Common use of Derivative Financial Instruments Clause in Contracts

Derivative Financial Instruments. The use of derivative financial instruments for hedging purposes can alter the general risk profile by reducing opportunities and risks. The use of derivative financial instruments for investment and speculative purposes can influence the general risk profile by creating additional, moderate to very strong opportunities and risks. Derivative financial instruments are not stand-alone investment instruments but rights whose value is essentially derived from the price, price fluctuations and price expectations of an underlying instrument. Investments in derivatives are subject to general market risk, management risk, credit risk and liquidity risk. Depending on the specific features of particular derivative financial instruments, however, the above risks may take on different characteristics and may sometimes be greater than the risks associated with investments in the underlying instruments. The use of derivatives therefore requires not only an understanding of the underlying, but also in-depth knowledge of the derivatives themselves. Derivative financial instruments also involve the risk that the AIF will suffer a loss because another party to the derivative transaction (usually a counterparty) fails to meet its obligations. The credit risk associated with exchange-traded derivatives is generally smaller than for OTC derivatives because the clearing house that acts as the issuer or counterparty to every derivatives contract traded on the exchange also guarantees that the transaction will be processed. To reduce the overall default risks, this guarantee is backed up by a daily payment system maintained by the clearing house under which the assets required as cover are calculated every day. For OTC derivatives there is nothing comparable to this clearing house guarantee, and the AIF must factor the creditworthiness of every OTC derivative counterparty into its assessment of the potential credit risk. Derivatives can also present liquidity risks, because certain instruments may be difficult to buy or sell. If a derivatives transaction is especially large or the market in question is not liquid (as may be the case for OTC derivatives), in certain circumstances it may prove impossible to execute in full or liquidation of the position may be possible only at extra cost. Other risks that the use of derivatives may present relate to the inaccurate pricing or valuation of derivatives. There is also the risk that derivatives will not correlate exactly with the underlying assets, interest rates and indices. Many derivatives are complex and they are often valued subjectively. Inappropriate valuations can result in greater claims for cash payment by counterparties or to a loss of value for the AIF. Derivatives do not always correlate directly or in parallel with the value of the assets, interest rates or indices from which they are derived. Therefore the use of derivatives by the AIF will not always be an effective means of achieving the AIF's investment objective and on occasion may even prove counterproductive.

Derivative Financial Instruments. The use of derivative financial instruments for hedging purposes can alter the general risk profile by reducing opportunities and risks. The use of derivative financial instruments for investment and speculative purposes can influence the general risk profile by creating additional, moderate to very strong opportunities and risks. Derivative financial instruments are not stand-alone investment instruments but rights whose value is essentially derived from the price, price fluctuations and price expectations of an underlying un- derlying instrument. Investments in derivatives are subject to general market risk, management risk, credit risk and liquidity risk. Depending on the specific features of particular derivative financial instruments, however, the above risks may take on different characteristics and may sometimes be greater than the risks associated with investments in the underlying instruments. The use of derivatives therefore requires not only an understanding of the underlying, but also in-depth knowledge of the derivatives themselves. Derivative financial instruments also involve the risk that the AIF will suffer a loss because another an- other party to the derivative transaction (usually a counterparty) fails to meet its obligations. The credit risk associated with exchange-traded derivatives is generally smaller than for OTC derivatives because the clearing house that acts as the issuer or counterparty to every derivatives deriva- tives contract traded on the exchange also guarantees that the transaction will be processed. To reduce the overall default risks, this guarantee is backed up by a daily payment system maintained by the clearing house under which the assets required as cover are calculated every day. For OTC derivatives there is nothing comparable to this clearing house guarantee, and the AIF must factor the creditworthiness of every OTC derivative counterparty into its assessment of the potential credit risk. Derivatives can also present liquidity risks, because certain instruments may be difficult to buy or sell. If a derivatives transaction is especially large or the market in question is not liquid (as may be the case for OTC derivatives), in certain circumstances it may prove impossible to execute exe- cute in full or liquidation of the position may be possible only at extra cost. Other risks that the use of derivatives may present relate to the inaccurate pricing or valuation of derivatives. There is also the risk that derivatives will not correlate exactly with the underlying assets, interest rates and indices. Many derivatives are complex and they are often valued subjectivelysub- jectively. Inappropriate valuations can result in greater claims for cash payment by counterparties counterpar- ties or to a loss of value for the AIF. Derivatives do not always correlate directly or in parallel with the value of the assets, interest rates or indices from which they are derived. Therefore the use of derivatives by the AIF will not always be an effective means of achieving the AIF's investment in- vestment objective and on occasion may even prove counterproductive.

