Important Information about GaoTeng Fund ICAV - GaoTeng Penguin Asian High Yield Fund

• GaoTeng Penguin Asian High Yield Fund (the “Fund”) primarily invests in debt securities in Asia and Emerging Markets. The Fund may also use financial derivative instruments such as Convertible Bonds, Forward Currency Exchange Contracts and/or Non-deliverable Forward.

• The Fund is exposed to derivative risk as the derivative values can rise and fall at a greater rate than equities and debt instruments. Losses can be greater than the initial investment.

• The Fund’s assets may decrease because of sovereign acts and political transformation, which may also influence free trade of currency. In addition, risk may arise because of restricted information possibilities in addition to less stringent supervision and control of certain markets. The performance of these markets may be subject to significant volatility.

• The Fund invests in emerging markets which may involve increased risks and special considerations such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, and the likelihood of a high degree of volatility.

• The Fund is exposed to the credit/default risk of issuers of the debt securities that the Fund may invest in. The Fund may also invest in debt securities rated below investment grade or unrated which are generally subject to lower liquidity and higher volatility. The Fund can invest a material part of its assets in high-yield bonds, these bonds carry a higher risk of default.

• The distribution of this Fund and the offering or purchase of the Shares in the Fund may be restricted in certain jurisdictions, in particular the Fund has not been authorised by the Securities and Futures Commission, it is not meant to be distributed to the public of Hong Kong or Mainland China. Investors should ensure that the intermediary has advised to you whether this Fund is suitable to you.

• Investors should not invest in this Fund based solely on the information provided herein, and should read the relevant offering documents particularly the investment policies and risk factors for more details before investing.

• The Fund is a Sub-Fund of GaoTeng Fund ICAV, Lemanik Asset Management S.A., Dublin Branch is the Manager of the Fund, and GaoTeng Global Asset Management Limited is the Investment Manager of the Fund. The Fund is authorised by the Central Bank of Ireland as a UCITS within the meaning of the UCITS Regulations. The Central Bank’s authorisation is not a recommendation or endorsement of the Fund nor does it guarantee the commercial merits of the Fund or its performance. It does not mean the Fund is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.

GaoTeng Fund ICAV - GaoTeng Penguin Asian High Yield Fund
Fund Type: ICAV
Inception Date: 2020-04-28
Investment Objective

The Fund aims to maximise total return from a combination of income and capital gain through investing in Asia’s high-yielding sovereign, quasi-sovereign, bank and corporate debt markets.

Investment Strategy

The Fund aims to achieve its investment objective by investing at least 80% of its Net Asset Value in Regulated Markets in Asia, including and not limited to China, Korea, Indonesia, India, Hong Kong, Philippines, Malaysia and Singapore. Exposure to each of these jurisdictions will be achieved indirectly through over-the-counter USD debt securities settled in Euroclear and Clearstream. In respect of India exposure may also be gained indirectly through investment in Credit-linked Notes. The Fund may invest more than 30% of its Net Asset Value in Emerging Markets.

The diversified portfolio would comprise of Treasury Bonds, Convertible Bonds, Urban Investment Bonds, Senior Bonds, Subordinated Bonds, Perpetual Debt Instruments, CoCos and Tier 2 Bonds, government and/or corporate bonds (which will be fixed and/or floating rate) traded on a Regulated Market (collectively "Debt Securities") and Rule 144A Securities, Regulation S Securities (provided they comply with Regulation 68 of the Regulations), as well as CIS, which are exchange traded funds and CIS providing exposure to eligible Debt Securities indices.

The minimum percentage of Debt Securities comprising the portfolio is 80% of the Net Asset Value. At least 70% of Fund’s Net Asset Value will be invested in Non-Investment Grade Instruments. Up to 35% of the Fund's Net Asset Value will be invested in unrated Debt Securities, comprising of corporate bonds.

The Fund can invest up to 30% of its Net Asset Value in Regulated Markets in Asia, including and not limited to mainland China’s fixed income Debt Securities listed or traded on CIBM via Bond Connect. The remaining Fund's Net Asset Value will be invested in Debt Securities and exchange traded funds (as listed above) in Regulated Markets and unregulated markets in Asia (the investment in unregulated markets in Asia being limited to 10% of NAV), including but not limited to China, Korea, Indonesia, India, Hong Kong, Philippines, Malaysia and Singapore.

The Fund may invest:

• up to 10% of its Net Asset Value in Urban Investment Bonds;

• up to 10% of its Net Asset Value in Convertible Bonds;

• up to 5% of its Net Asset Value in CoCos;

• up to 10% of its Net Asset Value Tier 2 Bonds;

• up to 10% of its Net Asset Value non-preferred Senior Bonds;

• up to 5% of its Net Asset Value in Credit-linked Notes; and

• up to 10% of its Net Asset Value in open-ended exchange traded CIS and eligible index CIS providing exposure to Debt Securities.

