Pictet Funds Hong Kong

Transactions with Connected Persons and Soft Commissions
Cash forming part of the property of the Fund may be placed as deposits with the Custodian, the Management
Company, the Managers, the Investment Advisers or with any connected persons of these companies (being
an institution licensed to accept deposits) as long as that institution pays interest thereon at no lower rate than
is, in accordance with normal banking practice, the commercial rate for deposits of the size of the deposit in
question negotiated at arm’s length.
Money can be borrowed from the Custodian, the Management Company, the Managers, the Investment
Advisers or any of their connected persons (being a bank) so long as that bank charges interest at no higher
rate, and any fee for arranging or terminating the loan is of no greater amount than is in accordance with
normal banking practice, the commercial rate for a loan of the size and nature of the loan in question
negotiated at arm’s length.
Any transactions between the Fund and the Management Company, the Managers, the Investment Advisers or
any of their connected persons as principal may only be made with the prior written consent of the Custodian.
All transactions carried out or on behalf of the Fund must be at arm’s length and executed on the best available
terms. Transactions with persons connected to the Management Company, the Manager or the Investment
Adviser may not account for more than 50% of the Fund’s transactions in value in any one financial year of the
Fund.
The Management Company, the Manager, the Investment Adviser or any of their connected persons will not
receive cash or other rebates from brokers or dealers in respect of transactions for the Fund.
Soft commissions in the form of the provision of goods or services by brokers are permitted if such goods or
services are of demonstrable benefit to the Fund. For the avoidance of doubt, examples of goods and services
which are not permitted include travel, accommodation, entertainment, general administrative goods or
services, general office equipment or premises, membership fees, employee salaries or direct money payments.
The Management Company, the Managers, the Investment Advisors and any of their connected persons (as
defined in the SFC Code on Unit Trusts and Mutual Funds) shall not retain the benefit of any cash commission
rebate paid or payable from brokers or dealers in respect of any business placed for or on behalf of the Fund.
Any such cash commission rebate received from any such brokers or dealers shall be for the account of the
Fund. Details of any such commissions will be disclosed in the annual and semi-annual report and accounts of
the Fund. The execution of transactions will be consistent with best execution standards and brokerage rates
will not be in excess of customary institutional full-service brokerage rates.
UCITS IV
As part of the Fund’s adoption of UCITS IV, the Directors appointed Pictet Funds (Europe) S.A. to act as the
management company of the Fund pursuant to the Management Company agreement between the Fund and
Pictet Funds (Europe) S.A. as may be amended from time to time. Pictet Funds (Europe) S.A. was incorporated
on 14 June 1995 for an unlimited period. Its registered office is at 15 Avenue J.F. Kennedy, L-1855
Luxembourg.
In addition, for so long as the Fund remains authorised by the SFC in Hong Kong and except with the prior
SFC’s approval, the Management Company will delegate the investment management functions in respect of
the compartments of the Fund authorised by the SFC to the Managers specified below.
Management Activity
With the exception of PICTET – US Equity Growth Selection, the Management Company has delegated the
investment management functions of the SFC-authorised compartments to Pictet Asset Management Ltd,
which has in turn sub-delegated the investment management functions of various compartments as set out
below to Pictet Asset Management S.A (as sub-manager).
For PICTET – US Equity Growth Selection, the Management Company has delegated the investment
management functions of the compartment to Waddell & Reed Investment Management Company.
For the purposes of the Fund’s Hong Kong offering documents, any reference to the “Manager” should be
interpreted, when appropriate, as also referring to the sub-manager(s).
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