Derivative Financial Instruments. The UCITS or the sub-fund respectively may deploy derivative financial instruments. These may be used not only for hedging purposes, but may also represent part of the investment strategy. The use of derivative financial instruments for hedging purposes can may alter the general risk profile by reducing correspondingly lowering the opportunities and risks. The use of derivative financial instruments for investment and speculative purposes can influence may alter the general risk profile by creating additional, moderate to very strong opportunities generating additional oppor- tunities and risks. Derivative financial instruments are not stand-alone independent investment instruments but instruments. Instead, they constitute rights whose value is essentially derived valua- tion derive primarily from the price, price and the price fluctuations and price expectations of an underlying instrument. Investments Invest- ments in derivatives are subject to the general market risk, the management risk, the credit risk and the liquidity risk. Depending on On account of the specific particular features of particular the derivative financial instruments, however, the above aforementioned risks may take on however mani- fest themselves in different characteristics ways and may sometimes on occasion be greater higher than the risks associated with investments of an investment in the underlying instrumentsin- struments. The use For this reason the deployment of derivatives therefore requires not only merely an understanding of the underlyingunderlying instrument, but also in-depth thorough knowledge of the derivatives themselvesderivative itself. Derivative financial instruments also involve entail the risk that the AIF will UCITS or the sub-fund respectively may suffer a loss because another if anoth- er party to the derivative transaction financial instrument (usually as a rule a "counterparty”) fails to meet its fulfil their obligations. The In general, the credit risk associated with exchange-for derivatives which are traded derivatives on a stock market is generally smaller lower than the risk for OTC derivatives because derivatives, as the clearing house that acts office acting as the issuer or counterparty to every of each derivatives contract traded on the stock exchange also guarantees that the transaction will be processedassumes a set- tlement guarantee. To In order to reduce the overall default risksrisk, this guarantee is backed up supported by a daily payment system maintained by the clearing house under office, which calculates the assets required as cover are calculated every dayto provide this cover. For OTC In the case of derivatives there is nothing traded OTC, no comparable to this clearing house guaranteeoffice guarantee exists, and the AIF must factor UCITS needs to take account of the creditworthiness creditworthi- ness of every counterparty of derivatives traded OTC derivative counterparty into its assessment of when evaluating the potential credit risk. Derivatives can In addition, liquidation risks also present liquidity risksexist, because certain as specific instruments may be difficult to buy or to sell. If a derivatives transaction is especially large transactions are particularly large, or if the corresponding market in question is not liquid (as may can be the case for OTC derivativesderivatives traded OTC), in it may not be possible at all times to perform transactions comprehensively, or under certain circumstances it may prove impossible to execute in full or the liquidation of the a position may be possible only at extra costentail increased costs. Other Further risks that in conjunction with the use deployment of derivatives may present relate to constitute the inaccurate pricing incorrect price determination or valuation of derivatives. There In addition, it is also the risk possible that derivatives will do not fully correlate exactly with the underlying assets, interest rates and indices. Many derivatives are complex complex, and they are often valued subjectivelysubjectively valued. Inappropriate Improper valuations can result in greater may lead to in- creased payment claims for cash payment by from counterparties or to a loss of in value for the AIFrespective sub-fund. Derivatives do not always correlate directly have a direct or in parallel relationship with the value of the assets, interest rates or indices from which they are derived. Therefore For this reason the use of derivatives by the AIF will respective sub-fund does not always be represent an effective means of achieving the AIF's investment invest- ment objective and on occasion may of the respective sub-fund, but can instead can even prove counterproductivehave the reverse effect.

Derivative Financial Instruments. The UCITS may deploy derivative financial instruments. These may be used not only for hedging purposes, but may also represent part of the investment strategy. The use of derivative financial instruments for hedging purposes can may alter the general risk profile by reducing correspondingly lowering the opportunities and risks. The use of derivative financial instruments for investment and speculative purposes can influence may alter the general risk profile by creating additional, moderate to very strong generating additional opportunities and risks. Derivative financial instruments are not stand-alone independent investment instruments but instruments. Instead, they constitute rights whose value valua- tion is essentially derived primarily from the price, price and the price fluctuations and price expectations of an underlying instrument. Investments In- vestments in derivatives are subject to the general market risk, the management risk, the credit risk and the liquidity risk. Depending on On account of the specific particular features of particular the derivative financial instruments, however, the above aforementioned risks may take on however mani- fest themselves in different characteristics ways and may sometimes on occasion be greater higher than the risks associated with investments of an investment in the underlying instrumentsinstru- ments. The use For this reason, the deployment of derivatives therefore requires not only merely an understanding of the underlyingunderlying instrument, but also in-depth thorough knowledge of the derivatives themselvesderivative itself. Derivative financial instruments also involve entail the risk that the AIF will UCITS may suffer a loss because if another party to the derivative transaction fi- nancial instrument (usually as a rule a "counterparty”) fails to meet its fulfil their obligations. The In general, the credit risk associated with exchange-for derivatives that are traded derivatives on a stock market is generally smaller lower than the risk for OTC derivatives because derivatives, as the clearing house that acts office acting as the issuer or counterparty to every derivatives contract of each derivative traded on the stock exchange also guarantees that