Barings USD Liquidity Fund

Important Risk Disclosures

• Funds quoted on the website may directly or indirectly invest in various instruments including deposits, equities, debt securities and derivatives.
• Some funds may invest in equities which are subject to risks, such as investment, equities and equity-related securities, counterparty, liquidity, valuation and currency risks as well as risks of investing in convertible bonds and master/feeder fund structure.
• Some funds’ investment in small and mid-capitalisation companies may be subject to greater risks than larger companies, which include higher liquidity, volatility, economic and organisational risks.
• Some funds may invest in debt securities which are subject to risks, such as investment, credit, interest rate fluctuation, volatility, liquidity, concentration, downgrading, sovereign debt, valuation, credit rating, counterparty, currency risks and the risks of investing in convertible bonds as well as risks associated with collateralized and/or securitized products.
• Some funds’ investment in sub-investment grade or unrated debt securities may be  subject to higher liquidity, volatility and credit risks than higher-rated debt securities, as well as increased risk of loss of principal and interest. Some funds’ investment in securities issued or guaranteed by governments may be exposed to political, social and economic risks and may suffer significant losses when there is a default of sovereign and/or quasi sovereign debt issuers.
• Some funds’ investment in senior secured debt instruments are subject to credit/default risk of the issuer of the debt instruments and there is no guarantee of the repayment of principal of investment from the collateral pledged for the debt instruments in case of default.
• Some funds may invest in single region/sector and the value of the funds may be more volatile. In particular, Agricultural and soft commodities markets may be adversely affected by natural events and human errors.
• Some funds may invest in emerging markets which is subject to increased risks, including liquidity, currency/currency control, political and economic uncertainties, legal and taxation, settlement, custody and volatility risks, and the risk of foreign exchange control and restrictions on capital transactions and payments under certain material adverse circumstances affecting certain countries. Investment in certain countries within the Eurozone may involve sovereign debt risks. Investing in Russia may be subject to special risks, including economic and political unrest, lack of transparent and reliable legal system and lower standard of corporate governance.
• The Manager integrates environmental, social and governance (ESG) information into the investment process, which may affect some funds’ investment performance and, as such, may perform differently compared to similar collective investment schemes.
• Some funds may invest in derivatives for investment or efficient portfolio management (including hedging) purposes which may involve counterparty/credit, valuation, volatility and over-the-counter transactions risks. Exposure to derivatives may lead to a high risk of significant loss by the funds.
• Some funds offer RBM classes and RMB classes 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 funds in RMB may be delayed.
• Some funds’ 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.
• Barings USD Liquidity Fund may be subject to the risks of investment, liquidity fee, redemption gate and suspension of redemption, credit, interest rate, negative yield environment, downgrading, valuation, credit rating, sovereign debt as well as risks associated with repurchase and reverse repurchase agreements. This fund is an investment fund and is not in the nature of a bank deposit. There is no guarantee of repayment of principal. Valuation of investments of this fund using the amortised cost method (“Constant NAV”) may be higher or lower than the valuation based on the market price of the investments (“Market Price NAV”). Investors subscribe or redeem using the share price based on Constant NAV may be higher or lower than the price based on Market Price NAV. Sudden movements in interest rates or credit concerns may also cause material deviations in the value of investments between these two methodologies. This fund shall use Constant NAV for subscription and redemption, save that where the difference between Constant NAV and Market Price NAV is more than 20 basis point, this fund shall use Market Price NAV instead. Investors may suffer losses when one methodology is used over another. Further, when Constant NAV is used, it is not intended to maintain a stable NAV per share and shares may fall in value.  This fund is authorised and regulated as a Low Volatility Net Asset Value Money Market Fund (“LVNAV MMF”) pursuant to the relevant European Union Regulation. This fund is subject to the risk of change of LVNAV MMF status to a Variable Net Asset Value Money Market Fund or, if the Directors deem it appropriate because of adverse political, economic, fiscal or regulatory changes affecting this fund, redeem all shares of this fund and investors may suffer a loss.
• Some funds may pay distribution, at the discretion of the Managers, (i) out of capital, (ii) out of capital gains, or (iii) out of gross income while fees/expenses may be charged to the capital.  Items (ii) and (iii) result in distribution effectively paid out of capital. Payment of distribution 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 and would result in an immediate reduction in the net asset value of the funds.
• Investors may suffer substantial loss of their investments in the funds.

Important information

This Internet site is created by Baring Asset Management (Asia) Limited and is only provided as a reference service. It has not been reviewed by the Securities and Futures Commission of Hong Kong. Investors should not only base on the information available on this website alone to make investment decisions.  You are advised to seek appropriate professional advice.

Investment involves risks. The value of investments and any income generated may go down as well as up and is not guaranteed. Past performance is not a guide to future performance. Where yields have been quoted, they are not guaranteed. Investors should read all the relevant documents including Reports and Accounts and Offering Documents, including the risk factors.

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