E Fund Management (Hong Kong) Co., Limited

E Fund (HK) Asia High Yield Bond Fund

Important Notes Fund Information Portfolio Allocation Performance Distribution History Announcements Notices Documents Distributors

Investment Objectives and Strategy

Objective

The investment objective of the Sub-Fund is to achieve long term capital growth through investing globally in a portfolio consisting primarily of high yield debt securities issued by or fully guaranteed by corporations with an Asia focus, which aim to generate a steady flow of income in addition to capital appreciation for the Sub-Fund, including debt securities issued in emerging markets. There can be no assurance that the Sub-Fund will achieve its investment objective.

Investment Strategy

Indicative asset allocation

The indicative asset allocation of the Sub-Fund is as follows:

At least 70% of the net asset value of the Sub-Fund (“NAV”)

High yield debt securities (including convertible bonds), which may be USD, EUR or HKD denominated or offshore RMB denominated (“Dim Sum” bonds), issued by or fully guaranteed by listed or unlisted corporations which have their main operations (or majority of assets) in or have their majority of their income derived from Asia.

Up to 100% of the NAV may be invested in debt securities which are unrated or rated below investment grade.

Such high yield debt securities may be issued or traded in developed markets or emerging markets.

Up to 30% of the NAV in aggregate

•Onshore China exposure (up to 20% of the NAV)

•Investment grade debt securities

•Equity securities

•Other collective investment schemes and money market funds

•Financial derivative instruments (“FDIs”) for investment purpose

Principal investments

The Sub-Fund will invest 70% to 100% of its NAV in a portfolio of high yield debt securities, which may be USD, EUR or HKD denominated or offshore RMB denominated (“Dim Sum” bonds, i.e. bonds issued outside China but denominated in RMB), issued by or fully guaranteed by listed or unlisted corporations which have their main operations (or majority of assets) in or have their majority of their income derived from Asia; and where the Manager believes such debt securities are being traded at significant discount to their underlying intrinsic values. For the avoidance of doubt, the issuers of the debt securities who have a majority of their income derived from Asia as mentioned above may be based in or outside Asia.

Up to 100% of the NAV may be invested in debt securities which are unrated or rated below investment grade by Fitch or Moody’s or Standard and Poor’s, including (not limited to) listed and unlisted bonds, government bonds, convertible

and non-convertible bonds, fixed and floating rate bonds or other similar securities. A long-term debt security is considered investment grade if its credit rating is BBB- or higher by Standard & Poor's and Fitch Ratings or Baa3 or higher by Moody's or equivalent rating as rated by an international credit rating agency. A short-term debt security is considered investment grade if its credit rating is A-3 or higher by Standard & Poor’s or F3 or higher by Fitch Ratings or P-3 or higher by Moody’s or equivalent rating as rated by an international credit rating agency. For the purpose of the Sub-Fund, “unrated” refers to where neither the instrument itself nor its issuer has a credit rating assigned by international credit rating agencies. For a debt security which itself does not have a credit rating, the Manager will assess the debt security by reference to the credit rating of the issuer, the guarantor or the keepwell provider.

High yield debt securities may be issued or traded in developed markets or emerging markets. There is no set proportion between investments in developed markets and emerging markets, therefore investments in emerging markets may be up to 100% of the NAV.

Up to 100% of the Sub-Fund’s NAV may be invested in convertible bonds (issued and/or guaranteed by issuers such as corporations, financial institutions and banks). The Sub-Fund’s expected total maximum investments in debt instruments with loss-absorption features (“LAP”) e.g. contingent convertible bonds (“CoCos”) and senior non-preferred debts will be up to 30% of its NAV. CoCos may have non-viability and/or loss absorption convertible features, i.e. they are subject to compulsory conversion out of the issuer’s control. They are hybrid capital securities that absorb losses when the capital of the issuer falls below a certain level, and may be compulsorily redeemed upon the occurrence of a trigger event which may be out of the issuer’s control. They are risky and highly complex investment instruments. Under certain circumstances CoCos can be converted into shares of the issuing company, potentially at a discounted price, or cause the permanent write-down to zero of the principal investment and/or accrued interest such that the principal amount invested may be lost on a permanent or temporary basis. In the event convertible bonds are converted into shares resulting in deviation from the indicative asset allocation, the Manager will arrange for the shares to be sold within 10 business days. The Sub-Fund may also invest in senior non-preferred debts. While these instruments are generally senior to subordinated debts, they may be subject to write-down upon the occurrence of a trigger event and will no longer fall under the creditor ranking hierarchy of the issuer. This may result in total loss of principal invested.

