Global Investors Fund Société d Investissement à Capital Variable (the Company ) TENTH ADDENDUM Important If you are in doubt about the contents of this document, you should consult your stockbroker, bank manager, accountant, solicitor or other independent financial adviser. This Addendum should be read in conjunction with and forms part of the Hong Kong Prospectus dated 17 July 2012 for the Company, as amended by the First Addendum dated 17 September 2012, Second Addendum dated 11 January 2013, Third Addendum dated 31 January 2013, Fourth Addendum dated 1 April 2013 and Fifth Addendum dated 14 June 2013, Sixth Addendum dated 17 September 2013, Seventh Addendum dated 29 January 2014, Eighth Addendum dated 28 March 2014 and Ninth Addendum dated 1 July 2014 (the Prospectus ). All capitalized terms in this Addendum have the same meaning as in the Prospectus, unless otherwise defined herein. The changes stated below have been made to the Prospectus: 1. Name change of the Management Company and Central Administration Agent With effect from 28 November 2014, the name of Global Investors Europe GmbH shall be changed to Global Investors GmbH. All reference to Global Investors Europe GmbH shall be amended to Global Investors GmbH accordingly. All reference to e shall be amended to GI accordingly. - The first sentence of second paragraph under the section headed Investment Managers on p.10 of the Prospectus shall be deleted and replaced by the following: Under the following scenarios, the name(s) of the respective branch of the Management Company (i.e. GI, Germany (Headquarter), GI, UK Branch or GI, France Branch), Investment Manager(s) or Sub-Investment-Manager(s) will be disclosed under the section headed Investor Choice. - The name and address of the Management Company and Central Administration Agent under the section Directory on p.30 of the Prospectus shall be deleted and replaced with the following: - 1 -
Global Investors GmbH ( GI ) Global Investors GmbH, Headquarter ( GI, Germany (Headquarter) ): Bockenheimer Landstrasse 42 44, 60323 Frankfurt / Main, Germany Global Investors GmbH, Luxembourg Branch ( GI, Luxembourg Branch ): 6A, route de Trèves, L-2633 Senningerberg Global Investors GmbH, UK Branch ( GI, UK Branch ): 199 Bishopsgate, London EC2M 3TY, United Kingdom Global Investors GmbH, France Branch ( GI, France Branch ): 3, Boulevard des Italiens 75113 Paris, Cedex 02, France All reference to Global Investors Europe GmbH, Headquarter shall be amended to Global Investors GmbH, Headquarter accordingly. All reference to GI Europe, Germany (Headquarter) shall be amended to GI, Germany (Headquarter) accordingly. All reference to Global Investors Europe GmbH, Luxembourg Branch shall be amended to Global Investors GmbH, Luxembourg Branch accordingly. All reference to e, Luxembourg Branch shall be amended to GI, Luxembourg Branch accordingly. All reference to Global Investors Europe GmbH, UK Branch shall be amended to Global Investors GmbH, UK Branch accordingly. All reference to GI Europe, UK Branch shall be amended to GI, UK Branch accordingly. All reference to Global Investors France SA shall be amended to Global Investors GmbH, France Branch accordingly. All reference to GI France shall be amended to GI, France Branch accordingly. - The definition of Central Administration Agent and Management Company under the Section Glossary of Terms on p.31 of the Prospectus shall be deleted and replaced with the following, respectively: Global Investors GmbH 2. Independent Auditor With effect from 5 December 2014, the address of the Independent Auditor under the section Directory on p.30 of the Prospectus shall be deleted and replaced with the following: 2, rue Gerhard Mercator, L-1014 Luxembourg - 2 -
