FORTIS L FUND - BNP Paribas Investment Partners

BNP PARIBAS FLEXI IV 

Fonds commun de placement or “FCP” 

Specialised Investment Fund or ”SIF” 

under Luxembourg law 

______ 

Offering Document 

JUNE 2011

INFORMATION REQUESTS 

BNP PARIBAS INVESTMENT PARTNERS LUXEMBOURG 

33, rue de Gasperich 

L - 5826 Howald-Hesperange 

NOTICE 

This Offering Document does not constitute an offer or solicitation to subscribe for units (“Units”) in BNP Paribas Flexi IV (the “Fund”) by anyone in 

any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so or to 

anyone to whom it is unlawful to make such offer or solicitation. 

The Units of the Fund have not been registered in accordance with any legal or regulatory provisions in the United States of America or Canada. 

Consequently, this document may not be introduced, transmitted or distributed in these countries, or their territories or possessions, or sent to their 

residents, nationals, or any other companies, associations or entities incorporated in or governed by the laws of these countries. Furthermore, the 

Fund’s Units may not be offered or sold to such persons. The Management Company will take immediate steps to redeem any Units acquired or 

held by such persons. 

Fund Units may be acquired on the basis of this Offering Document and the latest annual report. 

Information which is not contained in this Offering Document, or in the documents mentioned herein which are available for inspection by the public, 

shall be deemed unauthorised and cannot be relied upon. 

Potential Investors should read this Offering Document with care and inform themselves as to the possible tax consequences, the legal 

requirements and any foreign exchange restrictions or exchange control requirements which they might encounter under the laws of the countries of 

their citizenship, residence or domicile and which might be relevant to the subscription, holding, conversion, redemption or disposal of Units. 

Potential investors who are in doubt about the contents of this Offering Document should consult their bank, broker, solicitor, accountant or other 

independent financial adviser. 

This Offering Document may be translated into other languages. To the extent that there is any inconsistency between the English language 

Offering Document and a version in another language, the English language Offering Document shall prevail, unless stipulated otherwise by the 

laws of any jurisdiction in which the Units are sold. 

The distribution of this Offering Document and the offering of Units of its compartments is restricted to persons qualifying as well informed investors 

(“Well-Informed Investors” or “Investors”) as defined in article 2 of the Luxembourg law of 13 February 2007 on specialised investment funds as 

such law may be amended from time to time ( the “Law of 2007”). 

Within the meaning of the Law of 2007, Well-Informed Investors shall be an institutional investor, a professional investor or any other investor who 

meets the following conditions: 

a) he has confirmed in writing that he adheres to the status of well informed investor, and 

b) (i) he invests a minimum of 125,000 EURO in the specialized investment fund, or 

(ii) he has been the subject of an assessment made by a credit institution within the meaning of the Directive 2006/48/EC, by an 

investment firm within the meaning of Directive 2004/39/EC or by a management company within the meaning of Directive 2001/107/EC 

certifying his expertise, his experience and his knowledge in adequately apprising an investment in the specialized investment fund. 

BNP Paribas Flexi IV - Offering Document - Part I - version of JUNE 2011 2/38

CONTENTS 

GENERAL INFORMATION 4 

PART I OF THE OFFERING DOCUMENT 

GENERAL PROVISIONS 6 

MANAGEMENT AND ADMINISTRATION 7 

INVESTMENT POLICY, OBJECTIVES, RESTRICTIONS AND TECHNIQUES 8 

THE UNITS 9 

TAX PROVISIONS 12 

INFORMATION FOR UNITHOLDERS 13 

APPENDIX 1 - INVESTMENT RESTRICTIONS 14 

APPENDIX 2 - TECHINQUES AND FINANCIAL INSTRUMENTS 15 

APPENDIX 3 - INVESTMENT RISKS 17 

APPENDIX 4 – CO-MANAGEMENT 18 

APPENDIX 5 – CONVERSION FORMULA 19 

APPENDIX 6 - SUSPENSION OF THE CALCULATION OF THE NET ASSET VALUE AND 

THE ISSUE, CONVERSION AND REDEMPTION OF UNITS 20 

APPENDIX 7 - COMPOSITION OF ASSETS AND VALUATION RULES 21 

APPENDIX 8 - LIQUIDATION AND MERGING OF THE FUND AND ITS COMPARTMENTS 23 

PART II OF THE OFFERING DOCUMENT 

BNP PARIBAS FLEXI IV Bond Medium term RMB 25 

BNP PARIBAS FLEXI IV Emerging High yield Currencies Fund 27 

BNP PARIBAS FLEXI IV Bond Medium Term INR 29 

BNP PARIBAS FLEXI IV Bond China 

BNP PARIBAS FLEXI IV Planetary China – HFT 

31 

An individual fact sheet is available for each of these compartments. The fact sheet summarises each compartment’s investment policy and 

objective, the features of the units, their currency of expression, valuation day, methods of subscription, redemption and/or conversion, 

commissions, and, if applicable, the history and other specific characteristics of the compartment concerned. Investors are reminded that, unless 

otherwise stated in the summary fact sheets below, the general regulations stipulated in Part I of the Offering Document will apply to each 

compartment. 


GENERAL INFORMATION 

MANAGEMENT COMPANY 



L- 5826 HOWALD-HESPERANGE 

THE BOARD OF DIRECTORS OF THE MANAGEMENT COMPANY 

Chairman 

Mr. Marc RAYNAUD, Head of Global Funds Solutions, BNP Paribas Investment Partners, Paris 

Members 

Mr Marnix ARICKX, Head of Fund Engineering, BNP Paribas Investment Partners, Brussels 

Mr Stéphane BRUNET, Managing Director, BNP Paribas Investment Partners Luxembourg, 

Mr Pieter CROOCKEWIT, Head of Europe, BNP Paribas Investment Partners BE Holding, Brussels 

Mr Anthony FINAN, Head of Marketing and Communication, BNP Paribas Investment Partners, Paris, 

Mr Eric MARTIN, Chairman of the Management Board of BGL BNP Paribas Luxembourg 

Mr Christian VOLLE, Director, BNP Paribas Investment Partners, Luxembourg 

CUSTODIAN BANK 

BNP Paribas Securities Services, Luxembourg branch 


L – 5826 Howald-Hesperange 

CENTRAL ADMINISTRATION, GLOBAL DISTRIBUTOR, REGISTRAR AND TRANSFER AGENT 



L-5826 HOWALD-HESPERANGE 

The duty of the calculation of net asset values, transfer agent and registrar will be delegated to: 

BNP Paribas Securities Services, Luxembourg branch 


L-5826 Howald-Hesperange 

INVESTMENT MANAGERS 

 

BNP Paribas Investment Partners Asia Limited 

30/F Three Exchange Square, 8 Connaught Place, Central Hong-Kong 

A Hong-Kong company, formed on 29 October 1991 under the name of ABN AMRO ASSET MANAGEMENT (ASIA) Ltd. A subsidiary of BNPP 

IP BE Holding. 

BNP Paribas Investment Partners Asia Limited has delegated, with effect July 1, 2011, the function to: 

HFT Investment Management (HK) Limited 

30/F Three Exchange Square, 8 Connaught Place, Central, Hong-Kong 

The company is a licensed corporation under the Hong Kong Securities and Futures Ordinance (“SFO”), incorporated and domiciled in Hong- 

Kong on 14 April 2010 under Hong Kong law. 

In particular, HFT Investment Management (HK) Limited is acting as investment manager for the subfunds Bond Medium Term RMB and 

Planetary China HFT. 

 

Fisher Francis Trees & Watts Singapore Limited 

20 Collyer Quay Tung Center #01-01, Singapore 049319 

A Singapore company, formed on 26 June 1997, under the name of ABN AMRO ASSET MANAGEMENT (SINGAPORE) Ltd. A subsidiary of BNPP IP 

BE Holding 

AUDITOR OF THE FUND 

PRICEWATERHOUSECOOPERS S.à r.l. 

400, Route d’Esch 

B.P. 1443 

L – 1014 Luxembourg 


FINANCIAL SERVICE AGENTS 

In Luxembourg 

- CACEIS Bank Luxembourg (principal paying agent) 

- BNP Paribas Securities Services, Luxembourg Branch (paying agent) 


BNP PARIBAS FLEXI IV 

Part I of the Offering Document 

GENERAL PROVISIONS 

BNP PARIBAS FLEXI IV, hereinafter referred to as the “Fund”, is an open-ended investment fund without legal personality in the form of a collective 

investment fund organized as an umbrella fund (fonds commun de placement – fonds d’investissement specialisé abbreviated to FCP-FIS) pursuant 

to the Law of 2007. 

The Fund was established on 27 April 2007 for an indefinite period. 

The Fund will be managed by the Management Company in accordance with the Management Regulations and in the exclusive interest of the 

Unitholders. The Management Company shall act in its own name on the collective behalf of the Unitholders. 

The Management Regulations of the Fund signed initially on 27 April 2007 were deposited at the Registry of Commerce in Luxembourg and were 

published in the “Mémorial” on 28 June 2007 through a notice advising of the deposit. The current version of the Management Regulations was 

signed on first November 2010. The Management Regulations are available for inspection at the Registry of Commerce in Luxembourg. They may 

be changed by the Management Company with the approval of the Custodian Bank. All changes will be published in the Mémorial and in 

newspapers as determined by the Management Company. The new Management Regulations come into force five days after the publication in the 

Mémorial, Recueil des Sociétés et Associations of Luxembourg (the “Mémorial”) of a notice of the deposit of the amendments with the Luxembourg 

Register of Commerce and Companies, unless otherwise provided for in the relevant document amending the Management Regulations. 

The Management Regulations shall govern the relations between the Management Company, the Custodian Bank and the Unitholders, as 

described in this Offering Document. The subscription or purchase of Units shall imply acceptance of the Management Regulations by the 

Unitholder. 

The Management Regulations give the Management Company the authority to establish different compartments for the Fund as well as different 

Unit classes and/or sub-classes with specific characteristics within these compartments. This Offering Document will be updated each time a new 

compartment or an additional Unit class is issued. 

The Fund’s assets shall be separated from the Management Company’s assets. The Fund has no legal personality as an investment fund and 

Investors shall have equal undivided co-ownership rights to all of the Fund’s assets in proportion to the number of Units held by them and the 

relative net asset value of those Units. These rights shall be represented by the Units issued by the Management Company. 

The compartments of the Fund each represent a portfolio containing different assets and liabilities, and each compartment is considered a separate 

entity in relation to the Unitholders and third parties. 

The Management Regulations do not provide for a general meeting of the Unitholders. 


MANAGEMENT AND ADMINISTRATION 

Management Company 

BNP Paribas Investment Partners Luxembourg (hereinafter the “Management Company”) is a public limited company (“société anonyme”) 

established under Luxembourg law 19 February 1988. Its latest updated Articles of Association were amended on 30 th June 2010. Its share capital 

is EUR 3 millions fully paid up. 

It has its registered office at 33 rue de Gasperich, L – 5826 Howald-Hesperange. 

The Management Company is registered at the Luxembourg Registry of Commerce under n° B 27605. 

