Common use of Additional Risks Clause in Contracts

Additional Risks. In evaluating the Fund and its prospects, investors should also consider the following: • the success and profitability of the Fund will depend on the ability of the Investment Manager to make investments which will increase in value over time; • the Fund, as a result of its strategies, will deviate materially from broader stock indices. Every investment is influenced by many factors that can affect both its value and the income it produces and the investment can decline as well as increase in value. As a Fund that invests in the stock market, market risk is significant. • the value of the assets of the Fund may be affected by the general economic environment, legislation or government policy or other factors beyond the control of the Investment Manager. As a result, no guarantee can be given in respect of the future earnings of the Fund or the earnings or capital appreciation of the Fund’s investments; and • the past performance of this Fund and other funds and portfolios managed by CI are not necessarily a guide to future performance of the Fund. In addition, unitholders should consider the following specific risks: This is the risk that an entire market, country or economy (such as Australia) changes in value or becomes more volatile, including the risk that the purchasing power of the currency changes (either through inflation or deflation), potentially causing a reduction in the value of the Fund and increasing its volatility. Reasons can be many, and include changes in economic, financial, technological, political or legal conditions, natural and man-made disasters, conflicts and changes in market sentiment. Where the Fund purchases assets denominated in a foreign currency, currency movements between the Australian dollar and the relevant foreign currency might lead to gains or losses in the value of the assets. The manager will generally hedge its exposure to foreign currency movements in respect of such assets, but has the ability to reduce the level of hedging hedge to not less than 70% of its exposure. The Fund can use derivatives, including exchange traded options, to gain exposure to underlying assets or currencies. The Fund can suffer losses in excess of the amounts committed to relevant derivatives. The Fund will also be exposed to the risk that a derivative may not necessarily reflect the performance of the underlying asset or currency to which it is exposed. In addition, the Fund will be exposed to the counterparty risk that the other party to the derivative may not perform its obligations under the derivative. When the Fund holds assets in another jurisdiction it will be exposed to different legal systems, foreign currency controls, different economic and political systems, foreign legislation and foreign taxation all of which may adversely impact on the Fund. The Fund or an investment in the Fund can also be subject to tax risk on the basis that tax laws and relevant administrative practices are subject to change, possibly with retrospective effect.

Additional Risks. In evaluating the Fund and its prospects, investors should also consider the following: • the success and profitability of the Fund will depend on the ability of the Investment Manager to make investments which will increase in value over time; • the Fund, as a result of its strategies, will deviate materially from broader stock indices. Every investment is influenced by many factors that can affect both its value and the income it produces and the investment can decline as well as increase in value. As a Fund that invests in the stock market, market risk is significant. • the value of the assets of the Fund may be affected by the general economic environment, legislation or government policy or other factors beyond the control of the Investment Manager. As a result, no guarantee can be given in respect of the future earnings of the Fund or the earnings or capital appreciation of the Fund’s investments; and • the past performance of this Fund and other funds and portfolios managed by CI are not necessarily a guide to future performance of the Fund. In addition, unitholders should consider the following specific risks: This is While the risk that an entire marketFund's "investment universe" includes both developed and developing countries, country or economy (such as Australia) changes in value or becomes more volatile, including the risk that the purchasing power of the currency changes (either through inflation or deflation), potentially causing a reduction in the value significant part of the Fund will always be invested in the latter. A developing country is one that is characterised by, but not limited to, any of the following: • low standards of living; • low per capita levels of Gross Domestic Product (GDP); • an industrial base that is only "emerging"; • a moderate to low Human Development Index score (normalised measure of life expectancy, literacy, education, standard of living and increasing its volatilityper capita GDP); • undeveloped political and institutional bodies/frameworks e.g. rules of law; and • varying levels of democratic freedom and human rights. Reasons can be many, and include changes in economic, financial, technological, political or legal conditions, natural and man-made disasters, conflicts and changes in market sentiment. Where the Fund purchases assets denominated in a foreign currency, currency movements between the Australian dollar and the relevant foreign currency might These factors lead to gains or losses higher levels of risk in developing markets, which investors should be cognisant of when contemplating an investment in the value of the assets. The manager will generally hedge its exposure to foreign currency movements in respect of such assets, but has the ability to reduce the level of hedging hedge to not less than 70% of its exposureFund. The Fund can use derivatives, including exchange traded options, to gain exposure to underlying assets or currencies. The Fund can suffer losses in excess of the amounts committed to relevant derivatives. The Fund will also be exposed to the risk that a derivative may not necessarily reflect the performance of the underlying asset or currency to which it is exposed. In addition, the Fund will be exposed to the counterparty risk that the other party to the derivative may not perform its obligations under the derivative. When the Fund holds assets in another jurisdiction it will be exposed to different legal systems, foreign currency controls, different economic and political systems, foreign legislation and foreign taxation all of which may adversely impact on the Fund. The Fund or an investment in the Fund can also be subject to tax risk on the basis that tax laws and relevant administrative practices are subject to change, possibly with retrospective effect.