital growth may be reduced, although this may also result in income being increased for distribution of dividends. Thus, on redemption of holdings, Unitholders may not receive back the full amount invested. The policy of charging fees and expenses to capital will also have the effect of lowering the capital value of your investment and constraining the potential for future capital growth. As fees and expenses may be charged to capital, investors should note the greater risk of capital erosion given the lack of potential capital growth and the likelihood that due to capital erosion, the value of future returns in the Fund could be diminished. Accordingly, distribution of dividends made during the lifetime of the Fund must be understood as a type of capital reimbursement. The rationale for the charging of fees and expenses in this manner is that it will have the effect of increasing the distributable income of the Fund. The distribution amount and Net Asset Value of the Hedged Class may be adversely affected by differences in the interest rates of the reference currency of the Hedged Class and the Fund s Base Currency, resulting in an increase in the amount of distribution that is paid out of capital and hence a greater erosion of capital than other non-hedged Classes. Portfolio Transactions The Manager and delegates of the Manager which are associated companies of the Manager may deal in securities and other investments for the Unit Trust through or with any associated company of the Manager. In addition, any cash of the Unit Trust may be deposited, subject to the provisions of the Central Bank Acts, 1942 to 2010, with the Depositary or any associated company of the Depositary or invested in certificates of deposit or banking instruments issued by the Depositary or any associated company of the Depositary. Banking and similar transactions may also be undertaken with or through the Depositary or any other associated company of the Depositary. There is no prohibition on dealings in the assets of a Fund by the Manager, the Investment Manager, the Administrator, the Depositary or entities related to the Manager, the Investment Manager, the Administrator or the Depositary or to their respective officers, directors or executives, provided that the transaction is negotiated at arm s length. Such transactions must be consistent with the best interests of the Unitholders. There will be no obligation on the part of the Manager, the Investment Manager, the Administrator, the Depositary or entities related to the Manager, the Investment Manager, the Administrator or the Depositary or their respective officers, directors or executives to account to the Unitholders for any benefits so arising and any such benefits may be retained by the relevant party provided that: (i) (ii) (iii) a person approved by the Depositary (or in the case of a transaction involving the Depositary, the Manager) as independent and competent certifies the price at which the transaction is effected is fair; or the execution of the transaction is on best terms on an organised investment exchanges under its rules; or where the conditions set out in (i) or (ii) above are not practical, the Depositary (or in the case of a transaction involving the Depositary, the Manager) is satisfied that such transaction conforms with the principle that it is negotiated at arm s length and is in the best interest of Unitholders. The Investment Manager is acting for the Manager in relation to this Prospectus and matters relating thereto and it or any of its associates may have an interest or position in Units in the Unit Trust. It is not acting for, or advising, or treating as its customer, any other person (unless other arrangements apply between the Investment Manager and such person) in relation to investment in the Unit Trust and will not be responsible for providing to any such other person best execution or any other of the protections afforded to its customers. Counterparty Risk Counterparty risk, otherwise known as default risk, is the risk that an organisation does not pay out on a bond or other trade or transaction when it is supposed to. If a counterparty fails to honour its obligations in a timely manner and the Fund is delayed or prevented from exercising its rights with respect to the investments in its portfolio, it may experience a decline in the value of its position, lose income and/or incur costs associated with asserting its rights. Credit Risk General Funds may be exposed to a credit / default risk of issuers of debt securities that the Fund may invest in. When a Fund invests in a security or other instrument which is guaranteed by a bank or other type of financial institution there can be no assurance that such guarantor will not itself be subject to credit difficulties, which may lead to the downgrading of 19

195 such securities or instruments, or to the loss of some or all of the sums invested in such securities or instruments, or payments due on such securities or instruments Currency Risk The underlying investments of a Fund may be denominated in currencies other than the Base Currency of the Fund. Also, a Class of a Fund may be designated in a currency other than the Base Currency of the Fund. The Net Asset Value of the Fund may be affected unfavourably by fluctuations in the exchange rates between these currencies and the Base Currency and by changes in exchange rate controls. Unless the Class is specifically described as a Hedged Class, no steps are taken to mitigate the effects of exchange rate fluctuations between the currency of denomination of the Units and the Base Currency. Cyber Security Risk The Unit Trust and its service providers are susceptible to operational and information security and related risks of cyber security incidents. In general, cyber incidents can result from deliberate attacks or unintentional events. Cyber security attacks include, but are not limited to, gaining unauthorized access to digital systems (e.g., through "hacking" or malicious software coding) for purposes of misappropriating assets or sensitive information, corrupting data or causing operational disruption. Cyber attacks also may be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks on websites (i.e. efforts to make services unavailable to intended users). Cyber security incidents affecting the Manager, Investment Manager, Administrator or Depositary or other service providers such as financial intermediaries have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, including by interference with the Administrators ability to calculate the Net Asset Value; impediments to trading for the relevant Funds portfolio; the inability of Unitholders to transact business with the Unit Trust; violations of applicable privacy, data security or other laws; regulatory fines and penalties; reputational damage; reimbursement or other compensation or remediation costs; legal fees; or additional compliance costs. Similar adverse consequences could result from cyber security incidents affecting issuers of securities in which the Unit Trust invests, counterparties with which the Unit Trust engages in transactions, governmental and other regulatory authorities, exchange and other financial market operators, banks, brokers, dealers, insurance companies and other financial institutions and other parties. While information risk management systems and business continuity plans have been developed which are designed to reduce the risks associated with cyber security, there are inherent limitations in any cyber security risk management systems or business continuity plans, including the possibility that certain risks have not been identified. Fund Termination Risk In the event of the early termination of a Fund, the Manager would have to distribute to the Unitholders their pro rata interest in the assets of the Fund. It is possible that at the time of such sale or distribution, certain investments held by a Fund may be worth less than the initial cost of such investments, resulting in a substantial loss to the Unitholders. Moreover, any organisational expenses with regard to a Fund that had not yet become fully amortised would be debited against the Fund s capital at that time. The circumstances under which a Fund may be terminated are set out under the heading Duration of the Unit Trust. Inflation Risk A Fund s assets or income from a Fund s investments may be worth less in real terms in the future as inflation decreases the value of money. As inflation increases, the real value of a Fund s portfolio will decline unless it grows by more than the rate of inflation. Investment in Europe- European Sovereign Debt Crisis Some of the Funds may invest substantially in Europe. In light of the fiscal conditions and concerns on sovereign debt of certain European countries, the Eurozone crisis continues to raise uncertainty with some or no clarity on an enduring solution. Any adverse events, such as the downgrading of the credit rating of a European country, the default or bankruptcy of one or more sovereigns within the Eurozone, the departure of some, or all, relevant EU Member States from the Eurozone, or any combination of the above or other economic or political events may have a negative impact on the value of the Funds. In light of ongoing concerns on the sovereign debt risk of certain countries within the Eurozone, a Fund s investments in the region may be subject to higher volatility, liquidity, currency and default risks associated with investments in Europe. If certain countries cease to use Euro as their local currency, the transition by an EU Member State away from the Euro or the dissolution of the Euro may require the redenomination of some, or all, Euro-denominated sovereign debt, corporate debt and securities (including equity securities). This may have an adverse impact on the liquidity of a Fund s Euro-denominated assets and on the performance of the Fund which hold such assets. A Eurozone break-up or exit 20

196 from the Euro might also lead to additional performance, legal and operational risks to the Fund and may cause uncertainty as to the operation of certain terms of agreements that are governed by the law of an exiting EU Member State. While the governments of many European countries, the European Commission, the European Central Bank, the International Monetary Fund and other authorities are taking measures (such as undertaking economic reforms and imposing austerity measures on citizens) to address the current fiscal conditions, there are concerns that these measures may not have the desired effect and the future stability and growth of Europe remains uncertain. If a crisis occurs, economic recovery may take some time and future growth will be affected. The performance and value of the Funds may potentially be adversely affected by any or all of the above factors, or there may be unintended consequences in addition to the above arising from the potential European crisis that may adversely affect the performance and value of the Funds. It is also possible that a large number of investors could decide to redeem their investments in the Fund at the same time. Investors also need to bear in mind that the events in Europe may spread to other parts of the world, affecting the global financial system and other local economies, and ultimately adversely affecting the performance and value of a Fund. Volatility and Liquidity Risk The debt instruments in which a Fund invests may not be traded on an active secondary market. In addition, debt instruments in certain markets may be subject to a higher volatility and lower liquidity when compared to more developed markets. The prices of securities traded in such markets may be subject to fluctuations. The bid and offer spreads of the price of such securities may be large and a Fund may incur significant trading costs. Liquidity risk exists when a particular security or instrument is difficult to purchase or sell. If the size of a transaction would represent a relatively large proportion of the average trading volume in that security or if the relevant market is illiquid (as is the case with many privately negotiated derivatives), it may not be possible to initiate a transaction or liquidate a position at an advantageous time or price. Further information on how the Investment Manager manages liquidity risk can be found under the heading Liquidity Risk Management below. Market Disruption Risk The Funds may be exposed to the risk of incurring large losses in the event of disrupted markets. Disruptions can include the suspension or limit on trading of a financial exchange and disruptions in one market sector can have an adverse effect on other market sectors. If this happens, the risk of loss to a Fund can be increased because many positions may become illiquid, making them difficult to sell. Finance available to a Fund may also be reduced which can make it more difficult for a Fund to trade. No Investment Guarantee Investment in a Fund is not of the same nature of a deposit in a bank account and is not protected by any government, government agency or other guarantee scheme which may be available to protect the holder of a bank deposit account. Any investment in a Fund is subject to fluctuations in value and you may get back less than you invest. Potential implications of Brexit On 23 June 2016 the United Kingdom held a referendum and voted to leave the European Union. This has led to volatility in the financial markets of the United Kingdom and more broadly across Europe and may also lead to weakening in consumer, corporate and financial confidence in such markets. The extent and process by which the United Kingdom will exit the European Union, and the longer term economic, legal, political and social framework to be put in place between the United Kingdom and the European Union are unclear at this stage and are likely to lead to ongoing political and economic uncertainty and periods of exacerbated volatility in both the United Kingdom and in wider European markets for some time. This mid to long term uncertainty may have an adverse effect on the economy generally and on the ability of the Funds to execute their respective strategies and to receive attractive returns. Leaving the European Union may also result in significant changes to law and regulation in the United Kingdom. It is not currently possible to assess the effect of these changes on the Unit Trust, its investments or the position of the Unitholders. Investors should be aware that these and other similar consequences following from the referendum result may adversely affect the value of the Units and the Unit Trust s performance. Suspension of Trading A securities exchange typically has the right to suspend or limit trading in any instrument traded on that exchange. The government or the regulators may also implement policies that may affect the financial markets. A suspension could render it impossible for the Investment Manager or an underlying fund manager to liquidate positions and thereby expose a Fund to losses and may have a negative impact on the Fund. 21

197 Taxation Any change in the taxation legislation or the interpretation thereof in any jurisdiction where a Fund is registered, marketed or invested could affect the tax status of the Fund, and consequently the value of the Fund s investments in the affected jurisdiction, the Fund s ability to achieve its investment objective and/or to alter the post tax returns to Unitholders. A Fund may be subject to withholding or other taxes on income and/or gains arising from its investments. Certain investments may themselves be subject to similar taxes on the underlying investments that they hold. Any investment in either developed or emerging markets, may be subject to new taxes or the rate of tax applicable to any income arising or capital gains may increase or decrease as a result of any prospective or retrospective change in applicable laws, rules or regulations or the interpretation thereof. It is possible that a Fund may or may not be able to benefit from relief under a double tax agreement between Ireland and the country where an investment is resident for tax purposes. Certain countries may have a tax regime that is less well defined, may be subject to unpredictable change and may permit retroactive taxation thus the Funds could become subject to a local tax liability that had not reasonably been anticipated. Such uncertainty could necessitate significant provisions being made by any relevant Fund in the Net Asset Value per Unit calculations for foreign taxes while it could also result in a Fund incurring the cost of a payment made in good faith to a fiscal authority where it was eventually found that a payment need not have been made. Consequently, where through fundamental uncertainty as to the tax liability, or the lack of a developed mechanism for practical and timely payment of taxes, a Fund pays taxes relating to previous years, any related costs will likewise be chargeable to the Fund. Such late paid taxes will normally be debited to a Fund at the point the decision to accrue the liability in the Fund s accounts is made. As a result of the situations referred to above, any provisions made by the Funds in respect of the potential taxation of and returns from investments held at any time may prove to be excessive or inadequate to meet any eventual tax liabilities. Consequently, investors in a Fund may be advantaged or disadvantaged when they subscribe or redeem their Units in the Fund. Unitholders and potential investors attention is drawn to the taxation risks associated with investing in a Fund. Please refer to the section headed TAXATION. Foreign Account Tax Compliance Act The foreign account tax compliance provisions ( FATCA ) of the Hiring Incentives to Restore Employment Act 2010 which apply to certain payments are essentially designed to require reporting of Specified US Person s direct and indirect ownership of non-us accounts and non-us entities to the US Internal Revenue Service ( IRS ), with any failure to provide the required information resulting in a 30% US withholding tax on direct US investments (and possibly indirect US investments). In order to avoid being subject to US withholding tax, both US investors and non-us investors are likely to be required to provide information regarding themselves and their investors. In this regard the Irish and US Governments signed an intergovernmental agreement ( Irish IGA ) with respect to the implementation of FATCA (see section entitled Other within the Taxation section for further detail) on 21 December Under the Irish IGA (and the relevant Irish regulations and legislation implementing same), foreign financial institutions (such as the Unit Trust) should generally not be required to apply 30% withholding tax. To the extent the Unit Trust. however suffers US withholding tax on its investments as a result of FATCA, or is not in a position to comply with any requirement of FATCA, the Administrator acting on behalf of the Unit Trust may take any action in relation to a Unitholder's investment in the Unit Trust to redress such non-compliance and/or to ensure that such withholding is economically borne by the relevant Unitholder whose failure to provide the necessary information or to become a participating foreign financial institution or other action or inaction gave rise to the withholding or non-compliance, including compulsory redemption of some or all of such Unitholder s holding of Units. The Manager, in taking any such action or pursuing any such remedy, shall act in good faith and on reasonable grounds, and pursuant to applicable laws and regulations. Unitholders and prospective investors should consult their own tax advisor with regard to US federal, state, local and non-us tax reporting, the possible implication of FATCA on them and the Unit Trust and certification requirements associated with an investment in the Unit Trust. Common Reporting Standard The OECD developed the Common Reporting Standard ( CRS ) to address the issue of offshore tax evasion on a global basis. The CRS provides a common standard for due diligence, reporting and exchange of financial account information. Pursuant to the CRS, participating jurisdictions will obtain from reporting financial institutions, and automatically exchange with exchange partners on an annual basis, financial information with respect to all reportable accounts identified by financial institutions on the basis of common due diligence and reporting procedures. The first information exchanges began in September Ireland has legislated to implement the CRS. As a result the Unit Trust will be 22

198 required to comply with the CRS due diligence and reporting requirements, as adopted by Ireland. Unitholders may be required to provide additional information to the Unit Trust to enable the Unit Trust to satisfy its obligations under the CRS. Failure to provide requested information may subject an investor to liability for any resulting penalties or other charges and/or compulsory redemption of its Units in the relevant Fund. Unitholders and prospective investors should consult their own tax advisor with regard to with respect to their own certification requirements associated with an investment in the Unit Trust. Valuation Risk Valuation of a Fund s investments may involve uncertainties and judgmental determinations. If such valuation turns out to be incorrect, this may affect the Net Asset Value calculation of the Fund. Risk of investing in other collective investment schemes A Fund may invest in other collective investment schemes and therefore will be subject to the risks associated with the underlying collective investment schemes. A Fund does not have control of the investments of the underlying collective investment schemes and there is no assurance that the investment objective and strategy of the underlying collective investment schemes will be successfully achieved which may have a negative impact to the Net Asset Value of the Fund. There may be additional costs involved when investing into these underlying collective investment schemes. There is also no guarantee that the underlying collective investment schemes will always have sufficient liquidity to meet the Fund s redemption requests as and when made. FUND SPECIFIC RISKS Hedged Classes Hedged Classes aim to mitigate the effect of fluctuations in the exchange rate of the currency of the relevant Hedged Class relative to the Base Currency of the Fund. The Manager aims to mitigate this risk by using financial instruments such as those described under the heading Investment Policy: General - Efficient Portfolio Management Techniques, provided that such instruments shall not result in hedged positions exceeding 105% or falling below 95% of the Net Asset Value attributable to the relevant Class of the Fund. Currency hedging also has potential downsides. Hedging techniques have transaction costs which are borne by the Hedged Class. In addition it is unlikely that the Manager will be able to achieve a perfect currency hedge, so there is no guarantee that a currency hedge will be entirely effective. Investors should also be aware that this strategy may substantially limit Unitholders of the relevant Class from benefiting if the designated currency falls against the Base Currency and/or the currency in which assets of the Fund are denominated. Liability of the Fund Unitholders of the relevant Hedged Class of the Fund may be exposed to fluctuations in the Net Asset Value per Unit reflecting the gains/losses on and the costs of the relevant financial instruments. However, the financial instruments used to implement such strategies shall be assets/liabilities of the Fund as a whole. RMB Hedged Class Risk RMB is subject to a managed floating exchange rate based on market supply and demand with reference to a basket of currencies. Currently, the RMB is traded in two markets: onshore RMB (CNY) in Mainland China and offshore RMB (CNH) primarily in Hong Kong. Onshore RMB (CNY) is not freely convertible and is subject to exchange controls and certain requirements by the government of PRC. Offshore RMB (CNH), on the other hand, is freely tradable. The exchange rate used for the RMB denominated Hedged Classes is the offshore RMB (CNH). The value of offshore RMB (CNH) could differ, perhaps significantly from that of the onshore RMB (CNY) due to a number of factors including without limitation those foreign exchange control policies and repatriation restrictions. Accordingly, RMB denominated Hedged Classes may be exposed to greater foreign exchange risks. There is no assurance that RMB will not be subject to devaluation or revaluation or that shortages in the availability of foreign currency will not develop. Investment in Small Capitalisation / Mid-Capitalisation Companies The stock of small-capitalisation and mid-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general. Risks include economic risks, such as lack of product depth, limited geographical diversification and increased sensitivity to the business cycle. They also include organisational risk, such as concentration of management and shareholders and keyperson dependence. Where smaller companies are listed on junior sections of the stock exchange, they may be subject to a lighter regulatory environment. Furthermore, the shares in smaller companies can be more difficult to buy and sell, resulting in less flexibility, and sometimes higher costs, in implementing investment decisions. 23

199 Investment in Specific Countries, Regions and Sectors A Fund s investments are concentrated in specific industry sectors, instruments, countries or regions. The value of a Fund may be more volatile than that of a fund having a more diverse portfolio of investments. The value of a Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the specific country or region market. Investment in China Investing in the Chinese securities markets is subject to both emerging market risks as well as country specific risks. Political changes, restrictions on currency exchange, exchange monitoring, taxes, limitations on foreign capital investments and capital repatriation can also affect investment performance. Whilst the number of available share issues continues to increase, availability remains limited as compared with the choice available in other developed financial markets. This can impact on the level of liquidity in the shares markets which in turn can lead to price volatility. The legal and regulatory framework for capital markets and joint stock companies in China is less developed when compared with those of developed countries. In addition, Chinese accounting standards may differ from international accounting standards. Investment in Chinese securities may involve certain custodial risks. For example, the evidence of title of exchange traded securities in the People s Republic of China ( PRC ) consists only of electronic book-entries in the depository and/or registry associated with the relevant exchange. These arrangements of the depositories and registries are new and not fully tested with regard to their efficiency, accuracy and security. Investment in mainland China remains sensitive to any major change in economic, social and political policy in the PRC. The capital growth and thus the performance of these investments may be adversely affected due to such sensitivity. The PRC government s control of future movements in exchange rates and currency conversion may have an adverse impact on the operations and financial results of the companies in which these Funds invest. With the potential uncertainty concerning the tax treatment of investments in Chinese securities, the possibility of tax rules being changed and the possibility of taxes or tax liabilities being applied retroactively, any provisions for taxation made by the relevant Funds at any time may prove to be excessive or inadequate to meet any eventual tax liabilities. Consequently, investors may be advantaged or disadvantaged depending on the position of the Chinese tax authorities in the future and the level of tax provisions proving to be either excessive or inadequate either when they subscribed or redeemed their Units in the relevant Funds. In the event that tax provisions are made, any shortfall between the provision and the actual tax liabilities, which will be debited from the Fund s assets, will adversely affect the Fund s Net Asset Value. The actual tax liabilities may be lower than the tax provision made. Depending on the timing of their subscriptions and/or redemptions, investors may be disadvantaged as a result of any shortfall of tax provision and will not have the right to claim any part of the overprovision (as the case may be). Under the prevailing PRC tax policy, there are certain tax incentives available to PRC companies with foreign investments. Moreover, there is a possibility that the tax laws, regulations and practice in the PRC may be subject to change and that such changes may have retrospective effect. There is no assurance that tax incentives currently offered to foreign companies will not be abolished in the future. In addition, by investing in Chinese securities including China A- shares and China B-shares (indirectly through investment in other CIS or participation notes), these Funds may be subject to withholding and other taxes imposed in the PRC which cannot be eliminated by any applicable double taxation treaty. Therefore such uncertainty could necessitate significant provisions being made in the Net Asset Value per Unit calculations for foreign taxes. Currently, foreign investors may only invest in China A shares and the PRC domestic securities market; (1) through quotas approved under the QFII Regulations and/or RQFII Regulations; (2) through the Shanghai Hong Kong Stock Connect Scheme and Shenzhen Hong Kong Stock Connect Scheme (the Connect Schemes ); or (3) as a strategic investor under applicable PRC regulations. Foreign investors may invest in China B shares directly. It is anticipated that a Funds exposure to China A shares listed on the Shanghai Stock Exchange ( SSE ) and Shenzhen Stock Exchange ( SZSE ) may be obtained directly via the Connect Schemes and exposure to China A Shares listed on other exchanges and China B shares will be obtained through indirect exposure through investment in other eligible collective investment schemes or participation notes and details of any such investment is set out in the relevant Supplement for a Fund. Details of the risks associated with investment in China A or China B securities is set out under the heading Risk Considerations Investment in China and specific risk factors regarding investment directly in China A shares via the Connect Schemes is set out under the heading Risk Considerations- Investment via the Connect Schemes. Further details on the Connect Schemes are set out below. The Shanghai Hong Kong Stock Connect Scheme is a securities trading and clearing linked programme developed by the Stock Exchange of Hong Kong ( SEHK ), Hong Kong Exchanges and Clearing Limited ( HKEx ), SSE and China Securities Depository and Clearing Corporation Limited ( ChinaClear ) and the Shenzhen Hong Kong Stock Connect Scheme is a securities trading and clearing linked programme developed by SEHK, HKEx and the SZSE and 24

200 ChinaClear. The aim of the Connect Schemes is to achieve mutual stock market access between mainland China and Hong Kong. The Shanghai Hong Kong Stock Connect Scheme enables Hong Kong and overseas investors, to invest in China A shares listed in the SSE ( SSE Securities ) through their Hong Kong brokers and a securities trading service company established by SEHK using the Northbound Shanghai Trading Link. Under the Northbound Shanghai Trading Link, investors, through their Hong Kong brokers and a securities trading service company established by the SEHK, may be able to trade SSE Securities, listed on the SSE, subject to the rules of the Shanghai Hong Kong Stock Connect Scheme. SSE Securities, as of the date of this Prospectus, include shares listed on the SSE that are (a) constituent stocks of SSE 180 Index; (b) constituent stocks of SSE 380 Index; (c) China A shares listed on the SSE that are not constituent stocks of the SSE 180 Index or SSE 380 Index but which have corresponding China H shares accepted for listing and trading on SEHK, provided that: (i) they are not traded on the SSE in currencies other than RMB (ii) they are not under risk alert. SEHK may include or exclude securities as SSE Securities and may change the eligibility of shares for trading on the Northbound Shanghai Trading Link. The Shenzhen Hong Kong Stock Connect enables Hong Kong and overseas investors, to invest in China A shares listed in the SZSE ( SZSE Securities ) through their Hong Kong brokers and a securities trading service company established by SEHK using the Northbound Shenzhen Trading Link. Under the Northbound Shenzhen Trading Link, through their Hong Kong brokers and a securities trading service company established by SEHK, Hong Kong and overseas investors may be able to trade SZSE Securities, listed on the SZSE, subject to the rules of the Shenzhen Hong Kong Stock Connect Scheme. SZSE Securities, as of the date of the Prospectus, include (a) all the constituent stocks of the SZSE Component Index and SZSE Small/Mid Cap Innovation Index which has a market capitalisation of not less than RMB 6 billion, and (b) China A shares listed on the SZSE which have corresponding China H shares accepted for listing and trading on SEHK, provided that: (i) they are not traded on the SZSE in currencies other than RMB (ii) they are not under risk alert or under delisting arrangement. At the initial stage of the Shenzhen Hong Kong Stock Connect, investors eligible to trade shares that are listed on the ChiNext Board under Northbound trading will be limited to institutional professional investors (which the Funds will qualify as such) as defined in the relevant Hong Kong rules and regulations. SEHK may include or exclude securities as SZSE Securities and may change the eligibility of shares for trading on the Northbound Shenzhen Trading Link. Under the Connect Schemes, the Hong Kong Securities Clearing Company Limited ( HKSCC ), a wholly-owned subsidiary of HKEx, will be responsible for the clearing, settlement and the provision of depository, nominee and other related services of the trades executed by Hong Kong market participants and investors. Investment via the Connect Schemes The relevant rules and regulations on Connect Schemes are subject to change which may have potential retrospective effect. The Connect Schemes are subject to quota limitations. Where a suspension in the trading through the programme is effected, the Fund s ability to invest in China A-shares or access the PRC market through the programme will be adversely affected. In such event, a Fund s ability to achieve its investment objective could be negatively affected. Quota limitations Trading under the Connect Schemes will be subject to a daily quota ( Daily Quota ). The Northbound Shanghai Trading Link under the Shanghai-Hong Kong Stock Connect Scheme, Northbound Shenzhen Trading Link under the Shenzhen- Hong Kong Stock Connect Scheme, Southbound Hong Kong Trading Link under the Shanghai-Hong Kong Stock Connect Scheme and Southbound Hong Kong Trading Link under the Shenzhen-Hong Kong Stock Connect Scheme will be respectively subject to a separate set of Daily Quota. The Daily Quota limits the maximum net buy value of cross boundary trades under each of the Connect Schemes each day. The Northbound Daily Quota is currently set at RMB13 billion for each of the Connect Schemes as of the date of this Prospectus. SEHK will monitor the quota and publish the remaining balance of the Northbound Daily Quota at scheduled times on the HKEx s website. Once the remaining balance of the Northbound Daily Quota drops to zero or the Northbound Daily Quota is exceeded during the opening call session, new buy orders will be rejected (though investors will be allowed to sell their crossboundary securities regardless of the quota balance). Therefore, quota limitations may restrict the relevant Fund s ability to invest in China A shares through the Connect Schemes on a timely basis, and the relevant Fund may not be able to effectively pursue its investment strategies. Legal / Beneficial Ownership The SSE Securities and SZSE Securities in respect of a Fund are held by the Depositary in accounts in the Central Clearing and Settlement System ( CCASS ) maintained by the HKSCC as central securities depositary in Hong Kong. HKSCC in turn holds the SSE Securities and SZSE Securities, as the nominee holder, through an omnibus securities account in its name registered with ChinaClear for each of the Connect Schemes. While the relevant CSRC regulations and ChinaClear rules generally provide for the concept of a nominee holder and Hong Kong and overseas investors (such as the Unit Trust and the Funds) would be recognised as having beneficial ownership in the SSE Securities and 25