the transaction will be processedassumes a settle- ment guarantee. To In order to reduce the overall default risksrisk, this guarantee is backed up supported by a daily payment system maintained main- tained by the clearing house under office, which calculates the assets required as cover are calculated every dayto provide this cover. For OTC In the case of derivatives there is nothing traded OTC, no comparable to this clearing house guaranteeoffice guarantee exists, and the AIF must factor UCITS needs to take account of the creditworthiness of every counterparty of derivatives traded OTC derivative counterparty into its assessment of when evaluating the potential credit risk. Derivatives can In addition, liquidation risks also present liquidity risksexist, because certain as specific instruments may be difficult to buy or to sell. If a derivatives transaction is especially large transactions are particularly large, or if the corresponding market in question is not liquid (as may can be the case for OTC derivativesderivatives traded OTC), in it may not be possible at all times to perform transactions comprehensively, or under certain circumstances it may prove impossible to execute in full or the liquidation of the a position may be possible only at extra costentail increased costs. Other Further risks that in conjunction with the use deployment of derivatives may present relate to constitute the inaccurate pricing incorrect price determination or valuation of derivatives. There In addition, it is also the risk possible that derivatives will do not fully correlate exactly with the underlying assets, interest rates and indices. Many derivatives are complex and they are often valued subjectivelysubjectively valued. Inappropriate Improper valuations can result in greater may lead to increased payment claims for cash payment by from counterparties or to a loss of in value for the AIFUCITS. Derivatives do not always correlate directly have a direct or in parallel paral- lel relationship with the value of the assets, interest rates or indices from which they are derived. Therefore For this reason the use of derivatives by the AIF will UCITS does not always be represent an effective means of achieving the AIF's investment objective of the UCITS, but instead can even have the reverse effect. If the UCITS conducts OTC transactions, then this may expose it to risks in conjunction with the creditworthiness of the OTC counterparties: when concluding futures contracts, options and swap transactions, or using other derivative meth- ods, the UCITS is subject to the risk of an OTC counterparty failing (or being unable) to fulfil its obligations arising out of a specific contract or several contracts. The counterparty risk may be reduced by the deposition of a security. If the UCITS is owed a security in accordance with applicable agreements, then this shall be held for safekeeping by the or for the Custodian on occasion behalf of the UCITS. Incidents of bankruptcy and insolvency or other credit default events at the Custo- ▇▇▇▇ or within its sub-custodians or network of correspondence banks may cause the rights of the UCITS in conjunction with the security to be shifted or limited in another manner. If the UCITS owes the OTC counterparty a security in accord- ance with the applicable agreements, then a security of this nature must be assigned, as agreed between the UCITS and the OTC counterparty, to the OTC counterparty. Cases of bankruptcy and insolvency or other credit default events affect- ing the OTC counterparty, the Custodian or within its network of sub-custodians or correspondence banks may cause the rights or the recognition of the UCITS to be delayed, restricted or even excluded in respect of the security, thus obliging the UCITS to fulfil its obligations within the framework of the OTC transaction irrespective of any possible securities that were provided to cover an obligation of this nature. The risk associated with the management of collateral, in particular the operational or legal risk, is identified, managed and mitigated by the risk management system applied to the UCITS or to the sub-fund. The UCITS or the sub-fund may disregard counterparty risk provided that the value of the collateral, valued at market price and with reference to appropriate discounts, exceeds the amount of risk at all times. A UCITS or the sub-fund may suffer losses when investing the cash collateral that it has received. A loss of this nature may result from a decline in the value of the investments performed using the received cash collateral. If the value of the invested cash collateral falls, this shall reduce the sum of the collateral that is available to the sub-fund for returning to the counterparty when concluding the transaction. The UCITS or the sub-fund would be required to cover the difference in value between the original received collateral and the sum available for returning to the counterparties that would lead to the sub-fund suffering a loss. The deterioration in the solvency or indeed the bankruptcy of an issuer may result in at least a partial loss for the assets. The risk consists of the fact that the fulfilment of transactions that are concluded for the account of the assets are jeop- ardised by liquidity difficulties or the bankruptcy of the corresponding counterparty. Inflation can reduce the value of the investments of the assets. The purchasing power of the invested capital sinks if the inflation rate is higher than the returns generated by the investments. This is the risk of price losses brought about by a failure to take proper or correct account of economic developments at the time of the investment decision, resulting in investments being made in securities at the wrong time, or in securities being held during an unfavourable economic phase. Country risk refers to circumstances when a non-domestic debtor is unable to render his performances within the dead- line or not at all, despite being solvent, on account of his domiciliary country being unwilling or unable to perform the transfer (e.g. on the grounds of currency restrictions, transfer risks, moratoriums or embargoes). This means, e.g. that payments to which the UCITS is entitled may remain unpaid, or may be performed in a currency that is no longer trans- ferable on account of currency restrictions. Operational risk is the risk of loss for the assets of a sub-fund resulting from inadequate internal processes and from hu- man or system failure at the Management Company or from external events, and includes legal, documentation and rep- utational risks as well as risks resulting from the trading, settlement and valuation procedures operated for the assets of a sub-fund. Investments in unlisted securities, in particular, entail the risk of the settlement being executed by a transfer system in a manner contrary to expectations on account of a payment or delivery being delayed or performed in a manner other than that which had been agreed. For the UCITS, assets may also be acquired that