First State offers two fund ranges ("the Funds") for sale in the United Kingdom; the First State Investments ICVC and the First State Global Umbrella Fund plc.
First State Investments ICVC
First State Investments ICVC ('FSI') is an investment company with variable capital incorporated in England and Wales with registered number IC000023. FSI is structured as an umbrella company. Funds may be established from time to time with the approval of the Financial Services Authority ('FSA') and the agreement of the Depositary ('funds', and each of them a 'fund'). Each fund may issue different classes of share and within each class there may be different types of share.
The Authorised Corporate Director ('ACD') of FSI is First State Investments (UK) Limited. The ACD is responsible for managing and administering the affairs of FSI in compliance with the handbook and guidance published by the FSA from time to time ('FSA Rules').
The Depositary of FSI is the Royal Bank of Scotland plc. The Depositary is responsible for the safekeeping of all the scheme property of FSI and has a duty to take reasonable care to ensure that FSI is managed in accordance with the provisions of the FSA Rules relating to the pricing of, and dealing in, shares and relating to the income of the funds.
The ACD has appointed First State Investment Management (UK) Limited ('Investment Manager') under an investment management agreement ('IMA') to provide investment management and advisory services to the ACD. The Investment Manager has full power and authority under the IMA to delegate any and all of its discretions and powers to any other person, provided that the Investment Manager shall remain fully responsible to the ACD for the acts and omissions of any such person.
First State Global Umbrella Fund plc
First State Global Umbrella Fund plc (FSGU) is an open-ended investment company with variable capital established under the laws of Ireland pursuant to the Companies Acts, 1963 to 2003 and incorporated on 18 June 1998, under registration number 288284. FSGU is regulated by the Irish Financial Services Regulatory Authority (‘IFSRA’) pursuant to the European Communities (Undertakings in Collective Investments in Transferable Securities) Regulations 2003 and was authorised on 23 June 1998. FSGU is a scheme recognised in the United Kingdom under section 264 of the Financial Services and Markets Act, therefore is an authorised person and as such is regulated by the Financial Services Authority. Each fund may issue different classes of share and within each class there may be different types of share.
FSGU has delegated the powers of determining investment policy and investment management of each fund to First State Investments (Hong Kong) Limited the 'FSGU Investment Manager' pursuant to an Investment Management Agreement. The FSGU Investment Manager may appoint one or more Sub-Investment Managers to manage the assets of a fund pursuant to a Sub-Investment Management Agreement. The FSGU Investment Manager remains responsible for the acts and omissions of the Sub-Investment Managers and any other delegate as if such acts or omissions were its own.
HSBC Institutional Trust Services (Ireland) Limited (the “Custodian”) was appointed as custodian of FSGU pursuant to a Custodian Agreement. The main activity of the Custodian is to act as trustee and custodian of the assets of collective investment schemes.
HSBC Securities Services (Ireland) Limited (the “Administrator”) was appointed as administrator of FSGU pursuant to an Administration Agreement. The Administrator is a limited liability company incorporated under the laws of Ireland on the 29 November 1991. It is part of the HSBC Group and specialises in the administration of investment funds.
Registration
The Funds may be also registered in various European jurisdictions and may therefore be subject to local requirements.
The shares in the Funds have not been and will not be registered under the United States Securities Act 1933. The information in this website is not intended for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States of America to or for the benefit of any United States persons being residents in the United States of America.
Advice
First State recommends that investors should seek independent financial advice before investing in the funds. Potential investors should consider the following risk factors before investing.
General
Investments in the Funds are subject to normal market fluctuations and other risks inherent in investing in securities. There can be no assurance that any appreciation in value of investments will occur. The value of investments and the income derived from them may fall as well as rise and investors may not recoup the original amount invested in the Funds. The Funds should be considered long-term investments. There is no assurance that the investment objectives of any sub fund of the Funds (a 'Sub Fund') will actually be achieved. It is important to note that past performance is not necessarily a guide to future returns or growth.
Currency exchange rates
Depending on an investor's currency of reference, currency fluctuations may adversely affect the value of an investment. Investments for some sub funds will be made in assets denominated in various currencies and exchange rate movements may affect the value of an investment favourably or unfavourably, separately from the gains or losses otherwise made by such investments.
Single Sector
Investments in single sector funds, such as (but without prejudice to the foregoing generality) the First State Global Resources Fund, offer the possibility of higher returns, but may involve a higher degree of risk.
Liquidity Risk
Not all securities invested in by a sub fund will be listed or rated and consequently liquidity may be low. Moreover, the accumulation and disposal of holdings in some investments may be time-consuming and may need to be conducted at unfavourable prices.
