Disclaimer



This website has been prepared by China Universal Asset Management (Hong Kong) Company Limited (¡°China Universal HK¡±) for informational purposes only. Fund(s) information contained in this website is not intended for use by persons located in or residing in jurisdiction that restrict the distribution of such information by China Universal HK. The information contained in this website does not constitute a distribution, an offer to buy or the solicitation of any offer to buy or sell any securities in any jurisdiction where such a distribution or offer would be illegal. Person assessing this website should inform themselves and observe any relevant restrictions. Information contained in this website has not been reviewed by the SFC.

None of the information contained in this website constitute an invitation or solicitation to invest in any shares or units of the Fund(s), nor does it constitute any investment advice or recommendation to acquire or dispose of any investment or to engage in any transactions. Before acting on any information in this website, you should consider whether any investment, security or strategy is suitable for your particular circumstance and, if necessary, seek independent professional advice.

Investment involves risks. The price of units or shares of the Fund(s) may go up as well as down. Past performance is not indicative of future results. The value of the Fund(s) can be extremely volatile and could go down substantially within a short period of time. It is possible that the entire value of your investment could be lost. Please read the Fund¡¯s Prospectus for details and risk factors of the Fund, particularly the risk of investment in China.

All information contained in this website is published to the best of the knowledge and belief of China Universal HK to be accurate at the time it was posted. However, no representation or warranty, expressed or implied is made by China Universal HK as to its accuracy or completeness of the information or data provided in this website. China Universal HK, its affiliates, directors, officers or employees accept no liability for any errors or omissions relating to information available in this website, and will not be liable for any damages or costs arising out of or in any way connected with (i) the use of the information provided in this website and (ii) any interruption or failure in system operation, delay in data transmission, computer virus or line or system failure.

All copyright, trade marks and similar rights in this website and the information contained herein are owned by or licensed to China Universal HK or its affiliate. Information in or any parts of this website cannot be reproduced, distributed or published.

You must read the following Important Notes and the Disclaimer before proceeding

IMPORTANT NOTES

This website has been prepared by China Universal Asset Management (Hong Kong) Company Limited ("China Universal (HK)") for information purposes only. The information contained in this website is not intended for use by persons located in or residing in jurisdiction that restrict the distribution of such information by China Universal (HK) and its parent companies, subsidiaries and/or associates (collectively the "China Universal Group"). The information contained in this website does not constitute a distribution, an offer to buy or the solicitation of any offer to buy or sell any securities in any jurisdiction where such a distribution or offer would be illegal. Person accessing this website should inform themselves and observe any relevant restrictions. Information contained in this website has not been reviewed by Securities and Futures Commission of Hong Kong ("SFC").

None of the information contained in this website constitute an invitation or solicitation to invest in any shares or units of the Fund, nor does it constitute any investment advice or recommendation to acquire or dispose of any investment or to engage in any transactions. Before acting on any information in this website, you should consider whether any investment, security or strategy is suitable for your particular circumstance and, if necessary, seek independent professional advice.

Investment involves risks. The price of units or shares of the Fund may go up as well as down. The Manager does not guarantee that the Fund is profitable or able to achieve minimum return. Past performance of the Fund does not represent its future performance and the performance of the other funds managed by the Manager is no guarantee of the performance of the Fund. The value of the Fund can be extremely volatile and could go down substantially within a short period of time. It is possible that the entire value of your investment could be lost. Before making any investment decisions, investors should carefully read the Fund¡¯s offering documents, including Explanatory Memorandum/Prospectus, Hong Kong Supplement (if applicable) and Product Key Facts Statement for details and risk factors of the Fund, particularly the risk of investment in emerging markets.

Important Risk Disclosure

CUAM RMB Bondplus Fund (the "Fund") uses a RMB QFII ("RQFII") quota of China Universal Asset Management (Hong Kong) Company Limited (the "Manager") to invest primarily in Renminbi-denominated fixed income instruments issued and settled within Mainland China.

1.Investment risk

•The Fund is an investment fund and the Fund¡¯s investments are acquired under the RQFII scheme. There is no guarantee of the repayment of principal.

•The instruments invested by the Fund may fall in value and therefore your investment in the Fund may suffer losses.

2.RMB currency risk

•RMB is currently not freely convertible and is subject to exchange controls and restrictions and investors may be adversely affected by movements of the exchange rates between RMB and other currencies.

•There is no guarantee that RMB will not depreciate. If you convert Hong Kong Dollar or any other currency into RMB so as to invest in the Fund and subsequently convert the RMB redemption proceeds back into Hong Kong Dollar or any other currency, you may suffer a loss if RMB depreciates against Hong Kong Dollar or other currency.

3.Risk relating to RMB-denominated fixed income instruments

Credit risk of issuers or counterparties

•The Fund is exposed to the credit/insolvency risk of issuers of RMB-denominated fixed income instruments that it may invest in.

•Certain RMB-denominated fixed income instruments that the Fund invests in are unsecured debt obligations and are not supported by any collateral. The Fund will be fully exposed to the credit/insolvency risk of its counterparties as an unsecured creditor.

Interest rates risk

•Investment in the Fund is subject to interest rate risk. Generally, the prices of fixed income instruments rise when interest rates fall, whilst their prices fall when interest rates rise. The Chinese government¡¯s macro-economic policies and controls will have significant influence over the capital markets in China. Changes in fiscal policies, such as interest rates policies, may have an adverse impact on the pricing of RMB-denominated fixed income instruments, and thus the return of the Fund.

Risk relating to credit rating

•The rating criteria and methodology used by Chinese local rating agencies may be different from those adopted by most of the established international credit rating agencies. Therefore, such rating system may not provide an equivalent standard for comparison with securities rated by international credit rating agencies.

Risk relating to lower rated or unrated bond

•Some of the RMB-denominated fixed income instruments may be lower rated or unrated. Lower rated / unrated securities would generally be considered to have a higher degree of counterparty risk, credit risk, volatility risk and liquidity risk than higher rated, lower yielding securities. The issuers of those securities are generally subject to higher credit or default risk. These in turn may have adverse impact on the Net Asset Value of the Fund and the Fund could suffer substantial loss.

Downgrading risk

•Investment grade securities may be subject to the risk of being downgraded to BB+ or below by PRC local rating agencies. If the Fund continues to hold such securities, it will be subject to additional risk of loss.

Valuation risk

•Valuation of the Fund¡¯s investments may involve uncertainties and judgmental determinations, and independent pricing information may not at all times be available. If such valuations should prove to be incorrect, the Net Asset Value of the Fund may be adversely affected. The value of fixed income instruments may be affected by changing market conditions or other significant market events affecting valuation. For example, in the event of downgrading of an issuer, the value of the relevant fixed income instruments may decline rapidly.

Liquidity risk

•The Mainland China bond market is at a developing stage and the trading volume may be lower than those of the more developed markets. The Fund may invest in fixed income instruments which are not listed. Even if the fixed income instruments are listed, the market for such instruments may be inactive. The Fund is therefore subject to liquidity risks and may suffer losses in trading such instruments. The bid and offer spreads of the price of such instruments may be large, so the Fund may incur significant trading and realisation costs and may suffer losses accordingly.

4.China market risk / single country investment risk

•China is considered as an emerging market and investing in China may subject the Fund to higher economic, political, social and regulatory risks. Investments in China may also be less liquid and more volatile.

5.RQFII risk

•The RQFII rules have only been recently announced and are novel in nature ¨C their application may depend on the interpretation of the Chinese authorities. Any changes to the relevant rules may have an adverse impact on investors¡¯ investment in the Fund.

•Repatriations by RQFIIs in respect of an open-ended RQFII fund (such as the Fund) conducted in RMB are not subject to any restrictions, lock-up periods or prior approval, although an authenticity and compliance review will be conducted by the RQFII Custodian on each time of repatriation and a monthly breakdown of remittances and repatriations will be submitted to SAFE by the RQFII Custodian. There is no assurance, however, that PRC rules and regulations will not change or that repatriation restrictions will not be imposed in the future. Any restrictions on repatriation of the invested capital and net profits may impact on the Fund¡¯s ability to meet redemption requests from the Unitholders.

•The Fund may not have exclusive use of the entire RQFII quota granted by SAFE to the RQFII (i.e. the Manager), as the RQFII may in itsdiscretion allocate RQFII quota which may otherwise be available to the Fund to other products. There can be no assurance that the RQFII can allocate sufficient RQFII quota to the Fund to meet all applications for subscription of Units in the Fund.

6.Mainland China tax risk

•There are risks and uncertainties associated with changes in the current PRC tax law, regulations and practice in respect of capital gains derived by RQFIIs on its investment in the PRC, which may have retrospective effect and may adversely affect the Fund. Having taken and considered independent professional tax advice regarding the Fund¡¯s eligibility for treaty relief in the Arrangement between the Mainland China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and acting in accordance with such advice, the Manager considers that the Fund should be regarded as a Hong Kong tax resident and should be able to enjoy a PRC withholding income tax (¡°WIT¡±) exemption on capital gains. Therefore, the Manager determines that no PRC WIT provision will be made for the account of the Fund in respect of any potential PRC tax liability on gross unrealized and realized capital gains derived from investments in PRC fixed income instruments. For investments in China A-Shares, no PRC WIT provision will be made on gross unrealized and realized capital gains derived from investments in China A-Shares except 10% tax provision will be made on realized gain on China A-Shares issued by PRC ¡°land rich companies¡± derived before 17 November 2014. ¡°Land rich companies¡± refers to PRC companies in which at least 50% of their assets are comprised, directly or indirectly, of immovable properties situated in the PRC.

•Pursuant to the Circular Caishui (2014) No.79, RQFII are temporarily exempt from PRC WIT on capital gains derived from investments in China A-Shares effective from 17 November 2014. Therefore, the Manager has determined, having taken and considered independent professional tax advice and acting in accordance with such advice, that no PRC WIT provision will be made on the gross realized and unrealized capital gains derived from investments in China A-Shares from 17 November 2014 onwards. However, the tax exemption granted under Circular Caishui (2014) No.79 is only temporary. It is possible that the applicable tax law, regulations and practice may be changed, that the PRC tax authorities may hold a different view as to the Fund¡¯s eligibility treaty relief of WIT on capital gains, that the assessment of ¡°land rich companies¡± by the Manager may be incorrect or that PRC tax authorities require the Fund to provide a Hong Kong Tax Resident Certificate (¡°HKTRC¡±) (the Fund has not currently obtained a HKTRC) and the Manager may not be able to obtain a HKTRC on behalf of the Fund. In such case, the Fund may have higher tax liabilities in the PRC than provided for. Any shortfall between the provision and actual tax liabilities, which will be deducted from the Fund¡¯s assets, will cause the Fund¡¯s Net Asset Value to be adversely affected. In this case, existing and subsequent investors will be disadvantaged as they will bear for a disproportionately higher amount of tax liabilities as compared to the liability at the time of investment in the Fund. On the other hand, the actual tax liabilities may be lower than the tax provision made. In that case, persons who have already redeemed their Units in the Fund before the actual tax liabilities are determined will not be entitled or have any right to claim any part of such overprovision.

7.Risk of investing in urban investment bonds

•Urban Investment Bonds are issued by LGFVs. Although local governments may be seen to be closely connected to urban investment bonds, such bonds are typically not guaranteed by local governments or the central government of the PRC. As such, local governments or the central government of the PRC are not obligated to support any LGFVs in default. In the event that the LGFVs default on payment of principal or interest of the urban investment bonds, the Fund could suffer substantial loss and the net asset value of the Fund could be adversely affected.

8.Risk of investing in asset backed securities (including asset backed commercial papers)

•Pursuant to the Circular Caishui (2014) No.79, RQFII are temporarily exempt from PRC WIT on capital gains derived from investments in China A-Shares effective from 17 November 2014. Therefore, the Manager has determined, having taken and considered independent professional tax advice and acting in accordance with such advice, that no PRC WIT provision will be made on the gross realized and unrealized capital gains derived from investments in China A-Shares from 17 November 2014 onwards. However, the tax exemption granted under Circular Caishui (2014) No.79 is only temporary. It is possible that the applicable tax law, regulations and practice may be changed, that the PRC tax authorities may hold a different view as to the Fund¡¯s eligibility treaty relief of WIT on capital gains, that the assessment of ¡°land rich companies¡± by the Manager may be incorrect or that PRC tax authorities require the Fund to provide a Hong Kong Tax Resident Certificate (¡°HKTRC¡±) (the Fund has not currently obtained a HKTRC) and the Manager may not be able to obtain a HKTRC on behalf of the Fund. In such case, the Fund may have higher tax liabilities in the PRC than provided for. Any shortfall between the provision and actual tax liabilities, which will be deducted from the Fund¡¯s assets, will cause the Fund¡¯s Net Asset Value to be adversely affected. In this case, existing and subsequent investors will be disadvantaged as they will bear for a disproportionately higher amount of tax liabilities as compared to the liability at the time of investment in the Fund. On the other hand, the actual tax liabilities may be lower than the tax provision made. In that case, persons who have already redeemed their Units in the Fund before the actual tax liabilities are determined will not be entitled or have any right to claim any part of such overprovision.

