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E Fund ETFs Trust - E Fund CSI 100 A-Share Index ETF

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  • Market Maker(s) RMB Counter[Stock Code:83100]
  • Market Maker(s) HKD Counter[Stock Code:03100]

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Investors should note investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should read the explanatory memorandum for details and risk factors in particular those associated with investment in emerging markets. Investors should not only base on this marketing material alone to make investment decisions. This website has not been reviewed by the Securities and Futures Commission of Hong Kong. Issuer: E Fund Management (Hong Kong) Co., Limited

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E Fund Investment Fund Series - E Fund RMB Fixed Income Fund
01).E Fund Investment Fund Series – E Fund RMB Fixed Income Fund (the “Sub-Fund”) is an investment fund and not a bank deposit. There is no guarantee of the repayment of principal. There is also no guarantee of dividend or distribution payments during the period you hold the units of the Sub-Fund. The instruments invested by the Sub-Fund may fall in value and therefore your investment in the Sub-Fund may suffer losses.
02).The Sub-Fund invests primarily in RMB denominated and settled debt securities issued within China through the Renminbi Qualified Foreign Institutional Investor (“RQFII”) quota of the Manager. The Sub-Fund is denominated in RMB and may be subject to a) RMB currency risk and foreign exchange risk, b) Risks relating to China market / Single Country Investment Risk, c) PRC tax risk, d) Risks relating to RQFII, e) Currency conversion risk, f) Convertible bonds risk, g) Risks relating to debt securities (including Credit risk, Risk relating to credit rating, Downgrading risk, Interest rates risk, Valuation risk, Liquidity risk and Risk associated with urban investment bonds), h) Risks relating to repurchase agreements, i) Risks relating to reverse repurchase agreements.
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 may result in an immediate reduction of the net asset value of the relevant units.
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. Please read the Sub-Fund’s offering documents for details and risk factors.

E Fund ETFs Trust - E Fund CSI 100 A-Share Index ETF
01).E Fund CSI 100 A-Share ETF (the “Fund”) is a passively managed exchange traded fund (“ETF”) and is traded on the Stock Exchange of Hong Kong (“SEHK”) like stocks. The investment objective is to provide investment result that, before fees and expenses, closely corresponds to the performance of the CSI 100 Index (the “Index”). The Fund invests in the PRC’s domestic securities market through the Manager’s status as a RMB Qualified Foreign Institutional Investor (“RQFII”) and the RQFII quota obtained by the Manager on behalf of the Fund.
02).The Fund is subject to concentration risk as a result of tracking the performance of a single geographical region (the PRC).
03).In the event of any default of either a PRC broker or the PRC Custodian (directly or through its delegate) in the execution or settlement of any transaction or in the transfer of any funds or securities in the PRC, the Fund may encounter delays in recovering its assets which may in turn impact the NAV.
04).The RQFII policy and rules are new and there may be uncertainty to its implementation and such policy and rules are subject to change, such changes may also have potential retrospective effect. Repatriations by RQFIIs in respect of fund such as the Fund conducted in RMB are permitted daily and are not subject to any lock-up periods or prior approval. There is no assurance, however, that PRC rules and 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 Fund’s ability to meet redemption requests.
05).The Fund will utilize the Manager’s RQFII quota. In the event the quota is reached and the Manager is unable to acquire additional RQFII quota, the Manager may suspend creations of Units. In such event the trading price of a Unit will be at a significant premium to the NAV of each Unit.
06).Not all stockbrokers or custodians may be ready and able to carry out trading and settlement of the Units which may be amongst the first RMB denominated RQFII ETF units listed on the SEHK.
07).Investing in emerging markets, such as the PRC, involves a greater risk of loss than investing in more developed markets due to, among other factors, greater political, tax, economic, foreign exchange, liquidity and regulatory risks.
08).The Fund is denominated in RMB. RMB is currently not freely convertible and is subject to exchange controls and restrictions. There is no guarantee that the value of RMB against the investors’ base currencies (for example HKD) will not depreciate.
09).A-Shares are subject to trading bands which restrict increase and decreases in the trading price. Units listed on the SEHK are not. This difference may also increase the level of premium discount of the Unit price to its NAV.
10).The Fund is not “actively managed” and therefore, when there is a decline in the Index, the Fund will also decrease in value. The Manager will not adopt any temporary defensive position against any market downturn. Investors may lose part or all of their investment.
