Investment involves risks. The Sub-Fund’s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Sub-Fund may suffer losses. Please refer to the Prospectus for details including the risk factors.
1. Investment Risk / General Market Risk
The Sub-Fund is an investment fund. There is no guarantee of the repayment of principal. The instruments invested by the Sub-Fund may fall in value. The Sub-Fund invests directly or indirectly in securities, and is exposed to various general trends and tendencies in the economic and political situations as well as securities markets and investment sentiment, which are partially attributable to irrational factors. Such factors could lead to substantial and longer-lasting drops in prices affecting the entire market. Securities from top-rated issuers are subject to essentially the same general market risk as other securities and assets. All these factors may adversely impact the net asset value of the Sub-Fund.
2. Country Risk
The Sub-Fund’s investments focus on the United States, which may increase the concentration risk. Consequently, the SubFund is particularly susceptible to adverse development and risks of the United States, or of companies based and / or operating in the United States. The net asset value of the Sub-Fund may be more volatile than a diversified fund. Economic or political instability in countries in which the Sub-Fund is invested may lead to a situation in which the Sub-Fund does not receive part or all of the monies owed to it in spite of the solvency of the issuer of the respective security or other assets. Currency or transfer restrictions or other legal changes, for example, may be significant in this regard.
3. Emerging Market Risk
The Sub-Fund invests in emerging markets which involve increased risks and special considerations not typically associated with investment in more developed economies or markets, such as greater political, tax, legal, economic, foreign exchange/control, liquidity, regulatory risks, settlement risks, custody risk and the likelihood of a high degree of volatility. The accounting, auditing and financial reporting standards may deviate substantially to the Sub-Fund’s detriment. All these factors may adversely impact the net asset value of the Sub-Fund.
4. Company-specific Risk
The assets of the Sub-Fund may invest in equities which may be affected by company-specific factors, such as the issuer’s business situation. If a company-specific factor deteriorates, the price of the respective asset may drop significantly and for an extended period of time, possibly even without regard to an otherwise generally positive market trend. All these factors may adversely impact the net asset value of the Sub-Fund.
5. Derivatives Risk
The Sub-Fund may invest in derivatives, which may expose the fund to higher counterparty, liquidity and market risks, all of which may adversely impact the net asset value of the Sub-Fund. The Sub-Fund’s use of FDI in hedging and / or efficient portfolio management may become ineffective and / or cause the Sub-Fund to suffer significant losses.
6. Risk related to Distribution out of Capital and Distribution effectively out of Capital
The payment of distributions out of capital / distributions effectively out of capital represents a return or withdrawal of part of the amount investors originally invested and / or capital gains attributable to the original investment. Any distributions involving payment of distributions out of the Sub-Fund’s capital / distributions effectively out of the Sub-Fund’s capital may result in an immediate decrease in the Net Asset Value per Share and may reduce the capital available for the Sub-Fund for future investment and capital growth.