3. Investment Managers / Sub-Investment Managers GI US - With immediate effect, the details of Investment Manager Global Investors U.S. LLC ( GI US, San Diego ) and Global Investors U.S. LLC ( GI US San Francisco ) under the section Investment Managers / Sub-Investment Managers on p.30 of the Prospectus, shall be deleted and replaced with the following: Global Investors U.S. LLC ( GI US ), 600 West Broadway, 31st Floor, San Diego, CA 92101, USA; 555 Mission Street, 17th Floor, San Francisco, California 94105, USA All references to GI US, San Diego and GI US, San Francisco shall be amended to GI US accordingly. 4. New Share Class P8 and PT8 With effect from 5 December 2014, new Share Class P8 and PT8 Shares are introduced to certain Sub-Funds. Accordingly, changes shall be made to the following parts of the Prospectus: Class of Shares - The first two sentences of the first paragraph under the section headed Class of Shares on p.11 of the Prospectus shall be deleted and replaced with the following: Shares in the Sub-Funds may be available in several Share Classes, currently Share Class A, Share Class AM, Share Class AT, Share Class P, Share Class PT, Share Class P8, Share Class PT8, Share Class I, Share Class IT, Share Class W and Share Class WT Shares. Subject to any decision at a general meeting, Share Classes A, P, P8, I and W are basically distribution Share Classes, and Share Classes AT, PT, PT8, IT and WT are basically accumulation share classes. Minimum Subscription, Redemption, Holding and Conversion Amounts The table in the Section headed Minimum Subscription, Redemption, Holding and Conversion Amounts on p.13 of the Prospectus shall be deleted and shall be amended according to the following mark-up: - 3 -
Class of Shares Minimum Initial Investment Minimum Subsequent Investment Minimum Holding Amount Minimum Redemption Amount *1 Share Class A, AT and AM Shares *2 5,000 1,000 3,000 1,000 5,000 1,000 3,000 1,000 HKD HKD50,000 HKD10,000 HKD30,000 HKD10,000 Share Class P and PT Shares *2 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 HKD HKD5,000,000 HKD5,000,000 HKD5,000,000 HKD5,000,000 Share Class P8 and PT8 Shares *2 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 HKD HKD5,000,000 HKD5,000,000 HKD5,000,000 HKD5,000,000 Share Class I and IT Shares *2 2,000,000 500,000 1,000,000 500,000 2,000,000 500,000 1,000,000 500,000 HKD HKD20,000,000 HKD5,000,000 HKD10,000,000 HKD5,000,000 Share Class W and WT Shares *2 10,000,000 500,000 10,000,000 500,000 10,000,000 500,000 10,000,000 500,000 HKD HKD100,000,000 HKD5,000,000 HKD100,000,000 HKD5,000,000 *1 *2 Or such lesser amount as may constitute the whole of a Shareholder s holding. Or an equivalent amount in AUD, CAD, CHF, GBP, JPY, NZD or SGD. Fees and Charges The table and the footnotes in the section Appendix III Fees and Charges on p. 89 to p.91 of the Prospectus shall be amended according to the following mark-up: Sub-Fund Name Share Sales Charge 2) 5) / All-in-Fee 4) Class Conversion Fee 3) 5) Taxe d Abonnement Asia Pacific A/AM/AT 5.00 % 1.80 % 0.05 % p.a. P/PT 2.00 % 1.38 % 0.05 % p.a. I/IT 2.00 % 0.95 % 0.01 % p.a. - 4 -
Asian Multi Income Plus A/AM/AT 5.00 % 1.50 % 0.05 % p.a. P/PT 2.00 % 1.15 % 0.05 % p.a. P8/PT8 2.00% 0.95% 0.05% p.a. I/IT 2.00 % 0.89 % 0.01 % p.a. Best Styles Euroland A/AM/AT 5.00 % 1.30 % 0.05 % p.a. P/PT 2.00 % 1.08 % 0.05 % p.a. I/IT 2.00 % 0.70 % 0.01 % p.a. Brazil A/AM/AT 5.00 % 2.25 % 0.05 % p.a. P/PT 2.00 % 1.85 % 0.05 % p.a. I/IT 2.00 % 1.85 % 0.01 % p.a. BRIC A/AM/AT 5.00 % 2.25 % 0.05 % p.a. P/PT 2.00 % 1.85 % 0.05 % p.a. I/IT 2.00 % 1.28 % 0.01 % p.a. China A/AM/AT 5.00 % 2.25 % 0.05 % p.a. P/PT 1.28 % 0.05 % p.a. I/IT 1.28 % 0.01 % p.a. W/WT 0.93% 0.01% Emerging Asia A/AM/AT 5.00 % 2.25 % 0.05 % p.a. P/PT 1.85 % 0.05 % p.a. I/IT 1.28 % 0.01 % p.a. Enhanced Short Term Euro A/AM/AT 0.45 % 0.05 % p.a. P/PT 0.42 % 0.05 % p.a. I/IT 0.23 % 0.01 % p.a. Euro High Yield Bond A/AM/AT 3.00 % 1.35 % 0.05 % p.a. P/PT 0.79 % 0.05 % p.a. I/IT 0.79 % 0.01 % p.a. - 5 -
Euroland Growth A/AM/AT 5.00 % 1.80 % 0.05 % p.a. P/PT 2.00 % 1.38 % 0.05 % p.a. I/IT 2.00 % 0.95 % 0.01 % p.a. Europe Conviction A/AM/AT 5.00 % 1.80 % 0.05 % p.a. P/PT 2.00 % 1.38 % 0.05 % p.a. I/IT 2.00 % 1.38 % 0.01 % p.a. Europe Growth A/AM/AT 5.00 % 1.80 % 0.05 % p.a. P/PT 2.00 % 0.95 % 0.05 % p.a. P8/PT8 2.00% 1.10% 0.05% p.a. I/IT 2.00 % 0.95 % 0.01 % p.a. Europe Growth Select A/AM/AT 5.00 % 1.80 % 0.05 % p.a. P/PT 2.00 % 0.95 % 0.05 % p.a. P8/PT8 2.00% 1.10% 0.05% p.a. I/IT 2.00 % 0.95 % 0.01 % p.a. European Dividend A/AM/AT 5.00 % 1.80 % 0.05 % p.a. P/PT 2.00 % 0.95 % 0.05 % p.a. P8/PT8 2.00% 1.10% 0.05% p.a. I/IT 2.00 % 0.95 % 0.01 % p.a. Flexi Asia Bond A/AM/AT 5.00 % 1.50 % 0.05 % p.a. P/PT 2.00 % 0.82 % 0.05 % p.a. I/IT 2.00 % 0.82 % 0.01 % p.a. Global Agricultural Trends A/AM/AT 5.00 % 2.05 % 0.05 % p.a. P/PT 2.00 % 1.08 % 0.05 % p.a. I/IT 2.00 % 1.08 % 0.01 % p.a. Global EcoTrends A/AM/AT 5.00 % 2.05 % 0.05 % p.a. P/PT 2.00 % 1.50 % 0.05 % p.a. I/IT 2.00 % 1.08 % 0.01 % p.a. - 6 -
