FSM Managed Portfolios - Monthly Investment Outlook · Source: Bloomberg and iFAST Compilations...

FSM Managed Portfolios

Monthly Investment Outlook

Jun 2020

Table of Contents

• Performance Review of Markets P.3

• Performance Review of Portfolios P.4

• Monthly Performance of Portfolios P.8

• Portfolio Statistics P.9

• Managed Portfolios vs. Global Balanced Funds on Our Platform P.10

• Managed Portfolios vs. Global Multi-Asset Funds of Funds in HK P.12

• Performance of RSP Portfolios P.14

• Performance of Portfolios’ Holdings P.15

• Portfolio Action P.19

• U.S Market looks like the onset of bull run in March 2009? P.20

2

Performance of Major Global Stock and Bond

Markets (as at 29 May 2020)

Source: Bloomberg and iFAST Compilations

Data as at 29 May 2020

Managed Portfolios were launched on 31 August 2015

Performance in index currency terms

3

Major Stock Indices 1MSince our portfolios

incepted

World MSCI AC World Index 4.15% 28.42%

US S&P 500 4.53% 54.36%

Europe STOXX 600 3.04% -3.43%

Japan Nikkei 225 8.34% 15.81%

Asia ex-Japan MSCI Asia ex Japan Index -1.41% 21.95%

Emerging Markets MSCI Emerging Markets Index 0.58% 13.63%

EMEAMSCI Emerging Europe, Middle East & Africa

Index3.62% -17.60%

Latin America MSCI Emerging Markets Latin America Index 6.23% -13.75%

China HS China (HK-listed) 100 Index -4.22% 15.79%

China A CSI 300 Index -1.16% 14.87%

Major Bond Categories 1MSince our portfolios

incepted

Global Aggregate Bond Total

ReturnJ.P. Morgan Global Aggregate Bond Index 0.44% 17.64%

Asia Bonds J.P. Morgan Asia Credit Index 2.82% 24.82%

EM Hard Currency J.P. Morgan EMBI Global Total Return Index 5.74% 25.56%

EM Local Currency J.P. Morgan GBI-EM Global Core Index 4.94% 16.19%

USD HYBloomberg USD High Yield Corporate Bond

Index4.41% 28.09%

Asia BB Credit Suisse Asia Bond Index – Asia BB 2.95% 27.65%

Portfolio Calendar Year Performance

4

Portfolios 2015* 2016 2017 2018 2019

Aggressive 0.7%* 1.2% 30.9% -10.4% 23.6%

Benchmark -0.9%* 6.4% 25.3% -12.6% 19.0%

Moderately

Aggressive-1.0%* 3.8% 26.0% -8.5% 20.7%

Benchmark -0.8%* 5.5% 21.4% -10.4% 16.4%

Balanced -2.0%* 4.0% 18.4% -4.9% 17.9%

Benchmark -0.7%* 4.5% 17.5% -8.1% 13.8%

Moderately

Conservative-2.7%* 5.0% 12.8% -3.2% 13.0%

Benchmark -0.6%* 3.5% 13.5% -5.5% 11.1%

Conservative -3.1%* 5.6% 8.5% -2.1% 9.5%

Benchmark -0.4%* 2.6% 9.1% -2.6% 8.3%

Outperformance Against the Benchmark

Managed Portfolios were launched on 31 August 2015. The portfolios’ performance is based on HKD 200,000 of investment, which includes dividends and excludes sales charges. The performance figures are based

on the price of funds, as at its valuation date on an NAV-to-NAV basis and denominated in HKD with dividends “reinvested” on the dividend date. The latest available NAVs are carried forward if the respective funds are

on holiday. Performance figures with less than one calendar year of its first year of inception are calculated from the launch date to the end of the particular calendar year. Benchmark performance is calculated based

on the price of the indices, as at their respective valuation date in HKD terms. Past performance is not indicative of future return. The portfolios’ performance is for illustrative purposes only, and it does not represent the

actual or future performance of clients' portfolios.

From 1 Oct 2019, the Fixed Income Index of the Composite Benchmark is changed from JPM Global Aggregate Bond Total Return Index by Bloomberg Barclays Global Aggregate Total Return Index

See http://www.fundsupermart.com.hk/ for detailed fund allocation.

Source: Bloomberg and iFAST compilations;

http://www.fundsupermart.com.hk/

Portfolio Year-To-Date Performance

(as at 29 May 2020)

Managed Portfolios were launched on 31 August 2015. The portfolios’ performance is based on HKD 200,000 of investment, which includes dividends and excludes sales charges. The performance figures are based on

the price of funds, as at its valuation date on an NAV-to-NAV basis and denominated in HKD with dividends “reinvested” on the dividend date. The latest available NAVs are carried forward if the respective funds are on

holiday. Performance figures with less than one calendar year of its first year of inception are calculated from the launch date to the end of the particular calendar year. Benchmark performance is calculated based on the

price of the indices, as at their respective valuation date in HKD terms. Past performance is not indicative of future return. The portfolios’ performance is for illustrative purposes only, and it does not represent the actual or

future performance of clients' portfolios.



Source: Bloomberg and iFAST compilations

5

Portfolio Portfolio PerformanceIndex

Performance

Aggressive -8.60% -11.40%

Moderately Aggressive -8.41% -8.79%

Balanced -5.92% -5.99%

Moderately Conservative -3.50% -2.95%

Conservative -3.04% 0.33%


Portfolio Performance Since Inception

(as at 29 May 2020)









6

Portfolio Portfolio PerformanceIndex

Performance

Aggressive 34.85% 21.64%

Moderately Aggressive 30.78% 20.75%

Balanced 26.91% 19.86%

Moderately Conservative 21.50% 17.65%

Conservative 14.97% 18.08%


Portfolio Performance

(as at 29 May 2020)



7







Portfolio

Portfolio

Performance

(1M)

Index

Performance

Portfolio

Performance

(3M)

Index

Performance

Portfolio

Performance

(6M)

Index

Performance

Portfolio

Performance

(1Y)

Index

Performance

Portfolio

Performance

(3Y)

Index

Performance

Aggressive 3.07% 2.48% -1.26% -3.13% -4.99% -7.37% 2.59% -0.26% 16.26% 2.94%

Moderately

Aggressive3.14% 2.03% -2.64% -2.45% -5.56% -5.36% 1.05% 0.95% 13.74% 4.53%

Balanced 3.21% 1.58% -1.95% -1.74% -4.08% -3.24% 2.28% 2.21% 14.85% 6.07%

Moderately

Conservative2.81% 1.13% -1.92% -1.02% -2.42% -0.99% 2.16% 3.52% 12.06% 7.95%

Conservative 2.71% 0.67% -3.04% -0.27% -2.54% 1.41% 1.11% 4.89% 8.38% 9.78%


Monthly Performance of Portfolios

8



Managed Portfolios were launched on 31 August 2015. The portfolios’ performance is based on HKD 200,000 of investment, which includes dividends and excludes sales charges. The

performance figures are based on the price of funds, as at its valuation date on an NAV-to-NAV basis and denominated in HKD with dividends “reinvested” on the dividend date. The latest

available NAVs are carried forward if the respective funds are on holiday. Performance figures with less than one calendar year of its first year of inception are calculated from the launch

date to the end of the particular calendar year. Benchmark performance is calculated based on the price of the indices, as at their respective valuation date in HKD terms. Past performance

is not indicative of future return. The portfolios’ performance is for illustrative purposes only, and it does not represent the actual or future performance of clients' portfolios.