BNP Paribas Investment Partners Luxembourg manages the following mutual investment funds: 

BNP Paribas Global Bond Fund, BNP Paribas High Quality Euro Bond Fund, BNP Paribas Islamic Fund, EasyETF, EasyETF iTraxx® Europe Main, 

EasyETF FTSE EPRA Europe, EasyETF FTSE EPRA Eurozone, EasyETF iTraxx® Europe HiVol, EasyETF iTraxx® Crossover, EasyETF S&P 

GSCI Light Energy Dynamic TR, EasyETF S&P GSNE, EasyETF S&P GSAL, EasyETF S&P GSCI Capped Commodity 35/20, EasyETF 

S&P GSCI Ultra-Light Energy, EasyETF NMX30 Infrastructure Global, EasyETF NMX Infrastructure Europe, Euro Floor, BNP Paribas 

COMFORT, BNP PARIBAS FLEXI IV, BNP Paribas Private Real Estate Fund of Funds et BNP Paribas QUAM FUND. 

The Management Company shall be supervised by an auditor. At the date of this Offering Document, this function is undertaken by 

PRICEWATERHOUSECOOPERS S.à.r.l., Luxembourg. 

Central administration and portfolio management 

The Management Company performs administration and portfolio management on behalf of the Fund. 

Under its responsibility and at its own expense, the Management Company is authorised to delegate some or all of these tasks to third parties of its 

choosing. 

It has used this authority to delegate: 

net asset value calculation task to BNP Paribas Securities Services, Luxembourg Branch as from December 3, 2010. 

transfer agent and registrar tasks to BNP Paribas Securities Services, Luxembourg Branch as from February 1 2011. 

the management of the Fund’s holdings and respect for its investment policy and restrictions, to the managers listed above in “General 

Information”. A list of the managers and investments advisors effectively in charge of management and details of the portfolios managed are 

appended to the Fund’s annual report. Investors may request an up-to-date list of managers specifying the portfolios managed by each. 

In executing securities transactions and in selecting any broker, dealer or other counterpart, the Management Company and any Investment 

Managers will use due diligence in seeking the best overall terms available. For any transaction, this will involve consideration of all factors deemed 

relevant, such as market breadth, security price and the financial condition and execution capability of the counterpart. An investment manager may 

select counterparts within the BNP Paribas Group so long as they appear to offer the best overall terms available. 

In addition, the Management Company may decide to appoint Distributors/Nominees to assist in the distribution of the Fund’s units in the countries 

where they are marketed. 

Distribution and Nominee contracts will be concluded between the Management Company and the various Distributors/Nominees. 

In accordance with the Distribution and Nominee Contract, the Nominee will be recorded in the register of unitholders in place of the end 

unitholders. 

The terms and conditions of the Distribution and Nominee contract will specify, among other things, that unitholders that have invested in the Fund 

through a Nominee can at any time request the transfer to their own name of the units subscribed via the Nominee. In this case, the unitholders will 

be recorded in the register of unitholders in their own name as soon as the transfer instruction is received from the Nominee. 

Investors may subscribe to the Fund directly without necessarily subscribing via a Distributor/Nominee. 

Custodian bank 

Custody and supervision of the Fund’s assets are entrusted to a custodian bank, which fulfils the obligations and duties prescribed by the Law of 

2007. The Custodian may, in accordance with usual banking practices and provisions of the Law of 2007 entrust other banks or financial institutions 

with the custody of all or part of these assets. 

Auditor of the Fund 

All the Fund’s accounts and transactions are subject to an annual audit by PricewaterhouseCoopers S.à R.L. 


INVESTMENT POLICY, OBJECTIVES, RESTRICTIONS AND TECHNIQUES 

The Fund’s general objective is to provide its Investors with the highest possible value for the capital invested at the same time as offering them a 

broad spread of risks. To this end, the Fund will principally invest its assets in a range of securities, money market instruments, units or shares in 

undertakings for collective investment, credit institution deposits, derivatives, denominated in various currencies and issued in different countries 

and other assets permitted by the Law of 2007. 

Since the Fund may invest in Units of undertakings for collective investment, the Investor is exposed to the risk of dual fees (such as the 

management fees for the undertakings for collective investment in which the Fund invests). 

The Fund’s investment policy is determined by the Management Company in light of current political, economic, financial and monetary 

circumstances. The policy will vary for different compartments, within the limits of, and in accordance with, the specific features and objective of 

each as stipulated in Part II of the Offering Document. 

The investment policy will be conducted with strict adherence to the principle of diversification and spread of risks. To this end, without prejudice to 

anything that may be specified for one or more individual compartments, the Fund will be subject to a series of investment restrictions as stipulated 

for each compartment in Part II. In this respect, the attention of investors is drawn to the investment risks described for each compartment in Part II. 

The assets of the Fund are subject to normal market risks and no assurance can be given that the objectives set out above will be achieved. 

Furthermore, the Fund is authorised to utilise techniques and instruments on transferable securities and money market instruments under the 

conditions and limits defined for each compartment in Part II of the Offering Document, provided that these techniques and instruments are 

employed for the purposes of efficient portfolio management. When these operations involve the use of derivatives, these conditions and limits must 

comply with the provisions of the law and regulation. Under no circumstances can these operations cause the Fund and its compartments to deviate 

from the investment objectives described in this Offering Document. 

Unless otherwise specified in each subfund’s investment policy, no guaranty can be given on the realisation of the investment objectives of the 

subfunds and past performance is not an indicator of future performances. 


THE UNITS 

FORM(S), CLASS(ES) AND SUB-CLASS(ES) 

The Management Company may set up as many compartments as it deems necessary in accordance with the criteria and procedures to be 

determined by the Management Company. Within each compartment, the Management Company will be able to create classes and/or sub-classes 

of Units (the following “classes” and “sub-classes”): 

“Institutions” or “I” 

These units are reserved for Well-Informed Investors. 

It is subject to a reduced taxe d’abonnement. The special conditions applicable to this class are summarised for each compartment in Part II of the 

Offering Document. 

Unless otherwise specified in Part II of the Offering Document, these units may, at the Investor’s choice, feature capitalisation (“Institutions- 

Capitalisation”) or distribution (“Institutions-Distribution”) of income. They will be in registered form. 

The Management Company will not issue Units to persons or companies who may not be considered as Well-Informed Investors for the purpose of 

the Law of 2007; furthermore the Management Company will not give effect to any transfer of Units which would result in a non Well-Informed 

Investor becoming a Unitholder in the Fund. 

Units in this class held by non-eligible persons will be redeemed by the Management Company. 

Before subscribing, the Investor should check in Part II of the Offering Document which classes and sub-classes are available for each 

compartment. If it transpires that the Units of a class or sub-class are held by other than authorised persons, the Management Company will redeem 

them. 

Without prejudice to the specific features of one or more compartments, capitalisation and distribution units are mainly distinguished in that 

capitalisation units retain their income in order to reinvest it. The Management Company will be responsible for determining the methods of payment 

for the approved dividends. Dividends and interim dividends, even if outside the legally prescribed time-bar period, will be paid by the Fund at 

whatever date they are presented for payment. Lastly, the Management Company may, if it considers it appropriate, decide to distribute interim 

dividends and make interim dividend payments. 

The register of unitholders is kept in Luxembourg by the registrar indicated above in the “General information” section. Unless otherwise specified, 

unitholders requiring their units to be held in registered form will not receive a certificate representing their units. Instead, they will be sent 

confirmation of their entry in the register. 

Fractions of units may be issued for registered units up to one thousand of a unit. The units of each compartment and/or each class and/or subclass 

have an equal right to the liquidation proceeds of the compartment and/or each class and/or sub-class concerned. 

Capitalisation units retain their income to reinvest it. 

In case of distribution units, the Management Company, for each compartment concerned, decides each year to pay a dividend, which is calculated 

according to the legal and bylaws limitations provided for this purpose. In any case, the Fund distributes to the distribution units income collected, 

after deducting the remuneration, commissions and expenses proportionately related to it. 

If it deems it advisable, the Management Company may decide to distribute advances on dividends. 

The Management Company determines the payment methods for the dividends and advances on dividends that are decided on. The Management 

Company may, if it considers it appropriate, decide to distribute interim dividends and make interim dividend payments. 

Dividends and advances on dividends, even when legally required, shall be paid by the Fund regardless of the date of presentation for payment. 


SUBSCRIPTION, CONVERSION AND REDEMPTION OF UNITS 

Preliminary information 

Subscriptions, conversions and redemptions of Units are made without reference to their net asset value (NAV). 

At its discretion, the Management Company reserves the right to: 

(a) refuse a Unit subscription/conversion request in whole or in part; 

(b) redeem, at any time, Units held by persons who are not authorised to buy or hold the Fund’s Units; 

(c) reject subscription, conversion or redemption requests from any investor who it suspects of using practices associated with market timing, and, 

where applicable, take the necessary measures to protect the Fund’s other investors. Market timing is understood to mean the technique of 

arbitrage whereby an investor systematically subscribes and redeems or converts units or shares in a single UCIs within a short space of time 

by taking advantage of time differences and/or imperfections or deficiencies in the system of determining the NAV of the UCIs. Furthermore, 

the Management Company does not permit Late Trading which is to be understood as the acceptance of a subscription, conversion or 

redemption requests after 16:00 CET on the bank business day immediately preceding the relevant valuation day and the execution of such 

request at the price based on the net asset value applicable to such same date. These techniques are not authorised by the Management 

Company. 

For each compartment, the Management Company is authorised to set minimum amounts for subscription, conversion, redemption and holding. If a 

redemption request causes the number or total net asset value of the Units that a Unitholder owns in a Unit category / sub-category to fall below 

such minimum number or value set by its Board of Directors, the Management Company may compel said Unitholder to redeem all of his Units in 

said Unit category / sub-category. 

Lastly, in certain cases stipulated in Appendix 5, the Management Company is authorised to temporarily suspend the issue, conversion and 

redemption of Units in any compartment, class and/or sub-class, and the calculation of their net asset value. 

In connection with anti-money laundering procedures, the subscription form must be accompanied by the subscriber identity card or 

passport, for an individual, certified by a qualified authority (for example embassy, notary, police commissioner) or by a financial 

institution subject to an obligation for identification equivalent to Luxembourg standards or the Articles of Association and an extract 

from the trade and companies register for a legal entity, in the following cases: 

1. direct subscription to the Fund; 

2. subscription through a professional financial sector intermediary resident in a country that is not subject to an obligation for 

identification equivalent to Luxembourg standards as regards preventing the use of the financial system for the purposes of money 

laundering; 

3. subscription through a subsidiary or branch office, the parent company of which would be subject to an obligation for identification 

equivalent to that required under Luxembourg law, if the law applicable to the parent company does not oblige it to ensure that its 

subsidiaries or branch offices adhere to these provisions. 

The Management Company is also bound to identify the source of funds if they come from financial institutions that are not subject to an 

obligation for identification equivalent to those required under Luxembourg law. Subscriptions may be temporarily frozen pending 

identification of the source of the funds. 

It is generally accepted that finance sector professionals resident in countries that have signed up to the conclusions of the FATF 

(Financial Action Task Force) on money laundering are deemed to have an obligation for identification equivalent to that required under 

Luxembourg law. 

Subscriptions 

All the terms and conditions for subscriptions during the launch of a compartment, class and/or sub-class (“Initial subscription period”) are described 

in Part II of the Offering Document. At the end of the initial subscription period, the Units will be issued at a price corresponding to the net asset 

value per Unit plus the issue commission described in Part II of the Offering Document. 

For an order to be executed at the asset value on a given Valuation Day, it must be received by the Fund before the time and date specified in the 

detailed conditions for each compartment in Part II of the Offering Document. Orders received after this deadline will be processed at the net asset 

value on the next valuation day after the Valuation Day in question. 

Unless otherwise specified for a particular compartment, the subscription price of each Unit is payable in the valuation currency of the Units 

concerned within the time period defined in Part II of the Offering Document, plus the subscription commission described for each compartment in 

Part II of the Offering Document, where applicable. 