Global A/AM/AT 5.00 % 1.80 % 0.05 % p.a. P/PT 2.00 % 1.38 % 0.05 % p.a. I/IT 2.00 % 0.95 % 0.01 % p.a. Global Unconstrained A/AM/AT 5.00 % 2.05 % 0.05 % p.a. P/PT 2.00 % 1.50 % 0.05 % p.a. I/IT 2.00 % 1.50 % 0.01 % p.a. Global Hi-Tech Growth A/AM/AT 5.00 % 2.05 % 0.05 % p.a. P/PT 1.53 % 0.05 % p.a. I/IT 1.53 % 0.01 % p.a. Global Metals and Mining A/AM/AT 5.00 % 1.80 % 0.05 % p.a. P/PT 2.00 % 1.38 % 0.05 % p.a. I/IT 2.00 % 0.95 % 0.01 % p.a. Global Small Cap A/AM/AT 5.00 % 2.05 % 0.05 % p.a. P/PT 2.00 % 1.08 % 0.05 % p.a. I/IT 2.00 % 1.08 % 0.01 % p.a. Global Sustainability A/AM/AT 5.00 % 1.80 % 0.05 % p.a. P/PT 2.00 % 1.38 % 0.05 % p.a. I/IT 2.00 % 1.38 % 0.01 % p.a. Greater China Dynamic A/AM/AT 5.00 % 2.25 % 0.05 % p.a. P/PT 2.00 % 1.65 % 0.05 % p.a. P8/PT8 2.00% 1.26% 0.05% p.a. I /IT 2.00 % 1.08 % 0.01 % p.a. HKD Income A/AM/AT 5.00 % 1.00 % 0.05 % p.a. P/PT 0.85 % 0.05 % p.a. P8/PT8 2.00% 0.65% 0.05% p.a. I/IT 2.00 % 0.57 % 0.01 % p.a. - 7 -
Hong Kong A/AM/AT 5.00 % 2.05 % 0.05 % p.a. P/PT 1.53 % 0.05 % p.a. I/IT 1.08 % 0.01 % p.a. Income and Growth A/AM/AT 5.00 % 1.50 % 0.05 % p.a. P/PT 2.00 % 0.84 % 0.05 % p.a. P8/PT8 2.00% 0.97% 0.05% p.a. I/IT 2.00 % 0.84 % 0.01 % p.a. India A/AM/AT 5.00 % 2.50 % 0.05 % p.a. P/PT 2.00 % 0.05 % p.a. I/IT 1.28 % 0.01 % p.a. Indonesia A/AM/AT 5.00 % 2.25 % 0.05 % p.a. P/PT 1.85 % 0.05 % p.a. I/IT 1.85 % 0.01 % p.a. Japan A/AM/AT 5.00 % 1.80 % 0.05 % p.a. P/PT 1.38 % 0.05 % p.a. I/IT 0.95 % 0.01 % p.a. Korea A/AM/AT 5.00 % 2.25 % 0.05 % p.a. P/PT 1.85 % 0.05 % p.a. I/IT 1.85 % 0.01 % p.a. Little Dragons A /AM/AT 5.00 % 3.25 % 0.05 % p.a. P/PT 2.00 % 0.05 % p.a. I/IT 2.00 % 0.01 % p.a. Oriental Income A/AM/AT 5.00 % 1.80 % 0.05 % p.a. P/PT 0.95 % 0.05 % p.a. I/IT 0.95 % 0.01 % p.a. Thailand A/AM/AT 5.00 % 2.25 % 0.05 % p.a. P/PT 1.85 % 0.05 % p.a. I/IT 1.28 % 0.01 % p.a. - 8 -
Tiger A/AM/AT 5.00 % 2.25 % 0.05 % p.a. P/PT 1.85 % 0.05 % p.a. I/IT 1.85 % 0.01 % p.a. Total Return Asian A/AM/AT 5.00 % 2.05 % 0.05 % p.a. P/PT 1.08 % 0.05 % p.a. P8/PT8 2.00% 1.26% 0.05% p.a. I/IT 1.53 % 0.01 % p.a. US Fund A/AM/AT 5.00 % 1.80 % 0.05 % p.a. P/PT 2.00 % 0.95 % 0.05 % p.a. I/IT 2.00 % 1.38 % 0.01 % p.a. US High Yield A/AM/AT 5.00 % 1.39 % 0.05 % p.a. P/PT 2.00 % 0.75 % 0.05 % p.a. P8/PT8 2.00% 0.87% 0.05% p.a. I/IT 2.00 % 0.75 % 0.01 % p.a. US Income A/AM/AT 5.00 % 2.00 % 0.05 % p.a. P/PT 2.00 % 1.45 % 0.05 % p.a. I/IT 2.00 % 0.70 % 0.01 % p.a. 2) 3) 4) 5) Includes all Shares within all respective Share Classes. Indications are made within this column when exceptions apply. Any Sales Charge, as applicable, shall be payable to the Hong Kong Distributor or the relevant Sub- Distributors as the case may be. When issuing Shares of the Sub-Funds, the Management Company has discretion to levy a lower Sales Charge. The Management Company has discretion to levy a lower Conversion Fee. The Management Company has discretion to levy a lower fee. A dash is used to indicate that no charge or fee is currently levied. 5. Class of Shares - The second last paragraph under the section headed Class of Shares on p.12 of the Prospectus shall be deleted and replaced with the following: The Company may also seek to hedge against the risk of interest rate movements of certain Share Classes by reducing the duration to a pre-defined target duration. The predefined target duration shall be between zero and six months. In case of volumes of the Share Class assets below 5 million Euro the actual duration might exceed temporarily six - 9 -
