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Matthews Pacific Tiger Fund

Snapshot
  • Seeks alpha in Asia’s emerging economies by capitalizing on the rising Asia consumer
  • High-conviction equity portfolio focused on sustainable growth companies
  • All-cap fundamental approach driven by on-the-ground, proprietary research

30/04/2010

Inception Date

0.53%

YTD Return (USD)

(as of 28/03/2023)

$19.13

NAV (USD)

(as of 28/03/2023)

+0.07

1 Day NAV Change

(as of 28/03/2023)

Objective

Seeks to achieve long term capital appreciation.

Sustainability

The Sub-Fund promotes environmental and social characteristics according to Article 8 of SFDR. Furthermore, the Sub-Fund uses both activity- and norm-based exclusions. Information relating to the environmental and social characteristics of this Sub-Fund is available in the prospectus.

Strategy

The Fund seeks to achieve its investment objective by investing, directly or indirectly, at least 65% of its total net assets, in equities of companies located in Asia, and may invest the remainder of its net assets in other permitted assets on a worldwide basis. For the purpose of this policy, Asia includes China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam.

Risks

The value of an investment in the Fund can go down as well as up and possible loss of principal is a risk of investing. Investments in international, emerging and frontier market securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation, which may adversely affect the value of the Fund's assets. The Fund invests in holdings denominated in foreign currencies, and is exposed to the risk that the value of the foreign currency will increase or decrease. The Fund invests primarily in equity securities, which may result in increased volatility.

These and other risks associated with investing in the Fund can be found in the prospectus.

Fund Facts
Inception Date 30/04/2010
Fund Assets $368.25 million (28/02/2023)
Base Currency USD
ISIN: LU0491816475 (USD) LU0594555756 (GBP) LU0491816129 (EUR) LU1576347550 (JPY)
Bloomberg Symbol MATAPTI:LX (USD) MATAPGI:LX (GBP) MAPTFIE:LX (EUR) MPACTIJ:LX (JPY)
Benchmark MSCI All Country Asia ex Japan Index
Geographic Focus Asia Ex Japan: Consists of all countries and markets in Asia, excluding Japan but including all developed, emerging and frontier countries and markets in Asia
SFDR Classification Article 8
Fees & Expenses
Management Fee 0.75%
Total Expense Ratio As of 31/03/2022 0.90% ( USD ) 0.90% ( GBP ) 0.90% ( EUR ) 0.90% ( JPY )