AggressiveModerately

AggressiveBalanced

Moderately

ConservativeConservative

31/1/2018 5.91% 4.92% 3.49% 2.24% 1.04%

28/2/2018 -3.24% -2.73% -1.83% -0.97% -0.41%

31/3/2018 -2.34% -1.92% -1.21% -0.64% -0.18%

30/4/2018 0.86% 0.60% 0.47% 0.14% -0.17%

31/5/2018 0.22% 0.06% 0.00% -0.22% -0.35%

29/6/2018 -2.11% -1.95% -1.27% -1.02% -0.80%

31/7/2018 1.66% 1.62% 1.63% 1.22% 0.98%

31/8/2018 -0.75% -0.64% -0.11% -0.14% -0.15%

30/9/2018 -0.35% -0.28% -0.39% -0.44% -0.47%

31/10/2018 -7.96% -6.60% -4.48% -2.90% -1.59%

30/11/2018 2.40% 2.19% 1.21% 0.82% 0.39%

31/12/2018 -4.56% -3.63% -2.36% -1.06% -0.10%

31/1/2019 7.48% 6.53% 5.07% 3.60% 2.71%

28/2/2019 2.49% 2.22% 1.53% 1.20% 1.02%

31/3/2019 2.11% 1.98% 1.86% 1.58% 1.52%

30/4/2019 2.73% 2.36% 1.76% 1.05% -0.30%

31/5/2019 -4.68% -3.74% -1.89% -0.79% 0.03%

30/6/2019 4.32% 3.61% 3.02% 2.05% 1.41%

31/7/2019 0.91% 0.88% 0.84% 0.66% 0.62%

31/8/2019 -2.17% -1.68% -0.61% 0.12% 0.81%

30/9/2019 0.79% 0.73% 0.56% 0.17% -0.03%

31/10/2019 3.24% 2.79% 2.08% 1.32% 0.75%

30/11/2019 0.76% 0.56% 0.60% 0.29% 0.11%

31/12/2019 3.95% 3.12% 1.96% 1.12% 0.52%

31/1/2020 -2.08% -1.70% -0.57% -0.08% 0.37%

29/2/2020 -5.48% -4.30% -3.49% -1.53% -0.36%

31/3/2020 -12.61% -13.35% -11.15% -9.01% -8.94%

30/4/2020 9.61% 8.37% 6.89% 4.81% 3.61%

29/5/2020 3.07% 3.14% 3.21% 2.81% 2.71%


Portfolio Statistics

(as at 29 May 2020)

99



Managed Portfolios were launched on 31 August 2015. The portfolios’ performance is based on HKD 200,000 of investment, which includes dividends and excludes sales charges. The

performance figures are based on the price of funds, as at its valuation date on an NAV-to-NAV basis and denominated in HKD with dividends “reinvested” on the dividend date. The latest

available NAVs are carried forward if the respective funds are on holiday. Performance figures with less than one calendar year of its first year of inception are calculated from the launch

date to the end of the particular calendar year. Benchmark performance is calculated based on the price of the indices, as at their respective valuation date in HKD terms. Past performance

is not indicative of future return. The portfolios’ performance is for illustrative purposes only, and it does not represent the actual or future performance of clients' portfolios.

AggressiveModerately

AggressiveBalanced

Moderately

ConservativeConservative

Annualised Return 7.46% 6.60% 5.61% 4.45% 3.18%

Annualised Volatility 13.44% 12.18% 9.43% 7.17% 6.17%

Risk-Free Rate 1.63% 1.63% 1.63% 1.63% 1.63%

Sharpe Ratio 0.43 0.41 0.42 0.39 0.25

Maximum Drawdown -29.54% -27.55% -23.04% -16.28% -13.68%


Managed Portfolios vs.

Global Balanced Funds on Our Platform


DPMS portfolios were launched in 31 August 2015. Data as at 29 May 2020

Performance figures are cumulative with dividends reinvested and exclude the effects of

sales charges.

Portfolio/FundSince Inception Returns

(From 31 Aug 2015 – 29 May 2020)

Aggressive 34.85%

Moderately Aggressive 30.78%

Balanced 26.91%

JPMorgan Evergreen Fund (USD) 24.92%

Moderately Conservative 21.50%

BlackRock Global Funds - Global Allocation Fund (USD) A2 21.31%

Amundi HK - Balanced Fund (USD) Acc 20.70%

Fidelity Funds - Global Multi Asset Income Fund A-MIncome(G)-USD 19.61%

BlackRock Global Funds - Global Multi-Asset Income Fund (USD) A2 Acc 17.34%

JPMorgan Multi Income Fund (mth) - USD 16.58%

Aberdeen Standard SICAV I - Diversified Income Fund (USD) A MDis 15.85%

Franklin Income Fund (USD) A (Mdis) 13.54%

Conservative 14.97%

Eastspring Investments - Global Market Navigator Fund (USD) A 11.77%

AB SICAV I - All Market Income Portfolio (USD) A2X 11.54%

Templeton Global Balanced Fund (USD) A(acc) 4.75%

Schroder ISF-Global Multi-Asset Income (USD) A MDis 4.62%

Templeton Global Income Fund (USD) A(acc) -4.85%

Performance of Global Balanced Funds over the Past

Five Calendar Years

Fund/Portfolio 2019 2018 2017 2016 2015

JPMorgan Evergreen Fund 15.71 -6.96 19.78 1.31 -1.64

AB SICAV I - All Market Income Portfolio

(USD) A2X15.59 -6.01 11.86 6.97 -3.27

Aberdeen Standard SICAV I - Diversified

Income Fund (USD) A MDis9.22 -3.43 9.37 8.44 -3.29*

Amundi HK - Balanced Fund (USD) Acc 17.19 -11.07 21.56 1.78 -2.12

Eastspring Investments - Global Market

Navigator Fund (USD) A14.83 -10.12 13.48 6.18 -3.83

Fidelity Funds - Global Multi Asset Income

Fund A-MIncome(G)-USD12.19 -2.78 11.06 6.76 -1.41

JPMorgan Multi Income (mth) - USD 10.40 -4.85 11.48 7.47 -1.64

BlackRock Global Funds - Global Multi-Asset

Income Fund (USD) A2 Acc12.74 -4.71 9.52 5.39 -2.43

BlackRock Global Funds - Global Allocation

Fund (USD) A216.16 -4.71 9.52 5.39 -2.43

Franklin Income Fund (USD) A (Mdis) 8.91 -7.14 9.57 13.06 -10.30

Templeton Global Balanced Fund (USD)

A(acc)13.27 -10.47 16.45 3.88 -6.19

Schroder ISF-Global Multi-Asset Income

(USD) A MDis11.56 -5.19 6.30 7.47 -6.95

Templeton Global Income Fund (USD) A(acc) 6.10 -9.95 12.51 4.87 -4.87Source: iFAST Compilations

* For fund(s) with performance figure less than 1 calendar year in the 1st year of its launch, the

performance figure shown is calculated since launch until the end of the particular calendar

year. Performance figures are based on the price of the fund on NAV-to-NAV basis and

denominated in HKD, with dividends being 'reinvested' on the dividend date.11

Managed Portfolios vs. Global Multi-Asset Funds

of Funds in HK


DPMS portfolios were launched in 31 August 2015. Data as at 29 May 2020

Performance figures are cumulative with dividends reinvested and exclude the effects of

sales charges.

Portfolio/FundSince Inception Returns

(From 31 Aug 2015 – 29 May 2020)

Aggressive 34.85%

HANG SENG GLOBAL HIGH GROW-A 32.58%

Moderately Aggressive 30.78%

Balanced 26.91%

FIDELITY ADV PORT-GROWTH-ORD 26.31%

FIDELITY ADV PORT-BALANC-ORD 24.84%

HANG SENG GLOBAL BALANCED-A 22.37%

JPM EVERGREEN FUND 21.95%

Moderately Conservative 21.50%

HSBC PORT-WORLD SEL 5-A 20.00%

FIDELITY ADV PORT-CAP ST-ORD 19.55%

HANG SENG GL CONSERVAT FD-A 18.28%


BOCHK INVEST FUNDS-AGG GROWT 16.69%



Conservative 14.97%


BOCHK INVEST FUNDS-BAL GROWT 13.20%

AXA CAPITAL GROWTH FUND-A 10.56%

AXA CAPITAL STABLE FUNDS-A 9.48%

BOCHK INVEST FUNDS-CONSERVAT 8.27%

Performance of Global Multi-Asset Funds of Funds

over the Past Five Calendar Years

Fund/Portfolio 2019 2018 2017 2016 2015

HSBC Portfolios ‒ World Selection1 (USD) 22.30% -4.11% 13.35% 4.35% -1.37%





Hang Seng Global High Growth Fund A 21.05% -10.92% 27.20% 3.52% -9.39%

Hang Seng Global Conservative Fund A 14.34% -4.11% 13.35% 2.29% -3.75%

BOCHK Aggressive Growth A 16.99% -12.09% 24.72% 2.85% -3.48%

Hang Seng Global Balanced Fund A 10.30% -7.53% 19.78% 3.00% -5.57%

BOCHK Balanced Growth Fund A 12.05% -7.68% 16.12% 1.53% -2.89%

JPMorgan Evergreen Fund 16.39% -7.06% 18.84% 1.57% -1.64%

BOCHK Conservative Growth Fund A 7.00% -3.36% 7.70% 0.20% -2.06%

AXA Capital Growth USD 12.58% -4.07% 10.00% -2.04% -2.23%

AXA Capital Stable USD 8.14% -8.91% 18.11% -2.35% -3.61%

FIDELITY ADV PORT-GROWTH-ORD 21.37% -11.94% 28.21% 1.22% -1.33%

FIDELITY ADV PORT-BALANC-ORD 17.64% -9.48% 23.38% 1.35% -1.94%

FIDELITY ADV PORT-CAP ST-ORD 10.38% -7.13% 18.83% 1.34% -2.54%

Source: iFAST Compilations

* For fund(s) with performance figure less than 1 calendar year in the 1st year of its launch,

