Prospectus - April 2013 - Pictet Funds Hong Kong

Transactions with Connected Persons and Soft CommissionsCash forming part of the property of the Fund may be placed as deposits with the Custodian, the ManagementCompany, the Managers, the Investment Advisers or with any connected persons of these companies (beingan institution licensed to accept deposits) as long as that institution pays interest thereon at no lower rate thanis, in accordance with normal banking practice, the commercial rate for deposits of the size of the deposit inquestion negotiated at arm’s length.Money can be borrowed from the Custodian, the Management Company, the Managers, the InvestmentAdvisers or any of their connected persons (being a bank) so long as that bank charges interest at no higherrate, and any fee for arranging or terminating the loan is of no greater amount than is in accordance withnormal banking practice, the commercial rate for a loan of the size and nature of the loan in questionnegotiated at arm’s length.Any transactions between the Fund and the Management Company, the Managers, the Investment Advisers orany 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 availableterms. Transactions with persons connected to the Management Company, the Manager or the InvestmentAdviser may not account for more than 50% of the Fund’s transactions in value in any one financial year of theFund.The Management Company, the Manager, the Investment Adviser or any of their connected persons will notreceive 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 orservices are of demonstrable benefit to the Fund. For the avoidance of doubt, examples of goods and serviceswhich are not permitted include travel, accommodation, entertainment, general administrative goods orservices, 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 (asdefined in the SFC Code on Unit Trusts and Mutual Funds) shall not retain the benefit of any cash commissionrebate 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 theFund. Details of any such commissions will be disclosed in the annual and semi-annual report and accounts ofthe Fund. The execution of transactions will be consistent with best execution standards and brokerage rateswill not be in excess of customary institutional full-service brokerage rates.UCITS IVAs part of the Fund’s adoption of UCITS IV, the Directors appointed Pictet Funds (Europe) S.A. to act as themanagement company of the Fund pursuant to the Management Company agreement between the Fund andPictet Funds (Europe) S.A. as may be amended from time to time. Pictet Funds (Europe) S.A. was incorporatedon 14 June 1995 for an unlimited period. Its registered office is at 15 Avenue J.F. Kennedy, L-1855Luxembourg.In addition, for so long as the Fund remains authorised by the SFC in Hong Kong and except with the priorSFC’s approval, the Management Company will delegate the investment management functions in respect ofthe compartments of the Fund authorised by the SFC to the Managers specified below.Management ActivityWith the exception of PICTET – US Equity Growth Selection, the Management Company has delegated theinvestment 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 outbelow to Pictet Asset Management S.A (as sub-manager).For PICTET – US Equity Growth Selection, the Management Company has delegated the investmentmanagement 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 beinterpreted, when appropriate, as also referring to the sub-manager(s).17