All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying assets. Generally, the higher the potential return of an investment, the greater the risk. The risks of investing in this Fund include:
Investment risk: The Fund has exposure to share markets. The risk of an investment in the Fund is higher than an investment in a typical bank account or fixed income investment. Amounts distributed to unitholders may fluctuate, as may the Fund’s unit price. The unit price may vary by material amounts, even over short periods of time, including during the period between a redemption request or application for units being made and the time the redemption unit price or application unit price is calculated.
Small companies risk: The fund has exposure to companies generally considered small to medium in terms of market capitalisation. Companies within this sector of the market may include recently established entities with limited public information, or entities engaged in new-to-market concepts which may be speculative in nature. Shares in companies in this sector are generally less liquid and more volatile than those of larger companies. Small companies exposure may result in higher unit price volatility and an increased risk of loss.
Asian region risk: Investments in the Asian region are generally subject to a higher risk than investments in developed market economies. Many Asian countries may be considered emerging markets, and are exposed to risk factors including lower liquidity, the potential for political unrest, the increased likelihood of sovereign intervention, currency volatility, and increased legal and tax risk. Investments in Asian markets therefore may experience increased asset price volatility, and incur higher currency, default, and liquidity risk. In addition, the Underlying Fund may trade in certain Asian markets through crossmarket investment channels, such as the stock connect programs that link China’s mainland stock exchanges to that of Hong Kong. Use of such programs may expose the Fund to risks which would not usually arise when trading equities in other countries. This includes the risk of restrictions on buying or selling certain companies, quotas which could lead to the inability to trade or the forced sale if a quota is reached, suspension risk and changes to the rules or regulations of the stock connect programs.
More information on the risks of investing in the Fund is contained in the Product Disclosure Statement, which should be considered before deciding to invest in the Fund.