are not licensed on a stock exchange or included in another organised market. The acquisition of such assets entails the risk that problems may arise in particular when reselling the assets to third parties. In the case of stocks of smaller companies (small caps), there is a risk of the market not being liquid during certain phases. A possible consequence of this may be that the stock cannot be traded at the desired time and/or not in the de- sired quantity and/or not at the expected price. Assets that are traded on an organised market may also be subject to the risk that the market may be temporarily illiquid. This may mean that the assets cannot be sold at the desired time and/or in the desired quantity and/or not at the desired price. Taking account of the investment principles and investment limits stipulated by the UCITSG and the Trust Agreement, which specify a very broad scope for the UCITS, the actual investment policy may also aim to acquire predominantly specific types of assets, e.g. in only a small number of sectors, markets or regions/countries. This concentration on a small number of specific investment sectors may generate special opportunities, although these will also be offset by corresponding risks (e.g. market constraints, high fluctuation bands within specific economic cycles). The annual report provides retrospective information about the investment policy for the past financial year. Further risks may be caused by the fact that the investments are concentrated in specific assets or markets. In this case the UCITS may be particularly heavily dependent upon the performance of these assets or markets. This is a general risk associated with all investments, consisting of the fact that the value of a specific investment may change in a manner contrary to the interests of the UCITS. There may be losses in value of the investments in which the UCITS or the sub-fund invests. In this case, the market value of the investments develops disadvantageously compared to the cost price. Investments are also exposed to differ- ent price fluctuations (volatility). In extreme cases, there is a risk of the complete loss of value of the corresponding as- sets. Sentiment, opinions and rumour can trigger significant price falls, even though the profitability and the prospects of the companies in which investments have been made need not necessarily have undergone any lasting changes. Equities are particularly susceptible to psychological market risk. This is the loss risk of the UCITS resulting from the fact that a concluded transaction cannot be fulfilled as expected be- cause a counterparty has failed to pay or to deliver, or because losses can arise due to errors at the operational level within the framework of the settlement of a transaction. The buying, holding or sale of UCITS investments may be subject to statutory fiscal regulations (e.g. deduction of with- holding tax) outside the country of domicile of the UCITS. Furthermore, the legal and tax treatment of the UCITS may change in an unforeseen and uncontrollable manner. A change in incorrectly ascertained UCITS taxation principles for past financial years (e.g. on the basis of external tax audits) may, in the case of an essentially disadvantageous tax cor- rection for the Investor, mean that the Investor is required to bear the tax burden for past financial years arising out of the correction, even though he might not have even been invested in the UCITS at this time. Conversely, the investor may not benefit from an essentially advantageous tax correction for the current and previous financial years in which he par- ticipated in the OGAW because of the redemption or alienation of the units prior to implementation of the corresponding correction. In addition, a correction of tax data may mean that taxable earnings or taxable benefits may be assessed in an assessment period other than that in which they were actually attributed, which could have a negative impact on the individual investor. Custody of assets entails a risk of loss, which may result from insolvency or breaches of due diligence by the Custodian or force majeure. Investments in equities represent a direct participation in the economic success or failure of a company. In extreme cir- cumstances – e.g. bankruptcy – this may mean the complete loss of the value of the corresponding investment. If the UCITS holds assets that are denominated in a foreign currency or foreign currencies, these will be exposed to a direct currency risk (insofar as foreign currency positions have not been hedged). Falling exchange rates reduce the value of foreign currency assets. On the other hand, the currency market also offers opportunities for profits. In addition to direct currency risks, there are also indirect currency risks. Internationally-active companies are dependent, to a greater or lesser extent, on exchange rate developments. This can also have an indirect impact on the performance of investments. A change of the investment policy within the statutory and contractually permitted investment spectrum could change the content of the risk associated with the UCITS. The Management Company may change the investment policy of the UCITS within the applicable Trust Agreement by changing the Prospectus and the Trust Agreement including Appendix A at any time and to a significant extent. In the Trust Agreement the Management Company reserves the right to amend the trust conditions at any time. Further- more, pursuant to the Trust Agreement it may comprehensively dissolve the UCITS or merge it with another UCITS. This consequently means that for investors there is a risk that the holding period they had planned cannot be realised. It is essentially the case that investors may demand from the Management Company the redemption of their units in ac- cordance with the valuation interval of the UCITS. The Management Company may however temporarily suspend the redemption of the units in the event of exceptional circumstances, and may then redeem the units only at a later date and in accordance with the then valid price (also see in detail "Suspension of the calculation of the net asset value and the issue, the redemption and the conversion of units"). This price may be lower than that prior to the suspension of the re- demption. UCITSs whose investment result is very positive during a specific period also owe this success to the suitability of the acting persons and consequently the correct decisions of their management. The composition of the personnel of the fund management may however change. It is possible that new decision-makers may not act so successfully. Insofar as the UCITS invests in interest-bearing securities, it will be exposed to interest rate change risks. If the market interest rate rises, the market value of the interest-bearing securities can fall substantially. This applies in particular to the extent that the assets also include interest-bearing securities with longer residual maturities and low nominal interest re- turns. Unit