| Currency Risk: Assets of a Sub-Fund may be denominated in a currency other than the Base currency of the Sub-Fund. Changes in the exchange rate between the Base currency and the currency of the asset may affect the value of the Sub-Fund’s assets as expressed in the Base currency. Adverse fluctuations in currency exchange rates can result in a decrease in return and in a loss of capital. Derivative Risk: The use of FDI involves certain special risks in relation to market volatility, liquidity of the FDI and the credit of the counterparty, and the value of the FDI may not necessarily correlate perfectly with the underlying investments. While some strategies involving FDI can reduce the risk of loss, they can also reduce the opportunity for gain or even result in losses to the Sub-Fund. Over-the-counter (“OTC”) Market Risk: Investment in OTC markets is speculative and are relatively illiquid and hence is subject to high volatility. OTC investment’s valuation may be difficult to obtain as reliable information of the issuers and the risks associated to the issuers’ business is not publicly available. OTC derivatives have the risk of incorrectly valuing or pricing and they may not fully correlate with the underlying assets. Investment in OTC markets carries the risk that a counterparty may default on its obligations. Performance Fee Risk: The method of calculating performance fee may give rise to the situation that a shareholder redeeming shares may still incur performance fee in respect of the shares, even though a loss in investment capital has been suffered by the redeeming shareholder. Market Risk: The value of the investments in the Sub-Fund may go up or down due to changing economic, political, regulatory, social development or market conditions that impact the share price of the companies that the Sub-Fund invests in. Liquidity Risk: In certain market conditions, investments held by the Sub-Fund may not be as liquid as they would be in normal circumstances. A reasonable price may be harder to attain in such conditions and there is a risk that the price at which the investment is valued may not be realisable in the event of sale. The Sub-Fund may therefore be unable to readily sell such investment. Property Securities Related Risk: There are special risks associated with investment in securities of companies engaged in property markets. These include the cyclical nature of property values, increases in property taxes, changes in zoning laws, regulatory limits on rents, environmental risks, depreciation in the value of buildings over time, and increases in interest rates. Hedging Risk: The use of hedging instruments involves certain special risks including dependence on the Investment Manager’s ability to accurately predict price movements of derivative instruments and the related investments being hedged, imperfect correlation between the hedging instruments and the investment assets being hedged. Whilst such techniques can improve the return of the Sub-Fund, their use also increases the costs and the risk of losses to the Sub-Fund. Sub-Fund Termination Risk: In the event of early termination of the Sub-Fund, the Sub-Fund would have to distribute to the shareholders their pro-rata interest in the assets of the Sub-Fund. It is possible that at the time of such sale or distribution, certain investments held by the Sub-Fund may be worth less than the initial cost of such investments, resulting in a substantial loss to the shareholders. Further, any administrative expenses with regard to the shares that had not yet been fully amortised would be debited against the Sub-Fund’s capital at that time. Risk of Early Termination of FDI transactions: The counter-parties of the FDI transactions may adjust the terms and conditions of the financial instrument to account for certain adjustments or events (e.g. default under specified entities, default under specified transactions, cross default, credit event, reduction in credit rating) in relation to the underlying assets or pre-maturely terminate the transaction following any market disruption events (e.g. trading disruption, exchange disruption, early closing, change in law). The Net Asset Value (“NAV”) of the Sub-Fund may be adversely affected due to these early termination events or adjustments. |