Objective

The investment objective of the Sub-Fund is to achieve long-term capital growth through primarily investing in equity and equity-related securities listed on major global stock markets.
There can be no assurance that the Sub-Fund will achieve its investment objective.

Strategy

Primary investments
The Sub-Fund seeks to achieve its investment objective by investing primarily (i.e. at least 70% of its net asset value (“NAV”)) in equity and equity-related securities listed on major global stock markets, including but not limited to the United States, Canada, the United Kingdom, Germany, France, Switzerland, Japan, Mainland China, Hong Kong, India, South Korea, Taiwan, Brazil and Australia.
There is no specific restriction on the Sub-Fund’s investment in equities in terms of geography, industry, sector or market capitalisation, and the Sub-Fund may invest up to 100% of its NAV in any market (including emerging markets).
The Sub-Fund’s investments are based on the professional judgment of the Manager, whose reasons for investment may include a favourable outlook on the relevant issuers and an expected change in value of such investments due to change in market circumstances.
Equity and equity-related securities in which the Sub-Fund may invest may include, but are not limited to, common stocks, preferred stocks, American depository receipts (“ADRs”), global depository receipts (“GDRs”) and exchange traded funds. The Sub-Fund may invest in equity or equity-related securities of companies of any capitalisation (including small- and mid-capitalisation companies). Investments in exchange traded funds will be considered and treated as listed securities for the purposes of and subject to the requirements in 7.1, 7.1A and 7.2 of the Code on Unit Trusts and Mutual Funds (the “Code”).
The Sub-Fund may invest up to 100% of its NAV in A-Shares (which may include A-Shares listed on the ChiNext market and/or the Science and Technology Innovation Board (the “STAR Board”)) directly through the Stock Connect (i.e. the mutual stock market access between Mainland China and Hong Kong, comprising the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect) or QFI. The Sub-Fund’s aggregate investments via QFI will be less than 70% of its NAV.
Ancillary investments
The Sub-Fund may invest up to 30% of its NAV in global debt securities such as fixed and floating rate debt securities issued by issued by governments, quasi government, local authorities, international organisations, financial institutions, and/or corporate entities in any sector which, or (if the security does not have a credit rating) the issuers of which, are of investment grade (i.e. having a credit rating of BBB- or higher by Standard & Poor’s and/or Fitch, or Baa3 or higher by Moody’s, or an equivalent rating by any other internationally recognised credit rating agency, or having a credit rating of AA+ or higher by a Mainland China credit rating agency, such as China Chengxin International Credit Rating Co., Ltd. or China Lianhe Credit Rating Co., Ltd.). For split credit ratings, the highest rating shall apply. The Sub-Fund does not impose any limitation on the maturity of the debt securities. The Sub-Fund may also invest up to 10% of its NAV in non-investment grade debt securities (including distressed or default securities). For the avoidance of doubt, the Sub-Fund’s total investments in global debt securities (including onshore China debt securities) will not exceed 30% of NAV, and the Sub-Fund will invest no more than 10% of its NAV in debt securities that are issued and/or guaranteed by a single sovereign issuer. The Sub-Fund may invest in aggregate less than 30% of its NAV in debt securities which are issued in the onshore market of Mainland China via the China Interbank Bond Market (CIBM Direct), the initiative for mutual bond market access between Hong Kong and Chinese Mainland (Northbound Bond Connect) and/or other means as may be permitted by the relevant regulations from time to time.
The Sub-Fund may invest up to 30% of its NAV in other collective investment schemes, which may be managed by the Manager, its Connected Persons or a third party, which may be collective investment schemes that are authorised by the SFC or are eligible schemes as defined under the Code and or non-eligible schemes as defined under the Code and are not authorised by the SFC, provided that the Sub-Fund’s investments in such non-eligible schemes may only be up to 10% of its NAV.
The Sub-Fund may also utilise financial derivative instruments (including but not limited to currency futures and forwards) for hedging or non-hedging (i.e. investment) purposes to the extent permitted by Chapter 7 of the Code and subject to the net derivative exposure of the Sub-Fund as set out herein.
The Sub-Fund may hold up to 30% of its NAV in cash or cash equivalents (including money market funds), to the extent not invested in accordance with the above, for cash management purpose, except that under exception circumstances (e.g. market crash or major crisis), the Sub-Fund may temporarily invest up to 100% of its NAV in liquid assets such as bank deposits, certificates of deposit, commercial paper and treasury bills for cash flow management. Investments in money market funds will be subject to the restrictions above on collective investment schemes.
The Sub-Fund may engage in short sales in accordance with the Code and may use assets of the Sub-Fund as collateral in respect of such short sales. No short sale may be made by the Sub-Fund which will result in the Sub-Fund’s liability to deliver securities exceeding 10% of its NAV. For the avoidance of doubt, the Sub-Fund will not carry out any naked or uncovered short sale.
The Sub-Fund will not invest in collateralised and/or securitised securities. The Sub-Fund will not conduct securities lending transactions, sale and repurchase transactions or reverse repurchase transactions.
The investment strategy of the Sub-Fund is subject to the investment and borrowing restrictions set out in the Explanatory Memorandum.