0000909226-18-000012.txt : 20180427 0000909226-18-000012.hdr.sgml : 20180427 20180427134659 ACCESSION NUMBER: 0000909226-18-000012 CONFORMED SUBMISSION TYPE: NSAR-A PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20180228 FILED AS OF DATE: 20180427 DATE AS OF CHANGE: 20180427 EFFECTIVENESS DATE: 20180427 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TEMPLETON CHINA WORLD FUND CENTRAL INDEX KEY: 0000909226 IRS NUMBER: 593192206 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: NSAR-A SEC ACT: 1940 Act SEC FILE NUMBER: 811-07876 FILM NUMBER: 18782718 BUSINESS ADDRESS: STREET 1: 300 S.E. 2ND STREET CITY: FORT LAUDERDALE STATE: FL ZIP: 33301-1923 BUSINESS PHONE: 9545277500 MAIL ADDRESS: STREET 1: 300 S.E. 2ND STREET CITY: FORT LAUDERDALE STATE: FL ZIP: 33301-1923 FORMER COMPANY: FORMER CONFORMED NAME: TEMPLETON CHINA WORLD FUND INC DATE OF NAME CHANGE: 19930716 0000909226 S000008743 Templeton China World Fund C000023803 Class A TCWAX C000023805 Class C TCWCX C000023806 Advisor Class TACWX C000128752 Class R6 FCWRX NSAR-A 1 answer.fil ANSWER FILE PAGE 1 000 A000000 02/28/2018 000 C000000 0000909226 000 D000000 N 000 E000000 NF 000 F000000 Y 000 G000000 N 000 H000000 N 000 I000000 6.1 000 J000000 A 001 A000000 TEMPLETON CHINA WORLD FUND 001 B000000 811-07876 001 C000000 9545277500 002 A000000 300 S.E. 2ND STREET 002 B000000 FORT LAUDERDALE 002 C000000 FL 002 D010000 33301 002 D020000 1923 003 000000 N 004 000000 N 005 000000 N 006 000000 N 007 A000000 N 007 B000000 0 007 C010100 1 008 A000001 TEMPLETON ASSET MANAGEMENT LTD. 008 B000001 A 008 C000001 801-46997 008 D010001 SINGAPORE 008 D050001 SINGAPORE 010 A000001 FRANKLIN TEMPLETON SERVICES, LLC 010 B000001 801-31192 010 C010001 SAN MATEO 010 C020001 CA 010 C030001 94403 010 C040001 1906 011 A000001 FRANKLIN TEMPLETON DISTRIBUTORS, INC. 011 B000001 8-5889 011 C010001 SAN MATEO 011 C020001 CA 011 C030001 94403 011 C040001 1906 012 A000001 FRANKLIN TEMPLETON INVESTOR SERVICES, LLC 012 B000001 84-1036 012 C010001 RANCHO CORDOVA 012 C020001 CA 012 C030001 95670 012 C040001 7313 013 A000001 PRICEWATERHOUSECOOPERS LLP 013 B010001 SAN FRANCISCO 013 B020001 CA 013 B030001 94111 PAGE 2 013 B040001 4004 014 A000001 FRANKLIN TEMPLETON DISTRIBUTORS INC 014 B000001 8-5889 015 A000001 JPMORGAN CHASE BANK 015 B000001 C 015 C010001 BROOKLYN 015 C020001 NY 015 C030001 11245 015 E010001 X 015 A000002 HSBC BANK ARGENTINA SA 015 B000002 S 015 C010002 BUENOS AIRES 015 D010002 ARGENTINA 015 E040002 X 015 A000003 UNICREDIT BANK AUSTRIA AG 015 B000003 S 015 C010003 VIENNA 015 D010003 AUSTRIA 015 E040003 X 015 A000004 BNP PARIBAS SECURITIES SERVICES S.C.A. 015 B000004 S 015 C010004 BRUSSELS 015 D010004 BELGIUM 015 E040004 X 015 A000005 HSBC BANK BERMUDA LIMITED 015 B000005 S 015 C010005 HAMILTON 015 D010005 BERMUDA 015 E040005 X 015 A000006 HSBC BANK (CHINA) CO LTD 015 B000006 S 015 C010006 SHANGHAI 015 D010006 CHINA 015 E040006 X 015 A000007 UNICREDIT BANK CZECH REPUBLIC AS 015 B000007 S 015 C010007 PRAGUE 015 D010007 CZECH REPUBLIC 015 E040007 X 015 A000008 NORDEA BANK DANMARK A/S 015 B000008 S 015 