| Investment risks:The Fund is an investment fund. The Fund’s investment portfolio may fall in value due to any of the risk factors below and therefore your investment in the Fund may suffer losses.Credit risks:The Fund may be exposed to the credit/default risk of bonds that it invests in. In the event of bankruptcy or default of an issuer, the Fund may experience losses and incur costs.The actual or perceived downgrading of a rated debt security could decrease its value and liquidity,and may have an adverse impact on the Fund, however, the Fund may continue to hold it to avoid a distressed sale.Emerging market risks:Investment in emerging markets may be subject to a higher than average volatility than more developed markets due to greater political, tax, economic, social, and foreign exchange risks.The size and trading volume of securities markets in emerging markets may be substantially smaller than developed markets. This may subject the Fund to higher liquidity and volatility risks.Custody and registration of assets in emerging markets may be less reliable than in developed markets, which may subject the Fund to higher settlement risk.The Fund may be subject to higher regulatory risks due to low level of regulation, enforcement of regulations and monitoring of investors’ activities in emerging markets.Interest rate risks:An increase in interest rates may adversely affect the value of the bonds held by the Fund.Non-investment grade risks:Investment in non-investment grade bonds, including sovereign debts, may subject the Fund to higher credit/default risks. If the issuer of the bond defaults, or if the non-investment grade bonds fall in value, investors may suffer significant losses.Non-investment grade bonds tend to be more volatile, and the market for these bonds is generally less liquid, than investment grade bonds. Adverse events or market conditions may have a larger negative impact on the prices of non-investment grade bonds.Sovereign debt risks:Investment in bonds issued or guaranteed by governments or authorities may involve political,economic, default, or other risks, which may in turn have an adverse impact on the Fund. Due to these factors, the sovereign issuers may not be able or willing to repay the principal and/or interest when due.Holders of defaulting sovereign debt may be requested to participate in the restructuring of such debt. In addition, there may be limited legal recourses available against the sovereign issuer in case of failure of or delay in repayment.The Fund may have exposure to Eurozone sovereign debts. In light of the fiscal conditions of certain European countries, the Fund may be subject to a number of increased risks arising from a potential crisis in the Eurozone (such as volatility, liquidity, price and currency risks). The performance of the Fund could deteriorate should there be any adverse events in the Eurozone (e.g. downgrade of sovereign credit ratings, default of one or more European countries, or even break-up of the Eurozone).The Fund may have greater exposure (up to 20% per country) of its assets in debt securities issued by and/or guaranteed by non-investment grade countries i.e. Indonesia, the Philippines, Turkey, Ukraine and Venezuela, which may result in higher credit/default risk and concentration risk.Capital growth risks:Risks associated with income-generating investment strategy.The Fund pursues an investment strategy in order to generate income which may reduce the potential for capital growth and future income of the Fund.Risks associated with fees and/or dividends paid out of capital.Distributing (S) Shares and (R) Shares pay dividends gross of expenses, meaning all fees are deducted from capital; and may pay dividends out of capital. The effect of fees and/or dividends being paid out of capital gains or initially subscribed capital will result in more income being available for distribution,however, the capital that the Fund has available for investment in the future and capital growth may be reduced.Fees and/or dividends paid out of capital may amount to a partial return or withdrawal of an investor’s original investment or from any capital gains attributable to that original investment.Currency risks:The Fund may invest in assets denominated in a currency other than the base currency of the Fund.Changes in exchange rates between such currency and the base currency may adversely affect the value of the Fund’s assets.Derivatives risks:In an adverse situation, if the use of derivatives for hedging and efficient portfolio management becomes ineffective, the Fund may suffer significant losses.Distressed securities risks:Investment in securities issued by a company that is in financial difficulty or in default involves significant risk. There is no guarantee that any exchange offer or reorganisation will be successfully completed.Foreign investments restrictions risks:Some countries prohibit or restrict investment, or the repatriation of income, capital or the proceeds from sale of securities. The Fund may incur higher costs investing in these countries. Such restrictions may delay the investment or repatriation of capital of the Fund. |