The Fund invests primarily in high yield fixed and floating rate corporate debt instruments and government debt / sovereign debt instruments globally in developed and emerging/developing markets.

The Fund is subject to risks relating to investment, credit and counterparty, interest rate fluctuations, volatility and liquidity, downgrading, sovereign debt, valuation, credit rating and currency risks. The Fund’s investments are concentrated in sub-investment grade debt instruments which carry greater liquidity and credit risks than investment grade instruments as well as increased risk of loss of principal and interest.

Investment in emerging/developing markets may involve increased risks, including liquidity, currency risks/control, political and economic uncertainties, legal and taxation, settlement, custody, and volatility risks, while investment in certain countries within the Eurozone may involve sovereign debt risks.

RMB tranches are subject to RMB currency risks. RMB is currently not freely convertible and conversion of RMB is subject to foreign exchange control policies and restrictions. There is no guarantee that RMB will not be subject to depreciation. Under exceptional circumstances, payment of realisation proceeds and/or dividend payment from underlying investments to the Fund in RMB may be delayed.

The Fund may invest in derivatives for investment, efficient portfolio management and/or for hedging purposes which may involve counterparty/credit, liquidity, valuation, volatility and over-the-counter transaction risks. Exposure to derivatives may lead to a high risk of significant loss by the Fund.

The Fund’s investment in debt instruments with loss-absorption features (“LAP”) are subject to risks of contingent write-down or contingent conversion to ordinary shares upon occurrence of complex and unpredictable trigger events which may result in higher price volatility and total loss of amount invested. LAP may also be exposed to liquidity, valuation and sector concentration risk.

Dividends, at the discretion of the Directors, may be paid out of unrealised capital gains and/or gross income while charging some or all fees and expenses out of capital (which represent effectively paying dividends out of capital), resulting in an increase in distributable income. The Fund may also pay dividends directly out of capital. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or any capital gains attributable to that original investment and results in an immediate reduction of the Fund’s net asset value per share.

Investors may suffer substantial loss of their investments in the Fund.