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Aberdeen Global Funds - Fundsupermart.com

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exchange contracts, options and other derivative transactions in order to preserve the value of the hedged Share<br />

Class currency against the base currency of the Fund. Where undertaken, the effects of the hedging will be<br />

reflected in the Net Asset Value of the hedged Share Class. Any expenses arising from such hedging<br />

transactions will be borne by the Share Class in relation to which they have been incurred and will thereby<br />

impact on the performance of that Share Class. Where such hedging is undertaken it may substantially protect<br />

investors against a decrease in the value of the base currency of the Fund relative to the hedged currency but<br />

may also preclude investors from benefiting from an increase in the value of the base currency of the Fund.<br />

Smaller Companies <strong>Funds</strong><br />

The smaller <strong>com</strong>panies equity <strong>Funds</strong> may fluctuate in value more than other <strong>Funds</strong> because of the greater<br />

volatility of share prices of smaller <strong>com</strong>panies.<br />

Technology <strong>Funds</strong><br />

The technology and new media industries are at a very early stage of development, and many of the <strong>com</strong>panies<br />

in these industries have a very short history. Rapid changes in technology could render obsolete the products<br />

and services offered by the <strong>com</strong>panies in which the <strong>Aberdeen</strong> <strong>Global</strong> - Technology Fund invests, and cause<br />

severe or <strong>com</strong>plete declines in the prices of the securities of those <strong>com</strong>panies.<br />

Ethical <strong>Funds</strong><br />

Whilst the Investment Manager will seek to influence the management of investee <strong>com</strong>panies and to enhance<br />

the social responsibility of the investee <strong>com</strong>pany in its operation, as a minority shareholder, the<br />

Investment Manager's ability to bring about change in the investee <strong>com</strong>pany's stance may be limited and there<br />

can be no assurance of such efforts being successful.<br />

Investing in High Yield Bonds<br />

High yield bonds are regarded as being predominately speculative as to the issuer’s ability to make payments of<br />

principal and interest. Investment in such securities involves substantial risk. Issuers of high yield debt securities<br />

may be highly leveraged and may not have available to them more traditional methods of financing. An<br />

economic recession may adversely affect an issuer’s financial condition and the market value of high yield debt<br />

securities issued by such entity. The issuer’s ability to service its debt obligations may be adversely affected by<br />

specific issuer developments, or the issuer’s inability to meet specific projected business forecasts, or the<br />

unavailability of additional financing. In the event of bankruptcy of an issuer, <strong>Aberdeen</strong> <strong>Global</strong> may experience<br />

losses and incur costs.<br />

Holding Securities Overseas<br />

Securities held with a local correspondent or clearing / settlement system or securities correspondent<br />

(“Securities System”) may not be as well protected as those held within Luxembourg. In particular, losses may<br />

be incurred as a consequence of the insolvency of the local correspondent or Securities System. In some markets,<br />

the segregation or separate identification of a beneficial owner’s securities may not be possible or the practices<br />

of segregation or separate identification may differ from practices in more developed markets.<br />

Nominee Arrangement<br />

By investing in the <strong>Funds</strong> through HSBC Institutional Trust Services (Asia) Limited, you will have a direct<br />

contractual relationship with HSBC Institutional Trust Services (Asia) Limited and will not have any direct<br />

contractual rights against <strong>Aberdeen</strong> <strong>Global</strong> and/or the <strong>Global</strong> Distributor. HSBC Trustee Institutional Trust<br />

Services (Asia) Limited will be responsible for liaising with <strong>Aberdeen</strong> <strong>Global</strong> and/or the <strong>Global</strong> Distributor on<br />

your behalf should you have any queries or <strong>com</strong>plaints in relation to your shareholdings.<br />

HSBC Institutional Trust Services (Asia) Limited in its capacity as the nominee for shareholders of <strong>Aberdeen</strong><br />

<strong>Global</strong> intends to resign and transfer all of its holdings in the Shares of <strong>Aberdeen</strong> <strong>Global</strong> to <strong>Aberdeen</strong> Nominees<br />

Services Limited. Such transfer will be<strong>com</strong>e effective on 26 March 2007. RBC Dexia Trust Services Hong<br />

Kong Limited will be appointed as administration agent to provide administrative services to <strong>Aberdeen</strong> <strong>Global</strong>.<br />

This change will not affect the operation of <strong>Aberdeen</strong> <strong>Global</strong> or the level of fees payable by <strong>Aberdeen</strong> <strong>Global</strong>.<br />

Emerging Markets<br />

In emerging markets, in which some of the <strong>Funds</strong> will invest, the legal, judicial and regulatory infrastructure is<br />

still developing and there is much legal uncertainty both for local market participants and their overseas<br />

counterparts. Some markets carry significant risks for investors who should therefore ensure that, before<br />

investing, they understand the relevant risks and are satisfied that an investment is suitable. The following<br />

9

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