RISK DESCRIPTIONS
The risk descriptions below correspond to the risk factors named in the information about thefunds. To permit the risks to be read properly in connection with any fund’s named risks,each risk is described as for an individual fund.
While the risk information in this prospectus is intended to give an idea of the main risks
associated with each fund, any fund could be affected by other risks in this section as well asrisks not named here, and the risk descriptions themselves are not intended as exhaustive.
Any of these risks could cause a fund to lose money, to perform less well than similar
investments, to experience high volatility (ups and downs in NAV), or to fail to meet its
objective over any period of time.
Counterparty risk An entity with which the fund does business could become unwilling or
unable to meet its obligations to the fund.
Country risk – China All investments in China are subject to the risks described under“Emerging market risk” below. In addition, investments that are purchased or held inconnection with a QFII licence or the Stock Connect program may be subject to additionalrisks, as follows.
QFII Licence Some funds may invest in local Chinese securities (“China A securities”) using
a qualified foreign institutional investor (“QFII”) license. Chinese regulators require that thename of the QFII licence holder be used in connection with assets held on behalf of therelevant funds. The regulators acknowledge that the assets in a fund’s account belong to thatfund and not to the investment manager or a sub-manager, and the depositary has set up asub-account in the name of each relevant fund (which is allowed under Chinese law).
However, should creditors of the QFII assert that the assets in the accounts are owned by
the QFII and not the relevant fund, and if a court should uphold this assertion, creditors of theQFII could seek payment from the assets of the relevant fund.
Stock Connect The funds may invest in certain Shanghai-listed securities (“Stock ConnectSecurities”) through The Shanghai-Hong Kong Stock Connect (“Stock Connect”), a joint
securities trading and clearing program designed to permit mutual stock market accessbetween mainland China and Hong Kong. Stock Connect is a joint project of the Hong Kong
Exchanges and Clearing Limited (“HKEC”), China Securities Depository and Clearing
Corporation Limited (“ChinaClear”), and the Shanghai Stock Exchange. Hong Kong
Securities Clearing Company Limited (“HKSCC”), a clearing house that in turn is operated byHKEC, acts as nominee for investors accessing Stock Connect Securities.
Risks of investing through Stock Connect include:nThe regulations governing the Stock Connect are untested. It is uncertain how they will
be applied, and they could be changed.

nSimilar to the situation with securities held under a QFII licence, creditors of the nomineeor sub-custodian could assert that the assets in accounts held for the funds are actuallyassets of the nominee or sub-custodian. If a court should uphold this assertion, creditorsof the nominee or sub-custodian could seek payment from the assets of the relevant
fund. HKSCC, as nominee, does not guarantee the title to Stock Connect securities held
through it and is under no obligation to enforce title or other rights associated withownership on behalf of beneficial owners (such as the funds). Consequently, title to suchsecurities, or the rights associated with them (such as participation in corporate actions
or shareholder meetings), cannot be assured.

nShould the SICAV or any fund suffer losses resulting from the performance or
insolvency of HKSCC, the SICAV would have no direct legal recourse against HKSCC,
because Chinese law does not recognize any direct legal relationship between HKSCC
and either the SICAV or the depositary.

nShould ChinaClear default, HKSCC’s contractual liabilities will be limited to assisting
participants with claims. A fund’s attempts to recover lost assets could involve
considerable delays and expenses, and may not be successful.

nAs at the date of this prospectus, investors will be able to trade up to RMB300 billion of
Stock Connect Securities subject to a daily maximum of RMB13 billion. Buy orders andsell orders offset each other for the purposes of the quota. If either the daily oraggregate quota is exceeded, further buy orders will be rejected, either until the next
trading day (in case of the daily quota) or until the next trading day when sufficient
aggregate quota is available. These quotas are not particular to either the Funds or theInvestment Manager, they apply to all market participants generally. If the Investment
Manager is unable to purchase additional Stock Connect Securities, it may affect theimplementation of the funds’ investment strategy.

nA stock may become ineligible for trading via Stock Connect. This may affect theinvestment portfolio or strategies of the funds.

Country risk – Russia and Ukraine In these countries, risks associated with custody andcounterparties are higher than in developed countries. Russian custodial institutions observe
their own rules, have significantly less responsibilities to investors, may be poorly regulated,or may otherwise be susceptible to fraud, negligence or error. The Russian securities market
may also suffer from impaired efficiency and liquidity, which may worsen price volatility andmarket disruptions.
Direct investment in Russian securities that are not traded through the Russian Trading
System and the Moscow Interbank Currency Exchange is limited to 10% of fund assets.
However, as the Russian Trading System and the Moscow Interbank Currency Exchange arerecognized as Regulated Markets, securities that are listed or traded on those markets are
not subject to that 10% limit. This does not mean these securities are free from the risks
mentioned in the previous paragraph, or from a generally higher degree of risk than, forexample, comparable European or US securities.
Russia and Ukraine also can be subject to strong or sudden political risks, such as sanctions
or military actions.
Country risk – Saudi Arabia Investors from outside the country can gain exposure to Saudi
investments only through Participatory-notes (“P-notes”), which are issued by banks, brokerdealers or other counterparties. P-notes may carry illiquid securities risk and may trade atprices that are below the value of their underlying securities. Owners of P-notes may lacksome of the rights (such as voting rights) they would have if they owned the underlying
securities directly. If the issuer of a P-note becomes unable or unwilling to honor its
obligations to the fund, the fund will lose money, irrespective of the value of the underlying
securities.
Credit risk A bond or money market security could lose value if the issuer’s financial healthdeteriorates.
If the financial health of the issuer of a bond or money market security weakens, the value ofthe bond or money market security may fall. In extreme cases, the issuer may delayscheduled payments to investors, or may become unable to make its payments at all. The
lower the credit quality of the debt, the greater the credit risk.

