Premia J.P. Morgan Asia Credit Investment Grade USD Bond ETF CIES Eligible ^#

IMPORTANT: Investment involves risk, including the loss of principal. Investors should refer to the Prospectus and Key Facts Statement of Premia J.P. Morgan Asia Credit Investment Grade USD Bond ETF (the "ETF") for details, including the risk factors. Investors should not base investment decisions on this marketing material alone. Investors should note:

The ETF aims to provide investment results that, before fees and expenses, closely correspond to the performance of J.P. Morgan Asia Credit Index – Investment Grade (“Index”).

Fixed Income Credit risk
Fixed income securities are subject to credit risk. Credit risk refers to the possibility that the issuer of a security will not make timely interest payments or repay the principal of the debt issued (i.e., default on its obligations). A default on securities held by the Sub-Fund could adversely affect the Sub-Fund’s performance. Generally, the longer the maturity and the lower the credit quality of a security, the more sensitive it is to credit risk.

Interest rate risk
Interest rate risk is the risk that fixed income securities will decline in value because of an increase in interest rates. Funds with higher durations generally are subject to greater interest rate risk.

Credit rating and downgrading risk
Credit ratings assigned by rating agencies are subject to limitations and do not always guarantee the creditworthiness of the security and/or issuer. The credit rating of a debt instrument or its issuer may subsequently be downgraded. In the event of such downgrading, the value of the Sub-Fund may be adversely affected. The Manager may or may not be able to dispose of the debt instruments that are being downgraded.

Volatility and liquidity risk
Some Asian bond markets are under development and may be subject to higher volatility. The instability in prices will cause fluctuation in the NAV of the Sub-Fund.

Some Asian bond markets can be illiquid and inefficient. Trading costs may be relatively high in such markets. The potentially wide bid-ask spread due to thin trading may cause difficulties in achieving fair pricing. The inability to transact at advantageous times or prices may result in a reduction in the Sub-Fund’s returns and a disruption in desired asset allocation.

Over-the-counter Market Risk
OTC markets such as the USD Corporate Bond market are subject to less governmental regulation and supervision of transactions than organized exchanges. In addition, many of the protections afforded to participants on some organized exchanges, such as the performance guarantee of an exchange clearing house, may not be available in connection with transactions on OTC markets. Therefore, by entering into transactions on OTC markets, the Sub-Fund will be subject to the risk that its direct counterparty may not perform its obligations under the transactions and that the Sub-Fund may sustain losses.

PRC market risks
The Sub-Fund and the Index are both focused on Asian bond markets, but as a consequence of current market conditions, there may be a higher exposure to Securities that are materially associated with the PRC (such as bonds issued by PRC companies). The value of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio of investments. The value of the Sub-Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the PRC market.

Sovereign and quasi-sovereign debt risk
The Sub-Fund's investment in Securities issued or guaranteed by governments and quasi- sovereign issuers may be exposed to political, social and economic risks. In adverse situations, the sovereign issuers and quasi-sovereign issuers may not be able or willing to repay the principal and/or interest when due or may request the Sub-Fund to participate in restructuring such debts. The Sub-Fund may suffer significant losses when there is a default of sovereign and quasi-sovereign debt issuers.

Emerging market risk
Some overseas markets in which a Sub-Fund may invest are considered emerging market countries. The economies of many emerging markets are still in the early stages of modern development and subject to abrupt and unexpected change. In many cases, governments retain a high degree of direct control over the economy and may take actions that have a sudden and widespread effect. Also, many less developed market and emerging market economies have a high degree of dependence on a small group of markets or even a single market that can render such economies more susceptible to the adverse impact of internal and external shocks.

Foreign exchange and other currency distributions risk
The Sub-Fund's Base Currency is in USD but has Units traded in HKD (in addition to USD). Secondary market investors may be subject to additional costs or losses associated with fluctuations in the exchange rates between HKD and the Base Currency and by changes in exchange rate controls when trading Units in the secondary market.

Investors should note that all Units will receive distributions in the Base Currency (USD) only. In the event that the relevant Unitholder has no USD account, the Unitholder may have to bear the fees and charges and/or suffer the foreign exchange losses associated with the conversion of such distribution from USD to HKD or any other currency. The relevant Unitholder may also have to bear bank or financial institution fees and charges associated with the handling of the distribution payment. Relevant unitholders are advised to check with their brokers regarding arrangements for distributions.

Distributions out of or effectively out of capital risk
Payment of dividends out of capital or effectively 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. Any such distributions may result in an immediate reduction in the NAV per Unit of the Sub-Fund.

Multi-counter risks
If there is a suspension of the inter-counter transfer of Units between the counters and/or any limitation on the level of services by brokers and CCASS participants, Unitholders will only be able to trade their Units in one counter only, which may inhibit or delay an investor dealing. The market price of Units traded in each counter may deviate significantly. As such, the Sub-Fund's investors may pay more or receive less when buying or selling Units traded in HKD on the SEHK than in respect of Units traded in USD or other currencies and vice versa.

Reliance on market maker and liquidity risks
Although the Manager will ensure that at least one Market Maker will maintain a market for the Units in each counter, and that at least one Market Maker in each counter gives not less than 3 months’ notice prior to terminating the relevant market maker agreement, liquidity in the market for Units may be adversely affected if there is no or only one Market Maker for the Units. There is no guarantee that any market making activity will be effective.

Risks of investing in FDIs
Risks associated with FDI include counterparty / credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. Exposure to FDI may lead to a higher risk of loss by the Sub-Fund. The Sub-fund may suffer losses if a counterparty of the derivative contract defaults or fails to perform its obligations.