the performance figure shown is calculated since launch until the end of the particular

calendar year. Performance figures are based on the price of the fund on NAV-to-NAV basis,

with dividends being 'reinvested' on the dividend date.13

Performance of RSP Portfolios Since Inception

(as at 29 May 2020)

Managed Portfolios were launched on 15 March 2016. The portfolios’ performance includes dividends and excludes sales charges. The performance figures are based on the price of funds,

as at its valuation date on an NAV-to-NAV basis and denominated in HKD with dividends “reinvested” on the dividend date. The latest available NAVs are carried forward if the respective

funds are on holiday. Performance figures with less than one calendar year of its first year of inception are calculated from the launch date to the end of the particular calendar year.

Benchmark performance is calculated based on the price of the indices, as at their respective valuation date in HKD terms. Past performance is not indicative of future return. The portfolios’

performance is for illustrative purposes only, and it does not represent the actual or future performance of clients' portfolios.



RSP Managed Portfolios were launched on 15 March 2016

14

Portfolio RSP Portfolio Performance

Growth 11.3%

Balanced 7.8%

Defensive 1.8%


Performance of Portfolios’ Holdings—

Equity Funds

For past performance, see http://www.fundsupermart.com.hk.

Source: Bloomberg and iFAST compilations.

Data as at 29 May 2020. *The cumulative return of the fund which has been switched is calculated on

the switching date rather than the portfolio inception date.

The performance figures are cumulative returns based on the prices of the underlying securities on a

NAV-to-NAV basis and denominated in HKD, with dividends reinvested. 15

Name Return Since Inception (%) 1M Returns(%) Year-To-Date (%)

ETF

Vanguard S&P 500 Index ETF 53.08 3.88 -7.76

Fund

AB SICAV I - American Growth Portfolio (USD) A 31.84* 8.35 8.53

Jupiter Global Fund - Jupiter European Growth (USD

Hedged) L Acc28.97* 6.16 -3.35

JPMorgan Japan (Yen) Fund 22.82* 9.37 4.56

Schroder ISF-Emerging Asia (USD) A Acc -9.91* 0.22 -10.79

First State Asian Equity Plus Fund (USD) I Dis 39.04 -1.56 -14.19

Fidelity Funds –

Emerging Europe, Middle East And Africa Fund A-Acc-

USD-7.98 5.21 -26.72

Fidelity Funds - Latin America Fund A-USD -11.92* 5.11 -11.92

First State China Growth Fund (USD) I 56.54 0.10 -9.67



Equity Funds



*For fund(s) with performance figure less than one calendar year in the first year of launch,

the performance figure shown is calculated since launch until the end of the particular calendar year.

The performance figures are cumulative returns based on the prices of the underlying securities

on a NAV-to-NAV basis and denominated in HKD, with dividends reinvested.16

Name 2019 2018 2017 2016 2015

Fund

AB SICAV I - American Growth Portfolio (USD) A 32.35 0.94% 31.23% 1.58% 9.54%

Jupiter Global Fund - Jupiter European Growth

(USD Hedged) L Acc32.16 -1.97% 22.92% -10.23% 29.83%

JPMorgan Japan (Yen) Fund 27.94 -13.46% 43.46% -2.40% 25.24%

First State Asian Equity Plus Fund (USD) I Dis 19.28 -5.27% 37.91% 2.06% -2.85%

Schroder ISF-Emerging Asia (USD) A Acc 17.97 -10.63% 44.61% 10.34% -7.36%

Fidelity Funds -

Emerging Europe, Middle East And Africa Fund A-

Acc-USD21.06 -18.63% 27.87% 10.35% -15.67%

Fidelity Funds - Latin America Fund A-USD 17.02 -7.81% 28.30% 21.14% -29.32%

First State China Growth Fund (USD) I 17.97 -17.43% 56.98% -3.11% -4.08%



Fixed Income Funds



Data as at 29 May 2020. *The cumulative return of the fund which has been switched is calculated on

the switching date rather than the portfolio inception date.

The performance figures are cumulative returns based on the prices of the underlying securities on a

NAV-to-NAV basis and denominated in HKD, with dividends reinvested17

NameReturn Since Inception

(%)1M Returns(%) Year-To-Date (%)

Fund

BlackRock Global Funds - US Dollar Short Duration Bond Fund

(USD) A3 Mdis9.79 0.99 -0.06

PIMCO Global Bond (USD) E Acc 19.79 0.92 1.78

Jupiter Global Fund - Jupiter Dynamic Bond (USD-Hedged) L Q-

Inc16.39* 1.42 2.03

PIMCO Global High Yield Bond (USD) E Acc 6.17* 3.19 -5.47

First State Asian Quality Bond Fund (USD) I 21.52 2.16 0.43

BlackRock Global Funds - Asian Tiger Bond Fund (USD) A3 Mdis 19.82 2.61 -2.05

BEA Union Investment Asian Bond And Currency Fund (USD) A

Acc20.78 4.64 -11.27

BlackRock Global Funds - Global High Yield Bond Fund (USD) A2 20.85 4.54 -4.90

Allianz US Short Duration High Income Bond (USD) AM Dis 3.31* 3.85 -6.42

Wells Fargo (Lux) Worldwide Fund - U.S. High Yield Bond Fund

(USD) A Acc0.62* 5.07 -6.83

Aberdeen Global - Emerging Markets Corporate Bond Fund (USD)

A Acc3.49* 5.83 -8.00



Fixed Income Funds



*For fund(s) with performance figure less than one calendar year in the first year of its launch,

the performance figure shown is calculated since launch until the end of the particular calendar year.

The performance figures are cumulative returns based on the prices of the underlying securities

on a NAV-to-NAV basis and denominated in HKD, with dividends reinvested.

18

Name 2019 2018 2017 2016 2015

Fund

BlackRock Global Funds - US Dollar Short Duration

Bond Fund (USD) A3 Mdis3.80 2.23% 3.02% 0.32% 1.03%

PIMCO Global Bond (USD) E Acc 6.86 4.43% 4.94% -0.07% 8.02%

Jupiter Global Fund - Jupiter Dynamic Bond (USD-

Hedged) L Q-Inc8.15 4.28% 5.10% 1.83% 6.28%

PIMCO Global High Yield Bond (USD) E Acc 13.62 7.10% 11.63% -1.55% 2.09%

First State Asian Quality Bond Fund (USD) I 10.29 6.45% 3.42% 0.86% 6.86%

BlackRock Global Funds - Asian Tiger Bond Fund (USD)

A3 Mdis10.71 7.51% 4.77% 2.27% 8.19%

BEA Union Investment Asian Bond And Currency Fund

(USD) A Acc9.36 9.10% 14.02% 4.76% 2.54%

Fidelity Funds - Asian High Yield Fund A-Acc-USD 13.54 7.80% 13.63% 1.40% 3.52%

BlackRock Global Funds - Global High Yield Bond Fund

(USD) A26.65 8.44% 12.28% -4.74% 1.66%

Allianz US High Yield (USD) A MDis 11.43 5.68% 13.89% -8.81% -0.85%

Allianz US Short Duration High Income Bond (USD) AM

Dis13.06 4.79% 7.31% -0.09%* -

Wells Fargo (Lux) Worldwide Fund - U.S. High Yield

Bond Fund (USD) A Acc3.80 7.52% 13.47% -3.30% 3.19%

Aberdeen Standard SICAV I - Emerging Markets

Corporate Bond Fund (USD) A Acc6.86 10.21% 10.50% 0.19% 1.83%


Portfolio Action: Cut Emerging Market Bond to 0%, Switch

it into Asian High Yield Bond

(Aggressive, Moderately Aggressive and RSP Growth)

• Both Emerging Markets and Asian High Yield Bonds suffered from the sell-off and

became the worst performing categories in the fixed income space.