11).Generally, retail investors can only buy or sell Units of the Fund on the SEHK. The trading price of the Units on the SEHK is driven by market factors such as the demand and supply of the Units. Therefore, the Units may trade at a substantial premium or discount to the Fund’s NAV.
12).Due to fees and expenses of the Fund, liquidity of the market and different investment strategies adopted by the Manager, the Fund’s return may deviate from that of the Index.
13).The SEHK’s dual counter model in Hong Kong is new and the Fund is one of the first ETFs to have Units traded in both RMB and HKD. The novelty and relatively untested nature of the dual counter may bring additional risks for investing in the Fund. If there is a suspension of the inter-counter transfer of Units between the HKD counter and the RMB counter for any reason, Unitholders will only be able to trade their Units in the relevant counter on the SEHK. The market price on the SEHK of Units traded in HKD and of Units traded in RMB may deviate significantly due to different factors such as market liquidity, supply and demand in each counter and the exchange rate between the RMB and the HKD (in both the onshore and the offshore markets). As such investors may pay more or receive less when buying or selling Units traded in HKD on the SEHK than in respect of Units traded in RMB and vice versa. Investors without RMB accounts may buy and sell HKD traded Units only. Such investors will not be able to buy or sell RMB traded Units and should note that distributions are made in RMB only. As such, investors may suffer a foreign exchange loss and incur foreign exchange associated fees and charges to receive their dividend. Not all brokers and CCASS participants may be familiar with and able to buy Units in one counter and to sell Units in the other or to carry out inter-counter transfers of Units or to trade both counters at the same time. This may inhibit or delay an investor dealing in both HKD traded Units and RMB traded Units and may mean an investor can only trade in one currency.
14).The Stock Connect is novel in nature. The relevant regulations are untested and subject to change. There is no certainty as to how they will be applied. The Stock Connect is subject to quota limitations which may restrict the Fund’s ability to invest in A-Shares through the programme on a timely basis. Where a suspension in the trading through the programme is effected, the Fund’s ability to access the PRC market through the programme will be adversely affected. The programme requires the development of new information technology systems on the part of the stock exchanges and exchange participants and may be subject to operational risk. In the event that the Fund’s ability to invest in A-Shares through the Stock Connect on a timely basis is adversely affected, the Manager will rely on RQFII investments to achieve the Fund’s investment objective.
15).The Manager makes a withholding income tax provision at 10% for the Fund’s gross realised capital gains derived from trading of A-Shares (via RQFII) since the Fund’s inception up to and including 14 November 2014. The Manager does not make withholding income tax provision for gross realised or unrealised capital gains derived from trading of A-Shares (either via Stock Connect or RQFII) from 17 November 2014 onwards. 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 Stock Connect on investments in the PRC (which may have retrospective effect). The potential application of tax treaties is also uncertain. The Fund may have greater tax liabilities in the PRC than provided for. Any shortfall between the provision and actual tax liabilities, which will be debited from the Fund’s assets, will cause the Fund’s NAV to be adversely affected. In this case, the then existing and subsequent investors will be disadvantaged as they will bear for a disproportionately higher amount of tax liabilities as compared to the liability at the time of investment in the Fund. On the other hand, the actual tax liabilities may be lower than the tax provision made. In that case, persons who have already redeemed their Units in the Fund before the actual tax liabilities are determined will not be entitled or have any right to claim any part of such overprovision.
16).You should not make any investment decision solely based on the information on this material alone. Please read the relevant offering documents for details including the risk factors before making any investment decisions. Investment involves risk. Past performance is not indicative of future performance. This document has not been reviewed by the Securities and Futures Commission of Hong Kong.

E Fund ETFs Trust - E Fund CES China 120 Index ETF
01).E Fund CES China 120 Index ETF (the “Sub-Fund”) is a passively managed exchange traded fund (“ETF”) and is traded on the Stock Exchange of Hong Kong (“SEHK”) like stocks. The investment objective is to provide investment result that, before fees and expenses, closely corresponds to the performance of the CES China 120 Index (the “Index”). The Sub-Fund invests in the PRC’s domestic securities market through the Manager’s status as a RMB Qualified Foreign Institutional Investor (“RQFII”) as well as SEHK-listed stocks.
02).The Sub-Fund is subject to concentration risk as a result of tracking the performance of a single geographical region (the PRC).
