Saturna Global Sustainable 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.

Non-compliance Risk: 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 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 non-compliance may force the Manager to sell down securities of the Fund at a loss to rectify the non-compliance. 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 has been put in place by the Manager.

Operational Risk: Operational risk includes risks that arise from internal process of 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 Unit Holder's investment negatively.

The Manager and Trustee have various control mechanisms at different levels throughout the organisation to monitor that the operational policy and procedures are being followed. Operation failure may affect the Unit Holder's investment.

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. Midsize companies may have more limited financial resources, products, or services, and tend to be more sensitive to changing economic or market conditions. The value of a particular Shariah-compliant equity security 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. To mitigate this risk, the Manager will conduct rigorous fundamental analysis of the Shariah-compliant equity securities.

Large and Midsize Company Risk: Although the Fund may invest in companies of all sizes, the Funds tend to favor larger companies and, to a lesser extent, midsize companies. Larger companies may have slower rates of growth as compared to smaller, fastergrowing companies. Midsize companies may have more limited financial resources, products, or services, and tend to be more sensitive to changing economic or market conditions.

Concentration Risk: Investors should be aware of the Fund's possible concentration in a particular industry when investing in this Fund. Should the Fund's investments be concentrated in an industry 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. To maintain diversification and reduce concentration risk, the Fund may invest no more than 25% of the Fund's NAV in any one industry. As investments in major market industries, such as banking and financials, are not available to Islamic investors, the Fund may be subject to a higher level of risk than a more diversified portfolio.

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. For example, the deteriorating economic condition of such countries may adversely affect the value of the investments undertaken by the Fund in those affected countries. This in turn may cause the Net Asset Value of the Fund or prices of Units to fall. To maintain global diversification and reduce country risk, the Fund may invest no more than 50% of the Fund's NAV in any one country.

Currency Risk: As the investments of the Fund may be denominated in currencies other than the base currency of the Fund, 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. Investors should be aware that if the currencies in which the investments are denominated depreciate against the base currency, this will have an adverse effect on the NAV of the Fund in the base currency and vice versa. Investors should note that any gains or losses arising from the fluctuation in the exchange rate might further increase or decrease the returns of the investment.

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 non-compliant in the periodic review of the equities by the Shariah Advisory Council of the Securities Commission Malaysia, the Shariah Advisor or the Shariah boards of the relevant Islamic indices. If this occurs, the Manager will take the necessary steps to dispose such equities. There may be opportunity loss to the Fund due to the Fund not being allowed to retain the excess capital gains derived from the disposal of the Shariah non-compliant equities. The value of the Fund may be adversely affected when the Manager disposes of portfolio investments in unfavourable market conditions.

Liquidity Risk: Liquidity risk refers to a risk where the Fund need to liquidate assets in order to meet payment obligations in a timely manner. Liquidity risk usually results from large redemptions or illiquid assets or a combination of both. If the Fund holds assets that are illiquid or have to sell assets at discount to its fair value, this would adversely affect the NAV of the Fund and the investment of the Unit Holders.

Sustainability Risk: Sustainability risk means an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential negative impact on the value of the investment. This may include the risks stemming from investing in companies that their business may be affected by climate change, natural source depletion, environmental degradation, human rights abuse, bribery, corruption and social and employee matters. If a sustainability risk associated with an investment of the Fund materialises, it could lead to the loss in value of an investment. Through the integration of high-level ESG analysis within the investment process and the focus on limiting downside risk, the Manager seeks to limit the impact of sustainability risk on Fund returns.

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 web page 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.