Saving and investing

This Sub-Fund will invest in transferable securities, mainly equities and equity-related securities issued by companies located in or with main activities within the Peoples Republic of China, the Republic of China (Taiwan) or Hong Kong. The equities and equity-related securities must be quoted on various Official Stock Exchanges or other publicly recognised and regulated market.

The Sub-Fund may invest in securities of developing countries, with new or developing capital markets. These countries may have relatively unstable governments, economies based on only a few industries and securities markets that trade a limited number of securities. Securities of issuers located in these countries tend to have volatile prices and offer the potential for substantial losses as well as gains. Undertakings for collective investment, which invest their assets in these countries, are subject to the same risks. In addition, these securities may be less liquid than investments in more established markets as a result of inadequate trading volume or restrictions on trading imposed by the governments of such countries. In addition, developing markets may have increased risks associated with clearance and settlement. Delays in settlement could result in periods of uninvested assets, missed investment opportunities or losses to the Sub-Fund.

For the purpose of hedging and/or efficient portfolio management, the Sub-Fund may use financial derivative instruments as mentioned in Section 4.(B) of the Prospectus as well as the pooling and co-management described in Section 3.1 of the Prospectus.

The Sub-Fund may invest up to 10 % of its net assets in shares / units of other investment funds which comply with the rules set out in Section 4 of the Prospectus.

The Sub-Fund is suitable for any investor type including those who are not interested in or informed about capital market topics, but who see investment funds as a convenient way of participating in capital market developments. It is also suitable for more experienced investors wishing to attain defined investment objectives. The investor must have experience with volatile products. The investor must be able to accept significant temporary losies.

The Sub-Fund is suitable for investors who can afford to set aside the capital for at least 10 years.

USD (USD)

The value of the portfolio of the Sub-Fund is calculated on the basis of the market value of the individual equities held by the Sub-Fund, which are issued by companies domiciled in rapidly growing, but not yet fully developed national markets. The market value is influenced by the capital market players’ expectations concerning the economic development of the issuing companies, which are also affected by political risks of the countries of issue and these countries’ currency exchange rates. Due to the market concentration ratio, the possibilities of diversification in the Sub-Fund’s portfolio can be reduced.

The market capitalisation may be low, high volatility can appear. The Sub-Fund belongs to the „Step 6“ of the Distributor‘s made following risk classification.

Risk classification:

• Step 1: Bond Funds with low risk – with a minimum investment horizon of 1 year.
• Step 2: Bond Funds with medium risk – with a minimum investment horizon of 2 years.
• Step 3: Bond Funds with high risk – with a minimum investment horizon of 4 years.
• Step 4: Equity Funds with low risk – with a minimum investment horizon of 6 years.
• Step 5: Equity Funds with medium risk – with a minimum investment horizon of 8 years.
• Step 6: Equity Funds with high risk – with a minimum investment horizon of 10 years.

The value of your investment may go down as well as up. You may earn less money than you initially invested. Past performance is not a reliable guide to future performance. Fund investments in foreign markets are also affected by currency fluctuations, which may determine the value of fund units either positively or negatively. This information does not constitute investment advice, an offer or a solicitation of an offer to buy, sell, swap or hold units of specific investment funds. Before investing in a specific investment fund, we recommend that you familiarise yourself with the prospectus and rules.