01)Investment in the E Fund Selection Investment Series – E Fund (HK) Select Bond Fund (the “Sub-Fund”) is subject to normal market fluctuations and other risks inherent in the Sub-Fund’s assets. Accordingly, there is a risk that you may not recoup the original amount invested in the Sub-Fund or may lose a substantial part or all of your investment.
02)The Sub-Fund invests primarily in a portfolio consisting primarily of investment grade debt securities denominated in offshore RMB, USD, EUR or HKD which aim to generate a steady flow of income in addition to capital appreciation for the Sub-Fund and may be subject to a) Risks relating to debt securities (including Credit risk, Risks relating to credit rating, Below investment grade and unrated securities risk, credit rating downgrading risk, Interest rates risk, Valuation risk, Volatility and Liquidity risk and Sovereign debt risk), b) Concentration risk, c) Emerging market risk, d) Foreign exchange risk, e) RMB currency risk and RMB denominated classes risk, f) Hedged RMB denominated classes risk, g) Risks relating to repurchase agreements, h) Risks relating to reverse repurchase agreements, i) Convertible bonds risk, j) Risks relating to equity securities, k) Eurozone and European country risk and l) “Dim sum” bond risk.
03)The Sub-Fund may invest in derivatives for hedging or investment purposes to the extent permitted by the Code and in adverse situations its use of financial derivative instruments may become ineffective and/or cause the Sub-Fund to suffer significant loss.
04)Distributions of the Sub-Fund may be paid out of the capital of the Sub-Fund. Investors should note that payment of distributions out of 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 and such distributions will result in an immediate reduction of the net asset value of the relevant units. The distribution amount and net asset value of the hedged unit class may be adversely affected by differences in the interest rates of the class currency of the hedged unit class and the Sub-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 unit classes.
05)You should not invest in the Sub-Fund unless the intermediary who sells it to you has explained to you that the Sub-Fund is suitable for you having regard to your financial situation, investment experience and objectives.
06)Investors should not invest in the Sub-Fund based on this document alone. Before making any investment decision, the investor should read the Sub-Fund’s offering documents carefully including the risk factors.