C010008 COPENHAGEN 015 D010008 DENMARK 015 E040008 X 015 A000009 NORDEA BANK FINLAND PLC 015 B000009 S 015 C010009 HELSINKI 015 D010009 FINLAND 015 E040009 X 015 A000010 BNP PARIBAS SECURITIES SERVICES S.C.A. 015 B000010 S PAGE 3 015 C010010 PANTIN 015 D010010 FRANCE 015 E040010 X 015 A000011 JPMORGAN CHASE BANK NA 015 B000011 S 015 C010011 LONDON 015 D010011 IRELAND 015 E040011 X 015 A000012 BANK LEUMI LE-ISRAEL BM 015 B000012 S 015 C010012 TEL AVIV 015 D010012 ISRAEL 015 E040012 X 015 A000013 BNP PARIBAS SECURITIES SERVICES S.C.A. 015 B000013 S 015 C010013 MILAN 015 D010013 ITALY 015 E040013 X 015 A000014 MIZUHO BANK, LTD. 015 B000014 S 015 C010014 TOKYO 015 D010014 JAPAN 015 E040014 X 015 A000015 STANDARD CHARTERED BANK KENYA LIMITED 015 B000015 S 015 C010015 NAIROBI 015 D010015 KENYA 015 E040015 X 015 A000016 BNP PARIBAS SECURITIES SERVICES S.C.A. 015 B000016 S 015 C010016 HESPERANGE 015 D010016 LUXEMBOURG 015 E040016 X 015 A000017 HSBC BANK MALAYSIA BERHAD 015 B000017 S 015 C010017 KUALA LUMPUR 015 D010017 MALAYSIA 015 E040017 X 015 A000018 BANCO NACIONAL DE MEXICO SA 015 B000018 S 015 C010018 MEXICO CITY 015 D010018 MEXICO 015 E040018 X 015 A000019 STANDARD BANK NAMIBIA LTD 015 B000019 S 015 C010019 WINDHOEK 015 D010019 NAMIBIA 015 E040019 X 015 A000020 BNP PARIBAS SECURITIES SERVICES S.C.A. 015 B000020 S 015 C010020 AMSTERDAM PAGE 4 015 D010020 NETHERLANDS 015 E040020 X 015 A000021 CITIBANK DEL PERU SA 015 B000021 S 015 C010021 LIMA 015 D010021 PERU 015 E040021 X 015 A000022 THE HONGKONG AND SHANGHAI BANKING CORP LTD 015 B000022 S 015 C010022 TAGUIG CITY 015 D010022 PHILIPPINES 015 E040022 X 015 A000023 BANK HANDLOWY W WARSZAWIE SA 015 B000023 S 015 C010023 WARSAW 015 D010023 POLAND 015 E040023 X 015 A000024 BNP PARIBAS SECURITIES SERVICES S.C.A. 015 B000024 S 015 C010024 LISBON 015 D010024 PORTUGAL 015 E040024 X 015 A000025 DBS BANK LTD 015 B000025 S 015 C010025 SINGAPORE 015 D010025 SINGAPORE 015 E040025 X 015 A000026 FIRSTRAND BANK LIMITED 015 B000026 S 015 C010026 JOHANNESBURG 015 D010026 SOUTH AFRICA 015 E040026 X 015 A000027 STANDARD CHARTERED BANK KOREA LIMITED 015 B000027 S 015 C010027 SEOUL 015 D010027 SOUTH KOREA 015 E040027 X 015 A000028 SANTANDER SECURITIES SERVICES, S.A. 015 B000028 S 015 C010028 MADRID 015 D010028 SPAIN 015 E040028 X 015 A000029 NORDEA BANK AB (PUBL) 015 B000029 S 015 C010029 STOCKHOLM 015 D010029 SWEDEN 015 E040029 X 015 A000030 UBS SWITZERLAND AG 015 B000030 S 015 C010030 ZURICH 015 D010030 SWITZERLAND PAGE 5 015 E040030 X 015 A000031 JPMORGAN CHASE BANK NA 015 B000031 S 015 C010031 TAIPEI 015 D010031 TAIWAN 015 E040031 X 015 A000032 STANDARD CHARTERED BANK (THAI) PUBLIC CO LTD 015 B000032 S 015 C010032 BANGKOK 015 D010032 THAILAND 015 E040032 X 015 A000033 JPMORGAN CHASE BANK NA 015 B000033 S 015 C010033 LONDON 015 D010033 UNITED KINGDOM 015 E040033 X 015 A000034 FRANKLIN TEMPLETON INVESTOR SERVICES LLC 015 B000034 C 015 C010034 SAN MATEO 015 C020034 CA 015 C030034 94403 015 C040034 1906 015 E030034 X 015 A000035 HSBC BANK (VIETNAM) LTD 015 B000035 S 015 C010035 HO CHI MINH CITY 015 D010035 VIETNAM 