The Management Company reserves the right to postpone subscription requests if it is not certain that the appropriate payment will reach the 

custodian bank within the required payment time. The Units will not be assigned until the subscription request has been received accompanied by 

the payment or a document irrevocably guaranteeing that the payment will be made before the deadline. If payment by cheque is not guaranteed, 

the Units will be assigned after receipt of confirmation of payment. If payment is made in a currency other than the valuation currency for the Units 

subscribed, the exchange costs will be borne by the subscriber. 

The Management Company may accept the issue of Units in exchange for the contribution in kind of transferable securities, in accordance with the 

conditions defined by Luxembourg law, in particular with respect to the obligation for the submission of a valuation report by the auditor of the Fund 

mentioned under “General information” above, and provided that these transferable securities meet the Fund’s investment policy and restrictions for 

the compartment concerned as described in Part II of the Offering Document. The Management Company cannot be held responsible for the 

delayed processing of incomplete orders. 

Conversions 

Without prejudice to the specific provisions of a compartment and/or class and/or sub-class, Investors may request the conversion of some or all of 

their Units into Units of another compartment and/or class and/or sub-class. The number of newly issued Units and the costs arising from the 

transaction are calculated in accordance with the formula described in Appendix 3. 

For a conversion order to be executed at the asset value on a given valuation day, it must be received by the Fund before the time and date 

specified for each compartment in Part II of the Offering Document. Orders received after this deadline will be processed at the asset value on the 

next valuation day after the valuation day in question. 


Redemptions 

Subject to the exceptions and limitations prescribed in the Offering Document, all Investors are entitled, at any time, to have their Units redeemed by 

the Fund. The Units redeemed by the Fund will be cancelled. For a redemption order to be executed at the asset value on a given valuation day, it 

must be received by the Fund before the time and date specified in the conditions for each compartment in Part II of the Offering Document. Orders 

received after this deadline will be processed at the asset value on the next valuation day after the valuation day in question. 

Unless otherwise specified for a particular compartment, the redemption amount for each Unit will be reimbursed in the valuation currency of the 

Units concerned and within the timeframe specified in Part II of the Offering Document, less the redemption commission described for each 

compartment in Part II of the Offering Document, where applicable. At the Unitholder’s request, the payment may be made in a currency other than 

the currency of expression of the redeemed Units, in which case the exchange costs will be borne by the Unitholder and charged against the 

redemption price. The redemption price of Units may be higher or lower than the price paid at the time of subscription (or conversion), depending on 

whether the net asset value has appreciated or depreciated in the interval. 

The Management Company is entitled to meet payment of the redemption price for each consenting Unitholder, by the allocation in kind of 

transferable securities from the compartment concerned, provided that the remaining Unitholders are not prejudiced and that a valuation report is 

produced by the Fund’s auditors. The type and kind of assets that may be transferred in such cases will be determined by the manager, taking into 

account the investment policy and restrictions of the compartment concerned. The costs of such transfers will be borne by the applicant. 

CALCULATION OF THE NET ASSET VALUE PER UNIT 

Each net asset value calculation will be made as follows under the responsibility of the Management Company: 

1. The net asset value per Unit of each compartment, class and/or sub-class will be calculated, unless otherwise stated in Part II of the 

Offering Document, on each full bank business day in Luxembourg, provided that the financial markets corresponding to a significant 

proportion (approximately 50%) of the compartment’s assets were open at least one day after the date that served as the basis for 

calculating the previous NAV. 

It will be calculated in the currency specified in Part II of the Offering Document for each compartment. 

2. The net asset value per Unit will be calculated with reference to the total net assets of the corresponding compartment, class and/or subclass. 

The total net assets of each compartment, class and/or sub-class will be calculated by adding all the asset items held by each 

(including the entitlements or percentages held in certain internal sub-portfolios as more fully described in point 4, below) from which any 

related debts and commitments will be subtracted, all in accordance with the description in point 4, paragraph 4, below. 

3. The net asset value per Unit of each compartment, class and/or sub-class will be calculated by dividing its respective total net assets by 

the number of Units in issue. 

4. Internally, in order to ensure the overall financial and administrative management of the set of assets belonging to one or more 

compartments, classes and/or sub-classes of shares, the Management Company may create as many internal sub-portfolios as there are 

sets of assets to be managed (the “internal sub-portfolios”). 

Accordingly, one or more compartments, classes and/or sub-classes of Units that have entirely or partially the same investment policy 

may combine the assets acquired by each of them in order to implement this investment policy in a sub-portfolio created for this purpose. 

The portion held by each compartment, class and/or sub-class of shares within each of these internal sub-portfolios may be expressed 

either in terms of percentages or in terms of entitlements, as specified in the following two paragraphs. The creation of an internal subportfolio 

will have the sole objective of facilitating the Fund’s financial and administrative management. 

The holding percentages will be established solely on the basis of the contribution ratio of the assets of a given internal sub-portfolio. 

These holding percentages will be recalculated on each valuation day to take account of any redemptions, issues, conversions, 

distributions or any other events generally of any kind affecting any of the compartments, classes and/or sub-classes of Units concerned 

that would increase or decrease their participation in the internal sub-portfolio concerned. 

The entitlements issued by a given internal sub-portfolio will be valued as regularly and according to identical methods mutatis mutandis 

as those mentioned in points 1, 2 and 3, above. The total number of entitlements issued will vary according to the distributions, 

redemptions, issues, conversions, or any other events generally of any kind affecting any of the compartments, classes and/or subclasses 

of Units concerned that would increase or decrease their participation in the internal sub-portfolio concerned. 

5. Whatever the number of classes and/or sub-classes created within a particular compartment, the total net assets of the compartment will 

be calculated at the intervals defined by Luxembourg law, the Management Regulations and/or the Offering Document. The total net 

assets of each compartment will be calculated by adding together the total net assets of each class and/or sub-class created within the 

compartment. 

6. Without prejudice to the information in point 4, above, concerning entitlements and holding percentages, and without prejudice to the 

particular rules that may be defined for one or more particular compartments, the net assets of the various compartments will be valued in 

accordance with the rules stipulated in Appendix 6. 

7. Swing pricing: 

In certain market conditions, taking account of the volume of purchase and sale transactions in a given compartment, class or 

sub-class and the size of these transactions, the Management Company may consider that it is in the interests of Unitholders to 

calculate the NAV per Unit based on the purchase and sale prices of the assets and/or by applying an estimate of the difference 

between the buy and sell price applicable on the markets on which the assets are traded. The Management Company may 

further adjust the NAV for transaction fees and sales commissions, provided these fees and commissions do not exceed 1% of 

the NAV of the compartment, class or sub-class at that time. 


TAX PROVISIONS 

TAXATION OF THE FUND 

At the date of the Offering Document, the Fund was not liable to any Luxembourg income tax or capital gains tax. 

However, the Fund is liable to an annual taxe d’abonnement in Luxembourg representing 0.01% of the net asset value. 

The value of assets represented by units in other undertakings for collective investment is exempt from this taxe d’abonnement, provided that these 

units have already been subject to the taxe d’abonnement. 

When due, the taxe d’abonnement is payable quarterly based on the relevant net assets and calculated at the end of the quarter for which it is 

applicable. 

The Fund benefits from certain exemptions of the taxe d’abonnement as more fully described in article 68 of the Law of 2007. 

TAXATION OF THE FUND’S INVESTMENTS 

Some of the Fund’s portfolio income, especially income in dividends and interest, as well as certain capital gains, may be subject to tax at various 

rates and of different types in the countries in which they are generated. This income and capital gains may also be subject to withholding tax. 

TAXATION OF UNITHOLDERS 

a) Residents of the Grand Duchy of Luxembourg 

At the date of the Offering Document, Unitholders resident in the Grand-Duchy of Luxembourg are not subject to any withholding tax on dividends 

received. However, such dividends must be reported on a tax return. 

Capital gains realised from the sale of Units are not subject to withholding tax if the Units are held for six months or longer, except in the case of 

resident Unitholders holding more than 10% of the units of a compartment. 

b) Residents of another Member State of the European Union, including the French overseas departments, the Azores, Madeira, the Canary 

Islands, the Åland Islands and Gibraltar 

Any individual who receives dividends from the Fund or the proceeds from the sale of Units in the Fund through a paying agent based in a State 

other than the one in which he resides is advised to seek information on the legal and regulatory provisions applicable to him. 

Most countries covered by Directive 2003/48 of the Council of the European Union (EU) dated 3 June 2003 on the taxation of savings income in the 

form of interest payments (hereinafter referred to as “Directive 2003/48”) will report to the tax authorities in the state of residence of the beneficial 

owner of the income the amounts of income from debt claims included in the amount distributed by the Fund (if the compartment invests more than 

15% of its assets in debt claims as defined by Article 6 of Directive 2003/48) or included in the capital gain from the sale, refund or redemption of 

units in the Fund (if the compartment invests more than 40% of its assets in debt claims as defined by Article 6 of Directive 2003/48). 

In lieu of such reporting, Luxembourg as well as certain other countries including Austria, Belgium and Switzerland will generally apply a withholding 

tax on the interest and other income related to interest paid to a beneficial owner resident in another Member State.This withholding tax will be 15% 

from 1 st July 2005 until 30 June 2008, 20% from 1 st July 2008 to 30 June 2011 and 35% from 1 st July 2011. Such withholding will be taken into 

consideration for tax purposes by the tax authority of the state of residence of the individual, in accordance with applicable tax law. The beneficial 

owner may instruct the paying agent to submit to the information-exchange system or to use a tax certificate as an alternative to the withholding tax. 

c) Residents in third countries 

In principle, no withholding tax is levied on interest paid to residents of third countries or territories. 

However, withholding tax is levied, in accordance with Directive 2003/48, on interest and related income paid out to beneficial owners resident in 

Aruba, the Netherlands Antilles, Guernsey, Jersey, the Isle of Man, the British Virgin Islands and Montserrat. 

The foregoing provisions are based on the Law and on the practices currently in force, and are subject to change. Unitholders are 

advised to seek information in their country of origin, place of residence or domicile on the possible tax consequences associated with 

their investment. The attention of Investors is also drawn to certain tax provisions specific to individual countries in which the Fund 

publicly markets its shares. 


INFORMATION FOR UNITHOLDERS 

PUBLICATION OF NET ASSET VALUES AND DIVIDENDS 

The Fund is not required to publish the net asset value on a regular basis according to the Law of 2007. 

The latest net asset value per Unit of each compartment, together with subscription and redemption prices are available on any bank business day 

in Luxembourg (the “Business Day”) at the registered office of the Management Company. 

FINANCIAL YEAR 

The Fund’s financial year starts on 1st January and ends on 31 December. 

FINANCIAL REPORTS 

The Fund publishes an annual report on the last day of its fiscal year which is certified by the auditors. 

The financial reports of each sub fund are published in the reference currency of the sub fund although the consolidated accounts of the Fund are 

expressed in euro. 

The annual report is made public within six months after the end of the fiscal year. 

. 

DOCUMENTS FOR CONSULTATION 

The Management Regulations, Offering Document and financial reports may be consulted at the Fund’s registered office and at the establishments 

responsible for the Fund’s financial service. Copies of the Management Regulations and the annual and interim reports are available on request. 

Information on changes to the Fund will be published in a Luxembourg newspaper and any other journal deemed appropriate by the Management 

Company in countries in which the Fund publicly markets its shares. 


