This document is solely for informational purposes and should not be construed as investment recommendations for specific clients. All content in this document is information of a general nature and does not address the financial circumstances and particular needs of any particular individual or entity. Therefore, information provided herein may not be suitable for all clients or investors. Readers should be aware that they are self-responsible for evaluating the investment risks and their investments. The making of this document is based on information which Cathay SITE deems reliable. However, Cathay SITE makes no guarantee of the entireness or correctness of the information contained in this document notwithstanding our efforts to use reliable and general information. Opinions or estimation contained in this document reflect the views when this document was made; Cathay SITE will not make subsequent notifications if relevant information or views changed. Cathay SITE is under no obligation to update the content of this document or follow up the analysis on the topics covered herewith. This document does not constitute an offer or solicitation to buy or sell any securities or other financial instruments. This document may not be copied, circulated, reproduced or distributed without the prior written consent of Cathay SITE.
Note: The funds have been approved by, or effectively registered with the Financial Supervisory Commission (FSC); however, it does not represent nor mean that investing in the funds is absolutely free from risk. Past performance of Cathay SITE does not guarantee a minimum return of the funds. Apart from owing a duty of care as a good manager, Cathay SITE will not be liable for the profits or losses of the funds, nor guarantee a minimum return. Investors should read the prospectus carefully before subscribing. Investors may obtain the prospectus or simplified prospectus from Cathay SITE or the sub-distributors of the funds, or download it from Cathay SITE's website (www.cathayholdings.com/funds), or the Market Observation Post System (mops.twse.com.tw). The fees borne by the funds are disclosed in the prospectus. Investors can also search in the Market Observation Post System. The economic forecasts mentioned herein are not necessarily indicative of the performance of the funds. Please refer to the respective prospectus for the investment risks associated with the fund.
Cathay China Domestic Demand Growth Fund, Cathay China Emerging Industries Fund and Cathay Mandarin Fund invest in regions including Mainland China, and may suffer from price volatility due to industrial cycle or non-economic factors. Also, the market mechanism in Mainland China is not as robust as that in the developed markets, the foreign exchange controls are more stringent, and changes in political and economic situation or laws and regulations are also greater, all of which might directly or indirectly impact the Fund's return.
Since non-investment grade bonds have credit ratings below investment grade or are not rated, and the bond prices are sensitive to interest rate changes, Cathay Global Multiple Income Balanced Fund may sustain losses due to rising interest rates, low liquidity, or an issuer's default on its obligation to pay principal or interest or filing for bankruptcy. The Fund is not suitable for investors who cannot bear relevant risks. (1) According to the investment strategy and investment characteristics of the Fund, the Fund has a higher level of risk and volatility, and is suitable for non-conservative investors who can tolerate more risks. The investment in funds with a significant exposure to non-investment grade bonds should not account for too much of an investor's portfolio. (2) Non-investment grade bonds have lower credit ratings or are not rated. The bond prices are subject to fluctuations as a result of issuers' earnings surprises, management changes, mergers and acquisitions, as well as increasing credit risk due to political and economic instability. Such price fluctuations may be particularly volatile in the case of negative news during the economic downturn. (3) The Fund may invest in Rule 144A bonds which are privately placed securities, and are inherently less liquid, has incomplete financial information, and lack price transparency.
Cathay Global Multiple Income Balanced Fund pays dividends gross of expenses. The distribution of the Fund may be paid out of income or capital. Any portion that involves payment from capital may result in a reduction in the original investment amount. Dividend yields are not the same as fund returns and past dividend yields are not indicative of future results. Fund NAVs may go up and down because of market swings. The dividend composition details are disclosed on Cathay SITE's website.
Cathay Global Multiple Income Balanced Fund may invest in Total Loss Absorbing Capacity (TLAC). For more information about TLAC, visit the website at https://www.cathaysite.com.tw/uploads/TLAC_COCOBOND.pdf.
