Verkaufsprospekt

ment methods employed, including the quantitative
limits that are applied and any recent developments in
the risk and yield characteristics of the main categories
of investments.
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 Political & Economic Risk:
Russia, Emerging Markets Risk, FDI, Fixed Income
Securities, Credit Default Swaps and Volatility Risk.
These risk factors may not be a complete list of all risk
factors associated with an investment in the Sub-Fund.
4. Investment Restrictions
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.
In addition, during such period as the Sub-Fund is registered
in Taiwan the following investment restriction
shall also apply:
The Sub-Fund shall not carry out uncovered
sales of derivatives;
The total value of the Sub-Fund’s open long
positions in derivatives may not exceed 40%
of the net asset value of the Sub-Fund; the total
value of the Sub-Fund’s open short positions
in derivatives may not exceed the total
market value in corresponding securities required
to be held by the Sub-Fund;
If the Sub-Fund intends to hold a higher percentage
of its Net Asset Value in derivatives,
approval must be obtained in advance from
the Financial Supervisory Commission.
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.
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:
Political and Economic Risk, Russia: Investments in
companies organised in or who principally do business
in the independent states that were once part of the
Soviet Union, including the Russian Federation pose
special risks, including economic and political unrest
and may lack a transparent and reliable legal system for
enforcing the rights of creditors and Unitholders of the
Sub-Fund. The standard of corporate governance and
PineBridge Emerging Europe Equity Fund
investor protection in Russia may not be equivalent to
those provided in more regulated jurisdictions. While
the Russian Federation has returned to positive growth,
is generating fiscal and current account surpluses, and
is current on its obligations to bondholders, uncertainty
remains with regard to structural reforms (e.g. banking
sector, land reform and property rights), the economy's
heavy reliance on oil, unfavourable political developments
and / or government policies, and other economic
issues. Whilst the Sub-Fund may invest to a
limited extent in Russian equities traded on the MICEX
and RTS Stock Exchange, the exposure to Russian
traded equities is not expected to be greater than 20%
of the Net Asset Value of the Sub-Fund.
Evidence of legal title to shares in a Russian company
is maintained in book entry form. In order to register an
interest of the company’s shares an individual must
travel to the company’s registrar and open an account
with the registrar. The individual will be provided with an
extract of the share register detailing his interests but
the only document recognised as conclusive evidence
of title is the register itself. Registrars are not subject to
effective government supervision. There is a possibility
that the Sub-Fund could lose its registration through
fraud, negligence, oversight or catastrophe such as a
fire. Registrars are not required to maintain insurance
against these occurrences and are unlikely to have
sufficient assets to compensate the Sub-Fund in the
event of loss.
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'
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