Appendix 1 

Investment restrictions 

1. A subfund may not invest more than 30% of its assets in assets of same kind issued by the same issuer (*). 

This restriction is not applicable to: 

- Investments in assets issued or guaranteed by member States of the OECD or its local authorities or by public international bodies with 

EU, regional or worldwide scope; 

- Investments in UCI which are subject to risk diversification requirements comparable to those applicable to UCI which are subject to the 

Law. 

For the present restriction, each subfund of a target UCI with multiple subfunds is to be considered as a distinct target UCI on the 

condition that the principle of segregation of the commitments of the different subfunds towards third parties is ensured. 

2. Short sales may, in principle, not result in a subfund a short position on transferable securities which represent more than 30% of the assets of 

same kind issued by the same issuer. 

3. The Company does not allow borrowings exceeding 100% of the total net assets of the subfund and that are contracted in any other subfunds 

(*). 

(*) These restrictions are subject to exception in accordance with the specific features and objective of each subfund as stipulated in Part 

II of the present offering document. 


Appendix 2 

Techniques and Financial Instruments 

Without prejudice to the stipulations for one or more particular subfunds, the Company is authorised for each subfund, according to the 

methods described below, to use derivative financial instruments. 

I. GUIDELINES TO FOLLOW WHEN USING DERIVATIVE FINANCIAL INSTRUMENTS 

1. Financial Derivatives guidelines. 

Each subfund may, under its investment policy may not invest more than 30% of its assets in derivatives financial instruments 

whose underlying are issued by the same issuer. 

2. Counterparty Risk: 

The counterparty risk exposure in an OTC derivative transaction may not exceed 30% of its assets if the counterparty is a first 

class rated counterparty and 10% of its assets in other cases. 

3. Collateral 

Recognition of collateral to reduce the total risk linked to the use of derivative financial instruments is permitted 

4. Leverage 

Leverage generates an opportunity for higher return and therefore more important income, but at the same time, increases the 

volatility of the value of the assets of the sub fund hence a risk to lose capital. Leverage limitation may be defined on a case by 

case for each sub-fund. 

5. Risk measurement systems adapted to the risk profile of a sub fund 

Each sub fund may use risk measurement system that is adapted to its particular risk profile in order to ensure that it accurately 

measures all material risks related to the sub fund. 

A VaR (Value at Risk) approach may be applied on a regular basis. In this approach, the maximum potential loss that the portfolio 

and the derivatives in a sub fund could generate within a certain time horizon and a certain degree of confidence is estimated. 

Stress tests can be applied by the sub fund in order to help to manage risks related to possible abnormal market movements. 

Stress tests measure how extreme financial or economic events affect the value of the portfolio at a specific point in time. 

II. 

OTHER TECHNIQUES 

1. SECURITIES LENDING 

The Company may engage in loan transactions on securities provided that the following rules are respected: 

1.1. Rules designed to ensure the successful conclusion of loan transactions 

The Company may only loan securities in the context of a standardised loan system structured by a recognised clearing 

organisation or by a leading financial institution specialising in this type of transaction. For loan transactions, the Company must in 

principle receive a guarantee, the value of which at the time that the loan contract is concluded is at least equal to the overall value 

of the securities loaned. 

This guarantee must be given in the form of liquidities and/or securities issued or guaranteed by a member state of the OECD or its 

national public authorities, or by international institutions and organisations with a community, regional or global remit, frozen in the 

name of the Company until the expiration of the loan. Other forms of guarantee are also authorised provided that the Board of 

Directors is satisfied with the protection. 

2. REPURCHASE AGREEMENTS 

Each sub fund may, on an ancillary basis, engage in repurchase agreements, which consist of purchases and sales of securities 

with clauses that reserve the seller’s right to buy the securities sold back from the purchaser at a price and time stipulated between 

the two parties at the time the contract is concluded. Each sub fund may engage in repurchase agreements either as a purchaser 

or seller. However, the sub fund’s involvement in such agreements is subject to the following rules: (a) each sub fund may only buy 

or sell securities with repurchase options if the counterparties in these agreements are leading financial institutions specialising in 

this type of transaction; and (b) throughout the life of a repurchase agreement, a sub fund cannot sell the securities underlying the 

agreement before the counterparty’s repurchase option has been exercised or the repurchase term has expired. In addition, each 

sub fund must ensure that it maintains the scale of repurchase agreements at a level at which it is possible at any given time to 

meet its repurchase obligations. 

3. TEMPORARY ACQUISITION OF SECURITIES 

Each subfund may: 

(I) Borrow securities (via a repurchase agreement) for a given period and accepting physical delivery; 

Sell these securities; 


Repurchase them afterwards; 

In order to then return the borrowed securities to the original lender; 

Provided such transaction do not represent more than 20% of its net assets and be only made with first-rank financial 

institutions. 


Appendix 3 

Investment Risks 

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

Potential investors are asked to read the prospectus carefully in its entirety before making an investment. Any investments may also be 

affected by changes relating to rules governing exchange rate controls, taxation and deductions at source, as well as those relating to 

economic and monetary policies. 

Investors are also warned that subfund performance may not be in line with stated aims and that the capital they invest (after 

subscription commissions have been deducted) may not be returned to them in full. 

Subfunds are exposed to various risks that differ according to their investment policies. The main risks that subfunds are likely to be 

exposed to are listed below.. 

Some subfunds may be particularly sensitive to one or several specific risks which are increasing their risk profiles compared to 

subfunds sensitive only to generic risk; in such case those risks are mentioned specifically in the part II of the prospectus. 

Credit Risk 

This risk is present in each subfund having debt securities in its investment universe. 

This is the risk that may derive from the rating downgrade or the default of a bond issuer to which the subfunds are exposed, which may 

therefore cause the value of the investments to go down. Such risks relate to the ability of an issuer to honour its debts. 

Downgrades of an issue or issuer rating may lead to a drop in the value of bonds in which the subfund has invested. 

Some strategies utilised may be based on bonds issued by issuers with a high credit risk (junk bonds). 

Subfunds investing in high-yield bonds present a higher than average risk due to the greater fluctuation of their currency or the quality of 

the issuer. 

Liquidity Risk 

This risk may potentially concern all financial instruments and so at one moment impact one or several subfunds. 

There is a risk that investments made by the subfunds may become illiquid due to an over-restricted market (often reflected by a very 

broad bid-ask spread or by substantial price movements), if their “rating” declines or if the economic situation deteriorates; 

consequently, it may not be possible to sell or buy these investments quickly enough to prevent or minimize a loss in these subfunds. 

Counterparty Risk 

This risk relates to the quality or the default of the counterparty with which the management company negotiates, in particular involving 

payment for/delivery of financial instruments and the signing of agreements involving forward financial instruments. This risk is 

associated with the ability of the counterparty to fulfil its commitments (for example: payment, delivery and reimbursement). 

Operational & Custody Risk: 

Some markets are less regulated than most of the international markets; hence, the services related to custody and liquidation for the 

funds on such markets could be more risky. 

Derivatives Risk 

In order to hedge (hedging derivative investments strategy) and/or to leverage the yield of the compartment (trading derivative 

investment strategy), the subfund is allowed to use derivative investments’ techniques and instruments under the circumstances set 

forth in Appendices 1 and 2 of the prospectus (in particular, warrants on securities, agreements regarding the exchange of securities, 

rates, currencies, inflation, volatility and other financial derivative instruments, contracts for difference [CFDs], credit default swaps 

[CDSs], futures and options on securities, rates or futures). 

The investor's attention is drawn to the fact that these derivatives include leveraging. Because of this, the volatility of these subfunds is 

increased. 

Risk Linked to Equity Markets 

This risk is present in each subfund having equities in its investment universe. 

The risks associated with investments in equity (and similar instruments) include significant fluctuations in prices, negative information 

about the issuer or market and the subordination of a company’s shares to its bonds. Moreover, these fluctuations are often amplified in 

the short term. 

The risk that one or more companies suffer a downturn or fail to grow can have a negative impact on the performance of the overall 

portfolio at a given time. There is no guarantee that investors will see an appreciation in value. The value of investments and the income 

they generate may go down as well as up and it is possible that investors will not recover their initial investment. 

There is no guarantee that the investment objective will actually be achieved. 

Some subfunds may invest in initial public offerings ("IPOs"). In this case, there is a risk that the price of the newly floated share may 

see greater volatility as a result of factors such as the absence of an existing public market, non-seasonal transactions, the limited 

number of securities that can be traded and a lack of information about the issuer. A subfund may hold such securities for only a very 

short time, which tends to increase the costs. 

Subfunds investing in growth stocks may be more volatile than the market in general and may react differently to economic, political and 

market developments and to specific information about the issuer. Growth stocks traditionally show higher volatility than other stocks, 

especially over short periods. These stocks may also be more expensive in relation to their profits than the market in general. 

Consequently, growth stocks may react with more volatility to variations in profit growth. 

Some subfunds may base their objective on simple equity market growth, which produces higher than average volatility. 

Managers may temporarily adopt a more defensive attitude if they consider that the equity market or economy of the countries in which 

the subfund invests is experiencing excessive volatility, a persistent general decline, or other unfavourable conditions. In such 

circumstances, the subfund may be unable to pursue its investment objective. 


Interest Rate Risk 

This risk is present in each subfund having debt securities in its investment universe. 

The value of an investment may be affected by interest rate fluctuations. Interest rates may be influenced by several elements or 

events, such as monetary policy, the discount rate, inflation, etc. 

The investor's attention is drawn to the fact that an increase in interest rates results in a decrease in the value of investments in bonds 

and debt instruments. 

Currency Exchange Risk 

This risk is present in each subfund having positions denominated in currencies that differ from its reference currency. 

A subfund may hold assets denominated in currencies that differ from its reference currency, and may be affected by exchange rate 

fluctuations between the reference currency and the other currencies and by changes in exchange rate controls. If the currency in which 

a security is denominated appreciates in relation to the reference currency of the subfund, the exchange value of the security in the 

reference currency will appreciate; conversely, a depreciation of the denomination currency will lead to a depreciation in the exchange 

value of the security. 

When the manager is willing to hedge the currency exchange risk of a transaction, there is no guarantee that such operation will be 

completely effective. 

Inflation Risk 

All types of investments are concerned by this risk. 

Over time, yields of short-term investments may not keep pace with inflation, leading to a reduction in an investment’s purchasing 

power. 

Taxation Risk 

This is a generic risk. 

The value of an investment may be affected by the application of tax laws in various countries, including withholding tax, or changes in 

government or economic or monetary policy in the countries concerned. As such, no guarantee can be given that the financial 

objectives will actually be achieved. 

Commodity Market Risk 

This risk is present in each subfund having commodities (indirectly invested) in its investment universe. 

Commodity markets may experience significant, sudden price variations that have a direct effect on the valuation of shares and 

securities that equate to the shares in which a subfund may invest and/or indices that a subfund may be exposed to. 

Moreover, the underlying assets may evolve in a markedly different way from traditional securities markets (share markets, bond 

markets etc.) 

Emerging Market and Small-Cap Risk 

Subfunds investing in emerging markets, small caps or specialised or restricted sectors are likely to be subject to a higher than average 

volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity, or due to 

greater sensitivity to changes in market conditions (social, political and economic conditions). In addition, some emerging markets offer 

less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and 

conservation on behalf of funds invested in emerging markets may carry greater risk. The Company and investors agree to bear these 

risks. 

With regards to the Russian market, investments there are made with the Russian Trading System Stock Exchange (or “RTS Stock 

Exchange"), which brings together a large number of Russian issuers and allows for almost total coverage of the Russian equity 

universe. By investing with the RTS Stock Exchange, investors can take advantage of the liquidity of the Russian market without having 

to deal in the local currency, as all issuers can be directly traded in USD. 