201 SZSE Securities. The precise nature and rights of the Funds as the beneficial owners of the SSE Securities and SZSE Securities through HKSCC as nominee is not well defined under PRC law. There is lack of a clear definition of, and distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases involving a nominee account structure in the PRC courts. Therefore, the exact nature and methods of enforcement of the rights and interests of the Fund under PRC law is uncertain. Further, how an investor, such as a relevant Fund, as the beneficial owner of SSE Securities and SZSE Securities under the stock connect structure, exercises and enforces its right in the PRC courts are yet to be tested. Because of this uncertainty, in the unlikely event that HKSCC becomes subject to winding up proceedings in Hong Kong it may not be possible to say with certainty if the SSE Securities and SZSE Securities will be regarded as held for the beneficial ownership of the Funds or as part of the general assets of HKSCC available for general distribution to its creditors. Clearing and Settlement Risk The HKSCC and ChinaClear have established the clearing links and each is a participant of each other to facilitate clearing and settlement of cross-boundary trades. For cross-boundary trades initiated in a market, the clearing house of that market will on one hand clear and settle with its own clearing participants, and on the other hand undertake to fulfil the clearing and settlement obligations of its clearing participants with the counterparty clearing house. Should the remote event of ChinaClear default occur and ChinaClear be declared as a defaulter, HKSCC s liabilities in Northbound trades under its market contracts with clearing participants will be limited to assisting clearing participants in pursuing their claims against ChinaClear. HKSCC will in good faith, seek recovery of the outstanding stocks and monies from ChinaClear through available legal channels or through ChinaClear s liquidation In that event, the Fund may suffer delay in the recovery process or may not be able to fully recover its losses from ChinaClear. Currency Risk Hong Kong and overseas investors will trade and settle SSE Securities and SZSE Securities in RMB only. Hence, the Funds will need to use RMB to trade and settle SSE Securities and SZSE Securities. No protection by Hong Kong Investor Compensation Fund Investment through the Connect Schemes is conducted through brokers, and is subject to the risks of default by such brokers in their obligations. The Fund s investments through Northbound trading under the Connect Schemes are not covered by Hong Kong s Investor Compensation Fund. Hong Kong s Investor Compensation Fund is established to pay compensation to investors of any nationality who suffer pecuniary losses as a result of default of a licensed intermediary or authorised financial institution in relation to exchange-traded products in Hong Kong. Since default matters in the Northbound Trading Link via the Connect Schemes does not involve products listed or traded in SEHK or Hong Kong Futures Exchange Limited, they will not be covered by the Investor Compensation Fund. On the other hand, since a Fund is carrying out Northbound trading through securities brokers in Hong Kong but not the PRC brokers, therefore not protected by the China Securities Investor Protection Fund. Corporate Actions and Shareholders Meetings Notwithstanding the fact that HKSCC does not claim proprietary interests in the SSE Securities and SZSE Securities held in its omnibus stock account in ChinaClear, ChinaClear as the share registrar for SSE and SZSE listed companies will still treat HKSCC as one of the shareholders when it handles corporate actions in respect of such SSE Securities and SZSE Securities. HKSCC will monitor the corporate actions affecting SSE Securities and SZSE Securities and keep the relevant brokers or custodians participating in CCASS ( CCASS participants ) informed of all such corporate actions that require CCASS participants to take steps in order to participate in them. SSE-/SZSE-listed companies usually announce information regarding their annual general meetings/extraordinary general meetings about two to three weeks before the meeting date. A poll is called on all resolutions for all votes. HKSCC will advise CCASS participants of all general meeting details such as meeting date, time, venue and the number of resolutions. The HKSCC will keep CCASS participants informed of corporate actions of SSE Securities and SZSE Securities (as defined above). Where the articles of association of a listed company do not prohibit the appointment of proxy/multiple proxies by its shareholder, HKSCC will make arrangements to appoint one or more investors as its proxies or representatives to attend shareholders meetings when instructed. Further, investors (with holdings reaching the thresholds required under the PRC regulations and the articles of associations of listed companies) may, through their CCASS participants, pass on proposed resolutions to listed companies via HKSCC under the CCASS rules. HKSCC will 26

202 pass on such resolutions to the companies as shareholder on record if so permitted under the relevant regulations and requirements. Hong Kong and overseas investors (including the Fund) are holding SSE Securities and SZSE Securities traded via the Connect Schemes through their brokers or custodians, and they will need to comply with the arrangement and deadline specified by their respective brokers or custodians (i.e. CCASS participants). The time for them to take actions for some types of corporate actions of SSE Securities and SZSE Securities may be very short. Therefore, it is possible that the Fund may not be able to participate in some corporate actions in a timely manner. Foreign Shareholding Restrictions China Securities Regulatory Commission ( CSRC ) stipulates that, when holding China A shares through the Connect Schemes, Hong Kong and overseas investors are subject to the following shareholding restrictions: - shares held by a single foreign investor (such as a Fund) investing in a listed company must not exceed 10 % of the total issued shares of such listed company; and - total shares held by all foreign investors (i.e. Hong Kong and overseas investors) who make investment in a listed company must not exceed 30 % of the total issued shares of such listed company. When the aggregate foreign shareholding of an individual China A shares reaches 26 %, SSE or SZSE, as the case may be, will publish a notice on its website ( for SSE and for SZSE). If the aggregate foreign shareholding exceeds the 30% threshold, the foreign investors concerned will be requested to sell the shares on a last-in-first-out basis within five trading days. Operational Risk The Connect Schemes provide a channel for investors from Hong Kong and overseas to access the China stock markets directly. The Connect Schemes are premised on the functioning of the operational systems of the relevant market participants. Market participants are able to participate in this programme subject to meeting certain information technology capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing house. Market participants generally have configured and adapted their operational and technical systems for the purpose of trading China A shares through the Connect Schemes. However, it should be appreciated that the securities regimes and legal systems of the two markets differ significantly and in order for the program to operate, market participants may need to address issues arising from the differences on an on-going basis. Further, the connectivity in the Connect Schemes requires routing of orders across the border SEHK has set up an order routing system ( China Stock Connects System ) to capture, consolidate and route the cross boundary orders input by exchange participants). There is no assurance that the systems of the SEHK and market participants will function properly or will continue to be adapted to changes and developments in both markets. In the event that the relevant systems failed to function properly, trading in both markets through the programme could be disrupted. A Fund s ability to access the China A share market (and hence to pursue its investment strategy) will be adversely affected. Regulatory Risk The Connect Schemes will be subject to regulations promulgated by regulatory authorities and implementation rules made by the stock exchanges in the PRC and Hong Kong. Further, new regulations may be promulgated from time to time by the regulators in connection with operations and cross-border legal enforcement in connection with cross-border trades under the Connect Schemes. It should be noted that the current regulations and rules on the Connect Schemes are subject to change which may have potential retrospective effect. There can be no assurance that the Connect Schemes will not be abolished. A Fund, which may invest in the PRC markets through the Connect Schemes, may be adversely affected as a result of such changes. Suspension Risk Each of the SEHK, SSE and SZSE reserves the right to suspend Northbound and/or Southbound trading if necessary for ensuring an orderly and fair market and that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension is triggered. Where a suspension in the Northbound trading through the Connect Schemes is effected, a Fund s ability to access the PRC market will be adversely affected. Restrictions on selling imposed by front-end monitoring PRC regulations require that before an investor sells any share, there should be sufficient shares in the account; otherwise SSE or SZSE will reject the sell order concerned. 27

203 SEHK will carry out pre-trade checking on China A shares sell orders of its participants (i.e. the stock brokers) to ensure there is no over-selling. Generally, if a Fund desires to sell certain China A shares it holds, it must transfer those China A shares to the respective accounts of its brokers before the market opens on the day of selling ( trading day ). If it fails to meet this deadline, it will not be able to sell those shares on the trading day. Because of this requirement, a Fund may not be able to dispose of holdings of China A shares in a timely manner. However, a Fund may request a custodian to open a special segregated account ( SPSA ) in CCASS to maintain its holdings in China A shares under the enhanced pre-trade checking model. Each SPSA will be assigned a unique Investor ID by CCASS for the purpose of facilitating China Stock Connects System to verify the holdings of an investor such as a Fund. Provided that there is sufficient holding in the SPSA when a broker inputs a Fund s sell order, the Fund will be able to dispose of its holdings of China A shares (as opposed to the practice of transferring China A shares to the broker s account under the current pre-trade checking model for non-spsa accounts). Opening of the SPSA accounts for the Fund will enable it to dispose of its holdings of China A shares in a timely manner. Differences in Trading Days The Connect Schemes will only operate on days when both the PRC and the Hong Kong stock markets are open for trading and when banks in both markets are open on the corresponding settlement days. So it is possible that there are occasions when it is a normal trading day for the PRC stock markets but Hong Kong investors (such as a Fund) cannot carry out any China A shares trading. Due to the differences in trading days, the Fund may be subject to a risk of price fluctuations in China A shares on a day that the PRC stock markets are open for trading but the Hong Kong stock market is closed. Recalling of Eligible Stocks When a stock is recalled from the scope of eligible stocks for trading via the Connect Schemes, the stock can only be sold but restricted from being bought. This may affect the investment portfolio or strategies of the Fund, for example, when a Fund wishes to purchase a stock which is recalled from the scope of eligible stocks. Risks associated with the Small and Medium Enterprise Board of the SZSE ( SME Board ) and/or ChiNext Board Certain Funds may have exposure to stocks listed on SME Board and/or ChiNext Board. Higher Fluctuation on Stock Prices Listed companies on the SME Board and/or ChiNext Board are usually of emerging nature with smaller operating scale. Hence, they are subject to higher fluctuation in stock prices and liquidity and have higher risks and turnover ratios than companies listed on the Main Board of the SZSE ( Main Board ). Over-Valuation Risk Stocks listed on SME Board and/or ChiNext Board may be overvalued and such exceptionally high valuation may not be sustainable. Stock price may be more susceptible to manipulation due to fewer circulating shares. Differences in Regulation The rules and regulations regarding companies listed on ChiNext Board are less stringent in terms of profitability and share capital than those in the Main Board and SME Board. Delisting risk It may be more common and faster for companies listed on the SME Board and/or ChiNext Board to delist. This may have an adverse impact on a Fund if the companies that it invests in are delisted. Investments in the SME Board and/or ChiNext Board may result in significant losses for a Fund and its investors. Taxation in People s Republic of China The tax regime in the People s Republic of China is less well defined, may be subject to unpredictable change and may permit retroactive taxation thus the Fund could become subject to a local tax liability that had not reasonably been anticipated. Such uncertainty could necessitate significant provisions being made by a Fund in the Net Asset Value calculations for foreign taxes while it could also result in a Fund incurring the cost of a payment made in good faith to a fiscal authority where it was eventually found that a payment need not have been made. 28

204 There are risks and uncertainties associated with the current PRC tax laws, regulations and practice in respect of capital gains realised via RQFII quota or the Connect Schemes or access products on the Fund s investments in the PRC (which may have retrospective effect). Any increased tax liabilities on the fund may adversely affect the Fund s value. Renminbi Currency and Conversion Risk RMB is currently not a freely convertible currency and is subject to exchange control policies and restrictions. The value of the assets of the Fund as measured in the Base Currency of a Fund, may be affected unfavourably by fluctuations in currency rates and exchange control regulations. There can be no assurance that the RMB will not be subject to devaluation or revaluation or that shortages in the availability of foreign currency will not develop. Non-RMB based investors are exposed to foreign exchange risk and there is no guarantee that the value of RMB against the investors base currencies will not depreciate. Any depreciation of RMB could adversely affect the value of investor s investment in the Fund. Although offshore RMB (CNH) and onshore RMB (CNY) are the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors. Under exceptional circumstances, payment of redemptions and/or dividend payment in RMB may be delayed due to the exchange controls and restrictions applicable to RMB. Tax Reporting Investors should also note that, given the wide range of instruments in which a Fund is able to invest, the level and nature of income generated by the Fund in different accounting periods could vary significantly. Consequently, depending on the tax status of investors and the place where they may be subject to tax, this could also impact on the manner in which their share of any income will need to be reported and taxed. Further information concerning the potential tax treatment of investors is provided under the heading Taxation in the Prospectus. RQFII Risk Certain Funds may make investments that are tied economically to issuers from the PRC. This exposure to the Chinese market may be obtained via the Renminbi Qualified Foreign Institutional Investor ( RQFII ) scheme or via the Shanghai- Hong Kong Stock Connect program ( SC ) within certain investment quotas as approved under and subject to applicable Chinese regulatory requirements. RQFII Regulatory Risks The RQFII regime is governed by rules and regulations as promulgated by the relevant authorities in the PRC, including the China Securities Regulatory Commission ( CSRC ), the State Administration of Foreign Exchange ( SAFE ) and the People s Bank of China ( PBOC ) and/or other relevant authorities (the RQFII Regulations ). Certain investment managers that meet the relevant prescribed eligibility requirements under the RQFII Regulations may in the future apply to be granted a RQFII license and quota (each a Barings RQFII, together Barings RQFIIs ). As the RQFII Regulations have a relatively short history and their application and interpretation remain relatively untested, there is uncertainty as to how they will be applied and interpreted by the PRC authorities or how regulators may exercise the wide discretionary powers given to them thereunder in future. A Fund s ability to make the relevant investments or to fully implement or pursue its investment objective and strategy is subject to the applicable laws, rules and regulations (including restrictions on investments and repatriation of principal and profits) in the PRC, which are subject to change and such change may have potential retrospective effect. Any changes to the relevant rules may have a material adverse impact on Unitholders investment in a Fund. If a Fund invests through the RQFII scheme, it will be subject to some or all of the following additional risks. Under the SAFE s and PBOC s RQFII quota administration policy, Barings RQFII may have the flexibility to allocate their RQFII quota across different Funds, or subject to SAFE s and PBOC s approvals, as the case may be, to other products which are open-ended funds and/or to products and/or accounts that are not open ended funds. Barings RQFIIs may therefore allocate RQFII quota to a Fund, or allocate RQFII quota which may otherwise be available to a Fund to other products and/or accounts. Subject to applicable rules and approvals, the RQFII quota(s) to be obtained by the Barings RQFIIs may be utilised by the Funds they manage and / or by the funds managed by other investment managers of the Barings Group who do not currently hold a RQFII license and quota. In the latter case, in accordance with the RQFII Regulations, the Barings RQFIIs will retain an overall oversight responsibility on the use of the RQFII quota, but will not take on any discretionary investment management role in respect of the Funds managed by such other investment managers. RQFII Regulations may be amended from time to time and include (but are not limited to): (i) the Pilot Scheme for Domestic Securities Investment through Renminbi Qualified Foreign Institutional Investors issued by the CSRC, the PBOC and the SAFE and effective from 1 March 2013; 29

205 (ii) the Implementation Rules for the Pilot Scheme for Domestic Securities Investment through Renminbi Qualified Foreign Institutional Investors issued by the CSRC and effective from 1 March 2013; (iii) the Circular on Issues Related to the Pilot Scheme for Domestic Securities Investment through Renminbi Qualified Foreign Institutional Investors issued by the SAFE and effective from 21 March 2013 (the RQFII Measures ); (iv) the Notice of the People s Bank of China on the Relevant Matters concerning the Implementation of the Pilot Scheme for Domestic Securities Investment through Renminbi Qualified Foreign Institutional Investors, issued by the PBOC and effective from 2 May 2013; and (v) any other applicable regulations promulgated by the relevant authorities. The RQFII Regulations are relatively new. The application and interpretation of such investment regulations are therefore relatively untested and there is no certainty as to how they will be applied as the PRC authorities and regulators have been given wide discretion in such investment regulations and there is no precedent or certainty as to how such discretion may be exercised now or in the future. RQFII Quota Risks To the extent a Barings RQFII has utilised its entire RQFII quota, the Barings RQFII may, subject to any applicable regulations, apply for an increase of its RQFII quota which may be utilised by the Funds, other clients of the Barings RQFII or other products managed by the Barings RQFII. There can however be no assurance that additional RQFII quota can be obtained to fully satisfy subscription requests in the relevant Funds, which may result in a need to close such Funds to further subscriptions, to reject and/or (pending receipt of additional RQFII quota) to defer all or part of any new subscription requests, subject to the provisions of the Prospectus. On the other hand, the size of the quota granted to a Barings RQFII may generally be reduced or cancelled by the relevant Chinese authorities if this Barings RQFII is unable to use its RQFII quota effectively within one (1) year since the quota is granted. Also, regulatory sanctions may be imposed on Barings RQFIIs if the latter (or the RQFII local custodian please see RQFII Custody Risks below) breach any provision of the RQFII Regulations, which could potentially result in the revocation of the RQFII quota or other regulatory sanctions that may impact on the portion of the quota made available for investment by the relevant Funds. Should a Barings RQFII lose its RQFII status or its investment quota is revoked or reduced, a Fund may no longer be able to invest directly in the PRC or may be required to dispose of its investments in the PRC domestic securities market held through the quota, which could have an adverse effect on its performance or result in a significant loss. A Fund may suffer losses if there is insufficient RQFII quota allocated for the Fund to make investments, the approval of the Barings RQFII is being revoked/terminated or otherwise invalidated as the Fund may be prohibited from trading of relevant securities and repatriation of the Fund s monies, or if any of the key operators or parties (including RQFII Custodian/PRC brokers) is bankrupt/in default and/or is disqualified from performing its obligations (including execution or settlement of any transaction or transfer of monies or securities). RQFII Repatriation Risks A Fund may be impacted by the rules and restrictions under the RQFII Regulations (including investment restrictions, limitations on foreign ownership or holdings), which may have an adverse impact on its performance and/or its liquidity. The SAFE regulates and monitors the repatriation of funds out of the PRC by RQFIIs pursuant to the RQFII Regulations. Repatriations by RQFIIs in respect of an open-ended RQFII fund (as defined under RQFII Regulations), such as the relevant Funds, conducted in RMB are currently conducted daily and are not subject to repatriation restrictions or prior approval. There is no assurance, however, that RQFII Regulations will not change or that repatriation restrictions will not be imposed in the future. Any restrictions on repatriation of the invested capital and net profits may impact on the relevant Fund s ability to meet redemption requests from the Unitholders. In extreme circumstances, the relevant Funds may incur significant loss due to limited investment capabilities, or may not be able fully to implement or pursue its investment objectives or strategies, due to RQFII investment restrictions, illiquidity of the PRC s securities market, and delay or disruption in execution of trades or in settlement of trades. RQFII Custody Risks Where a Fund invests in fixed income securities traded on the interbank bond market and the exchange markets in the PRC through a Barings RQFII quota, such securities will be maintained by a local custodian (the RQFII Custodian ) pursuant to PRC regulations through securities accounts with the China Securities Depository and Clearing Corporation Limited or the China Central Depository & Clearing Co. Ltd and/or the Shanghai Clearing House Co. Ltd. and such other relevant depositories in such name as may be permitted or required in accordance with PRC law. Cash shall be maintained in a cash account with the RQFII Custodian. 30

206 The Depositary will make arrangements to ensure that the RQFII Custodian has appropriate procedures to properly safekeep the assets of the relevant Funds including maintaining records that clearly show that such Funds assets are recorded in the name of such Funds and segregated from the other assets of the RQFII Custodian. Under RQFII Regulations, any securities acquired by a Fund through a RQFII quota held by Barings RQFIIs will be maintained by the RQFII Custodian and should be registered in the joint names of the Barings RQFII (as the RQFII licence holder) and the Fund and for the sole benefit and use of the Fund. However, it is possible that the judicial and regulatory authorities in China may interpret the position differently in future and determine that Barings RQFIIs could be the party entitled to the securities in such securities trading account. Such securities may be vulnerable to a claim by a liquidator of the Barings RQFII and may not be as well protected as if they were registered solely in the name of the Fund. In particular, there is a risk that creditors of the Barings RQFII may incorrectly assume that the Fund's assets belong to the Barings RQFII and such creditors may seek to gain control of the Fund's assets to meet the Barings RQFII s liabilities owed to such creditors. Investors should also note that cash deposited in the cash account of the relevant Funds with the RQFII Custodian will not be segregated but will be a debt owing from the RQFII Custodian to the relevant Funds as a depositor. Such cash will be co-mingled with cash belonging to other clients of the RQFII Custodian. In the event of bankruptcy or liquidation of the RQFII Custodian, the relevant Funds will not have any proprietary rights to the cash deposited in such cash account, and the relevant Funds will become an unsecured creditor, ranking pari passu with all other unsecured creditors, of the RQFII Custodian. The relevant Fund may face difficulty and/or encounter delays in recovering such debt, or may not be able to recover it in full or at all, in which case the Fund will suffer losses. Also, the Fund may incur losses due to the acts or omissions of the RQFII Custodian in the execution or settlement of any transaction or in the transfer of any funds or securities. PRC Brokerage Risks under RQFII regime The execution and settlement of transactions or the transfer of any funds or securities may be conducted by PRC brokers appointed by the Barings RQFIIs. There is a risk that a Fund may suffer losses from the default, bankruptcy or disqualification of the PRC brokers. In such event, the Fund may be adversely affected in the execution or settlement of any transaction or in the transfer of any funds or securities. In selection of PRC brokers, the Barings RQFIIs will have regard to factors such as the competitiveness of commission rates, size of the relevant orders and execution standards. If the Barings RQFIIs consider appropriate and if under market or operational constraints, it is possible that a single PRC broker will be appointed and the Fund may not necessarily pay the lowest commission or the trades may not be executed at the best price available in the market at the relevant time. EQUITY RISKS Investment in Equities A Fund s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors. When the equity markets are extremely volatile a Fund s Net Asset Value may fluctuate substantially. Equity-Related Securities A Fund may invest in equity-related securities such as structured notes, participation notes or equity-linked notes. These are usually issued by a broker, an investment bank or a company and are therefore subject to the risk of insolvency or default of the issuer. If there is no active market in these instruments, this may lead to liquidity risk. Further, investment in equity-linked securities may lead to dilution of performance of a Fund when compared to the other funds which invest directly in similar underlying assets due to fees embedded in the notes. The aforesaid circumstances may adversely affect the Net Asset Value per Unit of a Fund. Convertible bonds are a hybrid between debt and equity, permitting holders to convert into shares in the company issuing the bond at a specified future date. As such, convertibles will be exposed to equity movement and greater volatility than straight bond investments. Investments in convertible bonds are subject to the same interest rate risk, credit risk, liquidity risk and prepayment risk associated with comparable straight bond investments. EMERGING MARKETS Investment in Emerging Markets (and/or Frontier Markets) Where a Fund invests in emerging markets it may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility. High market volatility and potential settlement difficulties in certain markets may also result in significant fluctuations in the prices of the securities traded on such markets and thereby may adversely affect the value of a Fund. Currency conversion and repatriation of investment income, capital and proceeds of sale by a Fund may be limited or 31

207 require governmental consents. A Fund could be adversely affected by delays in, or refusal to grant, any such approval for the repatriation of funds or by any official intervention affecting the process of settlement of transactions. Stock exchanges and other such clearing infrastructure may lack liquidity and robust procedures and may be susceptible to interference. Political, Social and Economic Instability Some countries have a higher than usual risk of nationalisation, expropriation or confiscatory taxation, any of which might have an adverse effect on a Fund s investments in those countries. Developing countries can be subject to a higher than usual risk of political change, government regulation, social instability or diplomatic developments (including war) which could adversely affect the economies of such countries and thus a Fund s investments in those countries. Furthermore, it may be difficult for a Fund to obtain effective enforcement of its rights in certain developing countries. Market Liquidity and Foreign Investment Infrastructure Trading volume on the stock exchange of most developing countries can be substantially less than in the leading stock markets of the developed world, so that the purchase and sale of holdings may take longer. Volatility of prices can be greater than in the developed world. This may result in considerable volatility in the value of a Fund and, if sales of a significant amount of securities have to be effected at short notice in order to meet redemption requests, such sales may have to be effected at unfavourable prices which could have an adverse effect on the value of a Fund and therefore the Net Asset Value per Unit. In certain developing countries, portfolio investment by foreign investors such as the Funds may require consent or be subject to restrictions. These restrictions and any further restrictions introduced in the future could limit the availability to the Funds of attractive investment opportunities. Corporate Disclosure, Accounting and Regulatory Standards Companies in developing countries are generally not subject to accounting, auditing and financial reporting standards, practices and disclosure requirements comparable to those applicable to companies in the developed world. In addition, there is generally less government supervision and regulation of stock exchanges, brokers and listed companies in most developing countries than in countries with more advanced securities markets. As a result, there may be less information available publicly to investors in developing country securities; such information as is available may be less reliable. Availability and Reliability of Official Data Less statistical data is available in relation to the securities markets of developing countries relative to the securities markets in, for example the United Kingdom; such data as is available may be less reliable. Legal Risk Many laws in developing countries are new and largely untested. As a result a Fund may be subject to a number of risks, including but not limited to inadequate investor protection, contradictory legislation, incomplete, unclear and changing laws, lack of established avenues for legal redress and a lack of enforcement of existing regulations. Furthermore, it may be difficult to obtain and enforce a judgement in certain countries in which assets of a Fund are invested. Taxation Taxation of dividends, interest and capital gains received by foreign investors varies among developing countries and, in some cases, is comparatively high. In addition, certain developing countries are amongst those countries that have less well defined tax laws and procedures and such laws may permit retroactive taxation so that a Fund investing in such a country could in the future become subject to a local tax liability that could not have been reasonably anticipated. Such uncertainty could necessitate significant provisions for foreign taxes being made by a Fund in its Net Asset Value calculations. The making and potential impact of such provisions is considered further under the General Risks - Taxation section. Settlement and Custody Risk As the Funds may invest in markets where the trading, settlement and custodial systems are not fully developed, there is an increased risk of the assets of a Fund which are traded in such markets being lost through fraud, negligence, oversight or catastrophe such as a fire. In other circumstances such as the insolvency of a sub-custodian or registrar, or retroactive application of legislation, the Funds may not be able to establish title to investments made and may suffer loss as a result. In such circumstances, the Fund may find it impossible to enforce its right against third parties. As these Funds may invest in markets where the trading, settlement and custodial systems are not fully developed, the assets of such Fund which are traded in such markets and which have been entrusted to sub-custodians in such markets may be exposed to risk in circumstances in which the Depositary will have no liability. 32