015 E040035 X 015 A000036 DEUTSCHE BANK AG 015 B000036 S 015 C010036 ESCHBORN 015 D010036 GERMANY 015 E040036 X 015 A000037 EUROCLEAR BANK 015 B000037 S 015 C010037 BRUSSELS 015 D010037 EUROMARKET 015 E040037 X 015 A000038 THE HONGKONG AND SHANGHAI BANKING CORP LTD 015 B000038 S 015 C010038 COLOMBO 015 D010038 SRI LANKA 015 E040038 X 015 A000039 JPMORGAN CHASE BANK, N.A. 015 B000039 S 015 C010039 HONG KONG 015 D010039 HONG KONG 015 E040039 X 015 A000040 JP MORGAN CHASE BANK, N.A. 015 B000040 S 015 C010040 HONG KONG PAGE 6 015 D010040 CHINA 015 E040040 X 018 000000 Y 019 A000000 Y 019 B000000 186 019 C000000 FRNKTEMINV 020 A000001 CREDIT SUISSE HOLDINGS (USA) INC 020 B000001 13-2853402 020 C000001 10 020 A000002 BANQUE NATIONALE DE PARIS 020 C000002 10 020 A000003 HSBC SECURITIES (USA) INC 020 B000003 13-2650272 020 C000003 8 020 A000004 GOLDMAN, SACHS & CO 020 B000004 13-5108880 020 C000004 7 020 A000005 MACQUARIE SECURITIES (USA) INC 020 B000005 13-3789912 020 C000005 7 020 A000006 CITIGROUP GLOBAL MARKETS INC 020 B000006 11-2418191 020 C000006 7 020 A000007 UBS SECURITIES LLC 020 B000007 13-3873456 020 C000007 7 020 A000008 MERRILL LYNCH, PIERCE, FENNER & SMITH INC. 020 C000008 5 020 A000009 CREDIT LYONNAIS 020 B000009 13-2602298 020 C000009 5 020 A000010 DEUTSCHE BANK SECURITIES INC 020 B000010 13-2730828 020 C000010 4 021 000000 85 023 C000000 0 023 D000000 0 024 000000 N 026 A000000 N 026 B000000 Y 026 C000000 Y 026 D000000 Y 026 E000000 N 026 F000000 N 026 G010000 N 026 G020000 N 026 H000000 N 027 000000 Y 028 A010000 9728 028 A020000 0 028 A030000 0 PAGE 7 028 A040000 10479 028 B010000 11331 028 B020000 0 028 B030000 0 028 B040000 12505 028 C010000 14690 028 C020000 0 028 C030000 0 028 C040000 19800 028 D010000 13523 028 D020000 32797 028 D030000 0 028 D040000 18154 028 E010000 9537 028 E020000 22 028 E030000 0 028 E040000 12743 028 F010000 9191 028 F020000 0 028 F030000 0 028 F040000 12307 028 G010000 68000 028 G020000 32819 028 G030000 0 028 G040000 85988 028 H000000 2209 029 000000 Y 030 A000000 85 030 B000000 5.75 030 C000000 0.00 031 A000000 14 031 B000000 0 032 000000 71 033 000000 0 034 000000 Y 035 000000 1 036 A000000 N 036 B000000 0 037 000000 N 038 000000 0 039 000000 N 040 000000 Y 041 000000 Y 042 A000000 0 042 B000000 0 042 C000000 100 042 D000000 0 042 E000000 0 042 F000000 0 042 G000000 0 042 H000000 0 PAGE 8 043 000000 453 044 000000 156 045 000000 Y 046 000000 N 047 000000 Y 048 000000 0.000 048 A010000 1000000 048 A020000 1.300 048 B010000 4000000 048 B020000 1.250 048 C010000 5000000 048 C020000 1.200 048 D010000 5000000 048 D020000 1.150 048 E010000 5000000 048 E020000 1.100 048 F010000 0 048 F020000 0.000 048 G010000 0 048 G020000 0.000 048 H010000 0 048 H020000 0.000 048 I010000 0 048 I020000 0.000 048 J010000 0 048 J020000 0.000 048 K010000 20000000 048 K020000 1.050 049 000000 N 050 000000 N 051 000000 N 052 000000 N 053 A000000 Y 053 B000000 Y 053 C000000 N 054 A000000 Y 054 B000000 Y 054 C000000 Y 054 D000000 N 054 E000000 N 054 F000000 N 054 G000000 Y 054 H000000 Y 054 I000000 N 054 J000000 Y 054 K000000 