Smaller companies may find themselves unable to generate new funds to support their growth and development, they may lack vision in 

management, or they may develop products for new, uncertain markets. 

Some of these markets are not currently regarded as regulated markets; direct investment in such markets (with the exception of ADRs 

and GDRs), added to investments in unlisted shares, is limited to 10% of net assets. 

Warrant Risk 

The investor’s attention is drawn to the fact that warrants are complex, volatile, high-risk instruments: the risk of a total loss of the 

invested capital is great. In addition, one of the principal characteristics of warrants is the “leverage effect”, which is seen in the fact that 

a change in the value of the underlying asset can have a disproportionate effect on the value of the warrant. Finally, there is no 

guarantee that, in the event of an illiquid market, it will be possible to sell the warrant on a secondary market. 

Risks Related to Investments in China 

Investments in China involve risks linked to restrictions imposed on foreign investors and counterparties, higher market volatility and the 

risk of lack of liquidity for some lines of the portfolio. Consequently, some shares may not be available to the subfund due to the number 

of foreign shareholders authorised or if the total investments permitted for foreign shareholders have been reached. In addition, the 

repatriation by foreign investors of their share of net profits, capital and dividends may be restricted or require the approval of the 

government. The Company will only invest if it considers that the restrictions are acceptable. However, no guarantee can be given that 

additional restrictions will not be imposed in future. 

Risks due to short selling on transferable securities 

A sub funds can short sell transferable securities: selling a security that isn't owned by the seller, but that is promised to be delivered 

(decrease in share price anticipation). 

Short selling can be motivated by 2 strategies: hedging to protect long positions with offsetting short positions; Trading to profit from an 

overpriced stock or market. 


By short selling, the investor faces high risks for potentially high returns for the following reasons. Short selling is a very risky technique 

as it involves precise timing and goes contrary to the historical overall direction of the market; shorting transferable securities is more 

risky since it involves using borrowed money; finally if price goes up, his losses could mount without limit; If a large number of short 

sellers try to cover their positions in a stock, it can drive up the price even faster (short squeeze). 

Risks due to leverage loans 

The risks pertaining to leveraged loans are found in the case of an early redemption, where in effect, there exists a risk of capital loss on 

loans purchased above par value, to which is added the risk of reinvestment of capital received at the time of redemption (in other 

words, alternative investments could turn out to be less profitable). The holder of the interest is exposed to the borrower’s and the 

issuing institution’s credit risk; the holder is not contractually bound to the borrower and does not generally have any right to compel the 

borrower to respect the terms and conditions of the loan. 

The iTraxx LevX series of indices is intended to allow investors to invest more efficiently in the markets. By providing insurance against 

non-payment risk for corporate loans, it allows managers to cover the exposure of their portfolios to leveraged loans without 

compromising client relations. This series of indices is, in short, a means of coverage against the systemic risk tied to the leveraged loan 

asset class. 

* The investment risks specific to each subfund are set out in Part II of the prospectus 


Appendix 4 

Co-Management 

In order to reduce operating and administrative expenses while enabling a greater diversification of investments, the Management 

Company may decide that some or all of the Fund’s assets be co-managed with assets belonging to other Luxembourg undertakings for 

collective investment or that some or all of the assets of compartments be co-managed together. In the following paragraphs, the term 

“co-managed entities” refers either overall to the Fund and all the other entities with which and between which a co-management 

arrangement exists, or to the co-managed subfunds. The term “co-managed assets” refers to all the assets belonging to these comanaged 

entities that are co-managed by virtue of this co-management arrangement. 

Under co-management, the manager makes investment, disinvestment, or portfolio adjustment decisions for the co-managed entities as 

a whole that will affect the Fund’s portfolio composition or the composition of the portfolios of its co-managed compartments. Of the total 

co-managed assets, each co-managed entity owns a Unit of the co-managed assets corresponding to the proportion of its net assets in 

relation to the total value of the co-managed assets. This proportional holding will be applied to each line of the portfolio held or acquired 

under co-management. In the case of investment and/or disinvestment decisions, these proportions will not be affected and the 

additional investments will be allocated in the same proportions as the co-managed entities, and assets sold will be deducted 

proportionally from the co-managed assets held by each co-managed entity. 

In the case of new subscriptions to one of the co-managed entities, the proceeds from subscriptions will be allocated to the co-managed 

entities according to the amended proportions resulting from the increase of the net assets of the co-managed entity that received the 

subscriptions, and all the lines of the portfolio will be adjusted by transferring the assets from one co-managed entity to another to adapt 

to the amended proportions. Similarly, in the event of redemptions of shares in one of the co-managed entities, the necessary liquidities 

may be deducted from the liquidities held by the co-managed entities in the amended proportions resulting from the decrease in the net 

assets of the co-managed entity from which the redemptions were made, and, in this case, all the lines of the portfolio will be adjusted in 

the proportions thus amended. Investors should be aware that, without specific intervention by the Fund’s competent authorities, the comanagement 

technique can result in the composition of the assets of the Fund or of one or more of its co-managed compartments being 

influenced by events specific to other co-managed entities such as subscriptions and redemptions. Accordingly, all other things being 

equal, subscriptions made to one of the entities with which the Fund is co-managed or to one of the co-managed compartments will 

result in an increase in the Fund’s liquidities or those of the other co-managed compartment(s). Conversely, redemptions made from 

one of the entities with which the Fund is co-managed or from one of the co-managed compartments will result in a decrease in the 

liquidities of the Fund or of the other co-managed compartment(s). Subscriptions and redemptions may however be retained in the 

specific account held for each co-managed entity outside the co-management arrangement through which subscriptions and 

redemptions are always made. Assigning major subscriptions and redemptions to the specific account, and the option of the Fund’s 

Board of Directors to decide at any given time to discontinue the co-management arrangement, will enable the Fund’s portfolio 

adjustments or the portfolio adjustments of its compartments to be compensated if these adjustments are considered to be against the 

best interests of the Fund or its compartments and Investors. In the case when an adjustment to the composition of the Fund’s portfolio 

or to the portfolio of one or more of its co-managed compartments is necessitated by redemptions or payments of expenses attributable 

to another co-managed entity (i.e. not attributable to the Fund) risk resulting in a breach of the corresponding investment restrictions, the 

assets concerned will be excluded from the co-management arrangement before the adjustment is implemented in such a way that the 

portfolio movements are not affected. 

Co-managed assets will only be co-managed with assets designed to be invested according to an identical investment objective 

applicable to that of the co-managed assets in such a way as to ensure that the investment decisions are fully compatible with the 

investment policy of the Fund or its compartments. The co-managed assets will only be co-managed with assets for which the custodian 

bank also acts as custodian so as to ensure that the custodian bank can, with regard to the Fund or its compartments, fully exercise its 

functions and responsibilities in accordance with the provisions of the Law. The custodian bank will at all times ensure a rigorous 

segregation of the Fund’s assets in relation to the assets of the other co-managed entities or between the assets of co-managed 

compartments and as such will be able, at any given time, to determine the assets belonging to the Fund or co-managed compartments. 

Given that the co-managed entities may have investment policies that are not strictly identical to the Fund’s investment policy, it is 

possible that the joint policy applied will be more restrictive than that of the Fund or than that of one or more of the co-managed 

compartments. 

A joint management agreement has been and/or will be signed between the Management Company, the custodian bank/central 

administration agent and manager in order to define the rights and obligations of each party. The Board of Directors may, at any given 

time and without any prior notice, decide to discontinue the co-management arrangement. 

Investors may at any time contact the Management Company’s registered office for information on the percentage of assets comanaged 

and the entities with which such co-management is in force at the time of request. The periodic reports issued at the end of 

each annual period will provide information on the composition and percentage of co-managed assets. 


Appendix 5 

Conversion Formula 

The number of Units allocated to a new compartment, new class or new sub-class will be established according to the following formula: 

A = [(B x (C - (C x F)) x D) / E] + X 

where 

- "A" represents the number of Units to be allocated to the new compartment, new class or new sub-class; 

- "B" represents the number of Units to be converted from the original compartment, original class or original sub-class; 

- "C" represents the net asset value, on the applicable valuation day, of the Units to be converted from the original compartment, 

original class or original sub-class; 

- "D" represents the exchange rate applicable on the day of the transaction between the currencies of the Units to be converted; 

- "E" represents the net asset value, on the applicable valuation day, of the Units to be allocated to the new compartment, new 

class or new sub-class; 

- "F" represents the commission rate for conversions mentioned in the description of each compartment in Part I of the Offering 

Document; 

- "X" is the unassigned balance which, if any, will be reimbursed to the Unitholder. Investors are reminded that the Management 

Company may issue fractions of Units up to one-thousandth. 


Appendix 6 

Suspension of the calculation of the net asset value and the issue, conversion and redemption of Units 

Unless otherwise specified for each compartment in Part II of the Offering Document, the following provisions shall apply. 

The Management Company may at any time temporarily suspend with immediate effect the calculation of the value of the net assets of 

one or more compartments, and suspend issues, conversions and redemptions in the following cases: 

(a) during any period in which one or more markets or stock exchanges that are the principal markets or stock exchanges 

on which a substantial portion of a compartment’s investments are quoted at a given moment are closed except for 

normal days of closure, or during which trading is subject to significant restrictions or is suspended; 

(b) when the political, economic, military, monetary, or social situation, or any other event of force majeure, outside the 

Fund’s responsibility or power, makes it impossible to access its assets by reasonable and normal means, without 

severely prejudicing the interests of the Unitholders; 

(c) during any break in the communications normally used to determine the price of any of the Fund’s investments or 

current prices on any market or stock exchange; 

(d) when restrictions on foreign currencies or the movement of capital prevent transactions from being made on the Fund’s 

behalf or when the Fund’s assets cannot be purchased or sold at normal exchange rates; 

(e) as soon as a decision is taken to liquidate the Fund or one or more of its compartments; 

(f) in order to establish the exchange parity in the case of a merger, asset contribution, split-off, or any restructuring 

operation, of, by or in one or more of the Fund’s compartments and for a maximum period of two bank business days 

in Luxembourg; 

(g) or any other cases when the Management Company estimates by a reasoned decision that such a suspension is 

necessary to safeguard the general interests of the Unitholders concerned. 

In the event the calculation of the net asset value is suspended, the Management Company shall immediately and in an appropriate 

manner inform the Unitholders who requested the subscription, conversion or redemption of the Units of the sub-fund(s) in question. 

In the event the total net redemption /conversion applications received for a given sub-fund on the date of calculation of the net asset 

value concerns more than 10% of the net assets of the sub-fund in question, the Management Company may decide to reduce and/or 

defer the redemption/ conversion applications on a pro rata basis so as to reduce the number of shares redeemed/ converted to date to 

no more than 10% of the net assets of the sub-fund in question. Any redemption/ conversion applications thus deferred shall be given 

priority in relation to redemptions/conversion applications received on the next day of calculation of the net asset value, again subject to 

the aforementioned limit of 10% of the net assets. 

In exceptional circumstances which could have a negative impact on shareholders' interests, or in the event of subscription, redemption 

or conversion applications exceeding 10% of a sub-fund's net assets, the Management Company reserves the right not to determine the 

value of a share until such time as the required purchases and sales of securities have been made on behalf of the sub-fund. In that 

event, subscription, redemption and conversion applications in the pipeline will be processed simultaneously on the basis of the net 

asset value so calculated. 

Pending subscription, conversion and redemption applications may be withdrawn by written notification provided that such notification is 

received by the Management Company prior to lifting of the suspension. Pending applications will be taken into account on the first 

calculation date following lifting of the suspension. If all pending applications cannot be processed on the same calculation date, the 

earliest applications shall take precedence over more recent applications. 


