XXXXX | Corporate Hybrid Bond Fund

Important Notes

• The Fund seeks to achieve an attractive level of total return (income plus capital appreciation) by investing primarily in investment grade and below investment grade hybrid bonds issued by corporate issuers. Corporate hybrid bonds are highly structured instruments issued by non-financial companies that combine both equity and fixed income features.
• Corporate hybrid bonds involve a range of special risks, which includes: Payment on coupons can be deferred at the discretion of the issuing company without triggering a default so the fund may be subject to coupon deferral risk. Corporate hybrid bonds can be redeemed on specified dates at the option of the issuer, and investors are exposed to potential non-call risk. Most corporate hybrid bonds allow the issuer to redeem the security prior to maturity under specified circumstances so the fund may be subject to early redemption risk. In the event of bankruptcy, the recovery rate for corporate hybrid bonds will be significantly lower than that for senior bonds and could cause the Fund to lose all or a portion of its original investment.
• The Fund may invest in lower rated (i.e. below investment grade) and/or unrated debt securities. Hence, it maybe subject to lower rated securities risk and volatility risk due to fluctuations in prices of such securities. The Fund may invest in fixed income securities, including corporate hybrid bonds and is therefore exposed to credit risk, fixed income securities and downgrade risk, credit rating risk. The Fund may be unable to sell an investment which affect its ability to meet redemption requests upon demand in extreme market conditions and hence maybe subject to liquidity risk. The Fund may at times hold large positions in relatively limited number of industries or sectors and hence subject to concentration risk. The Fund may be denominated in currencies other than the base currency of the Fund and therefore may be subject to currency risk and currency hedging risk.
• The Fund may use financial derivative instruments (“FDIs”) for hedging, efficient portfolio management and/or investment purposes and therefore may be subject to higher counterparty/credit, liquidity, valuation, volatility, valuation and over-the-counter transaction risks. The Fund may have a net derivative exposure of up to 50% of its NAV and may result in a significant loss of the Fund due to higher leverage risk.
• In respect of the distributing shares, the Fund aims to pay dividend on a monthly basis. However, the distribution rate is not guaranteed. The Fund may at its discretion pay dividends out of the capital of the Fund. Dividends paid out of capital amount to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Such dividends may result in an immediate decrease in the net asset value of the relevant shares.
• Investors should not solely rely on this document to make any investment decision. Please refer to the Prospectus and Key Fact Statement for details including the risk factors before making any investment decision.