Potential Investors should consider the following key risks before investing in the Sub-Fund:

Fixed Income Risk: Issuers may not be able to make payments of interest or repayment of money borrowed. Changes in interest rates, credit ratings and inflation may lead to a loss in value.

Below Investment Grade Debt Securities Risk: An investment in high yield securities involves a higher degree of risk than investment in investment grade debt securities. The lower ratings of securities reflect a greater possibility of adverse changes in the financial condition of the issuer, which may impair the ability of the issuer to make payments of interest and principal.

Emerging Markets Risk: Emerging markets are typically smaller, less transparent and subject to evolving, less stable political and regulatory regimes.

Interest Rate Risk: Fixed income securities are typically interest rate sensitive, which means their value will fluctuate as interest rates change.

Default Risk: There is a risk that a particular issuer may not fulfil its payment or other obligations. These events may increase the price volatility of the issuers' debt obligations and negatively affect liquidity making such debt obligations more difficult to sell.

Liquidity Risk: The Sub-Funds may invest some of their assets in illiquid securities and other illiquid financial instruments, in respect of which they may not always be possible to execute a buy or sell order at the desired price or to liquidate the open position.

Distribution From Capital Risk: At the discretion of the Manager, share classes may declare and pay distributions out of capital. Investors in these share classes should be aware that payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or of capital gains attributable to that original investment, and such distributions will result in a corresponding immediate decrease in the NAV per Unit of the share classes.

Derivative Risks: The prices of FDI can be highly volatile. In addition, the use of FDI also involves certain special risks depending on the type of FDI, including but not limited to correlation risk, counterparty credit risk, legal risk, settlement risk, margin risk, as well as other possible risks that may arise.

Contingent Convertible Bonds Risk: Contingent Convertible bond (CoCos) is a type of complex debt security which may be converted into the issuer’s equity or be partly or wholly written off if a pre-specified trigger event occurs. 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.

ESG Data Risk: ESG information that is used to determine companies' ESG and sustainability-related characteristics may be provided by third-party sources or internal analysis and may be based on backward-looking analysis and data.

ESG Categorisation Risk: The ESG categorisation is determined by the Manager pursuant to SFDR, based on current understanding of applicable law and as yet incomplete regulation. Changes in law and regulation, the interpretation of law and regulation, new regulatory technical standards coming into effect and/or changes in regulatory guidance may result in a change of categorisation of a sub-fund and investors should not rely on such categorisations for any purpose.

Sustainability Risk: The value of investment, and the value of any sub-fund containing that investment, may be negatively impacted by environmental, social or governance event or condition. The impact may vary and may depend on several factors including, but not limited to, the type, extent, complexity and duration of the event or condition, prevailing market conditions and the existence (or not) of any mitigating factors.

Concentration Risk: The Sub-Fund may invest in a limited number of securities compared to more diversified Sub-Funds or it may focus its investments and hold relatively large positions in, among other things, particular industries, countries, sectors, currencies or issuers. This may increase the volatility of the value of the Sub-Fund or for the Sub-Fund to bear losses and may also limit the liquidity of certain securities within the Sub-Fund.

Sovereign Debt Risk: Where the Sub-Fund invests in sovereign debt, a government entity’s willingness or ability to repay principal and interest due in a timely manner may be affected by many factors which carry the risk of default. Factors which contribute to the risk of default by a government entity include cash flow, the investment-grade of the debt, the extent of its foreign reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt service burden to the economy as a whole, the government entity’s policy towards the International Monetary Fund and the political constraints to which a government entity may be subject.

Counterparty Risk: Counterparty risk is the risk that a counterparty to a contract will fail to perform contractual obligations (e.g. default in either whole or part) under the contract. Counterparties may include the Manager, the custodian and derivative counterparties of the Sub-Fund. Substantial losses can be incurred by the Sub-Fund if a counterparty is unable or unwilling to meet its contractual obligations.

Currency Risk - Base Currency: Securities may be denominated in currencies different from the Sub-fund's Base currency and there is a risk that changes in exchange rates and exchange control regulations may cause the value of the assets expressed in the Base Currency to rise or fall.

Risks relating to China: Chinese securities can have added risk exposures. RMB is currently not freely convertible and is subject to exchange controls and restrictions resulting in increased foreign exchange risk. Also, urban investment bonds issued by local government financing vehicles (“LGFVs”) are typically not guaranteed by Chinese governments which can lead to increased counterparty risk.

Price of Securities Risk: The Sub-Fund is at risk of market volatility based on prevailing economic conditions. Price trends are determined mainly by financial market trends and by the economic development of the issuers, who are themselves affected by the overall situation of the global economy and by the economic and political conditions prevailing in each country.

Risks associated with QFI scheme: The Sub-Fund may suffer substantial losses if the approval of the QFI status is being revoked/terminated or otherwise invalidated as the Sub-Fund may be prohibited from trading of relevant securities and repatriation of the fund’s monies.

The risk factors described above should not be considered an exhaustive list of risks, which potential investors should consider before investing in the Sub-Fund. For more details on the fund’s potential risks please read the Prospectus and Key Investor Information Document at pinebridge.com/funds