•Asset backed securities (including asset backed commercial papers) are subject to prepayment risk. The assets underlying asset backed securities (including asset backed commercial papers) may generally be prepaid at any time by the related borrowers. The prepayments may be used to prepay all or partial of the principal balance. As a result, the yield to maturity and market value of some of the asset backed securities (including asset backed commercial papers) are affected, to varying degrees, by the rate of prepayments of the underlying assets. Asset backed securities (including asset backed commercial papers) are also subject to credit risk and valuation risk. The Fund may therefore suffer substantial loss and the Net Asset Value of the Fund could be adversely affected.

All information contained in this website is published to the best of the knowledge and belief of China Universal Group to be accurate at the time it was posted. However, no representation or warranty, expressed or implied is made by China Universal Group as to its accuracy or completeness of the information or data provided in this website. China Universal Group, its directors, officers or employees accept no liability for any errors or omissions relating to information available in this website, and will not be liable for any damages or losses arising out of or in any way connected with (i) the use of the information provided in this website and (ii) any interruption or failure in system operation, delay in data transmission, computer virus or line or system failure. China Universal Group reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.

All copyright, trademarks and similar rights in this website and the information contained herein are owned by or licensed to China Universal Group. Unless prior written consent is obtained from China Universal Group, information in or any parts of this website cannot be reproduced, distributed or published by any institutions or individuals.

Before you continue, please read this important information carefully. By clicking the "AGREE" button, you consent to be bound by all the terms set out herein. If you do not agree with any of these terms, please click "DO NOT AGREE" button and leave this website.

You must read the following Important Notes and the Disclaimer before proceeding

IMPORTANT NOTES

This website has been prepared by China Universal Asset Management (Hong Kong) Company Limited ("China Universal (HK)") for information purposes only. The information contained in this website is not intended for use by persons located in or residing in jurisdiction that restrict the distribution of such information by China Universal (HK) and its parent companies, subsidiaries and/or associates (collectively the "China Universal Group"). The information contained in this website does not constitute a distribution, an offer to buy or the solicitation of any offer to buy or sell any securities in any jurisdiction where such a distribution or offer would be illegal. Person accessing this website should inform themselves and observe any relevant restrictions. Information contained in this website has not been reviewed by Securities and Futures Commission of Hong Kong ("SFC").

None of the information contained in this website constitute an invitation or solicitation to invest in any shares or units of the Fund, nor does it constitute any investment advice or recommendation to acquire or dispose of any investment or to engage in any transactions. Before acting on any information in this website, you should consider whether any investment, security or strategy is suitable for your particular circumstance and, if necessary, seek independent professional advice.

Investment involves risks. The price of units or shares of the Fund may go up as well as down. The Manager does not guarantee that the Fund is profitable or able to achieve minimum return. Past performance of the Fund does not represent its future performance and the performance of the other funds managed by the Manager is no guarantee of the performance of the Fund. The value of the Fund can be extremely volatile and could go down substantially within a short period of time. It is possible that the entire value of your investment could be lost. Before making any investment decisions, investors should carefully read the Fund¡¯s offering documents, including Explanatory Memorandum/Prospectus, Hong Kong Supplement (if applicable) and Product Key Facts Statement for details and risk factors of the Fund, particularly the risk of investment in emerging markets.

Important Risk Disclosure

CUAM China-Hong Kong Strategy Fund (the "Fund") seeks to achieve medium to long-term capital growth throughinvesting primarily in securities of companies which are established in Greater China or having theirincome, revenue, assets, economic activities, business or operations associated with Greater China.

1. Investment risk

•The instruments invested by the Fund may fall in value and therefore your investment in the Fund may suffer losses.

2.Concentration risk

•The investments of the Fund are concentrated in Greater China. The Fund is likely to be more volatile than a broad-based fund as they are more susceptible to fluctuations in value resulting from adverse conditions in Greater China.

3.China market risk

•China is considered as an emerging market and investing in China may subject the Fund to higher economic, political, foreign exchange and currency control, social and regulatory risks. Investments in China may also be less liquid and more volatile. The value of the Fund¡¯s investments may be affected by uncertainties such as international, political and economic developments or changes in government policies.

4.Risks associated with Stock Connect

•The Stock Connect is a programme novel in nature. The relevant regulations are untested and subject to change. The programme is subject to quota limitations which may restrict the Fund¡¯s ability to invest in China A-Shares through the programme on a timely basis and as a result, the Fund¡¯s ability to access the China A-Shares market (and hence to pursue its investment strategy) will be adversely affected. Where a suspension in the trading through the Stock Connect is effected, the Fund¡¯s ability to access the PRC market will be adversely affected. The PRC regulations impose certain restrictions on selling and buying. Hence, the Fund may not be able to dispose of holdings of China A-Shares in a timely manner. Also, a stock may be recalled from the scope of eligible stocks for trading via the Stock Connect. This may adversely affect the investment portfolio or strategies of the Fund, for example, when the Manager wishes to purchase a stock which is recalled from the scope of eligible stocks. Due to the differences in trading days, the Fund may be subject to a risk of price fluctuations in China A-Shares on a day that the PRC market is open for trading but the Hong Kong market is close.

•Trading in securities through the Stock Connect may be subject to clearing and settlement risk. If the PRC clearing house defaults on its obligation to deliver securities / make payment, the Fund may suffer delays in recovering its losses or may not be able to fully recover its losses. Further, the Fund¡¯s investments through the Stock Connect are not covered by the Hong Kong¡¯s Investor Compensation Fund or the China Securities Investor Protection Fund.

• The Stock Connect requires the development of new information technology systems on the part of the stock exchanges and exchange participants and may be subject to operational risk. If the relevant systems failed to function properly, trading in both Hong Kong and Shanghai markets through the programme could be disrupted. The Fund¡¯s ability to access the China shares market (and hence to pursue its investment strategy) will be adversely affected.

5. Mainland China tax risk

•After seeking independent professional tax advice, it is noted that there are uncertainties as to whether PRC withholding income tax (¡°WIT¡±) will be imposed on capital gains derived from trading of China B-Shares by the Fund. In practice, the PRC tax authorities have not enforced collection of WIT on capital gains derived by non-residents from trading of China B-Shares where both the purchase and sales of China B-Shares are conducted via stock exchange.

• The Manager currently has no intention to make provision in respect of the potential tax liability of the Fund on trading of China B-Shares, as the possibility of the imposition of such tax liability is considered remote. However, this approach may be changed if, in the opinion of the Manager, a provision is warranted.

• In light of Circular Caishui (2014) No.79 jointly promulgated by the Ministry of Finance (¡°MOF¡±), the State Administration of Taxation (¡°SAT¡±) and the China Securities Regulatory Commission of the PRC (¡°CSRC¡±) in relation to the taxation rule on QFII and RQFII with effect from 17 November 2014, the Manager will not make any WIT provision on the gross unrealised and realised capital gains derived by the Fund from investment in China A-Shares via RQFII. On 14 November 2014, the MOF, SAT and CSRC have also jointly issued Circular Caishui (2014) No. 81 which states that corporate income tax, individual income tax and business tax (¡°BT¡±) will be temporarily exempt on gains derived by foreign investors (including the Fund) on the trading of China A-Shares through the Stock Connect. In view of this, the Manager will not make any WIT or BT provision on the gross unrealised and realised capital gains derived by the Fund from investment in China A-Shares through the Stock Connect.

• Please note that the tax exemption granted under the above circulars for trading of China A-Shares through RQFII and the Stock Connect is temporary. It is possible that the applicable tax laws, regulations and practice may be changed and being applied retrospectively. In such cases, the Fund may have tax liabilities in the PRC that the Fund has not provided for, and the net asset value of the Fund may be adversely affected, as the Fund will ultimately have to bear the full amount of tax liabilities. In this case, the tax liabilities will only impact units in issue at the relevant time, and the then existing unitholders and subsequent unitholders will be disadvantaged as such unitholders will bear, through the Fund, a disproportionately higher amount of tax liabilities as compared to that borne at the time of investment in the Fund.

6.Liquidity risk

•China A-Shares and China B-Shares may be subject to trading bands which restrict increases and decreases in the trading price. If the trading price of any China A-Shares and China B-Shares has increased or decreased to the extent beyond the trading band limit during the day, trading in the China A-Shares and China B-Shares on the relevant stock exchange may be suspended. As a result, the liquidity of China A-Shares and China B-Shares may be adversely affected which in turn may affect the value of the Fund¡¯s investments.

7.Risks relating to debt securities

Interest rates risk

•Investment in the Fund is subject to interest rate risk. Generally, the prices of debt securities rise when interest rates fall, and vice versa.

Credit risk of issuers or counterparties

•The Fund is exposed to the credit/insolvency risk of issuers of the debt securities it invests in.Such issuers may be unable or unwilling to make timely payments on principal and/or interest.

Risks relating to credit rating

•Credit ratings assigned by a rating agency are not absolute standards of credit quality and do not evaluate market risks.

Downgrading risk

•Investment grade securities may be subject to the risk of being downgraded to below investment grade securities. If the Fund continues to hold such securities, it will be subject to additional risk of loss.

Liquidity risk

•Some debt securities the Fund invests in may be illiquid, and may be difficult or impossible to sell. This would affect the Fund¡¯s ability to acquire or dispose of such securities at their intrinsic value

Valuation risk

•Independent pricing information on debt securities may not be available at all times. Thus, valuation of the Fund¡¯s investments in debt securities may involve uncertainties and judgmental determinations. If such valuation should prove to be incorrect, the net asset value of the Fund may be adversely affected.

8.Risk of investing in other collective investment schemes

•Investment decisions of the underlying collective investment schemes are made at the level of such schemes. There can be no assurance that the investment objective and strategy of the underlying schemes will be successfully achieved. Furthermore, the liquidity of the underlying schemes may not be sufficient to meet redemption request by the Fund at all times.

•Investors should note that the Fund bears the fees payable to the Manager and its other service providers, as well as, indirectly, a proportionate share of the fees paid by the underlying schemes to their managers and the service providers of the underlying schemes.

•There may be potential conflicts of interest where the Fund invests in shares or units of a collective investment scheme managed by the Manager, its connected persons. In the event of such conflicts, the Manager will endeavour to ensure that such conflicts are resolved fairly.

9.Risk of using financial derivative instruments

•The use of financial derivative instruments may expose the Fund to risks including market volatility risk, credit risk, counterparty risk, liquidity risk, non-redeemable risk and issuer¡¯s defaults risk. In adverse situation, the use of financial derivative instruments for hedging purposes may become ineffective and the Fund may suffer significant losses.

10.RMB currency risk

•RMB is currently not freely convertible and is subject to exchange controls and restrictions imposed by the Mainland authorities. Investors may be adversely affected by movements of the exchange rates between RMB and other currencies.

11.RMB classes related risk

•The prices of unit in the RMB classes are denominated in RMB, but the Fund may have limited RMB-denominated underlying investments and its base currency is HKD. As such, even if the prices of underlying investments and/or value of the base currency rise or remain stable, investors may still incur losses if RMB appreciates against the currencies of the underlying investments and/or the base currency more than the increase in the value of the underlying investments and/or the base currency. Furthermore, if RMB appreciates against the currencies of the underlying investments and/or the base currency, and the value of the underlying investments decreased, the value of investors¡¯ investments in RMB classes may suffer additional losses.

•Investors investing in RMB classes must subscribe for Units and will normally receive redemption proceeds in RMB. Due to the exchange controls and restrictions applicable to RMB, the Fund may not be able to get sufficient amounts of RMB in a timely manner to meet redemption requests of RMB classes and/or pay dividends (if any) if all or a substantial portion of its underlying investments are non-RMB denominated. Therefore, even if the Fund aims to pay redemption proceeds and/or dividends to investors of RMB classes in RMB, investors may not receive RMB upon redemption of investments or receive dividend payments (if any) in RMB. There is also a risk that payment of investors¡¯ redemption proceeds in RMB may be delayed when there is not sufficient RMB for currency conversion for settlement of the redemption proceeds. In any event, redemption monies will be paid within one calendar month upon receipt of a properly documented request.

•When calculating the value of the RMB classes, reference will be made to the offshore RMB in Hong Kong (the ¡°CNH¡±). The CNH rate may be at a premium or discount to the exchange rate for onshore RMB in China (the ¡°CNY¡±) and there may be significant bid and offer spreads. While CNH and CNY represent the same currency, they are traded in different and separate markets which operate independently. As such, CNH does not necessarily have the same exchange rate and may not move in the same direction as CNY.

•The value of the RMB classes thus calculated will be subject to fluctuation. The exchange rate of RMB may rise or fall. There can be no assurance that RMB will not be subject to devaluation. Any devaluation of RMB could adversely affect the value of investors¡¯ investments in the RMB classes of the Fund. Non-RMB based (e.g. Hong Kong) investors may have to convert HKD or other currencies into RMB when investing in the RMB classes. Subsequently, investors may also have to convert the RMB redemption proceeds (received when selling the units) back to HKD or other currencies. During these processes, investors will incur currency conversion costs and may suffer losses in the event that RMB depreciates against HKD or such other currencies upon receipt of the RMB redemption proceeds.

