GTJAI - Member of FTSE ESG Index - Investment Strategy & Risk factors

Investment Strategy & Risk factors

Investment Strategy

•The Fund may invest in listed companies that derive a significant portion of their revenues from goods
produced or sold, investments made or services performed in the Greater China region, which includes
the People's Republic of China, the Hong Kong & Macau Special Administrative Regions and Taiwan.
The Fund has not invested in A Shares and will not invest in A Shares until the Manager is able to invest

in A Shares in accordance with applicable regulations in the PRC. The Manager will give prior notice to

Unitholders when the Manager is able to invest in such shares in accordance with applicable regulations
in the PRC.

•The Fund will invest at least 70% of its non-cash assets in Greater China-related financial instruments and
companies.

•The Fund will be managed based on a value-oriented investment strategy.

Risk factors
•Investment Risk The Sub-Fund's investment portfolio may fall in value due to any of the key risk factors listed below and therefore your investment in the Sub-Fund may suffer losses. There is no guarantee of the repayment of principal.
•Equity Market Risk The Sub-Fund's investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.
•Risk associated with small-capitalisation / mid-capitalisation companies The stock of small-capitalisation/mid-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general.
•PRC Market Risk Many of the economic reforms in the PRC are unprecedented or experimental and are subject to adjustment and modification, and such adjustment and modification may not always have a positive effect on foreign investment in joint stock limited companies in the PRC or in H-shares. The PRC government's control of currency conversion and future movements in exchange rates may adversely affect the operations and financial results of the companies in which the Sub-Fund may invest.
•Emerging Markets Risk The Sub-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, regulatory risk and the likelihood of a high degree of volatility. Investment in such markets will be subject to risks such as market suspension, restrictions on foreign investment and control on repatriation of capital.
•Concentration Risk The Sub-Fund’s investments are concentrated in the Greater China region. The value of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio of investments. The value of the Sub- Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the Greater China region.
•Counterparty and Settlement Considerations The Sub-Fund will be exposed to credit risk on the counterparties with which it trades and may also bear the risk of settlement default.
•Foreign Exchange/Currency Risk The Sub-Fund may invest its assets in securities denominated in a wide range of currencies, some of which may be denominated in currencies other than the Sub-Fund's base currency and/or may not be freely convertible. The Net Asset Value of the investments of the Sub-Fund as expressed in HKD will fluctuate in accordance with the changes in the foreign exchange rate between HKD and the currencies in which the Sub-Fund's investments are denominated. The Sub-Fund may therefore be exposed to a foreign exchange/ currency risk. The Net Asset Value of the Sub-Fund may be affected unfavourably by fluctuations in the exchange rates between these currencies and HKD and by changes in exchange rate controls. It may not be possible or practicable to hedge against the consequent foreign exchange/currency risk exposure.
•Risks Associated with Distribution out of Capital or Effectively out of Capital Payment of distributions out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor's original investment or from any capital gains attributable to that original investment and may result in an immediate reduction of the Net Asset Value per Unit of the Sub-Fund.
•Risks Associated with Derivative Contracts The Sub-Fund may use derivative contracts for hedging purposes. Risks associated with derivative contracts include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The leverage element/component of a derivative contract can result in a loss significantly greater than the amount invested in the derivative contract by the Sub-Fund. Exposure to derivative contracts may lead to a high risk of significant loss by the Sub-Fund. While the hedging strategy adopted by the Manager is intended to protect investors against a decline in the value of the Sub-Fund's assets, there is no guarantee that the hedging strategy will be effective and investors may still be subject to the risk of suffering losses.

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	Customer : customer.service@gtjas.com.hk
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