N 054 L000000 Y 054 M000000 Y 054 N000000 N 054 O000000 Y 055 A000000 N PAGE 9 055 B000000 N 056 000000 Y 057 000000 N 058 A000000 N 059 000000 Y 060 A000000 N 060 B000000 N 061 000000 1000 062 A000000 N 062 B000000 0.0 062 C000000 0.0 062 D000000 0.0 062 E000000 0.0 062 F000000 0.0 062 G000000 0.0 062 H000000 0.0 062 I000000 0.0 062 J000000 0.0 062 K000000 0.0 062 L000000 0.0 062 M000000 0.0 062 N000000 0.0 062 O000000 0.0 062 P000000 0.0 062 Q000000 0.0 062 R000000 0.0 063 A000000 0 063 B000000 0.0 066 A000000 Y 066 B000000 N 066 C000000 Y 066 D000000 N 066 E000000 N 066 F000000 N 066 G000000 N 067 000000 N 068 A000000 N 068 B000000 Y 069 000000 N 070 A010000 Y 070 A020000 N 070 B010000 N 070 B020000 N 070 C010000 N 070 C020000 N 070 D010000 N 070 D020000 N 070 E010000 N 070 E020000 N 070 F010000 N 070 F020000 N PAGE 10 070 G010000 N 070 G020000 N 070 H010000 N 070 H020000 N 070 I010000 N 070 I020000 N 070 J010000 Y 070 J020000 N 070 K010000 Y 070 K020000 Y 070 L010000 Y 070 L020000 Y 070 M010000 Y 070 M020000 Y 070 N010000 Y 070 N020000 N 070 O010000 Y 070 O020000 N 070 P010000 Y 070 P020000 N 070 Q010000 N 070 Q020000 N 070 R010000 N 070 R020000 N 071 A000000 27302 071 B000000 42927 071 C000000 319553 071 D000000 9 072 A000000 6 072 B000000 0 072 C000000 1126 072 D000000 0 072 E000000 0 072 F000000 2102 072 G000000 0 072 H000000 0 072 I000000 367 072 J000000 35 072 K000000 0 072 L000000 38 072 M000000 11 072 N000000 62 072 O000000 0 072 P000000 0 072 Q000000 0 072 R000000 24 072 S000000 8 072 T000000 453 072 U000000 0 072 V000000 0 072 W000000 10 PAGE 11 072 X000000 3110 072 Y000000 6 072 Z000000 -1978 072AA000000 22957 072BB000000 1533 072CC010000 8674 072CC020000 0 072DD010000 2021 072DD020000 1220 072EE000000 31876 073 A010000 0.0000 073 A020000 0.0000 073 B000000 2.4000 073 C000000 0.0000 074 A000000 0 074 B000000 0 074 C000000 0 074 D000000 0 074 E000000 0 074 F000000 325231 074 G000000 0 074 H000000 0 074 I000000 1733 074 J000000 1179 074 K000000 0 074 L000000 417 074 M000000 0 074 N000000 328560 074 O000000 2051 074 P000000 551 074 Q000000 0 074 R010000 0 074 R020000 0 074 R030000 0 074 R040000 2278 074 S000000 0 074 T000000 323680 074 U010000 8467 074 U020000 5729 074 V010000 0.00 074 V020000 0.00 074 W000000 0.0000 074 X000000 28262 074 Y000000 0 075 A000000 0 075 B000000 323260 076 000000 0.00 077 A000000 Y 077 B000000 N 077 C000000 Y 077 D000000 Y PAGE 12 077 Q010000 Y 078 000000 N 080 C000000 0 081 B000000 0 082 B000000 0 083 B000000 0 084 B000000 0 086 A010000 0 086 A020000 0 086 B010000 0 086 B020000 0 086 C010000 0 086 C020000 0 086 D010000 0 086 D020000 0 086 E010000 0 086 E020000 0 086 F010000 0 086 F020000 0 SIGNATURE KRISTIN CARBONI TITLE ASSISTANT TREASURER EX-99.77Q1 OTHR EXHB 2 tcwf77q.txt LEGAL ATTACHMENT NAME OF REGISTRANT: Templeton China World Fund File No. 811-07876 EXHIBIT ITEM No. 77q1 (a): Copies of any material amendments to the registrant's charter or by-laws Amendment Effective February 1, 2018 To the By-Laws of Templeton China World Fund (the "Trust") WHEREAS, Article VIII, Section 2 of the By-Laws