208 Risks include but are not limited to: a non-true delivery versus payment settlement, which could increase the credit risk with the counterparty. Delivery versus payment is a settlement system that stipulates that cash payment must be made prior to or simultaneously with the delivery of the security; a physical market (as opposed to electronic book keeping of records) and, as a consequence, the circulation of forged securities; poor information in regards to corporate actions; registration process that impacts the availability of the securities; lack of appropriate legal/fiscal infrastructure advices; lack of compensation/risk fund with a central depository. FIXED INCOME SECURITIES Investment in Fixed Income Securities Investment in bonds or fixed income securities is subject to liquidity, interest rate and credit risks (i.e. the risk of default). The value of a bond will fall if an issuer defaults. Fixed income securities are often rated by credit rating agencies. Credit ratings indicate the probability that an issuer will fail to make timely payment of capital and / or interest that is due to be paid to investors under the terms of the security i.e. the risk of default. Certain credit rating agencies are designated by the U.S. Securities and Exchange Commission as Nationally Recognized Statistical Rating Organizations (NRSROs). Each NRSRO has an alpha or alphanumerical scale that expresses their ratings. An example of an NRSRO is Standard and Poor s, their rating scale (expressed here in increasing order of default risk) is; AAA, AA+, AA, AA-, A+, A, A-, BBB+, BBB, BBB-, BB+, BB, BB-, B+, B, B-, CCC+, CCC, CCC-, CC, C. The identifier D is also used, in order to signify that a security has already defaulted. Securities rated between the AAA rating level and the BBB- rating level are commonly referred to as investment grade. These securities would be expected to have a very low risk of default. Securities with ratings of BB+, and lower, are commonly referred to as sub-investment grade. These securities would be expected to have a higher risk of default, and a greater sensitivity to economic conditions, than investment grade securities. A Fund may in accordance with its investment policy only be permitted to invest in securities / investments of a certain credit rating. Credit ratings may however not always be an accurate or reliable measure of the strength of the securities / investments being invested in. Credit ratings assigned by rating agencies are also subject to limitations and do not guarantee the creditworthiness of the security and/or issuer at all times. Where such credit ratings prove inaccurate or unreliable, losses may be incurred by any Fund which has invested in such securities / investments. The volume of transactions effected in certain international bond markets may be appreciably below that of the world s largest markets, such as the United States. Accordingly, a Fund s investment in such markets may be less liquid and their prices may be more volatile than comparable investments in securities trading in markets with larger trading volumes. Moreover, the settlement periods in certain markets may be longer than in others which may affect portfolio liquidity. Credit Risk Fixed Income A Fund may invest in fixed income securities which have low credit status which may represent a higher credit risk than funds which do not invest in such securities. Investment in securities issued by corporations may also represent a higher credit risk than investment in securities issued by governments. There can be no assurance that the issuers of fixed income securities in which a Fund may invest will not be subject to credit difficulties, leading to either the downgrading of such securities or instruments, or to the loss of some or all of the sums invested in or payments due on such securities or instruments. Interest Rate Risk The fixed income instruments in which a Fund may invest are subject to interest rate risk. In general, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise. 33

209 Downgrading Risk The credit rating of a debt instrument or its issuer may subsequently be downgraded. In the event of such downgrading, the value of the Fund may be adversely affected. The Investment Manager may or may not be able to dispose of the debt instruments that are being downgraded. Zero Coupon Risk Relative to interest paying securities of similar maturity, the market prices of securities structured as zero coupon are generally affected to a greater extent by interest rate changes. These securities tend to be more volatile than securities which pay interest periodically. Sovereign Debt Risk A Fund s investment in securities issued or guaranteed by governments may be exposed to political, social and economic risks. In adverse situations, the sovereign issuers may not be able or willing to repay the principal and/or interest when due or may request the Fund to participate in restructuring such debts. A Fund may suffer significant losses when there is a default of sovereign debt issuers. A government entity s willingness or ability to repay principal and interest due in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its foreign reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt service burden to the economy as a whole, the government entity s policy towards the International Monetary Fund and the political constraints to which a government entity may be subject. Government entities may also be dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce principal and interest arrearage on their debt. Such commitments may be conditioned on a government entity s implementation of economic reforms and/or economic performance and the timely service of such debtor s obligations. Failure to implement such reforms, achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of such third parties commitments to lend funds to the government entity, which may further impair such debtor s ability or willingness to service its debt on a timely basis. Investment in Sub-Investment Grade Securities A Fund may invest in debt securities rated sub-investment grade (e.g. with a credit rating of less than BBB- on the Standard & Poor s scale or as equivalent in respect of other internationally recognised credit rating agencies) or unrated. Such securities are generally subject to lower liquidity, higher volatility and greater risk of loss of principal and interest than high-rated debt securities. The risk of loss due to default by such issuers is significantly greater because subinvestment grade securities generally are unsecured and are lower in the hierarchy of creditors. The value of sub-investment grade securities tends to go up and down more quickly than investment grade securities, reflecting short-term corporate and market developments. Investment grade securities respond primarily to fluctuations in the general level of interest rates. There are fewer investors in sub-investment grade securities and it may be harder to sell such securities. Market quotations may not be available for high yield debt securities, and judgment plays a greater role in valuing high yield corporate debt securities than is the case for securities for which more external sources for quotations and last sale information is available. DERIVATIVE TECHNIQUES AND INSTRUMENTS Investment in Derivatives Investments of a Fund may be composed of securities with varying degrees of volatility and may comprise, from time to time, financial derivative instruments. Since financial derivative instruments may be geared instruments, their use may result in greater fluctuations of the Net Asset Value of the Fund concerned. Risks associated with financial derivative instruments include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The leverage element/component of a financial derivative instrument can result in a loss significantly greater than the amount invested in the financial derivative instrument by the Unit Trust. Exposure to financial derivative instruments may lead to a high risk of significant loss by the Unit Trust. A Fund may use financial derivative instruments for efficient portfolio management or to attempt to hedge or reduce the overall risk of its investments or, if disclosed in relation to any Fund, financial derivative instruments may be used as part of the principal investment policies and strategies. Such strategies might be unsuccessful and incur losses for the Fund, due to market conditions. A Fund s ability to use these strategies may be limited by market conditions, regulatory limits and tax considerations. Investments in financial derivative instruments are subject to normal market fluctuations and other risks inherent in investment in securities. In addition, the use of financial derivative instruments involves special risks, including: 1. dependence on the Investment Manager s ability to accurately predict movements in the price of the underlying security; 2. imperfect correlation between the movements in securities or currency on which a financial derivative instruments contract is based and movements in the securities or currencies in the relevant Fund; 3. the 34

210 absence of a liquid market for any particular instrument at any particular time which may inhibit the ability of a Fund to liquidate a financial derivative instrument at an advantageous price; 4. due to the degree of leverage inherent in derivatives contracts, a relatively small price movement in a contract may result in an immediate and substantial loss to a Fund; and 5. Possible impediments to efficient portfolio management or the ability to meet repurchase requests or other short term obligations because a percentage of a Fund s assets may be segregated to cover its obligations. Forward Foreign Exchange Transactions Forward contracts, unlike futures contracts, are not traded on exchanges and are not standardised; rather, banks and dealers act as principals in these markets, negotiating each transaction on an individual basis, and therefore have an increased counterparty risk. If a counterparty defaults, the Fund may not get the expected payment or delivery of assets. This may result in the loss of the unrealised profit. Futures Contracts A futures contract is a standardised contract between two parties to exchange a specified asset of standardised quantity and quality for a price agreed today (the futures price or the strike price) with delivery occurring at a specified future date, the delivery date. The contracts are normally traded on a futures exchange. The amount of loss (as well as profit) is unlimited. For example, where the underlying specified asset is a commodity index, the futures contract may be illiquid because certain commodity exchanges limit fluctuations in certain future contract prices during a single day by regulations referred to as daily price fluctuation limits or daily limits. Once the price of a contract for a particular future has increased or decreased by an amount equal to the daily limit, positions in the future can neither be taken nor liquidated unless traders are willing to affect trades at or within the limit. A Fund may also be exposed to a credit risk in relation to the counterparties with whom they transact or place margin or collateral in respect of transactions and may bear the risk of counterparty default. A Fund may be invested in certain futures contracts which may involve the assumption of obligations as well as rights and assets. Assets deposited as margin with brokers may not be held in segregated accounts by the brokers and may therefore become available to the creditors of such brokers in the event of their insolvency or bankruptcy. Hedging Techniques A Fund may utilise a variety of financial instruments, such as options, interest rate swaps, futures and forward contracts, etc. to seek to hedge against declines in the values of the Fund s positions as a result of changes in currency exchange rates, equity markets, market interest rates and other events. Hedging against a decline in the value of a Fund s positions will not eliminate fluctuations in the values of the Fund s positions or prevent losses if the values of such positions decline, but it does establish other positions designed to gain from those same developments, thus reducing the decline in the Fund s value. However, such hedging transactions also limit the opportunity for gain if the value of the Fund s positions should increase. It may not be possible for the Fund to hedge against a change or event at a price sufficient to protect its assets from the decline in value of the Fund s positions anticipated as a result of such change. In addition, it may not be possible to hedge against certain changes or events at all or the Investment Manager may choose not to. Furthermore, there is no guarantee that a Fund s use of financial derivatives for hedging will be entirely effective and in adverse situations, where the use of financial derivatives becomes ineffective, a Fund may suffer significant loss. Leverage Risk When a Fund purchases a security, the risk to the Fund is limited to the loss of its investment. In the case of a transaction involving futures, forwards, swaps or options, that Fund's liability may be potentially unlimited until the position is closed. Over the Counter (OTC) Transactions An OTC transaction takes place when a financial instrument is traded directly between two parties rather than through a stock exchange. Where a Fund acquires securities through an OTC transaction, there is no guarantee that the Fund will be able to realise the fair value of such securities due to their tendency to have limited liquidity. Absence of Regulation In general, there is less regulation and supervision of OTC transactions than for transactions entered into on some stock exchanges. In addition, many of the protections afforded to participants on some stock exchanges might not be available in connection with OTC transactions. Counterparty Default A Fund may also have credit exposure to counterparties by virtue of positions in swap agreements, repurchase transactions, forward exchange rate and other financial or derivative contracts held by the Fund. OTC transactions are 35

211 executed in accordance with an agreed terms and conditions drawn up between the Fund and the counterparty. If the counterparty experiences credit issues and therefore defaults on its obligation and a Fund is delayed or prevented from exercising its rights with respect to the investments in its portfolio, it may experience a decline in the value of its position, lose income and incur costs associated with asserting its rights. Counterparty exposure will be in accordance with a Fund's investment restrictions. Regardless of the measures a Fund may implement to reduce counterparty risk, there can be no assurance that a counterparty will not default or that the Fund will not sustain losses on the transactions as a result. Options Transactions in options may also carry a high degree of risk. For purchased positions the risk to the option holder is limited to the purchase cost of establishing the position. Out of the Money (OTM) positions will see the value of the options position decrease, especially as the position nears expiry. Swap Agreements Swap agreements can be individually negotiated and structured to include exposure to a variety of different types of investments or market factors. Depending on their structure, swap agreements may increase or decrease a Fund s exposure to strategies, long term or short term interest rates, foreign currency values, corporate borrowing rates or other factors. Swap agreements can take many different forms and are known by a variety of names. Depending on how they are used, swap agreements may increase or decrease the overall volatility of a Fund. The most significant factor in the performance of swap agreements is the change in the specific interest rate, currency or other factors that determine the amounts of payments due to and from the counterparties. If a swap agreement calls for payments by a Fund, the Fund must be prepared to make such payments when due. In addition, if a counterparty s creditworthiness declines, the value of swap agreements with such counterparty can be expected to decline, potentially resulting in losses to the Fund. Risks Associated with Securities Financing Transactions Entering into total-return swaps create several risks for the Unit Trust and its investors. The relevant Fund is exposed to the risk that a counterparty to a securities financing transaction may default on its obligation to return assets equivalent to the ones provided to it by the relevant Fund. It is also subject to liquidity risk if it is unable to liquidate collateral provided to it to cover a counterparty default. Such transactions may also carry legal risk in that the use of standard contracts to effect securities financing transactions may expose a Fund to legal risks such as the contract may not accurately reflect the intention of the parties or the contract may not be enforceable against the counterparty in its jurisdiction of incorporation. Such transactions may also involve operational risks in that the use of securities financing transactions and management of collateral are subject to the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. Risks may also arise with respect to any counterparty's right of re-use of any collateral as outlined below under Operational Risk linked to Management of Collateral. Risks Associated with Stock Lending Stock lending may involve the risk that the borrower may fail to return the securities lent out in a timely manner and the value of the collateral may fall below the value of the securities lent out. Risks Associated with Repurchase Agreements In the event of the failure of the counterparty with which collateral has been placed, the Fund may suffer loss as there may be delays in recovering collateral placed out or the cash originally received may be less than the collateral placed with the counterparty due to inaccurate pricing of the collateral or market movements. Risks Associated with Reverse Repurchase Agreements In the event of the failure of the counterparty with which cash has been placed, the Fund may suffer loss as there may be delay in recovering cash placed out or difficulty in realising collateral or proceeds from the sale of the collateral may be less than the cash placed with the counterparty due to inaccurate pricing of the collateral or market movements. Taxation Where a Fund invests in derivatives, the issues described in the General Risks - Taxation section may also apply to any change in the taxation legislation or interpretation thereof of the governing law of the derivative contract, the derivative counterparty, the market(s) comprising the underlying exposure(s) of the derivative or the markets where a Fund is registered or marketed. 36

212 Legal Risks OTC derivatives are generally entered into pursuant to contracts based on the standards set by the International Swaps and Derivatives Association for derivatives master agreements which are negotiated by the parties. The use of such contracts may expose a Fund to legal risks such as the contract may not accurately reflect the intention of the parties or the contract may not be enforceable against the counterparty in its jurisdiction of incorporation. Operational Risk linked to Management of Collateral The use of OTC derivatives and the management of collateral received are subject to the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. Where cash collateral is reinvested, in accordance with the conditions imposed by the Central Bank, a Fund will be exposed to the risk of a failure or default of the issuer of the relevant security in which the cash collateral has been invested. The management of operational risk is established through policies set by the risk committee of the Investment Manager. These policies set standards for the high level assessment of risk and, monitoring and reporting of risk within the business and analysis of reported operational risk events. Borrowings Under the Trust Deed, the Manager is empowered to exercise all of the borrowing powers of the Unit Trust, subject to any limitations under the UCITS Regulations, and to charge the assets of the Unit Trust as security for any such borrowings. Under the UCITS Regulations, the Funds may not grant loans or act as guarantor on behalf of third parties, borrow money except for temporary borrowings in an amount not exceeding 10% of its net assets and except as otherwise permitted under the UCITS Regulations. The Funds may acquire foreign currency by means of a back-to-back loan agreement. Where a Fund has foreign currency borrowings which exceed the value of a back-to-back deposit, the Manager shall ensure that excess is treated as borrowing for the purposes of the UCITS Regulations. Subject to the provisions of the UCITS Regulations and the Central Bank UCITS Regulations, the Manager may, from time to time, where collateral is required to be provided by a Fund to a relevant counterparty in respect of derivatives transactions, pledge assets of the relevant Fund equal in value to the relevant amount of required collateral, to the relevant derivative counterparty. Charges and Expenses The following fees and expenses are applicable to each Fund. Fund Charges and Expenses Manager The Manager is entitled under the Trust Deed to charge a management fee at the rates per annum specified in the relevant Supplement. The management fee is payable monthly in arrears and will be calculated by reference to the Net Asset Value of each Fund attributable to the relevant Class as at each day as at which the Net Asset Value of the relevant Fund and the relevant Class is calculated. In relation to investment by a Fund in a collective investment scheme managed (i) directly or by delegation by the Manager or (ii) by another company with which the Manager is linked by common management and control or by a direct or indirect holding of more than 10% of the capital or voting rights of such company (collectively referred to as Related Funds ), the following conditions will apply: (a) (b) (c) no subscription, conversion or redemption fees on account of the Fund s investment in the Related Fund may be charged; no management fee may be charged at the level of the Related Fund; and where a commission (including a related commission) is received by the Manager or Investment Manager by virtue of their investment in the Related Fund, the commission must be repaid into the property of the relevant Fund. Investment Management The Manager will discharge the fees and expenses of the Investment Manager for the discretionary management of the assets of the Unit Trust out of its management fee. 37

213 Administration, Depositary and Operating Fee The Manager is also entitled to receive an administration, depositary and operating expenses fee (the Administration, Depositary and Operating Fee ) as set out in the relevant Fund s Supplement. The Administration, Depositary and Operating Fee payable will be a percentage of the Net Asset Value of each Class and will be accrued daily and be paid monthly in arrears. The Manager will pay the aggregate fees and expenses of the Administrator and Depositary, in addition to certain other fees and ongoing expenses such as the fees payable to permanent representatives and other agents of each Fund; the fees and expenses of each Fund s auditors and legal advisers; sub-custodian fees, expenses and direct transaction handling charges at normal commercial rates; fees or expenses involved (including the fees and expenses of paying agents) in registering and maintaining the registration of a Fund with any governmental agency or stock exchange in Ireland and in any other country; expenses in respect of portfolio and unit class currency hedging; reporting and publishing expenses, including the costs of printing, preparing, advertising and distributing prospectuses, Key Investor Information Documents, explanatory memoranda, periodical reports or registration statements; and the costs of reports to Unitholders of the Fund. The Administration, Depositary and Operating Fee does not include any other expenses including, but not limited to withholding tax, stamp duty or other taxes on the investments of the Fund (including fees of professional agents associated with processing and reclaiming such taxes); commissions and brokerage fees incurred with respect to the Fund s investments; interest on borrowings and bank charges incurred in negotiating, effecting or varying the terms of such borrowings (including any liquidity facility entered into in respect of a Fund); any commissions charged by intermediaries in relation to an investment in the Fund and such extraordinary or exceptional costs and expenses (if any) as may arise from time to time, such as material litigation in relation to the Unit Trust. Such expenses will generally be paid out of the Net Asset Value of the relevant Fund. Expenses will be charged to the Fund in respect of which they were incurred or, where an expense is not considered by the Depositary to be attributable to any one Fund, the expense will normally be allocated by the Depositary to all Funds pro rata to the Net Asset Value of the relevant Funds. Paying Agents Local laws/regulations may require the appointment of paying agents/ representatives/ distributors/ correspondent banks ( Paying Agents ) and maintenance of accounts by such Paying Agents through which subscription and redemption monies or distributions may be paid. Unitholders who choose or are obliged under local regulations to pay or receive subscription or realization monies or distributions via an intermediate entity rather than directly to or from the Depositary (e.g. a Paying Agent in a local jurisdiction) bear a credit risk against that intermediate entity with respect to (a) subscription monies prior to the transmission of such monies to the Depositary for the account of the Unit Trust or the relevant Fund and (b) realization and/or distribution monies payable by such intermediate entity to the relevant Unitholder. Commissions / Brokerage The Manager and any duly appointed delegate of the Manager is entitled under the Trust Deed to charge commissions and/or brokerage on transactions effected by them as agents for the Unit Trust. Where the Manager or any duly appointed delegate of the Manager successfully negotiates the recapture of a portion of the commissions charged by brokers or dealers in connection with the purchase and/or sale of securities for a Fund, the rebated commission shall be paid to the Fund. The Fund will generally pay brokerage at customary institutional brokerage rates. Transactions of the Fund may be entered into through associates of the Manager. The Manager and their associates will not receive cash or other rebates from brokers or dealers in respect of transactions for the Fund. Execution of transactions for the Fund will be consistent with best execution standards. Charges Deducted from Capital Each Fund normally pays its management fee and other fees and expenses out of income. However, where insufficient income is available, investors should note that the Manager may provide for a Fund to pay some or all of its management fee and other fees and expenses out of capital and out of both realised and unrealised capital gains less realised and unrealised capital losses. Unitholder Fees Preliminary Charge A Preliminary Charge of up to 5% may be added to the Net Asset Value per Unit and retained by the Manager out of which the Manager may pay commission to authorised agents. In respect of Class C and Class I Units, the Directors will not impose a Preliminary Charge. 38

214 The Manager is also entitled to add to the Net Asset Value per Unit for their own account, a charge sufficient to cover amounts paid by them on account of stamp duties and taxation in respect of the issue of Units and may also add a charge (not exceeding 1% of the Net Asset Value per Unit) for the account of the relevant Fund in respect of fiscal and purchase charges. It is not, however, the intention of the Manager to make any such additions in normal circumstances. Distributor Fee Class C Units shall also pay a distributor fee of 1% per annum of the Net Asset Value of the Fund attributable to the Classes. Such fee when applied will be payable to the distributor who has been appointed as a distributor pursuant to a placing agency agreement between the Manager or their delegate and the relevant distributor. The distributor fee shall be accrued daily and is payable quarterly in arrears. Redemption Charge The Manager is entitled under the Trust Deed, in calculating the Net Asset Value per Unit, to deduct from the Net Asset Value per Unit for the account of the appropriate Fund a charge (not exceeding 1% of such Net Asset Value per Unit) to meet duties and charges incurred in realising assets to provide monies to meet the redemption request but it is not the intention of the Manager to make any deduction in respect of such duties and charges in normal circumstances, other than in respect of the Class C Units for which a charge of 1% of the Net Asset Value attributable to the Class C Unit may be applied at the discretion of the Manager or its delegate. Should this policy change, the Unitholders will be given advance written notice of the intention to charge a redemption charge. Conversion Charge The Preliminary Charge and any other charges normally made on the issue of Units will not normally be made on a conversion but the Manager is entitled to make any such charges at their discretion. Administration of the Unit Trust Determination of Net Asset Value The Manager has delegated the determination of the Net Asset Value and the Net Asset Value per Unit to the Administrator which shall be carried out in accordance with generally accepted accounting principles. In calculating the Net Asset Value, the Administrator shall not be liable for any loss suffered by the Manager, the Unit Trust by reason of any error resulting from any inaccuracy in the information provided by any third party pricing service that the Administrator is directed to use by the Manager or the Investment Manager in accordance with the Unit Trust s valuation policy. In calculating the Net Asset Value and Net Asset Value per Unit, the Administrator shall not be responsible for the accuracy of financial data, opinions or advice furnished to it by the Manager or its delegates, the Investment Manager, or their agents and delegates including an external valuer, prime broker(s), market makers and/or independent third party pricing services. The Administrator may accept, use and rely on prices provided to it by the Manager or its delegates or other agreed independent third party pricing services for the purposes of determining the Net Asset Value and Net Asset Value per Unit and shall not be liable to the Unit Trust, the Manager, the Depositary, an external valuer, any Unitholder or any other person in so doing by reason of any error in the calculation of the Net Asset Value resulting from any inaccuracy in the information provided by the Manager, its delegates, an external valuer or other independent third party pricing services or its delegates that the Administrator is directed to use by the Manager, the Unit Trust, or an external valuer in accordance with the Manager Valuation Policy. The Manager, acknowledges and agrees that the Administrator has not been retained to act as an external valuer or independent valuation agent. In the event that there is an error in the calculation of the Net Asset Value of the Unit Trust, a Fund, or Class which results in a Unitholder receiving proceeds from the Unit Trust, the Manager reserves the right to seek to recover from such Unitholder any excess amount recovered by them or to re-issue a contract note with the correct Net Asset Value of the Unit Trust, the Fund, or Class. The Net Asset Value per Unit is calculated by dividing the value of the assets of the Fund, less its liabilities, by the total number of Units in issue as at that Dealing Day. The Net Asset Value per Unit is the resulting sum adjusted to two decimal places (five up four down). The method of establishing the Net Asset Value of any Fund is set out in the Trust Deed and summarised below. The Net Asset Value of each Fund shall be calculated in the Base Currency of the Fund by valuing the assets of the Fund in accordance with the valuation rules set out in the Trust Deed and summarised below and deducting the liabilities of the Fund. However, in respect of certain Funds where different Classes are available, the Net Asset Value of the Fund is calculated as set out below and is allocated between each Class in accordance with their respective values. The portion of the Net Asset Value allocated to each Class is divided by the number of Units of the relevant Class then in issue and the resultant amount is the Net Asset Value of the relevant Class. 39