• Thanks to the unlimited QE by the Fed and the loosening monetary stimulus by other

major central banks, the bond market has stabilised and different bond categories

have recovered a bit since late-March.

• After the rebound in April, EM bond spreads has gone down to below +1SD level

while Asian High Yield spreads remains way above the +1 SD level. From the yield

spread perspective, Asian High Yield Bonds look more attractive than the EM Debts.

• Another reason why we would like to switch out EM bonds and switch into Asian High

Yield Bond is because the EM economies will likely be hurt by the recent collapse in

oil prices.

• As such, in the fixed income portion of Aggressive, Moderately Aggressive and RSP

Growth portfolio, we will cut EM bonds exposure to 0% and switch into Asian High

Yield Bonds.

19

Major Markets’ Estimated Earnings Over the

Next Three Years

20

Markets 2020 2021 2022CAGR of Estimated Earnings Over

Next 3 Years

MSCI World -24.12% 28.33% 15.52% 4.00%

U.S. -23.59% 28.98% 16.34% 4.66%

Europe -32.83% 34.56% 17.01% 1.88%

Japan -16.74% 24.60% 9.88% 4.46%

MSCI Emerging Market -18.03% 28.51% 16.06% 6.93%

Russia -45.82% 35.64% 27.46% -2.16%

Brazil -47.86% 101.68% 20.60% 8.24%

MSCI Asia Ex Japan -9.87% 24.18% 13.54% 8.32%

China (HSML100) -5.28% 13.04% 11.68% 6.14%

Hong Kong -14.75% 17.96% 11.83% 3.99%

China A (CSI 300) 4.43% 15.31% 12.30% 10.58%

Taiwan -0.46% 14.55% 12.56% 8.68%

Korea 1.50% 42.62% 13.06% 17.85%

India^ -8.38% 33.88% 11.11% 10.87%

Singapore -24.07% 15.41% 15.66% 0.45%

Indonesia -18.86% 23.17% 19.58% 6.12%

Malaysia -19.98% 20.56% 6.39% 0.87%

Thailand -29.03% 26.70% 13.98% 0.82%

Source: Bloomberg and iFAST Compilations.

Data as at 12 Jun 2020

A sharp earnings plunge 2020 is a foregone conclusion. What markets are currently expecting is a

strong rebound in earnings in 2021. However, the earnings will only come back to the readings at the

beginning of this year in year 2022 for most of the markets.

The valuation looks high for most of the major

markets due to the drastic cut in earnings forecast

21

Markets Fair PE High PE Band Low PE Band 2020 Estimated PE Valuation Level

MSCI World 14.5 18 11 21.3 Expensive

U.S. 16 17 10 24.3 Expensive

Europe 15 18 11 20.4 Expensive

Japan 18 25 15 20.8 Above Mean

MSCI Emerging Market 13 17 10 15.7 Above Mean

Russia 7 11 4 10.0 Above Mean

Brazil 11.5 17 8 24.6 Expensive

MSCI Asia Ex Japan 13.5 18 10 15.9 Above Mean

China (HSML100) 12 18 10 9.0 Cheap

Hong Kong 12 18 10 11.3 Below Mean

China A (CSI 300) 13 22 12 12.7 Below Mean

Taiwan 15 17 11 17.6 Above Mean

Korea 12 15 9 15.1 Fair

India^ 18 20 11 19.8 Expensive

Singapore 15 18 12 14.5 Fair

Indonesia 15 18 12 15.7 Above Mean

Malaysia 16 18 10 20.2 Expensive

Thailand 14 15 8 20.9 Expensive



2021 Estimated PE looks more reasonable

22

Markets Fair PE High PE Band Low PE Band 2021 Estimated PE Valuation Level

MSCI World 14.5 18 11 16.6 Above Mean

U.S. 16 17 10 18.8 Expensive

Europe 15 18 11 15.1 Fair

Japan 18 25 15 16.7 Below Mean

MSCI Emerging Market 13 17 10 12.2 Below Mean

Russia 7 11 4 7.4 Fair

Brazil 11.5 17 8 12.2 Above Mean

MSCI Asia Ex Japan 13.5 18 10 12.8 Below Mean

China (HSML100) 12 18 10 8.0 Cheap

Hong Kong 12 18 10 9.6 Cheap

China A (CSI 300) 13 22 12 11.0 Cheap

Taiwan 15 17 11 15.4 Fair

Korea 12 15 9 10.6 Below Mean

India^ 18 20 11 14.8 Below Mean

Singapore 15 18 12 12.5 Cheap

Indonesia 15 18 12 12.7 Below Mean

Malaysia 16 18 10 16.8 Above Mean

Thailand 14 15 8 16.5 Expensive



0

500

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5

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19

55

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57

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01

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03

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2007

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09

2011

20

13

20

15

20

17

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19

(X)

S&P 500 Index – Adjusted P/E

+1 Standard Deviation

-1 Standard

Deviation

Historical Mean

Valuation of U.S Stocks Climbs to One of

the Highest Level in History

23

2020 Estimated

P/E > 25X!

Price-to-Earnings Ratio

Index



Valuation Comparison: 2020 V.S 2009

24

40

50

60

70

80

90

100

110

120

600

700

800

900

1000

1100

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1300

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Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09

S&P 500 EPS - 2009

S&P 500 Index Next Year Est EPS Curr Year Est EPS

8

9

10

11

12

13

14

15

16

17

18

600

700

800

900

1000

1100

1200

1300

1400

1500

Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09

S&P 500 P/E - 2009

S&P 500 Index Next Year Est P/E Curr Year Est P/E

100

120

140

160

180

200

2100

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3100

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3500

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

S&P 500 EPS - 2020

S&P 500 Index Next Year Est EPS Curr Year Est EPS

10

12

14

16

18

20

22

24

26

28

2100

2300

2500

2700

2900

3100

3300

3500

3/1/2020 3/2/2020 3/3/2020 3/4/2020 3/5/2020 3/6/2020

S&P 500 P/E - 2020

Next Year Est P/E Curr Year Est P/E S&P 500 Index



Valuation Comparison: 2020 V.S 2009

25

0.6

0.7

0.8

0.9

1

1.1

1.2

1.3

1.4

1.5

600

700

800

900

1000

1100

1200

1300

1400

1500

S&P 500 P/S - 2009

S&P 500 Index Curr Year Est P/S Next Year Est P/S

1.5

1.6

1.7

1.8

1.9

2

2.1

2.2

2.3

2.4

2.5

2100

2300

2500

2700

2900

3100

3300

3500

3/1/2020 3/2/2020 3/3/2020 3/4/2020 3/5/2020 3/6/2020

S&P 500 P/S - 2020

S&P 500 Index Curr Year Est P/S Next Year Est P/S



Risk Disclosure Statement

• The Fidelity Advantage Portfolio Fund

• RISK DISCLOSURE STATEMENTSThe Fidelity Advantage Portfolio Fund is an umbrella fund with a number of sub-funds with different investment objectives and risk profiles. These Sub-funds may gain exposure to equities, debt, money market securities and/or other instruments, including derivatives.

• Sub-funds with exposure to emerging market securities may be subject to higher risks and volatility.

• Sub-funds investing primarily in single or a limited number of geographical market(s) may subject to higher concentration risk.

• Sub-funds with exposure to RMB denominated debt securities issued or distributed outside mainland China, will subject to RMB currency risk, RMB exchange risk and risk of limited pool of investments.

