dedoc/paragraph_dataset huggingface dataset:
Country risk / Geographical risk
Investments in a limited geographical market may be subject to a higher than average risk due to a higher
degree of concentration, less market liquidity, or greater sensitivity to changes in market conditions.
Investments in developing markets are often more volatile than investments in mature markets. Some of these
economies and financial markets may from time to time be extremely volatile. Many of the countries in such
regions may be developing, both politically and economically.
Credit risk
The creditworthiness (solvency and willingness to pay) of an issuer of a security held by the Fund may change
substantially over time. Debt instruments involve a credit risk with regard to the issuers, for which the issuers’
credit rating can be used as a benchmark. Bonds or debt instruments floated by issuers with a lower rating are
generally viewed as securities with a higher credit risk and greater risk of default on the part of the issuers than
those instruments that are floated by issuers with a better rating. If an issuer of bonds or debt instruments gets
into financial or economic difficulties, this can affect the value of the bonds or debt instruments (this value
could drop to zero) and the payments made on the basis of these bonds or debt instruments (these payments
could drop to zero).
Currency risk
If the Fund holds assets denominated in foreign currencies, it is subject to currency risk. Any depreciation of
the foreign currency against the Base Currency of the Sub-Fund would cause the value of the assets
denominated in the foreign currency to fall.
Some Sub-Funds may have the ambition to fully hedge the currency risk so that the Share Classes receive a
similar performance in local currency terms. Deviations in performance between different currency hedged
Share Classes may occur.
“Derivatives” is a generic name for instruments getting their return from underlying assets. The instruments are
agreements on the purchase or sale of the underlying assets on a future date at a pre-set price. The return of
the agreement depends on the return of the underlying asset. Common derivatives are futures, options and
swaps.
Specific risks associated with derivatives
a) Derivatives are time limited and will expire.
b) The low margin amount required to establish a derivative position permits a high degree of leverage. As a
result, a relatively small movement in the price of a futures contract or a swap may result in a profit or a loss
which is high in proportion to the amount of assets actually placed as margin (collateral) and may result in
losses exceeding any margin deposited.
Efficient portfolio management techniques
Specific risks associated with securities lending and repurchase transactions:
a) In relation to securities lending transactions, if the other party to the transaction cannot complete the
transaction, the Sub-Fund may be left holding the collateral delivered by the other party to secure the
transaction. There is a risk that the collateral received may be realized at a value lower than the value of
the securities lent out, whether due to inaccurate pricing, adverse market movements, a deterioration in
the credit rating of issuer of the collateral, or the illiquidity of the market in which the collateral is traded.
Delays in the return of securities lent may restrict the ability of a Sub-Fund to meet delivery obligations
under security sales or payment obligations arising from redemption requests.
b) In relation to repurchase transactions, in the event of the failure of the counterparty with which cash of a
Sub-Fund has been placed there is the risk that collateral received may yield less than the cash placed out,
whether because of inaccurate pricing of the collateral, adverse market movements, a deterioration in the
credit rating of issuers of the collateral, or the illiquidity of the market in which the collateral is traded.
Locking cash in transactions of excessive size or duration delays in recovering cash placed out. Difficulty in
realizing collateral may restrict the ability of the Sub-Fund to meet redemption requests or security
purchases.
To the extent that the Fund or the Sub-Funds invest in debt instruments, they are exposed to risk of interest
rate changes. These risks may be incurred in the event of interest-rate fluctuations in the denomination
currency of the securities of the Fund or the Sub-Funds.
If the market interest rate increases, the price of the interest bearing securities included in the Sub-Funds may
drop. This applies to a greater degree, if the Sub-Funds should also hold interest bearing securities with a
longer time to maturity and a lower nominal interest return.
Investments in UCIs and UCITS
The investors shall be aware of the fact that the fees charged by the target UCI or UCITS will have to be borne
on a pro rata basis by the investing Sub-Fund and that in consequence the NAV of the investing Sub-Fund will
be affected. This might lead in respect of the Fund to a duplication of fees.
Liquidity risk
Liquidity risks arise when a particular security is difficult to dispose of. In principle, the Fund may only acquire
securities that can be unwound promptly. Nevertheless, it may be difficult to sell particular securities at certain
points in time during certain phases or in certain markets.
Market risk
This risk is of general nature and exists in all forms of investment. The principal factor affecting the price
performance of securities is the performance of capital markets and the economic performance of individual
issuers, which in turn are influenced by the general situation of the world economy, as well as the basic
economic and political conditions in the particular countries or sectors.
Risk of default
In addition to the general trends on capital markets the particular performance of each individual issuer also
affects the price of an investment. The risk of a decline in the assets of issuers, for example, cannot be entirely
eliminated even by the most careful selection of securities.
Emerging Market Risk
In emerging and less developed markets, in which one or more of the Sub-Funds will invest, the legal, judicial
and regulatory infrastructure is still developing but there is much legal uncertainty both for local market
participants and their overseas counterparts. Some markets may carry higher risks for investors who should
therefore ensure that, before investing, they understand the risks involved and are satisfied that an investment
is suitable as part of their portfolio.