Appendix 7 

Composition of assets and valuation rules 

The Company shall calculate the net asset value of each sub fund, the net asset value per share for each class and sub-class of share 

and the issue, conversion and redemption prices, at to a frequency to be set by the Board of Directors. 

The net asset value of each sub fund shall be equal to the total value of the assets of said sub fund less the sub fund’s liabilities. 

The net asset value per share is obtained by dividing the net assets of the subfund in question by the number of shares issued for said 

subfund, considering, where applicable, the breakdown of the net assets of said subfund between the various share categories and subcategories 

of the subfund in question. 

Said net value shall be expressed in the currency of the subfund in question or in any other currency that the Board of Directors may 

choose. 

The day on which the net asset value is calculated shall be referred to in these Articles of Association as the “Calculation Date”. 

The Company’s assets primarily include: 

(1) all cash in hand or on deposit including interest due not received and interest accrued on deposits before the payment date; 

(2) all notes and bills payable on demand and accounts receivable (including the results of sales of securities before the proceeds 

have been received); 

(3) all securities, units, shares, bonds, options or subscription rights and other investments and transferable securities owned by the 

Company; 

(4) all dividends and distributions to be received by the Company in cash or securities that the Company is aware of; 

(5) all interest due not received and all interest yielded before the payment date by securities owned by the Company, unless such 

interest is included in the principal of these stocks; 

(6) the Company’s establishment costs, where these have not been amortised; 

(7) all other assets of any nature whatsoever, including prepaid expenses. 

Without prejudice to anything specified for an individual subfund, a class and/or sub-class, the value of these assets will be determined 

as follows: 

(a) the value of cash in hand or on deposit, notes and bills payable on demand and accounts receivable, prepaid expenses, and 

dividends and interest announced or due but not yet paid, will be constituted by the normal value of these assets, unless it seems 

unlikely that this value can be achieved; in which case, the value will be determined by deducting such amount as the Company 

considers appropriate in order to reflect the real value of these assets; 

(b) the value of units in undertakings for collective investment will be determined according to the latest available net asset value; 

(c) the valuation of any security listed on an official market or any other regulated market, operating regularly, which is recognised and 

open to the public, is based on the last known price in Luxembourg, on the valuation day, and, if that security is traded on several 

markets, based on the last known price on the main market for the security; if the last known price is not representative, the 

valuation will be based on the probable realisation value that the Board of Directors will estimate prudently and in good faith; 

(d) securities not listed or traded on a stock market or other regulated market, operating regularly, which is recognised and open to the 

public, will be valued on the basis of their probable realisation value estimated prudently and in good faith. 

(e) securities expressed in a currency other than the currency of expression of the subfund concerned will be converted on the basis of 

the exchange rates applicable on the valuation day; 

(f) the Board of Directors is authorised to draft or amend the rules relating to the determination of the relevant valuation prices. 

Decisions taken in this regard will be reflected in the Offering Document. 

(g) swaps will be valued on the basis of the difference between the value of all future interest payable by the Company to its 

counterparty on the valuation date at the zero coupon swap rate corresponding to the maturity of these payments and the value of 

all future interest payable by the counterparty to the Company on the valuation date at the zero coupon swap rate corresponding to 

the maturity of these payments; 

(h) the internal valuation model for CDS utilises as inputs the CDS rate curve, the cover rate and a discounted rate (LIBOR or market 

swap rate) to calculate the mark-to-market. This internal model also produces the rate curve for default probabilities. To establish 

the CDS rate curve, data from a certain number of counterparties active in the CDS market are used. The manager uses the 

valuation of the counterparties’ CDS to compare them with the values obtained from the internal model. The starting point for the 

construction of the internal model is parity between the variable portion and fixed portion of the CDS on signing the CDS. 

(i) since EDS (Equity Default Swaps) are triggered by an event affecting a share, their valuation depends mainly on the volatility of the 

share and its asymmetrical position. The higher the volatility, the greater the risk that the share will reach the 70% threshold and 

therefore the greater the EDS spread. The spread of a company’s CDS also reflects its volatility, since high volatility of the share 

indicates high volatility of the assets of the company in question and therefore a high probability of a credit event. Given that the 

spreads of both EDS and CDS are correlated with the implicit volatility of the shares, and that these relations have a tendency to 

remain stable over time, an EDS can be considered as a proxy for a CDS. The key point in the valuation of an EDS is to calculate 

the implicit probability of a share event. Two methods are generally accepted: the first consists of utilising the market spread of the 

CDS as input in a model to evaluate the EDS; the second utilises the historic data of the share in question to estimate that 

probability. Although historic data do not necessarily present a good guide as to what may happen in the future, such data can 

reflect the general behaviour of a share in the face of crises. In comparing the two approaches, it is very rare to see historic 

probabilities higher than the shares’ implicit probabilities; 


(j) the valuation of a CFD (Contract for Difference) will at any given moment reflect the difference between the latest known price of 

the underlying stock and the valuation that was taken into account when the transaction was signed. 

(k) The valuation of the Leveraged Loans will be made by multiplying the Principal Balance of the Collateral Obligation (loan) by the 

average bid price value determined by Loan Pricing Corporation or LoanX Mark-It Partners, in the case of loans, or LoanX Mark-It 

Partners, FT Interactive, Bridge Information Systems, KDP or IDC, in the case of bonds, or, in either case, any other Independent 

pricing service designated by the manager; if such service is not available, then an average of the bid side prices determined by 

independent broker-dealers active in the trading of such Collateral Obligation will be used for the valuation. 

(l) The valuation of the mid price for a particular CDO (Collateralised Debt Obligations) will be done using the normal and customary 

method of pricing for determining the price at which a manager would purchase similar type seasoned assets for its own portfolio. 

This generally involves developing assumptions in respect of the pool (e.g. of mortgage loans) underlying the relevant CDO, 

including as to the frequency and timing of defaults across the pool, or across different product types within the pool, the severity of 

the loss on each loan that has defaulted or is assumed to default, the prepayment speed across the pool, or across different 

product types within the pool, and the level of future interest rates. Will also be taken into account the impact of any derivatives, 

triggers, call rights and other factors that are considered as relevant or appropriate to review and that are embedded in, or are part 

of, the underlying transaction. It will be applied what it is believed to be a then-current market-based discount (based on Bids or 

Mids provided by structuring banks as above) rate to the cash flows generated using the assumptions so developed to determine a 

bid price for the relevant CDO residual. 

The Company’s liabilities primarily include: 

(1) all loans, bills due and accounts payable; 

(2) all known obligations, whether payable or not, including all contractual obligations reaching maturity, due for payment in cash or in 

kind (including the amount of dividends announced by the Company but not yet paid); 

(3) all reserves, authorised or approved by the Board of Directors, primarily those that have been constituted to meet a potential 

capital loss on any of the Company’s investments; 

(4) any other commitment of the Company, of any kind whatsoever, except for those represented by the Company’s own resources. 

To value the amount of these other commitments, the Company will take into account all the expenses to be borne by it, including 

without limit, the costs of creating the Articles of Association and any later amendments, the Offering Document and any other 

document relating to the Company, commissions and expenses payable to the manager, accountant, custodian and corresponding 

agents, domiciliation agent, administrative agent, transfer agent, paying agents or any other agents, service providers, 

representatives and/or employees of the Company, as well as permanent representatives of the Company in the countries where it 

is registered, expenses for legal support and the auditing of the Company’s annual accounts, promotion costs, printing and 

publishing costs for share sales documents, the printing costs of the annual and interim financial reports, the printing costs of 

bearer securities, the costs of holding General Meetings and meetings of the Board of Directors, reasonable travel costs for officers 

and directors, directors’ fees, costs of registrations and filings, all taxes and duties withheld by government authorities and stock 

markets, the costs of publishing the issue and redemption prices and any other operating expenses, including financial, banking or 

broking expenses incurred during the purchase or sale of assets or otherwise, and all other administrative expenses. To value the 

amount of these commitments, the Company will take into account, on a time-prorated basis, any recurrent or one-off 

administrative and other expenses. 

The assets, liabilities, expenses and fees that are not attributable to a subfund, class or sub-class will be charged to the different 

subfunds, classes or sub-classes in equal shares or, where this is justified by the amounts in question, prorata with their respective net 

assets. Each of the Company’s shares that is in the process of being redeemed will be considered as a share issued and outstanding 

until the close on the valuation day applicable to that share’s redemption and, from the close of that day and until the price is paid, its 

price will be considered as a liability for the Company. Each share to be issued by the Company in accordance with the subscription 

requests received will be treated as being issued at the close of the valuation day of its issue price and its price will be treated as an 

amount due to the Company until it is received by the Company. As far as possible, every investment or disinvestment decided by the 

Company will be taken into account on the valuation day. 

Formation costs for the creation of a subfund shall be charged to the concerned subfund and amortised over a five years period. 


Appendix 8 

Liquidation and merging of the Fund and its compartments 

Merger or liquidation of classes, sub-classes or compartments 

The Management Company may decide on: 

1) either the pure and simple liquidation of a sub-fund, 

2) or the closure of a sub-fund by transfer to another sub-fund of the Company, 

3) or the closure of a sub-fund by transfer to another Luxembourg collective investment undertaking within the limits authorised by the 

Law. 

In the event of a transfer to a mutual fund (fonds commun de placement), the formal agreement of the shareholders concerned shall be 

required and the decision taken in relation to the transfer shall bind only the shareholders deciding in favour of said transfer. 

The same decisions may be taken by the management Company with the majority of its members in the following cases only: 

1) when the net assets of the sub-fund concerned fall under a threshold deemed to be adequate for the efficient management of the 

sub-fund. 

2) when substantial changes occur in the political, economic and social situation, or if such a move is in the best interest of the 

shareholders. 

Any such decisions will be published in the press as specified in the “Information to Unitholders” section above. 

In the event of the pure and simple liquidation of a sub-fund, the net assets shall be distributed between the eligible parties in proportion 

to the units they own in said compartments. The assets not distributed within nine months of the date of the decision to liquidate shall be 

deposited with the Public Trust Office (Caisse de Consignation) until the end of the legally specified limitation period. 

In the case of closure of a compartment by contribution, the Unitholders of that compartment will be entitled, for a period of one month, 

to request the redemption of their units, in which case no redemption fees will be charged. At the end of this period, any Unitholders who 

have not requested redemption will be bound by the contribution decision. 

Dissolution and liquidation of the Fund 

The Fund will be liquidated according to the conditions stipulated by the law and regulations. 

Unitholders are not empowered to terminate the existence of the Fund. 

The Fund will automatically be liquidated in the following cases: 

at the end of the term (if any) set in the Management Regulations; 

if the functions of the Management Company or the Custodian Bank cease and they are not replaced within two months; 

if the Management Company becomes insolvent; 

if, for a period of more than six months, the net assets are less than one quarter of the statutory minimum. If the Fund’s net assets 

are less than two thirds of the minimum capital, the Management Company must inform the supervisory authority without delay. 

Depending on the circumstances, the supervisory authority may ask for the Fund’s liquidation. The supervisory authority can force 

the Management Company to put the Fund into liquidation. The supervisory authority’s injunction on the Management Company to 

put the Fund into liquidation will be published without delay by the Management Company or the Custodian Bank. 

in all other cases specified in the Management Regulations. 

The Management Company may decide on the liquidation of the Fund if substantial changes occur in the political, economic and social 

environment or if justified by the interests of the Unitholders. 