months. Again, all profits, losses and expenses associated with such a hedging transaction will be allocated solely to the applicable Share Class or Classes. The Company will use derivatives as described in Appendix IIA No. 1.d) based on Interestbearing Securities or interest rates as underlying as hedging transactions. There is no guarantee that the duration hedging will reduce the risk of Share Class sensitivity to losses caused by changes in interest rate movements entirely. Especially, credit risks will not be hedged compared to the base portfolio. If a Share Class seeks to hedge against the risk of interest rate movements by reducing the duration to the pre-defined target duration, the Share Class will contain the additional letters HD [e.g. for share class type A, Reference Currency : A--HD ()]. Share Classes which seek to hedge against the risk of interest rate movements of certain Share Classes by reducing the duration to a pre-defined target duration will only be launched for Sub-Funds which invest at least 51% of the Sub-Fund s assets in Interest-bearing Securities, money market instruments, cash and/or UCITS or other UCI which invest predominantly into the aforementioned assets. 6. Enhanced Short Term Euro With effect from 5 December 2014, the table on p.57-58 of the Prospectus under Risk Management Process in respect of Enhanced Short Term Euro shall be amended as follows: Sub-Fund Name Enhanced Short Term Euro Approach Absolute Value-at-Risk 7. HKD Income With effect from 5 December 2014, the first two sentences of paragraph b) of the investment principles of HKD Income under the section C. Additional Investment Restrictions of the Appendix IIC of the Prospectus shall be amended according to the following mark-up: b) Subject in particular to the provisions of letter j), up to 30 % of the value of the Sub-Fund may be invested in assets that at the time of the acquisition are High Yield Investments whose issuers have their registered offices or principal place of business in an Asian country. Russia and Turkey are not considered to be Asian countries in this context. 8. Hong Kong With effect from 5 December 2014, the first sentence of letter a) of the investment principles of Hong Kong under the section C. Additional Investment Restrictions of the Appendix IIC of the Prospectus shall be amended according to the following mark-up: a) Subject in particular to the provisions of letter e), at least 70 % of Sub-Fund assets are invested in Equities of companies which are incorporated or listed in Hong Kong or which derive a predominant portion of their revenue and/or profits from Hong Kong. - 10 -
9. US Income With effect from 5 December 2014, paragraph b) of the investment principles of US Income under the section C. Additional Investment Restrictions of the Appendix IIC of the Prospectus shall be amended according to the following mark-up: b) At least 70 % of the Sub-Fund assets are invested in Interest-bearing Securities whose issuers are companies that have their registered office in the U.S. or whose repayment is guaranteed by a company that has its registered office in the U.S. or which are constituents of either the Merrill Lynch U.S. Corporates 1-35 Years Index or the Merrill Lynch 0-5 yyears BB-B U.S. High Yield Index. 10. Overview of Global Investors Fund With effect from 28 November 2014, the table under the section headed Investor Choice, together with its footnotes, shall be deleted and amended according to the following mark-up: Sub-Fund Name Branch of Management Company carrying out investment management functions; and / or 2) Investment Manager / Sub- Investment Manager + Base Currency Investment Objective Asia Pacific 2) RCM AP The investment policy is geared towards longterm capital growth by focusing on equity markets in the Asia-Pacific region, excluding Japan. Asian Multi Income Plus 2) GI Singapore The investment objective is to provide investors with long-term capital appreciation and income. The Sub-Fund will seek to achieve its investment objective through investments in Asian currency denominated debt markets and Asian equity / business trust markets. Best Styles Euroland e, Germany (Headquarter) The investment policy is geared towards longterm capital growth through equity-based investments in Eurozone markets. The Investment Manager selects securities based on a combination of fundamental analysis and quantitative risk management. In this process, individual securities are analysed, and assessed and selected in accordance with different investment style orientations. In this framework - 11 -
