CMB International USD Money Market Fund (the “Sub-Fund”) is a sub-fund of the CMB International Open-ended Fund Company (“Company”), which is a public umbrella open-ended fund company (“OFC”) established under Hong Kong law with variable capital with limited liability and segregated liability between sub-funds.

Please note that the Sub-Fund does not have any guarantees. You may not get back the full amount of money you invest and the investments in Sub-fund may not be suitable for everyone. The investors should read the Prospectus and Product Key Facts Statement carefully and pay attention to product features and risks to evaluate whether the product matches with investor’s own investment objective and risk appetite.

Investors can obtain Prospectus and Product Key Facts Statement of Sub-Fund from the office of CMB International Asset Management Limited, 39/F, Champion Tower, 3 Garden Road, Central, Hong Kong and can also download from website.

Since the Sub-Fund is newly set up, there is insufficient data to provide a useful indication of past performance. And historical performance is not indicative of future results, neither does it constitute a representation or guarantee as to future results or performance.

Investment involves risks. Please refer to the Prospectus for details including the risk factors.

1.Investment risk

• The Sub-Fund's investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Sub-Fund may suffer losses. There is no guarantee of the repayment of principal.

2.Fixed income securities investment risk (including money market instruments)

• Short-term fixed income instruments risk - As the Sub-Fund invests substantially in short-term fixed income instruments with short maturities, the turnover rates of the Sub-Fund's investments may be relatively high and the transaction costs incurred as a result of the purchase or sale of short-term fixed income instruments may also increase which in turn may have a negative impact on the NAV of the Sub-Fund. The Sub-Fund’s underlying fixed income securities may become more illiquid when nearing maturity. It therefore may be more difficult to achieve fair valuation in the market.

• Credit / counterparty risk - The Sub-Fund is exposed to the credit/default risk of issuers of the fixed income securities it invests in.
• Volatility and liquidity risk - The fixed income securities in the Greater China markets (in particular Mainland China and Taiwan) and other emerging markets may be subject to higher volatility and lower liquidity compared to more developed markets. The prices of securities traded in such markets may be subject to fluctuation. The bid and offer spreads of the price of such securities may be large and the Sub-Fund may incur significant trading costs.

• Interest rate risk – Investment in the Sub-Fund is subject to interest rate risk. Generally, the prices of fixed income securities rise when interest rates fall, whilst their prices fall when interest rates rise.

• Credit rating risk - Credit ratings assigned by rating agencies are subject to limitations and do not guarantee the creditworthiness of the security and/or issuer at all times.

• Credit Rating Agency Risk - The credit appraisal system in Mainland China and the rating methodologies employed in Mainland China may be different from those employed in other markets. Credit ratings given by Mainland China rating agencies may therefore not be directly comparable with those given by other international rating agencies.

• Downgrading risk – The credit rating of a fixed income instrument or its issuer may subsequently be downgraded. In such case, the Sub-Fund's investment value may be adversely affected. The Manager may or may not be able to dispose of the fixed income instruments that are being downgraded.

• Valuation Risk - Valuation of the Sub-Fund's investments may involve uncertainties and judgmental determinations. If such valuation turns out to be incorrect, this may affect the NAV calculation of the Sub-Fund.

• Sovereign debt risk - The Sub-Fund's investment in securities issued or guaranteed by governments may be exposed to political, social and economic risks. In adverse situations, the 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 debt issuers.

3.Risks associated with bank deposits

• Bank deposits are subject to the credit risks of the relevant financial institutions. The Sub-Fund may also place deposits in non-resident accounts (NRA) and offshore accounts (OSA), which are offshore deposits with offshore branches of Mainland Chinese banks. The Sub-Fund's deposit may not be protected by any deposit protection schemes, or the value of the protection under the deposit protection schemes may not cover the full amount deposited by the Sub-Fund. Therefore, if the relevant financial institution defaults, the Sub-Fund may suffer losses as a result.

4.Emerging market risk, Mainland China investment risk and Concentration risk

• The Sub-Fund will invest primarily in USD-denominated short-term deposits and high-quality money market instruments (which may include fixed income securities). The Sub-Fund may also be concentrated in a particular market or region, including in emerging markets such as Mainland China, which are subject to higher risks (for example, liquidity risk, currency risk, political risk, regulatory risk, legal and taxation risks, settlement risk, custody risk and economic risk) and higher volatility than more developed markets. Some emerging markets securities may be subject to brokerage or stock transfer taxes levied by governments, which would have the effect of increasing the cost of investment and which may reduce the realised gain or increase the loss on such securities at the time of sale.

• In addition, the Sub-Fund is likely to be more volatile than a broad-based fund that adopts a more diversified strategy and are more suspensible to adverse economic, political, foreign exchange, liquidity, tax, legal or regulatory events affecting the USD money markets or the market or region in which its investments are focused.

• Investing in Mainland China involves a greater risk of loss than investing in more developed markets due to, amongst other factors, greater political, social, tax, economic, foreign exchange, liquidity and regulatory risks; exchange rate fluctuations and exchange control; less developed settlement system; government interference; the risk of nationalisation and expropriation of assets, and custody risk and high volatility risk.

5.Eurozone risk

• In light of ongoing concerns on the sovereign debt risk of certain countries within the Eurozone, the Sub-Fund's investments in the region may be subject to higher volatility, liquidity, currency and default risks. Any adverse events, such as credit downgrade of a sovereign or exit of members of the European Union from the Eurozone, may have a negative impact on the value of the Sub-Fund.

6.Currency and foreign exchange risks

• Underlying investments of the Sub-Fund may be denominated in currencies other than its base currency. The NAV of the Sub-Fund may be affected unfavourably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls.

7.Risks associated with investment in FDIs and hedging

• The Sub-Fund may invest in FDIs for hedging purposes and in adverse situations its use of FDIs may become ineffective and/or cause the Sub-Fund to suffer significant loss. Risks associated with FDIs include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The leverage element/component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the Sub-Fund. Exposure to FDI may lead to a high risk of significant loss by the Sub-Fund.

The Sub-Fund’s objective is to invest in short term deposits and high-quality money market investments. The Sub-Fund seeks to achieve a return in USD in line with prevailing money market rate. There can be no assurance that the Sub-Fund will achieve its investment objective.

The Sub-Fund seeks to achieve its investment objective by investing primarily (i.e., not less than 70% of its NAV) in USD-denominated short-term deposits and high-quality money market instruments issued by governments, quasi-governments, international organisations, financial institutions and corporations. The Sub-Fund may invest up to 30% of its NAV in non-USD-denominated short-term deposits and high-quality money market instruments. The Manager will hedge non-USD-denominated investments into USD in order to manage any material currency risk.