The Sub-Fund will not invest more than 10% of its NAV in debt securities issued and/or guaranteed by a single sovereign issuer (including its government, public or local authority) which is below investment grade and/or unrated.

The Sub-Fund will invest in a broadly diversified portfolio of debt securities with no fixed duration, term structure or industry sector weightings in the allocation of assets in developed markets. Selection of investments will be determined by the availability of attractive investment opportunities.

Under exceptional circumstances (e.g. market crash or major crisis) or adverse market conditions, the Sub-Fund may be invested temporarily up to 100% of its NAV in liquid assets such as bank deposits, certificates of deposit, commercial paper and treasury bills, and investments in investment grade debt securities may temporarily increase to up to 100%.

Other debt securities

The Sub-Fund may also invest up to 30% of the NAV in investment grade debt securities. Onshore China exposure will be up to 20% of the NAV, which may include investments in debt securities issued by or fully guaranteed by the PRC government and/or government related entities and urban investment bonds (城投債). Urban investment bonds are debt instruments issued by local government financing vehicles ("LGFVs") in the China listed bond and interbank bond market. These LGFVs are separate legal entities established by local governments and/or their affiliates to raise financing for public welfare investment or infrastructure projects.

Equity securities

The Sub-Fund may also invest less than 30% of its NAV in shares listed on Hong Kong, Singapore or U.S. stock exchanges (including American Depositary Receipts and preference shares). This includes any listed equities the SubFund may hold as a result of the conversion of the convertible bonds, i.e. the Sub-Fund’s aggregate exposure in equities will not exceed 30% of the Sub-Fund’s NAV. The Sub-Fund will not hold equities that are unlisted.

Financial derivative instruments (“FDIs”) and other investments

The Sub-Fund may also invest in units in any unit trust or shares in any mutual fund corporation or any other collective investment scheme (including those managed by the Manager or its connected persons) authorised by the SFC or in recognised jurisdiction schemes and may hold cash, deposits, and other money market instruments (such as but not limited to treasury bills, commercial papers, certificates of deposit as considered appropriate by the Manager). The SubFund will not invest more than 30% of its NAV in the above instruments/investments.

The Sub-Fund may invest up to 20% of the NAV in sale and repurchase transactions and borrow up to 10% of its NAV with a view to creating additional income. For the purpose of the Sub-Fund, sale and repurchase transactions are transactions where the Sub-Fund sells securities such as bonds for cash and simultaneously agrees to repurchase the securities from the counterparty at a pre-determined future date for a pre-determined price. A sale and repurchase

transaction is economically similar to secured borrowing, with the counterparty of the Sub-Fund receiving securities as collateral for the cash that it lends to the Sub-Fund.

For sale and repurchase transactions, the Manager will seek to appoint independent counterparties approved by the Manager with credit rating of BBB- or above (by Moody's or Standard & Poor's, or any other equivalent ratings by

recognised credit rating agencies) or which are SFC-licensed corporations or are registered institutions with the Hong Kong Monetary Authority. Any incremental income generated will be credited to the account of the Sub-Fund after deducting any fees charged by parties operating such transactions. It is the intention of the Manager to sell the securities for cash equal to the market value of the securities provided to the counterparty. Cash obtained in sale and repurchase transactions will be used for liquidity management, re-investment and hedging purposes. Where cash received by the Sub-Fund is used for re-investment, such cash may only be re-invested in accordance with Chapter 7 of the SFC’s Code on Unit Trusts and Mutual Funds (the “Code”) and the provisions set out under the section “Investment Objective, Strategy and Restrictions” in the Explanatory Memorandum.

The Sub-Fund may also invest in FDIs for hedging and investment purpose to the extent permitted by the Code and the provisions set out under the section “Investment Objective, Strategy and Restrictions” in the Explanatory Memorandum. The Sub-Fund will not invest in collateralised and/or securitised products (such as asset backed securities, mortgage backed securities and asset backed commercial papers). The Sub-Fund will not enter into any securities lending or reverse repurchase transactions or similar over-the-counter transactions. The Sub-Fund will not write options.

Use of derivatives / Investment in derivatives
The Sub-Fund’s net derivative exposure may be up to 50% of the Sub-Fund’s NAV.