• Sub-fund with exposure to Tracker Fund of Hong Kong (“TraHK”) will be subject to risk of investing in index-tracking fund, risks relating to TraHK and risks relating to Hang Seng Index. The value of investments will vary with market movements and under extreme circumstances, may experience substantial loss. Please refer to the Risk Factors section of this Explanatory Memorandum for details.

• You should not invest based on this document alone and should read the Explanatory Memorandum of Fidelity Advantage PortfolioFund (including potential risks involved) for further information.

• HSBC Portfolios – World Selection

• RISK DISCLOSURE STATEMENTS

• The HSBC Portfolios comprise 5 differentWorld Selection sub-funds (“sub-funds”), each with diversified range of investments, investment objective and risk profile. Each sub-fund will invest predominantly in other collective investment schemes, but may also invest directly in derivative contracts and other securities.The sub-funds mainly invest in equity and fixed income markets, but may also gain exposure to other asset classes such as real estate, hedge fund strategies, commodities, private equity and absolute return strategies.

• The sub-funds may invest more extensively in derivative instruments such as futures, forwards, options and swaps (such as credit default swaps and total return swaps) and other financial derivative instruments which may involve embedded leverage.

• Investing in any one of the above instruments may involve substantial market, credit/counterparty, currency, volatility, liquidity, regulatory and political risks. If the issuers default, or such securities or their underlying assets cannot be realised, or perform badly, investors may suffer substantial or, in certain cases, total loss of their investments.

• The sub-funds may gain exposure to hedge fund and absolute return strategies (which may be extremely volatile) and the private equity and the real estate sectors (which may be less liquid). Because of their special and higher risks, substantial or, in certain cases, total loss may result with respect to investments in those asset classes.

• Unit trusts are NOT equivalent to time deposits. Investors should not invest in the sub-funds solely based on the information provided in this document and should read the offering document of the sub-funds for details.

26

• AB SICAV I - All Market Income Portfolio (USD) A2X


• The portfolio invests in emerging markets, which is subject to higher risks (e.g. liquidity risk, currency risk, political risk, regulatory risk and economic

risk) and higher volatility than portfolios investing in developed market. Fluctuations in currency exchange rates may negatively affect the value of the

investment or reduce returns – these risks are magnified in emerging or developing markets.

• Investment in the portfolio may involve fixed-income securities risk, country risks, currency risk, interest rate risk, equity securities risk, management

risk, credit risk and the risk associated with payment of dividends out of capital. The value of the portfolio can be volatile and can go down substantially

within a short period of time. It is possible that the entire value of your investment in the portfolio can be lost.

• The portfolio is entitled to use derivative instruments for hedging and efficient portfolio management purposes which may involve additional risks. In

adverse situations, the portfolio's use of derivative instruments may become ineffective in hedging or efficient portfolio management and the portfolio

may suffer significant losses.

• Investors should not rely on this document alone to make investment decisions.

• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has advised you

that the product is suitable for you and explained how it is consistent with your investment objectives. Note: Fundsupermart.com is a self-directed online

distributor and we only provide limited personal financial advisory services upon a particular request from client.

• Amundi HK - Balanced Fund (USD) Acc


• Through its investments in equity, and money-market instruments (including cash), the Sub-Fund is exposed to risks, including (but not necessarily

limited to) equity, market and volatility risk, currency risk, interest rate risk, credit risks, liquidity risks, counterparty risks, and political, economic and

social risks. It should also be noted that investments by the Sub-Fund made in small and medium sized companies as well as in emerging markets may

involve a higher degree of risk, due to higher risks of failure or bankruptcy and to a more reduced volume of quoted securities, as well as to the

accentuated movements that it implies.




27


• ABERDEEN STANDARD SICAV I - DIVERSIFIED INCOME FUND (USD) A MDIS

•Risk Disclosure Statements

• • The Fund invests in worldwide Transferable Securities including equity and equity-related securities, Investment Grade and Sub-Investment Grade Debt and Debt-Related Securities.• The Fund invests in emerging markets which tend to be more volatile and is subject to higher political, regulatory, credit and liquidity risks.• The Fund’s underlying investments are subject to interest rate risk and credit risk. Interest rate fluctuations affect the capital value of investments. Credit risk reflects the ability of a bond issuer to meet its obligations. The Fund has a significant position in high-yielding bonds, which means a higher risk to investor’s capital and income. Contingent convertible bonds can automatically convert into shares or be written down if the financial strength of the issuer falls in a certain way. This mayresult in substantial or total losses of the bond value.• Investments in REITs and companies engaged in the business of real estate may be subject to increased liquidity risk and price volatility.• The investments of the Fund may be periodically rebalanced and therefore the Fund may incur greater transaction costs than a fund with static allocation strategy.• The Board of Directors of Aberdeen Standard SICAV I may at its discretion pay dividends out of the capital of the Fund or pay dividends out of gross income while charging/ paying all or part of the Fund’s fees and expenses to/ out of the capital of the Fund, resulting in an increase in distributable income for the payment of dividends by the Fund and therefore, the Fund may effectively pay dividends out of capital. Payment of dividends 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. Any distributions involving payment of dividends out of the Fund’s capital or payment of dividends effectively out of the Fund’s capital (as the case maybe) may result in an immediate reduction of the net asset value per share.• Investment in the Fund may involve a high degree of risk and may not be suitable for all investors. It is possible that theentire value of the investment could be lost.• Investors are responsible for their investment decisions and should ensure that the intermediary has advised on the Fund’s suitability and consistency with their investment objective. If in doubt, please seek independent financial and professional advice.• Investors should not invest in the Fund based solely on this document and should read the relevant offering documents (particularly the investment policies and risk factors) for more details before investing.• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note: Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular request from client.

28


• FIDELITY FUNDS - GLOBAL MULTI ASSET INCOME FUND A-MINCOME(G)-USD

• Risk Disclosure Statements

• • This fund invests in global fixed income securities and global equities.The fund is subject to investment, equities, foreign currency risks, the risks of investing in emerging markets and investing inloans, Real Estate Investment Trusts risks and real estate securities risks. Although the fund will generally invest in income-producing securities, it is not guaranteed that all underlying investments will generate income and higher yields generally mean that there will be (a) reduced potential for capital appreciation for equity securities; and (b) increased potential forcapital appreciation and/or depreciation for fixed income securities. This fund may invest in bonds or debt securities which may be subject to credit, liquidity, counterparty and market risks. The fund will invest in investment grade debt securities,which may be subject to ratings downgrades by the rating agencies that may affect the net asset value of the fund. The fund will also invest in noninvestment grade bonds and unrated securities which may be subject to greater credit and liquidity risks, and may be more volatile than higher rated securities.• This fund can invest in derivative instruments which may involve additional risks (For example, leverage may cause greater volatility).• Dividend of certain share classes, at the Board’s discretion, may be 1) paid out of gross income, i.e. the fund may pay dividend effectively out of capital; or 2) paid directly out of capital where the net income generated by the fund is insufficient to pay a distribution as declared (For MCDIST share class, payment will be made out of capital). This will represent a returnor withdrawal of part of the amount they originally invested or from any capital gains attributable to the original investment. This may result in an immediate decrease in the fund’s NAV per share.• Investors may suffer substantial loss of their investments in the fund and should not invest in the fund solely based on the information provided in this document and should read the prospectus (including potential risks involved) for details.• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note: Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular request from client.

