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Investment in the Portfolio entails certain risks. Investment returns and principal value of the Portfolio will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Some of the principal risks of investing in the Portfolio include:
Strategy
Seeks long-term growth of capital by:
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Investing in a global universe of companies aligned to diverse set of climate change solutions derived from the United Nations Sustainable Development Goals.
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Using top-down research to identify climate solutions that offer differentiated opportunities for secular growth such as clean energy solutions, resource efficiency solutions and transportation solutions.
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Using a disciplined bottom-up research process to assess a company’s exposure to environmental, social, and corporate governance (“ESG”) factors as well as prospective earnings growth, valuation, and quality of management.
Portfolio Management Team
Investment Risks to Consider
These and other risks are described in the Portfolio’s prospectus
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China equities risk: the China Connect Scheme. A Portfolio of the Fund may invest directly or indirectly in eligible China A shares (“China Connect Securities”) through the China Connect Scheme, including investment in financial instruments and other market access products linked to China Connect Securities. Please read the Prospectus for full details of this.
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Counterparty and custody risk: The risk that the counterparty could become insolvent, unwilling or unable to meet its obligations, resulting in payments being delayed, reduced or eliminated.
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Currency risk: Investments may be denominated in one or more currencies which are different from the Portfolio’s base currency. Currency movements in the investments may significantly affect the net asset value of the Portfolio.
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Derivatives risk: The Portfolio may include financial derivative instruments. These may be used to obtain, increase or reduce exposure to underlying assets and may create gearing; their use may result in greater fluctuations of the net asset value.
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Emerging-markets risk: Where the Portfolio invests in emerging markets, these assets are generally smaller and more sensitive to economic and political factors, and may be less easily traded, which could cause a loss to the Portfolio.
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Equity securities risk: The value of equity investments may fluctuate in response to the activities and results of individual companies or because of market and economic conditions. These investments may decline over short- or long-term periods.
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Hedging risk: Hedging may be used when managing the Fund, as well as for currency hedge share classes to eliminate the potential for gains along with the risk for loss. Measures designed to offset specific risks may work imperfectly, may not be feasible at times or may fail completely. As there is no segregation of liabilities between the share classes, there is a remote risk that, under certain circumstances, currency hedging transactions could result in liabilities with might affect the NAV of the other share classes and their assets may be used to cover those liabilities incurred.
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Leverage risk: The Fund implements a high use of leverage which may reach 400% of the total NAV of the Fund. Leverage presents opportunities for increasing both returns and losses because any event which affects the value of an investment is magnified to the extent leverage is employed.
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Liquidity risk: The risk that arises when adverse market conditions affect the ability to sell assets when necessary. Reduced liquidity may have a negative impact on the price of the assets.
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Market risk: Prices and yields of many securities can change frequently, sometimes with significant volatility, and can fall, based on a wide variety of factors, for example government policy or change in technology. he effects of market risk can be immediate or gradual, short-term or long-term, or narrow or broad.
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Real estate investment trust (REIT) risk: Investing in equity REITs may be affected by changes in the value of the underlying property owned by the REITS, while mortgage REITs may be affected by the quality of any credit extended. REITS depend on management skills, are not diversified, subject to heavy cashflow dependency, default by borrowers and self-liquidation and subject to interest-rate risks.
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Securities lending risk: If a Portfolio lends securities, it takes on counterparty risk with respect to the borrower as well as the risk that any collateral from the counterparty may prove insufficient to cover all costs and liabilities incurred.
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Small/mid-cap equities risk: Equity securities (primarily stocks) of small and mid-size companies can be more volatile and less liquid than equities of larger companies. Small and mid-size companies often have fewer financial resources, shorter operating histories and less diverse business lines and as a result can be at greater risk of long-term or permanent business setbacks. Initial public offerings (IPOs) can be highly volatile and can be hard to evaluate because of a lack of trading history and relative lack of public information.