Fund Information

HKD

RMB

USD

Class A (Acc) USD

Class A (Dis) USD

Class I2 (Dis) USD

Class I1 (Dis) USD

Class A (Acc) HKD

Class A (Dis) HKD

Class I (Acc) HKD

Class I (Dis) HKD

Class A (Acc) RMB

Class A (Acc) Hedged RMB

Class A (Dis) RMB

Class A (Dis) Hedged RMB

Class I (Acc) RMB

Class I2 (Dis) Hedged RMB

Class I (Dis) RMB

Class I1 (Dis) Hedged RMB

Class X (Acc) USD

Class X (Acc) HKD

Class X (Acc) Hedged RMB

Class I (Acc) USD

Class I (Acc) Hedged RMB

*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.*Please note that these fees may be increased up to a permitted maximum on giving 1 month’s notice to unitholders. Please refer to the section of the prospectus entitled “Fees and Expenses” for further details of the fees and charges payable.

Disclaimer

E Fund Management (Hong Kong) Co., Limited is the issuer of this report. This report is neither an offer nor solicitation to purchase units of the fund; applications for units may only be made on forms of application available with the Explanatory Memorandum. Investments are subject to investment risks, fund value may go up as well as down and past performance is not indicative of future performance. Investors should read carefully the Explanatory Memorandum (including the section “Risk Factors”) for the relevant risks associated with the investment in the fund before investing.

Distribution of this report may be restricted in certain jurisdictions. This report does not constitute the distribution of any information or the making of any offer or solicitation by anyone in any jurisdiction in which such distribution or offer is not authorized or to any person to whom it is unlawful to distribute such a report or make such an offer or solicitation. This report is exempted from pre-vetting and authorization by the Securities and Futures Commission of Hong Kong and has not been reviewed by the Securities and Futures Commission of Hong Kong.

SFC authorization is not a recommendation or endorsement of a scheme nor does it guarantee the commercial merits of a scheme or its performance. It does not mean the scheme is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.

Important information
please continue to browse the company web site before read below

Before you continue, please read this important information carefully. By clicking the "Accept" button, you consent to be bound by all the terms set out herein. If you do not agree with any of these terms, you are not an authorized user for these services and you should not use this website. Please click "Do not Accept" button and leave this website.

By proceeding to access information contained herein, users are deemed to be representing and warranting that they are either Hong Kong residents or are observing the applicable laws and regulations of their relevant jurisdictions.
Terms and Conditions

E Fund Management (Hong Kong) Co., Limited does not make representation that information and materials on this site are appropriate for use in all jurisdictions available on the web, or that transactions, securities, products, instruments or services offered on this site are available or indeed appropriate for sale or use in all jurisdictions, or by all investors or other potential clients. Those who access this site do so on their own initiative, and are therefore responsible for compliance with applicable local laws and regulations. By accessing each site, the entrant has agreed that he/she has reviewed the site in its entirety including any legal or regulatory jurisdictions.

To the best of its knowledge and belief, E Fund Management (Hong Kong) Co., Limited considers the information contained herein is accurate as at the date of publication. However, no warranty is given on the accuracy, adequacy or completeness of the information provided by third party. Neither E Fund Management (Hong Kong) Co., Limited, nor its affiliates, directors and employees assume any liabilities in respect of any errors or omissions provided by third party on this website. Under no circumstances should this information or any part of it be copied, reproduced or redistributed.

Investors should note investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should read the explanatory memorandum for details and risk factors in particular those associated with investment in emerging markets. Investors should not only base on this marketing material alone to make investment decisions. This website has not been reviewed by the Securities and Futures Commission of Hong Kong. Issuer: E Fund Management (Hong Kong) Co., Limited

The information provided herein is for informational purposes only and is not intended to provide professional advice and should not be relied upon in that regard. Persons accessing these pages are advised to obtain appropriate professional advice where necessary. Information posted on this site is current only as at the date of posting and may no longer be true or complete when viewed by you. All information contained herein may be changed or amended without prior notice, although E Fund Management (Hong Kong) Co., Limited does not undertake to update this site regularly.
Should the viewer leave this site via a link contained herein, and view content that is not provided by the E Fund Management (Hong Kong) Co., Limited, the viewer does so at its own risk. E Fund Management (Hong Kong) Co., Limited is not responsible for damages or losses caused by any delays, defects or omissions that may exist in the services, information or other content provided in such site, whether actual, alleged, consequential or punitive. E Fund Management (Hong Kong) Co., Limited makes no guarantees or representations as to, and shall have no liability for, any electronic content delivered by any third party or have any responsibility, including without limitation, the accuracy, subject matter, quality or timeliness of any electronic content.
Trademarks, Copyrights and other Intellectual Property

