Page 24 of the Explanatory Memorandum of the underlying fund of L51 Value Partners Greater China High Yield Income before the Effective Date

Page 24 of the Explanatory Memorandum of the underlying fund of L51 Value Partners Greater China High Yield Income with effect from the Effective Date

The underlying fund currently may use financial derivative instruments (such as futures contracts, options and warrants) for hedging and investment purposes. The underlying fund may invest in index and currency swaps and currency forwards (which are normally traded over-the-counter) for hedging purposes only.

Currently, the underlying fund does not intend to (i) invest in structured products and mortgaged-backed securities; and (ii) engage in securities lending transactions, sale and repurchase transactions and reverse repurchase transactions. The underlying fund also does not intend to engage in any over-the-counter transactions other than index and currency swaps and currency forwards. Prior approval of the SFC will be sought and not less than one month’s prior notice will be given to the Shareholders in the event the Manager wishes to invest in the aforesaid instruments or engage in any of the aforesaid transactions. In such circumstance, the Explanatory Memorandum and the Product Key Facts Statement will be updated to reflect such change as soon as reasonably practicable.

Subject to the above investment strategy and the investment restrictions (as set out below under the section headed “Investment Restrictions”), the underlying fund may also, invest in commodity-based investments depository receipts, units in any unit trust or shares in any mutual fund corporation or any other collective investment scheme (including those managed by the Manager or its Connected Persons), currencies and interest rates and may hold cash, short-term deposits, and other money instruments (as considered appropriate by the Manager). Currently, the underlying fund does not intend to invest more than 10% of its latest Net Asset Value in such instruments.

The underlying fund currently may use financial derivative instruments (such as futures contracts, options and warrants) for hedging and investment purposes. The underlying fund of may invest in index and currency swaps and currency forwards (which are normally traded over-the-counter) for hedging purposes only.

Currently, the underlying fund does not intend to (i) invest in structured products and mortgaged-backed securities; and (ii) engage in securities lending transactions, sale and repurchase transactions and reverse repurchase transactions. The underlying fund also does not intend to engage in any over-the-counter transactions other than index and currency swaps and currency forwards. If required under the Code, prior approval of the SFC will be sought and not less than one month’s prior notice will be given to the Shareholders in the event the Manager wishes to invest in the aforesaid instruments or engage in any of the aforesaid transactions. In such circumstance, the Explanatory Memorandum and the Product Key Facts Statement will be updated to reflect such change as soon as reasonably practicable.

Subject to the above investment strategy and the investment restrictions (as set out below under the section headed “Investment Restrictions”), the underlying fund may also, invest in commodity-based investments, depository receipts, currencies and interest rates instruments. Currently, the underlying fund does not intend to invest more than 10% of its latest Net Asset Value in such instruments. The Fund may invest up to 20% of its latest Net Asset Value in units in any unit trust or shares in any mutual fund corporation or any other collective investment scheme (including those managed by the Manager or its Connected Persons).

The underlying fund’s portfolio may also temporarily include cash and cash equivalents, up to 100% of its latest Net Asset Value, under exceptional circumstances (such as in the event of market crashes, major crisis or to mitigate the risk of potential sharp reversals and falls in the equity or bond markets) for cash flow management or for reducing market exposure.

The aggregate value of the underlying fund’s investments in securities issued by a single entity (other than a collective investment scheme) may not exceed 10% of its latest Net Asset Value provided that the total Net Asset Value of securities (other than units in any unit trust or shares in any mutual fund corporation or any other collective investment scheme (including those managed by the Manager or its Connected Persons)) held in the issuing entities in each of which it invests more than 5% of its Net Asset Value is less than 40% of its latest Net Asset Value.