Saving and investing

This Sub-Fund will invest in transferable securities, mainly equities and equity-related securities of small and medium sized companies quoted on various Official Stock Exchanges in emerging markets. The investment in emerging markets countries may include, but will not be limited to investment in the countries mentioned in the following paragraph, provided that they are qualified as regulated markets. The investments will be made according to expected performance; sectors, countries and currencies may be overweighted or underweighted accordingly.

List of countries: Mexico, Brazil, Chile, Argentina, Peru, Venezuela, Colombia, Korea, Taiwan, Hong Kong, China, Malaysia, Thailand, Indonesia, Philippines, India, Sri Lanka, Russia (with maximum 10 % of the net assets), Poland, Hungary, Czech Republic, Estonia, Lithuania, Latvia, Slovenia, Slovakia, Croatia, Romania, Turkey, Israel, Egypt, Jordan, Morocco, South Africa, Bulgaria and Cyprus, and in other emerging market countries as defined by the emerging markets classification of Standard and Poor’s/IFCG and Standard and Poor’s/Frontier Markets.

Furthermore the Sub-Fund is allowed to invest in companies with a major part of their business in emerging markets but quoted in other OECD countries.

The Sub-Fund may invest in securities of developing countries, including Eastern Europe, 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.

Furthermore, investments in Russia are currently subject to certain heightened risks with regard to the ownership and custody of securities. In Russia this is evidenced by entries in the books of a company or its registrar (which is neither an agent nor responsible to the Custodian). No certificates representing ownership of Russian companies will be held by the Custodian or any of its local correspondents or in an effective central depository system. As a result of this system and the lack of the effective state regulation and enforcement, the Sub-Fund could lose its registration and ownership of Russian securities through fraud, negligence or even mere oversight. In addition, Russian debt securities have an increased custodial risk associated with them as such securities are, in accordance with market practice, held in custody with Russian institutions which may not have adequate insurance coverage to cover loss due to theft, destruction or default whilst such assets are in its custody.

The Sub-Fund’s investments in Russia, combined with investments that are made in other assets than Transferable Securities as defined in section 4.1 through 4.5 of the Prospectus, shall not exceed 10 % of the net assets of the Sub-Fund, except for transferable securities and money market instruments which are listed on the Moscow Interbank Currency Exchange (MICEX) and on the Russian Trading System (RTS) which are recognized as regulated markets.

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.