provides that the By-Laws may be amended by the Board of Trustees; and WHEREAS, by resolutions adopted October 24, 2017 at a meeting of the Board of Trustees of the Trust, the Board of Trustees unanimously authorized the By-Laws to be amended as set forth below. NOW THEREFORE, the By-Laws are hereby amended as follows: 1. ARTICLE VII, Sections 3, 4 and 6 are replaced in their entirety with the following: * * * * * * Section 3. CERTIFICATES FOR SHARES. No certificate or certificates for Shares shall be issued to Shareholders and no Shareholder shall have the right to demand or require that a certificate for Shares be issued to it. The Trust shall adopt and use a system of issuance, recordation and transfer of its shares by electronic or other means. Section 4. LOST CERTIFICATES. No new certificate for Shares shall be issued to replace an old certificate that is surrendered to the Trust for cancellation. In case any Share certificate or certificate for any other security is lost, stolen, or destroyed, such certificate shall be cancelled and the ownership of an uncertificated Share shall be recorded upon the books of the Trust, on such terms and conditions as the Board may require, including a provision for indemnification ofthe Board and the Trust secured by a bond or other adequate security sufficient to protect the Trust and the Board against any claim that may be made against either, including any expense or liability on account of the alleged loss, theft, or destruction of the certificate. * * * * * * Section 6. TRANSFERS OF SHARES. Shares are transferable, if authorized by the Declaration of Trust, only on the record books of the Trust by the Person in whose name such Shares are registered, or by his or her duly authorized attorney-in-fact or representative. Upon receipt of proper transfer instructions from the registered owner of certificated Shares, and upon the surrender for cancellation of such certificates representing the number of Shares to be transferred with an assignment and power of transfer endorsed thereon or attached thereto, duly executed, with such proof of the authenticity of the signature as the Trust or its agents may reasonably require, the Trust shall cancel the old certificate and record the transaction and ownership ofuncertificated Shares upon the books of the Trust. Upon receipt of proper transfer instructions from the registered owner of uncertificated Shares, such uncertificated Shares shall be transferred on the record books to the Person entitled thereto. The Trust, its transfer agent or other duly authorized agents may refuse any requested transfer of Shares, or request additional evidence of authority to safeguard the assets or interests of the Trust or of its Shareholders, in their sole discretion. In all cases of transfer by an attorney-in-fact, the original power of attorney, or an official copy thereof duly certified, shall be deposited and remain with the Trust, its transfer agent or other duly authorized agent. In case of transfers by executors, administrators, guardians or other legal representatives, duly