Objective

The Sub-Fund seeks to achieve investment return through capital appreciation and income generation. There can be no assurance that the Sub-Fund will achieve its investment objective.

Strategy

Investment Strategy
The Sub-Fund is a feeder fund that seeks to achieve its investment objective by investing 90% or more of its total NAV in the E Fund (HK) Global Quality Growth Fund (the “Master Fund”), a sub-fund of E Fund SICAV (the “Company”) constituted as an open-ended investment fund in the form of a Luxembourg société d’Investissement à capital variable. It is a UCITS fund and is domiciled in Luxembourg and its home regulator is the Commission de Surveillance du Secteur Financier. The Master Fund is authorised by the SFC. The SFC authorisation is not a recommendation or endorsement of the Master Fund nor does it guarantee the commercial merits of the Master Fund or its performance. It does not mean the Master Fund is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.

Other Investments
The Sub-Fund may also invest up to 10% of its NAV on an aggregate and ancillary basis in (i) equity securities that are neither listed, quoted nor dealt in on a stock exchange, which are pre-initial public offering investments or cornerstone investments; and (ii) money market instruments, SFC authorised money market funds, cash and cash equivalents for cash management purposes. The Sub-Fund may enter into financial derivative instruments for hedging purposes only.
The Sub-Fund currently has no intention to:
(i) invest in any structured deposits, structured products or over-the-counter securities,
(ii) take any short positions,
(iii) enter into any securities lending, sale and repurchase or reverse-repurchase transactions or other similar over-the-counter transactions, or
(iv) invest in any collateralised and/or securitised securities (including asset backed commercial papers and mortgage backed securities).
If any of these changes in the future, prior approval of the SFC will be sought (if required) and not less than one month’s notice will be provided to Unitholders before the Sub-Fund enters into any such transaction.

Master Fund
The Master Fund seeks to achieve investment return through capital appreciation and income generation by investing primarily in equity securities and equity-related securities issued by issuers worldwide. The Company has appointed FundSight S.A. (the “Management Company”) as the management company and the Manager as its investment manager of the Master Fund.
The Master Fund will invest primarily (at least 70% of its net assets) in equity securities (including, but not limited to, common shares and preference shares) and equity-related securities (including, but not limited to, eligible exchange traded funds (the “ETFs”) provided that the underlying assets of these ETFs are eligible investments for the Master Fund) listed worldwide.
As part of its global strategy, the Master Fund may have an allocation to PRC companies through investments in China A-Shares listed on the Shanghai Stock Exchange (the “SSE”) and the Shenzhen Stock Exchange (the “SZSE”), which the Master Fund will access using Stock Connect, and China H-Shares denominated in HKD and traded in Hong Kong.
The Master Fund’s investments will not be subject to any geographic, industry, sector or market capitalisation restrictions.
The Master Fund may invest on an ancillary basis (up to 30% of its net assets) in investment grade fixed income securities, either directly or indirectly through the ETFs, such as corporate and government bonds. In case of a downgrade of a security to below investment grade or to distressed or default (rated CCC+ (or equivalent by Standard & Poor’s, Moody’s or Fitch or an equivalent rating from an internationally recognised rating agency) or below), the Manager may (i) sell a part or the entire amount of security held or (ii) terminate the transaction entered into, at its discretion based on an assessment implementing a risk versus reward compromise. The Manager will assess the probability of additional losses/profits and the salvage potential of the security’s value taking into account, among other things, market liquidity, term of maturity, interest rates, creditworthiness of issuer and quality of collaterals. In any event, the Master Fund will not invest more than 10% of its total assets in non-investment grade securities or distressed or default securities.
The Master Fund will not invest in unrated fixed income securities or in securitized instruments such as collateralized loan obligations (CLOs), asset-backed securities (ABS), and mortgage-backed securities (MBS). Except for investments in ETFs as above, investments in Units or shares of other collective investment schemes which are non-eligible scheme and not authorised by the SFC, including eligible Real Estate Investment Trusts (REITs), shall not in aggregate exceed 10% of the net assets of the Master Fund. Such collective investment schemes may be managed by the Management Company, the Manager, or their connected persons.
The Master Fund may also invest in financial derivative instruments (including but not limited to futures, swaps and forwards) for hedging purposes in order to manage the Master Fund’s exposure to interest rate, credit and currency fluctuations. The Master Fund may also enter into China A-Shares index futures traded outside of the PRC for hedging purposes.
The Master Fund may hold (i) ancillary liquid assets (i.e., bank deposits at sight, such as cash held in current accounts with a bank accessible at any time) up to 20% of its net assets; and (ii) cash equivalent (i.e., bank deposits excluding bank deposits at sight, Money Market Instruments (as defined in the Prospectus), or money market funds) up to 30% of its net assets. On a temporary basis, for a period of time strictly necessary, and if justified by exceptionally unfavorable market conditions, the Master Fund may hold ancillary liquid assets up to 100% of its net assets. Please refer to the Prospectus and relevant Supplement for details of the Master Fund’s holding in ancillary liquid assets and cash equivalent.
The Master Fund will not enter into (i) repurchase or reverse repurchase agreements, (ii) securities lending and securities borrowings, and (iii) total return swaps. Should the Master Fund use any of these techniques, prior approval of the SFC (if required) will be sought and not less than one month’s notice will be provided to Unitholders before the Master Fund enters into any such transaction.
The Master Fund is actively managed without any reference to a benchmark.