BOCHK All Weather
HKD Money Market Fund

Investment in funds/sub-funds may involve risks and may not be suitable for all investors. Past performance is not indicative of future results. Investors should read carefully the relevant fund documents for details including but not limited to the risk factors before making any investment decisions. Printed copies of the fund documents or other information of the funds/sub-funds are available from the distributors of the respective funds/sub-funds and BOCHK Asset Management Limited. The above information does not constitute any offer or recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to the investors' needs.

Market risk

• The Sub-Fund’s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Sub-Fund may suffer losses. There is no guarantee of the repayment of principal or dividend or distribution payments.

Risks relating to money market instruments/debt securities

• Short-term instruments risk: As the Sub-Fund invests significantly in short-term instruments with short maturities, it means the turnover rates of the Sub-Fund’s investments may be relatively high and the transaction costs incurred as a result of the purchase or sale of short-term instruments may also increase which in turn may have a negative impact on the Net Asset Value of the Sub-Fund.
• Credit/counterparty risk: Investment in debt securities or money market instruments is subject to the credit/default risk of the issuers and guarantors (if applicable) of the debt securities or money market instruments that the Sub-Fund may invest in, which may be unable or unwilling to make timely payments on principal and/or interest.
• Interest rate risk: Investment in the Sub-Fund is subject to interest rate risk. Generally, the prices of debt securities rise when interest rates fall, vice versa.
• Volatility and liquidity risk: The debt securities or money market instruments in certain countries/regions that the Sub-Fund invests in may be subject to higher volatility and lower liquidity compared to more developed markets. The price of debt securities or money market instruments traded in such markets may be subject to fluctuations. The bid and offer spreads of the price of such debt securities or money market instruments may be large and the Sub-Fund may incur significant trading costs.
• Downgrading risk: Investment/recognized grade instruments or their issuers and/or their guarantors (if applicable) may be subject to the risk of being downgraded. In the event of downgrading, the value of the Sub-Fund may be adversely affected. The Manager may or may not be able to dispose of the instruments which (or the issuers or the guarantors of which) are being downgraded.
• Sovereign debt risk: The Sub-Fund’s investment in debt securities issued or guaranteed by governments may be exposed to political, social and economic risks. In adverse situations, the sovereign issuers may not be able or willing to repay the principal and/or interest when due or may request the Sub-Fund to participate in restructuring such debts. The Sub-Fund may suffer significant losses when there is a default of sovereign debt issuers.
• Valuation risk: Valuation of the Sub-Fund’s investments may involve uncertainties and judgmental determinations. If such valuations should prove to be incorrect, this may affect the Net Asset Value of the Sub-Fund.
• Risk related to credit ratings: Credit ratings assigned by rating agencies are subject to limitations and do not guarantee the creditworthiness of the instrument, issuer and/or guarantor (as applicable) at all times.
• Credit rating agency risk: The credit appraisal system in Mainland China and the rating methodologies employed in Mainland China may be different from those employed in other markets. Credit ratings given by rating agencies in Mainland China may therefore not be directly comparable with those given by other international rating agencies.

Risks associated with bank deposits

• Bank deposits are subject to the credit risks of the relevant financial institutions. The Sub-Fund may also place deposits in non-resident accounts and offshore accounts with banks in Mainland China. The Sub-Fund’s deposit may not be protected by any deposit protection schemes, or the value of the protection under the deposit protection schemes may not cover the full amount deposited by the Sub-Fund. Therefore, if the relevant financial institution defaults, the Sub-Fund may suffer losses as a result.

Risks associated with the Sub-Fund’s restrictions on redemptions

• Redemption of Units may be subject to a restriction of (i) HK$10,000 (or equivalent in the class currency) for a single individual investor of Class S Units on a Dealing Day under extreme market conditions and/or (ii) 10% of the total number of Units of the Sub-Fund in issue on a Dealing Day (in respect of all Unit Classes). Therefore, such investors may not be able to redeem all holdings in the Sub-Fund on a single Dealing Day. Where this redemption restriction is imposed continuously, the period for an investor to fully redeem his holdings may be prolonged, and the investor will be subject to liquidity risks.

Concentration risk

• The Sub-Fund will invest significantly in Hong Kong Dollar-denominated, or denominated in other currencies and hedged to Hong Kong Dollars, and settled short-term deposits, high quality money market instruments (including high quality and short term debt securities) and/or money market funds. Investments in any country or region (e.g. China (onshore and offshore markets), etc.) may also be concentrated from time to time depending on the Manager’s assessment of the market conditions at different times. The value of the Sub-Fund may be more volatile than that of a fund having a more diversified portfolio of assets. The value of the Sub-Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the relevant markets in any specific country or region.

Currency risk

• The Sub-Fund’s investments may be quoted in currencies other than the Sub-Fund’s base currency (Hong Kong Dollar). The Sub-Fund’s value may fluctuate favourably or unfavourably in response to fluctuations in exchanges rates between such currencies and the Hong Kong Dollar and by changes in exchange rate controls.

Risks relating to financial derivative instruments and hedging

• Risks associated with financial derivative instruments include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The leverage element/component of a financial derivative instrument can result in a loss significantly greater than the amount invested in the financial derivative instrument by the Sub-Fund. Exposure to financial derivative instruments may lead to a high risk of significant loss by the Sub-Fund.
• There can be no assurance that any currency hedging strategy will fully and effectively eliminate the currency exposure of the Sub-Fund. Hedging strategies may preclude investors from benefiting from an increase in the value of the Sub-Fund’s base currency.