All information contained in this website is published to the best of the knowledge and belief of China Universal Group to be accurate at the time it was posted. However, no representation or warranty, expressed or implied is made by China Universal Group as to its accuracy or completeness of the information or data provided in this website. China Universal Group, its directors, officers or employees accept no liability for any errors or omissions relating to information available in this website, and will not be liable for any damages or losses arising out of or in any way connected with (i) the use of the information provided in this website and (ii) any interruption or failure in system operation, delay in data transmission, computer virus or line or system failure. China Universal Group reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.

All copyright, trademarks and similar rights in this website and the information contained herein are owned by or licensed to China Universal Group. Unless prior written consent is obtained from China Universal Group, information in or any parts of this website cannot be reproduced, distributed or published by any institutions or individuals.

Before you continue, please read this important information carefully. By clicking the "AGREE" button, you consent to be bound by all the terms set out herein. If you do not agree with any of these terms, please click "DO NOT AGREE" button and leave this website.

You must read the following Important Notes and the Disclaimer before proceeding

IMPORTANT NOTES

This website has been prepared by China Universal Asset Management (Hong Kong) Company Limited ("China Universal (HK)") for information purposes only. The information contained in this website is not intended for use by persons located in or residing in jurisdiction that restrict the distribution of such information by China Universal (HK) and its parent companies, subsidiaries and/or associates (collectively the "China Universal Group"). The information contained in this website does not constitute a distribution, an offer to buy or the solicitation of any offer to buy or sell any securities in any jurisdiction where such a distribution or offer would be illegal. Person accessing this website should inform themselves and observe any relevant restrictions. Information contained in this website has not been reviewed by Securities and Futures Commission of Hong Kong ("SFC").

None of the information contained in this website constitute an invitation or solicitation to invest in any shares or units of the Fund, nor does it constitute any investment advice or recommendation to acquire or dispose of any investment or to engage in any transactions. Before acting on any information in this website, you should consider whether any investment, security or strategy is suitable for your particular circumstance and, if necessary, seek independent professional advice.

Investment involves risks. The price of units or shares of the Fund may go up as well as down. The Manager does not guarantee that the Fund is profitable or able to achieve minimum return. Past performance of the Fund does not represent its future performance and the performance of the other funds managed by the Manager is no guarantee of the performance of the Fund. The value of the Fund can be extremely volatile and could go down substantially within a short period of time. It is possible that the entire value of your investment could be lost. Before making any investment decisions, investors should carefully read the Fund¡¯s offering documents, including Explanatory Memorandum/Prospectus, Hong Kong Supplement (if applicable) and Product Key Facts Statement for details and risk factors of the Fund, particularly the risk of investment in emerging markets.

Important Risk Disclosure

CUAM Hong Kong Dollar Bond Fund (the "Fund") seeks to provide investors with a stable and consistent investment return over medium to long term by investing primarily in Hong Kong Dollar denominated debt securities instruments.

1.Investment risk

•The instruments invested by the Fund may fall in value and therefore your investment in the Fund may suffer losses. There is no guarantee of dividend or distribution payments during the period an investor holds units in the Fund.

2. Risks relating to debt securities

•The Fund mainly invests in debt securities which may fall in value. Investors may suffer losses as a result. Investment in the Fund is subject to risks that apply to debt securities as follows:

Interest rates risk

•Investment in the Fund is subject to interest rate risk. Generally, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise.

Credit risk of issuers or counterparties

•The Fund is exposed to the credit/insolvency risk of issuers of the debt securities it invests in. Such issuers may be unable or unwilling to make timely payments on principal and/or interest.

Risks relating to credit rating

•Credit ratings assigned by a rating agency are not absolute standards of credit quality and do not evaluate market risks.

Downgrading risk

•Investment grade securities may be subject to the risk of being downgraded to below investment grade securities. If the Fund continues to hold such securities, it will be subject to additional risk of loss.

Below investment grade and unrated securities risk

• The Fund may invest in securities which are below investment grade or which are unrated. Such securities would generally be considered to have a higher degree of counterparty risk, credit risk and liquidity risk than higher rated, lower yielding securities. If the issuer of such securities defaults, or such securities cannot be realised, or perform badly, investors may suffer substantial losses.

Liquidity risk

•Some of the debt securities in which a Fund invests may be illiquid, and may be difficult or impossible to sell. This would affect the Fund¡¯s ability to acquire or dispose of such securities at their intrinsic value.

Valuation risk

•Valuation of the Fund¡¯s investment may involve uncertainties and judgmental determinations, and independent pricing information may not at all times be available. If such valuations should prove to be incorrect, the Net Asset Value of the Fund may be adversely affected. The value of fixed income instruments may be affected by changing market conditions or other significant market events affecting valuation.

3.Risk relating to convertible bonds

•This Fund may invest in convertible bonds, which shares similar characteristics and nature of debt and equity, permitting holders to convert into shares in the company issuing the bond at a specific future date. Convertible bonds are subject to the credit, interest rate and market risks with both debt securities and equity securities and any risk specific to convertible bonds. Convertible bonds may also be subject to lower liquidity than the underlying equities. Therefore, investors should be prepared for greater volatility than normal bond investments, with an increased risk of capital loss.

4. Risks relating to equity securities

•The Fund may hold equities in the event that the Manager converts the invested convertible bonds to equities. The value of such investments may be affected by uncertainties such as international, political and economic developments or changes in government policies. In falling equity markets there may be increased volatility. Market prices in such circumstances may defy rational analysis or expectation for prolonged periods of time, and can be influenced by movements of large funds as a result of short-term factors, counter-speculative measures or other reasons.

5.Risk of using financial derivative instruments

•The use of financial derivative instruments may expose the Fund to risks including market volatility risk, credit risk, counterparty risk, liquidity risk, non-redeemable risk and issuer¡¯s defaults risk. In adverse situation, the use of financial derivative instruments for hedging purposes may become ineffective and the Fund may suffer significant losses.

6.RMB currency risk

•RMB is currently not freely convertible and is subject to exchange controls and restrictions imposed by the Mainland authorities. Investors may be adversely affected by movements of the exchange rates between RMB and other currencies.

7. RMB classes related risk

•The prices of unit in the RMB classes are denominated in RMB, but the Sub-Fund may have limited RMB-denominated underlying investments and its base currency is HKD. As such, even if the prices of underlying investments and/or value of the base currency rise or remain stable, investors may still incur losses if RMB appreciates against the currencies of the underlying investments and/or the base currency more than the increase in the value of the underlying investments and/or the base currency. Furthermore, if RMB appreciates against the currencies of the underlying investments and/or the base currency, and the value of the underlying investments decreased, the value of investors¡¯ investments in RMB classes may suffer additional losses.

•Investors investing in RMB classes must subscribe for units and will normally receive redemption proceeds in RMB. Due to the exchange controls and restrictions applicable to RMB, the Sub-Fund may not be able to get sufficient amounts of RMB in a timely manner to meet redemption requests of RMB classes and/or pay dividends (if any) if all or a substantial portion of its underlying investments are non-RMB denominated. Therefore, even if the Sub-Fund aims to pay redemption proceeds and/or dividends to investors of RMB classes in RMB, investors may not receive RMB upon redemption of investments or receive dividend payments (if any) in RMB. There is also a risk that payment of investors¡¯ redemption proceeds in RMB may be delayed when there is not sufficient RMB for currency conversion for settlement of the redemption proceeds.

•When calculating the value of the RMB classes, reference will be made to the offshore RMB in Hong Kong (the ¡°CNH¡±). The CNH rate may be at a premium or discount to the exchange rate for onshore RMB in China (the ¡°CNY¡±) and there may be significant bid and offer spreads. While CNH and CNY represent the same currency, they are traded in different and separate markets which operate independently. As such, CNH does not necessarily have the same exchange rate and may not move in the same direction as CNY.

•The value of the RMB classes thus calculated will be subject to fluctuation. The exchange rate of RMB may rise or fall. There can be no assurance that RMB will not be subject to devaluation. Any devaluation of RMB could adversely affect the value of investors¡¯ investments in the RMB classes of the Sub-Fund. Non-RMB based (e.g. Hong Kong) investors may have to convert HKD or other currencies into RMB when investing in the RMB classes. Subsequently, investors may also have to convert the RMB redemption proceeds (received when selling the units) back to HKD or other currencies. During these processes, investors will incur currency conversion costs and may suffer losses in the event that RMB depreciates against HKD or such other currencies upon receipt of the RMB redemption proceeds.

8.Risks associated with distributions out of/effectively out of capital

• Payment of distributions out of the Fund¡¯s capital and/or effectively out of the Fund¡¯s capital amounts to a return or withdrawal of part of a Unitholder¡¯s original investment or from any capital gains attributable to that original investment. Any such distributions will result in an immediate reduction of the net asset value per unit.

•The approval of the SFC will be sought (where necessary) and at least one month¡¯s prior notice will be given to unitholders should there be a change in distribution policy.

All information contained in this website is published to the best of the knowledge and belief of China Universal Group to be accurate at the time it was posted. However, no representation or warranty, expressed or implied is made by China Universal Group as to its accuracy or completeness of the information or data provided in this website. China Universal Group, its directors, officers or employees accept no liability for any errors or omissions relating to information available in this website, and will not be liable for any damages or losses arising out of or in any way connected with (i) the use of the information provided in this website and (ii) any interruption or failure in system operation, delay in data transmission, computer virus or line or system failure. China Universal Group reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.

All copyright, trademarks and similar rights in this website and the information contained herein are owned by or licensed to China Universal Group. Unless prior written consent is obtained from China Universal Group, information in or any parts of this website cannot be reproduced, distributed or published by any institutions or individuals.

Before you continue, please read this important information carefully. By clicking the "AGREE" button, you consent to be bound by all the terms set out herein. If you do not agree with any of these terms, please click "DO NOT AGREE" button and leave this website.

You must read the following Important Notes and the Disclaimer before proceeding

DISCLAIMER

This website has been prepared by China Universal Asset Management (Hong Kong) Company Limited ("China Universal (HK)") for information purposes only. The information contained in this website is not intended for use by persons located in or residing in jurisdiction that restrict the distribution of such information by China Universal (HK) and its parent companies, subsidiaries and/or associates (collectively the "China Universal Group"). The information contained in this website does not constitute a distribution, an offer to buy or the solicitation of any offer to buy or sell any securities in any jurisdiction where such a distribution or offer would be illegal. Person accessing this website should inform themselves and observe any relevant restrictions. Information contained in this website has not been reviewed by Securities and Futures Commission of Hong Kong ("SFC").

None of the information contained in this website constitute an invitation or solicitation to invest in any shares or units of the Fund, nor does it constitute any investment advice or recommendation to acquire or dispose of any investment or to engage in any transactions. Before acting on any information in this website, you should consider whether any investment, security or strategy is suitable for your particular circumstance and, if necessary, seek independent professional advice.

Investment involves risks. The price of units or shares of the Fund may go up as well as down. The Manager does not guarantee that the Fund is profitable or able to achieve minimum return. Past performance of the Fund does not represent its future performance and the performance of the other funds managed by the Manager is no guarantee of the performance of the Fund. The value of the Fund can be extremely volatile and could go down substantially within a short period of time. It is possible that the entire value of your investment could be lost. Before making any investment decisions,investors should carefully read the Fund¡¯s offering documents, including Explanatory Memorandum/Prospectus, Hong Kong Supplement (if applicable)and Product Key Facts Statement for details and risk factors of the Fund, particularly the risk of investment inemerging markets.

All information contained in this website is published to the best of the knowledge and belief of China Universal Group to be accurate at the time it was posted. However, no representation or warranty, expressed or implied is made by China Universal Group as to its accuracy or completeness of the information or data provided in this website. China Universal Group, its directors, officers or employees accept no liability for any errors or omissions relating to information available in this website, and will not be liable for any damages or losses arising out of or in any way connected with (i) the use of the information provided in this website and (ii) any interruption or failure in system operation, delay in data transmission, computer virus or line or system failure.China Universal Group reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.

All copyright, trademarks and similar rights in this website and the information contained herein are owned by or licensed to China Universal Group. Unless prior written consent is obtained from China Universal Group, information in or any parts of this website cannot be reproduced, distributed or published by any institutions or individuals.

CSI Disclaimer

The underlying index of the Fund (the "Index") is compiled and calculated by China Securities Index Co., Ltd. (¡°CSI¡±). All copyright in the Index values and constituent list vest in CSI. CSI will apply all necessary means to ensure the accuracy of the Index. However, CSI does not guarantee its instantaneity, completeness or accuracy, nor shall it be liable (whether in negligence or otherwise) to any person for any error in the Index or under any obligation to advise any person of any error therein.