Performance

  • Monthly
  • Quarterly
  • Calendar Year
  • Rolling 12 Month
    Returns
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As of 28/02/2023
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Pacific Tiger Fund (USD)
-7.05% -0.10% 0.53% -15.39% 2.82% -0.18% 4.25% 5.18% 30/04/2010
MSCI All Country Asia ex Japan Index (USD)
-6.81% 0.71% 0.85% -14.07% 1.62% -0.61% 3.79% 4.41%
Matthews Pacific Tiger Fund (GBP)
-5.48% -0.92% -0.04% -6.37% 4.96% 2.51% 6.66% 7.50% 28/02/2011
MSCI All Country Asia ex Japan Index (GBP)
-5.24% -0.94% 0.20% -4.76% 3.46% 1.99% 6.17% 6.45%
Matthews Pacific Tiger Fund (JPY)
-2.55% -1.67% 4.24% 0.16% 10.98% 4.85% n.a. 7.49% 27/03/2017
MSCI All Country Asia ex Japan (JPY)
-2.39% -1.69% 4.11% 1.63% 9.84% 4.36% n.a. 7.44%
Matthews Pacific Tiger Fund (EUR)
-5.17% -2.43% 1.03% -10.73% 4.00% n.a. n.a. 2.08% 30/04/2019
MSCI All Country Asia ex Japan Index (EUR)
-4.57% -2.22% 1.49% -8.98% 2.82% n.a. n.a. 1.88%
As of 31/12/2022
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Pacific Tiger Fund (USD)
-0.63% 9.62% -21.59% -21.59% -0.28% -0.31% 4.59% 5.21% 30/04/2010
MSCI All Country Asia ex Japan Index (USD)
-0.14% 11.43% -19.36% -19.36% -1.15% -0.34% 3.87% 4.40%
Matthews Pacific Tiger Fund (GBP)
-0.87% 0.55% -12.16% -12.16% 2.82% 2.03% 7.73% 7.61% 28/02/2011
MSCI All Country Asia ex Japan Index (GBP)
-1.14% 3.40% -9.19% -9.19% 2.08% 2.03% 7.04% 6.52%
Matthews Pacific Tiger Fund (JPY)
-5.67% -0.11% -10.24% -10.24% 6.41% 2.89% n.a. 6.94% 27/03/2017
MSCI All Country Asia ex Japan (JPY)
-5.57% 1.57% -7.60% -7.60% 5.45% 2.86% n.a. 6.91%
Matthews Pacific Tiger Fund (EUR)
-3.43% 0.09% -16.78% -16.78% 1.44% n.a. n.a. 1.89% 30/04/2019
MSCI All Country Asia ex Japan Index (EUR)
-3.66% 2.28% -14.07% -14.07% 0.53% n.a. n.a. 1.56%
For the years ended December 31st
Name 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Matthews Pacific Tiger Fund (USD)
-21.59% -3.08% 30.48% 11.18% -10.71% 39.47% -0.29% -1.91% 11.22% 4.86%
MSCI All Country Asia ex Japan Index (USD)
-19.36% -4.46% 25.36% 18.52% -14.12% 42.08% 5.76% -8.90% 5.11% 3.34%
Matthews Pacific Tiger Fund (GBP)
-12.16% -1.74% 25.96% 7.87% -5.71% 27.14% 19.96% 3.14% 18.00% 2.56%
MSCI All Country Asia ex Japan Index (GBP)
-9.19% -3.58% 21.49% 13.94% -8.78% 29.78% 26.15% -3.63% 11.65% 1.42%
Matthews Pacific Tiger Fund (JPY)
-10.24% 8.30% 23.94% 9.79% -12.83% n.a. n.a. n.a. n.a. n.a.
MSCI All Country Asia ex Japan (JPY)
-7.60% 6.56% 19.10% 17.39% -16.36% n.a. n.a. n.a. n.a. n.a.
Matthews Pacific Tiger Fund (EUR)
-16.78% 5.06% 19.40% n.a. n.a. n.a. n.a. n.a. n.a. n.a.
MSCI All Country Asia ex Japan Index (EUR)
-14.07% 2.79% 15.01% n.a. n.a. n.a. n.a. n.a. n.a. n.a.
For the period ended 31/12/2022
Name 2022 2021 2020 2019 2018 Inception Date
Matthews Pacific Tiger Fund (USD)
-21.59% -3.08% 30.48% 11.18% -10.71% 30/04/2010
MSCI All Country Asia ex Japan Index (USD)
-19.36% -4.46% 25.36% 18.52% -14.12%
Matthews Pacific Tiger Fund (GBP)
-12.16% -1.74% 25.96% 7.87% -5.71% 28/02/2011
MSCI All Country Asia ex Japan Index (GBP)
-9.19% -3.58% 21.49% 13.94% -8.78%
Matthews Pacific Tiger Fund (JPY)
-10.24% 8.30% 23.94% 9.79% -12.83% 27/03/2017
MSCI All Country Asia ex Japan (JPY)
-7.60% 6.56% 19.10% 17.39% -16.36%
Matthews Pacific Tiger Fund (EUR)
-16.78% 5.06% 19.40% n.a. n.a. 30/04/2019
MSCI All Country Asia ex Japan Index (EUR)
-14.07% 2.79% 15.01% n.a. n.a.

Source: Brown Brothers Harriman (Luxembourg) S.C.A.

Since inception performance for share classes with less than one year of history represents actual performance, not annualised. In addition, for share classes less than a year old, Year to Date Return is calculated since inception. Where no past performance is shown there was insufficient data available in that year to provide performance.

Performance details provided are based on a NAV-to-NAV basis with any dividends reinvested, and are net of management fees and other expenses. Performance data has been calculated in the respective currencies stated above, including ongoing charges and excluding subscription fee and redemption fee you might have to pay.

All performance quoted represents past performance and is not indicative of future performance. Investors may not get back the full amount invested. Investors investing in funds denominated in non-local currency should be aware of the risk of currency exchange fluctuations that may cause a loss of principal.

Additional performance, attribution, liquidity, value at risk (VaR), security classification and holdings information is available on request for certain time periods.

Portfolio Characteristics

(as of 28/02/2023)
Fund Benchmark
Number of Positions 55 1,185
Weighted Average Market Cap $103.8 billion $106.5 billion
Active Share 69.3 n.a.
P/E using FY1 estimates 21.6x 12.8x
P/E using FY2 estimates 17.8x 11.7x
Price/Cash Flow 13.7 6.8
Price/Book 3.1 1.5
Return On Equity 17.3 15.6
EPS Growth (3 Yr) 16.2% 16.5%

Sources: Factset Research Systems, Inc.