215 In summary, quoted investments are valued at their last traded price (or, if no last traded price is available, at mid-market prices) and unquoted investments are valued on the probable realisable value estimated with care and in good faith by the Manager or a competent person, firm or corporation (including the Investment Manager) selected by the Manager and approved by the Depositary. Cash deposits and similar investments shall normally be valued at face value (together with accrued interest); certificates of deposit shall be valued by reference to the best bid price for certificates of deposit of like maturity, amount and credit risk on the relevant Dealing Day; and treasury bills and bills of exchange shall be valued with reference to prices ruling in the appropriate markets for such instruments of like maturity, amount and credit risk on the relevant Dealing Day. Collective investment schemes are valued, where appropriate, on the basis of the last published net asset value per share, or if unavailable, the last published bid price per share excluding any preliminary charges. Interest and other income and liabilities are, where practicable, accrued from day-to-day. Forward foreign exchange contracts shall be valued with reference to the prevailing market maker quotation, namely, the price at which a new forward contract of the same size and maturity could be undertaken or, if unavailable, at the settlement price as provided by the counterparty. Derivatives traded on a regulated market shall be valued at the settlement price as determined by the market. If the settlement price is not available, the value shall be the probable redemption value estimated with care and in good faith by the Manager or a competent person, firm or corporation (including the Investment Manager) selected by the Manager and approved by the Depositary. OTC derivative contracts will be valued daily either (i) on the basis of a quotation provided by the relevant counterparty and such valuation shall be approved or verified at least weekly by a party who is approved for the purpose by the Depositary and who is independent of the counterparty (the Counterparty Valuation ); or (ii) using an alternative valuation provided by the Manager or a competent person appointed by the Manager and approved for the purpose by the Depositary (the Alternative Valuation ). Where such Alternative Valuation method is used the Manager will follow international best practice and adhere to the principles on valuation of OTC instruments established by bodies such as IOSCO and AIMA and will be reconciled to the Counterparty Valuation on a monthly basis. Where significant differences arise these will be promptly investigated and explained. If the Manager deems it necessary, a specific investment may be valued using an alternative method of valuation approved by the Depositary. Where the value of an investment is not ascertainable as described above, the value shall be the probable redemption value estimated by the Manager with care and good faith or by a competent person appointed by the Manager and approved for the purpose by the Depositary. The Trust Deed also provides that notwithstanding the above, the Manager may with the consent of the Depositary adjust the value of any Investment if, having regard to currency, applicable rate of interest, maturity, marketability and/or such other considerations as they may deem relevant, they consider that such adjustment is required to reflect the fair value thereof. A description of fair value pricing and the circumstances where it may be applied is set out below. Fair Value Pricing Fair value pricing (FVP) may be defined as the application of the Manager s best estimate of the amount a Fund might receive on a sale, or expect to pay on a purchase, of one or more securities or even an entire portfolio of securities, at the time of the Fund s Valuation Point, with the intention of producing a fairer dealing price, thereby protecting ongoing, incoming and outgoing investors. In the opinion of the Manager, where market conditions may be such that the last applicable real time quoted price or the Valuation Point does not capture the best reflection of the buying and selling price of a stock, FVP may be applied. Due to the time differences between the closing of the relevant securities exchanges and the time of the Fund s Valuation Point, a Fund may apply FVP on its investments more frequently than it does other securities and on some Funds this may occur on a daily basis. The Manager has determined that movements in relevant indices or other appropriate market indicators, after the close of the securities exchanges, may demonstrate that market quotations are unreliable and may trigger fair value pricing for certain securities. Therefore the fair values assigned to a Fund s investments may not be the quoted or published prices of the investments on their primary markets or exchanges. By fair valuing a security which is suspended for trading, for example, because of financial irregularities, or whose price may have been affected by significant events or by news after the last market pricing of the security, the Funds attempt to establish a price that they might reasonably expect to receive upon the current sale of that security. It may also be necessary to use FVP in the event of a market remaining closed unexpectedly due to a force majeure event. Dilution Adjustment In determining the Net Asset Value of the Unit Trust and each Fund, the Manager may with the approval of the Depositary (i) adjust downwards the Net Asset Value of the Unit Trust or any Fund where on any Dealing Day, the aggregate value of all redemption requests received exceeds the value of all applications for Units or (ii) adjust upwards the Net Asset Value of the Unit Trust or any Fund where on any Dealing Day the value of all applications for Units received for that Dealing Day exceeds the aggregate value of all redemption requests, provided that in each case, the valuation policy by the Manager shall be applied consistently through the various categories of assets and will be applied consistently (with effect from the date of this Prospectus) through the lifetime of the Unit Trust or each Fund, for as long as the Unit Trust or each Fund is operated on a going concern basis. The Manager s intention is only to exercise this 40

216 discretion to preserve the value of the holdings of continuing Unitholders in the event of substantial or recurring net redemptions or subscriptions. The calculation of such prices and the amount of the adjustment may take into account any provision for the estimated market spreads (bid/offer spread of underlying securities), duties (for example transaction taxes) and charges (for example settlement costs or dealing commission) and other dealing costs related to the adjustment or disposal of investments and to preserve the value of the underlying assets of the relevant Fund. The application of the foregoing pricing methodology will comply with the requirements of the Central Bank. Availability of the Net Asset Value per Unit Except where the redemption of Units of a Fund has been suspended, in the circumstances described below, in the section headed Temporary Suspension of Redemptions, the Net Asset Value per Unit of each Class shall be available on the Barings website at Prices can also be ascertained at the registered office of the Manager and from the offices of the Investment Manager and the Paying Agents as set out under the Directory section of this Prospectus. Such information will relate to the Net Asset Value per Unit for the previous Dealing Day and is made available for information purposes only. It is not an invitation to subscribe for or redeem Units at that Net Asset Value per Unit. In the case of listed Units, the Net Asset Value per Unit will also be notified to the Irish Stock Exchange immediately upon calculation and shall be available on the website Dividend Policy The Trust Deed provides for the Depositary to distribute in respect of each accounting period not less than 85% of surplus net income represented by the dividends and interest received for each Fund to the holders of Units of the relevant class, after charging expenses and various other items, as set out under Charges and Expenses, as are attributable to the income of that Fund. In addition, the Manager may distribute to the holders of Units of the relevant Fund or Class such part of any capital gains less realised and unrealised capital losses attributable to the relevant Fund as, in their opinion, is appropriate to maintain a satisfactory level of distribution. The Manager may, at their discretion, declare additional dividend payment dates in respect of any distributing Fund or Class. It is intended that income distributions, if any, in relation to the Funds will be paid as set out in the relevant Supplement below. Any distributions unclaimed after a period of six years from the date of declaration of such distribution will lapse and shall revert to the relevant Fund. Subject to the Manager's policy as mentioned under Reinvestment of Income Distributions below, payment of distributions will be made by electronic transfer in the relevant currency of the relevant Unit Class and sent, at the risk of persons entitled thereto, to the account set out in the Application Form. If investors wish to make any change in the payment instructions, such change must be by written notice to the Manager signed by the sole Unitholder or all joint Unitholders. Any charges incurred in making payment by electronic transfer may be payable by the Unitholder. Payment may, however, be made in any other major currency if requested by the Unitholder, or Unitholders in the case of any joint holding, in writing to the Manager, but such payment will be arranged at the expense and risk of the Unitholders. Any payment of distributions made by bank transfer will be at the expense of the Unitholder. Equalisation arrangements will be effected by the Manager with a view to ensuring that the level of distributions payable on any Class is not affected by the issue, conversion or redemption of Units of that Class during the relevant accounting period. If distributions are paid to the Unitholder and are, for any reason, returned, the money will be held in a Collection Account until valid bank details are provided. Reinvestment of Income Distributions The Manager will automatically re-invest any distribution entitlements in further Units of the relevant Class of the relevant Fund: i) unless distributions are in excess of US$100 (or equivalent), 50 or 100 in value (depending on the relevant denomination of the Units) and instructions in writing to the contrary are received from the Unitholder at least 21 days prior to the relevant distribution date ii) if distributions are less than US$100 (or equivalent depending on the relevant denomination of the Units), distributions may be made in cash or reinvested at the discretion of the Manager. iii) in all cases where the Unitholder s anti-money laundering documentation is incomplete or has not been completed to the satisfaction of the Administrator and/or the Unitholder has not provided an original Application Form. Further Units will be issued on the date of distribution or, if that is not a Dealing Day, on the next following Dealing Day at a price calculated in the same way as for other issues of Units but without incurring any Preliminary Charge. There is, however, no minimum number of such further Units which may be so subscribed and fractions of Units will be issued if 41

217 necessary. Unitholders may also when applying for Units or subsequently, request the Manager in writing to pay them all distributions to which they are entitled; every such request by a Unitholder will remain effective until countermanded in writing or, if earlier, the person making the request ceases to be a Unitholder. Application Procedure Applications for Units must be received by the Valuation Point on each Dealing Day. Units will be issued at the Net Asset Value per Unit applicable on the relevant Dealing Day, except, in the cases of Units in a Class of which there are no Units currently issued, where Units will be issued at either a) the initial offer price of EUR10 in respect of Euro denominated Classes, GBP10 in respect of Sterling denominated Classes, USD 10 in respect of USD denominated Classes and the relevant currency equivalent of USD10 in respect of Classes denominated in all other currencies; or b) the latest available Net Asset Value per Unit equivalent to the relevant class of Class A, Class I or Class C (adjusted for currency conversion at the prevailing rate). For Units in a Class of which there are no Units currently issued, the initial offer period shall commence at 9.00 am (Irish time) on 1 May 2018 and end at noon (Irish time) on 30 May 2018 or such other date and/or time as the Directors may agree and notify to the Central Bank. Initial subscriptions must be made on the Application Form and submitted in writing to the Manager c/o the Administrator at the address or facsimile numbers set out in the Application Form. The signed original Application Form together with supporting documentation in relation to anti-money laundering requirements must be received promptly by the Manager. If any of the details that are provided change, including your address, other contact details (e.g. telephone number, address) or bank account details, please inform the Administrator immediately by letter at the address set out in the Directory section of this Prospectus. Failure to do so may cause a delay in processing any subsequent orders. Subsequent subscriptions may be made on the Top Up Form and submitted by facsimile to the Manager c/o the Administrator. In addition, investors can, with the agreement of the Manager, subscribe via electronic messaging services such as EMX or SWIFT. Requests received after 12 noon Irish time on a Dealing Day will be treated as having been received on the following Dealing Day. Applications by facsimile will be treated by the Manager as definitive orders even if not subsequently confirmed in writing and will not be capable of withdrawal after acceptance by the Manager. The Minimum Investment / Minimum Holding in respect of each Class may be waived at the discretion of the Manager. The Manager and the Administrator retain the right to seek such evidence of identity from applicants as they deem appropriate to comply with their obligations under anti-money laundering legislation and, in the absence of satisfactory evidence, or for any other reason, to reject any application in whole or in part (as detailed below under the section headed Anti-Money Laundering and Counter Terrorist Financing Measures ). If an application is rejected the Manager the Administrator or a distributor, at the risk of the applicant, may return application moneys or the balance thereof, at the cost of the applicant, by electronic transfer. Prospective investors should note that by completing the Application Form they are providing to the Manager personal information, which may constitute personal data within the meaning of the Data Protection Legislation. The personal data of prospective investors and registered Unitholders shall be processed in accordance with the Privacy Statement. By signing the Application Form, prospective investors consent to the recording of telephone calls made to and received from investors by the Manager, its delegates, its duly appointed agents and any of their respective related, associated or affiliated companies for record keeping, security and/or training purposes. The Administrator may and will hold all or part of the data provided in accordance with applicable laws even after the investor has fully redeem from the Unit Trust/Fund. A confirmation note will be sent to each successful applicant. Subscription monies in cleared funds must be received by the Settlement Date. If payment in full in cleared funds has not been received by the Settlement Date, the application may be refused and any allotment or transfer of Units made on the basis thereof cancelled, or, alternatively, the Manager may treat the application as an application for such number of Units as may be purchased or subscribed with such payment. The Manager reserves the right, in the event of non-receipt of cleared funds by the due date and cancellation of a subscription, to charge the applicant for losses accruing. The Manager reserves the right to limit deals without prior receipt of cleared funds. In such an event the investor shall indemnify the Manager, the Administrator, the Depositary, the Unit Trust, the applicable distributor, the Investment Manager and any of their respective affiliates for any and all claims, losses, liabilities or damages (including attorneys fees and other related out-of-pocket expenses) suffered or incurred by any such person as a result of the investor not remitting the amount of its subscription by the due date for such subscription or otherwise failing to comply with the terms of such Application Form. Payment is normally due in the currency of the relevant Class of the relevant Fund. The Manager may accept payment in other currencies, but such payments will be converted into the currency of the relevant Class and only the proceeds of such conversion at the prevailing exchange rate (after deducting expenses relating to such conversion) will be applied by the Manager towards payment of the subscription monies. The value of a Unit expressed in the Class Currency will be 42

218 subject to exchange rate risk in relation to the Base Currency of the relevant Fund. The Manager has standing arrangements for subscription monies to be paid by electronic transfer as specified in the Application Form. Payments by electronic transfer should quote the applicant s name, bank, bank account number, Fund name and confirmation note number (if one has already been issued). Any charges incurred in making payment by electronic transfer will be payable by the applicant. Should investors prefer to make payment in any currency other than the currency of the relevant Class they are advised to make direct contact with the Manager. Fractions of not less than one-thousandth of a Unit may be issued. Application moneys representing smaller fractions of a Unit will not be returned to the applicant but will be retained as part of the relevant Fund s assets. The Trust Deed also permits the Manager to issue Units at the issue price in consideration of the vesting in the Depositary of investments approved by the Manager. Anti-Money Laundering and Counter Terrorist Financing Measures Measures aimed at the prevention of money laundering and terrorist financing require a detailed verification of the investor's identity and where applicable the beneficial owner on a risk sensitive basis. Politically exposed persons ( PEPs ), an individual who is or has, at any time in the preceding year, been entrusted with a prominent public function, and immediate family member, or persons known to close associates of such persons, must also be identified. By way of example an individual may be required to produce a copy of a passport or identification card together with evidence of his/her address such as a copy of, a utility bill or bank statement and proof of tax residence. In the case of corporate investors, such measures may require production of a certified copy of the certificate of incorporation (and any change of name), memorandum and articles of association (or equivalent), the names, occupations, dates of birth and resident and business address of all directors. Depending on the circumstances of each application, a detailed verification might not be required where for example, the application is made through a relevant third party as such term is defined in the Criminal Justice (Money Laundering and Terrorist Financing) Act This exception will only apply if the relevant third party referred to above is located within a country recognised in Ireland as having equivalent anti-money laundering and counter terrorist financing regulations and satisfies other applicable conditions such as providing a letter of undertaking confirming that it has carried out the appropriate verification checks on the investor and will retain such information in accordance with the required timeframe and will provide such information on request to the Manager or the Administrator. The details above are given by way of example only and in that regard the Manager and the Administrator each reserve the right to request any such information or documents as is necessary at the time of application (and also during the business relationship) for Units in a Fund to verify the identity of an investor and where applicable the beneficial owner of an investor. In particular, the Manager and the Administrator each reserve the right to carry out additional procedures in relation to an investor who is classed as a PEP. Verification of the investor s identity is required to take place before the establishment of the business relationship. In any event, evidence of identity is required for all investors as soon as is reasonably practicable after the initial contact. In the event of delay or failure by an investor or applicant to produce any information required for verification purposes, the Manager or the Administrator may refuse to accept the application and subscription monies and return all subscription monies or compulsorily redeem such Unitholder's Units and/or payment of redemption proceeds may be delayed (no redemption proceeds will be paid if the Unitholder fails to produce such information). None of the Manager, the Investment Manager or the Administrator shall be liable to the subscriber or Unitholder where an application for Units is not processed or Units are compulsorily repurchased or payment of repurchase proceeds is delayed in such circumstances. If an application is rejected, the Administrator may return application monies or the balance thereof by electronic transfer in accordance with any applicable laws to the account from which it was paid at the cost and risk of the applicant. The Manager or the Administrator will refuse to pay proceeds and any such proceeds will be held in the Collection Account where the requisite information for verification purposes has not been produced by a Unitholder. For existing unit holdings who are compulsorily redeemed, the proceeds of redemption will be held in an Umbrella Cash Account until such time as the Manager or the Administrator have verified the Unitholder s identity to its satisfaction Umbrella Cash Accounts In circumstances where Units have been compulsorily repurchased for failure to provide the information required for verification purposes, the proceeds of redemption will be held in an Umbrella Cash Account (as described hereafter) and therefore, investors should note that such proceeds shall be treated as an asset of the relevant Fund. An Umbrella Cash Account is an account opened in the name of the Depositary on behalf of the Unit Trust for the purpose of holding redemption proceeds due to an investor which cannot be transferred to the relevant investor. The relevant investor will rank as an unsecured creditor of the relevant Fund until such time as the Manager or the Administrator are satisfied that its anti-money laundering and counter terrorist financing procedures have been fully complied with, following which redemption proceeds will be released. Any such unclaimed monies following a termination of a Fund will also be held in an Umbrella Cash Account (see section headed Duration of the Unit Trust ). 43

219 In the event of an insolvency of the relevant Fund or the Unit Trust, there is no guarantee that the relevant Fund or the Unit Trust will have sufficient funds to pay unsecured creditors in full. Investors due redemption proceeds which are held in an Umbrella Cash Account will rank equally with all other unsecured creditors of the relevant Fund and will be entitled to a pro-rata share of monies which are made available to all unsecured creditors by the insolvency practitioner. Therefore in such circumstances, the investor may not recover all monies originally paid into an Umbrella Cash Account for onward transmission to that investor. Accordingly, investors should ensure that all documentation required by the Manager or Administrator to comply with anti-money laundering and anti-fraud procedures are submitted promptly to the Manager or Administrator when subscribing for Units. The Manager and the Administrator reserve the right to obtain any additional information or documents from investors, at any point during the business relationship and may not carry out a service for the investor until the additional information or documentation is obtained to the satisfaction of the Manager. The Manager and the Administrator cannot rely on third parties to meet this obligation, which remains their ultimate responsibility. Subscriptions of Units Under the Trust Deed the Manager is given the exclusive right to effect for the account of the Unit Trust the issue of Units of any Class and to create, with the consent of the Depositary and the Central Bank, new Classes of Unit and have absolute discretion to accept or reject in whole or in part any application for Units. The initial issue price for each Class is determined by the Manager. All Units of each Class will rank pari passu. Issues of Units are normally made with effect from a Dealing Day against applications received up to 12 noon Irish time on that Dealing Day. The price at which Units will be issued to any person whose application is received prior to 12 noon Irish time on a Dealing Day, after the initial issue, is calculated by reference to the Net Asset Value per Unit determined as at the Valuation Point on that Dealing Day. The Manager shall have an absolute discretion to declare any Fund or Class closed to further subscriptions. Existing Unitholders of the relevant Fund or Class will be provided with prior notification of such closure and the Manager shall also notify distributors and/or placing agents. The Manager may invoke this discretion to close the Fund to further subscriptions where they are satisfied that it will be in the best interests of the Unitholders of a Fund, given the market conditions prevailing at the time. The Manager will have the discretion to re-open the relevant Fund or Class for subscription on any Dealing Day and existing Unitholders will be given advance notification of such re-opening. Units may not be issued or sold by the Manager during any period when the right of Unitholders to require the redemption of their Units is suspended in the manner described under Redemption of Units below. Applicants for Units will be notified of such postponement or cancellation and, unless withdrawn, their applications will be considered as at the next Dealing Day following the ending of such suspension. All Units shall be in registered form. Unit certificates will not be issued. Registration of the Units comprised in the application will normally be effected within twenty-one days of the Manager receiving the relevant registration details. Ownership is recorded by an entry in the Unit register and an account number is allocated to the investor which will be shown in a registration advice despatched within twenty-one days of the Manager receiving the relevant registration details. Your account number should be quoted in all communications relating to the Fund. The Net Asset Value per Unit of each Fund will be calculated by the Administrator and notified to the Irish Stock Exchange without delay upon calculation by the Administrator. The calculation of the Net Asset Value per Unit may be suspended when the right of Unitholders to require the redemption of Units is suspended as detailed in Redemption of Units in the Prospectus. Any suspension will be notified to the Central Bank and the Irish Stock Exchange without delay and where possible all reasonable steps will be taken to bring any period of suspension to an end as soon as possible. The Manager, the Administrator or a distributor may, in their sole discretion, reject any subscription order for Units in whole or in part for any or no reason, including in particular, where the Manager or the Administrator, as appropriate, reasonably believes the subscription order may represent a pattern of excessive trading or market timing activity in respect of the Unit Trust. Where an application for Units is rejected, the subscription monies shall be returned to the applicant within fourteen days of the date of such application at the applicant s cost and risk and no interest or other compensation will be payable in respect of such returned monies. Unit certificates will not be issued. Collection Account The Administrator operates the Collection Account in accordance with the Central Bank s Investor Money Regulations for a number of collective investment schemes managed by the Manager. The Collection Account is held at a credit 44

220 institution as prescribed by the Investor Money Regulations ( Relevant Bank ) in the name of the Administrator and is designated as a Collection Account or Coll a/c. All monies in the Collection Account will be held at the Relevant Bank on a segregated basis by the Administrator, in trust for the benefit of the investors and on behalf of, and at the risk of, the investors for whom such investor monies are being held. The Relevant Bank will hold the cash on the Administrator s behalf (for the benefit of the investors on behalf of whom such monies are being held) in an account separate from any money the Relevant Bank holds for the Administrator in its own right. In the event of the insolvency of the Relevant Bank, the Administrator should have a claim against the Relevant Bank on behalf of the investors for whom the monies in the Collection Account are being held. In the event of the insolvency of the Administrator, monies in the Collection Account would not form part of the Administrator s assets. Any subscription monies which are received by the Administrator prior to investment in a Fund, will be held in a collection account and will not form part of the assets of the relevant fund until such monies are transferred from the Collection Account to the account of the relevant Fund. Redemption proceeds will be paid into the Collection Account on the Settlement Date and distributions on the relevant distribution payment date, when they will no longer be considered an asset of the relevant Fund. Further, any conversion from one Fund or Class (the Original Fund ) into another Fund or Class (the New Fund ) will be deemed to be a redemption from the Original Fund and a subscription into the New Fund and the relevant proceeds will be held in the Collection Account until transferred to the New Fund. In the event of the insolvency of another Fund of the Unit Trust, recovery of any amounts to which a Fund is entitled, but which may have transferred to such other Fund as a result of the operation of the Collection Account, will be subject to the principles of Irish trust law and the terms of the operational procedures for the Collection Account. There may be delays in effecting and / or disputes as to the recovery of such amounts, and the insolvent Fund may have insufficient funds to repay amounts due to the relevant Fund. Accordingly, there is no guarantee that such Fund or the Unit Trust will recover such amounts. Furthermore, there is no guarantee that in such circumstances such Fund or the Unit Trust would have sufficient funds to repay any unsecured creditors. No interest is payable by the Manager or the Administrator on monies credited to the Collection Account. Redemption of Units Requests for the redemption of Units may be made either by facsimile or in writing to the Manager c/o the Administrator at the address or facsimile numbers set out in the Application Form. In addition investors can, with the agreement of the Manager, redeem Units via electronic messaging services such as EMX or SWIFT. Redemption requests can be processed on receipt of electronic instructions only where made to the account of record of the Unitholder. No redemption payments shall be made until the original subscription Application Form (and supporting documentation) has been received by the Manager. Units also need to be fully registered and settled before redemption payments can be made. Applications for the redemption of Units received by the Manager prior to 12 noon Irish time on a Dealing Day will, subject as mentioned in this section, be dealt with by reference to the Net Asset Value per Unit determined as at the Valuation Point on that Dealing Day. Redemption requests received after 12 noon Irish time will be treated as having been received on the following Dealing Day. Requests by fax will be treated by the Manager as definitive orders even if not subsequently confirmed in writing and will not be capable of withdrawal after acceptance by the Manager. The Manager and the Administrator will withhold payment of the proceeds of redemption and income on Units and may automatically reinvest dividend entitlements until the original signed Application Form has been received from the investor and where it is considered necessary or appropriate to carry out or complete identification procedures in relation to the Unitholder pursuant to a statutory, regulatory, European Union or other obligation. Instructions for the redemption of Units must be signed by the Unitholder before payment of redemption proceeds can be made. Payment of redemption proceeds will be made in accordance with initial redemption payment instructions as notified to the Manager. If investors wish to make any change in the redemption payment instructions, such change must be by written notice to the Manager signed by the sole Unitholder or all joint Unitholders. The Manager will be deemed to be authorised to act on any redemption instruction received from any person purporting to be the Unitholder and reciting the relevant account number. Payment of redemption proceeds will be made to the registered Unitholder or in favour of the joint registered Unitholders as appropriate unless the Manager is otherwise instructed in writing by the registered Unitholder or joint registered Unitholders. Amendments to a Unitholder s registration details and payment instructions will only be effected on receipt of original documentation. Payment of redemption proceeds will be paid by electronic transfer. Any charges incurred in making payment by electronic transfer may be payable by the Unitholder. Arrangements can be made for Unitholders wishing to redeem their 45

221 Units to receive payment in currencies other than the currency of the relevant Class. In such circumstances the Unitholder is advised to make direct contact with the Manager in order to facilitate payment. The cost of currency conversion and other administrative expenses including electronic transfers may be charged to the Unitholder. Subject as mentioned above, the amount due on the redemption of Units will be made in the currency of the relevant Class. Payment will normally be made by the Settlement Date (excluding days when due to public holidays in the relevant country, payments in the currency of the relevant Class cannot be settled) of the relevant Dealing Day or, if later, four Business Days after receipt by the Manager of a duly signed dealing confirmation by facsimile or in writing (excluding days when due to public holidays in the relevant country, payments in the currency of the relevant Class cannot be settled). Delayed payment of redemption proceeds can occur where there is a delay in the settlement of the underlying securities in a particular Fund. Such delay will not exceed 10 Business Days from the date of receipt of the redemption request. Where all relevant documentation and information is held in respect of the Unitholder the redemption proceeds will be paid from the Collection Account to the bank account provided by the Unitholder. Where redemption proceeds are paid but are refused by the Unitholder s receiving bank, the monies will be returned to the Collection Account until valid bank details for the Unitholder are provided. Partial redemptions or conversions of holdings are permitted provided that this will not result in the Unitholder holding a number of Units of a Class of a value which is less than the Minimum Holding for the relevant Class. A registration advice confirming the new Unitholding will be posted to the Unitholder. The Manager may, in its sole discretion, redeem some or all of the Units of a Unitholder where the Unitholder has failed to pay subscription monies by the due date and may apply the redemption proceeds in satisfaction of the Unitholder s liabilities to the Unit Trust, the Manager, the Investment Manager or any of their respective affiliates pursuant to the indemnity described under Application Procedure. Redemption Deferral Policy The Manager, with the approval of the Depositary, is entitled to limit the number of Units which may be redeemed on any Dealing Day to 10% of the total number of Units in issue of that Fund (the Redemption Deferral Policy ). The Redemption Deferral Policy will apply pro rata amongst all Unitholders seeking to redeem Units on the relevant Dealing Day, and in such event, the Manager will carry out such redemptions which, in aggregate, amount to 10% of the Units then in issue in the Fund. Where the Manager decides to invoke this Redemption Deferral Policy, the excess of Units above 10% which have not been redeemed will be carried forward until the next Dealing Day and will be redeemed on the next Dealing Day (subject to a further operation of the Redemption Deferral Policy on the next Dealing Day). If requests for redemption are so carried forward, the Manager will give immediate notice to the Unitholders affected. In-Specie Redemptions Redemption requests will normally be settled in cash. However, the Manager may at its discretion, satisfy any redemption request by in-specie distribution in circumstances where a Unitholder wishes to redeem Units representing 5% or more of the Net Asset Value of any Fund on a single Dealing Day and where the Unitholder either requests inspecie distribution or has consented to such in-specie redemption. The assets so redeemed shall have a value equal to the redemption price (which is calculated in accordance with the provisions of the Trust Deed) less any costs incurred in connection with the sale or in-specie distribution. Such costs shall include an amount equivalent to any Stamp Duty Reserve Tax (SDRT) to be paid in relation to cancellation of the Units. The assets for distribution will be selected in consultation with and subject to the approval of the Depositary on such basis as the Manager deems equitable and so that there is no prejudice to the interests of remaining Unitholders. The Unitholder may, by notice in writing to the Manager, request the Manager to sell such investments and to pay the proceeds of sale less any costs incurred in connection with such sale. Where a redeeming Unitholder has elected or has consented to receive redemption proceeds by an in specie distribution of stock of Units representing 5% or more of the Net Asset Value of any Fund, the Units settled in-specie will not be included in the calculation of the percentage of the Units for which redemption requests have been received for the purpose of determining whether the Redemption Deferral Policy may be invoked on a particular Dealing Day. Where a Unitholder has elected or consented to receive part or all of the redemption proceeds in-specie, the Manager shall advise the Unitholder that a Redemption Deferral Policy may operate if cash settlement is requested. Temporary Suspension of Redemptions In addition, the Manager may at any time, with the approval of the Depositary, suspend temporarily the right of Unitholders to require the redemption of Units of any Class and/or may delay the payment of any monies in respect of any such redemption during any of the following periods: (i) any period when any market on which a substantial part of the investments of the relevant Fund are quoted, listed or dealt is closed or when trading on such a market is limited or suspended; 46