Countries with emerging and less developed markets include, but are not limited to (1) countries that have an
emerging stock market in a developing economy as defined by the International Finance Corporation, (2)
countries that have low or middle income economies according to the World Bank, and (3) countries listed in
World Bank publication as developing. The list of emerging and less developed markets countries is subject to
continuous change.
The following statements are intended to summarise some of the risks present in investing in emerging and
less developed markets instruments, but are not exhaustive, nor do they offer advice on the suitability of
investments.
A) Political and economic risks
— Economic and/or political instability could lead to legal, fiscal and regulatory changes or the reversal of legal
/ fiscal / regulatory / market reforms. Assets could be compulsorily re-acquired without adequate
compensation.
— A country’s external debt position could lead to sudden imposition of taxes or exchange controls.
— High interest and inflation rates can mean that businesses have difficulty in obtaining working capital.
— Local management may be inexperienced in operating companies in free market conditions.
— A country may be heavily dependent on its commodity and natural resource exports and is therefore
vulnerable to weaknesses in world prices for these products.
B) Legal environment
— The interpretation and application of decrees and legislative acts can be often contradictory and uncertain
particularly in respect of matters relating to taxation.
— Legislation could be imposed retrospectively or may be issued in the form of internal regulations not
generally available to the public.
— Judicial independence and political neutrality cannot be guaranteed.
— State bodies and judges may not adhere to the requirements of the law and the relevant contract. There is
no certainty that investors will be compensated in full or at all for any damage incurred.
— Recourse through the legal system may be lengthy and protracted.
C) Accounting Practices
— The accounting, auditing and financial reporting system may not accord with international standards.
— Even when reports have been brought into line with international standards, they may not always contain
correct information.
— Obligations on companies to publish financial information may also be limited.
D) Shareholder Risk
— Existing legislation may not yet be adequately developed to protect the rights of minority shareholders.
— There is generally no concept of any fiduciary duty to shareholders on the part of
— Liability for violation of what shareholder rights there are, may be limited.
E) Market and Settlement Risks
— The securities markets in some countries lack the liquidity, efficiency and regulatory and supervisory
controls of more developed markets.
— Lack of liquidity may adversely affect the ease of disposal of assets. The absence of reliable pricing
information in a particular security held by the Fund may make it difficult to assess reliably the market value of
— The share register may not be properly maintained and the ownership or interest may not be (or remain)
fully protected.
— Registration of securities may be subject to delay and during the period of delay it may be difficult to prove
beneficial ownership of the securities.
— The provision for custody of assets may be less developed than in other more mature markets and thus
provides an additional level of risk for the Sub-Funds.
— Settlement procedures may be less developed and still be in physical as well as in dematerialised form.
— Limitations may exist with respect to the Fund’s ability to repatriate investment income, capital or the
proceeds from the sale of securities by foreign investors. The Fund can be adversely affected by delays in, or
refusal to grant, any required governmental approval for such repatriation.
F) Price Movement and Performance
— Factors affecting the value of securities in some markets cannot easily be determined.
— Investment in securities in some markets carries a high degree of risk and the value of such investments may
decline or be reduced to zero.
G) Currency Risk
Beside the aforementioned currency risks the following risks may occur with regard to investment in emerging
markets:
— Conversion into foreign currency or transfer from some markets of proceeds received from the sale of
securities cannot be guaranteed.
H) Taxation
Investors should note in particular that the proceeds from the sale of securities in some markets or the receipt
of any dividends and other income may be or may become subject to tax, levies, duties or other fees or
charges imposed by the authorities in that market, including taxation levied by withholding at source. Tax law
and practice in certain countries into which the Fund invests or may invest in the future (in particular Russia
and other emerging markets) is not clearly established. It is therefore possible that the current interpretation of
the law or understanding of practice might change, or that the law might be changed with retrospective effect.
As a result, the Fund could become subject to additional taxation in such countries that is not anticipated
either at the date of this Prospectus or when investments are made, valued or disposed of.
I) Execution and Counterparty Risk
In some markets there may be no secure method of delivery against payment which would minimise the
exposure to counterparty risk. It may be necessary to make payment on a purchase or delivery on a sale before
receipt of the securities or, as the case may be, sale proceeds.
J) Nomineeship
The legislative framework in some markets is only beginning to develop the concept of legal/formal ownership
and of beneficial ownership or interest in securities. Consequently the courts in such markets may consider
that any nominee or custodian as registered holder of securities would have full ownership thereof and that a
beneficial owner may have no rights whatsoever in respect thereof.
Operational risk
Operational risk is the risk of loss resulting from e.g. system breakdowns, human errors or from external events.
Small Cap Risk
The Fund may invest primarily in small-cap companies. Investing in the securities of smaller, less-known
companies involves greater risk and the possibility of greater price volatility due to the less certain growth
prospects of smaller firms, the lower degree of liquidity of the markets for such stocks and the greater
sensitivity of smaller companies to changing market conditions.
4.3. Risk management process
The Fund employs a risk management process, which enables it to monitor and measure at any time the risk of
the positions and their contribution to the overall risk profile of the portfolio.