authenticated evidence oftheir authority shall be presented to the Trust, its transfer agent or other duly authorized agent, and may be required to be deposited and remain with the Trust, its transfer agent or other duly authorized agent. Adopted and approved as of October 24, 2017 by the Board of Trustees. Steven J. Gray (Name) Assistant Secretary (Title) EX-99.77C VOTES 3 tcwf77C.txt LEGAL ATTACHMENT Name of Registrant: Templeton China World Fund File No. 811-07876 Exhibit Item No. 77C Matter Submitted to a Vote of Security Holders I. The Board of Trustees of Templeton China World Fund (the "Trust"), on behalf of Templeton China World Fund (the "Fund"), a series of the Trust, called a Special Meeting of Shareholders of the Fund (the "Meeting"), and was held at the offices of Franklin Templeton Investments, One Franklin Parkway, San Mateo, California 94403-1906 on October 30, 2017, adjourned on December 15, 2017 and again on December 29, 2017 at 10:00 a.m., Pacific time. During the Meeting, shareholders of the Fund voted on the following Proposals: 1. To elect a Board of Trustees of the Trust. 2. To approve the use of a "manager of managers" structure whereby the Fund's investment manager would be able to hire and replace subadvisers without shareholder approval. 3. To approve an amended fundamental investment restriction regarding investments in commodities. The results of the voting at the Special Shareholder Meeting are as follows: Proposal 1. The election of Board of Trustees for the Trust: For % Voted For % For of Outstanding Shares Withhold % Voted Withhold % Withhold of Outstanding Shares Harris J. Ashton 7,196,866 95.60% 53.51% 330,999 4.40% 2.46% Ann Torre Bates 7,200,263 95.65% 53.54% 327,601 4.35% 2.44% Mary C. Choksi 7,201,211 95.66% 53.54% 326,654 4.34% 2.43% Edith E. Holiday 7,198,476 95.62% 53.52% 329,389 4.38% 2.45% Gregory E. Johnson 7,196,209 95.59% 53.51% 331,655 4.41% 2.47% Rupert H. Johnson, Jr. 7,198,885 95.63% 53.52% 328,980 4.37% 2.45% J. Michael Luttig 7,200,130 95.65% 53.53% 327,735 4.35% 2.44% David W. Niemiec 7,199,326 95.64% 53.53% 328,539 4.36% 2.44% Larry D. Thompson 7,199,779 95.64% 53.53% 328,085 4.36% 2.44% Constantine D. Tseretopoulos 7,196,716 95.60% 53.51% 331,149 4.40% 2.46% Robert E. Wade 7,198,069 95.62% 53.52% 329,795 4.38% 2.45% Proposal 2. To approve the use of a "manager of managers" structure. For % Voted For % For of Outstanding Shares Against % Voted Against Abstain % Voted Abstain Broker Non-Vote % Broker Non-Vote Passed (Y or N) 4,815,069 63.96% 35.80% 418,973 5.57% 183,503 2.44% 2,110,321 28.03% Y Proposal 3. To approve an amended fundamental investment restriction regarding investments in commodities. For % Voted For % For of Outstanding Shares Against % Voted Against Abstain % Voted Abstain Broker Non-Vote % Broker Non-Vote Passed (Y or N) 4,861,045 64.57% 36.14% 333,860 4.43% 222,639 2.96% 2,110,321 28.03% Y EX-99.77D POLICIES 4 tcwf77D.txt LEGAL ATTACHMENT NAME OF REGISTRANT Templeton China World Fund File No. 811-07876 EXHIBIT ITEM No. 77D (g): Policies with respect to security