03).In the event of any default of either a PRC broker or the PRC Custodian (directly or through its delegate) in the execution or settlement of any transaction or in the transfer of any funds or securities in the PRC, the Sub-Fund may encounter delays in recovering its assets which may in turn adversely impact the NAV.
04).The RQFII policy and rules are new and there may be uncertainty to its implementation and such policy and rules are subject to change. The uncertainty and change of the laws and regulations in the PRC (including the RQFII policy and rules) may adversely impact the Sub-Fund and such changes may also have potential retrospective effect. Repatriations by RQFIIs in respect of fund such as the Sub-Fund conducted in RMB are permitted daily and are not subject to any lock-up periods or prior approval. There is no assurance, however, that PRC rules and regulations will not change or that repatriation restrictions will not be imposed in the future. Any new restrictions on repatriation of the invested capital and net profits may impact on the Sub-Fund’s ability to meet redemption requests.
05).The Sub-Fund will utilize the Manager’s RQFII quota. In the event the quota is reached and the Manager is unable to acquire additional RQFII quota, the Manager may suspend creations of Units. In such event the trading price of a Unit will be at a significant premium to the NAV of each Unit.
06).The Units will be amongst the first RMB denominated securities to be traded on the SEHK and settled in CCASS and also amongst the first securities with a dual counter arrangement (i.e. HKD traded Units and RMB traded Units) traded on the SEHK and settled in CCASS. Not all stockbrokers or custodians may be ready and able to carry out trading and settlement of the RMB traded Units.
07).Investing in emerging markets, such as the PRC, involves a greater risk of loss than investing in more developed markets due to, among other factors, greater political, tax, economic, foreign exchange, liquidity and regulatory risks.
08).The Sub-Fund is denominated in RMB. RMB is currently not freely convertible and is subject to exchange controls and restrictions. The base currency of the Sub-Fund is RMB. Non-RMB based investors in Units are therefore exposed to foreign exchange risk as a result of fluctuations in the RMB exchange rate against their base currencies. There is no guarantee that the value of RMB against the investors’ base currencies (for example HKD) will not depreciate.
09).A-Shares are subject to trading bands which restrict increase and decrease in the trading price. Units listed on the SEHK are not. This difference may also increase the level of premium or discount of the Unit price to its NAV.
10).The Sub-Fund is not “actively managed” and therefore, when there is a decline in the Index, the Sub-Fund will also decrease in value. The Manager will not adopt any temporary defensive position against any market downturn. Investors may lose part or all of their investment.
11).Generally, retail investors can only buy or sell Units of the Sub-Fund on the SEHK. The trading price of the Units on the SEHK is driven by market factors such as the demand and supply of the Units. Therefore, the Units may trade at a substantial premium or discount to the Sub-Fund’s NAV.
12).Due to fees and expenses of the Sub-Fund, liquidity of the market and different investment strategies adopted by the Manager, the Sub-Fund’s return may deviate from that of the Index.
13).The SEHK’s dual counter model in Hong Kong is new and the Sub-Fund will be one of the first ETFs to have Units traded in both RMB and HKD. The novelty and relatively untested nature of the dual counter may bring additional risks for investing in the Sub-Fund. If there is a suspension of the inter-counter transfer of Units between the HKD counter and the RMB counter for any reason, Unitholders will only be able to trade their Units in the relevant counter on the SEHK. The market price on the SEHK of Units traded in HKD and of Units traded in RMB may deviate significantly due to different factors such as market liquidity, supply and demand in each counter and the exchange rate between the RMB and the HKD (in both the onshore and the offshore markets). As such investors may pay more or receive less when buying or selling Units traded in HKD on the SEHK than in respect of Units traded in RMB and vice versa. Investors without RMB accounts may buy and sell HKD traded Units only. Such investors will not be able to buy or sell RMB traded Units and should note that distributions are made in RMB only. As such, investors may suffer a foreign exchange loss and incur foreign exchange associated fees and charges to receive their dividend. Not all brokers and CCASS participants may be familiar with and able to buy Units in one counter and to sell Units in the other or to carry out inter-counter transfers of Units or to trade both counters at the same time. This may inhibit or delay an investor dealing in both HKD traded Units and RMB traded Units and may mean an investor can only trade in one currency.
14).Units can only be redeemed in a combination of cash (RMB) and in-kind (SEHK-listed constituents of the Index). Unlike cash only redemption, upon completion of a combination of cash and in-kind redemption, investors will continue to be exposed to the relevant investment risks in equity securities as well as the relevant risks of investment in such SEHK-listed constituents of the Index until the investors subsequently dispose such SEHK-listed constituents of the Index.