29


• EASTSPRING INVESTMENTS - GLOBAL MARKET NAVIGATOR FUND (USD) A


• • The Fund invests in equities and is exposed to the risk of market price fluctuations.• The Fund invests in bonds and is subject to interest rate fluctuation and exposed to credit default, valuation and credit rating risks as well as credit risk of the counterparties with which it trades and sovereign debt risk. Pertaining to investments in high yield/unrated/non-investment grade /non-investment grade sovereign bonds, these securities may be subject to higher credit risks and liquidity risks, compared with investment grade bonds, with an increased risk of loss of investments.Investment grade bonds are subject to the risks of credit rating downgrades.• The Fund may use financial derivatives instruments (FDIs) extensively for hedging and efficient portfolio management purposes whilst FDIs will not be extensively used for investment purposes. Using FDIs may expose the Fund to market risk, management risk, credit risk, counterparty risk, liquidity risk, volatility risk, operational risk, leverage risk, valuation risk and over-the-counter transaction risk. The use of such instruments may be ineffective and the Fund may incur significant losses.• The Fund’s investment in emerging markets subject it to greater political, tax, economic, foreign exchange, liquidity and regulatory risks.• Investments in the Eurozone may be subject to risk related to those countries, such as sovereign debt risks and, in adverseevent, credit downgrade of a sovereign or exit of EU members from the Eurozone.• The Fund may incur substantial losses if it is unable to sell those investments with high liquidity risks at opportune times or prices.• The Fund may invest in bonds and equities denominated in currencies other than the Fund’s base currency and may be exposed to currency and exchange rates risk.• The Fund's Board of Directors may, at its discretion, pay dividends out of capital or gross income while charging all or part of the fees and expenses to the Fund’s capital, resulting in higher distributable income. Thus, the Fund may effectively pay dividends out of capital. Payment of dividends out of capital (effectively or not) amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment, which may result in an immediate reduction of the net asset value per share.• Investment involves risk. Investors should not rely solely on this document in making investment decision. Past performance information presented is not indicative of future performance.• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note: Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular request from client.

•

30


• BlackRock Global Funds - Global Allocation Fund (USD) A2


• The Fund invests in debt securities that are subject to both actual and perceived measures of creditworthiness. The Fund may be

affected by changes in prevailing interest rates and by credit quality considerations. The Fund invests in smaller company shares which

can be more volatile and less liquid than those of larger companies. The Fund may be subject to a higher risk of default when it invests in

distressed securities. The Fund invests in certain emerging markets that may be subject to additional risks arising from political, economic

and market factors.

• The Fund may use derivatives to hedge market and currency risk and for efficient portfolio management. However, derivatives will not

be extensively or primarily used for investment purposes. In an adverse situation, the Fund may suffer significant losses from their

derivatives usage for hedging and efficient portfolio management.

• The value of a Fund can be volatile and could go down substantially within a short period of time. It is possible that the certain amount of

your investment could be lost.

• Investors should not only base on this marketing material alone to make investment decisions.

• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has

advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note:

Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular

request from client.

31


• BLACKROCK GLOBAL FUNDS - GLOBAL MULTI-ASSET INCOME FUND (USD) A2 ACC


• • The Fund may invest in debt securities that are subject to actual or perceived ratings downgrade. The Fund invests in certain emerging markets and may be subject to political, tax, economic, social and foreign exchange risks. An increase in interest rates may adversely affect the value of the bonds held by the Fund. The Fund may invest in non-investment grade and unrated bonds that may be subject to higher default, volatility and liquidity risks. The Fund invests in bonds issued or guaranteed by governments or authorities, which may involve political, economic, default or other risks.• The Fund is subject to currency risk, distressed securities risk, foreign investments restrictions risk, geographical concentration risk in Asia excluding Japan, liquidity risk, securities lending counterparty risk and currency conversion risk including Renminbi denominated Classes.• Class 6 Shares pay dividends gross of expenses and/or from capital at the Directors’ discretion. Class 8 Shares pay dividends gross of expenses and/or from capital at the Directors’ discretion and include interest rate differentials arising from share class currency hedging. Negative interest rate differentials may decrease the dividends paid. Paying dividends gross of expenses may result in more income being available for distribution; however these shares may effectively pay dividends from capital – may amount to a partial return or withdrawal of an investor’s original investment or capital gains. All declared dividends result in an immediate reduction in the NAV price of the share class on the ex-dividend date.• The Fund may use derivatives for hedging and for investment purposes. However, usage for investment purposes will not be extensive. The Fund may suffer losses from its derivatives usage.• The value of the Fund can be volatile and can go down substantially within a short period of time. It is possible that a certain amount of your investment could be lost.• Investors should not make investment decisions based on this document alone. Investors should refer to the Prospectus and Key Facts Statement for details including risk factors.• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note: Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular request from client.

• Franklin Income Fund (USD) A (Mdis)

• RISK DISCLOSURE STATEMENTS• The Fund may invest in non-investment grade debt securities, and as a result may be subject to liquidity and counterparty default risks.• The Fund’s value may be affected by exchange control regulations and changes in exchange rates.• This investment involves risks which may result in loss of part or entire amount of your investment.• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note: Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular request from client.

32


• JPMorgan Evergreen Fund


• The Fund invests in collective investment schemes and exchange traded funds, which have underlying exposures primarily to equities and fixed

income instruments. As a result the Fund is exposed to interest rate and credit risk as well as equity and currency market risk.

• Investors may be subject to substantial losses.

• Please refer to the offering document(s) for details.




• JPMorgan Multi Income (Mth) – USD


• The Fund invests in a diversified portfolio of income producing equities, bonds and other securities.

• The Fund is therefore exposed to a range of investment related risks which includes equity market

related risks, credit market related risks (including the risk of investing in below investment grade or unrated debt securities which is subject to a higher

degree of credit risk than investment in higher rated securities), interest rate risk which may affect the price of bonds and real estate market related risks

(associated with the risk of investing in REITs and other property related securities; direct investment in real estate is not permitted).

• There is no assurance on the distribution or the distribution rate or dividend yield of the Fund.


• Investors should not solely rely on this document to make any investment decision.




33


• Schroder ISF-Global Multi-Asset Income (USD) A Mdis


The fund invests primarily in global equities and fixed income securities through the use of funds or derivatives.

• For share classes with a general dividend policy, expenses will be paid out of capital rather than out of gross income. The amount of distributable

income therefore increases and the amount so increased may be considered to be dividend paid out of capital. Share classes with a fixed dividend

policy may pay out both income and capital in distributions. Where distributions are paid out of capital, this amounts to a return or withdrawal of part of

your original investment or capital gains attributable to that and may result in an immediate decrease in the net asset value of shares.

• The fund invests in debt securities which may be subject to interest rate, credit and counterparty risks. The fund may invest in unrated and non-

investment grade securities which are exposed to greater credit risks.

• The fund may invest in mortgage related and other asset backed securities that may be subject to interest rate, credit, valuation and liquidity risks.

• The fund's active management of currency positions may result in losses if the strategy/technique is not successful.

• The fund may use derivatives to meet its investment objective but does not intend to use derivatives extensively for investment purposes. Derivatives

exposure may involve higher counterparty, liquidity and valuation risks. In adverse situations, the fund may suffer significant losses from their derivative

usage for hedging.

You should not make any investment decision solely based on this document. Please read the relevant offering document carefully for further fund

details including risk factors.




• Templeton Global Balanced Fund (USD) A(Acc)


• The Fund may invest in emerging market securities which are exposed to higher risk of economic, political and regulatory changes that may pose

additional risk to the Fund.

• The Fund may invest in derivatives, and as a result may be subject to liquidity and counterparty default risks.

• The Fund may invest in defaulted debt securities on which the issuers are not currently making interest payment, and as a result may be subject to

liquidity and counterparty default risks.

• The Fund may invest in non-investment grade debt securities, and as a result may be subject to liquidity and counterparty default risks.

• This investment involves risks which may result in loss of part or entire amount of your investment.




34


• Templeton Global Income Fund (USD) A(Acc)


• The Fund may invest in emerging market securities which are exposed to higher risk of economic, political and regulatory changes that may pose

additional risk to the Fund.

• The Fund may invest up to 100% of their total net assets in structured products, mortgage- and asset-backed securities and derivatives (such as credit

default swaps, forwards and options), and is subject to significant liquidity and counterparty default risks.

• The Fund may invest in defaulted debt securities on which the issuers are not currently making interest payment, and as a result may be subject to

liquidity and counterparty default risks.

• The Fund may invest in non-investment grade debt securities, and as a result may be subject to liquidity and counterparty default risks.

• This investment involves risks which may result in loss of part or entire amount of your investment.




35



Aberdeen Standard SICAV I - Emerging Markets Corporate Bond Fund (USD) A Acc

RISK DISCLOSURE STATEMENTS

• The Fund invests in Debt and Debt-related securities issued by corporations (including government-owned corporations) in a CEMBI Emerging Market as at

the date of investment.

• The Fund invests in emerging markets which tend to be more volatile and is subject to higher political, regulatory, credit and liquidity risks.

• The Fund may invest in financial derivative instruments and enter into currency forward contracts for hedging and/or investment purposes. Trading in

currency forward contracts is substantially unregulated.