and depending on the market situation, the Investment Manager may focus on one or more different investment style orientations or broadly diversify the underlying investment style orientations. With the objective of achieving additional returns, the Investment Manager may also assume separate foreign currency risks with regard to currencies of OECD member states, even if the Sub-Fund does not include any assets denominated in these respective currencies*. Brazil e, UK Branch The investment objective is to provide investors with long-term capital appreciation. The Sub-Fund will seek to achieve its investment objective primarily by investing in the equity markets of the Federative Republic of Brazil. BRIC e, Germany (Headquarter) The investment policy is geared towards longterm capital growth by investing Sub-Fund assets in global emerging equity markets, with the focus on Brazil, Russia, India and China. China Emerging Asia 2) RCM AP The investment objective is to provide investors with capital appreciation in the long-term. The Sub-Fund will seek to achieve its investment objective primarily through People s Republic of China ( PRC ) related investments in the equity markets. 2) RCM AP The investment objective is to achieve capital appreciation in the long-term. The Sub-Fund will seek to achieve its investment objective primarily through investment in the equity markets of the developing economies of Asia, within the framework of the investment principles. Enhanced Short Term Euro e, Germany (Headquarter) The investment objective is geared towards generating a return above the market based on the Euro money market, in Euro () terms. With the objective of achieving additional returns, the Investment Manager may also assume separate risks related to bonds and money markets and may also assume separate currency positions, corresponding derivatives and foreign currencies, even if the Sub-Fund does not include any assets denominated in these respective currencies. Euro High Yield Bond 2) GI, France Branch The investment policy is geared towards generating capital growth in Euro terms over the long term. The Sub-Fund will seek to achieve its investment objectives primarily through investment in euro denominated High-Yield Investments. - 12 -
Euroland Growth e, Germany (Headquarter) The investment policy is geared towards longterm capital growth primarily through positions on Eurozone equity markets within the framework of the investment principles. To this end, the Investment Manager will acquire Equities that it considers, together with all Equities held in Sub- Fund assets, to represent an equity portfolio oriented towards Growth Stocks. Europe Conviction e, Germany (Headquarter) The investment policy is geared towards generating capital appreciation on the long-term. The Sub-Fund will seek to achieve its investment objective primarily through investment in the European equity markets. Europe Growth e, Germany (Headquarter) The investment policy is geared towards longterm capital growth primarily through positions on European equity markets within the framework of the investment principles. To this end, the Investment Manager will acquire Equities that it considers, together with all Equities held in Sub- Fund assets, to represent an equity portfolio oriented towards Growth Stocks. Europe Growth Select e, Germany (Headquarter) The investment policy is geared towards longterm capital growth primarily through positions on European equity markets within the framework of the investment principles. To this end, the Investment Manager will acquire Equities that it considers, together with all Equities held in Sub- Fund assets, to represent an equity portfolio with a focus on larger companies (large caps) that might have high growth potential (the Growth Stocks ). European Dividend e, Germany (Headquarter) The investment policy is geared towards longterm capital growth primarily through equity based investments in European markets that are expected to achieve adequate dividend returns. Flexi Asia Bond 2) GI Singapore The investment objective is to provide investors with long-term capital appreciation and income. The Sub-Fund will seek to achieve its investment objective through investments primarily in Euro,, GBP, JPY, AUD, NZD or any Asian currency denominated debt markets, with the focus on Asian countries. The investment policy is geared towards generating annualised returns while taking into account the opportunities and risks in Asian bond markets. Global Agricultural Trends 2) GI US, San Francisco The investment policy is geared towards capital growth over the long term. The Sub-Fund will invest on the global equity markets, focusing on companies that participate in the sectors "Raw - 13 -