classes whose reference currency is not the same as the portfolio currency may be hedged against exchange rate fluctuations (hedging). This is intended to protect investors in the respective unit class as far as possible against possible losses brought about by negative exchange rate developments. At the same time, however, they will not be able to bene- fit fully from positive exchange rate developments. Fluctuations in the volume hedged in the portfolio and ongoing sub- scriptions and redemptions mean that it is not always possible to maintain ▇▇▇▇▇▇ at exactly the same level as the net asset value of the unit class that is being hedged. It is therefore possible that the net asset value per unit in a hedged unit class may not develop identically to the net asset value per unit in a non-hedged unit class. If a benchmark index is used, then a suitable alternative benchmark must be identified if the benchmark is changed or if the index provider does not comply with the Benchmark Regulation. In certain cases this may prove counterproductive.difficult or impossi- ble. If a suitable substitute benchmark cannot be identified, this may have a negative impact on the relevant sub-fund. Compliance with t

Derivative Financial Instruments. The UCITS may deploy derivative financial instruments. These may be used not only for hedging purposes, but may also represent part of the investment strategy. The use of derivative financial instruments for hedging purposes can may alter the general risk profile by reducing correspondingly lowering the opportunities and risks. The use of derivative financial instruments for investment and speculative purposes can influence may alter the general risk profile by creating additional, moderate to very strong generating additional opportunities and risks. Derivative financial instruments are not stand-alone independent investment instruments but instruments. Instead, they constitute rights whose value valua- tion is essentially derived primarily from the price, price and the price fluctuations and price expectations of an underlying instrument. Investments In- vestments in derivatives are subject to the general market risk, the management risk, the credit risk and the liquidity risk. Depending on On account of the specific particular features of particular the derivative financial instruments, however, the above aforementioned risks may take on however mani- fest themselves in different characteristics ways and may sometimes on occasion be greater higher than the risks associated with investments of an investment in the underlying instrumentsinstru- ments. The use For this reason the deployment of derivatives therefore requires not only merely an understanding of the underlyingunderlying instrument, but also in-depth thorough knowledge of the derivatives themselvesderivative itself. Derivative financial instruments also involve entail the risk that the AIF will UCITS may suffer a loss because if another party to the derivative transaction fi- nancial instrument (usually as a rule a "counterparty”) fails to meet its fulfil their obligations. The In general, the credit risk associated with exchange-for derivatives that are traded derivatives on a stock market is generally smaller lower than the risk for OTC derivatives because derivatives, as the clearing house that acts office acting as the issuer or counterparty to every derivatives contract of each derivative traded on the stock exchange also guarantees that the transaction will be processedassumes a settle- ment guarantee. To In order to reduce the overall default risksrisk, this guarantee is backed up supported by a daily payment system maintained main- tained by the clearing house under office, which calculates the assets required as cover are calculated every dayto provide this cover. For OTC In the case of derivatives there is nothing traded OTC, no comparable to this clearing house guaranteeoffice guarantee exists, and the AIF must factor UCITS needs to take account of the creditworthiness of every counterparty of derivatives traded OTC derivative counterparty into its assessment of when evaluating the potential credit risk. Derivatives can In addition, liquidation risks also present liquidity risksexist, because certain as specific instruments may be difficult to buy or to sell. If a derivatives transaction is especially large transactions are particularly large, or if the corresponding market in question is not liquid (as may can be the case for OTC derivativesderivatives traded OTC), in it may not be possible at all times to perform transactions comprehensively, or under certain circumstances it may prove impossible to execute in full or the liquidation of the a position may be possible only at extra costentail increased costs. Other Further risks that in conjunction with the use deployment of derivatives may present relate to constitute the inaccurate pricing incorrect price determination or valuation of derivatives. There In addition, it is also the risk possible that derivatives will do not fully correlate exactly with the underlying assets, interest rates and indices. Many derivatives are complex complex, and they are often valued subjectivelysubjectively valued. Inappropriate Improper valuations can result in greater may lead to increased payment claims for cash payment by from counterparties or to a loss of in value for the AIFUCITS. Derivatives do not always correlate directly have a direct or in parallel paral- lel relationship with the value of the assets, interest rates or indices from which they are derived. Therefore For this reason the use of derivatives by the AIF will UCITS does not always be represent an effective means of achieving the AIF's investment objective of the UCITS, but instead can even have the reverse effect. If the UCITS conducts OTC transactions, then this may expose it to risks in conjunction with the creditworthiness of the OTC counterparties: when concluding futures contracts, options and swap transactions, or using other derivative meth- ods, the UCITS is subject to the risk of an OTC counterparty failing (or being unable) to fulfil its obligations arising out of a specific contract or several contracts. The counterparty risk may be reduced by the deposition of a security. If the UCITS is owed collateral in accordance with applicable agreements, then this shall be held for safekeeping by the or for the Custodian on occasion behalf of the UCITS. Incidents of bankruptcy and insolvency or other credit default events at the Custo- dian or within its sub-custodians or network of correspondence banks may cause the rights of the UCITS in conjunction with the security to be shifted or limited in another manner. If the UCITS owes the OTC counterparty a security in accord- ance with the applicable agreements, then a security of this nature must be assigned, as agreed between the UCITS and the OTC counterparty, to the OTC counterparty. Cases of bankruptcy and insolvency or other credit default events affect- ing the OTC counterparty, the