Data Provider's Disclaimer

All information provided by Interactive Data (Hong Kong) Limited ("Interactive Data") and its affiliates (the "Interactive Data Information") is owned by or licensed to Interactive Data and its affiliates and any user is permitted to use such Interactive Data Information only for such user's personal use. In no event shall any user publish, retransmit, redistribute or otherwise reproduce any Interactive Data Information in any format to anyone, and no user shall use any Interactive Data Information in or in connection with any business or commercial enterprise, including, without limitation, any securities, investment, accounting, banking, legal or media business or enterprise.

Prior to the execution of a security trade based upon the Interactive Data Information, you are advised to consult with your broker or other financial representative to verify pricing information.

THE INTERACTIVE DATA INFORMATION IS PROVIDED TO THE USERS "AS IS." NEITHER INTERACTIVE DATA NOR ITS AFFILIATES NOR ANY THIRD PARTY DATA PROVIDER MAKE ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND REGARDING THE INTERACTIVE DATA INFORMATION, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. NEITHER INTERACTIVE DATA NOR ITS AFFILIATES NOR ANY THIRD PARTY DATA PROVIDER WILL BE LIABLE TO ANY USER OR ANYONE ELSE FOR ANY INTERRUPTION, INACCURACY, ERROR OR OMISSION, REGARDLESS OF CAUSE, IN THE INTERACTIVE DATA INFORMATION OR FOR ANY DAMAGES (WHETHER DIRECT OR INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY) RESULTING THEREFROM.

Delayed market price

Delayed data as shown on the Hong Kong Website (the "data") are provided by the data provider Interactive Data. Interactive Data and HKEx Information Services Limited, and their respective holding companies and/or any subsidiaries of such holding companies, do not guarantee the accuracy or reliability of the data provided and accept no liability (whether in tort or contract or otherwise) for any loss or damage you may suffer or incur arising out of or in connection with your use of the data, including loss or damage which arises out of the data being inaccurate, incomplete or delayed, and however such loss or damage arises. You acknowledge that the data is provided for information only and should not be relied upon for any purpose".

Important Risk Disclosure

C-Shares CSI 300 Index ETF (the "Fund")is a physical ETF and invests primarily in China A-Shares listed on the stock exchanges of thePeople's Republic of China ("China" or "PRC") through the Renminbi Qualified Foreign Institutional Investor("RQFII") quota of the Manager.

1.    Investment risk

•The Fund is an investment fund. It is not principal guaranteed and the purchase of its units is not the same as investing directly in the Index Securities comprised in the Underlying Index. Your investment in the Fund may suffer losses. There is no assurance that the Fund will achieve its investment objective.

•Prices of securities may be volatile and are influenced by, among other things, the inherent volatility of the market place and other risks inherent in the market.

2.    Risks in light of cross-border nature of the Fund

•The Fund is a RMB physical China A-Shares exchange traded fund issued outside PRC to invest directly in the China A-Shares market which is inherently a market with restricted access. In light of the cross-border nature of the Fund, it is riskier than traditional exchange traded funds investing directly in markets other than the PRC.

3.    RQFII risk

•The RQFII policy and rules are in the early stages of their operations. Such policy and rules are subject to change and interpretation of the PRC authorities. The uncertainty and change of the laws and regulations of the PRC (including the RQFII policy and rules) may have an adverse impact on the Fund. Such change may have retrospective effect.

•The Manager (as RQFII holder) may from time to time make available RQFII quota for the purpose of the Fund¡¯s direct investment into the PRC. There is no assurance that the Manager will continue to maintain its RQFII status or the Manager will make available RQFII quota that is sufficient for the Fund¡¯s investment at all times. The Fund may not have sufficient portion of RQFII quotas to meet all applications for subscription to the Fund. This may result in a rejection of applications and a suspension of dealings of the Fund, and the Fund may trade at a significant premium to its NAV.

4.    Dual Counter trading risk

•The Fund has units traded on the SEHK in both RMB and HKD via the RMB counter and the HKD counter respectively. The dual counter arrangement adopted by the Fund may bring additional risks for investment in the Fund and may make such investment riskier than investment in single counter ETFs.

•If there is a suspension of the inter-counter transfer of units between the RMB counter and the HKD counter, unitholders will only be able to trade their units in the relevant counter on the SEHK.

•The market price on the SEHK of units traded in RMB and of units traded in HKD may deviate significantly due to different factors such as market liquidity, supply and demand in each counter and the exchange rate between RMB and HKD (in both onshore and offshore markets). As such, investors may pay more or receive less when buying or selling units traded in HK D on the SEHK than in respect of units traded in RMB and vice versa.

•Investors without RMB accounts may buy and sell HKD traded units only. They will not be able to buy or sell RMB traded units and should note that distributions are made in RMB only. As such, investors may suffer a foreign exchange loss and incur foreign exchange associated fees and charges to receive their dividend.

•Investors who bought units on the HKD counter may be subject to currency exchange risk as the assets of the Fund are denominated in RMB.

•Some brokers/intermediaries and CCASS participants may not be familiar with and may not be able to (i) buy units in one counter and to sell units in the other, (ii) carry out inter-counter trades of units, or (iii) trade both counters at the same time. This may inhibit or delay an investor dealing in both RMB traded and HKD traded units and the investor may only trade in one currency.

5.    Renminbi currency risk

•RMB is currently not a freely convertible currency as it is subject to foreign exchange controls and restrictions. Since the Fund is denominated in RMB, non-RMB based investors are exposed to foreign exchange risk as a result of fluctuations in the RMB exchange rate against their base currencies. There is no guarantee that the value of RMB against the investors¡¯ base currency (e.g. HKD) will not depreciate. If investors wish or intend to convert the redemption proceeds or dividends (in RMB on both HKD traded Units and RMB traded Units) paid by the Fund or sale proceeds (in RMB on RMB traded units) into a different currency, they are subject to the relevant foreign exchange risk and may suffer losses from such conversion as well as associated fees and charges.

6.    China market risk

• China is considered as an emerging market and investing in China market may subject the Fund to certain risks and special considerations as compared with investment in more developed economies or markets, such as greater economic, political, tax, foreign exchange, regulatory, volatility and liquidity risks.

• The China A-Shares market may be more volatile and unstable (e.g. due to suspension of particular stocks or government intervention) than those in the more developed markets as it is undergoing development and has lower trading volumes than those in more developed markets. A participating dealer may not be able to create and redeem the Fund¡¯s units if any Index Securities are not available.

•The PRC imposes restrictions on foreign ownerships and holdings which may have adverse impact on unitholders. If applicable to constituents of the Underlying Index, this may lead to increased tracking error, and at worst, the Fund may not be able to achieve its investment objective.

7.    Concentration risk

• The concentration of the Fund¡¯s investments in a single geographical region (i.e. China) may subject it to greater volatility than portfolios which comprise broad-based global investments.

8.    Risks relating to RMB trading and settlement of units

• The Units of the Fund are traded on the SEHK with dual counter arrangement (i.e. RMB traded and HKD traded Units) and settled in CCASS.

•The listing, trading and settlement of the Fund¡¯s RMB traded units may not be capable of being implemented as envisaged.

• Not all custodians or stockbrokers may be ready and able to carry out trading and settlement of the RMB traded Units.

• Any restrictions or delay in repatriation of the invested capital, net profits and RMB will impact on the Fund¡¯s ability to meet redemption requests from the unitholders. There is a risk that investors receive settlement in RMB on a delayed basis or may not be able to receive redemption proceeds in RMB.

• The liquidity and trading price of the RMB traded units of the Fund may be adversely affected by the limited availability of RMB outside the PRC and the restrictions on the conversion between foreign currency and RMB. This may result in the Fund trading at a significant premium/discount to its Net Asset Value.

• Repatriations in RMB by RQFIIs are currently permitted daily and are not subject to any repatriation restrictions, lock-up periods or prior approval. However, there is no assurance that such policy will not be changed.

9.    PRC tax risk

• Pursuant to the ¡°Notice on the issues of temporary exemption from the imposition of corporate income tax arising from gains from the transfer of equity investment assets such as PRC domestic stocks by QFII and RQFII¡± Caishui [2014] No.79, investing through the Manager¡¯s RQFII quota is exempt from PRC corporate income tax (¡°CIT¡±) on capital gains from investments in equity investment assets (including China A-Shares) effective from 17 November 2014. The Manager has determined, having taken and considered independent professional tax advice and acting in accordance with such advice, that no PRC CIT WIT provision will be made on the gross realized and unrealized capital gains derived from investments in equity investment assets (including China A-Shares).

• The tax exemption granted under Caishui [2014] No.79 is only temporary. It is possible that the applicable tax law, regulations and practice may change from time to time and taxes being applied retrospectively. As such, there is a risk that the Fund will incur tax liabilities, which may potentially cause substantial loss to the Fund and the Net Asset Value of the Fund may require further adjustment to take into account any retrospective application of new tax regulations and development, including change in interpretation of the relevant regulations by the PRC tax authority.

• In the event that tax is levied by the PRC tax authorities, the Net Asset Value of the Fund may be lowered, as the Fund will ultimately have to bear the full amount of tax liabilities. In this case, the tax liabilities will only impact Units in issue at the relevant time, and the then existing Unitholders and subsequent Unitholders will be disadvantaged as such Unitholders will bear, through the Fund, a disproportionately higher amount of tax liabilities as compared to that borne at the time of investment in the Fund.

10.  Risks relating to the differences between the Hong Kong and PRC stock markets

• The trading days or hours of the PRC and Hong Kong stock markets are not exactly the same. There may be in the Fund¡¯s portfolio may change but investors are not able to purchase or sell the Fund¡¯s units.

• On the other hand, if a PRC stock exchange is closed while the SEHK is open, the market prices of Index Securities may not be available while the Fund is still trading, which may affect the level of premium or discount of the trading price of the Fund to its NAV.

• While China A-Shares are subject to trading bands which restrict increases and decreases in the trading price, trading of the Fund listed on the SEHK is not subject to such restrictions. The dealing suspension of the Index Security will render it impossible for the Fund to acquire the Index Security or liquidate positions to reflect creation/ redemption of the units. This may result in higher tracking error and may expose the Fund to losses. Units of the Fund may also be traded at a premium or discount to its NAV.

11.  Custody risk and PRC brokerage risk

• In the event of any default or bankruptcy of the Custodian (directly or through its delegate, including the RQFII Custodian) or the brokers appointed by the RQFII Holder in the PRC (¡°PRC Brokers¡±), the Fund may encounter delays in recovering its assets and may be adversely affected in the execution of any transaction. As a result, the net asset value of the Fund may also be adversely affected.

• Only one PRC Broker can be appointed in respect of each stock exchange in the PRC to execute transactions (i.e. trading of China A-Shares) for the Fund in the PRC. As such the Fund will rely on only one PRC Broker for each exchange, which may be the same PRC Broker. If the Manager is unable to use its designated PRC Broker in the PRC, the operation of the Fund will be adversely affected and may cause the Fund¡¯s units to trade at a premium or discount to its NAV or the Fund may not be able to track the Underlying Index.

12.  Risks of government intervention and restriction

• Governments and regulators may intervene in the economy and financial markets, such as by the imposition of trading restrictions, a ban on ¡°naked¡± short selling or the suspension of short selling for certain stocks. Further, intervention or restrictions by governments and regulators may affect the trading of China A-Shares or units of the Fund. This may affect the operation and market making activities of the Fund. This may also lead to an increased tracking error for the Fund. Such interventions may have a negative impact on the market sentiment which may in turn affect the performance of the Underlying Index and the Fund. In worst case scenario, the investment objective of the Fund cannot be achieved.

13.  Risks relating to limited operating history and experience of Manager and Reliance on the Manager's parent company

• The RQFII exchange traded funds with its cross-border nature are relatively new in the market. Whilst the Manager has experience in managing and operating RQFII exchange traded fund, such experience is limited. As such, the Fund is subject to the risks relating to the limited operating history and experience of the Manager in managing and operating RQFII physical China A-Shares exchange traded fund. The Manager may substantially tap into its PRC parent company¡¯s relevant infrastructure and expertise to support its operation of the Fund in Hong Kong. While the PRC parent company of the Manager has sufficient experience and expertise in managing and operating China A-Shares exchange traded funds listed and traded in China, there is no assurance that the Fund will be operated as envisaged. Any disruption in the assistance from the Manager¡¯s parent company may adversely affect the operations of the Fund.

14.  Reliance on market makers risk

• Units of the Fund on the RMB counter are traded and settled in RMB. There may be less interest by potential market makers making a market in units denominated and traded in RMB. Any disruption to the availability of RMB may adversely affect the capability of market makers in providing liquidity for the units.

• Although it is a requirement that the Manager ensures that there will always be at least one market maker to the Fund and at least one market maker for each counter, it is possible that no market maker is appointed. Further, a market maker may cease to act as a market maker for the Fund in accordance with the terms of its agreement including upon giving prior written notice. The termination notice period for at least one market maker for the Fund (in respect of both the RMB and HKD counters) will be not less than ninety (90) days.