investments From the Statement of Additional Information Supplement GOF SA8 03/18: SUPPLEMENT DATED MARCH 2, 2018 TO THE CURRENTLY EFFECTIVE STATEMENT OF ADDITIONAL INFORMATION OF EACH OF THE FUNDS LISTED BELOW Templeton China World Fund For the Fund, the following is added to the "Goals, Strategies and Risks - Glossary of Investments, Techniques, Strategies and Their Risks - Developing markets or emerging markets" section of the SAI: Investing through the Bond Connect Program. Foreign investors may invest in China Interbank bonds traded on the China Interbank Bond Market ("CIBM") through the China - Hong Kong Bond Connect program ("Bond Connect"). In China, the Hong Kong Monetary Authority Central Money Markets Unit holds Bond Connect securities on behalf of ultimate investors (such as the Fund) in accounts maintained with a China-based custodian (either the China Central Depository & Clearing Co. or the Shanghai Clearing House). This recordkeeping system subjects the Fund to various risks, including the risk that the Fund may have a limited ability to enforce rights as a bondholder and the risks of settlement delays and counterparty default of the Hong Kong sub-custodian. In addition, enforcing the ownership rights of a beneficial holder of Bond Connect securities is untested and courts in China have limited experience in applying the concept of beneficial ownership. Bond Connect uses the trading infrastructure of both Hong Kong and China and is not available on trading holidays in Hong Kong. As a result, prices of securities purchased through Bond Connect may fluctuate at times when a Fund is unable to add to or exit its position. Securities offered through Bond Connect may lose their eligibility for trading through the program at any time. If Bond Connect securities lose their eligibility for trading through the program, they may be sold but can no longer be purchased through Bond Connect. Bond Connect is subject to regulation by both Hong Kong and China and there can be no assurance that further regulations will not affect the availability of securities in the program, the frequency of redemptions or other limitations. Bond Connect trades are settled in Chinese currency, the renminbi ("RMB"). It cannot be guaranteed that investors will have timely access to a reliable supply of RMB in Hong Kong. Bond Connect is relatively new and its effects on the Chinese interbank bond market are uncertain. In addition, the trading, settlement and IT systems required for non-Chinese investors in Bond Connect are relatively new. In the event of systems malfunctions, trading via Bond Connect could be disrupted. In addition, the Bond Connect program may be subject to further interpretation and guidance. There can be no assurance as to the program's continued existence or whether future developments regarding the program may restrict or adversely affect the Fund's investments or returns. Finally, uncertainties in China tax rules governing taxation of income and gains from investments via Bond Connect could result in unexpected tax liabilities for a Fund.