The reason for the liquidation of the Fund will be published in the Mémorial and in at least two newspapers of appropriate circulation, of 

which at least one must be a Luxembourg newspaper. 

As soon as the incident prompting liquidation occurs, the Fund may no longer issue units, as they will be invalid. It will still be possible to 

redeem units, provided the principle of equal treatment of Unitholders is respected. 

The liquidation of the Fund will be carried out by a liquidator. 

The net proceeds of liquidation will be distributed by the liquidator to the Unitholders in proportion to the number of units they hold. 

The proceeds of the liquidation that are not distributed within nine months from the date of the decision to liquidate shall be deposited 

with the Public Trust Office (Caisse de Consignation) and held for unidentified shareholders until expiry of the thirty year limitation 

period.Those liquidation proceeds that have not been distributed by the close of the liquidation procedure will be deposited on behalf of 

the unidentified Unitholders. 


PART II

BNP Paribas Flexi IV Bond Medium Term RMB 

Investment policy 

Investment objective and policy of the compartment 

The compartment invests its assets in money market instruments and Chinese Governement bonds denominated in Chinese Renminbi 

(RMB) and in cash and deposits denominated in RMB or other currencies. 

The maturity of the investments in the portfolio will be maximum 3 years. 

To achieve its objectives, the compartment may invest up to 10% of its assets in other UCITS or UCI. 

Specific restrictions 

Contrary to item 1 of Appendix 1 “Investment Restrictions” in Part I of this Offering Document, the compartment can invest up to 100% 

of its assets in securities of the same kind issued by the same issuer. 

The compartment cannot engage in short selling. 

The compartment does not allow borrowing exceeding 25% of its net assets. 

The compartment can invest up to 100% of its assets in cash with one single entity. 

The compartment is not allowed to use Financial Derivatives Instruments. 

General information 

With effect from 1 December 2002, new regulations enabled “Qualified Foreign Institutional Investors” (QFII) to invest in the People’s 

Republic of China in type “A” shares, government bonds, convertible bonds, corporate bonds and any other financial instruments 

authorised by the “China Securities Regulatory Commission” (CSRC). 

On 11th October 2004, the CSRC granted BNP Paribas Fortis “QFII” status. 

The principal restrictions applied to QFII status concern the size, minimum holding period and repatriation of investments. 

The initial investment may only be repatriated from one year after the first valuation day and only in maximum instalments of 20% of the 

total initial investment every 3 months. 

Investment risks of the compartment 

There are inherent risks to investing in the compartment. These risks are particularly associated with the stock market, the bond market, 

exchange rates, credit, market volatility and political risks, as well as any combination of these and other risks. Some of these risk 

factors are briefly outlined below. 

The risk factors may occur simultaneously and/or consecutively, making it impossible to forecast the value of shares. 

Potential investors should be aware that the value of the shares may go down and should be prepared to suffer the total loss of their 

investment. 

Tax risks 

Investment in the compartment involves risks due to fiscal measures that the Chinese government could impose on foreign investors. 

Currently, capital gains realised by a QFII that has no permanent establishment in China are not taxed. Consequently, based on current 

legislation, the compartment does not make provision to cover such a potential tax but it may have to amend this position without prior 

notification in the event that an amendment to the tax legislation were decided or expected. 

For dividends, interest ad potentially other income, the applicable tax is withheld at the source at the moment of payment. Therefore no 

provision is made in the NAV Calculation 

Market risks 

Potential investors are advised that an investment in the compartment contains a high degree of risk due to the political and economic 

situation of the Chinese market, which could affect the value of the investments. 

Investment and repatriation risks 

Investment in the compartment involves risks due to restrictions imposed on foreign investors, counterparties, greater market volatility 

and a risk of lack of liquidity in certain portfolio lines. Consequently, some shares may not be available to the compartment due to the 

fact that the number of foreign shareholders authorised or the total investments permitted for foreign shareholders have been reached. 

Furthermore, the repatriation overseas of foreign investors’ net profits, capital and dividends may be restricted or require the agreement 

of the government concerned. The compartment will only invest if it considers that the restrictions are acceptable. However, no 

guarantee can be given that additional restrictions will not be imposed in the future. 

Liquidation and custody risks 

Shares are held in the custody of a local sub-custodian approved by the Chinese authorities, in an account opened in the name of the 

entity that obtained the QFII status and not in the name of the Fund itself. 

The liquidation and custody systems on the Chinese market are not as sophisticated as those on developed markets. In certain cases, 

the level of these services may not be as high and the control and supervisory authorities not as developed. This can result in risks of 

undue delays in liquidation and to the degradation of cash or securities causing difficulties in terms of liquidity of securities. 

The custodian of the Fund has agreed to contribute its know-how and give due care to the selection, appointment and supervision of its 

correspondents. The custodian of the Fund is not responsible for acts and omissions by the majority of its correspondents in certain 

emerging countries, including China, provided that it has not committed any negligent or deliberate error in the selection, appointment 

and supervision of its correspondents. Furthermore, the custodian of the Fund will not be responsible for any loss whatsoever resulting 

from the liquidation, bankruptcy or insolvency of any correspondent. The responsibility of the custodian bank of the Fund only covers its 

own negligence or serious error. 

In the event of a loss in such an instance, the Fund will assert its rights directly against the issuer or the banking correspondent holding 

the security. 

Currency fluctuation risks 

The majority of the investments made by the compartment and the income received by the compartment are expressed in Chinese 

currency. Investors should be aware of the possibility of the sudden devaluation or revaluation of this currency. 

BNP Paribas Flexi IV - Offering Document - Part II - version of JUNE 2011 27/38

Volatility risks 

In common with other emerging markets, the Chinese market may be faced with relatively low transaction volumes, and endure periods 

of lack of liquidity or considerable price volatility. 

Liquidity risks 

The Chinese market is less liquid than developed markets. Investors should be aware that this is a long-term investment and payments 

and redemptions may not always be made within the expected timescales. 

In view of the risks outlined above and the specific QFII regulations, the Board of Directors of the Management Company may, for long 

or short periods and with immediate effect, have to suspend subscriptions, conversions and redemptions. In this case, the values of the 

net assets will continue to be calculated but for information purposes only. 

Consequently, the compartment is for informed investors and it is recommended that only a portion of their total assets be invested in it. 

Units – “I” Class - currency 

The subfund is exclusively reserved for Well-Informed Investors. 

The units of the subfund are issued in registered form only and exclusively capitalisation: “I” 

ISIN code: LU0376697842The subfund’s currency of expression is USD. 

Valuation day 

Net asset values are calculated in USD and EUR every Friday that is a full bank business day in Luxembourg. If these days are not full 

bank business days in Luxembourg, the calculation will be carried out on the next bank business day in Luxembourg. 

Terms of subscription and redemption 

Requests for subscriptions and redemptions must be submitted directly to the transfer agent. 

In order to be processed at a particular net asset value, requests for subscription and/or redemption must be received by the transfer 

agent before 12:00 CET three bank business days in Luxembourg before the valuation day. 

Taking into account the individual specification of the compartment, the requests for subscription and/or redemption are recorded on a 

waiting list and treated by applying the principle of “first arrived, first served” (the “Principle”). 

Investors should bear in mind that subscription, holding, redemption and transactions involving shares may be subject to additional 

restrictions. These restrictions may have the effect of preventing the investor from freely subscribing, holding, exchanging and/or 

requesting redemption of shares. 

In view of the restrictions imposed by the Chinese authorities in connection with the QFII status, the Board of Directors of the 

Management Company may have to decide that net requests for subscription and redemption should be made once a quarter. 

The Board of Directors of the Management Company may suspend, for a maximum period of 3 months, requests for redemptions which 

are not compensated by subscriptions orders of an equal amount in this compartment or in other compartments which are using the 

QFII status obtained by BNP Paribas Fortis, these redemptions orders will be recorded on a waiting list and treated by applying the 

principle of “first arrived, first served” during and after the 3 month period. 

Subscriptions payments will in principle (subject to the risks outlined above) be made at the latest three bank business days in 

Luxembourg after the valuation day in one of the compartment’s currencies of expression. 

Further to the provisions of section “Investment and repatriation risks”, the payment of redemptions proceeds will in principle be made 

within three bank business days in Luxembourg after the valuation day. 

Requests for subscriptions can only be made in amount and not in number of units. Request for redemptions can be made in amount 

and number of units. 

Conversions from this compartment to other compartment within the Fund and conversely are not authorised. 

Commissions and fees – “I” Class 

Payable by the Unitholder: 

Front-end load: 

- payable to sales agent: maximum: none 

- payable to the compartment: none 

Redemption: 

- payable to sales agent: none 


Payable by the compartment: 

Administration: 0.05% 

Management: 1.00% 

Custody: 0.12% per year 

Taxe d’abonnement: 0.01% (the value of assets represented by units in other UCI is exempt from the taxe d’abonnement 

provided that these units have already been subject to the taxe d’abonnement) 

Additional information 

Listing: none 

Benchmark: Cash Index representing the demand deposit in China (USD) RI 

Launch date for the “I” class: 

Launched on 22 July 2008 at a price of USD 1,000.00 per Unit. 


BNP Paribas Flexi IV Emerging High Yield Currencies Fund 



The compartment invests mainly its assets in government bonds and other debt securities issued in various emerging countries and 

currencies. 

The compartment can also invest in debt securities or other debt linked instruments issued by corporate entities with an acceptable 

rating. 

The compartment may choose to obtain exposure to these eligible investments through the use of financial derivatives instruments. 

The compartment objective is to enable unitholders to benefit from a monthly dividend payment. 

The dividend payment will be made every 16 th of each month or if that day is not a bank business day in Luxembourg, the prior business 

day before the 16 th . 


Investments in Private Equity, non-listed securities, illiquid securities are not authorized, nor are investments in UCI’s, mutual funds or 

trusts. 

The compartment cannot engage in short sales of securities. 



The subfund invests in emerging markets. It may thus display greater than average volatility due to a high degree of concentration, 

greater uncertainty because less information is available, less liquidity, or greater sensitivity to changes in market conditions (social, 

political and economic conditions). In addition, some emerging markets offer less security than the majority of international developed 

markets. For this reason, services for portfolio transactions, liquidation and custody on behalf of funds invested in emerging markets 

may carry greater risk. The Company and investors agree to bear these risks. 

Investments are made on the "Russian Trading System Stock Exchange" (or "RTS Stock Exchange") that brings together a large 

number of Russian issuers and allows nearly exhaustive coverage of the universe of Russian shares. The choice of the RTS Stock 

Exchange makes it possible to benefit from the liquidity of the Russian market without having to use local currency given that the RTS 

Stock Exchange allows processing of all issuers directly in USD. 



The “I” Class is exclusively reserved for Fund of Funds 

The units of the subfund are issued in registered form only and exclusively distribution: “I” 

ISIN code: LU0391068763 

The subfund’s currency of expression is JPY. 

Valuation day 

Net asset values are calculated in JPY on every full bank business day in Luxembourg. 




agent before 12:30 p.m. CET the bank business day in Luxembourg on the valuation day. 


Luxembourg after the valuation day in the currency of expression of the compartment. 

The payment of redemptions proceeds will in principle be made within three bank business days in Luxembourg after the valuation day. 

Requests for subscriptions and redemptions can only be made in amount and not in number of units. 





- payable to sales agent: maximum 5% 


Redemption: 










Listing: none 



The subfund will be open to subscriptions at a price of JPY 1,0000.00 per Unit at a later date to be defined by the Board of 

Directors. 


BNP Paribas Flexi IV BOND MEDIUM TERM INR 



The compartment invests its assets in money market instruments and Indian Governement bonds denominated in Indian Rupee (INR) 

and in cash and deposits denominated in INR or other currencies. 