Currency risk Changes in currency exchange rates could reduce investment gains orincrease investment losses. Exchange rates can change rapidly and unpredictably.
Default risk The issuers of certain bonds could become unable to make payments on theirbonds.
Derivatives risk Certain derivatives could behave unexpectedly or could expose the fund tolosses that are significantly greater than the cost of the derivative.
Derivatives in general are highly volatile and do not carry any voting rights. The pricing andvolatility of many derivatives (especially credit default swaps) may diverge from strictly
reflecting the pricing or volatility of their underlying reference(s). In difficult market conditions,
it may be impossible or unfeasible to place orders that would limit or offset the market
exposure or financial losses created by certain derivatives.
OTC derivatives
Because OTC derivatives are in essence private agreements between a fund and one ormore counterparties, they are less highly regulated than market-traded securities. OTC
derivatives carry greater counterparty risk and liquidity risk, and it may be more difficult toforce a counterparty to honor its obligations to a fund. If a counterparty ceases to offer aderivative that a fund had been planning on using, the fund may not be able to find acomparable derivative elsewhere and may miss an opportunity for gain or find itself
unexpectedly exposed to risks or losses, including losses from a derivative position for which
it was unable to buy an offsetting derivative.
Because it is generally impractical for the SICAV to divide its OTC derivative transactions
among a wide variety of counterparties, a decline in the financial health of any one
counterparty could cause significant losses. Conversely, if any fund experiences any
financial weakness or fails to meet an obligation, counterparties could become unwilling to dobusiness with the SICAV, which could leave the SICAV unable to operate efficiently andcompetitively.
Exchange-traded derivatives
While exchange-traded derivatives are generally considered lower-risk than OTC derivatives,
there is still the risk that a suspension of trading in derivatives or in their underlying assets
could make it impossible for a fund to realize gains or avoid losses, which in turn could cause
a delay in handling redemptions of shares. There is also a risk that settlement of exchangetraded derivatives through a transfer system may not happen when or as expected.
Emerging markets risk Emerging markets are less established than developed markets andtherefore involve higher risks.
Reasons for this higher risk include:npolitical, economic, or social instabilitynunfavorable changes in regulations and laws

nfailure to enforce laws or regulations, or to recognize the rights of investors as
understood in developed markets

nexcessive fees, trading costs or taxation, or outright seizure of assetsnrules or practices that place outside investors at a disadvantage

nincomplete, misleading, or inaccurate information about securities issuersnlack of uniform accounting, auditing and financial reporting standards

nmanipulation of market prices by large investors

narbitrary delays and market closures

nfraud, corruption and error

For purposes of risk, the category of emerging markets includes markets that are lessdeveloped, such as most countries in Asia, Africa, South America and Eastern Europe, as
well as countries that have successful economies but whose investor protections arequestionable, such as Russia, Ukraine and China.
Examples of developed markets are those of Western Europe, the US, and Japan.
Equity risk In general, equities involve higher risks than bonds or money market
instruments. Equities can lose value rapidly, and can remain at low prices indefinitely.
Equities of rapidly growing companies can be highly sensitive to bad news, because much of
their value is based on high expectations for the future. Equities of companies that appear tobe priced below their true value may continue to be undervalued. If a company goes throughbankruptcy or a similar financial restructuring, its equities may lose most or all of their value.
Frontier markets risk The securities markets of small nations that are at an earlier stage of
economic and political development relative to more mature emerging markets typically have
limited investability and liquidity.
Geographic concentration risk To the extent that a fund invests a large portion of its
assets in a particular geographic area, its performance will be more strongly affected by any
social, political, economic, environmental or market conditions within that area. This canmean higher volatility and risk of loss as compared to a fund that invests more broadly.
Hedging risk A fund’s attempts to reduce or eliminate certain risks may not work asintended.
To the extent that a fund takes measures that are designed to offset specific risks (such as
seeking to eliminate currency risks in a share class that is denominated in a different
currency than the fund’s portfolio), these measures may work imperfectly, may not be
feasible at times, or may fail completely. Hedging involves costs, which reduce investment
performance. To the extent that a hedge is successful, it generally eliminates opportunities
for gain as well as risks of loss.
Interest rate risk When interest rates rise, bond values generally fall. This risk is generally
greater the longer the maturity of a bond investment and the higher its credit quality.
Investment fund risk As with any investment fund, investing in any of these funds involves
certain risks an investor would not face if investing in markets directly:
nthe actions of other investors, in particular sudden large outflows of cash, could interferewith orderly management of a fund and cause the fund’s NAV to fallnthe investor cannot direct or influence how money is invested while it is in a fundna fund’s buying and selling of investments may not be optimal for the tax efficiency ofany given investornthe funds are subject to various investment laws and regulations that limit the use ofcertain securities and investment techniques that might improve performance; to theextent that the funds decide to register in jurisdictions that impose narrower limits, thisdecision could further limit the fund’s investment activitiesnbecause the funds are based in Luxembourg, any protections that would have been
provided by other regulators (including, for investors outside Luxembourg, those of theirhome regulator) may not applynbecause fund shares are not publicly traded, the only option for liquidation of shares isgenerally redemption, which could be subject to delays and any other redemption
policies set by the fundIssuer concentration risk To the extent that a fund invests a large portion of its assets insecurities from a relatively small number of issuers, its performance will be more strongly
affected by any business, industry, economic, financial or market conditions affecting thoseissuers. This can mean higher volatility and risk of loss as compared to a fund that invests
more broadly.
Liquidity risk Any security could become hard to value or to sell at a desired time and price.
Additionally, certain securities may, by nature, be hard to value, or hard to sell at areasonable price or in large volumes. This includes securities that are labelled as illiquid,
such as Rule 144A securities, as well as stocks, bonds, and any other type of security that
represents a small issue, trades infrequently, or is traded on markets that are comparatively
small or that have long settlement times.
Management risk The investment manager or its designees may at times find their
obligations to a fund to be in conflict with their obligations to other investment portfolios they
manage (although in such cases, all portfolios will be dealt with equitably).
Market risk Prices of many securities change daily, and can fall based on a wide variety offactors.
Examples of these factors include:npolitical and economic newsngovernment policy