• Where there is only one SEHK market maker to each counter, it may not be practicable for the Fund to remove the only market maker even if it is not effective. It is possible that there is only one SEHK market maker to a Fund or to a counter of a Fund or the Manager may not be able to engage a substitute market maker within the termination notice period of a market maker. The liquidity of the Fund may be adversely affected if there is no market maker for the RMB or HKD traded Units of the Fund or if the market making activities are not effective.

15.  Tracking error risk

• Due to fees and expenses of the Fund, liquidity of the market, imperfect correlation of returns between the Fund¡¯s assets and the Index Securities constituting the Underlying Index and other factors, the Fund¡¯s returns may deviate from that of the Underlying Index.

16.  Trading risk

• Generally, retail investors can only buy or sell units of the Fund on the SEHK. The trading price of the units on the SEHK is driven by market factors such as the demand and supply of the units.

• Disruptions to creations and redemptions may result in the Fund trading at a significant premium/discount to its NAV. Investors may therefore buy the Fund¡¯s units at a price higher than the NAV or receive less than the NAV when selling the units.

• Trading of units may involve various types of costs that apply to all securities transactions such as trading fees and brokerage commissions. Investors on the secondary market will also incur the cost of the trading spread, being the difference between what investors are willing to pay for the units (bid price) and the price at which they are willing to sell units (ask price).

17.  Risks of early termination

• The Manager or the Trustee may terminate the Trust or the Fund under certain circumstances, for examples, in respect of the Trust, where the size of the Trust falls below RMB 10 million or an equivalent amount in any other currency and in respect of the Fund where the size of the Fund falls below RMB 50 million or an equivalent amount in any other currency or where the Underlying Index is no longer available for benchmarking. The Fund may be terminated on the ground of small fund size. Investors should refer to section ¡°14.5 Termination of the Trust or a Sub-Fund¡± in Part 1 of the Prospectus for further details.

• The licence agreement between the Manager and CSI to use the Underlying Index is for an initial term of 3 years commencing from the date of the agreement (i.e. 8 April 2013), and thereafter automatically renewed for successive 2-year period unless terminated pursuant to the agreement. There is no guarantee that the licence agreement will be perpetually renewed.

• The Fund may be terminated if the Underlying Index is discontinued and/or the index licence agreement is terminated and the Manager is unable to identify or agree with any index provider terms for the use of a suitable replacement index.

18.  Passive investments risk

• The Fund is not ¡°actively managed¡± and the Manager does not attempt to select securities individually or to take defensive positions in declining markets.

• Consequently, falls in the Underlying Index are expected to result in a corresponding fall in the value of the Fund.

Before you continue, please read this important information carefully. By clicking the "AGREE" button, you consent to be bound by all the terms set out herein. If you do not agree with any of these terms, please click "DO NOT AGREE" button and leave this website.

You must read the following Important Notes and the Disclaimer before proceeding

DISCLAIMER

This website has been prepared by China Universal Asset Management (Hong Kong) Company Limited (¡°China Universal (HK)¡±) for information purposes only. The information contained in this website is not intended for use by persons located in or residing in jurisdiction that restrict the distribution of such information by China Universal (HK) and its parent companies, subsidiaries and/or associates (collectively the ¡°China Universal Group¡±). The information contained in this website does not constitute a distribution, an offer to buy or the solicitation of any offer to buy or sell any securities in any jurisdiction where such a distribution or offer would be illegal. Person accessing this website should inform themselves and observe any relevant restrictions. Information contained in this website has not been reviewed by Securities and Futures Commission of Hong Kong (¡°SFC¡±).

None of the information contained in this website constitute an invitation or solicitation to invest in any shares or units of the Fund, nor does it constitute any investment advice or recommendation to acquire or dispose of any investment or to engage in any transactions. Before acting on any information in this website, you should consider whether any investment, security or strategy is suitable for your particular circumstance and, if necessary, seek independent professional advice.

Investment involves risks. The price of units or shares of the Fund may go up as well as down. The Manager does not guarantee that the Fund is profitable or able to achieve minimum return. Past performance of the Fund does not represent its future performance and the performance of the other funds managed by the Manager is no guarantee of the performance of the Fund. The value of the Fund can be extremely volatile and could go down substantially within a short period of time. It is possible that the entire value of your investment could be lost. Before making any investment decisions,investors should carefully read the Fund¡¯s offering documents, including Explanatory Memorandum/Prospectus, Hong Kong Supplement (if applicable)and Product Key Facts Statement for details and risk factors of the Fund, particularly the risk of investment inemerging markets.

All information contained in this website is published to the best of the knowledge and belief of China Universal Group to be accurate at the time it was posted. However, no representation or warranty, expressed or implied is made by China Universal Group as to its accuracy or completeness of the information or data provided in this website. China Universal Group, its directors, officers or employees accept no liability for any errors or omissions relating to information available in this website, and will not be liable for any damages or losses arising out of or in any way connected with (i) the use of the information provided in this website and (ii) any interruption or failure in system operation, delay in data transmission, computer virus or line or system failure.China Universal Group reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.

 

All copyright, trademarks and similar rights in this website and the information contained herein are owned by or licensed to China Universal Group. Unless prior written consent is obtained from China Universal Group, information in or any parts of this website cannot be reproduced, distributed or published by any institutions or individuals.

CSI Disclaimer

The underlying index of the Fund (the ¡°Index¡±) is compiled and calculated by China Securities Index Co., Ltd. (¡°CSI¡±). All copyright in the Index values and constituent list vest in CSI. CSI will apply all necessary means to ensure the accuracy of the Index. However, CSI does not guarantee its instantaneity, completeness or accuracy, nor shall it be liable (whether in negligence or otherwise) to any person for any error in the Index or under any obligation to advise any person of any error therein.

Data Provider's Disclaimer

All information provided by Interactive Data (Hong Kong) Limited ("Interactive Data") and its affiliates (the "Interactive Data Information") is owned by or licensed to Interactive Data and its affiliates and any user is permitted to use such Interactive Data Information only for such user's personal use. In no event shall any user publish, retransmit, redistribute or otherwise reproduce any Interactive Data Information in any format to anyone, and no user shall use any Interactive Data Information in or in connection with any business or commercial enterprise, including, without limitation, any securities, investment, accounting, banking, legal or media business or enterprise.

Prior to the execution of a security trade based upon the Interactive Data Information, you are advised to consult with your broker or other financial representative to verify pricing information.

THE INTERACTIVE DATA INFORMATION IS PROVIDED TO THE USERS "AS IS." NEITHER INTERACTIVE DATA NOR ITS AFFILIATES NOR ANY THIRD PARTY DATA PROVIDER MAKE ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND REGARDING THE INTERACTIVE DATA INFORMATION, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. NEITHER INTERACTIVE DATA NOR ITS AFFILIATES NOR ANY THIRD PARTY DATA PROVIDER WILL BE LIABLE TO ANY USER OR ANYONE ELSE FOR ANY INTERRUPTION, INACCURACY, ERROR OR OMISSION, REGARDLESS OF CAUSE, IN THE INTERACTIVE DATA INFORMATION OR FOR ANY DAMAGES (WHETHER DIRECT OR INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY) RESULTING THEREFROM.

Delayed market price

Delayed data as shown on the Hong Kong Website (the ¡°data¡±) are provided by the data provider Interactive Data. Interactive Data and HKEx Information Services Limited, and their respective holding companies and/or any subsidiaries of such holding companies, do not guarantee the accuracy or reliability of the data provided and accept no liability (whether in tort or contract or otherwise) for any loss or damage you may suffer or incur arising out of or in connection with your use of the data, including loss or damage which arises out of the data being inaccurate, incomplete or delayed, and however such loss or damage arises. You acknowledge that the data is provided for information only and should not be relied upon for any purpose¡±.

Important Risk Disclosure

C-Shares CSI Consumer Staples Index ETF(the ¡°Fund¡±) is a physical ETF and invests primarily in China A-Shares listed on the stock exchanges of thePeople¡¯s Republic of China (¡°China¡± or ¡°PRC¡±) through the Renminbi Qualified Foreign Institutional Investor

(¡°RQFII¡±) quota of the Manager.

1.    Investment risk

• The Fund is an investment fund. It is not principal guaranteed and the purchase of its units is not the same as investing directly in the Index Securities comprised in the Underlying Index. Your investment in the Fund may suffer losses. There is no assurance that the Fund will achieve its investment objective.

• Prices of securities may be volatile and are influenced by, among other things, the inherent volatility of the market place and other risks inherent in the market.

2.    Risks associated with the consumer staples sector

•Companies in the consumer staples sector are subject to government regulation affecting the permissibility of using various food additives and production methods, which could affect company profitability. Factors which may affect this sector include marketing campaigns, performance of the overall domestic and international economy, interest rates, competition and consumer confidence and spending. There can be no assurance that historical growth rates of the economy of the PRC and the PRC consumer market will continue.

• Any future slowdowns or declines in the PRC economy or consumer spending may materially and adversely affect the business of the companies in the consumer staples sector and as a result the performance of the Fund.

3.    Concentration risk

• The concentration of the Fund¡¯s investments in a single geographical region (i.e. China) may subject it to greater volatility than portfolios which comprise broad-based global investments. The Fund is more susceptible to fluctuations in value of the Underlying Index resulting from adverse conditions in the PRC.

• The Underlying Index or portfolio is concentrated in the securities in the consumer staples sector. Consequently, the Fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting the consumer staples sector.

4.    Risk relating to small- and mid-capped companies

• The Fund may invest in the securities of small and/or mid-capped companies. Investing in these securities may expose the Fund to risks such as greater market price volatility, less publicly available information, and greater vulnerability to fluctuations in the economic cycle. Consequently, investment in securities of small and/or mid- capped companies may involve greater risks and thus may be considered speculative. As a result, the Net Asset Value of the Fund may be adversely affected.

5.    Risks in light of cross-border nature of the Fund

•The Fund is a RMB physical China A-Shares exchange traded fund issued outside PRC to invest directly in the China A-Shares market which is inherently a market with restricted access. In light of the cross-border nature of the Fund, it is riskier than traditional exchange traded funds investing directly in markets other than the PRC.

6.    RQFII risk

•The RQFII policy and rules are in the early stages of their operations. Such policy and rules are subject to change and interpretation of the PRC authorities. The uncertainty and change of the laws and regulations on the PRC (including the RQFII policy and rules) may have an adverse impact on the Fund. Such change may have retrospective effect.

•The Manager (as RQFII holder) may from time to time make available RQFII quota for the purpose of the Fund¡¯s direct investment into the PRC. There is no assurance that the Manager will continue to maintain its RQFII status or The Manager will make available RQFII quota that is sufficient for the Fund¡¯s investment at all times. The Fund may not have sufficient portion of RQFII quotas to meet all applications for subscription to the Fund. This may result in a rejection of applications and a suspension of dealings of the Fund, and the Fund may trade at a significant premium to its NAV.

7.    Dual Counter trading risk

•The Fund has units traded on the SEHK in both RMB and HKD via the RMB counter and the HKD counter respectively. The dual counter arrangement adopted by the Fund may bring additional risks for investment in the Fund and may make such investment riskier than investment in single counter ETFs.

• If there is a suspension of the inter-counter transfer of units between the RMB counter and the HKD counter, unitholders will only be able to trade their units in the relevant counter on the SEHK.

• The market price on the SEHK of units traded in RMB and of units traded in HKD may deviate significantly due to different factors such as market liquidity, supply and demand in each counter and the exchange rate between RMB and HKD (in both onshore and offshore markets). As such, investors may pay more or receive less when buying or selling units traded in HKD on the SEHK than in respect of units traded in RMB and vice versa.

•Investors without RMB accounts may buy and sell HKD traded units only. They will not be able to buy or sell RMB traded units and should note that distributions are made in RMB only. As such, investors may suffer a foreign exchange loss and incur foreign exchange associated fees and charges to receive their dividend.

• Investors who bought units on the HKD counter may be subject to currency exchange risk as the assets of the Fund are denominated in RMB.

• Some brokers/intermediaries and CCASS participants may not be familiar with and may not be able to (i) buy units in one counter and to sell units in the other, (ii) carry out inter-counter trades of units, or (iii) trade both counters at the same time. This may inhibit or delay an investor dealing in both RMB traded and HKD traded units and the investor may only trade in one currency.

8.    Renminbi currency risk

•RMB is currently not a freely convertible currency as it is subject to foreign exchange controls and restrictions. Since the Fund is denominated in RMB, non-RMB based investors are exposed to foreign exchange risk as a result of fluctuations in the RMB exchange rate against their base currencies. There is no guarantee that the value of RMB against the investors¡¯ base currency (e.g. HKD) will not depreciate. If investors wish or intend to convert the redemption proceeds or dividends (in RMB on both HKD traded units and RMB traded units) paid by the Fund or sale proceeds (in RMB on RMB traded units) into a different currency, they are subject to the relevant foreign exchange risk and may suffer losses from such conversion as well as associated fees and charges.

