Verkaufsprospekt

portfolio make up may be reflected in the actual portfolio
make up, the currency exposure can reflect that of
the Index.
The Investment Manager is, however, entitled at any
time to change the Index where, for reasons outside the
Investment Manager's control, the Index has been
replaced by another index or where another index may
reasonably be considered by the Investment Manager
to have become the industry standard for the relevant
exposure. Unitholders will be advised of any change in
the Index in the next annual or half-yearly report of the
Sub-Fund.
Any changes to the investment objective of the Sub-
Fund and any material changes to the investment policy
may not be made without the prior written approval on
the basis of a majority of votes cast at a general meeting
of Unitholders of the Sub-Fund. Any such changes
may not be made without the approval of the Central
Bank. In the event of a change in investment objective
and/or a change to the investment policy, a reasonable
notification period will be provided by the Manager to
enable Unitholders to redeem their Units prior to implementation
of such change.
The Sub-Fund will be managed so as to be fully invested,
other than during periods where the Investment
Manager believes that a larger cash position is warranted.
No assurance can be given that the Sub-Fund's investment
objective will be achieved.
A list of the stock exchanges and markets in which the
Sub-Fund is permitted to invest, in accordance with the
requirements of the Central Bank, is contained in Appendix
I to the Prospectus and should be read in conjunction
with, and subject to, the Sub-Fund's investment
objective and investment policy, as detailed above. The
Central Bank does not issue a list of approved markets.
With the exception of permitted investments in unlisted
securities, investment will be restricted to those stock
exchanges and markets listed in Appendix I to the Prospectus.
The risk factors specific to the Sub-Fund are set out in
section 6 below and include Emerging Markets Risk,
Political & Economic Risk - Russia, Below Investment
Grade Debt Securities, Credit Risk, Financial Derivative
Instruments, Credit Default Swaps, Fixed Income Securities,
Money Market Instrument Risk and Volatility Risk.
These risk factors may not be a complete list of all risk
factors associated with an investment in the Sub-Fund.
The investment restrictions applying to the Sub-Fund, in
accordance with the Regulations and the Central Bank
Notices, are set out in the main body of the Prospectus.
For the avoidance of doubt, at all times the Sub-Fund
shall be managed so as to ensure that the contract
value of total investments in derivatives by the Sub-
Fund will be in accordance with the Regulations and the
Central Bank Notices.
4. Unit Class Currency Hedging
In relation to Class A1H, Class A5H, Class A6H, Class
Y1H, Class Y5H and Class Y6H Units only, it is the
intention of the Manager or its delegate to hedge the
currency exposure between the respective denomi-
PineBridge Merger Arbitrage Fund
nated currencies of Class A1H, Class A5H, Class A6H,
Class Y1H, Class Y5H and Class Y6H Units, and US
Dollars (the Base Currency of the Sub-Fund). The
Manager or its delegate will seek to achieve this hedging
by using FDI, including but not limited to currency
options and forward currency exchange contracts as
set out, and within the conditions and limits imposed, by
the Central Bank. The conditions in relation to the use
of such hedging strategies are described in the section
of the Prospectus entitled "Operation of the Fund –
Description of Units". Investors’ attention is also drawn
to the risks relating to the adoption of unit class currency
hedging strategies, which are described in the
section of the Prospectus entitled "Risk Factors – Unit
Currency Designation Risk".
5. Additional Risk Factors
The general risk factors set out in the "Risk Factors"
section of the Prospectus apply to the Sub-Fund. In
addition, the following risk factors apply to the Sub-
Fund. These risk factors may not be a complete list of
all risk factors associated with an investment in the
Sub-Fund:-
Emerging Markets Risk: Investment in the securities
of companies in 'emerging' or 'developing' countries, or
investment in certain securities markets in 'emerging' or
'developing' markets may involve a high degree of risk
and may be considered speculative. Risks include (i)
greater risk of expropriation, confiscatory taxation, nationalization,
and social, political and economic instability;
(ii) the small current size of the markets for securities
of 'emerging' or 'developing' market issuers and the
currently low or non-existent volume of trading, resulting
in lack of liquidity and in price volatility; (iii) certain
national policies which may restrict the Sub-Fund's
investment opportunities including restrictions on investing
in issuers or industries deemed sensitive to
relevant national interests; (iv) the absence of developed
legal structures governing private or foreign investment
and private property; (v) the legal infrastructure
and accounting, auditing and reporting standards in
'emerging' or 'developing' markets may not provide the
same degree of shareholder protection or information to
investors as would generally apply internationally; (vi)
potentially a greater risk regarding the ownership and
custody of securities i.e. in certain countries, ownership
is evidenced by entries in the books of a company or its
registrar. In such instances, no certificates representing
ownership of companies will be held by the Trustee or
any of its local correspondents or in an effective central
depository system; and (vii) 'emerging' or 'developing'
markets may experience significant adverse economic
developments, including substantial depreciation in
currency exchange rates or unstable currency fluctuations,
increased interest rates, or reduced economic
growth rates than investments in securities of issuers
based in developed countries.
The economies of 'emerging' or 'developing’ markets in
which the Sub-Fund may invest may differ favourably or
unfavourably from the economies of industrialised
countries. The economies of 'emerging' or 'developing'
countries are generally heavily dependent on international
trade and have been and may continue to be
adversely affected by trade barriers, exchange controls,
managed adjustments in relative currency values and
other protectionist measures imposed or negotiated by
the countries with which they trade. Investments in
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