Global Alliance Partners Funds SICAV - Quam Plus Greater China UCITS Fund

1. Quam Plus Greater China UCITS Fund (the “Sub-Fund”) is a sub-fund of Global Alliance Partners Funds SICAV, which is an open-ended investment company with variable capital (société d’investissement à capital variable) domiciled in Luxembourg and its home regulator is the Commission de Surveillance du Secteur Financier (“CSSF”).
2. The Sub-Fund invests primarily (i.e. at least 70% of its net asset value) in equity securities of Greater China companies which involve equity market risk, risk associated with small-capitalisation / mid-capitalisation companies, risk associated with high volatility of the equity market in the Greater China region, as well as, risk associated with regulatory requirements of the equity market in the Greater China region. 
3. The Sub-Fund’s investment in Greater China region which is emerging market, and thus, involve increased risks not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility. 
4. The Sub-Fund is also subject to concentration risk due to its concentration in Greater China region, and therefore, its value may be more volatile than that of a fund having a more diverse portfolio of investments. 
5. The Sub-Fund are subject to other key risk factors including currency risk, risks of investing in convertible bonds, risks associated with performance fee charged by the Sub-Fund, risks associated with investment in financial derivative instruments and risks associated with RMB share classes. 
6. Investors should read the offering documents of the Sub-Fund for details including the risk factors.  Investors should not make investment decision based on the information available on this website alone. 

The investment objective of the Sub-Fund is to maximize long-term capital appreciation through investments in securities issued by companies with substantial business in, exposure to or deriving their revenue from the Greater China region.

Investors shall read the offering documents to understand the investment strategy adopted by the Sub-Fund in achieving the investment objective.

Investment involves risks. Please refer to the offering documents for details including the risk factors.

General investment risk

• The Sub-Fund’s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Sub-Fund may suffer losses. There is no guarantee of the repayment of principal.

Risks associated with equities

• Equity market risk: The Sub-Fund’s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.
• Risk associated with small-capitalisation / mid-capitalisation companies: The stock of small-capitalisation/ mid-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general.
• Risk associated with high volatility of the equity market in the Greater China region: High market volatility and potential settlement difficulties in the markets may also result in significant fluctuations in the prices of the securities traded on such markets and thereby may adversely affect the value of the Sub-Fund.
• Risk associated with regulatory requirements of the equity market in the Greater China region: Securities exchanges in the Greater China region typically have the right to suspend or limit trading in any security traded on the relevant exchange. The government or the regulators may also implement policies that may affect the financial markets. All these may have a negative impact on the Sub-Fund.

Concentration risk

• The Sub-Fund invests primarily in securities issued (i) by companies incorporated in Greater China or (ii) companies that have a substantial portion of their business, or derive most of their revenue from, or have most of their operating assets located in, or expanding business in Greater China or (iii) companies that are deemed by the Investment Manager, based on objective criteria, to have substantial exposure to Greater China. The value of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio of investments.
• The value of the Sub-Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the Greater China market.

Emerging market risk

• The Sub-Fund invests in the Greater China region, which may include investments in emerging markets. Investing in emerging markets may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.

Currency risk

• Underlying investments of the Sub-Fund may be denominated in currencies other than the base currency of the Sub-Fund. The net asset value of the Sub-Fund may be affected unfavorably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls.

Risks of investing in convertible bonds

• Convertible bonds are a hybrid between debt and equity, permitting holders to convert into shares in the company issuing the bond at a specified future date. As such, convertibles will be exposed to equity movement and greater volatility than straight bond investments. Investments in convertible bonds are subject to the same interest rate risk, credit risk, liquidity risk and prepayment risk associated with comparable straight bond investments. 

Risks associated with performance fee charged by the Sub-Fund

• Performance fees may encourage the manager of the Sub-Fund to make riskier investments than would be the case in the absence of a performance-based incentive system.
• Given there is no equalisation arrangement for the calculation of the performance fee, a redeeming investor may still incur a performance fee in respect of his investments, even though he has suffered a loss of investment capital.
• In addition, performance fees may be paid on unrealised gains which may never be realised by the Sub-Fund.

Risks associated with investment in financial derivative instruments (“FDI”)

• Risks associated with FDI include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The leverage element/component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the Sub-Fund. Exposure to FDI may lead to a high risk of significant loss by the Sub-Fund.
• The Sub-Fund may use FDI for currency hedging purposes, however, the Sub-Fund's use of derivatives may become ineffective in such endeavours and the Sub-Fund may suffer significant losses.

Risks associated with RMB share classes

• RMB is currently not freely convertible and is subject to foreign exchange control policies and restrictions.
• There can be no assurance that RMB will not be subject to depreciation. Any depreciation of RMB could adversely affect the value of investor’s investment in share classes denominated in RMB.
• Although offshore RMB (CNH) and onshore RMB (CNY) are the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors.
• Non-RMB based investors in share classes denominated in RMB may have to convert HK dollar or other currency(ies) into RMB when investing in share classes denominated in RMB and subsequently convert the RMB redemption proceeds and/or dividend payment (if any) back to HK dollar or such other currency(ies). Investors will incur currency conversion costs and may suffer losses depending on the exchange rate movements of RMB relative to HK dollar or such other currency(ies).
• Under exceptional circumstances, payment of redemptions in RMB may be delayed due to the exchange controls and restrictions applicable to RMB.