9.    China market risk

• China is considered as an emerging market and investing in China market and PRC-related companies may subject the Fund to certain risks and special considerations as compared with investments in more developed economies or markets, such as greater economic, political, tax, foreign exchange, regulatory, volatility and liquidity risks. Investing in emerging markets may involve a greater risk of loss than investing in more developed markets.

• The China A-Shares market may be more volatile and unstable (e.g. due to suspension of particular stocks or government intervention) than those in the more developed markets as it is undergoing development and has lower trading volumes than those in more developed markets. A participating dealer may not be able to create and redeem the Fund¡¯s units if any Index Securities are not available.

•The PRC imposes restrictions on foreign ownerships and holdings which may have adverse impact on unitholders. If applicable to constituents of the Underlying Index, this may lead to increased tracking error, and at worst, the Fund may not be able to achieve its investment objective.

10.  Risks relating to RMB trading and settlement of units

•The units of the Fund are traded on the SEHK with dual counter arrangement (i.e. RMB traded and HKD traded units) and settled in CCASS.

•The listing, trading and settlement of the Fund¡¯s RMB traded units may not be capable of being implemented as envisaged.

•Not all custodians or stockbrokers may be ready and able to carry out trading and settlement of the RMB traded units.

•Any restrictions or delay in repatriation of the invested capital, net profits and RMB will impact on the Fund¡¯s ability to meet redemption requests from the unitholders. There is a risk that investors receive settlement in RMB on a delayed basis or may not be able to receive redemption proceeds in RMB.

•The liquidity and trading price of the RMB traded units of the Fund may be adversely affected by the limited availability of RMB outside the PRC and the restrictions on the conversion between foreign currency and RMB. This may result in the Fund trading at a significant premium/discount to its Net Asset Value.

• Repatriations in RMB by RQFIIs are currently permitted daily and are not subject to any repatriation restrictions, lock-up periods or prior approval. However, there is no assurance that such policy will not be changed. Any new restrictions on repatriation of the invested capital and net profits may impact on the Fund¡¯s ability to meet redemption requests.

• After listing, the trading price of the units on the SEHK will be subject to market forces and may trade at a substantial premium/discount to their NAV, and may deviate significantly from the NAV per unit.

11.  PRC tax risk

• Pursuant to the ¡°Notice on the issues of temporary exemption from the imposition of corporate income tax arising from gains from the transfer of equity investment assets such as PRC domestic stocks by QFII and RQFII¡± Caishui [2014] No.79, investing through the Manager¡¯s RQFII quota is exempt from PRC corporate income tax (¡°CIT¡±) on capital gains from investments in equity investment assets (including China A-Shares) effective from 17 November 2014. The Manager has determined, having taken and considered independent professional tax advice and acting in accordance with such advice, that no PRC CIT WIT provision will be made on the gross realized and unrealized capital gains derived from investments in equity investment assets (including China A-Shares).

•The tax exemption granted under Caishui [2014] No.79 is only temporary. It is possible that the applicable tax law, regulations and practice may change from time to time and taxes being applied retrospectively. As such, there is a risk that the Fundwill incur tax liabilities, which may potentially cause substantial loss to the Fund and the Net Asset Value of the Fund may require further adjustment to take into account any retrospective application of new tax regulations and development, including change in interpretation of the relevant regulations by the PRC tax authority.

•In the event that tax is levied by the PRC tax authorities, the Net Asset Value of the Fund may be lowered, as the Fund will ultimately have to bear the full amount of tax liabilities. In this case, the tax liabilities will only impact Units in issue at the relevant time, and the then existing Unitholders and subsequent Unitholders will be disadvantaged as such Unitholders will bear, through the Fund, a disproportionately higher amount of tax liabilities as compared to that borne at the time of investment in the Fund.

12.  Risks relating to the differences between the Hong Kong and PRC stock markets

•The trading days or hours of the PRC and Hong Kong stock markets are not exactly the same. There may be occasions when China A-Share markets are open while SEHK is closed and the Fund is not traded. As such, the value of the Index Securities in the Fund¡¯s portfolio may change but investors are not able to purchase or sell the Fund¡¯s units.

•On the other hand, if a PRC stock exchange is closed while the SEHK is open, the market prices of Index Securities may not be available while the Fund is still trading, which may affect the level of premium or discount of the trading price of the Fund to its NAV.

• While China A-Shares are subject to trading bands which restrict increases and decreases in the trading price, trading of the Fund listed on the SEHK is not subject to such restrictions. The dealing suspension of the Index Security will render it impossible for the Fund to acquire the Index Security or liquidate positions to reflect creation/ redemption of the units. This may result in higher tracking error and may expose the Fund to losses. Units of the Fund may also be traded at a premium or discount to its NAV.

13.  Custody risk and PRC brokerage risk

•In the event of any default or bankruptcy of the Custodian (directly or through its delegate, including the RQFII Custodian) or the brokers appointed by the RQFII Holder in the PRC (¡°PRC Brokers¡±), the Fund may encounter delays in recovering its assets and may be adversely affected in the execution of any transaction. As a result, the net asset value of the Fund may also be adversely affected.

•Only one PRC Broker can be appointed in respect of each stock exchange in the PRC to execute transactions (i.e. trading of China A-Shares) for the Fund in the PRC. As such the Fund will rely on only one PRC Broker for each exchange, which may be the same PRC Broker. If the Manager is unable to use its designated PRC Broker in the PRC, the operation of the Fund will be adversely affected and may cause the Fund¡¯s units to trade at a premium or discount to its NAV or the Fund may not be able to track the Underlying Index.

14.  Risks of government intervention and restriction

• Governments and regulators may intervene in the economy and financial markets, such as by the imposition of trading restrictions, a ban on ¡°naked¡± short selling or the suspension of short selling for certain stocks. Further, intervention or restrictions by governments and regulators may affect the trading of China A-Shares or units of the Fund. This may affect the operation and market making activities of the Fund. This may also lead to an increased tracking error for the Fund. Such interventions may have a negative impact on the market sentiment which may in turn affect the performance of the Underlying Index and the Fund. In worst case scenario, the investment objective of the Fund cannot be achieved.

15.  Risks relating to limited operating history and experience of Manager and reliance on the Manager's parent company

• The RQFII exchange traded funds with its cross-border nature are relatively new in the market. Whilst the Manager has experience in managing and operating RQFII exchange traded fund, such experience is limited. As such, the Fund is subject to the risks relating to the limited operating history and experience of the Manager in managing and operating RQFII physical China A-Shares exchange traded fund. The Manager may substantially tap into its PRC parent company¡¯s relevant infrastructure and expertise to support its operation of the Fund in Hong Kong. While the PRC parent company of the Manager has sufficient experience and expertise in managing and operating physical China A-Shares exchange traded funds listed and traded in China, there is no assurance that the Fund will be operated as envisaged. Any disruption in the assistance from the Manager¡¯s parent company may adversely affect the operations of the Fund.

16.  Reliance on market makers risk

• Units of the Fund on the RMB counter are traded and settled in RMB. There may be less interest by potential market makers making a market in units denominated and traded in RMB. Any disruption to the availability of RMB may adversely affect the capability of market makers in providing liquidity for the units.

• Although it is a requirement that the Manager ensures that there will always be at least one market maker to the Fund and at least one market maker for each counter, it is possible that no market maker is appointed. Further, a market maker may cease to act as a market maker for the Fund in accordance with the terms of its agreement including upon giving prior written notice. The termination notice period for at least one market maker for the Fund (in respect of both the RMB and HKD counters) will be not less than ninety (90) days.

• Where there is only one SEHK market maker to each counter, it may not be practicable for the Fund to remove the only market maker even if it is not effective. It is possible that there is only one SEHK market maker to a Fund or to a counter of a Fund or the Manager may not be able to engage a substitute market maker within the termination notice period of a market maker. The liquidity of the Fund may be adversely affected if there is no market maker for the RMB or HKD traded units of the Fund or if the market making activities are not effective.

17.  Tracking error risk

• Due to fees and expenses of the Fund, liquidity of the market, imperfect correlation of returns between the Fund¡¯s assets and the Index Securities constituting the Underlying Index and other factors, the Fund¡¯s returns may deviate from that of the Underlying Index.

18.  Trading risk

•Generally, retail investors can only buy or sell units of the Fund on the SEHK. The trading price of the units on the SEHK is driven by market factors such as the demand and supply of the units.

• Disruptions to creations and redemptions may result in the Fund trading at a significant premium/discount to its NAV. Investors may therefore buy the Fund¡¯s units at a price higher than the NAV or receive less than the NAV when selling the units.

•Trading of units may involve various types of costs that apply to all securities transactions such as trading fees and brokerage commissions. Investors on the secondary market will also incur the cost of the trading spread, being the difference between what investors are willing to pay for the units (bid price) and the price at which they are willing to sell units (ask price).

19.  Risks of early termination

• The Manager or the Trustee may terminate the Trust or the Fund under certain circumstances, for examples, in respect of the Trust, where the size of the Trust falls below RMB 10 million or an equivalent amount in any other currency and in respect of the Fund where the size of the Fund falls below RMB 50 million or an equivalent amount in any other currency or where the Underlying Index is no longer available for benchmarking. The Fund may be terminated on the ground of small fund size. Investors should refer to section ¡°14.5 Termination of the Trust or a Sub-Fund¡± in Part 1 of the Prospectus for further details.

• The licence agreement between the Manager and CSI to use the Underlying Index is for an initial term of 3 years commencing from the date of the agreement (i.e. 20 February 2014), and thereafter automatically renewed for successive 2-year period unless terminated pursuant to the agreement. There is no guarantee that the licence agreement will be perpetually renewed.

• The Fund may be terminated if the Underlying Index is discontinued and/or the index licence agreement is terminated and the Manager is unable to identify or agree with any index provider terms for the use of a suitable replacement index.

20.  Passive investments risk

•The Fund is not ¡°actively managed¡± and the Manager does not attempt to select securities individually or to take defensive positions in declining markets.

• Consequently, falls in the Underlying Index are expected to result in a corresponding fall in the value of the Fund.

Before you continue, please read this important information carefully. By clicking the "AGREE" button, you consent to be bound by all the terms set out herein. If you do not agree with any of these terms, please click "DO NOT AGREE" button and leave this website.

You must read the following Important Notes and the Disclaimer before proceeding

DISCLAIMER

This website has been prepared by China Universal Asset Management (Hong Kong) Company Limited (¡°China Universal (HK)¡±) for information purposes only. The information contained in this website is not intended for use by persons located in or residing in jurisdiction that restrict the distribution of such information by China Universal (HK) and its parent companies, subsidiaries and/or associates (collectively the ¡°China Universal Group¡±). The information contained in this website does not constitute a distribution, an offer to buy or the solicitation of any offer to buy or sell any securities in any jurisdiction where such a distribution or offer would be illegal. Person accessing this website should inform themselves and observe any relevant restrictions. Information contained in this website has not been reviewed by Securities and Futures Commission of Hong Kong (¡°SFC¡±).

None of the information contained in this website constitute an invitation or solicitation to invest in any shares or units of the Fund, nor does it constitute any investment advice or recommendation to acquire or dispose of any investment or to engage in any transactions. Before acting on any information in this website, you should consider whether any investment, security or strategy is suitable for your particular circumstance and, if necessary, seek independent professional advice.

Investment involves risks. The price of units or shares of the Fund may go up as well as down. The Manager does not guarantee that the Fund is profitable or able to achieve minimum return. Past performance of the Fund does not represent its future performance and the performance of the other funds managed by the Manager is no guarantee of the performance of the Fund. The value of the Fund can be extremely volatile and could go down substantially within a short period of time. It is possible that the entire value of your investment could be lost. Before making any investment decisions,investors should carefully read the Fund¡¯s offering documents, including Explanatory Memorandum/Prospectus, Hong Kong Supplement (if applicable)and Product Key Facts Statement for details and risk factors of the Fund, particularly the risk of investment inemerging markets.

All information contained in this website is published to the best of the knowledge and belief of China Universal Group to be accurate at the time it was posted. However, no representation or warranty, expressed or implied is made by China Universal Group as to its accuracy or completeness of the information or data provided in this website. China Universal Group, its directors, officers or employees accept no liability for any errors or omissions relating to information available in this website, and will not be liable for any damages or losses arising out of or in any way connected with (i) the use of the information provided in this website and (ii) any interruption or failure in system operation, delay in data transmission, computer virus or line or system failure.China Universal Group reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.

All copyright, trademarks and similar rights in this website and the information contained herein are owned by or licensed to China Universal Group. Unless prior written consent is obtained from China Universal Group, information in or any parts of this website cannot be reproduced, distributed or published by any institutions or individuals.

CSI Disclaimer

The underlying index of the Fund (the ¡°Index¡±) is compiled and calculated by China Securities Index Co., Ltd. (¡°CSI¡±). All copyright in the Index values and constituent list vest in CSI. CSI will apply all necessary means to ensure the accuracy of the Index. However, CSI does not guarantee its instantaneity, completeness or accuracy, nor shall it be liable (whether in negligence or otherwise) to any person for any error in the Index or under any obligation to advise any person of any error therein.