• The currency exposure of the Fund may be altered, solely through the use of derivative contracts. Performance may be strong ly influenced by movements in

currency rates.

• The Fund’s underlying investments are subject to interest rate risk and credit risk. Interest rate fluctuations affect the capital value of investments. Credit risk

reflects the ability of a bond issuer to meet its obligations.

• Investment in this fund may involve a high degree of risk and may not be suitable for all investors. It is possible that the entire value of the Investment could

be lost.

• Investors are responsible for their investment decisions and should ensure that the intermediary has advised on fund's suitability and consistency with their

investment objective. If in doubt, please seek independent financial and professional advice.

• Investors should not invest in this Fund based solely on this document and should read the relevant offering documents (par ticularly the investment policies

and risk factors) for more details before investing .

• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has advised you that the

product is suitable for you and explained how it is consistent with your investment objectives. Note: Fundsupermart.com is a self-directed online distributor and

we only provide limited personal financial advisory services upon a particular request from client.

36


AB SICAV I - American Growth Portfolio (USD) A


• Investment in the portfolio may also involve country risk, management risk and focused portfolio risk. The value of the portfolio can be volatile

and can go down substantially within a short period of time. It is possible that the entire value of your investment in the portfolio can be lost.

• The portfolio is entitled to use financial derivative instruments for hedging and efficient portfolio management purposes which may involve

additional risks. In adverse situations, the portfolio's use of derivative instruments may become ineffective in hedging or efficient portfolio

management and the portfolio may suffer significant losses.

• Investors should not rely on this document alone to make investment decisions.


advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note: Fundsupermart.com is

a self-directed online distributor and we only provide limited personal financial advisory services upon a particular request from client.

Schroder ISF-Emerging Asia (USD) A Acc


• The fund may have significant exposure in financial derivatives instruments (up to 100% of its total net asset) such as options, futures,

contracts for difference, warrants, swaps, forward contracts. Risks associated with these instruments include counterparty risk, credit risk and

liquidity risk. Under extreme market conditions and circumstances, investors may lose entire amount originally invested.

• The fund’s investment in emerging and less developed markets may be subject to significant risks such as political and economic risks, legal

and regulatory risks, market and settlement risks, execution and counterparty risk, and currency risk.

• You should not make any investment decision solely based on this document. Please read the relevant offering document carefully for further

fund details including risk factors.




37


JPMorgan Japan (Yen) Fund


• The Fund invests primarily in Japanese securities and other securities whose performance is linked to that of the Japanese economy. The

Fund will have limited RMB denominated underlying investments.

• The Fund is therefore exposed to diversification, currency and equity risks, and, for currency hedged classes, risks associated with the

hedging and class currency. For RMB hedged class, risks associated with the RMB currency and currency hedged classes risks. RMB is

currently not freely convertible and RMB convertibility from offshore RMB (CNH) to onshore RMB (CNY) is a managed currency process subject

to foreign exchange control policies of and restrictions imposed by the Chinese government. There can be no assurance that RMB will not be

subject to devaluation at some point. The Manager may, under extreme market conditions when there is not sufficient RMB for currency

conversion and with the approval of the Trustee, pay redemption monies and/or distributions in USD.


• Investors should not solely rely on this document to make any investment decision.




Wells Fargo (Lux) Worldwide Fund - U.S. High Yield Bond Fund (USD) A Acc


• The Wells Fargo (Lux) Worldwide Fund - U.S. High Yield Bond Fund (the fund) may invest extensively in below-investment-grade debt

securities. Such investments involve higher risk, including liquidity risk and the risk of issuer or counterparty default or insolvency, and you may

suffer significant losses.

• The fund focuses on a specific geographical region and may be subject to greater concentration risk than funds that invest in markets that are

broadly diversified.

• The investment decision is yours, but you should not invest in this product unless the intermediary who sells it to you has advised you that it is

suitable for you and has explained why, including how buying it would be consistent with your investment objectives.




38


Jupiter Global Fund - Jupiter European Growth (USD Hedged) L Acc


• Jupiter European Growth (“The Fund”) primarily invests in equities and equity-related securities in Europe including listed preference shares, listed convertible

unsecured loan stock, listed warrants and other similar securities.

• Such investments may be subject to investment risks, volatility risks, credit risks, liquidity risks, concentration risks and foreign exchange risks.

• The Fund may make use of any one or a combination of the following instruments for hedging or efficient portfolio managemen t purposes only: futures,

options and swaps and other financial derivative instruments (“FDI”). In adverse circumstances, the Fund’s use of financial derivative instruments may become

ineffective in hedging/efficient portfolio management and the Fund may suffer significant losses in relation to those investments.

• This investment involves risks which may result in loss of part or the entire amount of your investment. Investors should not base their investment decision on

this document alone and must refer to the Hong Kong offering documents of the Fund for further details (including risk factors) prior to investing.




39


First State Asian Equity Plus Fund (USD) I Dis


• Please refer to the Fund's offering document for the details of its ""Risk factors"", particularly the Emerging Markets Risks.

• The value of the Fund can be extremely volatile according to the change of market situation and could go down within a short period of time. It

is possible that the entire value of your investment could be lost.




PIMCO GIS - GLOBAL HIGH YIELD BOND (USD) E ACC

Risk Disclosure Statements

• The Fund may invest wholly through financial derivative instruments such as collateralised debt obligations, credit default swaps and asset-

backed securities in order to meet its investment objective and such investment policies or portfolio management techniques may as a result

lead to a higher volatility to the net asset value of the Fund.

• This investment may involve risks that could result in loss of part or entire amount of your investment.

• In making investment decisions, investors should not rely solely on this material.




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Fidelity Funds - Emerging Europe, Middle East And Africa Fund A-Acc-USD


• The Fidelity Funds is an umbrella fund with sub-funds investing in equities, debt, money market securities and/or other instruments, including

derivatives.

• These funds may be subject to the risks of investing in emerging markets which may be more volatile, and to concentration risks of investing in

a single or in a limited number of market(s) or sector(s).

• These funds may invest in non-investment grade bonds which may be more volatile and subject to greater credit and liquidity risks.

• These funds may invest in derivative instruments and / or structured products which may involve additional risks. (For example, leverage may

cause greater volatility.)

• Investors may suffer substantial loss of their investments in the funds.




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Fidelity Funds - Latin America Fund A-USD


• This fund invests primarily in Latin American equity securities.

• The fund is subject to equities and foreign currency risk.

• The fund’s investments are concentrated in Latin America and will have greater exposure to market, political, legal, economic and social risks

of Latin America and the value of the fund may be more volatile.

• This fund can invest in derivative instruments which may involve additional risks. (For example, leverage may cause greater volatility.)

• Investors may suffer substantial loss of their investments in the fund.

• Investor should not invest in the fund solely based on the information provided in this document and should read the prospectus (including

potential risks involved) for details.




First State China Growth Fund (USD) I


• The Fund is a portfolio that invests in securities issued by companies with either assets in, or revenues derived from the People’s Republic of

China.

• Other than the “Risk factors” of the Fund’s offering document - particularly the China Market Risk and Emerging Markets Risks, the Fund also

involves Single Country Risk.

• The value of the Fund can be extremely volatile according to the change of market situation and could go down within a short period of time. It

is possible that the entire value of your investment could be lost.




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BlackRock Global Funds - US Dollar Short Duration Bond Fund (USD) A3 MdisRISK DISCLOSURE STATEMENTS• The Fund invests in debt securities that are subject to both actual or perceived downgrading. The Fund may be affected by changes in prevailing interest rates and by credit quality considerations. The Fund's investments are concentrated in the US. This may result in greater volatility than more broad-based investments.• The Fund may use derivatives to hedge market and currency risk and for efficient portfolio management. However, derivatives will not be extensively or primarily used for investment purposes. In an adverse situation, the Fund may suffer significant losses from their derivatives usage for hedging and efficient portfolio management.• The value of a Fund can be volatile and could go down substantially within a short period of time. It is possible that the certain amount of your investment could be lost.• Investors should not only base on this marketing material alone to make investment decision.• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note: Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular request from client.