222 (ii) (iii) (iv) (v) any period when dealings on any such market are restricted or suspended; the existence of any state of affairs as a result of which disposal of the investments of the relevant Fund cannot, in the opinion of the Manager, be effected normally or without seriously prejudicing the interests of Unitholders of that Class; any breakdown in the means of communication normally employed in determining the Net Asset Value of the relevant Fund or when, for any other reason, the value of any investments of the relevant Fund cannot be promptly and accurately ascertained; any period during which the Depositary is unable to repatriate funds required for making payments due on redemption of Units or during which the realisation of investments or the transfer of funds involved in such redemption cannot, in the opinion of the Manager, be effected at normal prices or normal rates of exchange. Unitholders who have requested redemptions of any Units will be notified of any such suspension and, unless withdrawn but subject to the limitation referred to above, their requests will be dealt with on the first Dealing Day after the suspension is lifted. Any such suspension will be notified to the Central Bank and the Irish Stock Exchange immediately and in any event, where practicable within the same business day and to the competent authorities in the Member States in which the Unit Trust is marketed. Liquidity Risk Management The Manager has established a liquidity management policy which enable it to identify, monitor and manage the liquidity risks of the Unit Trust and to ensure the liquidity profile of the investments of each Fund will facilitate compliance with the Fund s underlying obligations. The Manager s liquidity policy takes into account the investment strategy, the liquidity profile, redemption policy and other underlying obligations of the Funds. The liquidity management systems and procedures include appropriate escalation measures to address anticipated or actual liquidity shortages or other distressed situations of the Unit Trust. In summary, the liquidity management policy monitors the profile of investments held by the Unit Trust and each Fund and ensures that such investments are appropriate to the redemption policy as stated under Redemption of Units above, and will facilitate compliance with each Fund s underlying obligations. The Manager seeks to ensure that the investment strategy, the liquidity profile and the redemption policy of each Fund are consistent. The investment strategy, liquidity profile and redemption policy of the Unit Trust will be considered to be aligned when investors have the ability to redeem their investments in a manner consistent with the fair treatment of all investors and in accordance with the Manager s redemption policy and its obligations. In assessing the alignment of the investment strategy, liquidity profile and redemption policy, the Manager shall have regard to the impact that redemptions may have on the underlying prices or spreads of the individual assets of each Fund. Details of the redemption rights of Unitholders, including redemption rights of Unitholders in normal and exceptional circumstances and existing redemption arrangements are set above in this section. Qualified Unitholders and Total Redemption The Manager shall have the power (but shall not be under a duty) to impose such restrictions as it may think necessary for the purpose of ensuring that no Units are acquired or held by any person in breach of the law or any requirements of any country or governmental authority, including any foreign exchange control regulations or by a United States Person or Japanese person (except in transactions exempt from the requirements of the United States Securities Act of 1933 (as amended) and applicable state securities laws) or by any person described in (a) to (f) below. The Manager may at any time give notice in writing for the redemption of, or request the transfer of, Units held directly or beneficially by: (a) (b) (c) (d) (e) any person in breach of any law or requirement of any country or governmental authority or by virtue of which such person is not qualified to hold such Units; any United States Person; any Japanese person; any person or persons in circumstances which, (whether directly or indirectly affecting such person or persons and whether taken alone or in conjunction with any other person or persons connected or not, or any other circumstances appearing to the Manager to be relevant) in the opinion of the Manager might result in the Unit Trust or its Unitholders incurring any liability to taxation or suffering pecuniary disadvantages which the Unit Trust or its Unitholders might not otherwise have incurred or suffered; any Unitholder, on the basis of the circumstances of the Unitholder concerned, if it has reasonable grounds to believe that the Unitholder is engaging in any activity which might result in the Unit Trust or its Unitholders as a whole suffering any regulatory, pecuniary, legal, taxation or other material administrative disadvantage which the Unit Trust or its Unitholders as a whole might not otherwise have suffered; or 47

223 (f) any person or persons holding Units with a value less than the Minimum Holding. The Manager shall be entitled to give notice to such persons requiring him/her to transfer such Units to a person who is qualified or entitled to own them or submit a request for redemption. If any such person upon whom such a notice is served as aforesaid does not within 30 days after such notice transfer such Units or request the Manager to purchase such Units as aforesaid he shall be deemed forthwith upon the expiration of 30 days to have requested the Manager to purchase his Units and the Manager shall be entitled to appoint any delegate to sign on his/her behalf such documents as may be required for the purposes of the purchase of the said Units by the Manager. All of the Units of any Fund or of the Unit Trust may be realised by the Manager if the holders of 75% in value of the relevant Class or Fund resolve at a meeting of the Unitholders duly convened and held that such Units should be redeemed. The Manager may resolve at its discretion to retain sufficient monies prior to effecting a total redemption of Units to cover the costs associated with the subsequent termination of the Unit Trust or relevant Fund. Transfer of Units Units in each Fund will be transferable by instrument in writing signed by (or, in the case of a transfer by a body corporate, signed on behalf of or sealed by) the transferor provided that the transfer does not result in the transferor or the transferee holding a number of Units of a value which is less than the Minimum Holding for that Fund. A purported transfer of Units will not become effective and binding upon the Manager until such time as the transferee has completed the prescribed Application Form and any attendant documentation, such as anti-money laundering documentation, and the Administrator has received the originals thereof. In this regard the rights and obligations of the purported transferor will subsist and the purported transferor will continue to be regarded as the registered holder of Units, to the exclusion of the purported transferee, until receipt by the Administrator of the documentation outlined above. In the case of the death of one of joint Unitholders, the survivor or survivors will be the only person or persons recognised by the Depositary and the Manager as having any title to or interest in the Units registered in the names of such joint Unitholders. If the transferor is not resident in Ireland, the transferor must complete a declaration of non-residence to avoid deduction of tax on redemptions and distributions. Irish Resident Unitholders other than Exempt Investors must notify the Manager in advance of any proposed transfer of Units. Conversion of Units Unitholders will be able to apply to convert on any Dealing Day all or part of their holding of Units of any Class (the Original Class ) into Units of another Class of the same Fund or in another Fund, which are being offered at that time (the New Class ) by giving notice to the Manager in the manner set out under Redemption of Units above. The general provisions and procedures relating to redemption will apply equally to conversions. No conversion will be made, however, if it would result in the Unitholder holding a number of Units of either the Original Class or the New Class of a value which is less than the Minimum Holding for the relevant Class. The number of Units of the New Class to be issued will be calculated in accordance with the following formula: where: N = P(R x CF) S N P R - is the number of Units of the New Class to be allotted - is the number of Units of the Original Class to be converted - is the Net Asset Value per Unit of the Original Class applicable to redemption requests received on the relevant Dealing Day CF - is the currency conversion factor determined by the Manager as representing the effective rate of exchange on the relevant Dealing Day between the base currencies of the Original Class and the New Class (where the base currencies are different) S - is the Net Asset Value per Unit of the New Class applicable to subscription applications received on the relevant Dealing Day. 48

224 Manager, Investment Manager, Depositary and Administrator Manager The Manager of the Unit Trust is Baring International Fund Managers (Ireland) Limited which was incorporated in Ireland as a private limited company on 16 July The issued share capital of the Manager is 100,000, all of which has been paid up in full. The company secretary of the Manager is Matsack Trust Limited. The Directors of the Manager as of the date of this Prospectus are as follows: James Cleary: (resident of Ireland) Mr Cleary is the principal of Cleary Consulting, a fund consultancy practice based in Ireland, since June He worked in public practice in London and Luxembourg focusing on the financial services sector from 1986 to He has focused directly in offshore fund management since 1990 and has established and managed fund management offices in Luxembourg and Toronto for State Street Bank from February 1990 to October 1993, as Finance Director of PFPC, Dublin from October 1993 to June 1997, and as Managing Director of SEI Investments, Dublin from June 1997 to June He has been a committee member of the Irish Funds Industry Association and a member of the Alternative Investment Management Association. He has written and lectured within the industry and is a director of a number of mutual fund companies and of a number of companies operating in the Ireland s International Financial Services Centre. He is a Fellow of the Chartered Association of Certified Accountants and received an MBA (cum laude) from the University of Limerick. Timothy B. Schulze: (resident of the United States) Mr Schulze is the Chief Risk Officer and Global Head of Risk Management for Barings LLC. Tim is responsible for global oversight of the firm s Enterprise Risk Management program, including the investment, counterparty and organisational risk functions. He presently sits on the Board of Directors of several of Barings affiliated fund companies domiciled in Ireland and Luxembourg. Tim has worked in the industry since Prior to joining Barings LLC (formerly Babson Capital Management LLC) in 2003, Tim spent two years as a participant in MassMutual s Executive Development Program. Tim holds a B.A. from the University of Colorado at Boulder and an M.B.A. from the University of Massachusetts Amherst. He is a CFA charterholder, and holds the Financial Risk Manager and Professional Risk Manager designations. He is a member of the CFA Institute, the Global Association of Risk Professionals and the Professional Risk Managers International Association. Barbara Healy: (resident of Ireland) Barbara is a chartered accountant by profession and has over 20 years experience in the asset management industry. From , Barbara was Global Head of Operations for JPMorgan Hedge Fund Services incorporating the role of Executive Director and Head of Technical Solutions EMEA and Asia. During her tenure assets grew from $5Bn to $100Bn, positioning the firm as a top-tier service provider in the hedge fund administration market. Ms. Healy previously ran operations for Tranaut Fund Administration Ltd from 2002 to 2004 which was subsequently acquired by JPMorgan, and before this was Director of Accounting for SEI Investments Europe. Ms. Healy has also worked in fund accounting positions in Banker s Trust and Chase Manhattan. She is currently serving as a nonexecutive director to Irish, Luxembourg and Cayman domiciled funds. Barbara holds a Bachelor of Commerce Degree (Honours) and a Post-Graduate Diploma in Professional Accounting. She is a member of the Institute of Chartered Accountants in Ireland and is also a member of the Institute of Directors in Ireland. Barbara attended the High Performance Boards Corporate Governance Programme at IMD, Lausanne, Switzerland, David Conway: (resident in Ireland) Mr Conway is a company director and formerly a senior executive at Ulster Bank. He has extensive leadership experience across the investment management industry, including portfolio management, asset management, funds administration, custodial services, private client and wealth management. Mr Conway, who is Irish, held a variety of roles at Ulster Bank over a period of 26 years, most recently as Director, Ulster Bank Wealth Management Division. He is currently a Director of a number of collective investment schemes across a broad range of asset classes. Mr Conway holds an honours degree in Economics from Trinity College Dublin and is a Certified Investment Fund Director (CIFD). Julian Swayne: (resident of the United Kingdom) Mr Swayne is the Chief Executive Officer of Barings in Europe. He is responsible for the day-to-day general management of Barings main UK operating entities. He previously served as the Chief Financial Officer International of Barings, having joined Baring Asset Management when it was formed in Mr Swayne became Finance Director in 1997 and then Chief Financial Officer International in 2016 when the new Barings group was created. Prior to joining Baring Asset Management, he worked at Baring Brothers & Co. Previous to that, Mr Swayne was with London City based auditors Neville Russell. Mr Swayne holds a degree in Economics from Leicester University and qualified as a chartered accountant in Peter Clark: (resident in the United Kingdom) is a Managing Director and General Counsel, European Fixed Income & Private Investments of Barings (UK). He joined in 2007 from the London office of Latham & Watkins, where he was a senior member of the Finance Group. Peter is responsible for leading and managing the Legal Team at Barings (UK). He is involved in analysing the legal aspects of investment opportunities, setting up new funds, engaging in workout and restructuring discussions with respect to distressed loan investments and legal oversight. He was admitted as a Solicitor of the Senior Courts of England and Wales in 1999 and as a member of the California State Bar in

225 All of the above-named directors act in a non-executive capacity. The address of the Directors is the registered office of the Manager. The Manager has the right under the Trust Deed to retire at any time upon the appointment of a successor as provided in the Trust Deed. They may be removed by the Depositary in certain circumstances, including where the holders of not less than 50% of the Units for the time being in issue so request. The Trust Deed contains provisions governing the responsibilities of the Manager and providing for their indemnification in certain circumstances, subject to exclusions in the case of its negligence, fraud, bad faith or wilful default in the performance of its obligations and subject to the provisions of the UCITS Regulations and any conditions imposed by the Central Bank thereunder. The Manager is an indirect wholly-owned subsidiary of Massachusetts Mutual Life Insurance Company, a member of the MassMutual Financial Group. MassMutual Financial Group is a global, growth-oriented, diversified financial services organisation providing life insurance, annuities, disability income insurance, long-term care insurance, retirement planning products, structured settlement annuities, trust services, money management, and other financial products and services. In addition to managing the Unit Trust, the Manager also manages Barings China A-Share Fund plc, Barings Alpha Funds plc, Barings Currency Umbrella Fund, Barings Emerging Markets Umbrella Fund, Barings Global Umbrella Fund, Barings Global Opportunities Umbrella Fund, Barings Investment Funds plc, Barings Korea Feeder Fund, Barings Component Funds and Barings Umbrella Fund plc. Only the Unit Trust, Barings Global Umbrella Fund, Barings Investment Funds plc and Barings Emerging Markets Umbrella Fund are recognised schemes for the purpose of the FSMA. The Manager will at all times have due regard to its duties owed to each fund managed by it (including each Fund within the Unit Trust) and if any conflict of interest should arise as between any of those funds the Manager will have regard to its obligations under the Trust Deed and its obligation to act in the best interests of its clients in seeking to ensure that the conflict is resolved fairly. Remuneration Policy The Manager has a remuneration policy in place (the Remuneration Policy ) which is designed to ensure that its remuneration practices are consistent with and promote sound and effective risk management, do not encourage risk taking and are consistent with the risk profile of the Funds. The Manager considers the Remuneration Policy to be appropriate to its size, internal operations, nature, scale and complexity and in line with the risk profile, risk appetite and the strategy of the Unit Trust. The Remuneration Policy will apply to the fixed and variable (if any) remuneration received by the identified staff. Details of the remuneration policy including, but not limited to, a description of how remuneration and benefits are calculated and the identity of the persons responsible for awarding the remuneration and benefits are available at and a paper copy will be made available to investors upon request. The Manager does not have any employees and only non-executive directors are in scope of the Remuneration Policy. The non-executive directors (with the exception of Baring Asset Management Limited affiliated directors who do not receive any directors fees) receive a fixed fee only and do not receive performance-based or variable remuneration therefore avoiding a potential conflict of interest. No pension contributions are payable on non-executive Board members fees. In respect of any investment management delegates, the Manager requires that:(i) the entities to which such activities have been delegated are subject to regulatory requirements on remuneration that are equally as effective as those applicable under the ESMA Guidelines / Article 14 of the UCITS Directive; or (ii) appropriate contractual arrangements are put in place with entities to which such activities have been delegated in order to ensure that there is no circumvention of the remuneration rules set out in the ESMA Guidelines/UCITS Directive. Investment Manager Under the terms of the Investment Management Agreement, the Manager has delegated the investment management of each Fund to the Investment Manager. The Investment Management Agreement provides that the appointment of the Investment Manager may be terminated by either party giving notice in writing to the other party and provides for the orderly transfer of the Investment Manager s responsibilities in such circumstances. Subject to the Central Bank s approval, the Investment Manager may sub-delegate such investment management to other entities including group companies. The fees and expenses of any sub-investment managers appointed by Investment Manager will be discharged by the Investment Manager. Details of any sub-investment managers appointed to a Fund will be provided to Unitholders upon request and details will also be provided in the periodic reports of the Unit Trust. The Investment Manager provides asset management services in developed and emerging equity and bond markets on behalf of institutional and retail clients globally. The Investment Manager is authorised and regulated by the FCA. 50

226 The Investment Manager may in the course of its business have conflicts of interest with the Unit Trust. The Investment Manager will, however, have regard to its obligations to act in the best interest of its clients when undertaking any investments where conflicts of interest may arise and will seek to resolve such conflicts fairly. In relation to co-investment opportunities which arise between the Funds and the Investment Manager s other clients, the Investment Manager will ensure that the Funds participate fairly in such investment opportunities and that these are fairly allocated. Depositary The Depositary of the Unit Trust is Northern Trust Fiduciary Services (Ireland) Limited. The Depositary is a private limited liability company incorporated in Ireland on 5 July Its main activity is the provision of custodial services and to act as trustee and depositary to collective investment schemes. The Depositary is an indirect wholly-owned subsidiary of Northern Trust Corporation. Northern Trust Corporation and its subsidiaries comprise the Northern Trust Group, one of the world s leading providers of global custody and administration services to institutional and personal investors. As at 30 September 2017, the Northern Trust Group s assets under custody totalled in excess of US$7.1 trillion. Pursuant to the Trust Deed, the Depositary may delegate its safekeeping obligations provided that (i) the services are not delegated with the intention of avoiding the requirements of the UCITS Regulations, (ii) the Depositary can demonstrate that there is an objective reason for the delegation and (iii) the Depositary has exercised all due, skill, care and diligence in the selection and appointment of any third party to whom it wants to delegate parts of the services, and keeps exercising all due skill, care and diligence in the periodic review and ongoing monitoring of any third party to whom it has delegated parts of its safekeeping services and of the arrangements of the third party in respect of the matters delegated to it. The liability of the Depositary will not be affected by virtue of any such delegation. The Depositary has delegated to its global sub-custodian, The Northern Trust Company, London branch, responsibility for the safekeeping of the Unit Trust s financial instruments and cash. The global sub-custodian proposes to further delegate these responsibilities to sub-delegates. Details regarding the Depositary, including a description of its duties and any conflicts of interest that may arise, any safekeeping functions delegated by the depositary and an up to date list of such sub-custodians shall be made available to investors free of charge upon request. The Trust Deed provides that the Depositary shall be liable, (i) in respect of a loss of a financial instrument held in its custody (or that of its duly appointed delegate) unless it can prove that the loss has arisen as a result of an external event beyond the Depositary s reasonable control, the consequences of which would have been unavoidable despite all reasonable measures to the contrary, and (ii) in respect of all other losses as a result of the Depositary s negligent or intentional failure to properly fulfil its obligations pursuant to the UCITS Regulations. The Trust Deed contains certain indemnities in favour of the Depositary (and each of its officers, employees and delegates) which are restricted to exclude matters for which the Depositary is liable pursuant to the UCITS Regulations or matters arising by reason of the negligent or intentional failure of the Depositary in the performance of its duties. Up-to-date information on the Depositary, its duties, any conflicts that may arise, the safe-keeping functions delegated by the depositary, the list of delegates and sub-delegates and any conflicts of interest that may arise from such a delegation will be made available to Unitholders on request. Administrator Under the terms of the Administrator Agreement, the Manager has appointed the Administrator as the administrator of the Unit Trust. The Manager has delegated its duties as registrar to the Administrator pursuant to the Administrator Agreement. The Administrator Agreement provides that the appointment of the Administrator may be terminated by any party giving not less than 24 months notice in writing to the others. The Administrator, a company incorporated in Ireland on 15 June 1990 and is an indirect wholly owned subsidiary of Northern Unit Trust Corporation. Northern Unit Trust Corporation and its subsidiaries comprise the Northern Unit Trust Group, one of the world s leading providers of global custody and administration services to institutional and personal investors. The principal business activity of the Administrator is the administration of collective investment schemes. The duties and functions of the Administrator include, inter alia, the calculation of the Net Asset Value and the Net Asset Value per Unit, the keeping of all relevant records in relation to the Funds as may be required with respect to the obligations assumed by it pursuant to the Administration Agreement, the preparation and maintenance of the Unit Trust and the Unit Trust s books and accounts, liaising with the auditor in relation to the audit of the financial statements of the Unit Trust and the provision of certain Unitholder registration and transfer agency services in respect of units in the Unit Trust. The Administrator is not involved directly or indirectly with the business affairs, organisation, sponsorship or management of the Unit Trust and is not responsible for the preparation of this document other than the preparation of the above description and accepts no responsibility or liability for any information contained in this document except disclosures relating to it. As at the date of this Prospectus, the Administrator is not aware of any conflicts of interest in respect of its appointment as administrator to the Unit Trust. If a conflict of interest arises, the Administrator will ensure it is addressed in accordance with the Administration Agreement, applicable laws and in the best interests of the Unitholders. 51

227 Report and Accounts The Unit Trust s year end is 30 April in each year. Audited accounts and a report in relation to the Unit Trust will be produced within four months after the conclusion of each Accounting Period and hosted on the Manager s website at Unaudited semi-annual reports will also be produced within two months of the Semi-Annual Accounting Date in each year and hosted on the Manager s website at Annual reports will be sent to the Irish Stock Exchange. Copies of the latest annual and semi-annual accounts may also be obtained at the registered office of the Manager and the Investment Manager. Taxation Ireland The following is a summary of certain Irish tax consequences of the purchase, ownership and disposal of Units. The summary does not purport to be a comprehensive description of all of the Irish tax considerations that may be relevant. The summary relates only to the position of persons who are the absolute beneficial owners of Units and may not apply to certain other classes of persons. The summary is based on Irish tax laws and the practice of the Irish Revenue Commissioners in effect on the date of this Prospectus (and is subject to any prospective or retroactive change). Potential investors in Units should consult their own advisors as to the Irish or other tax consequences of the purchase, ownership and disposal of Units. Taxation of the Unit Trust The Manager intends to conduct its affairs so that the Unit Trust is Irish tax resident On the basis that the Unit Trust is Irish tax resident, the Unit Trust qualifies as an investment undertaking for Irish tax purposes and, consequently, is exempt from Irish tax on its income and gains. The Unit Trust will be obliged to account for Irish income tax to the Irish Revenue Commissioners if Units are held by non-exempt Irish resident Unitholders (and in certain other circumstances), as described below. Explanations of the terms resident and ordinarily resident are set out at the end of this summary. Taxation of Non-Irish Unitholders Where a Unitholder is not resident (or ordinarily resident) in Ireland for Irish tax purposes, the Unit Trust will not deduct any Irish tax in respect of the Unitholder s Units once the declaration set out in the Application Form has been received by the Unit Trust confirming the Unitholder s non-resident status. The declaration may be provided by an Intermediary who holds Units on behalf of investors who are not resident (or ordinarily resident) in Ireland, provided that, to the best of the Intermediary s knowledge, the investors are not resident (or ordinarily resident) in Ireland. An explanation of the term Intermediary is set out at the end of this summary. If this declaration is not received by the Unit Trust, the Unit Trust will deduct Irish tax in respect of the Unitholder s Units as if the Unitholder was a non-exempt Irish resident Unitholder (see below). The Unit Trust will also deduct Irish tax if the Unit Trust has information which reasonably suggests that a Unitholder s declaration is incorrect. A Unitholder will generally have no entitlement to recover such Irish tax, unless the Unitholder is a company and holds the Units through an Irish branch and in certain other limited circumstances. The Unit Trust must be informed if a Unitholder becomes Irish tax resident. Generally, Unitholders who are not Irish tax resident will have no other Irish tax liability with respect to their Units. However, if a Unitholder is a Unit Trust which holds its Units through an Irish branch or agency, the Unitholder may be liable to Irish corporation tax in respect of profits and gains arising in respect of the Units (on a self-assessment basis). Taxation of Exempt Irish Unitholders Where a Unitholder is resident (or ordinarily resident) in Ireland for Irish tax purposes and falls within any of the categories listed in section 739D(6) of the Taxes Consolidation Act of Ireland ( TCA ), the Unit Trust will not deduct Irish tax in respect of the Unitholder s Units once the declaration set out in the Application Form has been received by the Unit Trust confirming the Unitholder s exempt status. The categories listed in section 739D(6) TCA can be summarised as follows: 1. Pension schemes (within the meaning of section 774, section 784 or section 785 TCA). 2. Companies carrying on life assurance business (within the meaning of section 706 TCA). 3. Investment undertakings (within the meaning of section 739B TCA). 52