Data Provider's Disclaimer

All information provided by Interactive Data (Hong Kong) Limited ("Interactive Data") and its affiliates (the "Interactive Data Information") is owned by or licensed to Interactive Data and its affiliates and any user is permitted to use such Interactive Data Information only for such user's personal use. In no event shall any user publish, retransmit, redistribute or otherwise reproduce any Interactive Data Information in any format to anyone, and no user shall use any Interactive Data Information in or in connection with any business or commercial enterprise, including, without limitation, any securities, investment, accounting, banking, legal or media business or enterprise.

Prior to the execution of a security trade based upon the Interactive Data Information, you are advised to consult with your broker or other financial representative to verify pricing information.

THE INTERACTIVE DATA INFORMATION IS PROVIDED TO THE USERS "AS IS." NEITHER INTERACTIVE DATA NOR ITS AFFILIATES NOR ANY THIRD PARTY DATA PROVIDER MAKE ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND REGARDING THE INTERACTIVE DATA INFORMATION, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. NEITHER INTERACTIVE DATA NOR ITS AFFILIATES NOR ANY THIRD PARTY DATA PROVIDER WILL BE LIABLE TO ANY USER OR ANYONE ELSE FOR ANY INTERRUPTION, INACCURACY, ERROR OR OMISSION, REGARDLESS OF CAUSE, IN THE INTERACTIVE DATA INFORMATION OR FOR ANY DAMAGES (WHETHER DIRECT OR INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY) RESULTING THEREFROM.

Delayed market price

Delayed data as shown on the Hong Kong Website (the ¡°data¡±) are provided by the data provider Interactive Data. Interactive Data and HKEx Information Services Limited, and their respective holding companies and/or any subsidiaries of such holding companies, do not guarantee the accuracy or reliability of the data provided and accept no liability (whether in tort or contract or otherwise) for any loss or damage you may suffer or incur arising out of or in connection with your use of the data, including loss or damage which arises out of the data being inaccurate, incomplete or delayed, and however such loss or damage arises. You acknowledge that the data is provided for information only and should not be relied upon for any purpose¡±.

Important Risk Disclosure

C-Shares CSI Healthcare Index ETF (the ¡°Fund¡±)is a physical ETF and invests primarily in China A-Shares listed on the stock exchanges of thePeople¡¯s Republic of China (¡°China¡± or ¡°PRC¡±) through the Renminbi Qualified Foreign Institutional Investor(¡°RQFII¡±) quota of the Manager.

1.    Investment risk

•The Fund is an investment fund. It is not principal guaranteed and the purchase of its units is not the same as investing directly in the Index Securities comprised in the Underlying Index. Your investment in the Fund may suffer losses. There is no assurance that the Fund will achieve its investment objective.

• Prices of securities may be volatile and are influenced by, among other things, the inherent volatility of the market place and other risks inherent in the market.

2.    Risks associated with the healthcare sector

•The economic prospects of the healthcare sector are generally subject to greater influences from governmental policies and regulations than those of many other industries. Certain healthcare companies may experience above- average price movements associated with the perceived prospects of success of the research and development programs. Some healthcare companies may be adversely affected by lack of commercial acceptance of a new product or process or by technological change and obsolescence.

•Any future slowdowns or declines in the healthcare sector in the PRC may materially and adversely affect the business of the companies in the healthcare sector and as a result, the performance of the Fund.

3.    Concentration risk

•The concentration of the Fund¡¯s investments in a single geographical region (i.e. China) may subject it to greater volatility than portfolios which comprise broad-based global investments. The Fund is more susceptible to fluctuations in value of the Underlying Index resulting from adverse conditions in the PRC.

•The Underlying Index or portfolio is concentrated in the securities in the healthcare sector. Consequently, the Fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting the healthcare sector.

4.    Risk relating to small- and mid-capped companies

• The Fund may invest in the securities of small and/or mid-capped companies. Investing in these securities may expose the Fund to risks such as greater market price volatility, less publicly available information, and greater vulnerability to fluctuations in the economic cycle. Consequently, investment in securities of small and/or mid- capped companies may involve greater risks and thus may be considered speculative. As a result, the Net Asset Value of the Fund may be adversely affected.

5.    Risks in light of cross-border nature of the Fund

• The Fund is a RMB physical China A-Shares exchange traded fund issued outside PRC to invest directly in the China A-Shares market which is inherently a market with restricted access. In light of the cross-border nature of the Fund, it is riskier than traditional exchange traded funds investing directly in markets other than the PRC.

6.    RQFII risk

• The RQFII policy and rules are in the early stages of their operations. Such policy and rules are subject to change and interpretation of the PRC authorities. The uncertainty and change of the laws and regulations on the PRC (including the RQFII policy and rules) may have an adverse impact on the Fund. Such change may have retrospective effect.

• The Manager (as RQFII holder) may from time to time make available RQFII quota for the purpose of the Fund¡¯s direct investment into the PRC. There is no assurance that the Manager will continue to maintain its RQFII status or the Manager will make available RQFII quota that is sufficient for the Fund¡¯s investment at all times. The Fund may not have sufficient portion of RQFII quotas to meet all applications for subscription to the Fund. This may result in a rejection of applications and a suspension of dealings of the Fund, and the Fund may trade at a significant premium to its NAV.

7.    Dual Counter trading risk

• The Fund has units traded on the SEHK in both RMB and HKD via the RMB counter and the HKD counter respectively. The dual counter arrangement adopted by the Fund may bring additional risks for investment in the Fund and may make such investment riskier than investment in single counter ETFs.

• If there is a suspension of the inter-counter transfer of units between the RMB counter and the HKD counter, unitholders will only be able to trade their units in the relevant counter on the SEHK.

• The market price on the SEHK of units traded in RMB and of units traded in HKD may deviate significantly due to different factors such as market liquidity, supply and demand in each counter and the exchange rate between RMB and HKD (in both onshore and offshore markets). As such, investors may pay more or receive less when buying or selling units traded in HKD on the SEHK than in respect of units traded in RMB and vice versa.

• Investors without RMB accounts may buy and sell HKD traded units only. They will not be able to buy or sell RMB traded units and should note that distributions are made in RMB only. As such, investors may suffer a foreign exchange loss and incur foreign exchange associated fees and charges to receive their dividend.

• Investors who bought units on the HKD counter may be subject to currency exchange risk as the assets of the Fund are denominated in RMB.

•Some brokers/intermediaries and CCASS participants may not be familiar with and may not be able to (i) buy units in one counter and to sell units in the other, (ii) carry out inter-counter trades of units, or (iii) trade both counters at the same time. This may inhibit or delay an investor dealing in both RMB traded and HKD traded units and the investor may only trade in one currency.

8.    Renminbi currency risk

•RMB is currently not a freely convertible currency as it is subject to foreign exchange controls and restrictions. Since the Fund is denominated in RMB, non-RMB based investors are exposed to foreign exchange risk as a result of fluctuations in the RMB exchange rate against their base currencies. There is no guarantee that the value of RMB against the investors¡¯ base currency (e.g. HKD) will not depreciate. If investors wish or intend to convert the redemption proceeds or dividends (in RMB on both HKD traded units and RMB traded units) paid by the Fund or sale proceeds (in RMB on RMB traded units) into a different currency, they are subject to the relevant foreign exchange risk and may suffer losses from such conversion as well as associated fees and charges.

9.    China market risk

• China is considered as an emerging market and investing in China market and PRC-related companies may subject the Fund to certain risks and special considerations as compared with investments in more developed economies or markets, such as greater economic, political, tax, foreign exchange, regulatory, volatility and liquidity risks. Investing in emerging markets may involve a greater risk of loss than investing in more developed markets.

• The China A-Shares market may be more volatile and unstable (e.g. due to suspension of particular stocks or government intervention) than those in the more developed markets as it is undergoing development and has lower trading volumes than those in more developed markets. A participating dealer may not be able to create and redeem the Fund¡¯s units if any Index Securities are not available.

• The PRC imposes restrictions on foreign ownerships and holdings which may have adverse impact on unitholders. If applicable to constituents of the Underlying Index, this may lead to increased tracking error, and at worst, the Fund may not be able to achieve its investment objective.

10.  Risks relating to RMB trading and settlement of units

• The units of the Fund are traded on the SEHK with dual counter arrangement (i.e. RMB traded and HKD traded units) and settled in CCASS.

• The listing, trading and settlement of the Fund¡¯s RMB traded units may not be capable of being implemented as envisaged.

• Not all custodians or stockbrokers may be ready and able to carry out trading and settlement of the RMB traded units.

•Any restrictions or delay in repatriation of the invested capital, net profits and RMB will impact on the Fund¡¯s ability to meet redemption requests from the unitholders. There is a risk that investors receive settlement in RMB on a delayed basis or may not be able to receive redemption proceeds in RMB.

•The liquidity and trading price of the RMB traded units of the Fund may be adversely affected by the limited availability of RMB outside the PRC and the restrictions on the conversion between foreign currency and RMB. This may result in the Fund trading at a significant premium/discount to its Net Asset Value.

• Repatriations in RMB by RQFIIs are currently permitted daily and are not subject to any repatriation restrictions, lock-up periods or prior approval. However, there is no assurance that such policy will not be changed. Any new restrictions on repatriation of the invested capital and net profits may impact on the Fund¡¯s ability to meet redemption requests.

• After listing, the trading price of the units on the SEHK will be subject to market forces and may trade at a substantial premium/discount to their NAV, and may deviate significantly from the NAV per unit.

11.  PRC tax risk

• Pursuant to the ¡°Notice on the issues of temporary exemption from the imposition of corporate income tax arising from gains from the transfer of equity investment assets such as PRC domestic stocks by QFII and RQFII¡± Caishui [2014] No.79, investing through the Manager¡¯s RQFII quota is exempt from PRC corporate income tax (¡°CIT¡±) on capital gains from investments in equity investment assets (including China A-Shares) effective from 17 November 2014. The Manager has determined, having taken and considered independent professional tax advice and acting in accordance with such advice, that no PRC CIT WIT provision will be made on the gross realized and unrealized capital gains derived from investments in equity investment assets (including China A-Shares).

•The tax exemption granted under Caishui [2014] No.79 is only temporary. It is possible that the applicable tax law, regulations and practice may change from time to time and taxes being applied retrospectively. As such, there is a risk that the Fund will incur tax liabilities, which may potentially cause substantial loss to the Fund and the Net Asset Value of the Fund may require further adjustment to take into account any retrospective application of new tax regulations and development, including change in interpretation of the relevant regulations by the PRC tax authority.

• In the event that tax is levied by the PRC tax authorities, the Net Asset Value of the Fund may be lowered, as the Fund will ultimately have to bear the full amount of tax liabilities. In this case, the tax liabilities will only impact Units in issue at the relevant time, and the then existing Unitholders and subsequent Unitholders will be disadvantaged as such Unitholders will bear, through the Fund, a disproportionately higher amount of tax liabilities as compared to that borne at the time of investment in the Fund.

12.  Risks relating to the differences between the Hong Kong and PRC stock markets

• The trading days or hours of the PRC and Hong Kong stock markets are not exactly the same. There may be occasions when China A-Share markets are open while SEHK is closed and the Fund is not traded. As such, the value of the Index Securities in the Fund¡¯s portfolio may change but investors are not able to purchase or sell the Fund¡¯s units.

• On the other hand, if a PRC stock exchange is closed while the SEHK is open, the market prices of Index Securities may not be available while the Fund is still trading, which may affect the level of premium or discount of the trading price of the Fund to its NAV.

• While China A-Shares are subject to trading bands which restrict increases and decreases in the trading price, trading of the Fund listed on the SEHK is not subject to such restrictions. The dealing suspension of the Index Security will render it impossible for the Fund to acquire the Index Security or liquidate positions to reflect creation/ redemption of the units. This may result in higher tracking error and may expose the Fund to losses. Units of the Fund may also be traded at a premium or discount to its NAV.

13.  Custody risk and PRC brokerage risk

• In the event of any default or bankruptcy of the Custodian (directly or through its delegate, including the RQFII Custodian) or the brokers appointed by the RQFII Holder in the PRC (¡°PRC Brokers¡±), the Fund may encounter delays in recovering its assets and may be adversely affected in the execution of any transaction. As a result, the net asset value of the Fund may also be adversely affected.

• Only one PRC Broker can be appointed in respect of each stock exchange in the PRC to execute transactions (i.e. trading of China A-Shares) for the Fund in the PRC. As such the Fund will rely on only one PRC Broker for each exchange, which may be the same PRC Broker. If the Manager is unable to use its designated PRC Broker in the PRC, the operation of the Fund will be adversely affected and may cause the Fund¡¯s units to trade at a premium or discount to its NAV or the Fund may not be able to track the Underlying Index.