Custodian or within its network of sub-custodians or correspondence banks may cause the rights or the recognition of the UCITS to be delayed, restricted or even excluded in respect of the security, thus obliging the UCITS to fulfil its obligations within the framework of the OTC transaction irrespective of any possible securities that were provided to cover an obligation of this nature. The risk associated with the management of the collateral, such as in particular the operational or legal risk, is identified, managed and mitigated by the risk management applied to the UCITS. The UCITS may disregard the counterparty risk provided that the value of the collateral, valued at the market price and with reference to the appropriate discounts, exceeds the amount of the risk at any time. A UCITS may incur losses when investing the cash collateral it accepts. Such a loss may arise from a decline in the value of the investment made with the cash collateral received. If the value of the invested cash collateral decreases, this reduces the amount of collateral that was available to the UCITS for return to the counterparty when the transaction was concluded. The UCITS would have to cover the difference in value between the collateral originally received and the amount available for return to the counterparty, which would result in a loss for the UCITS. The deterioration in the solvency or indeed the bankruptcy of an issuer may result in at least a partial loss for the assets. The risk consists of the fact that the fulfilment of transactions that are concluded for the account of the assets are jeop- ardised by liquidity difficulties or the bankruptcy of the corresponding counterparty. Inflation can reduce the value of the investments of the assets. The purchasing power of the invested capital sinks if the inflation rate is higher than the returns generated by the investments. This is the risk of price losses brought about by a failure to take proper or correct account of economic developments at the time of the investment decision, resulting in investments being made in securities at the wrong time, or in securities being held during an unfavourable economic phase. Country risk refers to circumstances when a non-domestic debtor is unable to render his performances within the dead- line or not at all, despite being solvent, on account of his domiciliary country being unwilling or unable to perform the transfer (e.g. on the grounds of currency restrictions, transfer risks, moratoriums or embargoes). This means, e.g. that payments to which the UCITS is entitled may remain unpaid, or may be performed in a currency that is no longer trans- ferable on account of currency restrictions. Operational risk is the risk of loss for the assets of the UCITS resulting from inadequate internal processes and from human or system failure at the Management Company or from external events, and includes legal, documentation and reputational risks as well as risks resulting from the trading, settlement and valuation procedures operated for the assets of the UCITS. Investments in unlisted securities, in particular, entail the risk of the settlement being executed by a transfer system in a manner contrary to expectations on account of a payment or delivery being delayed or performed in a manner other than that which had been agreed. For the UCITS, assets may also be acquired that are not licensed on a stock exchange or included in another organised market. The acquisition of such assets entails the risk that problems may arise in particular when reselling the assets to third parties. In the case of stocks of smaller companies (small caps), there is a risk of the market not being liquid during certain phases. A possible consequence of this may be that the stock cannot be traded at the desired time and/or not in the de- sired quantity and/or not at the expected price. Assets that are traded on an organised market may also be subject to the risk that the market may be temporarily illiquid. This may mean that the assets cannot be sold at the desired time and/or in the desired quantity and/or not at the desired price. Taking account of the investment principles and investment limits stipulated by the UCITSG and the Trust Agreement, which specify a very broad scope for the UCITS, the actual investment policy may also aim to acquire predominantly specific types of assets, e.g. in only a small number of sectors, markets or regions/countries. This concentration on a small number of specific investment sectors may generate special opportunities, although these will also be offset by corresponding risks (e.g. market constraints, high fluctuation bands within specific economic cycles). The annual report provides retrospective information about the investment policy for the past financial year. Further risks may be caused by the fact that the investments are concentrated in specific assets or markets. In this case the UCITS may be particularly heavily dependent upon the performance of these assets or markets. This is a general risk associated with all investments, consisting of the fact that the value of a specific investment may change in a manner contrary to the interests of the UCITS. Sentiment, opinions and rumour can trigger significant price falls, even though the profitability and the prospects of the companies in which investments have been made need not necessarily have undergone any lasting changes. Equities are particularly susceptible to psychological market risk. This is the loss risk of the UCITS resulting from the fact that a concluded transaction cannot be fulfilled as expected be- cause a counterparty has failed to pay or to deliver, or because losses can arise due to errors at the operational level within the framework of the settlement of a transaction. The buying, holding or sale of UCITS investments may be subject to statutory fiscal regulations (e.g. deduction of with- holding tax) outside the country of domicile of the UCITS. Furthermore, the legal and tax treatment of the UCITS may change in an unforeseen and uncontrollable manner. A change in incorrectly ascertained UCITS taxation principles for past financial years (e.g. on the basis of external tax audits) may, in the case of an essentially disadvantageous tax cor- rection for the investor, mean that the investor is required to bear the tax burden for past financial years arising out of the correction, even though he might not have even been invested in the UCITS at this time. On the other hand, it may be the case that the investor, in the event of an essentially beneficial tax correction for the current and for past financial years in which he had an interest in the UCITS, may no longer be able to benefit from the tax correction arising out of the redemption or alienation of the units before the implementation of the corresponding correction. In addition, a correction of tax data may mean that taxable earnings or taxable benefits may be assessed in an assessment period other than that in which they were actually