- CSOP Select US Dollar Bond Fund (the “Sub-Fund”) is a fixed income fund domiciled in Hong Kong and invests primarily in US dollar (“USD”) denominated debt securities.
- The Sub-Fund may invest in debt securities denominated in other currencies and this may subject to currency and foreign exchange risks.
- Investors may expose to credit/insolvency risk of the counterparties of debt securities and it may be subject to downgrading risk.
- The Sub-Fund may invest substantially in below investment grade or unrated bonds which are subject to higher credit risk, liquidity risk and volatility risk. Investors may lose substantially under the worst case scenario.
- Any increase in interest rates may adversely impact the value of the Sub-Fund’s fixed income portfolio.
- The Manager may at its discretion pay dividends out of or effectively pay dividend out of the capital of the Sub-fund. Payment of distributions out of capital or effectively out of capital amounts to a return or a withdrawal of part of the amount an investor originally invested or from any capital gain attributable to that original investment, and may result in an immediate decrease in net asset value.
- The Sub-Fund may use derivative instruments for currency hedging purposes only. The use of derivative instruments for these purposes may become ineffective and/or cause the Sub-Fund to suffer significant losses.
- RMB is currently not freely convertible and is subject to exchange controls. There is no guarantee that RMB will not depreciate.
Investors should not invest in the Sub-Fund solely based on this material alone.