15).The Index is a new index having only been launched on 10 December 2012 by a new Index Provider, China Exchanges Services Company Limited (“CESC”). Given that both the Index Provider and the Index are relatively new, the Sub-Fund may be riskier in respect of the operation of the Index than other exchange traded funds tracking more established indices with longer operating histories.
16).The Sub-Fund is one of the first exchange traded funds tracking an index whose constituents are listed in two different jurisdictions, i.e. Hong Kong and the PRC. The cross border investment of the Sub-Fund in securities listed in two different jurisdictions of which one is the PRC exposes the Sub-Fund to the investment risks of the PRC as well as the other jurisdiction, Hong Kong. Any disruption to the equities markets in either jurisdiction may affect the investment and the performance of the Sub-Fund. Investment in the Sub-Fund may therefore be riskier than other exchange traded funds which invest in securities listed in one jurisdiction only.
17).The Sub-Fund may be terminated early under certain circumstances, for example, where the Index is no longer available for benchmarking, or the Index licence agreement is terminated by either party thereto without giving any reasons at any time upon giving 3 months' prior written notice, or the Index licence agreement is terminated by CESC with reasonable endeavor to serve 3 months’ prior written notice to the Manager in the event that CESC ceases to compute, compile and publish the Index and does not offer a replacement index, or if the size of the Sub-Fund falls below RMB100 million. Investors should refer to the section “Termination” in the Prospectus for further details.
18).The Stock Connect is novel in nature. The relevant regulations are untested and subject to change. There is no certainty as to how they will be applied. The Stock Connect is subject to quota limitations which may restrict the Sub-Fund’s ability to invest in A-Shares through the programme on a timely basis. Where a suspension in the trading through the programme is effected, the Sub-Fund’s ability to access the PRC market through the programme will be adversely affected. The programme requires the development of new information technology systems on the part of the stock exchanges and exchange participants and may be subject to operational risk. In the event that the Fund’s ability to invest in A-Shares through the Stock Connect on a timely basis is adversely affected, the Manager will rely on RQFII investments to achieve the Sub-Fund’s investment objective.
19).The Manager makes a withholding income tax provision at 10% for the Sub-Fund’s gross realised capital gains derived from trading of A-Shares (via RQFII) since the Sub-Fund’s inception up to and including 14 November 2014. The Manager does not make withholding income tax provision for gross realised or unrealised capital gains derived from trading of A-Shares (either via Stock Connect or RQFII) from 17 November 2014 onwards. 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 Stock Connect on investments in the PRC (which may have retrospective effect). The potential application of tax treaties is also uncertain. The Sub-Fund may have greater tax liabilities in the PRC than provided for. Any shortfall between the provision and actual tax liabilities, which will be debited from the Sub-Fund’s assets, will cause the Sub-Fund’s NAV to be adversely affected. In this case, the then existing and subsequent investors will be disadvantaged as they will bear for a disproportionately higher amount of tax liabilities as compared to the liability at the time of investment in the Sub-Fund. On the other hand, the actual tax liabilities may be lower than the tax provision made. In that case, persons who have already redeemed their Units in the Sub-Fund before the actual tax liabilities are determined will not be entitled or have any right to claim any part of such overprovision.
20).You should not make any investment decision solely based on the information on this material alone. Please read the relevant offering documents for details including the risk factors before making any investment decisions.
21).Investment involves risk. Past performance is not indicative of future performance. This document has not been reviewed by the Securities and Futures Commission of Hong Kong.

E Fund ETFs Trust - E Fund Citi Chinese Government Bond 5-10 Years Index ETF
01).E Fund Citi Chinese Government Bond 5-10 Years Index ETF (the “Sub-Fund”) is a passively managed exchange traded fund (“ETF”) and is traded on the Stock Exchange of Hong Kong (“SEHK”) like stocks. The investment objective is to provide investment result that, before fees and expenses, closely corresponds to the performance of the Citi Chinese Government Bond 5-10 Years Index (the “Index”). The Sub-Fund is a physical RMB Qualified Foreign Institutional Investor (“RQFII”), RMB denominated exchange traded fund investing directly in RMB denominated PRC Treasury Bonds through the Manager’s status as a RQFII.