Jupiter Global Fund - Jupiter Dynamic Bond (USD-Hedged) L Q-IncRISK DISCLOSURE STATEMENTS• The Fund primarily invests in fixed interest securities which are subject to interest rate, credit and repayment risks. The Fund may fall in value and therefore investment in the Fund may suffer losses.• The Fund may make use of fixed-interest securities which are influenced by interest rates development in the capital market and macro-economic factors. Price changes also depend on the term and residual time to maturity of the fixed interest securities.• The Fund primarily invests in convertible securities. Investments in convertible bonds are subject to the same interest rate, credit and prepayment risks linked to ordinary corporate bonds. The values of convertible securities also may be affected by changes in the credit rating, liquidity or financial condition of the issuer. The Fund may also be exposed to the credit and insolvency risks of the issuers of securities.• The Fund may make use of any one or a combination of the following instruments for hedging or efficient portfolio management purposes only: futures, options and swaps and other financial derivative instruments (“FDI”). In adverse circumstances, the Fund’s use of FDI may become ineffective in hedging / efficient portfolio management and the Fund may suffer significant losses in relation to those investments.• The Fund may invest in assets which are not in its base currency, and therefore the investment returns may be affected by the fluctuations in currency rates and subject to foreign exchange risks.• Investors should not base their investment decision on this document alone and must refer to the Hong Kong offering documents of the Fund for further details (including risk factors) prior to investing.• The regulatory requirements of SFC state that investors should not invest in the product unless the intermediary who sells it to you has advised you that the product is suitable for you and explained how it is consistent with your investment objectives. Note: Fundsupermart.com is a self-directed online distributor and we only provide limited personal financial advisory services upon a particular request from client.

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First State Asian Quality Bond Fund (USD) I


• The Fund invests in debt securities of issuers organised, headquartered or having their primary business operations in Asia.

• The Fund invests in emerging markets which may involve a greater risk than developed markets including sharp price movements, liquidity

risk and currency risk. The Fund may invest in below investment grade and unrated debt securities. This exposes the Fund to greater liquidity

risk, default risk and price changes due to change in the issuer's creditworthiness. The Fund invests in fixed income securities which may be

impacted by movement in interest rates. It is possible that the entire value of your investment could be lost.

• For the monthly distributing Shares Class, any fees and expenses relating to this Share Class may be paid out of capital resulting in an

increase in distributable income. At times the dividend may be paid out of capital. This amounts to a partial return of an investor's original

investment, or from any capital gains attributable to that original investment, and may result in an immediate decrease of the Net Asset Value

per share.

• You should not base your investment decision solely on this document. You should not invest unless the intermediary who sells it to you has

advised you that the Fund is suitable for you and explained how it is consistent with your investment objectives.




PIMCO Global Bond (USD) E Acc


• The Fund may invest wholly through financial derivative instruments such as collateralised debt obligations, credit default swaps and asset-

backed securities in order to meet its investment objective and such investment policies or portfolio management techniques may as a result

lead to a higher volatility to the net asset value of the Fund.

• This investment may involve risks that could result in loss of part or entire amount of your investment.





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BlackRock Global Funds - Asian Tiger Bond Fund (USD) A3 Mdis


• The Fund invests in debt securities that are subject to risk of downgrading. The Fund is exposed to changes in prevailing interest rates and by credit quality

considerations. The Fund may invest in higher yielding bonds which may have higher risk of loss. Investment in certain emerging markets may subject the

Fund to additional risks arising from political, economic and market factors. The Fund also invests in bonds issued or guaranteed by governments or authorities

which may involve political, economic, default, or other risks, and in turn have an adverse impact on the Fund.

• Certain shares of the Fund pay dividends gross of expenses or from capital at the Directors’ discretion. Paying dividends gross of expenses may result in

more income being available for distribution; however these shares may effectively pay dividends from capital. Dividends paid from capital may amount to a

partial return of an investor’s original investment or capital gains. All declared dividends result in an immediate reduction in the NAV price of the share class on

the ex-dividend date.

• The Fund may use derivatives to hedge market and currency risk and for efficient portfolio management. However, derivatives will not be extensively or

primarily used for investment purposes. In an adverse situation, the Fund may suffer significant losses from their derivatives usage for hedging and efficient

portfolio management.

• The value of a fund can be volatile and could go down substantially within a short period of time. It is possible that a certain amount of your investment could

be lost.

• Investors should not base their investment decision on this marketing material alone.




BEA Union Investment Asian Bond And Currency Fund (USD) A Acc


• The Fund invests in emerging markets, which are subject to higher liquidity and volatility risks.

• The Fund may invest in lower-rated fixed income instruments, including below investment grade and non-rated debt securities, which are subject to greater

credit and liquidity risks than higher-rated securities.

• The Fund may enter into futures contracts and currency forward contracts for hedging and investment purposes. For futures contracts and currency forward

contracts entered into on an unhedged basis, the net total aggregate value of contract prices will not exceed 20% of the total net asset value of the Fund. Given

the leverage effect embedded in futures and currency forward contracts, the Fund may be exposed to significant losses.




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BlackRock Global Funds - Global High Yield Bond Fund (USD) A2


• The Fund invests in debt securities that are subject to both actual or perceived downgrading. The Fund may be affected by changes in prevailing interest

rates and by credit quality considerations. The Fund may be subject to a higher risk of default when it invests in distressed securities.

• Certain shares of the Fund pay dividends gross of expenses or from capital at the Directors’ discretion. Paying dividends gross of expenses may result in

more income being available for distribution; however these shares may effectively pay dividends from capital. Dividends paid from capital may amount to a

partial return of an investor’s original investment or capital gains. All declared dividends result in an immediate reduction in the NAV price of the share class on

the ex-dividend date.

• The Fund may use derivatives to hedge market and currency risk and for efficient portfolio management. However, derivatives will not be extensively or

primarily used for investment purposes. In an adverse situation, the Fund may suffer significant losses from their derivatives usage for hedging and efficient

portfolio management.

• The value of a fund can be volatile and could go down substantially within a short period of time. It is possible that a certain amount of your investment could

be lost.

• Investors should not only base on this marketing material alone to make investment decision.




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Allianz US Short Duration High Income Bond (USD) AM Dis


• The Fund is exposed to significant risks which include investment/general market, creditworthiness, counterparty and interest rate changes risks.

• The Fund may invest in high-yield (non-investment grade and unrated) investments and convertible bonds which may subject to higher risks, such as risk of a

call, creditworthiness, default, interest rate changes, general market and liquidity risks and therefore may increase the risk of loss of original investment.

• The Fund’s investments focus on the U.S, which may reduce risk diversification.

• The Fund may invest in financial derivative instruments ("FDI") for efficient portfolio management (including for hedging) which may expose to higher

counterparty, liquidity and market risks. The Fund will not invest extensively in FDI for investment purpose.

• Dividend payments may, at the sole discretion of the Investment Manager, be made out of the Fund’s capital or effectively out of the Fund’s capital which

represents a return or withdrawal of part of the amount investors originally invested and/or capital gains attributable to the original investment. This may result

in an immediate decrease in the NAV per share and the capital of the Fund available for investment in the future and capital growth may be reduced.

• This investment may involve risks that could result in loss of part or entire amount of investors’ investment.





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Disclaimer

Investment involves risk. The price of securities may go down as well as up, and under certain

circumstances an investor may sustain a total or substantial loss of investment. Past performance is

not necessarily indicative of the future or likely performance of the fund. Investors should read the

relevant fund's prospectus for further details including the risk factors before making any investment

decision. An Investor should make an appraisal of the risks involved in investing in these products and

should consult his/her own independent and professional advises to ensure that any decision made is

suitable with regards to his/her circumstances and financial position. The above materials are issued

by iFAST Platform Services (HK) Limited and have not been reviewed by the SFC. When the

investment returns of a fund are denominated in a foreign currency other than the USD/HKD, US/HK

dollar-based investors are exposed to exchange rate fluctuations. Funds that are invested in emerging

markets may involve a higher degree of risk, and may be more sensitive to price movements relative

to the developed markets.

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FSM Managed Portfolios - Monthly Investment Outlook · Source: Bloomberg and iFAST Compilations...

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Transcript of FSM Managed Portfolios - Monthly Investment Outlook · Source: Bloomberg and iFAST Compilations...