Terms used in this Appendix shall, unless otherwise defined herein or unless the context otherwise requires, have the same meaning as provided for in the Explanatory Memorandum.
“Amortisation Period” the first five Accounting Periods from the date of launch of the Sub-Fund or such other period as the Manager after consultation with the Auditors shall determine
“Base Currency” and
“Class Currency”
USD
“Class” Class A
“Initial Offer Period” the period commencing 9:00 a.m. (Hong Kong time) on 30 November 2020 to 5:00 p.m. (Hong Kong time) on 30 November 2020 (or such other dates as the Manager may determine); if the Sub-Fund is not subscribed into during the aforementioned period, the close of the Initial Offer Period will be extended until such time as an investor subscribes into the Sub-Fund
“Payment Period” no more than two Business Days after the relevant Subscription Day on which the relevant Units are issued
“Redemption Day” each Business Day or such other day or days as the Manager and the Trustee may from time to time determine, either generally or in respect of a particular Class or Classes of Units, for effecting any requests for redemption of Units in the Sub-Fund or the relevant Class or Classes in the Sub-Fund
“Redemption Deadline” 5:00 p.m. (Hong Kong time) on the relevant Redemption Day by which a redemption request in respect of the Sub-Fund or a Class of Units must be received or such other time or on such other Business Day or day as the Manager and the Trustee may from time to time determine generally or in relation to any particular jurisdiction in which Units of the Sub-Fund or the relevant Class may from time to time be sold
“Sub-Fund” AIA Growth Fund
“Subscription Day” each Business Day or such other day or days as the Manager and the Trustee may from time to time determine, either generally or in respect of a particular Class or Classes of Units, for effecting any requests for subscription of Units in the Sub-Fund or the relevant Class or Classes in the Sub-Fund
“Subscription Deadline” 5:00 p.m. (Hong Kong time) on the relevant Subscription Day by which
Units must be received or such other time or on such other Business Day or day as the Manager and the Trustee may from time to time determine generally or in relation to any particular jurisdiction in which Units of the Sub-Fund or the relevant Class may from time to time be sold
“Valuation Day” each Business Day on which the Net Asset Value of the Sub-Fund and/or the Net Asset Value of a Unit or a Class of Unit of the Sub-Fund falls to be calculated and in relation to each Subscription Day or Redemption Day (as the case may be) of any Class or Classes of Units means either such Subscription Day or Redemption Day (as the case may be) or such other Business Day or day as the Manager, after consultation with the Trustee, may from time to time determine, either generally or in relation to a particular Class of Units
INVESTMENT CONSIDERATIONS
Investment Objective The Sub-Fund seeks to achieve long-term capital appreciation and adopts a relatively aggressive approach in relation to the allocation to equities and bonds with the aim of achieving capital growth.
Investment Policies The Sub-Fund seeks to achieve its investment objective by investing primarily (i.e. at least 70% of its latest available Net Asset Value) in other collective investment schemes (including exchange traded funds) (“Underlying Funds”). The Sub-Fund will only invest in Underlying Funds that are authorised by the SFC or in eligible schemes domiciled in Luxembourg, Ireland, the United Kingdom and/or such other jurisdiction as may be specified as a recognised jurisdiction for eligible schemes (whether authorised by the SFC or not), except that not more than 10% of the Sub-Fund’s latest available Net Asset Value may be invested in non-eligible schemes not authorised by the SFC. The Sub-Fund may also invest in Underlying Funds that are managed by the Manager or its connected persons.
Through investments in the Underlying Funds, the Sub-Fund gains exposure to equities and debt securities worldwide. The underlying asset classes of the Underlying Funds include equities, equity related securities, fixed income securities (including corporate bonds, government bonds, emerging markets debt instruments, collateralised loan obligations, asset backed securities, commercial mortgage backed securities, taxable municipal bonds, US government or agency obligations, as well as commercial paper), money market instruments, derivatives and/or cash.
For the remainder of the Sub-Fund’s assets, not more than 30% of its latest available Net Asset Value may be invested directly in equities, debt securities, derivatives, money market instruments and/or cash or cash equivalents. Under exceptional circumstances (e.g. market crash or major crisis), the Sub-Fund may temporarily invest substantially (i.e. up to 100%) in cash and/or cash equivalents for cash flow management.
The Sub-Fund may, either directly or through its investments in the Underlying Funds, invest in securities issued by companies of any market size, of any industry or sector (as the case may be), in any region and/or country and in such proportion and in such currency denomination as the Manager deems appropriate, and it is possible that exposure to a certain
Fund’s latest available Net Asset Value. However, it is not the Manager’s pre-determined strategy to invest 30% or more of the Sub-Fund’s latest available Net Asset Value in any specific market, region, section and/or industry. There is also no credit rating requirement in respect of the debt securities in which the Sub-Fund may invest (whether directly or indirectly) and the Sub-Fund may have exposure to unrated securities.
The following is an indicative asset allocation of the Sub-Fund based on asset classes expected to be invested by the Underlying Funds and any direct investments made by the Sub-Fund:
Indicative percentage of the Sub-Fund’s latest available Net Asset Value
Equity and equity related securities 80% to 100%
Debt securities Up to 20%
The asset allocation of the Sub-Fund will change due to market conditions (e.g. different relative price movement among asset classes) and according to the Manager’s strategic and tactical asset allocation views, taking into consideration factors such as liquidity, costs, timing of execution, economic fundamentals, relative attractiveness of individual securities and technical trends. However, it is not expected that the Sub-Fund’s investment portfolio will deviate from the indicative asset allocation under normal market conditions (except during the process of termination).
Investment and
Borrowing Restrictions
The Sub-Fund is subject to the investment and borrowing restrictions as set out in the Explanatory Memorandum under the heading “Investment and Borrowing Restrictions”.
For the purposes of this Sub-Fund, Qualified Exchange Traded Funds will be considered and treated as collective investment schemes and will be subject to the relevant restrictions set out in the Explanatory Memorandum under the heading “Investment and Borrowing Restrictions”.
In the event that the Sub-Fund invests more than 30% of its latest available Net Asset Value in any single Underlying Fund, the Manager will ensure that such Underlying Fund is authorised by the SFC and the name and key investment information of such Underlying Fund are disclosed in this Appendix.
Use of Derivatives The Sub-Fund may acquire financial derivative instruments for hedging and investment purposes. The Sub-Fund’s net derivative exposure may be up to 50% of the Sub-Fund’s latest available Net Asset Value.
Separately, the Underlying Funds in which the Sub-Fund invests may use financial derivative instruments extensively for investment (i.e. non-hedging) purposes. Currently, it is not the intention of the Manager to invest in other SFC-authorised Underlying Funds which has a net derivative exposure of more than 50% of such Underlying Fund’s latest available net asset value.
Securities Financing The Manager currently does not intend to enter into any securities