02).The fact that the Sub-Fund is one of the first exchange traded funds to hold PRC Treasury Bonds directly makes the Sub-Fund riskier than traditional exchange traded funds investing in A-Shares or in markets other than the PRC.
03).The Sub-Fund will invest directly in PRC Treasury Bonds. As such the Sub-Fund is subject to concentration risk as a result of tracking the performance of a single geographical region (the PRC).
04).Because the Sub-Fund invests in fixed-income securities, the Sub-Fund is subject to interest rate risk. Interest rate risk is the risk that the value of the Sub-Fund’s portfolio will decline because of rising interest rates. Interest rate risk is generally lower for shorter-term investments and higher for longer-term investments.
05).The bid and offer spread of the price of bonds may be large, so the Sub-Fund may incur significant trading and realisation costs and may suffer losses accordingly.
06).Although the Sub-Fund will not invest in debt securities rated by local rating agencies with a credit rating below BBB, investors should note that there is no assurance that the bond invested by the Sub-Fund or the bond issuer will continue to have an investment grade rating or continue to be rated.
07).The Sub-Fund is exposed to the credit/insolvency risk of issuer of the bonds that the Sub-Fund may invest in. The bonds that the Sub-Fund invests in are typically unsecured debt obligations and are not supported by any collateral. The Sub-Fund will be fully exposed to the credit/insolvency risk of the bond issuers as an unsecured creditor. The Sub-Fund invests in sovereign debt securities which involve special risks. The PRC governmental entity that controls the repayment of sovereign debt may not be able or willing to repay the principal and/or interest when due in accordance with the terms of such debt, and the Sub-Fund’s recourse against a defaulting PRC government entity is limited.
08).The Sub-Fund will utilize the Manager’s RQFII quota. In the event the quota limit is reached and the Manager is unable to acquire additional RQFII quota, the Manager may suspend creations of Units. In such event the trading price of a Unit will be at a significant premium to the NAV of each Unit.
09).The Sub-Fund is not “actively managed” and therefore, when there is a decline in the Index, the Sub-Fund will also decrease in value.
10).The Manager makes a withholding income tax provision at 10% for the Sub-Fund’s gross realised capital gains derived from trading of A-Shares (via RQFII) since the Sub-Fund’s inception up to and including 14 November 2014. The Manager does not make withholding income tax provision for gross realised or unrealised capital gains derived from trading of A-Shares (either via Stock Connect or RQFII) from 17 November 2014 onwards. 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 Stock Connect on investments in the PRC (which may have retrospective effect). The potential application of tax treaties is also uncertain. The Sub-Fund may have greater tax liabilities in the PRC than provided for. Any shortfall between the provision and actual tax liabilities, which will be debited from the Sub-Fund’s assets, will cause the Sub-Fund’s NAV to be adversely affected. In this case, the then existing and subsequent investors will be disadvantaged as they will bear for a disproportionately higher amount of tax liabilities as compared to the liability at the time of investment in the Sub-Fund. On the other hand, the actual tax liabilities may be lower than the tax provision made. In that case, persons who have already redeemed their Units in the Sub-Fund before the actual tax liabilities are determined will not be entitled or have any right to claim any part of such overprovision.
11).You should not make any investment decision solely based on the information on this material alone. Please read the relevant offering documents for details including the risk factors before making any investment decisions.
12).Investment involves risk. Past performance is not indicative of future performance. This document has not been reviewed by the Securities and Futures Commission of Hong Kong.

E Fund Selection Investment Series - E Fund Wealth China Bond Fund
01).E Fund Selection Investment Series – E Fund Wealth China Bond Fund (the “Sub-Fund”) is an investment fund and not a bank deposit. There is no guarantee of the repayment of principal. There is also no guarantee of dividend or distribution payments during the period you hold the units of the Sub-Fund. The instruments invested by the Sub-Fund may fall in value and therefore your investment in the Sub-Fund may suffer losses.
02).RMB is currently not freely convertible and is subject to exchange controls and restrictions and investors may be adversely affected by movements of the exchange rates between Renminbi and other currencies. There is no guarantee that RMB will not depreciate. If you convert Hong Kong Dollar or any other currency into RMB so as to invest in the Sub-Fund and subsequently convert the RMB redemption proceeds back into Hong Kong Dollar or any other currency, you may suffer a loss if RMB depreciates against Hong Kong Dollar or other currency.