Materials Production" or "Product Processing & Distribution". Global EcoTrends e, UK Branch The investment policy aims to achieve long-term capital growth through global positions in companies that are at least active in the sectors EcoEnergy, Pollution Control and Clean Water. With the objective of achieving additional returns, the Investment Manager may also assume separate foreign currency risks with regard to currencies of OECD member states, even if the Sub-Fund does not include any assets denominated in these respective currencies*. Global e, UK Branch The investment policy is geared towards longterm capital growth by investing Sub-Fund assets on global equity markets, with the focus on the acquisition of securities that the Investment Manager considers to have above-average potential for profit growth and / or attractive valuations. With the objective of achieving additional returns, the Investment Manager may also assume separate foreign currency risks with regard to currencies of OECD member states, even if the Sub-Fund does not include any assets denominated in these respective currencies*. Global Unconstrained e, Germany (Headquarter) The investment policy is geared towards generating capital appreciation on the long-term. The Sub-Fund will seek to achieve its investment objective primarily through investment in the global equity markets. To this end, the Investment Manager will acquire Equities that it considers, together with all Equities held in Sub-Fund assets, to represent a concentrated equity portfolio with a focus on stock selection based on the fundamental of the stocks. Global Hi-Tech Growth 2) GI US, San Francisco The investment objective is to provide investors with capital appreciation in the long-term. The Sub-Fund will seek to achieve its investment objective by investing primarily in the equity market of information technology sector. Global Metals and Mining e, Germany (Headquarter) The investment policy aims to generate capital growth over the long term by investing in the global equity markets focusing on natural resources-related companies. - 14 -
Global Small Cap 1 e, UK Branch 2) GI US, San Diego, RCM AP and GI Japan The investment policy is geared towards longterm capital growth by investing Sub-Fund assets in global equity markets, with the focus on smaller companies ( small caps ). Global Sustainability e, UK Branch The investment policy is geared towards longterm capital growth by investing Sub-Fund assets in a global selection of companies with sustainable business practices. With the objective of achieving additional returns, the Investment Manager may also assume separate foreign currency risks with regard to currencies of OECD member states, even if the Sub-Fund does not include any assets denominated in these respective currencies*. Greater China Dynamic HKD Income Hong Kong 2) RCM AP The investment policy is geared towards longterm capital growth. The Sub-Fund will seek to achieve its investment objective by investing primarily in the equity markets of Greater China, which includes Mainland China, Hong Kong, Macau and Taiwan, or in the equity markets of companies that derive a predominant portion of their revenue and / or profits from Greater China. 2) RCM AP HKD The investment objective is to provide investors with long-term capital appreciation and income. The Sub-Fund will seek to achieve its investment objective through investments in Hong Kong Dollar denominated debt markets. 2) RCM AP HKD The investment objective is to achieve capital appreciation in the long-term. The Sub-Fund will seek to achieve its investment objective primarily through Hong Kong related investments in equity markets. Income and Growth 2) GI US, San Diego The investment policy is geared towards generating long term capital appreciation and income. The Sub-Fund seeks to achieve its objective by investing primarily in a combination of common stocks and other equity securities, debt securities and convertible securities. The allocation of the Sub-Fund s investments across asset classes will vary substantially from time to time. The Sub- Fund s investments in each asset class are based upon the Investment Managers assessment of economic conditions and market factors, including equity price levels, interest rate levels and their - 15 -
