Prospectus - April 2013 - Pictet Funds Hong Kong

consequences arising from the potential European crisis which may adversely affect the performance andvalue of the compartments. In these circumstances, it is possible that a large number of shareholders coulddecide to submit applications to redeem the shares of the compartments at the same time.Asset allocation riskThe portfolio of some of the compartments may be allocated into different asset classes, and such allocationmay change over time depending on the manager’s view on market opportunities. Therefore, theperformance of the compartment is dependent on the success of the asset allocation employed by thecompartment, and there is no assurance that it will be successful. As such, there is no assurance that theinvestment objectives will be achieved. As a result, this may have an adverse impact on the performance of thecompartment.Investment riskThe investment portfolio of each of the compartments may fall in value and shareholders’ investment in thecompartments may suffer losses.Additional disclosuresAdditional disclosure for PICTET – Global Megatrend Selection (“Global Megatrend Selection”)Investors should note that Global Megatrend Selection will invest in a palette of securities reflectinginvestments in Pictet thematic open-ended compartments of the Fund (the “Thematic Compartments”). TheFund currently offers 9 thematic compartments namely PICTET – Digital Communication, PICTET – Biotech^,PICTET – Premium Brands, PICTET – Water, PICTET – Generics^, PICTET – Security, PICTET – Clean Energy,PICTET – Timber PICTET – Agriculture. Investors should refer to the relevant Annexes to the Prospectus fordetails of these 9 thematic compartments.Global Megatrend Selection aims at replicating, on an equal-weighted basis among the thematic investments,the investments of these compartments by investing in the same securities, reflecting the investments of eachof these Thematic Compartments. The prices of the securities invested by Global Megatrend Selection in therelevant themes may fluctuate from time to time and thus, the weighting of the underlying themes may deviatefrom the equal weighting among the Thematic Compartments. Hence, the weighting of the ThematicCompartments will normally be rebalanced monthly so as to maintain the equal-weighted basis among theThematic Compartments.The Fund may launch new thematic compartments in future, Global Megatrend Selection will invest insecurities invested by the relevant themes. In case if any of the Thematic Compartments is closed, GlobalMegatrend Selection will cease to invest in the theme of such compartment and will continue to invest in thethemes of the remaining Thematic Compartments.Hence, the number of the investment themes that Global Megatrend Selection will invest in will change fromtime to time (i.e. more or less than 9 investment themes).Additional disclosure for PICTET – Environmental Megatrend Selection (“Environmental MegatrendSelection”)Investments of Environmental Megatrend Selection are made in accordance with the compartment’s fourcorresponding open-ended environmental theme compartments:Agriculture: companies operating in the agriculture value chain; this includes the fields of production,processing and supply, as well as the production of agricultural equipment.Clean Energy: companies that contribute to the reduction of carbon emissions and the use of clean energy andincludes companies that are active in the domains of cleaner resources and infrastructures; equipment andtechnologies that reduce carbon emissions; the generation, transmission and distribution of cleaner energyand energy efficiency; and cleaner and more energy-efficient transportation and fuels.Timber: companies whose businesses include financing, planting and managing forests and wooded regionsand/or the processing, producing and distribution of wood for construction and other services and productsderived from wood contained in the silviculture value chain.Water: companies operating in the water sector which include, but are not limited to, water productioncompanies, water conditioning and desalination companies, water suppliers and companies specialising in thetreatment of waste water.Each of the four themes has a strategically fixed portfolio weighting. Currently, the portfolio weighting is atone third for Water, one third for Clean Energy, one sixth for Timber, and one sixth for Agriculture. Theseportfolio weightings may be subject to modification in the future. The four themes will be rebalanced to theirstrategically fixed weighting at the end of each month.^ This compartment is not authorised by the SFC9