Specific Information on
 global exposure determination methodology
 the expected level of leverage, as well as the possibility of higher leverage levels and
 the reference portfolio, in case applicable
are laid down under each Sub-Fund in part II “The Sub-Funds”.
5. Share Capital
5.1 General
The capital of the Fund shall, at all times, be equal to the net asset value of all the Sub-Funds. The Fund shall
establish segregated opposable accounts, each constituting a Sub-Fund within the meaning of article 181 of
the Law, the assets of which are invested in accordance with the particular investment features applicable to
the Sub-Fund and which is represented by specific class or classes of shares.
Pursuant to article 181 (5) of the Law, the rights of investors and creditors regarding a Sub-Fund or raised by
the incorporation, daily operation and liquidation of a Sub-Fund are limited to the assets of this Sub-Fund.
In the relation between investors, each Sub-Fund will be deemed to be a separate entity.
The capital of the Fund is represented by shares issued with no face value and fully paid-up. Variations in the
capital shall be effected ipso jure and there are no provisions requesting publication and entry of such in the
Trade Register.
The Fund may provide for the issuance of fractional shares. Fractional shares may be issued up to three
decimal places.
The Fund’s capital is expressed in Swedish Krona (“SEK”).
The minimum capital of the Fund is the countervalue in SEK of EUR 1,250,000 (one million two hundred and
fifty thousand euro).
5.2. Share Classes
The Sub-Funds may offer several Share Classes, which differ in their charges, dividend policy, persons
authorised to invest, minimum investment amount, minimum holding, eligibility requirements, reference
currency or other characteristics. Some types of Classes are described more in detail here below.
5.2.1. Dividend policy
Unless otherwise laid down in part II ‘The Sub-Funds”, the Fund may decide to issue, for each Sub-Fund,
capitalisation Shares (“C” Shares) and distribution Shares (“D” Shares).
The “C” Shares will reinvest their income, if any. The “D” shares may pay a dividend to its Shareholders, upon
decision of the Fund. Dividends are paid annually, except for those Sub-Funds where the Fund would decide
on a monthly, quarterly or semi-annual dividend payment.
5.2.2. Hedging policy
The Fund may issue Share Classes whose Reference Currency is not the Base Currency of the respective Sub-
Fund, but where the currency exposure of the Reference Currency against the Base Currency will be hedged. In
case of a currency hedge in favour of the Reference Currency of a respective Share Class, an “H-“ will precede
the currency denomination of this Share Class. For example “(H-SEK)” means that the Reference Currency of
the Share Class (SEK) is hedged against fluctuation of the Base Currency of the Sub-Fund. Hedging costs will
be borne by the respective Share Class.
Classes with specific currency hedges serve the purpose of achieving similar performance numbers in local
currency terms between the different Classes.
Hedging transactions may be entered into whether the reference currency is declining or increasing in value
relative to the relevant Sub-Fund’s Base Currency. Where such hedging is undertaken it may substantially
protect investors in the relevant Share Class against a decrease in the value of the Sub-Fund’s Base Currency
relative to the reference currency of the Share Class, but it may also preclude investors from benefiting from an
increase in the value of the Sub-Fund’s currency.
5.2.3. Target investors
The Fund may issue Shares taking into account the target investors. The Share Classes in the Sub-Funds may
therefore be:
 Shares which may be acquired by all kinds of investors; or
 Shares which may only be acquired by institutional investors as defined by Article 174 paragraph. (2) c) of
the Law; (“I” Share Class).
5.2.4. Registered / bearer Shares
Shares may be issued as registered or as bearer Shares. Registered Shares will be recorded in a nominal
account, whereas bearer Shares will be vested in as a global certificate with no claim of issue of individual
physical certificates.
5.3 Issue of Shares
Shares are issued on each Valuation Day at their net asset value plus an entry charge as indicated in part II
“The Sub-Funds”. This issue price includes all commissions payable to banks and financial institutions taking
part in the placement of shares, but not the charges taken by intervening correspondent banks for the
execution of electronic transfers. Where shares are issued in countries where stamp duties or other charges
apply, the issue price increases accordingly.
The Board of Directors is authorized to issue new shares continuously. Nevertheless, the Board of Directors
reserves the right to reject, at its discretion, in the Fund’s and the Shareholders’ interest, any subscription
application. Any payments already made shall in such instances be immediately refunded without interest and
at the risks and costs of the applicant. The Custodian Bank shall immediately pay back incoming payments for
applications for subscriptions which are not carried out.
At its discretion, the Fund may, upon application from a Shareholder, issue shares in return for contribution in
kind of securities, provided that such securities comply with the investment objectives and investment policy of
the Fund. The Auditor of the Fund shall generate a valuation report, which shall be available for inspection to
all investors at the registered office of the Fund. The costs of such contribution in kind shall be borne by the
investor in question.
Unless otherwise provided for in the respective Sub-Fund’s Particulars, payment for subscriptions must be
made by electronic transfer and must reach the Registrar and Transfer Agent within 5 Bank Business Days
following the applicable Valuation Day. The payment must be made in the Reference Currency of the