Risk Metrics (3 Yr Return)

(as of 28/02/2023)
1.39%
Alpha
1.08
Beta
110.37%
Upside Capture
102.88%
Downside Capture
0.08
Sharpe Ratio
0.26
Information Ratio
4.67%
Tracking Error
96.65

Fund Risk Metrics are reflective of Class I USD ACC shares.

Sources: Zephyr StyleADVISOR

Top 10 Holdings

(as of 28/02/2023)
Name Sector Country % Net Assets
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 5.9
Samsung Electronics Co., Ltd. Information Technology South Korea 4.5
Tencent Holdings, Ltd. Communication Services China/Hong Kong 3.8
Alibaba Group Holding, Ltd. Consumer Discretionary China/Hong Kong 3.5
ICICI Bank, Ltd. Financials India 3.1
Hong Kong Exchanges & Clearing, Ltd. Financials China/Hong Kong 3.1
Central Pattana Public Co., Ltd. Real Estate Thailand 2.9
Meituan Consumer Discretionary China/Hong Kong 2.8
AIA Group, Ltd. Financials China/Hong Kong 2.8
Yum China Holdings, Inc. Consumer Discretionary China/Hong Kong 2.7
TOTAL 35.1

Top 10 holdings may combine more than one security from the same issuer and related depositary receipts.

Source: Brown Brothers Harriman (Luxembourg) S.C.A

Portfolio Breakdown (%)

(as of 28/02/2023)
  • Sector Allocation
  • Country Allocation
  • Asset Type Breakdown
  • Market Cap Exposure
Sector Fund Benchmark Difference
Information Technology 24.3 22.8 1.5
Consumer Discretionary 20.7 14.5 6.2
Financials 16.9 21.1 -4.2
Consumer Staples 8.6 5.3 3.3
Real Estate 7.7 3.9 3.8
Industrials 5.9 6.6 -0.7
Communication Services 5.2 10.3 -5.1
Materials 3.5 5.5 -2.0
Health Care 2.7 3.9 -1.2
Utilities 1.8 2.6 -0.8
Energy 0.0 3.5 -3.5
Cash and Other Assets, Less Liabilities 2.6 0.0 2.6

Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com.

Country Fund Benchmark Difference
China/Hong Kong 48.0 43.8 4.2
Taiwan 15.6 17.0 -1.4
India 13.7 14.9 -1.2
South Korea 10.3 13.3 -3.0
Thailand 2.9 2.3 0.6
Indonesia 2.2 2.2 0.0
Philippines 2.1 0.8 1.3
Singapore 1.6 3.9 -2.3
Vietnam 1.1 0.0 1.1
Malaysia 0.0 1.7 -1.7
Cash and Other Assets, Less Liabilities 2.6 0.0 2.6

Not all countries are included in the benchmark index(es).

Asset Type Fund
Common Equities and ADRs 97.4
Cash and Other Assets, Less Liabilities 2.6
Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 53.9 57.3 -3.4
Large Cap ($10B-$25B) 22.5 21.5 1.0
Mid Cap ($3B-$10B) 12.2 19.7 -7.5
Small Cap (under $3B) 8.8 1.6 7.2
Cash and Other Assets, Less Liabilities 2.6 0.0 2.6

Source: FactSet Research Systems.

Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Percentage values may be derived from different data sources and may not be consistent with other Fund literature.

ESG Characteristics

(as of 31/12/2022)
  • Business Involvement
  • Sustainability Attributes
Name Fund Benchmark Difference
Controversial Weapons
Fund Coverage: 99.4% Benchmark Coverage: 96.5%
0.0 0.3 -0.3
Tobacco
Fund Coverage: 99.4% Benchmark Coverage: 99.8%
0.0 0.4 -0.4
Name Fund Benchmark Difference
UN Global Compact Violators
Fund Coverage: 100.0% Benchmark Coverage: 100.0%
0.0 0.7 -0.7
Board Diversity
Fund Coverage: 100.0% Benchmark Coverage: 99.1%
20.3 20.4 -0.2

Board Diversity: Represents the weighted average ratio of female board members to male board members in investee companies.
Tobacco: Represents companies that generate revenue from tobacco manufacturing or production or that generate more than 50% of revenue from tobacco retail.
UN Global Compact Violators: Represents companies that have been assessed as failing to comply with the 10 United Nations Global Compact Principles by ISS-ESG Norms-Based Research. Different ESG research providers may come to different conclusions on the severity of the violation.

Source: Sustainalytics, Factset, MSCI, Matthews Asia.