03).China is considered as an emerging market and investing in China may subject the Sub-Fund to higher economic, political, social, legal and regulatory risks than more developed economies or markets. Investments in China may also be less liquid and more volatile. The Sub-Fund invests primarily in securities related to the China market and may be subject to additional concentration risk. The China debt securities market may be subject to higher volatility compared to more developed markets. The prices of securities traded in such market may be subject to fluctuations.
04).The PRC tax rules and practices in relation to RQFII are new and their implementation is not tested and is uncertain. In particular, there is limited guidance on withholding income tax treatment on capital gains arising from PRC fixed income investments. The potential application of tax treaties is also uncertain. In light of a recent notice issued by the Ministry of Finance of the PRC, the State Administration of Taxation of the PRC and the China Securities Regulatory Commission under Caishui [2014] No.79, the Manager, acting in the best interest of Unitholders, re-assesses the WIT provisioning approach. The Manager, after carefully considered the assessment and having taken and considered independent professional tax advice, will (a) withhold 10% of the Sub-Fund’s gross realised and unrealised capital gains derived from trading of PRC bonds since its inception, until further clarification by the PRC authorities; (b) make tax provision for capital gains tax at 10% of the Sub-Fund’s gross realised capital gains derived from the trading of PRC equity investment (including China A-Shares) since the Sub-Fund’s inception up to and including 14 November 2014; and (c) for the avoidance of doubt, from 17 November 2014 onwards, the Manger will not make provision for gross realised or unreaslied capital gains derived from the trading of PRC equity investment (including China A-Shares). There is a possibility of the rules being changed and taxes being applied retrospectively. There is a risk that any tax provision made by the Manager in respect of the Sub-Fund may be more than or less than the Sub-Fund’s actual tax liabilities, which may potentially cause substantial loss to the Sub-Fund. The Manager will also make a withholding income tax (“WIT”) provision of 10% for the account of the Sub-Fund on dividend and interest arise from investments in the PRC Securities if the WIT is not withheld at source. Unitholders may be disadvantaged depending upon the final tax liabilities, the level of provision and when they subscribed and/or redeemed their Units. If the actual tax levied by the SAT is higher than that provided for by the Manager so that there is a shortfall in the tax provision amount, investors should note that the Net Asset Value of the Sub-Fund may be lowered, as the Sub-Fund will ultimately have to bear the full amount of tax liabilities. In this case, the additional tax liabilities will only impact Units in issue at the relevant time, and the then existing Unitholders and subsequent Unitholders will be disadvantaged as such Unitholders will bear, through the Sub-Fund, a disproportionately higher amount of tax liabilities as compared to that borne at the time of investment in the Sub-Fund. On the other hand, the actual tax liabilities may be lower than the tax provision made, in which case only the then existing Unitholders will benefit from a return of the extra tax provision. Those persons who have already sold/redeemed their Units before the actual tax liabilities are determined will not be entitled or have any right to claim any part of such overprovision.
05).The Sub-Fund’s investment through a RQFII is subject to applicable regulations imposed by the PRC authorities. Although repatriations by RQFIIs in respect of the Sub-Fund are currently not subject to repatriation restrictions or prior approval, there is no assurance that PRC rules and 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 Sub-Fund’s ability to meet redemption requests from the Unitholders.
06).The Manager (as RQFII) may from time to time make available RQFII quota for the purpose of the Sub-Fund’s direct investment into the PRC. The Sub-Fund may not have exclusive use of the entire RQFII quota granted by SAFE to the RQFII (i.e. the Manager), as the RQFII may in its discretion allocate RQFII quota which may otherwise be available to the Sub-Fund to other public fund products under the Manager’s management. Subject to SAFE’s approval, the Manager may also allocate RQFII quotas to other non-public fund products and/or accounts. There can be no assurance that the RQFII can allocate sufficient RQFII quota to the Sub-Fund to meet all applications for subscription of Units in the Sub-Fund.
