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Mutual Funds

Mutual Funds are managed by one or more professional fund managers. They invest in different assets according to a fund's stated investment objectives by using monies pooled from investors.

Benefits of Mutual Funds

Lean on the advice and recommendations of professional financial experts. When you invest in Mutual Funds, you are also entrusting your funds to savvy money managers who have many years of experience in picking assets and investment vehicles.

Investing in Mutual Funds also means gaining access to markets that may not be available to regular investors, for example, emerging markets or specialised assets. This gives investors the ability to invest in a broader range of assets and markets.

Mutual Funds are usually diversified. Depending on its investment objectives, Mutual Funds may invest in a range of assets across different industries, growth stages or geographical regions, allowing for a more optimal distribution of risks.

Trade Now with UOB Kay Hian

We offer low, strictly upfront sales charges with no hidden costs, ongoing maintenance charges or platform fees.

We offer a broad range of mutual funds managed by most top-tier asset management companies. The mutual funds we offer also cater to a wide range of asset classes for different investors with diverse investment objectives and time horizons.

Tap the knowledge of financial experts who will share their investment views through commentaries, research articles and newsletters. To assist you in your investment decisions, we provide you with deep, insightful analysis to help you stay abreast of the latest developments.

Generic risk warning and disclaimer

Investment involves risk. As a general rule, you should only trade in financial products that you are familiar with and understand the risk associated with them. The risk warning described in each financial product below is not exhaustive, you should carefully consider your investment experience, financial situation, investment objective, risk tolerance level and consult your independent financial adviser as to the suitability of your situation prior making any investment. It does not constitute any offer or solicitation of offer to subscribe, transact or redeem any investment product.

Investment in Mutual Funds and Unit Trusts involve substantial risks including market risk, liquidity risk and the risk that the issuer will be unable to satisfy its obligations under Mutual Funds and Unit Trusts. Do not invest in the Mutual Funds and Unit Trusts unless you fully understand and are willing to assume the risks associated with it. You should consider carefully whether Mutual Funds and Unit Trusts are suitable for you in light of your experience, objectives, financial position and other relevant circumstances. The performance of the Mutual Fund and Unit Trust will be affected by a number of risk factors, including but not limited to the following, Investor should read the relevant offering document carefully for further fund details including risk factors.

GENERAL RISK FACTORS
Market Risk

The Fund's investments are subject to the risks inherent in all securities i.e. the value of holdings may fall as well as rise. In addition, the Fund may be subject to investment holding limits imposed on investors by certain markets in which the Fund invests. Investment involves risks. Past performance is no guide to future performance of the funds.

Liquidity Risk

Liquidity risk exists when particular investments are difficult to purchase or sell. A Fund's investments in illiquid securities may reduce the returns of the Fund because it may be unable to sell the illiquid securities at an advantageous time or price. Funds with principal investment strategies that involve foreign securities, derivatives or securities with substantial market and/or credit risk tend to have the greatest exposure to liquidity risk.

Currency Risk

The Fund may be denominated in foreign currency for example US dollars. The assets in which it is invested and the income from them will or may be quoted in other currencies. The performance of the Fund's assets will therefore be affected by movements in the exchange rate between the currencies in which the assets are held and the US dollars. Since the Manager and the Investment Manager aim to maximise returns in US dollars terms, investors whose base currency is not US dollars may be exposed to additional currency risk. The performance of the Fund's holdings may also be affected by changes in exchange control regulations.

Exchange Rate Control Risk

Government and monetary authorities may impose (as some have done in the past) exchange controls that could adversely affect an applicable exchange rate. As a result, investors may receive less interest or principal than expected or no interest or principal.

Not a Time Deposit

The Investment Product is not equivalent to time deposit and is not protected by the Deposit Protection Scheme in Hong Kong.

Not SFC Authorized Products

If this product is not SFC Authorized Products, only the Professional Investors defined under SFO may invest.

Event Risk

The product credit rating might be downgraded if there are some major event happen to the issuer.

Lack of Transparency

Most Investment Products are traded over-the-counter, not exchange traded products, so the price of Investment Products are lacking of transparency compared with exchange traded products. In addition, the liquidity risk for OTC trading products is much higher than the exchange traded products.