The Fund's investments are subject to an overall 10% investment limit of the Net Asset Value in transferable securities, eligible closed-ended funds and money market instruments in accordance with the asset classes identified above which are not listed, traded or dealt in on a Regulated Market.

The Fund is actively managed without reference to a benchmark. Investments in the portfolio are not specifically selected from the constituents of a benchmark, hence the Fund's investment policy is in no way constrained.

Financial Derivative Instruments

The Fund will use financial derivative instruments ("FDI") for investment and hedging purposes as defined in the FDI table. The Fund can hedge currency exposures using FDIs, such as Forward Currency Exchange Contracts and Non-deliverable Forwards, limited to 30% of its Net Asset Value. The Fund’s net derivative exposure may be up to 30% of the Fund’s Net Asset Value.

Securities Financing Transactions

The Investment Manager may enter into Securities Financing Transactions, namely repurchase transactions, subject to and in accordance with the conditions and limits set out in the Prospectus and the Central Bank UCITS Regulations for efficient portfolio management with a level of risk which is consistent with the risk profile of the Fund and the UCITS risk diversification rules.

The maximum and expected percentages of the Net Asset Value of the Fund that can be subject to repurchase transactions are 20% and 5% respectively. The expected percentage is not a limit and the actual percentage may differ from the expected percentage over time, depending on factors including, but not limited to, market conditions (such as a financial crisis).

The Fund does not engage in reverse repurchase transaction.

The Fund may invest up to 100% of its Net Asset Value in cash and other money market instruments including certificates of deposit, Treasury Bills and commercial paper issued by highly rated (Investment Grade or higher) corporate or sovereign issuers ("Liquid Instruments") which are traded in Regulated Markets (and up to 10% of its Net Asset Value in Liquid Instruments which are not listed, traded or dealt in on a Regulated Market) for cash flow purposes or where the Investment Manager believes that economic, financial and political conditions make it advisable to do so and it would not be in the best interests of the Shareholders to be fully invested or where the Fund needs to maintain liquidity to meet redemption requests.

With regard to the investment in CIS providing exposure to eligible Debt Securities indices, all such indices to which exposure may be gained, will comprise of eligible assets and comply with the risk spreading rules applied to direct investment in equities in accordance with the requirements of the UCITS Regulations and will also comply with the Central Bank's UCITS Regulations, the Central Bank's guidance on UCITS Financial Indices and the ESMA Guidelines on exchange traded funds and other UCITS issues ("Index Requirements"). The indices are publically available and are revised and rebalanced periodically to ensure they continue to reflect the market they represent. The indices' criteria are publically available and in accordance with the Index Requirements. The indices represent the Debt Securities markets in which the Fund predominantly invests. The Investment Manager may invest in any number of CIS providing exposure to publically available indices not managed by the Investment Manager to complement the investment policy of the Fund. Accordingly, it is not possible to provide a definitive list of indices in which the CIS (in which the Fund invest) may invest in. Additional information on the indices, rebalancing frequencies and the effects of these on the costs within the index that may be invested in by the Fund, through the CIS, can be obtained from the Investment Manager upon request.

Fund Overview
Inception Date

2020-04-28

Financial Year

12-31

Domicile

Ireland

Fund Type

Irish Collective Asset-Management Vehicle

Base Currency

USD

Asset Class

Fixed Income

Management Company

Lemanik Asset Management S.A

Investment Manager

GaoTeng Global Asset Management Limited

Administrator

Brown Brothers Harriman Fund Administration Services (Ireland) Limited

Depositary

Brown Brothers Harriman Trustee Services (Ireland) Limited

Share Class Details
A(EUR‐hedged)-DIST
Inception Date
ISIN CodesIE00BLDGDY65
Bloomberg TickersGAAMLAE ID
CurrencyEUR
Dealing FrequencyDaily
Preliminary ChargeUp to 3.0%
Redemption ChargeUp to 1%
Switching ChargeNil
Management Fee1% p.a.
Minimum Initial SubscriptionEUR 100
Minimum HoldingEUR 100
Distribution Policy(DIST)Monthly, subject to Manager's discretion

The above content is strictly for information purposes only, and does not constitute or shall not be considered as, an offer, solicitation, or recommendation, to deal in any securities, investment products, or funds.

Investment involves risk. Past performance is not a guide to future performance. Investors may not get back the amount they have invested. The value of investments and the income received from them (if any) may be volatile and could change substantially within a short period of time.

Any information and data from third parties is based upon sources believed to be reliable, but no representation or warranty is given to its accuracy or completeness. Any forward-looking statements regarding future events or performance of countries, markets or companies are not necessarily indicative of, and may differ from, actual events or results.

The above content is issued by GaoTeng Global Asset Management Limited and has not been reviewed by the Securities and Futures Commission or the Central Bank of Ireland.