14.  Risks of government intervention and restriction

• Governments and regulators may intervene in the economy and financial markets, such as by the imposition of trading restrictions, a ban on ¡°naked¡± short selling or the suspension of short selling for certain stocks. Further, intervention or restrictions by governments and regulators may affect the trading of China A-Shares or units of the Fund. This may affect the operation and market making activities of the Fund. This may also lead to an increased tracking error for the Fund. Such interventions may have a negative impact on the market sentiment which may in turn affect the performance of the Underlying Index and the Fund. In worst case scenario, the investment objective of the Fund cannot be achieved.

15.  Risks relating to limited operating history and experience of Manager and reliance on the Manager's parent company

•The RQFII exchange traded funds with its cross-border nature are relatively new in the market. Whilst the Manager has experience in managing and operating RQFII exchange traded fund, such experience is limited. As such, the Fund is subject to the risks relating to the limited operating history and experience of the Manager in managing and operating RQFII physical China A-Shares exchange traded fund. The Manager may substantially tap into its PRC parent company¡¯s relevant infrastructure and expertise to support its operation of the Fund in Hong Kong. While the PRC parent company of the Manager has sufficient experience and expertise in managing and operating physical China A-Shares exchange traded funds listed and traded in China, there is no assurance that the Fund will be operated as envisaged. Any disruption in the assistance from the Manager¡¯s parent company may adversely affect the operations of the Fund.

16.  Reliance on market makers risk

• Units of the Fund on the RMB counter are traded and settled in RMB. There may be less interest by potential market makers making a market in units denominated and traded in RMB. Any disruption to the availability of RMB may adversely affect the capability of market makers in providing liquidity for the units.

•Although it is a requirement that the Manager ensures that there will always be at least one market maker to the Fund and at least one market maker for each counter, it is possible that no market maker is appointed. Further, a market maker may cease to act as a market maker for the Fund in accordance with the terms of its agreement including upon giving prior written notice. The termination notice period for at least one market maker for the Fund (in respect of both the RMB and HKD counters) will be not less than ninety (90) days.

•Where there is only one SEHK market maker to each counter, it may not be practicable for the Fund to remove the only market maker even if it is not effective. It is possible that there is only one SEHK market maker to a Fund or to a counter of a Fund or the Manager may not be able to engage a substitute market maker within the termination notice period of a market maker. The liquidity of the Fund may be adversely affected if there is no market maker for the RMB or HKD traded units of the Fund or if the market making activities are not effective.

17.  Tracking error risk

• Due to fees and expenses of the Fund, liquidity of the market, imperfect correlation of returns between the Fund¡¯s assets and the Index Securities constituting the Underlying Index and other factors, the Fund¡¯s returns may deviate from that of the Underlying Index.

18.  Trading risk

• Generally, retail investors can only buy or sell units of the Fund on the SEHK. The trading price of the units on the SEHK is driven by market factors such as the demand and supply of the units.

• Disruptions to creations and redemptions may result in the Fund trading at a significant premium/discount to its NAV. Investors may therefore buy the Fund¡¯s units at a price higher than the NAV or receive less than the NAV when selling the units.

• Trading of units may involve various types of costs that apply to all securities transactions such as trading fees and brokerage commissions. Investors on the secondary market will also incur the cost of the trading spread, being the difference between what investors are willing to pay for the units (bid price) and the price at which they are willing to sell units (ask price).

19.  Risks of early termination

• The Manager or the Trustee may terminate the Trust or the Fund under certain circumstances, for examples, in respect of the Trust, where the size of the Trust falls below RMB 10 million or an equivalent amount in any other currency and in respect of the Fund where the size of the Fund falls below RMB50 million or an equivalent amount in any other currency or where the Underlying Index is no longer available for benchmarking. The Fund may be terminated on the ground of small fund size. Investors should refer to section ¡°14.5 Termination of the Trust or a Sub-Fund¡± in Part 1 of the Prospectus for further details.

• The licence agreement between the Manager and CSI to use the Underlying Index is for an initial term of 3 years commencing from the date of the agreement (i.e. 20 February 2014), and thereafter automatically renewed for successive 2-year period unless terminated pursuant to the agreement. There is no guarantee that the licence agreement will be perpetually renewed.

• The Fund may be terminated if the Underlying Index is discontinued and/or the index licence agreement is terminated and the Manager is unable to identify or agree with any index provider terms for the use of a suitable replacement index.

20.  Passive investments risk

• The Fund is not ¡°actively managed¡± and the Manager does not attempt to select securities individually or to take defensive positions in declining markets.

•Consequently, falls in the Underlying Index are expected to result in a corresponding fall in the value of the Fund.

Before you continue, please read this important information carefully. By clicking the "AGREE" button, you consent to be bound by all the terms set out herein. If you do not agree with any of these terms, please click "DO NOT AGREE" button and leave this website.

You must read the following Important Notes and the Disclaimer before proceeding

IMPORTANT NOTES

This website has been prepared by China Universal Asset Management (Hong Kong) Company Limited ("China Universal (HK)") for information purposes only. The information contained in this website is not intended for use by persons located in or residing in jurisdiction that restrict the distribution of such information by China Universal (HK) and its parent companies, subsidiaries and/or associates (collectively the "China Universal Group"). The information contained in this website does not constitute a distribution, an offer to buy or the solicitation of any offer to buy or sell any securities in any jurisdiction where such a distribution or offer would be illegal. Person accessing this website should inform themselves and observe any relevant restrictions. Information contained in this website has not been reviewed by Securities and Futures Commission of Hong Kong ("SFC").

None of the information contained in this website constitute an invitation or solicitation to invest in any shares or units of the Fund, nor does it constitute any investment advice or recommendation to acquire or dispose of any investment or to engage in any transactions. Before acting on any information in this website, you should consider whether any investment, security or strategy is suitable for your particular circumstance and, if necessary, seek independent professional advice.

Investment involves risks. The price of units or shares of the Fund may go up as well as down. The Manager does not guarantee that the Fund is profitable or able to achieve minimum return. Past performance of the Fund does not represent its future performance and the performance of the other funds managed by the Manager is no guarantee of the performance of the Fund. The value of the Fund can be extremely volatile and could go down substantially within a short period of time. It is possible that the entire value of your investment could be lost. Before making any investment decisions, investors should carefully read the Fund¡¯s offering documents, including Explanatory Memorandum/Prospectus, Hong Kong Supplement (if applicable) and Product Key Facts Statement for details and risk factors of the Fund, particularly the risk of investment in emerging markets.

Important Risk Disclosure

CUAM Select US Dollar Bond Fund (the "Fund") seeks to provide investors with a stable and consistent investment return over medium to long term by investing primarily in US Dollar denominated debt securities instruments.

1.Investment risk

•The instruments invested by the Fund may fall in value due to any of the key risk factors below and therefore your investment in the Fund may suffer losses. There is no guarantee of dividend or distribution payments during the period an investor holds units in the Fund. There is no guarantee of the repayment of principal.

2.Concentration risk

•The Fund may invest only in a specific country/region. The value of the Fund is likely to be more volatile than that of a broad-based fund as they are more susceptible to fluctuations in value resulting from adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the respective countries/regions.

3.Emerging market risk

•The Fund may invest in emerging markets which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.

4.Eurozone risk

•In light of ongoing concerns on the sovereign debt risk of certain countries within the Eurozone, the Fund¡¯s investments in the region may be subject to higher volatility, liquidity, currency and default risks. Any adverse events, such as credit downgrade of a sovereign or exit of EU members from the Eurozone, may have a negative impact on the value of the Fund.

5.Risks relating to debt securities

Risk of investing in asset-backed securities, mortgage-backed securities and asset- backed commercial papers

•The Fund may invest up to 100% in asset-backed securities, mortgage-backed securities and asset-backed commercial papers which may be highly illiquid and prone to substantial price volatility. The liquidity, credit and interest rate risks of these instruments can be higher than a regular bond or debt instrument. They are often exposed to extension and prepayment risk and risks that the payment obligations relating to the underlying assets are not met, which may adversely impact the returns of the securities.

Interest rates risk

•Investment in the Fund is subject to interest rate risk. Generally, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise.

Credit risk of issuers or counterparties

•The Fund is exposed to the credit/insolvency/default risk of issuers of the debt securities it invests in.

Risks relating to credit rating

•Credit ratings assigned by a rating agency are subject to limitations and are not absolute standards of credit quality and do not evaluate market risks and do not guarantee the creditworthiness of the security and/or issuer at all times.

Downgrading risk

•Investment grade securities or the credit rating of the issuer may be subject to the risk of being downgraded to below investment grade or unrated . In the event of such downgrading, the value of the Fund may be adversely affected. The Manager may or may not be able to dispose of the debt instruments that are being downgraded.

Below investment grade and unrated securities risk

•The Fund may invest up to 100% of its net asset value in securities which are below investment grade or which are unrated. Such securities would generally be considered to have a higher degree of counterparty risk, credit risk, volatility risk, liquidity risk and greater risk of loss of principal and interest than higher rated, lower yielding securities.

Sovereign debt risk

•The Fund¡¯s investment in 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 Fund to participate in restructuring such debts. The Fund may suffer significant losses when there is a default of sovereign debt issuers.

Liquidity and volatility risk

•Some of the debt securities in which a Fund invests may be illiquid and more volatile, and may be difficult or impossible to sell. The prices of securities traded in emerging markets may be subject to fluctuations. The bid and offer spreads of the price of such securities may be large and the Fund may incur significant trading costs.

Valuation risk

•Valuation of the Fund¡¯s investment may involve uncertainties and judgmental determinations, and independent pricing information may not at all times be available. If such valuations should prove to be incorrect, the net asset value of the Fund may be adversely affected.

6.Risk relating to convertible bonds

•This Fund may invest up to 100% in convertible bonds, which shares similar characteristics and nature of debt and equity, permitting holders to convert into shares in the company issuing the bond at a specific future date. Convertible bonds will be exposed to equity movement and greater volatility than straight bond investments. Investment in convertible bonds are subject to the same credit, interest rate, liquidity and prepayment risks associated with comparable straight bond investments and market risks with both debt securities and equity securities and any risk specific to convertible bonds.

7.Risk associated with investment in instruments with non-viability / loss absorption convertible features

Trigger level risk / conversion risk

•Trigger levels differ and determine exposure to conversion risk. It might be difficult for the Manager to anticipate the triggering events that would require the conversion. These instruments may be converted into shares potentially at a discounted price and the principal amount invested may be lost. In case of conversion, the Manager might be forced to sell these new equity shares and such forced sale may result in the Fund experiencing losses.

Coupon cancellation risk

•Coupon payments are entirely discretionary and may be cancelled by the issuer. As a result, these instruments may be volatile and their price may decline rapidly in the event that coupon payments are suspended.

Sector concentration risk

•These instruments are issued by banking and insurance institutions. The performance of the Fund may depend to a greater extent on the overall condition of the financial services industry than for funds following a more diversified strategy.

Novelty and untested nature

•The structure of these instruments is innovative yet untested. In a stressed environment, when the underlying features of these instruments will be put to the test, it is uncertain how they will perform.

8.RMB currency and conversion risks and RMB classes related risks

•RMB is currently not freely convertible and is subject to exchange controls and restrictions.Non-RMB based 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 RMB could adversely affect the value of investor¡¯s investment in the Fund. Although offshore RMB (CNH) and onshore RMB (CNY) are the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors. Under exceptional circumstances, payment of redemptions and/or dividend payment in RMB may be delayed due to the exchange controls and restrictions applicable to RMB.

9.Risk associated with distributions out of / effectively out of capital

•Payment of distributions out of the Fund¡¯s capital and/or effectively out of the Fund¡¯s capital amounts to a return or withdrawal of part of a Unitholder¡¯s original investment or from any capital gains attributable to that original investment. Any such distributions will result in an immediate reduction of the net asset value per unit.

10.Currency risk

•The Fund may invest in part in assets quoted in currencies other than its base currency. Also, a class of units may be designated in a currency other than the base currency of the Fund. The performance and the net asset value of the Fund will therefore be affected unfavourably by movements in the exchange rate between the currencies in which the assets are held and the base currency of the Fund and by changes in exchange rate controls.

All information contained in this website is published to the best of the knowledge and belief of China Universal Group to be accurate at the time it was posted. However, no representation or warranty, expressed or implied is made by China Universal Group as to its accuracy or completeness of the information or data provided in this website. China Universal Group, its directors, officers or employees accept no liability for any errors or omissions relating to information available in this website, and will not be liable for any damages or losses arising out of or in any way connected with (i) the use of the information provided in this website and (ii) any interruption or failure in system operation, delay in data transmission, computer virus or line or system failure.China Universal Group reserves the right to change, modify, add or delete, any content and the terms & conditions of use of this website without notice. Users are advised to periodically review the contents of this website to be familiar with any modifications.

All copyright, trademarks and similar rights in this website and the information contained herein are owned by or licensed to China Universal Group. Unless prior written consent is obtained from China Universal Group, information in or any parts of this website cannot be reproduced, distributed or published by any institutions or individuals.

Before you continue, please read this important information carefully. By clicking the "AGREE" button, you consent to be bound by all the terms set out herein. If you do not agree with any of these terms, please click "DO NOT AGREE" button and leave this website.

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