228 4. Investment limited partnerships (within the meaning of section 739J TCA). 5. Special investment schemes (within the meaning of section 737 TCA). 6. Unauthorised unit trust schemes (to which section 731(5)(a) TCA applies). 7. Charities (within the meaning of section 739D(6)(f)(i) TCA). 8. Qualifying managing companies (within the meaning of section 734(1) TCA). 9. Specified companies (within the meaning of section 734(1) TCA). 10. Qualifying fund and savings managers (within the meaning of section 739D(6)(h) TCA). 11. Personal Retirement Savings Account (PRSA) administrators (within the meaning of section 739D(6)(i) TCA). 12. Irish credit unions (within the meaning of section 2 of the Credit Union Act 1997). 13. The National Asset Management Agency. 14. The National Treasury Management Agency or a Fund Investment Vehicle (within the meaning of section 37 of the National Treasury Management Agency (Amendment) Act 2014) of which the Minister for Finance is the sole beneficial owner, or Ireland acting through the National Treasury Management Agency. 15. Qualifying companies (within the meaning of section 110 TCA). 16. Any other person resident in Ireland who is permitted (whether by legislation or by the express concession of the Irish Revenue Commissioners) to hold Units in the Unit Trust without requiring the Unit Trust to deduct or account for Irish tax. Irish resident Unitholders who claim exempt status will be obliged to account for any Irish tax due in respect of Units on a self-assessment basis. If this declaration is not received by the Unit Trust in respect of a Unitholder, the Unit Trust will deduct Irish tax in respect of the Unitholder s Units as if the Unitholder was a non-exempt Irish resident Unitholder (see below). A Unitholder will generally have no entitlement to recover such Irish tax, unless the Unitholder is a company within the charge to Irish corporation tax and in certain other limited circumstances. Taxation of Other Irish Unitholders Where a Unitholder is resident (or ordinarily resident) in Ireland for Irish tax purposes and is not an exempt Unitholder (see above), the Unit Trust will deduct Irish tax on distributions, redemptions and transfers and, additionally, on eighth anniversary events, as described below. Distributions by the Unit Trust If the Unit Trust pays a distribution to a non-exempt Irish resident Unitholder, the Unit Trust will deduct Irish tax from the distribution. The amount of Irish tax deducted will be: 1. 25% of the distribution, where the distributions are paid to a Unitholder who is a company which has made the appropriate declaration for the 25% rate to apply; and 2. 41% of the distribution, in all other cases. The Unit Trust will pay this deducted tax to the Irish Revenue Commissioners. Generally, a Unitholder will have no further Irish tax liability in respect of the distribution. However, if the Unitholder is a company for which the distribution is a trading receipt, the gross distribution (including the Irish tax deducted) will form part of its taxable income for self-assessment purposes and the Unitholder may set off the deducted tax against its corporation tax liability. Redemptions and Transfers of Units If the Unit Trust realises Units held by a non-exempt Irish resident Unitholder, the Unit Trust will deduct Irish tax from the redemption payment made to the Unitholder. Similarly, if such an Irish resident Unitholder transfers (by sale or otherwise) an entitlement to Units, the Unit Trust will account for Irish tax in respect of that transfer. The amount of Irish tax deducted or accounted for will be calculated by reference to the gain (if any) which has accrued to the Unitholder on the Units being redeemed or transferred and will be equal to: 1. 25% of such gain, where the Unitholder is a company which has made the appropriate declaration for the 25% rate to apply; and 2. 41% of the gain, in all other cases. The Unit Trust will pay this deducted tax to the Irish Revenue Commissioners. In the case of a transfer of Units, to fund this Irish tax liability the Unit Trust may appropriate or cancel other Units held by the Unitholder. This may result in 53

229 further Irish tax becoming due. Generally, a Unitholder will have no further Irish tax liability in respect of the redemption or transfer. However, if the Unitholder is a company for which the redemption or transfer payment is a trading receipt, the gross payment (including the Irish tax deducted) less the cost of acquiring the Units will form part of its taxable income for self-assessment purposes and the Unitholder may set off the deducted tax against its corporation tax liability. If Units are not denominated in Euro, a Unitholder may be liable (on a self-assessment basis) to Irish capital gains taxation on any currency gain arising on the redemption or transfer of the Units. Eighth Anniversary Events If a non-exempt Irish resident Unitholder does not dispose of Units within eight years of acquiring them, the Unitholder will be deemed for Irish tax purposes to have disposed of the Units on the eighth anniversary of their acquisition (and any subsequent eighth anniversary). On such deemed disposal, the Unit Trust will account for Irish tax in respect of the increase in value (if any) of those Units over that eight year period. The amount of Irish tax accounted for will be equal to: 1. 25% of such increase in value, where the Unitholder is a company which has made the appropriate declaration for the 25% rate to apply; and 2. 41% of the increase in value, in all other cases. The Unit Trust will pay this tax to the Irish Revenue Commissioners. To fund the Irish tax liability, the Unit Trust may appropriate or cancel Units held by the Unitholder. However, if less than 10% of the Units (by value) in the relevant Fund are held by non-exempt Irish resident Unitholders, the Unit Trust may elect not to account for Irish tax on this deemed disposal. To claim this election, the Unit Trust must: 1. confirm to the Irish Revenue Commissioners, on an annual basis, that this 10% requirement is satisfied and provide the Irish Revenue Commissioners with details of any non-exempt Irish resident Unitholders (including the value of their Units and their Irish tax reference numbers); and 2. notify any non-exempt Irish resident Unitholders that the Unit Trust is electing to claim this exemption. If the exemption is claimed by the Unit Trust, any non-exempt Irish resident Unitholders must pay to the Irish Revenue Commissioners on a self-assessment basis the Irish tax which would otherwise have been payable by the Unit Trust on the eighth anniversary (and any subsequent eighth anniversary). Any Irish tax paid in respect of the increase in value of Units over the eight year period may be set off on a proportionate basis against any future Irish tax which would otherwise be payable in respect of those Units and any excess may be recovered on an ultimate disposal of the Units. Share Exchanges Where a Unitholder exchanges Units on arm s length terms for other Units in the Unit Trust or for Units in another Fund of the Unit Trust and no payment is received by the Unitholder, the Unit Trust will not deduct Irish tax in respect of the exchange. Stamp Duty No Irish stamp duty (or other Irish transfer tax) will apply to the issue, transfer or redemption of Units. If a Unitholder receives a distribution in specie of assets from the Unit Trust, a charge to Irish stamp duty could potentially arise. Gift and Inheritance Tax Irish capital acquisitions tax (at a rate of 33%) can apply to gifts or inheritances of Irish situate assets or where either the person from whom the gift or inheritance is taken is Irish domiciled, resident or ordinarily resident or the person taking the gift or inheritance is Irish resident or ordinarily resident. The Units could be treated as Irish situate assets because they have been issued by an Irish trust. However, any gift or inheritance of Units will be exempt from Irish gift or inheritance tax once: 1. the Units are comprised in the gift or inheritance both at the date of the gift or inheritance and at the valuation date (as defined for Irish capital acquisitions tax purposes); 2. the person from whom the gift or inheritance is taken is neither domiciled nor ordinarily resident in Ireland at the date of the disposition; and 54

230 3. the person taking the gift or inheritance is neither domiciled nor ordinarily resident in Ireland at the date of the gift or inheritance. If the Unit Trust becomes liable to account for tax in any jurisdiction in the event that a Unitholder or beneficial owner of a Unit were to receive a distribution in respect of his/her Units or to dispose (or deemed to have disposed) of his/her Units in any way ( Chargeable Event ), the Manager shall be entitled to deduct from the payment arising on a Chargeable Event an amount equal to the appropriate tax and/or where applicable, to appropriate, cancel or compulsorily repurchase such number of Units held by the Unitholder or such beneficial owner as are required to meet the amount of tax. The relevant Unitholder shall indemnify and keep the Unit Trust indemnified against loss arising to the Unit Trust by reason of the Unit Trust becoming liable to account for tax in any jurisdiction on the happening of a Chargeable Event if no such deduction, appropriation, cancellation or compulsory repurchase has been made. OECD Common Reporting Standard The automatic exchange of information regime known as the Common Reporting Standard developed by the Organisation for Economic Co-operation and Development applies in Ireland. Under this regime, the Unit Trust is required to report information to the Irish Revenue Commissioners relating to all Unitholders, including the identity, residence and tax identification number of Unitholders and details as to the amount of income and sale or redemption proceeds received by Unitholders in respect of the Units. This information may then be shared by the Irish Revenue Commissioners with tax authorities in other EU member states and other jurisdictions which implement the OECD Common Reporting Standard. The OECD Common Reporting Standard replaces the previous European information reporting regime in respect of savings income under Directive 2003/48/EC (commonly known as the EU Savings Directive regime). Meaning of Terms Meaning of Residence for Companies A company which has its central management and control in Ireland is tax resident in Ireland irrespective of where it is incorporated. A company which does not have its central management and control in Ireland but which was incorporated in Ireland on or after 1 January 2015 is tax resident in Ireland except where the company is regarded as not resident in Ireland under a double taxation treaty between Ireland and another country. A company which does not have its central management and control in Ireland but which was incorporated before 1 January 2015 in Ireland is resident in Ireland except where: 1. the company (or a related company) carries on a trade in Ireland and either the company is ultimately controlled by persons resident in EU member states or in countries with which Ireland has a double tax treaty, or the company (or a related company) are quoted companies on a recognised stock exchange in the EU or in a tax treaty country; or 2. the company is regarded as not resident in Ireland under a double tax treaty between Ireland and another country. Finally, a company that was incorporated in Ireland before 1 January 2015 will also be regarded as resident in Ireland if the company is (i) managed and controlled in a territory with which a double taxation agreement with Ireland is in force (a relevant territory ), and such management and control would have been sufficient, if exercised in Ireland, to make the company Irish tax resident; and (ii) the company would have been tax resident in that relevant territory under its laws had it been incorporated there; and (iii) the company would not otherwise be regarded by virtue of the law of any territory as resident in that territory for the purposes of tax. Meaning of Residence for Individuals An individual will be regarded as being tax resident in Ireland for a calendar year if the individual: 1. spends 183 days or more in Ireland in that calendar year; or 2. has a combined presence of 280 days in Ireland, taking into account the number of days spent in Ireland in that calendar year together with the number of days spent in Ireland in the preceding year. Presence in Ireland by an individual of not more than 30 days in a calendar year will not be reckoned for the purposes of applying this two year test. An individual is treated as present in Ireland for a day if that individual is personally present in Ireland at any time during that day. 55

231 Meaning of Ordinary Residence for Individuals The term ordinary residence (as distinct from residence ) relates to a person s normal pattern of life and denotes residence in a place with some degree of continuity. An individual who has been resident in Ireland for three consecutive tax years becomes ordinarily resident with effect from the commencement of the fourth tax year. An individual who has been ordinarily resident in Ireland ceases to be ordinarily resident at the end of the third consecutive tax year in which the individual is not resident. For example, an individual who is resident and ordinarily resident in Ireland in 2017 and departs Ireland in that year will remain ordinarily resident in Ireland up to the end of the tax year in Foreign Taxes The Unit Trust may be liable to taxes (including withholding taxes) in countries other than Ireland on income earned and capital gains arising on its investments. The Unit Trust may not be able to benefit from a reduction in the rate of such foreign tax by virtue of the double taxation treaties between Ireland and other countries. The Unit Trust may not, therefore, be able to reclaim any foreign withholding tax suffered by it in particular countries. If this position changes and the Unit Trust obtains a repayment of foreign tax, the Net Asset Value of the Unit Trust will not be restated and the benefit will be allocated to the then-existing Unitholders rateably at the time of repayment United Kingdom ( UK ) Unless otherwise stated, the following analysis is based on the Unit Trust being treated as fiscally opaque for the purposes of UK taxation. The Depositary, Manager and the Investment Manager intend to conduct the affairs of the Unit Trust so as to minimise, as far as it deems reasonably practicable, any liability of the Unit Trust to UK taxation. This includes intending to manage and conduct the affairs of the Unit Trust so that it does not become resident in the UK for taxation purposes. Accordingly, provided the Unit Trust does not exercise a trade within the UK or carry on a trade in the UK through a permanent establishment, the Unit Trust should not be subject to UK tax other than on certain UK source income. It is not expected that the activities of the Unit Trust will be regarded as trading activities for the purposes of UK taxation. However, to the extent that trading activities are carried on in the UK they may in principle be liable to UK tax. The profit from such trading activities will not, based on the UK Finance Act, 2003, be assessed to UK tax provided that the Unit Trust and the Investment Manager meet certain conditions. The Manager and the Investment Manager intend to conduct the affairs of the Unit Trust so that all those conditions are satisfied, so far as those conditions are within their respective control. Unitholders who are resident in the UK should note that all distributions made from a Fund of the Unit Trust are assessable to UK income tax under section 830(2) of ITTOIA 2005 or corporation tax under case V of Schedule D whether or not such distributions are automatically or otherwise reinvested in further Units in the relevant Fund. With effect from 22 April 2009, if any distribution is made from a Fund that holds more than 60% of its assets in interest bearing (or economically similar) form, the resulting distribution will be treated in the hands of an individual Unitholder resident in the UK for tax purposes as a payment of yearly interest. This will mean that UK tax will be paid on such a distribution at the tax rates applicable from time to time to interest payments. However, any other distributions that are made from a Fund will be treated in the hands of an individual Unitholder resident in the UK for tax purposes as a distribution on which the Unitholder will during 2013/14 be taxable at the rate of 10%, 32.5% or 37.5% depending on whether he is either a lower, higher or additional rate taxpayer respectively. Change from Distributing to Reporting Funds Status On 1 December 2009, new UK legislation became effective under which the distributing fund regime would be replaced over a period of time by the reporting fund regime. Under both regimes each Class is viewed as a separate offshore fund. Classes for which distributing fund status has or will be sought for previous accounting periods have been accepted into the UK Reporting Fund regime with effect from the accounting period commencing on 1 May Details of which Classes which have been accepted into the UK Reporting Fund regime are available from the Manager. While it is intended that all practicable steps will be taken to ensure that those Classes retain Reporting Fund status going forward, it cannot be guaranteed that this will be achieved. The relevance of holding Units in a Class which qualify as a reporting fund or, previously a distributing fund, for Unitholders resident or ordinarily resident in the UK for taxation purposes is that, unless holding Units as dealing stock (when different rules apply), they would be liable to UK tax on capital gains (and not income) in respect of any gains arising from the sale, redemption or other disposal of Units (save that a charge to income tax or corporation tax on income may arise on the equalisation element of the disposal proceeds). This treatment will only apply upon disposal if the relevant Class has successfully applied to be a reporting fund or been certified as a distributing fund during the entire holding period by a UK resident or ordinarily resident Unitholder making the disposal. Accordingly any gain arising from the disposal of an investment in a Class that has either not qualified as a reporting fund or been certified as a distributing fund for the whole holding period that accrues to a Unitholder resident or ordinarily resident in the UK for taxation purposes may become subject to income tax or corporation tax on the basis that the gain is treated as an offshore income gain without the benefit of the annual exemption in the case of individual investors. 56

232 It should also be noted that reporting funds are required to prepare accounts in accordance with an acceptable accounting policy, and provide details of their reportable income, which is the accounts figure for total return of the fund adjusted in accordance with certain rules set out in the Offshore Funds Tax Regulations 2009 (the Regulations ). Reporting funds must make returns of their reportable income to HM Revenue & Customs and also provide to UK investors, in one of the ways prescribed under the Regulations, details of their proportionate share of any reportable income which has not previously been distributed to them within 6 months of the end of each accounting period. A UK investor in a reporting fund will then be liable to disclose the applicable reported income, if any, in their tax return for the period during which any relevant amount of income was reported. Other Provisions Unitholders who are exempt from UK tax on capital gains and income from investments (such as exempt approved pension schemes) will enjoy exemption from UK tax on any income from, and any gains made on the disposal of their Units. An individual Unitholder domiciled or deemed for UK tax purposes domiciled in the UK may be liable to UK Inheritance Tax on their units in the event of death or on making certain categories of lifetime transfer. The attention of individuals ordinarily resident in the UK for tax purposes is drawn to the provisions of Chapter 2 of part 13 of the Income Tax Act 2007 These provisions are aimed at preventing the avoidance of income tax by individuals ordinarily resident in the UK through a transaction resulting in the transfer of assets or income to persons (including companies) resident or domiciled outside the UK. These provisions may render them liable to income tax in respect of undistributed income and profits of the Unit Trust on an annual basis to the extent that they have not already been taxed on such income. The attention of persons resident or ordinarily resident in the UK (and who, if they are individuals, are domiciled in the UK) is drawn to the fact that the provisions of Section 13 of the Taxation of Chargeable Gains Act, 1992 could be material to any such person who together with persons, connected to that person, holds 10% or more of the Units in the Unit Trust, if at the same time, the Unit Trust is controlled in such a manner as to render it a company (for UK chargeable gains purposes a Unit Trust is deemed to be a company) that would, were it to have been resident in the UK, be a close company for UK taxation purposes. These provisions could, if applied, result in such a person being treated, for the purposes of the UK taxation of chargeable gains, as if a part of any gain accruing to the Unit Trust (such as on a disposal of its investments that constitutes a chargeable gain for those purposes) had accrued to that person directly; that part being equal to the proportion of the assets of the Unit Trust to which that person would be entitled on the winding up of the Unit Trust at the time when the chargeable gain accrued to the Unit Trust. Under the UK corporate debt regime any corporate Unitholder, which is within the charge to UK corporation tax could be taxed on the increase in the value of its holding on a mark to market basis (rather than on disposal) or will obtain tax relief on any equivalent decrease in value if the investments of the particular sub-fund of the Unit Trust consist of more than 60% (by value) of qualifying investments. Qualifying investments are broadly those which yield a return directly or indirectly in the form of interest. As a Unit Trust constituted under Irish law, the Unit Trust could alternatively be treated as fiscally transparent for UK taxation purposes. If this were to be the case the tax treatment of the Classes of Unit within the Unit Trust would be different from that described above. The principal impact would be that Unitholders resident or ordinarily resident in the UK would become liable to income tax or corporation tax on their proportionate share of the income of the relevant Class of the Unit Trust (subject to the deduction of expenses properly incurred and paid by the Manager out of that income) on an arising basis, whether the income is distributed by the Class, or accumulated on the Unitholder s behalf. However, it should be noted that HMRC has stated that its general view would be that an Irish unit trust should be treated as being opaque for UK taxation purposes. Other Very generally, pursuant to Sections of the means the U.S. Internal Revenue Code of 1986 as modified by U.S. Treasury Regulations, guidance from the IRS, intergovernmental agreements and implementing non-u.s. laws and regulations, and subject to any further guidance (collectively, FATCA ), to the extent a non-u.s. fund makes an investment which would generate U.S. source income, then certain U.S. source interest, dividends, and certain other payments relating to such investment, including, in some cases, gross proceeds realized upon the sale or other disposition of such investment, made to the non-u.s. fund will be subject to a 30% withholding tax unless, very generally, the non-u.s. fund (i) enters into a valid agreement with the Secretary of the U.S. Department of Treasury that obligates the non-u.s. fund to obtain and verify certain information from its investors and comply with annual reporting requirements with respect to certain direct and indirect U.S. investors, among other requirements, or (ii) satisfies the requirements of an applicable intergovernmental agreement (or otherwise qualifies for an exemption from the foregoing). In this respect, Ireland and the United States have entered into an intergovernmental agreement with respect to FATCA implementation (the IGA ), under which the Unit Trust and each Fund may be required to obtain and provide to the Irish government certain information from its investors and meet certain other requirements. Ireland has also enacted regulations to introduce the provisions of the IGA into Irish law. 57

233 If the Unit Trust and each Fund comply with their obligations under the IGA and if Ireland complies with its obligations under the IGA, the Unit Trust and each Fund generally should not be subject to withholding under FATCA, although the Unit Trust or a Fund may be subject to withholding if a member of its affiliated group or a related entity fails to comply with FATCA. Withholding pursuant to FATCA may reduce returns to Unitholders. Any information reported by the Unit Trust to the Irish Revenue Commissioners will be communicated to the US Internal Revenue Service pursuant to the IGA. It is possible that the Irish Revenue Commissioners may also communicate this information to other tax authorities pursuant to the terms of any applicable double tax treaty, intergovernmental agreement or exchange of information regime. Any Unitholder that fails to provide a Fund with any information, documentation or certifications requested by the Fund to meet its obligations pursuant to FATCA may be subject to the 30% withholding tax with respect to the payments described above that are made to such Unitholder, and may be required to indemnify the Fund and the Unit Trust for other taxes and costs attributable to such Unitholder s failure. The Unit Trust and each Fund may disclose information provided by Unitholders to taxing authorities and other parties as necessary or appropriate to comply with FATCA or reduce withholding tax thereunder. Unitholders who fail to provide applicable information, documentation, or certifications may be subject to additional adverse consequences and may be subject to compulsory redemption from each Fund in which they have invested. The requirements of FATCA are complex and remain unclear in certain respects and are potentially subject to material changes resulting from any future guidance. Unitholders are urged to consult their advisers about the requirements imposed on the Unit Trust, each Fund, and the Unitholders and the effect that any requirements may have on Unitholders. Meetings of Unitholders The Trust Deed contains detailed provisions for meetings of Unitholders generally and Unitholders of each particular Class. Meetings may be convened by the Depositary, the Manager or the Unitholders of at least 10% in value of the Units in issue or the Units of the particular Class in issue, on not less than 21 days notice. Notices of meetings will be sent to Unitholders or Unitholders of the particular Class. Unitholders may appoint proxies, who need not themselves be Unitholders. The quorum for a meeting will be Unitholders present in person or by proxy and holding or representing not less than 10% (or in relation to the passing of an Extraordinary Resolution, 25%) of the Units (or Units of the relevant Class) for the time being in issue or, for an adjourned meeting, Unitholders present in person or by proxy whatever their number or the number of Units held by them. On a show of hands every Unitholder who (being an individual) is present in person or by proxy or (being a corporation) is present by a representative or one of its officers as its proxy shall have one vote. On a poll every Unitholder present in person or by representative or proxy shall have one vote for every Unit for which he is registered as the holder. For so long as the Unit Trust is authorised by the Securities and Futures Commission in Hong Kong, a poll will be conducted at a meeting of Unitholders. Such voting rights may be amended in the same manner as any other provision of the Trust Deed. An Extraordinary Resolution is a resolution proposed as such at a meeting of Unitholders at which a quorum is present and passed by a majority of 75% of the total number of votes cast. The Trust Deed provides that a resolution which, in the opinion of the Depositary, affects one Class only of Units will be duly passed if passed at a separate meeting of the Unitholders of that Class. If, in the opinion of the Depositary, the resolution affects more than one Class of Unit but does not give rise to a conflict of interests between the holders of the Units of the respective classes, the resolution will be duly passed if passed at a single meeting of the holders of the Units of those Classes. If the resolution affects, in the opinion of the Depositary, more than one Class of Unit and gives or may give rise to a conflict of interests between the holders of Units of the respective Classes, the resolution will only be duly passed if, in lieu of being passed at a single meeting of the holders of the Units of those Classes, it is passed at separate meetings of the holders of Units of those Classes. Duration of the Unit Trust The Unit Trust will continue indefinitely until terminated in accordance with the Trust Deed either (a) by the Manager if the Net Asset Value of the Unit Trust amounts, at any time, to less than US$25 million or its equivalent or (b) if the Unit Trust ceases to be an authorised UCITS or to be authorised or otherwise officially approved pursuant to the Securities and Futures Ordinance of Hong Kong or c) if any law is passed which renders it illegal or, in the opinion of the Manager, impracticable or inadvisable to continue the Unit Trust or d) by an Extraordinary Resolution of a meeting of Unitholders passed at any time. The Unit Trust may also be terminated by the Depositary if: (a) if the Manager goes into liquidation 58

234 (except a voluntary liquidation for the purpose of reconstruction or amalgamation upon terms previously approved in writing by the Depositary) or if a receiver is appointed over any of their assets; or (b) if in the opinion of the Depositary the Manager is incapable of performing or shall in fact fail to perform their duties satisfactorily or shall do any other thing which in the opinion of the Depositary is calculated to bring the Unit Trust into disrepute or to be harmful to the interest of the Unitholders; or (c) if the Unit Trust shall cease (i) to be an authorised UCITS or (ii) to be authorised or otherwise officially approved pursuant to the Securities and Futures Ordinance of Hong Kong or if any law shall be passed which renders it illegal or in the opinion of the Depositary impracticable or inadvisable to continue the Unit Trust; or (d) if within a period of six months from the date the Depositary expressing in writing to the Manager its desire to retire, the Manager shall have failed to appoint a new Depositary. The Manager has power to terminate any particular Fund on the date one year following the first issue of Units in that Fund or on any date thereafter if the Net Asset Value of that Fund amounts at such date to less than US$2 million or its equivalent. The Trust Deed provides that upon the Unit Trust or any Fund being terminated the Depositary shall: (a) (b) sell all investments held for the Unit Trust or the relevant Fund; and distribute all net cash proceeds derived from the redemption of the assets of each Fund to Unitholders of the relevant Class in proportion to their respective interests or delivery of such form of request as the Depositary may require. The Depositary shall not be bound (except in the case of final distribution) to distribute any moneys for the time being in its hands the amount of which is insufficient to pay the equivalent of US$1.00 in respect of each Unit. The Depositary shall be entitled to retain out of any monies in its hands as part of the property of the Unit Trust or the relevant Fund, full provision for all costs, charges, expenses, claims and demands. Following the termination of a Fund, any unclaimed proceeds or monies which cannot be distributed to investors (e.g. where an investor has not provided the documentation required for client identification and verification purposes or where an investor cannot be traced,) will be held in an Umbrella Cash Account. Your attention is drawn to the section of the Prospectus entitled Anti-Money Laundering and Counter Terrorist Financing Measures Umbrella Cash Accounts for a description of the Umbrella Cash Accounts and associated risks. General Information Any distribution of assets in specie will not be materially prejudicial to the rights of the remaining Unitholders. Any investor wishing to make a complaint regarding any aspect of the Unit Trust or its operations may do so directly to the Manager or to the Investment Manager at the addresses shown under Enquiries To at the end of this document. Proxy Voting Policies and Procedures The Manager will vote proxies on the securities held by the Funds in accordance with the procedures of the Investment Manager. The Investment Manager has established a Proxy Voting Policy which is overseen by the Investment Manager s Proxy Voting Committee. The policy is designed to ensure that votes are cast in accordance with the best economic interest of the clients of the Investment Manager, such as the Funds. The Investment Manager uses the services of an independent third party service provider who provides proxy analysis, information on events requiring voting and vote recommendations, and also to execute the voting decisions of the Investment Manager. The Investment Manager ordinarily votes proxies according to the independent third party service provider s proxy voting recommendations. Proxies on all proposals are voted, except in those instances when the Investment Manager, with guidance from the Proxy Voting Committee if desired, determines that the cost of voting those proxies outweighs the economic benefit to the Investment Manager s clients. The Investment Manager s detailed Proxy Voting Policy is available on request from the Investment Manager. Best Execution The Manager relies on the Best Execution Policy of the Investment Manager. Best Execution is the term used to describe the objective of taking all sufficient steps to obtain the best possible result for each transaction carried out by the Investment Manager on the property of the Unit Trust. In order to obtain the best possible result the Investment Manager takes into account a number of factors including price, both the explicit and implicit costs of trading, size and speed of execution and any other specific considerations relevant to that transaction. 59