nchanges in technology and business practicesnchanges in demographics, cultures and populationsnnatural or human-caused disastersnweather and climate patternsnscientific or investigative discoveries

ncosts and availability of energy, commodities and natural resources

The effects of market risk can be immediate or gradual, short-term or long-term, narrow or
broad.
Operational risk A fund may be subject to errors affecting valuation, pricing, accounting, tax
reporting, financial reporting, and trading, among other things. In addition, in any market, but
especially in emerging markets, there could be losses due to fraud, corruption, political ormilitary actions, the seizure of assets, or other irregular events.
Prepayment and extension risk With mortgage- and asset-backed securities, or any othersecurities whose market prices typically reflect the assumption that the securities will be paid
off before maturity, any unexpected behaviour in interest rates could hurt fund performance.
Asset-backed securities are bonds that represent an ownership interest in an underlying poolof mortgage-related and/or consumer receivables. Amortizing assets (such as home equity
loans, auto loans, and equipment leases) typically pass principal and interest payments

directly to investors, while revolving assets (such as credit card receivables and home equity
lines of credit) typically reinvest principal and interest payments in new collateral for a
specified period of time. Mortgage-backed securities are securities representing an interest ina pool of mortgages and may include collateralized mortgage obligations, which are debt
securities that are fully collateralized by a portfolio of mortgages or mortgage-backed
securities, commercial mortgage-backed securities and stripped mortgage securities.
Receiving increasing prepayments when interest rates are falling causes the average
maturity of the portfolio to shorten, reducing its potential for price gains. It also requires afund to reinvest proceeds at lower interest rates, reducing the portfolio’s total return andyield, and could result in a loss.
Mortgage-backed securities are also subject to extension risk. When interest rates are rising,a lack of refinancing opportunities will cause a fund’s average maturity to lengthen due to adrop in expected prepayments of mortgage-backed securities and asset-backed securities.
This would increase a fund’s sensitivity to rising rates and its potential for price declines.
Real estate investments risk Real estate and related investments can be hurt by any factor
that makes an area or individual property less valuable.
Specifically, investments in real estate holdings or related businesses or securities (includinginterests in mortgages) can be hurt by natural disasters, economic declines, overbuilding,zoning changes, tax increases, population or lifestyle trends, environmental contamination,
defaults on mortgages, failures of management, and other factors that may affect the market
value or cash flow of the investment.
Sector concentration risk To the extent that a fund invests a large portion of its assets in aparticular economic sector (or, for bond funds, a particular market segment), its performance
will be more strongly affected by any business, industry, economic, financial or market
conditions affecting that sector or segment of the fixed income market. This can mean higher
volatility and risk of loss as compared to a fund that invests more broadly.
Small and mid-cap stock risk Stocks of small and mid-size companies can be more volatile
than stocks of larger companies. Small and mid-size companies often have fewer financial
resources, shorter operating histories, and less diverse business lines, and as a result canbe at greater risk of long-term or permanent business setbacks. Initial public offerings (IPOs)
can be highly volatile and can be hard to evaluate because of a lack of trading history andrelative lack of public information.
Style risk Different investment styles typically go in and out of favor depending on market
conditions and investor sentiment. At any given time, for instance, a growth-style portfolio
may underperform a value-style portfolio, or vice-versa, and either may at any time
underperform the market as a whole.