anticipated direction. India Indonesia 2) RCM AP The investment objective is to achieve capital appreciation in the long-term. The Sub-Fund will seek to achieve its investment objective by investing principally in Indian Subcontinent, including India, Pakistan, Sri Lanka and Bangladesh. 2) RCM AP The investment objective is to achieve capital appreciation in the long-term. The Sub-Fund will seek to achieve its investment objective primarily through investments in the equity markets of Indonesia. Japan 2) RCM AP/GI Japan The investment objective is to achieve capital appreciation in the long-term. The Sub-Fund will seek to achieve its investment objective primarily through investments in the equity markets of Japan. Korea Little Dragons Oriental Income Thailand 2) RCM AP The investment objective is to achieve capital appreciation in the long-term. The Sub-Fund will seek to achieve its investment objective primarily through investments in the equity markets of the Republic of Korea. 2) RCM AP The investment objective is to provide investors with capital appreciation in the long-term. The Sub-Fund will seek to achieve its investment objective by primarily small and mid cap equity market based investments related to Asian countries excluding Japan. 2) RCM AP The investment policy is geared towards capital growth in the long term by investing Sub-Fund assets on equity and fixed income markets of the Asia Pacific region. 2) RCM AP The investment objective is to achieve capital appreciation in the long-term. The Sub-Fund will seek to achieve its investment objective primarily through investment in the equity markets of Thailand. Tiger^ 2) RCM AP The investment objective is to provide investors with capital appreciation in the long-term. The Sub-Fund will seek to achieve its investment objective primarily through equity market based investments related to the People s Republic of China, Hong Kong, Singapore, the Republic of Korea, Taiwan, Thailand, Malaysia or the Philippines. With the objective of achieving additional returns, the Investment Manager may also assume separate risks related to equities by implementing - 16 -
a market neutral long / short equity strategy. Total Return Asian 2) RCM AP The investment policy is geared towards longterm capital growth and income. The Sub-Fund will seek to achieve its investment objectives primarily through investment in the equity markets of the Republic of Korea, Taiwan, Thailand, Hong Kong, Malaysia, Indonesia, Philippines, Singapore and China. US Fund 2) GI US, San Francisco The investment policy is geared towards longterm capital growth by focusing on the US equity markets. US High Yield 2) GI US, San Diego The investment policy is geared towards generating long term capital appreciation and income. The Sub-Fund will seek to achieve its investment objective by investing primarily in U.S. corporate bonds rated below investment grade. US Income 2) GI US, San Diego The investment policy is geared towards generating long term capital appreciation and income. The Sub-Fund will seek to achieve its investment objective by investing primarily in U.S. corporate bonds. + Full names of branch of the management company, the Investment Managers / Sub-Investment Managers can be found in the Directory section below. * The currency management strategies adopted to achieve additional returns include exploitation of the market inefficiencies (resulting from the participation in the market of actors which are not aiming at maximising returns, e.g. central banks) and of the low correlation between the currency markets and other markets by, for example, aiming at identifying trends in the evolutions of the currency markets, or exploiting interest rate differentials between different currencies. By applying these active currency management strategies, there is a possibility to create added value for the investors even when the equity markets in which the Sub-Fund is focused are in a downturn. 