Emerging markets
Investment in emerging markets may involve a higher risk than investment in more developed markets. Investors should consider whether or not an investment in sub funds which invest in such markets is either suitable for or should constitute a substantial part of an investor's portfolio.
China market risk
The value of a sub fund's assets may be affected by uncertainties such as political developments, changes in government policies, taxation, currency repatriation restrictions, and restrictions on foreign investment in China. Accounting, auditing and reporting standards in China may not provide the same degree of investor protection or information to investors as would generally apply in more established securities markets. Furthermore, the legislative framework in China for the purchase and sale of investments and in relation to beneficial interests in those investments is relatively new and untested.
Equity linked note risk
Equity linked notes may not be listed and are subject to the terms and conditions imposed by their issuers. These terms may lead to delays in implementing an investment manager’s investment strategy due to restrictions they may place on the issuer acquiring or disposing of the securities underlying the equity linked notes or on the implementation of redemptions and payment of redemption proceeds to a fund. Investment in equity linked notes can be illiquid as there is no active market in equity linked notes. In order to meet realisation requests, a fund relies upon the counterparty issuing the equity linked notes to quote a price to unwind any part of the equity linked notes. This price will reflect the market liquidity conditions and the size of the transaction.
Smaller companies
Funds investing in smaller companies invest in securities which may be less liquid than the securities of larger companies, as a result of inadequate trading volume or restrictions on trading. Securities in smaller companies may possess greater potential for capital appreciation, but also involve risks, such as limited product lines, markets and financial or managerial resources and trading in such securities may be subject to more abrupt price movements than trading in the securities of larger companies.
Concentration
Sub funds which are invested in a concentrated 'spread' of securities may be more volatile than funds invested in a larger variety of investments as the impact of movement in the value of the investments may affect the fund value to a greater degree.
Interest rate risk
Where a sub fund invests primarily in fixed income securities, the value of the sub fund’s investments fluctuates in response to movements in interest rates. If rates go up, the value of debt securities fall; if rates go down, the value of debt securities rise.
High yield risk
To the extent that a sub fund invests in lower-rated debt securities, these securities, while usually offering higher yields, generally have more risk and volatility than high-rated securities, because of reduced credit worthiness, liquidity and greater chance of default.
Tax
The way your investments are treated for tax purposes and in particular, the tax thresholds which apply, are dependent on your personal circumstances and the tax treatment of funds can be changed by future legislation.
Liabilities of FSI
Although each fund so far as possible will be treated as bearing the liabilities, expenses, costs and charges attributable to it, if its assets are not sufficient to cover all or any such liabilities, the ACD may re-allocate assets, liabilities, expenses, costs and charges between the funds in a manner which is fair to the Shareholders of FSI generally. The ACD would normally expect any such re-allocation to be effected on a pro rata basis having regard to the Net Asset Values of the relevant funds.
Liabilities of FSGU
With effect from 31 May 2007, following the approval by the shareholders FSGU of a resolution at the Annual General Meeting held on that day, amendments were made to the Articles of Association of FSGU. The amendments to the Articles of Association were made to avail of a facilitative provision in the Investment Funds, Companies and Miscellaneous Provisions Act 2005 (the “Act”) which provides for segregated liability between funds. As a consequence of this change, investors in a particular sub fund of FSGU will only be subject to the investment risks, costs and liabilities incurred in the pursuance of the investment strategy attributable to the sub fund in which they have invested.
Aggregation of orders
In managing the Funds, the relevant investment manager may combine orders for the Funds with those of other clients. This procedure may operate on some occasions to the disadvantage of the Funds and on others to the advantage of the Funds.
Swiss regulations (applicable to FSI only)
Warning: Only the following investment funds of FSI have been authorised by the Swiss Federal Banking Commission as foreign investment funds pursuant to Article 45 of the Swiss Investment Funds Act of 18 March 1994: First State Asia Pacific Fund, First State Asia Pacific Leaders Fund, First State Asia Pacific Sustainability Fund, First State Asian Property Securities Fund, First State Global Emerging Markets Fund, First State Global Emerging Markets Leaders Fund, First State Global Listed Infrastructure Fund, First State Global Property Securities Fund, First State Greater China Growth Fund, First State Global Resources Fund, First State Global Opportunities Fund, First State Global Growth Fund and the First State Indian Subcontinent Fund. Accordingly, the other investment products mentioned on this website may not be offered or distributed in or from Switzerland on the basis of a public solicitation, as such term is defined under the current practice of the Swiss Federal Banking Commission. Furthermore, the attention of the investors is drawn to the fact that products presented here are not subject to the supervision of the Swiss Federal Banking Commission and investors cannot invoke the protection conferred under the Investment Funds Act.
