Saturna ASEAN Equity Fund

Market Risk: Market risk refers to the possibility that an investment will lose value because of a general decline in financial markets, due to economic, political and/or other factors, which will result in a decline in the Fund's Net Asset Value.

Noncompliance Risk: The Fund, the Manager and/or the Trustee may not comply with the provisions set out in the Deed or the law that governs the Fund. The Fund, the Manager and/or Trustee may not comply with operating procedures whether by oversight or by omission, or the Manager may act fraudulently or dishonestly. Such noncompliance may force the Manager to sell down securities of the Fund at a loss to rectify the noncompliance and in turn may adversely affect the Unit Holders' investment. To mitigate this risk, the Manager has put in place internal controls to ensure its continuous compliance with laws, rules and regulations, prescribed practices, and the Manager's internal policies and procedures.

Performance Risk: A failure of the Manager to display the requisite experience and expertise in making investment decisions for the Fund may jeopardize the Fund's performance. There is no guarantee the Fund will meet its investment objective of long-term capital growth. Investors should be aware that no guarantee is given that they will receive returns on their investments, or that investors will get back their initial amount invested in full. In order to mitigate this risk, the implementation of internal controls and a structured investment process and operational procedures have been put in place by the Manager.

Operational Risk: Operational risk includes risks that arise from the internal process of the organisation. These may result from inadequacies or failure in processes, controls, or projects due to fraud, unauthorised activities, error, omission, inefficiency, systems failure, or from external events. Operational risk may affect the Unitholder's investment negatively.

Equity Securities Risk: Shariah-compliant equity securities may experience significant volatility in response to economic or market conditions or adverse events that affect a particular industry, sector, or company. The value of particular Shariah-compliant equity securities may also fluctuate in response to activities of individual companies. This risk can adversely affect the prices of equities, which would negatively impact the performance of the Fund.

Country Risk: Investments of the Fund in any countries may be affected by changes in the economic and political climate, restriction on currency repatriation, or other developments in the law or regulations of the countries in which the Fund invests.

Currency Risk: As the investments of the Fund may be denominated in currencies other than the base currency, any fluctuation in the exchange rate between the base currency and the currencies in which the investments are denominated may have an impact on the value of these investments.

Price Level Risk: Inflation may erode the value of long-term contracts entered into by companies and may adversely affect companies that cannot raise prices at the same pace their costs increase. If companies' profitability decreases, the value of their equity shares will go down, thus affecting the value of Unitholders' money invested in the Fund and the value of any returns thereof negatively; the opposite is true as well.

Deflation, being the decrease in the general price level of goods and services, may increase the relative value of debt and cash. Economies in recession have higher risk of deflation, which can encourage the hoarding of cash and deepen the recession. For example, during a downturn in the market, companies become more conservative with their cash and do not spend on capital expenditures, increase of staff, etc. (cash hoarding). This action can result in a more drawn out recession (deepening); as companies spend less on capital expenditure, other companies' sales go down and the value of equities of the companies go down as well, thus affecting the Fund negatively.

Concentration Risk: Investors should be aware of the Fund's possible concentration in a particular sector when investing in this Fund. Should the Fund's investments be concentrated in a sector that underperforms the general market, it could cause the Fund's overall results to suffer more than if the Fund was exposed to a less concentrated portfolio. The Fund may therefore be subject to a higher level of risk than a more diversified portfolio.

Active Investment Risk: The Fund's active investment strategy means the number and weights of holdings in the Fund's portfolio may deviate significantly from the components of the benchmark, which may result in the Fund's performance failing.

Reclassification of Shariah Status Risk: This risk refers to the risk that the currently held Shariah-compliant equities in the Fund may be reclassified as Shariah-noncompliant. The value of the Fund may be adversely affected when the Manager disposes of portfolio investments in unfavourable market conditions.

The above list of risks should not be considered as exhaustive list. While every care will be taken by the Manager to mitigate the risk, Investors should be aware that investments in the Fund may be exposed to other risks of an exceptional nature from time to time. Please refer to the Prospectus under "Risk Factors" for further details on risk.

This webpage only highlights the key features and risks of the Fund. Investors are advised to request, read and understand the Prospectus of the Fund before deciding to invest.