1 e, UK Branch has partially delegated the investment management to GI US, San Diego and RCM AP each of these aforementioned companies acting as sub-investment manager as far as it concerns the respective regional market of the aforementioned companies. In addition, RCM AP has partially delegated the investment management as far as it concerns Japanese markets to GI Japan acting as a sub-investment manager. ^ Description of the Sub-Fund s investment strategy The Sub-Fund invests at least 70% of its assets in equity market based investments related to the People s Republic of China, Hong Kong, Singapore, the Republic of Korea, Taiwan, Thailand, Malaysia or the Philippines. Additionally, the Sub-Fund implements a market neutral long/short equity strategy using a derivative structure (e.g. swap) as described in more detail below. This has been effective since 29 January 2014. Description of the market neutral long/short equity strategy (the Strategy ) Generally, the Strategy is executed by investing in certain stocks ( Long Positions ), while selling uncovered contrarian positions in other stocks ( Short Positions ) with the intention of achieving limited or zero net exposure to broad market movements. The Strategy will be managed by the Investment Manager, RCM Asia Pacific Limited. In general, the Strategy intends to profit from inefficiencies or market misperceptions between related securities before they have been fully appreciated in value in the market. The Strategy seeks to benefit from Long Positions in those stocks which are perceived as undervalued, while taking Short Positions in stocks which appear to be overpriced. By taking Long and Short Positions, the Strategy seeks to reduce (or even hedge out) common market or systematic risks. The Strategy - 17 -
aims to profit from relative price movements of individual stocks independent of the direction in which the broad market moves. The Strategy will focus on Equities of companies which are incorporated in Asian countries as mentioned under the investment strategy, Australia or New Zealand, or which derive a predominant portion of their revenue and/or profits from those countries. Net and Gross Exposure The net market exposure of the Strategy (Long Positions minus Short Positions) is expected to be in a maximum range of +10 % and -10 % of the Sub-Fund s Net Asset Value. To the extent that the net market exposure differs from 0, the Strategy is not able to reduce common market or systematic risks but exposes to them. The Strategy s gross exposure is allowed to be a maximum of 40% of the Sub-Fund s Net Asset Value (20% Long Positions plus 20% Short Positions). Implementation of the Strategy The Strategy is implemented using a derivatives structure (e.g. swaps), on the positive or negative performance resulting from the Strategy s investment in Equities ( Total Return Swap ). Through the strategy, the respective counterparty will provide the Sub-Fund with an exposure to the economic gain/loss in the investment performance of the Strategy (net of indirect costs). The counterparty will provide a payment to the Sub-Fund if there s a positive performance of the Strategy (net of indirect costs); however, if this performance is negative, the Sub-Fund will make a payment (including indirect costs) to the respective counterparty of the derivative structure. Usually, the overall derivatives structure will be implemented with one counterparty. Such counterparty has to comply with the general requirements of the Investment Manager for counterparty selection. In addition, the counterparty will be selected by applying the best execution criteria of the Investment Manager. Given the complexity of the overall derivatives structures the counterparty s ability to handle such complex structures will be of significant importance within this process. Through regular and ad hoc resets of the Total Return Swap via the settlement of the net payment of the Strategy between the Sub-Fund and the counterparty, it will be ensured that the maximum counterparty risk of the selected counterparty will not exceed 10% of the Sub-Fund s NAV. The counterparty assumes no discretion over the composition or management of the Strategy. The Investment Manager does not require the approval of the counterparty to implement any transaction within the scope of the Strategy. 5 December 2014-18 -
This page is left blank intentionally
This page is left blank intentionally