GHG Intensity

(as of 31/12/2022)

Fund Coverage: 99.44; Benchmark Coverage: 98 as of 31/12/2022

GHG Intensity: Represents the normalized portfolio’s total weighted average (scope 1 + scope 2) carbon emissions intensity, using the most recently available data (emissions data from 2020). Carbon intensity represents the issuer’s total carbon emissions per EUR million of revenue (tCO2e divided by EUR million in revenue).

Source: Sustainalytics, MSCI, Matthews Asia.

Sustainability-related Disclosures

This Fund Yes No
Complies with Article 8 of SFDR  
Investment process integrates ESG factors and sustainability risks based on proprietary and third-party research  
Applies norms- and activity-based exclusions  
Promotes environmental and social characteristics  
Has a sustainable investment objective  
Conducts engagement  
Exercises Voting Rights  

Investors should not invest in the Fund solely based on the information in this material alone. Please refer to the Prospectus for further details of the Fund’s investment objective and risk factors.

For more information, please refer to our Responsible Investment and Stewardship Policy and our Sustainable Finance Disclosure Regulation – Article 10.

Ratings

  • OVERALL
  • 3 YEAR
  • 5 YEAR
  • 10 YEAR
(as of 03/02/2021)

View the Report

Past performance is no guarantee of future results. High ratings and rankings does not assure favorable performance.

The Elite RatingTMsystem is proprietary to FundCalibre Ltd, but should not be taken as a recommendation.

Overall Morningstar RatingTM is reflective of the noted share class. Fund ratings represent an opinion only and are not a recommendation to buy or sell any fund. Copyright ©2023 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is provided for reference purposes only.

The Overall Morningstar®️ Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and (if applicable) ten-year ratings.

The Morningstar Analyst Rating™ is subjective in nature and reflects Morningstar's current expectations of future behavior of the fund. Morningstar does not guarantee that a fund will perform in line with its Rating. Likewise, the Rating should not be seen as a guarantee/assessment of the creditworthiness of a fund or its underlying securities and should not be used as the sole basis for making any investment decisions.

Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

Portfolio Managers

Sharat  Shroff, CFA photo
Sharat Shroff, CFA

Lead Manager

Inbok  Song photo
Inbok Song

Lead Manager

Winnie  Chwang photo
Winnie Chwang

Co-Manager

Andrew  Mattock, CFA photo
Andrew Mattock, CFA

Co-Manager

Commentary

Period ended 31 December 2022

For the year ending 31 December 2022, the Matthews Pacific Tiger Fund returned -21.59%, while its benchmark, the MSCI All Country Asia ex Japan Index returned -19.36%. For the fourth quarter of the year, the Fund returned 9.62% versus 11.43% for the benchmark.

Market Environment:

2022 was a tough year for Asian equities, although the year ended on a positive note as the prospects of a post-COVID recovery in China started to gain traction. Chinese equities posted some of the strongest results within global markets with a rebound in sentiment stemming from the government’s statements and actions which support the easing of COVID-related restrictions in favor of ‘living with COVID’ policies. In addition, the Chinese authorities seem to be shifting their stance from risk-management (in areas like property) to reviving growth.  In general, South Asia proved to be more resilient during the year given the domestic orientation of many of these economies, and an outlook for gradual recovery in economic activity.  Meanwhile, the more export-oriented countries such as Korea and Taiwan struggled in the first nine months but finished the year on a slightly positive as investors seem to be anticipating a peak in U.S. interest rates. An expectation of a moderation in U.S. interest rates may also have been a driver of a partial recovery in Asian currencies in the fourth quarter.

Performance Contributors and Detractors:

From the country perspective, stock selection within Thailand, India and Indonesia contributed the most to the Fund’s relative performance for the year. Southeast Asian countries and India have shown late but sustained economic recovery.  On the other hand, stock selection in South Korea and Singapore detracted from performance. Delays in the operational milestones in some of the portfolio’s South Korean holdings caused weaker earning results and accelerated derating of those companies. From a sector perspective, our allocation and stock selection within real estate and consumer discretionary contributed the most while our under allocation and stock selection within financials and stock selection within industrials detracted the most from relative performance.

Turning to individual securities, Central Pattana Public, Thailand's largest retail property development and investment company, contributed the most to the portfolio’s absolute and relative performance during the year. While the company is classified under the real estate sector, the stock performed well as its underlying operations were driven by consumption recovery in the Southeast Asia region. YUM China, one of the leading restaurant chains in China was another notable contributor. Amid challenging external environment, the company was quick to adjust their operation towards delivery business, and as a result unit economics of their stores remained healthy. The company was able to continue on the path towards its annual store expansion goal. In contrast, Hybe was one of the detractors. Hybe’s efforts to achieve operational leverage with a platform approach has been delayed while one of its key intellectual property assets expected to contribute lower in the foreseeable future. Given the uncertainty combined with still heightened valuation level, we exited our position during the fourth quarter.  On the other hand, HL Mando, a growing auto components company in South Korea had negative performance contribution even though its earnings were resilient. Sentiment around the uncertain auto demand and lingering impact on the supply chain constraints and subsequent cost pressure derated the company’s valuation. 