Credit Risk

A Fund could lose money if the issuer or guarantor of a Fixed Income Security, or the counterparty to a derivatives contract, repurchase agreement or a loan of portfolio securities, is unable or unwilling to make timely principal and/or interest payments, or to otherwise honour its obligations. Securities are subject to varying degrees of credit risk, which are often reflected in credit ratings. Municipal bonds are subject to the risk that litigation, legislation or other political events, local business or economic conditions, or the bankruptcy of the issuer could have a significant effect on an issuer's ability to make payments of principal and/or interest.

Geopolitical Risk

Geopolitical conditions can also affect the product price and yield. Terrorist acts and threats and the response of governments in the UK, the U.S.A. and elsewhere to them could affect the level of economic activity.

Concentration Risk

This Fund is highly specialised. Even though the portfolio is well diversified in terms of the number of holdings, investors should be aware that this Fund is likely to be more volatile than a broad-based fund, such as a global equity fund, as it is more susceptible to fluctuations in value resulting from adverse conditions in the sectors in which it invests.

Hedging Risk

The Manager and the Investment Manager are permitted, but not obliged, to use hedging techniques to attempt to offset market and currency risks. There is no guarantee that hedging techniques will achieve the desired result.

Derivatives Risk

Participation in warrants, futures, options and forward contracts involves potential investment returns which the Fund would not receive, and risks of a type, level or nature to which the Fund would not be subject, in the absence of using these instruments. If the direction of movement of the securities or money markets is for or against the prediction of the Manager and/or the Investment Manager, the Fund may be placed in a position which is better or worse than that in which it would have been if these instruments had not been used.

Suspension of Share Dealings Risk

Investors are reminded that in certain circumstances their right to redeem or switch Shares may be suspended. Investors should read the relevant offering document carefully for further fund details including risk factors.

Political, Economic and Social Risk

All financial markets may at times be adversely affected by changes in political, economic and social conditions.

Legal, Tax and Regulatory Risk

Legal, tax and regulatory changes could occur during the term of the Fund which may adversely affect it. If any of the laws and regulations currently in effect should change or any new laws or regulations should be enacted, the legal requirements to which the Fund and the investors may be subject could differ materially from current requirements and may materially and adversely affect the Fund and the investors.

Custodial Risk

The Trustee may appoint directly or indirectly custodians or sub-custodians in local markets for the purposes of safekeeping of assets in those markets. The Trustee's liability shall not be affected by the fact that it has entrusted to a third party some or all of the assets in its safekeeping. The Trustee must exercise care and diligence in the selection and appointment of a custodian or sub-custodian as a safekeeping agent so as to ensure that the custodian or sub-custodian has and maintains the expertise, competence and standing appropriate to discharge the responsibilities concerned and the Trustee must maintain an appropriate level of supervision over the custodian or sub-custodian and make appropriate enquiries from time to time to confirm that the obligations of the custodian or sub-custodian continue to be competently discharged. The Trustee will not however be responsible for any loss suffered by the Fund by reason only of the liquidation, bankruptcy or insolvency of any such custodian or sub-custodian which are not member of the group of companies to which the Trustee belongs. Where the Fund invests in markets where custodial and/or settlement systems are not fully developed, the assets of the Fund which are traded on such markets and which have been entrusted to custodians or sub-custodians, in circumstances where the use of custodian or sub-custodians is necessary, may be exposed to custodial risk and the Trustee shall have no liability in respect of such risks. The Trustee will endeavour to register the Fund's assets in the name of the Trustee or the Fund and seek to recover losses of securities and investments arising from the default of the third party appointed by the Trustee. The Trustee will not however be responsible for any cash, securities and/or other assets comprising the assets of the Fund which are not deposited with or held to the Trustee's order. In particular, the Trustee will not be responsible for any cash, securities and/or other assets placed with co-custodians, brokers or any other party outside the Trustee's global custodian network.

FIXED INCOME RELATED RISK
Issuer Risk

The value of a security may decline for a number of reasons which directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer's goods or services.

Interest Rate Risk

As nominal interest rates rise, the value of Fixed Income Securities held by a Fund is likely to decrease. Securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Inflation-indexed securities decline in value when real interest rates rise. In certain interest rate environments, such as when real interest rates are rising faster than nominal interest rates, inflation-indexed securities may experience greater losses than other fixed income securities with similar durations.