The China New Balance Opportunity Fund (the "Sub-Fund") is a sub-fund of the China Southern Dragon Dynamic Fund (the "SICAV"), which is an open-ended investment company domiciled in Luxembourg. Its home regulator is Commission de Surveillance du Secteur Financier ("CSSF").
- Investment involves risks. The value of the Sub-Fund can be volatile and could go down substantially and you may lose a certain amount of your investment.
- The Sub-Fund invests in equities, which are subject to normal market fluctuations and other risks inherent in investing in equities. Past performance is not a guide to future performance.
- The Sub-Fund invests in Mainland China so it may be subject to emerging market risk and concentration risk.
- Some of the assets of the Sub-Fund are denominated in RMB. Shareholders will be exposed to movements of the exchange rate between the currency of the class of Shares they invest in and RMB. RMB is not a freely convertible currency. There can be no assurance that RMB will not depreciate.
- The Sub-Fund invests in small-cap company shares which can be more volatile and less liquid than those of larger companies.
- The Sub-Fund may use derivative instruments for hedging or efficient portfolio management purposes. The use of derivative instruments for these purposes may become ineffective and/or cause the Sub-Fund to suffer significant losses.
- Shareholders may incur a performance fee notwithstanding the Shareholder may have suffered a loss in the investment in the Shares. The performance fee may create an incentive for the Manager to make investments for a Sub-Fund, which are riskier than would be the case in the absence of a fee based on the performance of a Sub-Fund.
- The Manager may, at its discretion, pay dividends out of capital. The Manager may also, at its discretion, pay dividends out of gross income while all or part of the fees and expenses of the sub-fund are charged to/paid out of the capital of the sub-fund, resulting in an increase in distributable income for the payment of dividends by the sub-fund and therefore, the sub-fund may effectively pay dividends out of the capital. Payment of dividends out of capital or effectively out of the capital 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 dividends out of the capital or effectively out of the capital of the sub-fund may result in an immediate reduction of the NAV per Unit.
Investor should not invest in the Sub-Fund Solely based on this material and should read the Hong Kong Prospectus and the key Facts Statement for further details.