BEA Union Investment Asian Bond and Currency Fund

• BEA Union Investment Asian Bond and Currency Fund (the “Fund”) seeks regular interest income, capital gains and currency appreciation from an actively managed portfolio primarily investing in debt securities denominated in Asian or other currencies and primarily issued by Asian government or corporate entities.
• The Fund is subject to general investment risk, Asian market concentration risk, emerging market risk and currency risk.
• The Fund invests in debts securities and is subject to risks in interest rates, credit/counterparty, downgrading, below investment grade and non-rated securities, volatility and liquidity, valuation and sovereign debt and credit rating which may adversely affect the price of the debt securities.
• The manager may at its discretion make distributions from income and/or capital in respect of the distributing classes of the Fund. Distributions paid out of capital amount to a return or withdrawal of part of the unitholder’s original investment or from any capital gains attributable to that original investment. Such distribution may result in an immediate reduction of the net asset value per unit.
• In terms of currency hedged class units, adverse exchange rate fluctuations between the base currency of the Fund and the class currency of the currency hedged class units may result in a decrease in return and/or loss of capital for unitholders. Over-hedged or under-hedged positions may arise and there can be no assurance that the currency hedged class units will be hedged at all times or that the manager will be successful in employing the hedge.
• RMB is currently not a freely convertible currency as it is subject to exchange controls and restrictions. Non-RMB based (e.g. Hong Kong) investors are exposed to foreign exchange risk and there is no guarantee that the value of RMB against the investors’ base currencies (for example HKD) will not depreciate. Any depreciation of the RMB could adversely affect the value of investors’ investments.
• The Fund may use financial derivative instruments for hedging and investment purposes which may not achieve the intended purpose and may result in significant losses. Risks associated with derivative instruments include counterparty/ credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk.
• Investors should not make an investment decision based solely on this material.

Umbrella Funds managed by BEA Union Investment Management Limited

1. “BEA Union Investment Series” is an umbrella unit trust established under the laws of Hong Kong.
2. “BEA Union Investment Capital Growth Fund” is an umbrella unit trust (also an approved pooled investment fund) established under the laws of Hong Kong.
3. “BU Fund Series OFC” is a public open-ended fund company regulated under the laws of Hong Kong (registration number: OF4) with variable capital and limited liability and segregated liability between sub-funds.^*
4. “BU Investment Series OFC” is a public open-ended fund company regulated under the laws of Hong Kong (registration number: OF11) with variable capital and limited liability and segregated liability between sub-funds.^*



*Registered with the Securities & Futures Commission under the Securities & Futures Ordinance of Hong Kong with registered office at 5/F, The Bank of East Asia Building, 10 Des Voeux Road Central, Hong Kong

Information Applicable to the Umbrella Funds Managed by BEA Union Investment Management Limited

• Each umbrella fund has within it different sub-funds investing in equities and/or bonds, each with a different risk profile.
• A sub-fund’s investment portfolio may fall in value, and therefore investor’s investment in the sub-fund may suffer losses. There is no guarantee of the repayment of principal.
• A sub-fund may be subject to general investment and market risks, custody risks, settlement risks, equity investment risks, regulatory risk of equity markets, volatility risk, risk associated with small-capitalisation/mid-capitalisation companies; and risk of investing in IPO.
• A sub-fund that invests in debt securities is subject to interest rate, credit/ counterparty, downgrading, below investment grade & non-rated securities risk, volatility and liquidity, sovereign debt, valuation and credit rating risks.
• A sub-fund may be subject to risks associated with debt instruments with loss-absorption features, dim-sum bond market risks, risks associated with China Interbank Bond Market and Bond Connect, risks of investing in urban investment bonds.
• A sub-fund that invests in China A Shares (via Qualified Investors “QI”, Stock Connects or other permissible schemes available from time to time) may be subject to QI risk, risks associated with Stock Connects, and risks associated with the ChiNext Market and Science and Technology Innovation Board.
• Sub-fund that invests in certain Mainland China securities may be subject to withholding and other taxes imposed in Mainland China, and thus expose to Mainland China tax risk.
• A sub-fund may be subject to concentration risk /China and Asia market risk, emerging markets risk, asset allocation risk, risks of investing in other funds, currency risk, currency hedging risk, RMB currency and conversion risks.
• A sub-fund may use derivatives instruments for hedging and/or investment purposes. The leverage element of a derivative instrument or the ineffectiveness in achieving hedging can result in a significant loss.
• The Manager or Directors (as the case maybe) may at its discretion make distribution from income and/or capital in respect of the distributing classes of a sub-fund. Distributions paid out of the capital amount to a return or withdrawal of part of the investors’ original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction of the net asset value per unit (or share). “Net distributable income” means the net investment income (i.e. dividend income and interest income net of fees and expenses) attributable to the relevant distributing class and may also include net realised gains (if any) based on unaudited management accounts. However, “net distributable income” does not include net unrealised gains. Distribution is not guaranteed. Past distribution record is not an indicative of future distribution. A positive distribution yield does not imply a positive return.

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