235 The Investment Manager s detailed Best Execution Policy is available on request from the Investment Manager. Inducements In the course of providing portfolio management services, the Investment Manager is prohibited from accepting and retaining any fees, commission or monetary benefits, or accepting any non-monetary benefits (other than acceptable minor non-monetary benefits and research which is permitted), where these are paid or provided by any third party or a person acting on their behalf. The Investment Manager considers that: (a) (b) (c) (d) (e) (f) information or documentation relating to a financial instrument or investment service, that is generic in nature or personalised to reflect the circumstances of an individual client; written material from a third party that is commissioned and paid for by a corporate issuer or potential issuer to promote a new issuance by the issuer, or where the third party firm is contractually engaged and paid by the issuer to produce such material on an ongoing basis, provided that the relationship is clearly disclosed in the material and that the material is made available at the same time to any firms wishing to receive it, or to the general public; participation in conferences, seminars and other training events on the benefits and features of a specific financial instrument or an investment service; hospitality of a reasonable de minimis value, including food and drink during a business meeting or a conference, seminar or other training event specified in this clause; research relating to an issue of shares, debentures, warrants or certificates representing certain securities by an issuer, which is: - produced prior to the issue being completed, by a person that is providing underwriting or placing services to the issuer on that issue; and - made available to prospective investors in the issue; and research that is received during a trial period so that the Investment Manager may evaluate the research provider s research service in accordance with FCA rules are regarded as acceptable minor non-monetary benefits as they are capable of enhancing the quality of the service provided by the Investment Manager to the Unitholders; of a scale and nature that it could not be judged to impair the Investment Manager s compliance with its duty to act honestly, fairly and professionally in the best interests of the Unitholders; and reasonable, proportionate and of a scale that is unlikely to influence the Investment Manager s behaviour in any way that is detrimental to the interests of the Unitholders. If the Investment Manager receives any such fees, commissions or monetary benefits, it will transfer these for the benefit of the Unit Trust and will inform the Manager within the standard reporting. Documents Available for Inspection Copies of the following documents may be obtained from the Manager free of charge or inspected during usual business hours on a Business Day at the registered office of the Manager and at the offices of the Investment Manager at the addresses set out in the Directory section of this Prospectus: (a) (b) (c) (d) the Trust Deed; the Prospectus; the Key Investor Information Documents; and the annual and half yearly reports relating to the Unit Trust most recently prepared and published by the Manager; Items (a), (b), (c) and (d) as listed above, may also be obtained from the Paying Agents in the jurisdictions where the Funds have been registered for public marketing. The most recently prepared annual report relating to the Unit Trust can also be obtained by prospective investors on request from the offices of the Manager or from the Paying Agents. 60

236 Appendix I Investment Restrictions Investment may only be made as permitted by the Trust Deed and the Regulations and is subject to any restrictions and limits set out in the Trust Deed and the Regulations. The relevant provisions of the Regulations in respect of the investment restrictions applying to the Unit Trust and each Fund, in addition to other restrictions imposed by the Manager, are set out below. The Manager may from time to time impose such further investment restrictions as shall be compatible with or in the interest of the Unitholders, in order to comply with the laws and regulations of the countries where Units of each Fund are placed. Any such further restrictions shall be in accordance with the UCITS Regulations and in accordance with the requirements of the Central Bank. 1 Permitted Investments Investments of a UCITS are confined to: 1.1 Transferable Securities and Money Market Instruments which are either admitted to official listing on a stock exchange in a Member State or non-member State or which are dealt on a market which is regulated, operates regularly, is recognised and open to the public in a Member State or non-member State. 1.2 Recently issued Transferable Securities which will be admitted to official listing on a stock exchange or other market (as described above) within a year. 1.3 Money Market Instruments, other than those dealt on a regulated market. 1.4 Shares of UCITS. 1.5 Shares of alternative investment funds. 1.6 Deposits with credit institutions. 1.7 FDIs. 2 Investment Restrictions 2.1 A UCITS may invest no more than 10% of net assets in Transferable Securities and Money Market Instruments other than those referred to in paragraph A UCITS may invest no more than 10% of net assets in recently issued Transferable Securities which will be admitted to official listing on a stock exchange or other market (as described in paragraph 1.1) within a year. This restriction will not apply in relation to investment by the UCITS in certain US securities known as Rule 144A securities provided that: - the securities are issued with an undertaking to register with the US Securities and Exchanges Commission within one year of issue; and - the securities are not illiquid securities i.e. they may be realised by the UCITS within seven days at the price, or approximately at the price, at which they are valued by the UCITS. 2.3 A UCITS may invest no more than 10% of net assets in Transferable Securities or Money Market Instruments issued by the same body provided that the total value of Transferable Securities and Money Market Instruments held in the issuing bodies in each of which it invests more than 5% does not exceed 40%. 2.4 The limit of 10% (as described in paragraph 2.3) is raised to 25% in the case of bonds that are issued by a credit institution which has its registered office in a Member State and is subject by law to special public supervision designed to protect bond-holders. If a UCITS invests more than 5% of its net assets in these bonds issued by one issuer, the total value of these investments may not exceed 80% of the net asset value of the UCITS. (To avail of this provision, the prior approval of the Central Bank is required). 2.5 The limit of 10% (as described in paragraph 2.3) is raised to 35% if the Transferable Securities or Money Market Instruments are issued or guaranteed by a Member State or its local authorities or by a non-member State or public international body of which one or more Member States are members. 2.6 The Transferable Securities and Money Market Instruments referred to in paragraphs 2.4 and 2.5 shall not be taken into account for the purpose of applying the limit of 40% referred to in paragraph Cash booked in accounts and held as ancillary liquidity shall not exceed: (a) 10% of the net assets of the UCITS; or (b) where the cash is booked in an account with the Depositary, 20% of net assets of the UCITS. 61

237 2.8 The risk exposure of a UCITS to a counterparty to an over-the-counter ( OTC ) derivative may not exceed 5% of net assets. This limit is raised to 10% in the case of credit institutions authorised in the EEA or credit institutions authorised within a signatory state (other than an EEA Member State) to the Basle Capital Convergence Agreement of July 1988 or credit institutions authorised within Jersey, Guernsey, the Isle of Man, Australia or New Zealand. 2.9 Notwithstanding paragraphs 2.3, 2.7 and 2.8 above, a combination of two or more of the following issued by, or made or undertaken with, the same body may not exceed 20% of net assets: - investments in Transferable Securities or Money Market Instruments; - deposits, and/or - risk exposures arising from OTC derivatives transactions The limits referred to in paragraphs 2.3, 2.4, 2.5, 2.7, 2.8 and 2.9 above may not be combined, so that exposure to a single body shall not exceed 35% of net assets Group companies are regarded as a single issuer for the purposes of paragraphs 2.3, 2.4, 2.5, 2.7, 2.8 and 2.9. However, a limit of 20% of net assets may be applied to investment in Transferable Securities and Money Market Instruments within the same group A UCITS may invest up to 100% of net assets in different Transferable Securities and Money Market Instruments issued or guaranteed by any Member State, its local authorities, non-member States or public international bodies of which one or more Member States are members. The individual issuers must be listed in the Prospectus and may be drawn from the following list: OECD Governments (provided the relevant issues are investment grade), Government of the People s Republic of China, Government of Brazil (provided the issues are of investment grade), Government of India (provided the issues are of investment grade), Government of Singapore, European Investment Bank, European Bank for Reconstruction and Development, International Finance Corporation, International Monetary Fund, Euratom, The Asian Development Bank, European Central Bank, Council of Europe, Eurofima, African Development Bank, International Bank for Reconstruction and Development (The World Bank), The Inter American Development Bank, European Union, Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), Government National Mortgage Association (Ginnie Mae), Student Loan Marketing Association (Sallie Mae), Federal Home Loan Bank, Federal Farm Credit Bank, Tennessee Valley Authority, Straight-A Funding LLC. The UCITS must hold securities from at least 6 different issues, with securities from any one issue not exceeding 30% of net assets Deposits Deposits with any single credit institution other than a credit institution specified in Regulation 7 of the Central Bank UCITS Regulations held as ancillary liquidity shall not exceed: (a) 10% of the NAV of the UCITS; or (b) where the deposit is made with the Depositary 20% of the net assets of the UCITS Recently Issued Transferable Securities (i) (ii) Subject to paragraph (ii) a Fund shall not invest any more than 10% of its assets in securities of the type to which Regulation 68(1)(d) of the UCITS Regulations apply. Paragraph (i) does not apply to an investment by a responsible person in US Securities known as Rule 144 A securities provided that; (a) (b) the relevant securities have been issued with an undertaking to register the securities with the SEC within 1 year of issue; and the securities are not illiquid securities i.e. they may be realised by the UCITS within 7 days at the price, or approximately at the price, which they are valued by the UCITS. 3 Investment in Collective Investment Schemes ( CIS ) 3.1 A UCITS may not invest more than 20% of net assets in any one CIS. However, the Manager has determined that no more than 10% of the net assets of a Fund may be invested in CIS. 3.2 Investment in alternative investment funds may not, in aggregate, exceed 30% of net assets. 3.3 The CIS are prohibited from investing more than 10% of net assets in other open-ended CIS. 62

238 3.4 When a UCITS invests in the units of other CIS that are managed, directly or by delegation, by the UCITS management company or by any other company with which the UCITS management company is linked by common management or control, or by a substantial direct or indirect holding, that management company or other company may not charge subscription, conversion or redemption fees on account of the UCITS investment in the units of such other CIS. 3.5 Where a commission (including a rebated commission) is received by the UCITS manager or investment manager by virtue of an investment in the units of another CIS, this commission must be paid into the property of the UCITS. 4 Index Tracking UCITS 4.1 A UCITS may invest up to 20% of net assets in shares and/or debt securities issued by the same body where the investment policy of the UCITS is to replicate an index which satisfies the criteria set out in the Central Bank UCITS Regulations and is recognised by the Central Bank. 4.2 The limit in paragraph 4.1 may be raised to 35%, and applied to a single issuer, where this is justified by exceptional market conditions. 5 General Provisions 5.1 An investment company, or management company acting in connection with all of the CIS it manages, may not acquire any shares carrying voting rights which would enable it to exercise significant influence over the management of an issuing body. 5.2 A UCITS may acquire no more than: (i) (ii) (iii) (iv) 10% of the non-voting shares of any single issuing body; 10% of the debt securities of any single issuing body; 25% of the units of any single CIS; 10% of the Money Market Instruments of any single issuing body. NOTE: The limits laid down in (ii), (iii) and (iv) above may be disregarded at the time of acquisition if at that time the gross amount of the debt securities or of the Money Market Instruments, or the net amount of the securities in issue cannot be calculated. 5.3 Paragraph 5.1 and 5.2 shall not be applicable to: (i) (ii) (iii) (iv) (v) Transferable Securities and Money Market Instruments issued or guaranteed by a Member State or its local authorities; Transferable Securities and Money Market Instruments issued or guaranteed by a non-member State; Transferable Securities and Money Market Instruments issued by public international bodies of which one or more Member States are members; Units held by a UCITS in the capital of a company incorporated in a non-member State which invests its assets mainly in the securities of issuing bodies having their registered offices in that State, where under the legislation of that State such a holding represents the only way in which the UCITS can invest in the securities of issuing bodies of that State. This waiver is applicable only if in its investment policies the company from the non-member State complies with the limits laid down in paragraphs 2.3 to 2.11, 3.1, 3.2, 5.1, 5.2, 5.4, 5.5 and 5.6, and provided that where these limits are exceeded, paragraphs 5.5 and 5.6 below are observed; Units held by an investment company or investment companies in the capital of subsidiary companies carrying on only the business of management, advice or marketing in the country where the subsidiary is located, in regard to the repurchase of units at unit-holders request exclusively on their behalf. 5.4 UCITS need not comply with the investment restrictions herein when exercising subscription rights attaching to transferable securities or Money Market Instruments which form part of their assets. 5.5 The Central Bank may allow recently authorised UCITS to derogate from the provisions of paragraphs 2.3 to 2.12, 3.1, 3.2, 4.1 and 4.2 for six months following the date of their authorisation, provided they observe the principle of risk spreading. 5.6 If the limits laid down herein are exceeded for reasons beyond the control of a UCITS, or as a result of the exercise of subscription rights, the UCITS must adopt as a priority objective for its sales transactions the remedying of that situation, taking due account of the interests of its Unitholders. 5.7 Neither an investment company, nor a management company or a depositary acting on behalf of a Unit Trust or a management company of a common contractual fund, may carry out uncovered sales of: 63

239 - Transferable Securities; - Money Market Instruments 1 ; - Units of CIS; or - FDI. 5.8 A UCITS may hold ancillary liquid assets. 6 Financial Derivative Instruments ("FDIs") 6.1 The UCITS global exposure (as prescribed in the UCITS Regulations) relating to FDI must not exceed its total net asset value. 6.2 Position exposure to the underlying assets of FDI, including embedded FDI in transferable securities or Money Market Instruments, when combined where relevant with positions resulting from direct investments, may not exceed the investment limits set out in the UCITS Regulations. (This provision does not apply in the case of index based FDI provided the underlying index is one which meets with the criteria set out in the Central Bank UCITS Regulations). 6.3 UCITS may invest in FDIs dealt in OTC provided that the counterparties to OTC transactions are institutions subject to prudential supervision and belonging to categories approved by the Central Bank. 6.4 Investment in FDIs are subject to the conditions and limits laid down by the Central Bank. 1. Any short selling of money market instruments by UCITS is prohibited 64

240 Appendix II Eligible Securities & Derivatives Markets With the exception of permitted investments in unlisted securities, the Unit Trust will only invest in securities traded on a stock exchange or market which meets with the regulatory criteria (regulated, operated regularly, be recognised and open to the public) and which is listed below. For the purpose of the Unit Trust, a market shall be: In relation to any Investment which constitutes a transferable security or an exchange traded derivative: (i) any stock exchange or market which is: - located in any Member State of the EEA; or - located in any of the following countries: Australia Canada Japan New Zealand Switzerland United States of America; or (ii) any stock exchange or market included in the following list:: Argentina Argentina Bahrain Bangladesh Bangladesh Brazil Brazil Brazil Chile Chile China China Colombia Egypt Ghana Hong Kong Iceland India India Indonesia Jordan Kenya Korea, Republic of Malaysia Mauritius Mexico Morocco Nigeria Oman Pakistan Pakistan Pakistan Peru Philippines Russia Serbia Singapore South Africa Sri Lanka Taiwan Thailand Turkey Bolsa de Comercio de Buenos Aires Mercado Abierto Electronico S.A. Bahrain Bourse Dhaka Stock Exchange Ltd Chittagong Stock Exchange Sociedade Operadora Do Mercado De Ativos S.A. BM & F Bovespa SA Central de Custodia e de Liquidacao Financiera de Titulos La Bolsa Electronica De Chile Bolsa de Comercio de Santiago Shanghai Stock Exchange Shenzhen Stock Exchange Bolsa De Valores De Colombia The Egyptian Exchange Ghana Stock Exchange Stock Exchange Of Hong Kong Ltd, The NASDAQ OMX ICELAND hf Bombay/Mumbai Stock Exchange Ltd National Stock Exchange of India Indonesia Stock Exchange Amman Stock Exchange Nairobi Securities Exchange Korea Stock Exchange Bursa Malaysia Berhad Stock Exchange of Mauritius Ltd, The Bolsa Mexicana De Valores (Mexican Stock Exchange) Casablanca Stock Exchange Nigerian Stock Exchange, The Muscat Securities Market Karachi Stock Exchange Lahore Stock Exchange Islamabad Stock Exchange Bolsa De Valores De Lima Philippine Stock Exchange, Inc. Moscow Exchange Belgrade Stock Exchange Singapore Exchange JSE Securities Exchange Colombo Stock Exchange Taiwan Stock Exchange Corporation Stock Exchange of Thailand Istanbul Stock Exchange 65

241 Uruguay Venezuela Vietnam Vietnam Zambia Bolsa De Valores De Montevideo Bolsa De Valores De Caracas Hanoi Securities Trading Centre Ho Chi Minh Stock Exchange Lusaka Stock Exchange (iii) any of the following: - the market organised by the International Capital Market Association; - the listed money market institutions, as described in the Bank of England publication "The Regulation of the Wholesale Markets in Sterling, Foreign Exchange and Bullion" dated April 1988 (as amended from time to time); - - the market in US government securities conducted by primary dealers which are regulated by the Federal Reserve Bank of New York; - - a market comprising dealers which are regulated by the United States National Association of Securities Dealers and the United States Securities and Exchange Commission; - - NASDAQ in the United States; - - The over-the-counter market in Japan regulated by the Securities Dealers Association of Japan; - - The over-the-counter market in the United States regulated by the National Association of Securities Dealers Inc. (also described as the over-the-counter market in the United States conducted by primary and secondary dealers regulated by the Securities and Exchanges Commission and by the National Association of Securities Dealers (and by banking institutions regulated by the US Comptroller of the Currency, the Federal Reserve System or Federal Deposit Insurance Corporation); - - the French market for Titres de Créances Négotiables (over-the-counter market in negotiable debt instruments); - - the over-the-counter market in Canadian Government Bonds, regulated by the Investment Dealers Association of Canada. (iv) All derivatives exchanges on which permitted financial derivative instruments may be listed or traded: - in a Member State; - in a Member State in the European Economic Area (European Union, Norway, Iceland and Liechtenstein); - in the United States of America, on the - Chicago Board of Trade; - Chicago Board Options Exchange; - Chicago Mercantile Exchange; - Eurex US; - New York Futures Exchange; - New York Mercantile Exchange. - in China, on the Shanghai Futures Exchange; - in Hong Kong, on the Hong Kong Futures Exchange; - in Japan, on the - Osaka Securities Exchange; - Tokyo Financial Exchange Inc.; - Tokyo Stock Exchange; - in New Zealand, on the NZX Limited; - in Singapore, on the Singapore Mercantile Exchange. PROVIDED THAT the Depositary and the Manager shall be entitled without the sanction of an Extraordinary Resolution to modify this definition by adding to or deleting from the countries, markets and exchanges described above. 66

242 The markets and exchanges described above are set out herein in accordance with the requirements of the Central Bank which does not issue a list of approved markets. 67

243 Appendix III Efficient Portfolio Management This section of the Prospectus clarifies the instruments and/or strategies which the Investment Manager may use for efficient portfolio management purposes or investment purposes. The Investment Manager will, on request provide supplementary information to Unitholders relating to the risk management methods employed including the quantitative limits that are applied and any recent developments in the risk and yield characteristics of the main categories of investments. Each of the Funds may use the techniques and instruments for efficient portfolio management which are set out in the relevant Supplement. The efficient portfolio management purposes for which the Investment Manager intends to employ derivatives and investment techniques described below are reduction of risk, reduction of cost and the generation of additional capital or income for the relevant Fund with an appropriate level of risk, taking into account the risk profile of the Fund and the general provisions of the UCITS Regulations. The Investment Manager may use various types of derivatives for these purposes, including, without limitation, warrants, exchange traded futures and options, currency forward contracts, swap agreements, contracts for differences, index-linked notes and share and commodity index futures contracts. Any direct operational costs and/or fees which arise as a result of the use of efficient portfolio management techniques which may be deducted from the revenue delivered to a Fund shall be at normal commercial rates and shall not include any hidden revenue. Such direct costs and fees will be paid to the relevant counterparty of the transaction. All of the revenues arising from the use of efficient portfolio management techniques, net of direct and indirect operational costs, will be returned to the relevant Fund. The entities to which any direct and indirect costs and fees are paid will be disclosed in the periodic reports of the Company and will indicate if these are parties related to the Manager or the Depositary. Investors should note that the Unit Trust shall comply with the conditions and limits laid down from time to time by the Central Bank under the UCITS Regulations and set out below. The Manager shall obtain clearance from the Central Bank for an appropriate risk management process in advance of any use by a Fund of derivatives for efficient portfolio management purposes. Information on the revenues generated under such transactions shall be disclosed in the annual and semi-annual reports of the Unit Trust, along with entities to whom direct and indirect operational costs and fees relating to such transactions are paid. Such entities may include the Manager, the Depositary or entities related to the Manager or Depositary. Investors should consult the Risk Considerations section in this Prospectus for information on counterparty risk, credit risk and risks associated with securities financing transactions. Counterparty Procedures The Investment Manager has an established governance committee that approves and monitors dealing and derivative counterparties in accordance with the provisions and requirements set forth within the firm s Global Counterparty Risk Management Policy. Where a counterparty is downgraded to A2 or below (or comparable rating) by S&P, Fitch or Moody s, this shall result in a new credit assessment being conducted. In respect of OTC derivatives all counterparties will be investment grade which are counterparties rated BBB- or better by Standard & Poors or another internationally recognised rating agency or which are, in the opinion of the Investment Manager, of similar credit status. The counterparties to such swap contracts will not have any discretion over the portfolio of a Fund or over the underlying exposures and counterparty approval will not be required for any portfolio transaction of a Fund. The key criteria reviewed by the governance committee are the structure, management, financial strength, internal controls and general reputation of the counterparty in question, as well as the legal, regulatory and political environment in the relevant markets. These counterparties are then constantly monitored using information from share price movements and other market information. Counterparty exposure is recorded daily and monitored and reported to the governance committee. A counterparty selected will be either an investment firm, authorised in accordance with the EU MiFID Directive (2004/39/EC) or a group company of an entity issued with a bank holding company licence from the Federal Reserve of the United States of America where that group company is subject to bank holding company consolidated supervision by that Federal Reserve or an Approved Credit Institution. An Approved Credit Institution is: (i) a credit institution authorised in the EEA; or 68

244 (ii) a credit institution authorised within a signatory state, other than a Member State of the EEA, to the Basle Capital Convergence Agreement of July 1988 (Switzerland, Canada, Japan, United States); or (iii) a credit institution authorised in Jersey, Guernsey, the Isle of Man, Australia or New Zealand. Each counterparty will also be subject to the following: (i) Best Execution the counterparty is monitored and ranked by an established third party analytical system to optimise trading strategies (ii) Operational efficiency the Investment Manager s dealers rank counterparties according to quality of their service. For each trade, best execution overrides any other consideration and the Investment Manager is not permitted to direct trades. Subject to the conditions and limits set out in the UCITS Regulations, a Fund may use repurchase agreements, reverse repurchase agreements and/or stock lending agreements for efficient portfolio management, i.e. to generate additional income for the Fund. Repurchase agreements are transactions in which one party sells a security to the other party with a simultaneous agreement to repurchase the security at a fixed future date at a stipulated price reflecting a market rate of interest unrelated to the coupon rate of the securities. A reverse repurchase agreement is a transaction whereby a Fund purchases securities from a counterparty and simultaneously commits to resell the securities to the counterparty at an agreed upon date and price. A stock lending agreement is an agreement under which title to the loaned securities is transferred by a lender to a borrower with the borrower contracting to deliver equivalent securities to the lender at a later date. The Investment Manager will employ a risk management process in respect of each Fund which enables it to accurately measure, monitor and manage the various risk associated with derivatives. Collateral Management In accordance with the requirements of the Central Bank the Investment Manager will employ a collateral management policy for and on behalf of the Unit Trust and each Fund in respect of collateral received in respect of OTC financial derivative transactions whether used for investment or for efficient portfolio management purposes and for repurchase agreements, reverse repurchase agreements and/or stock lending agreements. The collateral management policy employed by the Investment Manager in respect of the Funds provides that cash and highly liquid assets which meet with the regulatory criteria (as disclosed in the risk management process) in respect of valuation, issue credit quality, correlation and collateral diversification will be permitted collateral for each proposed financial derivative transaction. The collateral received other than cash, will be highly liquid and trade on a regulated market or multilateral trading facility with transparent pricing in order that it can be sold quickly at a price that is close to pre-sale valuation. Collateral will be valued daily at mark-to-market prices and daily variation margin will be used if the value of the collateral falls below coverage requirements. Collateral received will be issued by an entity that is independent from the counterparty and is not expected to display a high correlation with the performance of the counterparty. Collateral will be sufficiently diversified in terms of country, markets and issuers with a maximum exposure to a given issuer of 20% of the relevant Fund s Net Asset Value. If the Fund s exposed to different counterparties, the different baskets of collateral will be aggregated to calculate the 20% limit of exposure to a single issuer. Furthermore, the relevant Fund may be fully collateralised in different transferable securities and Money Market Instruments issued or guaranteed by a Member State, one or more of its local authorities, a third country, or a public international body to which one or more Member State belongs, as set out in Appendix I of the Prospectus, provided the Fund will receive securities from at least six different issues with securities from any single issue not accounting for more than 30% of the Fund s Net Asset Value. The collateral policy operated by the Investment Manager will set appropriate levels of collateral required by the Investment Manager in respect of derivative transactions. The Investment Manager will also employ a clear haircut policy (i.e. a policy in which a pre-determined percentage will be subtracted from the market value of an asset that is being used as collateral) for each class of assets received as collateral taking account of the characteristics of the assets received as collateral such as the credit standing or the price volatility and the outcome of any liquidity stress testing policy. The Investment Manager on behalf of the relevant Fund shall not sell, pledge or re-invest any non-cash collateral received by the relevant Fund Non cash collateral cannot be sold, pledged or re-invested and any cash collateral received for and on behalf of a Fund may be invested in any of the following: (i) (ii) (iii) deposits with relevant institutions (as defined in the Central Bank UCITS Regulations); high quality government bonds; reverse repurchase agreements provided that the transactions are with credit institutions (as defined in the Central Bank UCITS Regulations) and the UCITS is able to recall at any time the full amount of cash on an accrued basis; 69

245 (iv) short term money market funds as defined in the ESMA Guidelines on a Common Definition of European Money Market Funds. Invested cash collateral will be diversified in accordance with the diversification requirements applicable to non-cash collateral and may not be placed on deposit with the counterparty or a related entity. In circumstances where a Fund receives collateral for at least 30% of its assets, the Investment Manager will employ an appropriate stress testing policy to ensure regular stress tests are carried out under normal and exceptional liquidity conditions to enable the Investment Manager to assess the liquidity risk attached to the collateral. The liquidity stress testing policy shall be disclosed in the risk management process employed by the Investment Manager. Valuation of collateral Collateral that is received by a Fund will be valued on at least a daily basis and assets that exhibit high price volatility will not be accepted as collateral unless suitably conservative haircuts are in place. The non-cash collateral received by a Fund will be at mark to market given the required liquid nature of the collateral. Safe-keeping of collateral received by a Fund Collateral received by a Fund on a title transfer basis shall be held by the Depositary or a duly appointed sub-depositary of the Depositary. For other types of collateral arrangements, the collateral can be held by the Depositary, a duly appointed sub-depositary of the Depositary or by a third party custodian which is subject to prudential supervision and which is unrelated to the provider of the collateral. Posting of collateral by a Fund Collateral provided by a Fund to a counterparty shall be agreed with the relevant counterparty and may comprise of cash or any types of assets held by the relevant Fund in accordance with its investment objective and policies and shall, where applicable, comply with the requirements of EMIR. Collateral may be transferred by a Fund to a counterparty on a title transfer basis where the assets are passed outside of the custody network and are no longer held by the Depositary or its sub-depositary. In such circumstances, subject to the requirements of SFTR, the counterparty to the transaction may use those assets in its absolute discretion. Where collateral is posted by a Fund to a counterparty under a security collateral arrangement where title to the relevant securities remains with the relevant Fund, such collateral must be safekept by the Depositary or its sub-depositary, however, subject to the requirements of SFTR, such assets may be subject to a right of re-use by the counterparty. Risks associated with re-use of collateral are set down in Risk Considerations: Operational Risk linked to Management of Collateral. 70