The maturity of the investments in the portfolio will be maximum 3 years. 



Contrary to item 1 of Appendix 1 “Investment Restrictions” in Part I of this Offering Document, the compartment can invest up to 100% 



There are inherent risks to investing in the compartment. These risks are particularly associated with the emerging market, exchange 

rates, as well as any combination of these and other risks. Some of these risk factors are briefly outlined below. 



investment. 

Emerging Market risk 

The subfund invests in emerging markets. It may thus display greater than average volatility due to a high degree of concentration, 



markets. For this reason, services for portfolio transactions, liquidation and custody on behalf of funds invested in emerging markets 

may carry greater risk. The Company and investors agree to bear these risks. 

Liquidity risk 

There is a risk that investments made in the compartments may become illiquid due to an over-restricted market (often reflected by a 

very broad bid-ask spread or by substantial price movements), or if their “rating” declines or their economic situation deteriorates; 

consequently, it may not be possible to sell or buy these investments quickly enough to prevent or minimize a loss in these 

compartments. 

Exchange risk 

The value of an investment may be affected by fluctuations of the currency of the country in which the investment was made, exchange 

control regulations, the application of tax laws in various countries, including withholding tax, or changes in government or economic or 

monetary policy in the countries concerned. As such, no guarantee can be given that any financial objectives will actually be achieved. 





The subfund’s currency of expression is USD. 

Valuation day 

Net asset values are calculated in USD every Friday that is a full bank business day in Luxembourg. If these days are not full bank 

business days in Luxembourg, the calculation will be carried out on the next bank business day in Luxembourg. 




agent before 4 p.m. one bank business day in Luxembourg before the valuation day. 

Requests for subscription and/or redemption transmitted by fax, e-mail or any other transmission method that requires manual 

processing must reach the transfer agent before 12:00 CET one bank business day before the calculation date. 

Subscriptions payments will in principle (subject to the risks outlined above) be made two bank business days in Luxembourg after the 

valuation day in the compartment’s currency of expression. 

Requests for subscriptions and redemptions can be made in amount and number of units. 






- payable to sales agent: maximum 5% 


Redemption: 





Management 0.75% 





Listing: none 


The subfund will be open to subscriptions at a price of USD 1,000.00 per Unit at a later date to be defined by the Board of 

Directors. 


BNP Paribas Flexi IV BOND CHINA 



The compartment invests its assets in Chinese Governement bonds denominated in Chinese Renminbi (RMB) and in cash and deposits 

denominated in RMB. The compartment will hold ancillary cash in USD. 

The maturity of the investments in the portfolio will be maximum 5 years. Within the limits of applicable laws, the compartment will apply 

a Buy and Hold strategy. 



Contrary to iitem 1 of Appendix 1 “Investment Restrictions” in Part I of this Offering Document, the compartment can invest up to 100% 


The compartment cannot engage in short selling. 


The compartment can invest up to 100% of its assets in cash with one single entity. 

The compartment is not allowed to use Financial Derivatives Instruments.” 










There are inherent risks to investing in the compartment. These risks are particularly associated with the stock market, the bond market, 

exchange rates, credit, market volatility and political risks, as well as any combination of these and other risks. Some of these risk 

factors are briefly outlined below. 



investment. 

Tax risks 

Investment in the compartment involves risks due to fiscal measures that the Chinese government could impose on foreign investors. 

Currently, capital gains realised by a QFII that has no permanent establishment in China are not taxed. Consequently, based on current 

legislation, the compartment does not make provision to cover such a potential tax but it may have to amend this position without prior 

notification in the event that an amendment to the tax legislation were decided or expected. 

For dividends, interest ad potentially other income, the applicable tax is withheld at the source at the moment of payment. Therefore no 

provision is made in the NAV Calculation. 

Market risks 

Potential investors are advised that an investment in the compartment contains a high degree of risk due to the political and economic 

situation of the Chinese market, which could affect the value of the investments. 


Investment in the compartment involves risks due to restrictions imposed on foreign investors, counterparties, greater market volatility 

and a risk of lack of liquidity in certain portfolio lines. Consequently, some shares may not be available to the compartment due to the 

fact that the number of foreign shareholders authorised or the total investments permitted for foreign shareholders have been reached. 

Furthermore, the repatriation overseas of foreign investors’ net profits, capital and dividends may be restricted or require the agreement 

of the government concerned. The compartment will only invest if it considers that the restrictions are acceptable. However, no 

guarantee can be given that additional restrictions will not be imposed in the future. 



entity that obtained the QFII status and not in the name of the Fund itself. 




The custodian of the Fund has agreed to contribute its know-how and give due care to the selection, appointment and supervision of its 

correspondents. The custodian of the Fund is not responsible for acts and omissions by the majority of its correspondents in certain 

emerging countries, including China, provided that it has not committed any negligent or deliberate error in the selection, appointment 

and supervision of its correspondents. Furthermore, the custodian of the Fund will not be responsible for any loss whatsoever resulting 

from the liquidation, bankruptcy or insolvency of any correspondent. The responsibility of the custodian bank of the Fund only covers its 

own negligence or serious error. 

In the event of a loss in such an instance, the Fund will assert its rights directly against the issuer or the banking correspondent holding 

the security. 


Currency fluctuation risks 

The majority of the investments made by the compartment and the income received by the compartment are expressed in Chinese 

currency. Investors should be aware of the possibility of the sudden devaluation or revaluation of this currency. 







In view of the risks outlined above and the specific QFII regulations, the Board of Directors of the Management Company may, for long 

or short periods and with immediate effect, have to suspend subscriptions, conversions and redemptions. In this case, the values of the 

net assets will continue to be calculated but for information purposes only. 

Consequently, the compartment is for informed investors and it is recommended that only a portion of their total assets be invested in it. 





The compartment’s currency of expression is USD. 

Valuation day 

Net asset values are calculated in USD every Friday that is a full bank business day in Luxembourg. If these days are not full bank 

business days in Luxembourg, the calculation will be carried out on the next bank business day in Luxembourg. 




agent before 2:00 pm CET three bank business days in Luxembourg before the valuation day. 









are not compensated by subscriptions orders of an equal amount in this compartment or in other compartments which are using the 




Luxembourg after the valuation day in the compartment’s currency of expression. 



Requests for subscriptions can be made in amount and in number of units. Request for redemptions can be made in amount and 

number of units. 







Redemption: 










Listing: none 


The subfund will be open to subscriptions at a price of USD 1,000.00 per Unit at a later date to be defined by the Board of 

Directors. 


BNP Paribas Flexi IV Planetary China -HFT 



This subfund invests in shares in the capital of companies based in the People’s Republic of China, or in divisions of shares, fully or 

partially paid up, in registered or bearer form, issued by such companies and listed on the Shanghai or Shenzhen Stock Exchange, or in 

cash and cash equivalents denominated in RMB. On an ancillary basis, it may also invest in cash and cash equivalents denominated in 

USD. 

The subfund will not engage in short selling, securities lending and securities borrowing. 

The subfund will not engage in borrowing. 










There are inherent risks to investing in this subfund. These risks are particularly associated with the stock market, market volatility and 

political risks, as well as any combination of these and other risks. Some of these risk factors are briefly outlined below. 



investment. 

Taxation Risk 

Investment in this subfund involves risks due to fiscal measures that the Chinese government could impose on foreign investors. 

Currently, capital gains realised by a QFII that has no permanent establishment in China are not taxed. However, after taking into 

account the risk of a modification of the current legislation by the Chinese government that would impose such capital gain taxation with 

retro-active effect, the subfund constitutes a provision in order to cover a possible taxation. The risk and the subsequent provision will 

be re-assessed and adapted regularly. For dividends, interests and potentially other income, the applicable tax is withheld at the source 

at the moment of payment. Therefore, no provision is made in the NAV Calculation. 

Market risk 

As long as this subfund will be invested, its Net Asset Value (NAV) is exposed to market fluctuations, and its value can go up as well as 

down. The portfolio of securities that the subfund invests in would be exposed to price changes on a day-to-day basis. These price 

changes may occur due to instrument-specific factors as well as general macroeconomic conditions. 

The subfund may also be subject to price volatility due to factors such as interest sensitivity, market perception or the creditworthiness 

of the issuer and general market liquidity. 


Investment in this subfund involves risks due to restrictions imposed on foreign investors, counterparties, greater market volatility and a 

risk of lack of liquidity in certain portfolio lines. 

Consequently, some shares may not be available to the subfund due to the fact that the number of foreign shareholders authorised or 

the total investments permitted for foreign shareholders have been reached. Furthermore, the repatriation overseas of foreign investors’ 

net profits, capital and dividends may be restricted or require the agreement of the government concerned. The Company will only 

invest if it considers that the restrictions are acceptable. However, no guarantee can be given that additional restrictions will not be 

imposed in the future. 

Emerging Markets Risk 

The sub-fund invests in emerging markets. It may thus display greater than average volatility risk due to a high degree of concentration, 



markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging 

markets may carry greater risk. 



entity that obtained the QFII status and not in the name of the Company itself. 




The custodian has agreed to contribute its know-how and give due care to the selection, appointment and supervision of its 

correspondents. The custodian is not responsible for acts and omissions by the majority of its correspondents in certain emerging 

countries, including China, provided that it has not committed any negligent or deliberate error in the selection, appointment and 

supervision of its correspondents. Furthermore, the custodian will not be responsible for any loss whatsoever resulting from the 

liquidation, bankruptcy or insolvency of any correspondent. The responsibility of the custodian bank only covers its own negligence or 

serious error. 

In the event of a loss in such an instance, the Company will assert its rights directly against the issuer or the banking correspondent 

holding the security. 


Currency Fluctuation Risk 

The majority of the investments made by the subfund and the income received by the subfund are expressed in Chinese currency. 

Investors should be aware of the possibility of the sudden devaluation or revaluation of this currency. 







In view of the risks outlined above and the specific QFII regulations, the Board of Directors may, for long or short periods and with 

immediate effect, have to suspend subscriptions, conversions and redemptions. In this case, the values of the net assets will continue to 

be calculated but for information purposes only. 

Consequently, this subfund is for informed investors and it is recommended that only a portion of their total assets be invested in it. 




The subfund’s currency of expression is USD. 

ISIN code 

: LU0626273287 

Valuation day 

Net asset values are calculated in USD and EUR each bank business day in Luxembourg, provided that the financial markets 

corresponding to a significant proportion (approximately 50%) of the assets of the subfund were open at least one day after the day that 

served as the calculation basis for the preceding NAV. 


Orders will be processed exclusively based on the net asset value calculated each Friday, or on the following NAV calculation day if 

Friday is not a business day. They must be received by 2p.m three bank business days in Luxembourg preceding the calculation day for 

that NAV. Orders received after this deadline will be processed at the next order processing day. 



agent before 2 p.m. Luxembourg time three bank business days in Luxembourg before the valuation day. 









are not compensated by subscriptions orders of an equal amount, in this compartment or in other compartments which are using the 




Luxembourg after the valuation day in one of the compartment’s currencies of expression. 



Requests for subscription and for redemptions can be made in amount and number of units. 





- payable to sales agent: maximum: none 


Redemption: 




Administration: up to 0.125% per year 

Custody: up to 0.12% per year 






Listing: 

None 

Launch date: 

The first subscription date in the subfund is on 28 June 2011. The first NAV is on 1st July 2011 and is set at a price of USD 1,000.00 

per Unit for “I” Share

FORTIS L FUND - BNP Paribas Investment Partners

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