All copyright, patents, intellectual and other property rights in connection with the information contained herein are owned by E Fund Management (Hong Kong) Co., Limited or its affiliates. No rights of any kind are licensed, assigned or shall otherwise pass to persons accessing this

Jurisdiction and Governing Law

These Terms shall be governed by, and shall be construed in accordance with, the laws of Hong Kong. The courts of Hong Kong shall have non-exclusive jurisdiction to hear and determine any suit, action or proceeding, and to settle any disputes, which may arise out of or in connection with these Terms and, for such purposes, you agree to submit to the jurisdiction of the courts of Hong Kong. Each party hereby waives any objection which it might at any time have to the courts of Hong Kong being nominated as the forum to hear and determine any proceedings and to settle any disputes and agrees not to claim that the courts of Hong Kong are not a convenient or appropriate forum.

Accept Don't accept

Manager	E Fund Management (Hong Kong) Co., Limited	Inception Date	28 Jan, 2019
Base Currency	USD	Management Fee* (% Net Asset Value of the Sub-Fund per annum)	1.0% (up to 3%)
Performance Fee	Nil	Trustee Fee	Annually 0.09%*
Subscription Fee	Up to 3%	Switching Fee	Nil
Redemption Fee	Nil	Dealing & Trading Frequency	Daily
Current NAV(USD)As of30 Aug, 2023	8.068	AUM(USD) as of 2022-08-31	524 Million
Historical NAV	Download	Trustee	CCB (Asia) Trustee Company Limited
Bloomberg Ticker	ESHYAUA HK	ISIN Code	HK0000384492

Manager	E Fund Management (Hong Kong) Co., Limited	Inception Date	30 Oct, 2019
Base Currency	USD	Management Fee* (% Net Asset Value of the Sub-Fund per annum)	1.0% (up to 3%)
Performance Fee	Nil	Trustee Fee	Annually 0.09%*
Subscription Fee	Up to 3%	Switching Fee	Nil
Redemption Fee	Nil	Dealing & Trading Frequency	Daily
Current NAV(USD)As of30 Aug, 2023	5.480	AUM(USD) as of 2022-08-31	524 Million
Historical NAV	Download	Trustee	CCB (Asia) Trustee Company Limited
Bloomberg Ticker	ESHYAUD HK	ISIN Code	HK0000384567

Manager	E Fund Management (Hong Kong) Co., Limited	Inception Date	08 Jan, 2018
Base Currency	USD	Management Fee* (% Net Asset Value of the Sub-Fund per annum)	0.5% (up to 3%)
Performance Fee	Nil	Trustee Fee	Annually 0.09%*
Subscription Fee	Up to 3%	Switching Fee	Nil
Redemption Fee	Nil	Dealing & Trading Frequency	Daily
Current NAV(USD)As of30 Aug, 2023	7.403	AUM(USD) as of 2022-08-31	524 Million
Historical NAV	Download	Trustee	CCB (Asia) Trustee Company Limited
Bloomberg Ticker	ESHYIUA HK	ISIN Code	HK0000384575

Manager	E Fund Management (Hong Kong) Co., Limited	Inception Date	Not yet launched
Base Currency	USD	Management Fee* (% Net Asset Value of the Sub-Fund per annum)	0.5% (up to 3%)
Performance Fee	Nil	Trustee Fee	Annually 0.09%*
Subscription Fee	Up to 3%	Switching Fee	Nil
Redemption Fee	Nil	Dealing & Trading Frequency	Daily
Current NAV(USD)As of30 Aug, 2023	NA	AUM(USD) as of 2022-08-31	524 Million
Historical NAV	Download	Trustee	CCB (Asia) Trustee Company Limited
Bloomberg Ticker	ESHYIUD HK	ISIN Code	HK0000384641

Manager	E Fund Management (Hong Kong) Co., Limited	Inception Date	25 Mar, 2020
Base Currency	USD	Management Fee* (% Net Asset Value of the Sub-Fund per annum)	1.0% (up to 3%)
Performance Fee	Nil	Trustee Fee	Annually 0.09%*
Subscription Fee	Up to 3%	Switching Fee	Nil
Redemption Fee	Nil	Dealing & Trading Frequency	Daily
Current NAV(HKD)As of30 Aug, 2023	86.201	AUM(USD) as of 2022-08-31	524 Million
Historical NAV	Download	Trustee	CCB (Asia) Trustee Company Limited
Bloomberg Ticker	ESHYAHA HK	ISIN Code	HK0000384526