07).The Sub-Fund is exposed to the credit/insolvency risk of issuers of the RMB denominated debt securities it invests in. Such securities are typically unsecured debt obligations and are not supported by collateral. The Sub-Fund is therefore fully exposed to the credit/insolvency risk of its counterparties as an unsecured creditor. Some of the RMB denominated debt securities may be unrated. Lower rated / unrated securities would generally be considered to have a higher degree of counterparty risk, credit risk and liquidity risk than higher rated, lower yielding securities. The rating criteria and methodology used by Chinese local rating agencies may be different from those adopted by most of the established international credit rating agencies. Therefore, such rating system may not provide an equivalent standard for comparison with securities rated by international credit rating agencies. The Sub-Fund may invest up to 100% of its Net Asset Value in Urban Investment Bonds. Urban Investment Bonds are issued by LGFVs. Although local governments may be seen to be closely connected to Urban Investment Bonds, such bonds are typically not guaranteed by local governments or the central government of the PRC. As such, local governments or the central government of the PRC are not obliged to support any LGFVs in default. In the event that the LGFVs default on payment of principal or interest of the Urban Investment Bonds, the Sub-Fund could suffer substantial loss and the Net Asset Value of the Sub-Fund could be adversely affected. Investors should note that debt securities issued by quasi-government organizations or local governments are not guaranteed by the PRC central government. If there is a default by the quasi-government organization or local government issuing such debt securities, the Sub-Fund will suffer losses as a result of investing in such securities.
08).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 may result in an immediate reduction of the net asset value of the relevant units.
09).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.
10).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.

E Fund Selection Investment Series - E Fund China Equity Dividend Fund
01) E Fund Selection Investment Series – E Fund China Equity Dividend Fund (the “Sub-Fund”) is an investment fund and not a bank deposit. There is no guarantee of the repayment of principal. There is also no guarantee of dividend or distribution payments during the period you hold the units of the Sub-Fund. The instruments invested by the Sub-Fund may fall in value and therefore your investment in the Sub-Fund may suffer losses.
02) Investment in equity securities is subject to market risk. The prices of such securities may also be volatile and a number of factors may affect stock prices, including but not limited to, investment sentiment, political environment, economic environment, regional or global economic instability, currency and interest rate fluctuations. If the market value of equity securities in which the Sub-Fund invests in goes down, its Net Asset Value may be adversely affected, and investors may suffer substantial losses.
03) 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 may result in an immediate reduction of the net asset value of the relevant units.
04) The price at which securities may be purchased or sold by the Sub-Fund and the net asset value of the Sub-Fund may be adversely affected if trading markets for China A-Shares are limited or absent. The China A-Share market may be more volatile and unstable (for example, due to the risk of suspension of a particular stock or government intervention) than those in more developed markets. Market volatility and settlement difficulties in the China A-Share markets may also result in significant fluctuations in the prices of the securities traded on such markets and thereby may affect the value of the Sub-Fund. Trading band limits are imposed by the stock exchanges in China on China A-Shares, where trading in any China A-Share security on the relevant stock exchange may be suspended if the trading price of the security has increased or decreased to the extent beyond the trading band limit. A suspension will render it impossible for the Manager to liquidate positions and can thereby expose the Sub-Fund to significant losses. Further, when the suspension is subsequently lifted, it may not be possible for the Manager to liquidate positions at a favourable price.
05) RMB is currently not freely convertible and is subject to exchange controls and restrictions and investors may be adversely affected by movements of the exchange rates between Renminbi and other currencies. The Sub-Fund’s underlying investments may be denominated in currencies different from the base currency of the Sub-Fund. A decline in the exchange rate of the currency would adversely affect the value of the security and under such circumstances the Sub-Fund’s value may be adversely affected, and investors may suffer a significant loss as a result.
06) China is considered as an emerging market and investing in China may subject the Sub-Fund to higher economic, political, social, legal and regulatory risks than more developed economies or markets. Investments in China may also be less liquid and more volatile. The Sub-Fund invests primarily in securities related to the China market and may be subject to additional concentration risk. The China equity securities market may be subject to higher volatility compared to more developed markets. The prices of securities traded in such market may be subject to fluctuations.
07) 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.
08) 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.

E Fund Selection Investment Series - E Fund Select Bond Fund
01) Investment in the E Fund Selection Investment Series – E Fund 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) Convertible bonds risk, h) Risks relating to equity securities, i) Eurozone and European country risk and j) “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.

Selection Investment Series - E Fund Greater China Leaders Fund
01) Investment in the Selection Investment Series – E Fund Greater China Leaders 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 equity and equity-related securities of “leading” companies which are incorporated in, have their area of primary activity in or are related to the growth of the economy in the People’s Republic of China and may be subject to a) Concentration risk, b) Risks of investing in A-Shares, c) Risks associated with the Stock Connect, d) Risks associated with RQFII, e) PRC related risks, f) Risks associated with ADRs and GDRs, g) PRC tax risk, h) Foreign exchange risk, i) Equity risk and j) Liquidity risk.
