RISK FACTORS
This is a financial promotion for The First State Asian Fixed Income and Emerging Markets Debt Strategies. This information is for professional clients only in the EEA and elsewhere where lawful. Investing involves certain risks including:

The value of investments and any income from them may go down as well as up and are not guaranteed. Investors may get back significantly less than the original amount invested.
Credit risk: The issuers of bonds or similar investments may not pay income or repay capital when due.
Single country / specific region risk:Investing in a single country or specific region may be riskier than investing in a number of different countries or regions. Investing in a larger number of countries or regions helps spread risk.
Charges to capital risk: The fees and expenses may be charged against the capital property. Deducting expenses from capital reduces the potential for capital growth.
Reliability of credit rating risk: The ratings of fixed-income securities by rating institutions are subject to certain limitations. Also, there is frequently a lag between the time the rating is assigned and the time it is updated. In the event of a downgrade in the credit ratings of a security or an issuer issuing a security, the value of tan investment may be adversely affected.
Below investment grade risk: Below investment grade debt securities are speculative and involve a greater risk of default and price changes than investment grade debt securities due to changes in the issuer’s creditworthiness. In periods of general economic difficulty, the market prices may fluctuate and decline significantly.
Interest rate risk: Interest rates affect the value of investments; if rates go up, the value of investments fall and vice versa.
Emerging market risk: Emerging markets may not provide the same level of investor protection as a developed market; they may involve a higher risk than investing in developed markets.

For details of the FCA authorised firms issuing this information and any funds referred to, please see Terms and Conditions and Important Information below.

For a full description of the terms of investment and the risks please see the Prospectus and Key Investor Information Document for each Fund.

If you are in any doubt as to the suitability of our funds for your investment needs, please seek investment advice.

Emerging Markets Debt and Asian Fixed Income

The benefits of investing in emerging markets and Asian fixed income

Projection of economic outlook between Asian countries and developed markets

Source: IMF as of October 2017, GDP based on PPP (purchasing power parity)

Historically investors have been more wary of emerging markets due to perceived instability and increased political risks. Now that developed markets are being impacted by increasing political instability such as Brexit and US administration issues, there are opportunities for active investors to make substantial gains from emerging markets. Some emerging markets assets are presenting a similar level of risk to those of developed markets, while offering better coupons to debt investors (for example as at 31 January 2018, sharpe ratio's, a measure of risk-adjusted return, show Asia hard currency investment grade credit to be more attractive than US dollar investment grade credit). It is important to note emerging markets are not homogenous; different countries are subject to different risks.

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Emerging Markets Debt and Asian Fixed Income

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The benefits of investing in emerging markets and Asian fixed income