attributed, which could have a negative impact on the individual investor. Custody of assets entails a risk of loss, which may result from insolvency or breaches of due diligence by the Custodian or force majeure. Investments in equities represent a direct participation in the economic success or failure of a company. In extreme cir- cumstances – e.g. bankruptcy – this may mean the complete loss of the value of the corresponding investment. If the UCITS holds assets that are denominated in a foreign currency or foreign currencies, these will be exposed to a direct currency risk (insofar as foreign currency positions have not been hedged). Falling exchange rates reduce the value of foreign currency assets. On the other hand, the currency market also offers opportunities for profits. In addition to direct currency risks, there are also indirect currency risks. Internationally-active companies are dependent, to a greater or lesser extent, on exchange rate developments. This can also have an indirect impact on the performance of investments. A change of the investment policy within the statutory and contractually permitted investment spectrum could change the content of the risk associated with the UCITS. The Management Company may change the investment policy of the UCITS within the applicable Trust Agreement by changing the Prospectus and the Trust Agreement including Appendix A at any time and to a significant extent. In the Trust Agreement the Management Company reserves the right to amend the trust conditions at any time. Further- more, pursuant to the Trust Agreement it may comprehensively dissolve the UCITS or merge it with another UCITS. This consequently means that for investors there is a risk that the holding period they had planned cannot be realised. It is essentially the case that investors may demand from the Management Company the redemption of their units in ac- cordance with the valuation interval of the UCITS. The Management Company may however temporarily suspend the redemption of the units in the event of exceptional circumstances, and may then redeem the units only at a later date and in accordance with the then valid price (also see in detail "Suspension of the calculation of the net asset value and the issue, the redemption and the conversion of units"). This price may be lower than that prior to the suspension of the re- demption. UCITSs whose investment result is very positive during a specific period also owe this success to the suitability of the acting persons and consequently the correct decisions of their management. The composition of the personnel of the fund management may however change. It is possible that new decision-makers may not act so successfully. Insofar as the UCITS invests in interest-bearing securities, it will be exposed to interest rate change risks. If the market interest rate rises, the market value of the interest-bearing securities can fall substantially. This applies in particular to the extent that the assets also include interest-bearing securities with longer residual maturities and low nominal interest re- turns. Unit classes whose reference currency is not the same as the portfolio currency may be hedged against exchange rate fluctuations (hedging). This is intended to protect investors in the respective unit class as far as possible against possible losses brought about by negative exchange rate developments. At the same time, however, they will not be able to benefit fully from positive exchange rate developments. Fluctuations in the volume hedged in the portfolio and ongoing subscrip- tions and redemptions mean that it is not always possible to maintain ▇▇▇▇▇▇ at exactly the same level as the net asset value of the unit class that is being hedged. It is therefore possible that the net asset value per unit in a hedged unit class may not develop identically to the net asset value per unit in a non-hedged unit class. If a benchmark index is used, then a suitable alternative benchmark must be identified if the benchmark is changed or if the index provider does not comply with the Benchmark Regulation. In certain cases this may prove counterproductive.difficult or impossible. If a suitable substitute benchmark cannot be identified, this may have a negative impact on the relevant UCITS or sub- fund. Compliance with the Benchmark Regulation may also result in additional costs for the UCITS or sub-fund in question. Sustainability risk is the negative impact on the value of an investment caused by sustainability factors. Sustainability factors may include environmental, social and/or governance (ESG) aspects and may be exogenous and/or company- specific. Sustainability risks can lea

Derivative Financial Instruments. The UCITS may deploy derivative financial instruments. These may be used not only for hedging purposes, but may also represent part of the investment strategy. The use of derivative financial instruments for hedging purposes can may alter the general risk profile by reducing correspondingly lowering the opportunities and risks. The use of derivative financial instruments for investment and speculative purposes can influence may alter the general risk profile by creating additional, moderate to very strong generating additional opportunities and risks. Derivative financial instruments are not stand-alone independent investment instruments but instruments. Instead, they constitute rights whose value valua- tion is essentially derived primarily from the price, price and the price fluctuations and price expectations of an underlying instrument. Investments In- vestments in derivatives are subject to the general market risk, the management risk, the credit risk and the liquidity risk. Depending on On account of the specific particular features of particular the derivative financial instruments, however, the above aforementioned risks may take on however mani- fest themselves in different characteristics ways and may sometimes on occasion be greater higher than the risks associated with investments of an investment in the underlying instrumentsinstru- ments. The use For this reason the deployment of derivatives therefore requires not only merely an understanding of the underlyingunderlying instrument, but also in-depth thorough knowledge of the derivatives themselvesderivative itself. Derivative financial instruments also involve entail the risk that the AIF will UCITS may suffer a loss because if another party to the derivative transaction fi- nancial instrument (usually as a rule a "counterparty”) fails to meet its fulfil their obligations. The In general, the credit risk associated with exchange-for derivatives that are traded derivatives on a stock market is generally smaller lower than the risk for OTC derivatives because derivatives, as the clearing house that acts office acting as the issuer or counterparty to every derivatives contract of each derivative traded on the stock exchange also guarantees that the transaction will be processedassumes a settle- ment guarantee. To