Sustainable, Responsible &/or ESG Policy:

Investment Objective
Long term capital growth by investing in corporate debt securities of Global Emerging Markets (as defined below) in accordance with environmental and social characteristics. 

In this context, the Sub-Fund invests in accordance with the Socially Responsible Investment (Proprietary Scoring) Strategy (SRI (Proprietary Scoring) Strategy). 

For the avoidance of doubt, the Sub-Fund does not constitute as a green/ESG fund pursuant to the Circular to management companies of SFC-authorised unit trusts and mutual funds issued by the Securities and Futures Commission on 29 June 2021 (as amended from time to time). 
“Global Emerging Markets” are (a) countries which are not classified by the World Bank as a high-income economy (high gross national income per capita) or (b) countries that are constituents of the J.P. MORGAN ESG Corporate Emerging Market Bond (CEMBI) Broad Diversified.

Investment Strategy
At least 70% of Sub-Fund assets are invested in debt securities of corporate issuers with a registered office in the Global Emerging Markets. Up to 30% of Sub-Fund assets may be invested in debt securities other than those described in the above investment objective.

Up to 100% of Sub-Fund assets may be invested in debt securities which, at the time of acquisition, are rated BB+ or below (by Standard & Poor’s and Fitch) or Ba1 or below (by Moody’s) or equivalent by other rating agencies including those that at the time of acquisition, are rated CC or lower (including up to 10% of Sub-Fund assets in defaulted securities) (by Standard and Poor’s or equivalent by other rating  agencies), or if unrated, as determined by the Investment Managers to be of comparable quality. Subject to the aforesaid exposure limit,  at least 50% of Sub-Fund assets are invested in debt securities with a rating of at least BB or better (by Standard & Poor’s and Fitch) or at least Ba2 or better (by Moody’s).

Up to 15% of Sub-Fund assets may be invested either directly (via the qualified foreign institutional investor (“FII”) and/or the China Interbank Bond Market (CIBM) initiative and/or Bond Connect) or indirectly via other means as may be permitted by the relevant regulations from time to time in the PRC bond markets.

Non-USD currency exposure is limited to 20% of Sub-Fund assets.

Duration of the assets of the Sub-Fund is between 1 and 10 years.

Up to 20% of the Sub-Fund’s assets may be invested in mortgage-backed securities and asset-backed securities.

The Sub-Fund may invest less than 30% of its assets in instruments with loss-absorption features (including contingent convertible bonds, senior non-preferred debt securities, instruments issued under the resolution regime for financial institutions and other capital instruments issued by banks or other financial institutions), of which a maximum of 10% of the Sub-Fund’s assets may be invested in contingent convertible bonds. These instruments may be subject to contingent write-down or contingent conversion to ordinary shares on the occurrence of trigger events. 

Up to 100% of Sub-Fund assets may be invested in money market instruments and/or held in time deposits and/or (up to 20% of Sub Fund assets) in deposits at sight and/or (up to 10% of Sub-Fund assets) in money market funds on a temporary basis for liquidity management and/or defensive purpose and/or any other exceptional circumstances (eg. market crash or major crisis), and if the Investment Managers consider it in the best interest of the Sub-Fund.

With the adoption of SRI (Proprietary Scoring) Strategy, the Sub-Fund takes into account sustainability factors based on United Nations Global Compact Principles and follows the principles of “socially responsible investing” (“SRI”). The responsible portion aspect includes engagement and proxy voting. The sustainable portion aspect includes: (i) Environmental characteristics; (ii) Social characteristics; (iii) Human rights characteristics; (iv) Governance characteristics; and (v) Business behavior. These domains are analyzed by the Investment Managers in order to assess how sustainable development is taken into account in the strategy of an issuer. At least 80% of Sub-Fund’s portfolio, apart from non-rated derivatives and instruments that are non-rated by nature (e.g. cash and deposits), shall be evaluated by an SRI Rating (i.e. an internal rating based on external research data and internal analyses of sustainability factors including environmental, social and employee matters, respect for human rights, anti-corruption, anti-bribery matters, and any other governance matters) which is used to apply negative or positive screens on the Sub-Fund’s investment universe by excluding or including issuers whose respective SRI Ratings are below or above prescribed threshold as determined by the Investment Managers from time to time.

The Sub-Fund is managed in reference to J.P. MORGAN ESG Corporate Emerging Market Bond (CEMBI) Broad Diversified Total Return (“Benchmark Index”) where the Benchmark Index plays a role (i) as reference for formulating the Sub-Fund’s portfolio composition, and/or (ii) for measurement and comparison of the Sub-Fund’s performance. However, due to the active management approach adopted by the Investment Managers, the performance of the Sub-Fund and the performance of the Benchmark Index may differ. The extent to which the Investment Managers may deviate from the Benchmark Index is material.

(Source: Product Key Facts document, as at May 2026)

SDR Labelling:

Not eligible to use label (out of scope)