XXXXX | EMD Corporate – Social and Environmental Transition Fund
Important Notes
- The Fund invests primarily in debt securities and money market instruments issued by corporate issuers which have their head office or exercise an overriding part of their economic activity in emerging market countries, which may be denominated in hard currency or the currencies of such emerging market countries.
- The Fund is subject to emerging market risk. Emerging markets may be subject to additional risks due to more uncertainties relating to their social, economic and political factors. Negative factors in the development of emerging markets may affect the value of the underlying securities.
- The Fund may invest in debt securities that are below investment grade, and therefore may be subject to higher liquidity, credit, default and interest rate risks. The Fund may also invest in debt securities issued or guaranteed by government/sovereign, and therefore, may be subject to sovereign debt risk and risks derived from political, social and economic changes of the government/sovereign. The Fund is also subject to currency and currency hedging risks.
- The Fund may use financial derivative instruments extensively for investment purposes, and therefore may be subject to higher counterparty, liquidity, valuation, volatility and over-the-counter transaction risks. The Fund may have a net leveraged exposure of over 100% of its net asset value under the commitment approach and may result in a significant loss of the Fund.
- 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 for details including the risk factors before making any investment decision.
- Investors should note that the target return is not guaranteed over a market cycle, a 12 month or any period and the Sub-Fund’s capital is at risk. Investors should also note that, over the course of a market cycle, there may be significant periods of time during which the performance of the Sub-Fund will deviate from the targeted return and the Sub-Fund may experience periods of negative return.
Why Invest
Seeks to outperform the benchmark over a market cycle (typically 3 years) by investing primarily in corporate debt issued in emerging market countries, and/or countries which are part of the Benchmark, that comply with the Sustainable Criteria
Access the Rapidly Growing Opportunity in Emerging Market Corporate Credit
A portfolio of EM Corporate bonds that evaluates environmental and social characteristics of issuers, targeting >30% carbon intensity reduction and a strong sustainability profile1 vs. the market2
A Robust, Active Research Process
Combines bottom-up analysis with proprietary coverage of 90+ EM countries and integration of ESG factors into the fund’s fundamental investment analysis with a top-down asset allocation framework
Experienced, Stable and Well-Resourced Team
Managed by a well-established investment team with a long-term track record in managing EMD strategies and a multi-site set-up to ensure local perspective is incorporated
Fund Facts
Why Invest
Seeks to achieve a target average return of 1-2% over the benchmark before fees over a market cycle (typically 3 years) and to have a positive social and environmental impact by investing primarily in debt issued in Emerging Market Countries (as defined in the Prospectus).
Access the Rapidly Growing Opportunity in Emerging Market Corporate Credit
A portfolio of EM Corporate bonds that evaluates environmental and social characteristics of issuers, targeting >30% carbon intensity reduction and a strong sustainability profile1 vs. the market 2
A Robust, Active Research Process
Combines bottom-up analysis with proprietary country and integration of ESG factors into the fund’s fundamental investment analysis with a top-down asset allocation framework
Experienced, Stable and Well-Resourced Team
Managed by a well-established investment team with a long-term track record in managing EMD strategies and a multi-site set-up to ensure local perspective is incorporated