03) 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. 
04) 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. 

Leveraged and Inverse Series - E Fund Yuanta Hang Seng Index Daily (-1x) Inverse Product
01) The Product is a derivative product and is not suitable for all investors. There is no guarantee of the repayment of principal. Therefore your investment in the Product may suffer substantial or total losses.
02) This is an inverse product.  It is different from conventional exchange traded funds as it seeks inverse investment results relative to the Index and only on a Daily basis.
03) This product is not intended for holding longer than one day as the performance of this product over a longer period may deviate from and be uncorrelated to the inverse performance of the Index over the period.
04) This product is designed to be used for short term trading or hedging purposes, and is not intended for long term investment.
05) This product only targets sophisticated trading-oriented investors who understand the potential consequences of seeking Daily inverse results and the associated risks and constantly monitor the performance of their holdings on a Daily basis.
06) Daily rebalancing of Product’s holdings causes a higher level of portfolio transactions than compared to the conventional exchange traded funds. High levels of transactions increase brokerage and other transaction costs.
07) You should not make any investment decision solely based on the information on this material alone. Please read the relevant offering documents for details including the risk factors before making any investment decisions. Investment involves risk. Past performance is not indicative of future performance. This document has not been reviewed by the Securities and Futures Commission of Hong Kong.

Leveraged and Inverse Series - E Fund Yuanta Hang Seng Index Daily (2x) Leveraged Product
01) E Fund Yuanta Hang Seng Index Daily (2x) Leveraged Product (the “Product”) is a derivative product and is not suitable for all investors. There is no guarantee of the repayment of principal. Therefore your investment in the Product may suffer substantial or total losses.
02) The Product is a leveraged product.  It is different from conventional exchange traded funds as it seeks leveraged investment results relative to the Index and only on a Daily basis.
03) The Product is not intended for holding longer than one day as the performance of this product over a longer period may deviate from and be uncorrelated to the leveraged performance of the Index over the period.
04) The Product is designed to be used for short term trading or hedging purposes, and is not intended for long term investment.
05) The Product only targets sophisticated trading-oriented investors who understand the potential consequences of seeking Daily leveraged results and the associated risks and constantly monitor the performance of their holdings on a Daily basis.
06) Daily rebalancing of the Product’s holdings causes a higher level of portfolio transactions than compared to the conventional exchange traded funds. High levels of transactions increase brokerage and other transaction costs.
07) You should not make any investment decision solely based on the information on this material alone. Please read the relevant offering documents for details including the risk factors before making any investment decisions. Investment involves risk. Past performance is not indicative of future performance. This document has not been reviewed by the Securities and Futures Commission of Hong Kong.

E Fund Unit Trust Fund - E Fund US Dollar Money Market Fund
01) Investment in the E Fund Unit Trust Fund - E Fund US Dollar Money Market 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 purchase of a Unit in the Sub-Fund is not the same as placing funds on deposit with a bank or deposit-taking company. The Sub-Fund does not guarantee principal and the Manager has no obligation to redeem the Units at the offer value. The Sub-Fund does not have a constant Net Asset Value. The Sub-Fund is not subject to the supervision of the Hong Kong Monetary Authority.
03) The Sub-Fund invests primarily in short-term deposits and debt securities.  The Sub-Fund seeks to achieve a return in US Dollars in line with prevailing money market rates, with primary considerations of both capital security and liquidity.  There can be no assurance that the Sub-Fund will achieve its investment objective.
04) The Sub-Fund may be subject to a) Investment risk, b) Risks associated with debt securities (including Short-term debt instruments risk, Credit/counterparty risk, Interest rate risk, Sovereign debt risk, Credit rating risk and downgrading risk and Valuation risk), c) Risks associated with bank deposits, d) Risks relating to repurchase agreements, e) Concentration risk, f) Hedging / derivative risk, g) Currency risk, h) RMB currency risk and RMB denominated classes risk and i) Hedged RMB denominated classes risk.
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) The Manager currently intends to make dividend distribution once per year in respect of the distribution classes; actual dividend payout will be subject to the Manager’s discretion. Dividend rate is not indicative of fund performance. A positive dividend yield does not imply a positive return. Past dividend rate is not indicative of future dividend rate. 
07) 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. 

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