Objective

The Sub-Fund seeks to achieve long-term capital growth through a dynamic growth strategy by investing primarily in global equity securities and equity-related securities issued by companies that demonstrate strong growth potential across various sectors, regions and market capitalisations.

Investment Strategy

To achieve this investment objective, the Sub-Fund will invest primarily (at least 70% of its net assets) in equity securities (including, but not limited to, common shares, preference shares, American depositary receipts ("ADRs") and global depositary receipts (“GDRs”)) and equity-related securities (including, but not limited to, eligible exchange traded funds (the ETFs) provided that the primary underlying assets of these ETFs are eligible investments for this Sub-Fund) listed worldwide.
The Sub-Fund adopts a dynamic growth investment strategy, actively reallocating capital to those global equity securities and equity-related securities that exhibit the strong growth potential across sectors, regions and market capitalisations as market conditions evolve. This flexible approach allows the Sub-Fund to adjust its portfolio composition over time in order to optimise growth opportunities while managing risk. In actively managing the fund, the Manager considers growth and valuation metrics, company financials, return on capital, cash flows and other measures, as well as company management, industry, economic conditions, and other factors.
The Sub-Fund does not have any geographical restrictions and may have exposure to both developed and emerging markets. The allocation of the Sub-Fund’s portfolio between countries and regions may vary according to Manager’s discretion, and as a result, the Sub-Fund’s portfolio may be concentrated in certain country(ies) or region(s) at times except that the Sub-Fund’s allocation to PRC companies may not exceed 69% of its net assets with an expected level of approximately 40% of the Sub-Fund’s net assets. Such investments in the PRC may be (i) China A-Shares listed on the Shanghai Stock Exchange (“SSE”) and the Shenzhen Stock Exchange (“SZSE”) which the Sub-Fund will access using Stock Connect or via the QFI status of the Investment Manager, (ii) China B-Shares listed and traded in USD on the SSE and HKD on the SZSE, (iii) China H-Shares denominated in HKD and traded in Hong Kong and (iv) companies that are listed and traded in the United States (including but not limited to ADRs) or other securities markets, and are either incorporated in mainland China or whose operations are focused mainly in, or which derive a significant amount of revenue from mainland China.
The Sub-Fund will invest no more than 50% of its net assets in ADRs and GDRs.
In addition to the foregoing, the Sub-Fund’s investments will not be subject to any industry, sector or market capitalisation restrictions.
The Sub-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 distressed or default (rated CCC+ (or equivalent by Standard & Poor’s, Moody’s or Fitch or an equivalent rating from an internationally recognized rating agency) or below), the Investment Manager may (i) sell a part or the entire amount of security held or (ii) terminate the transaction entered into, at its discretion. The decision will be based on an assessment implementing a risk versus reward compromise, taking into account, among other things, market liquidity, term of maturity, interest rates, creditworthiness of issuer and quality of collaterals. The Investment Manager will sell a security or terminate a transaction when the probability of additional losses is considered sufficiently strong or if the possibility of salvaging some of the value of the security is considered weak. To the contrary, the Investment Manager will keep the security in portfolio or remain in the transaction when the possibility and attractiveness of salvaging parts of the value of the security is considered strong. In any event, the Sub-Fund will not invest more than 10% of its total assets in non-investment grade securities or distressed or default securities.
The Sub-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).
The Sub-Fund will not invest in financial derivatives instruments.
The Sub-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 Sub-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 Sub-Fund’s holding in ancillary liquid assets and cash equivalent.
The Sub-Fund will not enter into (i) repurchase or reverse repurchase agreements, (ii) securities lending and securities borrowings, and (iii) total return swaps. Should the Sub-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 Shareholders before the Sub-Fund enters into any such transaction.
The Sub-Fund targets to generate a return higher than the performance benchmark, which is MSCI ACWI (the "Benchmark Index"). The Benchmark Index captures large and mid-cap representation across 23 developed markets and 24 emerging markets countries. The Sub-Fund uses the Benchmark Index for performance comparison purposes only. The Sub-Fund is actively managed by the Investment Manager with complete discretion with respect to portfolio allocation and overall level of exposure to the market. The Investment Manager is not in any way constrained by the Benchmark Index in its portfolio positioning. The deviation from the Benchmark Index may be complete or significant.