In order to reduce the overall default risksrisk, this guarantee is backed up supported by a daily payment system maintained main- tained by the clearing house under office, which calculates the assets required as cover are calculated every dayto provide this cover. For OTC In the case of derivatives there is nothing traded OTC, no comparable to this clearing house guaranteeoffice guarantee exists, and the AIF must factor UCITS needs to take account of the creditworthiness of every counterparty of derivatives traded OTC derivative counterparty into its assessment of when evaluating the potential credit risk. Derivatives can In addition, liquidation risks also present liquidity risksexist, because certain as specific instruments may be difficult to buy or to sell. If a derivatives transaction is especially large transactions are particularly large, or if the corresponding market in question is not liquid (as may can be the case for OTC derivativesderivatives traded OTC), in it may not be possible at all times to perform transactions comprehensively, or under certain circumstances it may prove impossible to execute in full or the liquidation of the a position may be possible only at extra costentail increased costs. Other Further risks that in conjunction with the use deployment of derivatives may present relate to constitute the inaccurate pricing incorrect price determination or valuation of derivatives. There In addition, it is also the risk possible that derivatives will do not fully correlate exactly with the underlying assets, interest rates and indices. Many derivatives are complex complex, and they are often valued subjectivelysubjectively valued. Inappropriate Improper valuations can result in greater may lead to increased payment claims for cash payment by from counterparties or to a loss of in value for the AIFUCITS. Derivatives do not always correlate directly have a direct or in parallel paral- lel relationship with the value of the assets, interest rates or indices from which they are derived. Therefore For this reason the use of derivatives by the AIF will UCITS does not always be represent an effective means of achieving the AIF's investment objective and on occasion may of the UCITS, but instead can even prove counterproductivehave the reverse effect.

Derivative Financial Instruments. The UCITS or the sub-fund respectively may deploy derivative financial instruments. These may be used not only for hedging purposes, but may also represent part of the investment strategy. The use of derivative financial instruments for hedging purposes can may alter the general risk profile by reducing correspondingly lowering the opportunities and risks. The use of derivative financial instruments for investment and speculative purposes can influence may alter the general risk profile by creating additional, moderate to very strong opportunities generating additional oppor- tunities and risks. Derivative financial instruments are not stand-alone independent investment instruments but instruments. Instead, they constitute rights whose value valua- tion is essentially derived primarily from the price, price and the price fluctuations and price expectations of an underlying instrument. Investments In- vestments in derivatives are subject to the general market risk, the management risk, the credit risk and the liquidity risk. Depending on On account of the specific particular features of particular the derivative financial instruments, however, the above aforementioned risks may take on however mani- fest themselves in different characteristics ways and may sometimes on occasion be greater higher than the risks associated with investments of an investment in the underlying instrumentsinstru- ments. The use For this reason the deployment of derivatives therefore requires not only merely an understanding of the underlyingunderlying instrument, but also in-depth thorough knowledge of the derivatives themselvesderivative itself. Derivative financial instruments also involve entail the risk that the AIF will UCITS or the sub-fund respectively may suffer a loss because another if an- other party to the derivative transaction financial instrument (usually as a rule a "counterparty”) fails to meet its fulfil their obligations. The In general, the credit risk associated with exchange-for derivatives that are traded derivatives on a stock market is generally smaller lower than the risk for OTC derivatives because derivatives, as the clearing house that acts office acting as the issuer or counterparty to every derivatives contract of each derivative traded on the stock exchange also guarantees that the transaction will be processedassumes a settle- ment guarantee. To In order to reduce the overall default risksrisk, this guarantee is backed up supported by a daily payment system maintained main- tained by the clearing house under office, which calculates the assets required as cover are calculated every dayto provide this cover. For OTC In the case of derivatives there is nothing traded OTC, no comparable to this clearing house guaranteeoffice guarantee exists, and the AIF must factor UCITS needs to take account of the creditworthiness of every counterparty of derivatives traded OTC derivative counterparty into its assessment of when evaluating the potential credit risk. Derivatives can In addition, liquidation risks also present liquidity risksexist, because certain as specific instruments may be difficult to buy or to sell. If a derivatives transaction is especially large transactions are particularly large, or if the corresponding market in question is not liquid (as may can be the case for OTC derivativesderivatives traded OTC), in it may not be possible at all times to perform transactions comprehensively, or under certain circumstances it may prove impossible to execute in full or the liquidation of the a position may be possible only at extra costentail increased costs. Other Further risks that in conjunction with the use deployment of derivatives may present relate to constitute the inaccurate pricing incorrect price determination or valuation of derivatives. There In addition, it is also the risk possible that derivatives will do not fully correlate exactly with the underlying assets, interest rates and indices. Many derivatives are complex complex, and they are often valued subjectivelysubjectively valued. Inappropriate Improper valuations can result in greater may lead to increased payment claims for cash payment by from counterparties or to a loss of in value for the AIFrespective sub-fund. Derivatives do not always correlate directly have a direct or in parallel relationship with the value of the assets, interest rates or indices from which they are derived. Therefore For this reason the use of derivatives by the AIF will respective sub-fund does not always be represent an effective means of achieving the AIF's investment objective and on occasion may of the respective sub-fund, but can instead even prove counterproductivehave the reverse effect.