KEY INVESTMENT RISKS
Objective/Performance Risk: There is no guarantee that the Funds will achieve their objectives.
Currency Risk: These Funds invest in international markets which means they are exposed to changes in currency rates which could affect the value of the Funds.
Derivatives Risk: Derivatives are highly sensitive to changes in the value of the asset from which their value is derived. A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. This can increase the sizes of losses and gains, causing the value of your investment to fluctuate. When using derivatives, the Funds can lose significantly more than the amount they have invested in derivatives.
Changes in Interest Rates & Inflation Risk: Investments in bonds/money market securities are affected by interest rates and inflation trends which may negatively affect the value of the Funds.
Credit Ratings and Unrated Securities Risk: Bonds with a low credit rating or unrated bonds have a greater risk of default. These investments may negatively affect the value of the Funds.
Credit Risk: The issuer of a security held by the Funds may not pay income or repay capital to the Funds when due.
Emerging Markets Risk: Emerging Markets have additional risks due to less-developed market practices.
Shanghai-Hong Kong Stock Connect and/or the Shenzhen-Hong Kong Stock Connect (“Stock Connect”) risk: The Funds may invest in China A shares through Stock Connect programmes. These may be subject to regulatory changes and quota limitations. An operational constraint such as a suspension in trading could negatively affect the Funds’ ability to achieve their investment objectives.
Volcker Rule Risk: The Bank of New York Mellon Corporation or one of its affiliates (“BNYM”) has invested in these Funds. As a result of restrictions under the “Volcker Rule,” which has been adopted by U.S. Regulators, BNYM must reduce its shareholding percentage so that it constitutes less than 25% of the Funds within, generally, three years of the Funds’ establishment (which starts when the Funds’ manager begins making investments for the Funds). Risks may include: BNYM may initially own a proportionately larger percentage of the Funds, and any mandatory reductions may increase Fund portfolio turnover rates, resulting in increased costs, expenses and taxes. Details of BNYM’s investment in the Funds are available upon request.
CoCo’s Risk: Contingent Convertible Securities (CoCo’s) convert from debt to equity when the issuer’s capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.
Sustainable Funds Risk: The Funds follow a sustainable investment approach, which may cause them to perform differently than funds that have a similar objective but which do not integrate sustainable investment criteria when selecting securities. The Funds will not engage in stock lending activities and, therefore, may forego any additional returns that may be produced through such activities.
Investment in Infrastructure Companies Risk: The value of investments in Infrastructure Companies may be negatively impacted by changes in the regulatory, economic or political environment in which they operate.
Counterparty Risk: The insolvency of any institutions providing services such as custody of assets or acting as a counterparty to derivatives or other contractual arrangements, may expose the Funds to financial loss.
The value of investments can fall. Investors may not get back the amount invested. Income from investments may vary and is not guaranteed.