Notable Portfolio Changes:

We took advantage of market volatility throughout the year to rotate capital and make adjustments to the portfolio, finding opportunities in China given the potential for the country’s domestic consumption recovery. China Tourism Group, a leading duty-free operator, was the one of the companies where we took the opportunity to initiate and build our position. The company’s revenue and profitability were negatively affected during the year due to strict COVID restriction; however, with swift shift to online and cost reduction efforts, the magnitude of the negative impact was well managed. Most importantly, China Tourism Group’s strong domestic position has been further reinforced. We also increased our position in Shenzhen Inovance, a leading automation company is China. The company continued to gain market share domestically not only from the local competitors but also from the global companies in China. We also trimmed a couple of our information technology positions, Samsung Electronics in South Korea and Taiwan Semiconductor Manufacturing in Taiwan. Although these companies have strong fundamentals, near-term earnings uncertainty risk has increases as both names are exposed to the slowing global demand environment.

Outlook:

All eyes are squarely focused on economic recovery in China as the government has pared back all COVID-related constraints in an accelerated manner since November 2022. The surge in Chinese household deposits during the past two years may support a recovery in consumption which is emerging as the most important driver of economic activity in 2023. With the prospects for global growth in 2023 looking less inspiring, we believe the domestically oriented economies in Asia may be better positioned to deliver growth. Furthermore, the competitive landscape has altered—somewhat dramatically in certain industries—in the post-COVID world and that is creating opportunities for growth through market share gains, new growth areas, and acceleration of certain trends that were slowly developing across the region. Examples include consolidation across many parts of retail sector in Asia, new and emerging sectors like solar/renewables, and a thrust in the augmentation of manufacturing supply chains outside of China. All of these are areas that continue to be attractive.

 

Rolling 12 Month Returns For the period ended 31/12/2022 - I (Acc)
Name 2022 2021 2020 2019 2018 Inception Date
Matthews Pacific Tiger Fund (USD)
-21.59% -3.08% 30.48% 11.18% -10.71% 30/04/2010
MSCI All Country Asia ex Japan Index (USD)
-19.36% -4.46% 25.36% 18.52% -14.12%
Matthews Pacific Tiger Fund (GBP)
-12.16% -1.74% 25.96% 7.87% -5.71% 28/02/2011
MSCI All Country Asia ex Japan Index (GBP)
-9.19% -3.58% 21.49% 13.94% -8.78%
Matthews Pacific Tiger Fund (JPY)
-10.24% 8.30% 23.94% 9.79% -12.83% 27/03/2017
MSCI All Country Asia ex Japan (JPY)
-7.60% 6.56% 19.10% 17.39% -16.36%
Matthews Pacific Tiger Fund (EUR)
-16.78% 5.06% 19.40% N.A. N.A. 30/04/2019
MSCI All Country Asia ex Japan Index (EUR)
-14.07% 2.79% 15.01% N.A. N.A.

Sources: Brown Brothers Harriman (Luxembourg) S.C.A, Matthews Asia, FactSet Research Systems, Bloomberg

 

Performance figures discussed in the Fund Manager Commentary above reflect that of the Institutional Accumulation Class Shares and has been calculated in USD. Performance details provided for the Fund are based on a NAV-to-NAV basis, with any dividends reinvested, and are net of management fees and other expenses. Past performance information is not indicative of future performance. Investors may not get back the full amount invested.

The information contained herein has been derived from sources believed to be reliable and accurate at the time of compilation, but no representation or warranty (express or implied) is made as to the accuracy or completeness of any of this information. Matthews Asia and its affiliates do not accept any liability for losses either direct or consequential caused by the use of this information.

Information contained herein is sourced from Matthews Asia unless otherwise stated. The views and opinions in this commentary were as of the report date, subject to change and may not reflect the writer’s current views. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the managers reserve the right to change their views about individual stocks, sectors, and the markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund’s future investment intent. It should not be assumed that any investment will be profitable or will equal the performance of any securities or any sectors mentioned herein. The information does not constitute a recommendation to buy or sell any securities mentioned.

Investors should not invest in the Fund solely based on the information in this material alone. Please refer to the Prospectus for further details of the risk factors. 

Index Definitions