246 Barings ASEAN Frontiers Fund A I Management Fee 1.25% 0.75% Administration, depositary and operating expenses fee 0.45% (Hedged Classes %) 0.25% (Hedged Classes %) Base Currency USD USD Hedged Class Available Unhedged Class Available Class A AUD Hedged Acc Class A CHF Hedged Acc Class A EUR Hedged Acc Class A RMB Hedged Acc Class A EUR Acc Class A EUR Inc Class A GBP Acc Class A GBP Inc Class A USD Acc Class A USD Inc Class I CHF Hedged Acc Class I EUR Hedged Acc Class I EUR Acc Class I GBP Acc Class I GBP Inc Class I USD Acc Distribution Units (Inc) dividend payment dates Paid annually no later than 31 July in each year AUD 6,000 - Minimum Subscription and Holding Level 1 USD 5,000 2 USD 10,000,000 2 EUR 3,500 EUR 10,000,000 GBP 2,500 GBP 10,000,000 AUD Subsequent Minimum Investment 1 USD USD EUR 500 EUR 500 GBP 500 GBP Or such lower amount as the Manager may determine at their discretion 2 CHF or RMB equivalent of the USD amount specified Investment Objective and Policies The investment objective of the Fund is to achieve long-term capital growth in the value of assets by investing in companies in Asia which the Manager believes will benefit from the economic growth and development of the region. The Fund will seek to achieve its investment objective by investing at least 70% of its total assets at any one time in equities and equity-related securities of companies incorporated in, or exercising the predominant part of their economic activity in, countries which are members of the Association of South-East Asian Nations (ASEAN) or quoted or traded on the stock exchanges in those countries. The members of ASEAN include (but not to be limited to) Singapore, Thailand, the Philippines, Malaysia, Indonesia and Vietnam. A description of equity-related securities is described under the section headed Investment Policy: General. For this purpose, total assets exclude cash and ancillary liquidities. The Fund may also invest up to 30% of its total assets, either directly or through depositary receipts, in equities and equity-related securities of companies that are (i) incorporated, or (ii) exercising the predominant part of their economic activity, or (iii) quoted or traded on the stock exchanges, in (a) other markets in the Asia Pacific region including, but not limited to, Korea, Hong Kong, China, Taiwan, India, Australia, New Zealand, Pakistan, Sri Lanka and Bangladesh but excluding Japan, or (b) other markets which the Manager believes would have the potential to benefit from the economic growth and development from the Asia Pacific region excluding Japan, when and if they consider it appropriate. The Fund may also invest in collective investment schemes in accordance with the requirements of the Central Bank up to a maximum of 10% of the Net Asset Value of the Fund. With regard to investment in China, no more than 10% of the Net Asset Value of the Fund at any one time may be invested directly or indirectly in China A Shares and B Shares. It is anticipated that this exposure will be obtained either directly through investment in China A Shares listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange 71

247 via the Connect Schemes (as further described in the section of the Prospectus entitled Investment Policy; General ) or indirectly through investment in other eligible collective investment schemes or participation notes. The Fund may invest in various FDIs as detailed under the section headed Investment Policy: General for investment purposes or for efficient portfolio management in accordance with the requirements of the Central Bank but they will not be used extensively for investment purposes. When derivatives are used the Fund will be leveraged through the leverage inherent in the use of derivatives. Strategy The Investment Manager believes that equity markets contain unrecognised growth potential and seeks to identify this through the analysis of a company s business model whilst incorporating wider economic and social governance trends, often referred to as fundamental analysis. Equity investment teams at the Investment Manager share a common investment approach, best described as Growth at a Reasonable Price (GARP). GARP seeks to identify reasonably priced growth companies whose qualities are unrecognised by market participants by performing structured fundamental analysis with a disciplined investment process. Based on the region, country or sector bias of a Fund, analysis of potential growth companies includes their future financial performance as well as their business model and management style, while focusing on long-term earnings growth of three to five years. The Investment Manager s strategy favours companies with well-established or improving business franchises, profitability focused management and strong balance sheets that enable the company to execute its business strategy. The Investment Manager regards these companies as higher quality as they provide transparency and allow investment professionals to forecast earnings with greater confidence. This allows the investment manager to offer funds which should exhibit lower volatility over time. Profile of a Typical Investor The Fund may be suitable for investors seeking capital growth over a medium to long term investment horizon and who understand and are prepared to accept that the value of the Fund may rise and fall more frequently and to a greater extent than other types of investment. This typically means a minimum time horizon of 5 years but can be less depending on individual risk profiles. 72

248 Barings Asia Growth Fund A I Management Fee 1.25% 0.75% Administration, depositary and operating expenses fee 0.45% (Hedged Classes %) 0.35% (Hedged Classes %) Base Currency USD USD Hedged Class Available Unhedged Class Available Class A AUD Hedged Acc Class A CHF Hedged Acc Class A EUR Hedged Acc Class A RMB Hedged Acc Class A EUR Acc Class A EUR Inc Class A GBP Acc Class A GBP Inc Class A USD Acc Class A USD Inc Class I CHF Hedged Acc Class I EUR Hedged Acc Class I EUR Acc Class I GBP Acc Class I GBP Inc Class I USD Acc Distribution Units (Inc) dividend payment dates Paid annually no later than 31 July in each year AUD 6,000 - Minimum Subscription and Holding Level 1 USD 5,000 2 USD 10,000,000 2 EUR 3,500 EUR 10,000,000 GBP 2,500 GBP 10,000,000 AUD Subsequent Minimum Investment 1 USD USD EUR 500 EUR 500 GBP 500 GBP Or such lower amount as the Manager may determine at their discretion 2 CHF or RMB equivalent of the USD amount specified Investment Objective and Policies The investment objective of the Fund is to achieve long-term capital growth in the value of assets by investing in Asia and the Pacific region excluding Japan. The Fund will seek to achieve its investment objective by investing at least 70% of its total assets in equities and equityrelated securities of companies incorporated in, or exercising the predominant part of their economic activity in the Asia Pacific region excluding Japan, or quoted or traded on the stock exchanges in those countries, including developed and emerging markets. For this purpose, total assets exclude cash and ancillary liquidities. For the remainder of its total assets, the Fund may invest outside the Asia Pacific region (excluding Japan) as well as in fixed income and cash. While the Fund will aim to diversify its investments, allocation to certain countries, industries or sectors may be more than 30% of its total assets depending on the Investment Manager s assessment at different times. In order to implement the investment policy the Fund may gain exposure through American depositary receipts, global depositary receipts and other equity related securities including participation notes, structured notes, equity-linked notes and debt securities convertible into equities which will satisfy the criteria for transferable securities as set out in the Central Bank s UCITS Regulations. The Fund may also invest in collective investment schemes in accordance with the requirements of the Central Bank up to a maximum of 10% of the Net Asset Value of the Fund. The Fund may invest in FDIs including futures, options, warrants and forward contracts for efficient portfolio management and for investment purposes. 73

249 With regard to investment in China, no more than 10% of the Net Asset Value of the Fund at any one time may be invested directly or indirectly in China A Shares and B Shares. It is anticipated that this exposure will be obtained either directly through investment in China A Shares listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange via the Connect schemes (as further described in the section of the Prospectus entitled Investment Policy; General ) or indirectly through investment in other eligible collective investment schemes or participation notes. Participation notes may be used to gain access to the equity markets in China and Vietnam. When derivatives are used the Fund will be leveraged through the leverage inherent in the use of derivatives. Although the Fund can use derivatives they will not be used extensively for investment purposes. Strategy The Investment Manager believes that equity markets contain unrecognised growth potential and seeks to identify this through the analysis of a company s business model whilst incorporating wider economic and social governance trends, often referred to as fundamental analysis. Equity investment teams at the Investment Manager share a common investment approach, best described as Growth at a Reasonable Price (GARP). GARP seeks to identify reasonably priced growth companies whose qualities are unrecognised by market participants by performing structured fundamental analysis with a disciplined investment process. Based on the region, country or sector bias of a Fund, analysis of potential growth companies includes their future financial performance as well as their business model and management style, while focusing on long-term earnings growth of three to five years. The Investment Manager s strategy favours companies with well-established or improving business franchises, profitability focused management and strong balance sheets that enable the company to execute its business strategy. The Investment Manager regards these companies as higher quality as they provide transparency and allow investment professionals to forecast earnings with greater confidence. This allows the investment manager to offer funds which should exhibit lower volatility over time. Profile of a Typical Investor The Fund may be suitable for investors seeking capital growth over a medium to long term investment horizon and who understand and are prepared to accept that the value of the Fund may rise and fall more frequently and to a greater extent than other types of investment. This typically means a minimum time horizon of 5 years but can be less depending on individual risk profiles. 74

250 Barings Australia Fund A I Management Fee 1.25% 0.75% Administration, depositary and operating expenses fee 0.45% (Hedged Classes %) 0.25% Base Currency USD USD Hedged Class Available Class A RMB Hedged Acc - Unhedged Class Available Class A AUD Inc Class A EUR Acc Class A EUR Inc Class A GBP Inc Class A USD Inc Class I AUD Acc Class I EUR Acc Class I GBP Acc Class I GBP Inc Class I USD Acc Distribution Units (Inc) dividend payment dates Paid annually no later than 31 July in each year AUD 6,000 AUD 10,000,000 Minimum Subscription and Holding Level 1 USD 5,000 2 USD 10,000,000 EUR 3,500 EUR 10,000,000 GBP 2,500 GBP 10,000,000 AUD 500 AUD 500 Subsequent Minimum Investment 1 USD USD 500 EUR 500 EUR 500 GBP 500 GBP Or such lower amount as the Manager may determine at their discretion 2 RMB equivalent of the USD amount specified Investment Objective and Policies The investment objective of the Fund is to achieve long-term capital growth in the value of assets by investing in Australia. The Fund will seek to achieve its investment objective by investing at least 70% of its total assets at any one time in equities and equity-related securities of companies incorporated in, or exercising the predominant part of their economic activity in Australia, or quoted or traded on the stock exchanges in Australia. A description of equity-related securities is described under the section headed Investment Policy: General. For this purpose, total assets exclude cash and ancillary liquidities. The Fund may also invest up to 30% of its total assets, either directly or through depositary receipts, in equities and equity-related securities of companies that are (i) incorporated, or (ii) exercising the predominant part of their economic activity, or (iii) quoted or traded on the stock exchanges, in (a) markets other than Australia in the Asia Pacific region, or (b) other markets which the Manager believes would have the potential to benefit from the economic growth and development from the Asia Pacific region, when and if they consider it appropriate. The Fund may also invest in collective investment schemes in accordance with the requirements of the Central Bank up to a maximum of 10% of the Net Asset Value of the Fund. The Fund may invest in various FDIs as detailed under the section headed Investment Policy: General for investment purposes or for efficient portfolio management in accordance with the requirements of the Central Bank but they will not be used extensively for investment purposes. When derivatives are used the Fund will be leveraged through the leverage inherent in the use of derivatives. Strategy The Investment Manager believes that equity markets contain unrecognised growth potential and seeks to identify this through the analysis of a company s business model whilst incorporating wider economic and social governance trends, often referred to as fundamental analysis. Equity investment teams at the Investment Manager share a common investment approach, best described as Growth at a Reasonable Price (GARP). 75

251 GARP seeks to identify reasonably priced growth companies whose qualities are unrecognised by market participants by performing structured fundamental analysis with a disciplined investment process. Based on the region, country or sector bias of a Fund, analysis of potential growth companies includes their future financial performance as well as their business model and management style, while focusing on long-term earnings growth of three to five years. The Investment Manager s strategy favours companies with well-established or improving business franchises, profitability focused management and strong balance sheets that enable the company to execute its business strategy. The Investment Manager regards these companies as higher quality as they provide transparency and allow investment professionals to forecast earnings with greater confidence. This allows the investment manager to offer funds which should exhibit lower volatility over time. Profile of a Typical Investor The Fund may be suitable for investors seeking capital growth over a medium to long term investment horizon and who understand and are prepared to accept that the value of the Fund may rise and fall more frequently and to a greater extent than other types of investment. This typically means a minimum time horizon of 5 years but can be less depending on individual risk profiles. 76

252 Barings Europa Fund A C I Management Fee 1.25% 1.25% 0.75% Administration, depositary and operating expenses fee 0.45% (Hedged Classes %) 0.45% 0.25% Base Currency USD USD USD Hedged Class Available Class A RMB Hedged Acc N/A N/A Unhedged Class Available Class A EUR Acc Class A EUR Inc Class A USD Inc Class C EUR Inc³ Class C USD Inc³ Class I EUR Acc Class I GBP Inc Class I USD Acc Distribution Units (Inc) dividend payment dates Paid annually no later than 31 July in each year 2 USD 5,000 Minimum Subscription and Holding Level 1 2 USD 500 Subsequent Minimum Investment 1 USD 5,000 USD 10,000,000 EUR 3,500 EUR 3,500 EUR 10,000,000 GBP 10,000,000 USD 500 USD 500 EUR 500 EUR 500 EUR 500 GBP Or such lower amount as the Manager may determine at their discretion 2 RMB equivalent of the USD amount specified ³Class C will be available to certain distributors who have in place a placing agency or distribution arrangement with the Manager or their delegates. Class C Units shall also pay a distributor fee of 1% per annum of the Net Asset Value of the Fund attributable to the Classes. Such fee when applied will be payable to the distributor who has been appointed as a distributor pursuant to a placing agency agreement between the Manager or their delegate and the relevant distributor. The distributor fee shall be accrued daily and is payable quarterly in arrears. Investment Objective and Policies The investment objective of the Fund is to achieve long-term capital growth in the value of assets by investing in companies in Europe (including the United Kingdom). The Fund will seek to achieve its investment objective by investing at least 70% of its total assets at any one time in equities and equity-related securities of companies incorporated in, or exercising the predominant part of their economic activity in, any European country (including the United Kingdom), or quoted or traded on the stock exchanges in those countries. Within Europe the portfolio will be balanced according to the Manager s assessment of investment prospects for individual countries. There is no limit to the proportion of the Fund which may be invested in any one country. A description of equity-related securities is described under the section headed Investment Policy: General. For this purpose, total assets exclude cash and ancillary liquidities. The Fund will invest on a continual basis at least 75% of its assets into qualifying securities (which include equity securities issued by companies where the head office is in the EU or an EEA Country (other than Liechtenstein) and subject to corporate income tax under normal conditions) in order for French investors to take advantage of the French PEA Savings Plan PEA (Plan d Epargne en Actions equity savings plans). The Fund may also invest in collective investment schemes in accordance with the requirements of the Central Bank up to a maximum of 10% of the Net Asset Value of the Fund. The Fund may invest in various FDIs as detailed under the section headed Investment Policy: General for investment purposes or for efficient portfolio management in accordance with the requirements of the Central Bank but they will not be used extensively for investment purposes. When derivatives are used the Fund will be leveraged through the leverage inherent in the use of derivatives. 77

253 Strategy The Investment Manager believes that equity markets contain unrecognised growth potential and seeks to identify this through the analysis of a company s business model whilst incorporating wider economic and social governance trends, often referred to as fundamental analysis. Equity investment teams at the Investment Manager share a common investment approach, best described as Growth at a Reasonable Price (GARP). GARP seeks to identify reasonably priced growth companies whose qualities are unrecognised by market participants by performing structured fundamental analysis with a disciplined investment process. Based on the region, country or sector bias of a Fund, analysis of potential growth companies includes their future financial performance as well as their business model and management style, while focusing on long-term earnings growth of three to five years. The Investment Manager s strategy favours companies with well-established or improving business franchises, profitability focused management and strong balance sheets that enable the company to execute its business strategy. The Investment Manager regards these companies as higher quality as they provide transparency and allow investment professionals to forecast earnings with greater confidence. This allows the investment manager to offer funds which should exhibit lower volatility over time. Profile of a Typical Investor The Fund may be suitable for investors seeking capital growth over a medium to long term investment horizon and who understand and are prepared to accept that the value of the Fund may rise and fall more frequently and to a greater extent than other types of investment. This typically means a minimum time horizon of 5 years but can be less depending on individual risk profiles. 78

254 Barings Hong Kong China Fund A C I Management Fee 1.25% 1.25% 0.75% Administration, depositary and operating expenses fee 0.45% (Hedged Classes %) 0.45% 0.25% Base Currency USD USD USD Hedged Class Available Unhedged Class Available Distribution Units (Inc) dividend payment dates Class A RMB Hedged Acc Class A EUR Acc Class A EUR Inc Class A GBP Inc Class A USD Acc Class A USD Inc Class A HKD Inc 2 USD 5,000 Minimum Subscription and Holding Level 1 2 USD 500 Subsequent Minimum Investment Class C EUR Inc 3 Class C USD Inc 3 Class I EUR Acc Class I GBP Acc Class I GBP Inc Class I USD Acc Paid annually no later than 31 July in each year USD 5,000 USD 10,000,000 EUR 3,500 EUR 3,500 GBP 10,000,000 GBP 2,500 EUR 10,000,000 USD 500 USD 500 EUR 500 EUR 500 GBP 500 GBP 500 EUR Or such lower amount as the Manager may determine at their discretion 2 RMB or HKD equivalent of the USD amount specified 3 Class C will be available to certain distributors who have in place a placing agency or distribution arrangement with the Manager or their delegates. Class C Units shall also pay a distributor fee of 1% per annum of the Net Asset Value of the Fund attributable to the Classes. Such fee when applied will be payable to the distributor who has been appointed as a distributor pursuant to a placing agency agreement between the Manager or their delegate and the relevant distributor. The distributor fee shall be accrued daily and is payable quarterly in arrears. Investment Objective and Policies The investment objective of the Fund is to achieve long-term capital growth in the value of assets by investing in Hong Kong, China and Taiwan. The Fund will seek to achieve its investment objective by investing at least 70% of its total assets at any one time, either directly in equities or through equity-related securities (including depositary receipts) of companies (i) incorporated, or (ii) exercising the predominant part of their economic activity, or (iii) quoted or traded on the stock exchanges in markets in Hong Kong or China. A description of equity-related securities is described under the section headed Investment Policy: General. For this purpose, total assets exclude cash and ancillary liquidities. The Investment Manager may also invest up to 30% of its total assets outside the fund s principal geographies (including but not limited to Taiwan), market sectors, currency or asset classes. With regard to investment in debt securities, the Fund does not have any specific restrictions or limits on the credit rating of the underlying debt securities. The portfolio will be balanced according to the Manager s assessment of investment prospects but may, depending upon underlying investment conditions, emphasise investment in companies operating in those sectors of the Hong Kong or China economies that, in the Manager s opinion, provide the determinants for Hong Kong s or China's economic growth such as those involved in international trade, property and construction activity, engineering, electronics or the service sectors. The Fund may also invest in collective investment schemes in accordance with the requirements of the Central Bank up to a maximum of 10% of the Net Asset Value of the Fund. With regard to investment in China, no more than 10% of the Net Asset Value of the Fund at any one time may be invested directly or indirectly in China A Shares and B Shares. It is anticipated that this exposure will be obtained either 79

255 directly through investment in China A Shares listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange via the Connect Schemes (as further described in the section of the Prospectus entitled Investment Policies; General ) or indirectly through investment in other eligible collective investment schemes or participation notes. The Fund may invest in various FDIs as detailed under the section headed Investment Policy: General for investment purposes or for efficient portfolio management in accordance with the requirements of the Central Bank but they will not be used extensively for investment purposes. When derivatives are used the Fund will be leveraged through the leverage inherent in the use of derivatives. Strategy The Investment Manager believes that equity markets contain unrecognised growth potential and seeks to identify this through the analysis of a company s business model whilst incorporating wider economic and social governance trends, often referred to as fundamental analysis. Equity investment teams at the Investment Manager share a common investment approach, best described as Growth at a Reasonable Price (GARP). GARP seeks to identify reasonably priced growth companies whose qualities are unrecognised by market participants by performing structured fundamental analysis with a disciplined investment process. Based on the region, country or sector bias of a Fund, analysis of potential growth companies includes their future financial performance as well as their business model and management style, while focusing on long-term earnings growth of three to five years. The Investment Manager s strategy favours companies with well-established or improving business franchises, profitability focused management and strong balance sheets that enable the company to execute its business strategy. The Investment Manager regards these companies as higher quality as they provide transparency and allow investment professionals to forecast earnings with greater confidence. This allows the investment manager to offer funds which should exhibit lower volatility over time. Profile of a Typical Investor The Fund may be suitable for investors seeking capital growth over a medium to long term investment horizon and who understand and are prepared to accept that the value of the Fund may rise and fall more frequently and to a greater extent than other types of investment. This typically means a minimum time horizon of 5 years but can be less depending on individual risk profiles. 80

256 Barings International Bond Fund A I Management Fee 0.75% 0.50% Administration, depositary and operating expenses fee 0.45% (Hedged Classes %) 0.25% Base Currency USD USD Hedged Class Available Unhedged Class Available Class A RMB Hedged Inc Monthly 3 Class A EUR Inc Class A GBP Inc Class A USD Inc N/A Class I EUR Acc Class I GBP Acc Class I GBP Inc Class I USD Acc Accumulation Units (Acc) Available No Yes Distribution Units (Inc) dividend payment dates Minimum Subscription and Holding Level 1 Paid twice yearly no later than 31 January and 31 July in each year³ Paid annually no later than 31 July in each year USD 5,000 2 USD 10,000,000 EUR 3,500 EUR 10,000,000 GBP 2,500 GBP 10,000,000 2 USD 500 Subsequent Minimum Investment 1 USD 500 EUR 500 EUR 500 GBP 500 GBP Or such lower amount as the Manager may determine at their discretion 2 RMB equivalent of the USD amount specified 3 Distributions in respect of the Class A RMB Hedged Inc Monthly class are paid monthly no later than the last business day in each month. Investment Objective and Policies The investment objective of the Fund is to achieve an attractive level of income together with long-term growth in the value of assets by investing in a diversified portfolio of fixed interest securities. The Fund will seek to achieve its investment objective by investing at least 70% of its total assets at any one time in an internationally diversified portfolio of both corporate and government fixed interest securities The portfolio may also, from time to time, include securities with floating interest rates. For this purpose, total assets exclude cash and ancillary liquidities. Fixed interest securities will predominately be rated A- or better by Standard & Poor s ( S&P ) or another internationally recognised rating agency or which are, in the opinion of the Manager, of similar credit status, and floating rate securities should be rated AA- or better by S&P or another internationally recognised credit rating agency or which are, in opinion of the Manager, of similar credit status. Where a security is unrated by S&P, the rating will be that determined by the Investment Manager to be of comparable quality. No restriction on credit quality will apply to sovereign borrowers issuing in their own currency. However, the Fund is not expected to invest more than 10% of its net assets in securities issued and/or guaranteed by a single sovereign (including its government, a public or local government of that country) which is rated below investment grade by an internationally recognised rating agency. In the event of split rating, the highest credit rating accredited to the relevant sovereign issuer will be deemed the reference credit rating. Subject to the percentage of the Fund s assets which may be invested in unlisted securities (see Appendix I ), the Manager will only invest in securities that are traded on exchanges and markets which are regulated, operate regularly, are recognised and which are open to the public. The Fund may also invest in collective investment schemes in accordance with the requirements of the Central Bank up to a maximum of 10% of the Net Asset Value of the Fund. 81

257 Although the Net Asset Value of the Fund is expressed in US dollars, the relative attraction of investments denominated in other currencies is a major consideration of the Manager. The Fund may invest in various FDIs as detailed under the section headed Investment Policy: General for investment purposes or for efficient portfolio management in accordance with the requirements of the Central Bank but they will not be used extensively for investment purposes. When derivatives are used the Fund will be leveraged through the leverage inherent in the use of derivatives. Strategy The Fund seeks investment return by investing in bond markets where the Investment Manager believes yields are likely to fall and avoiding those that are thought to be expensive. The overall duration, or interest rate sensitivity, of the Fund will fluctuate as the Investment Manager s expectations for economic developments change, relative to the market. The Fund will also look to add value through foreign exchange management by taking active currency positions relative to the benchmark, identifying those markets where currencies are attractive, for example due to sound economic fundamentals or rising interest rates. Leverage and Value at Risk When derivatives are used the Fund will be leveraged through the leverage inherent in the use of derivatives. Although the Fund can use derivatives they will not be used extensively for investment purposes. - When leverage is calculated as the sum of the notionals of all of the derivatives used, as prescribed by the Central Bank UCITS Regulations, the level of the Fund s leverage is expected to vary between 0% and 70% of its Net Asset Value. - Leverage may vary over time and higher leverage levels are possible, in particular during periods of significant net subscriptions or redemptions into the Fund where futures would be used for exposure management. In such circumstances, leverage, when calculated as the sum of the notionals of all of the derivatives used, is not expected to exceed 100% of the Fund s Net Asset Value at any time. In order to measure market risk volatility the Fund will use a relative Value at Risk methodology ( VaR ) which is an advanced risk measurement methodology. The VaR approach is a measure of the maximum potential loss due to market risk rather than leverage. More particularly, the VaR approach measures the maximum potential loss at a given confidence level (probability) over a specific time period under normal market conditions. The VaR of the Fund will not be greater than twice the VaR of the Fund s reference portfolio. The reference portfolio for the purpose of the Fund s relative VaR calculation is the Citigroup World Government Bond Index. The VaR for the Fund will be calculated daily using the Monte Carlo approach, one-tailed 99% confidence level, a 10 day holding period and a one year historical observation period with an 11 day half-life. The Fund shall, at all times, comply with the limits on levels of market risk measured through the use of the Value at Risk methodology as set out above. Profile of a Typical Investor The Fund may be suitable for investors seeking an attractive level of income together with capital growth over a medium to long term investment horizon and who understand and are prepared to accept that the value of the Fund may rise and fall more frequently and to a greater extent than other types of investment. This typically means a minimum time horizon of 5 years but can be less depending on individual risk profiles. 82

258 Address: Baring Asset Management Limited 155 Bishopsgate London EC2M 3XY Important information: This document is approved and issued by Baring Asset Management Limited. Disclosure: Baring Asset Management Limited Authorised and Regulated by the Financial Conduct Authority 155 Bishopsgate, London, EC2M 3XY