Common use of Derivative Financial Instruments Clause in Contracts

Derivative Financial Instruments. The Management Company may use derivative transactions for the UCITS for the purpose of hedging, efficient portfolio control and to generate additional returns, and as part of the investment strategy. This may have the effect of raising the loss risk of the UCITS, at least temporarily. The risk associated with derivative financial instruments may not exceed 100 % of the net fund assets. In this conjunc- tion, the total risk may not exceed 200 % of the net fund assets. If a loan is taken out pursuant to UCITSG (Fig. 7.4.2), the overall risk may not exceed 210 % of the respective net fund assets. The Management Company may deploy exclusively the following basic forms of derivatives, or combinations thereof aris- ing out of these derivatives or combinations of other assets that may be acquired for the UCITS, together with these de- rivatives in the UCITS: 7.7.1 Futures contracts on securities, money market instruments, financial indices within the meaning of Art. 9 Para.1 of the Directive 2007/16/EC, interest rates, exchange rates or currencies; 7.7.2 Options or option certificates on securities, money market instruments, financial indices within the meaning of Art. 9 Para.1 of the Directive 2007/16/EC, interest rates, exchange rates or currencies and on futures contracts pursuant to Fig 7.7.1, if: a) exercise is possible either throughout the entire maturity or as at the end of the maturity, and; b) the option value is a fraction or a multiple of the difference between the strike price and the market price of the underlying security, and is zero if the difference has the respective other minus or plus sign. 7.7.3 Interest rate swaps, currency swaps or interest currency swaps; 7.7.4 Options on swaps pursuant to Fig. 7.7.3, insofar as these exhibit the characteristics described under Fig. 7.7.2 (swaptions); 7.7.5 Credit default swaps, insofar as these serve exclusively and demonstrably to hedge the credit risk of precisely attributable assets of the UCITS. The aforementioned financial instruments may either be independent assets or integral parts of assets. The Management Company may conclude futures contracts on the account of the UCITS within the framework of the investment principles on the securities and money market instruments that may be acquired for the UCITS as well as on financial indices within the meaning of Art. 9 Para. 1 of the Directive 2007/16/EC, interest rates, exchange rates or cur- rencies. Futures contracts constitute unconditional binding agreements for both contracting parties to buy or to sell on a specific date, the due date, or within a specific period, a specific quantity of a specific underlying security at a price deter- mined in advance. The Management Company may conclude call options or put options on the account of the UCITS within the framework of the investment principles on the securities and money market instruments as well as on financial indices within the meaning of Art. 9 Para. 1 of the Directive 2007/16/EC, interest rates, exchange rates or currencies, and may also trade in warrants. Option transactions entail granting a third party the right, in return for a fee (option premium), to demand the delivery or the acceptance of assets or the payment of a differential, or alternatively to acquire corresponding option rights, during a specific period or at the end of a specific period, at a price agreed in advance (strike price). The options or option certificates must require the exercise thereof during the overall maturity or at the end of the term. In addition, the option value must be a fraction or a multiple of the difference between the strike price and the market price of the underlying security, and is zero if the difference has the respective other minus or plus sign. The Management Company may on the account of the UCITS and within the framework of the investment principles con- clude interest rate swaps, currency swaps and interest-currency swaps. Swaps are exchange contracts where the pay- ment flows or risks underlying the transaction are exchanged between the contracting parties. "Swaptions" are options on swaps. Such swaptions may be acquired on the account of the UCITS only if these comprise a combination of the above-described options and swaps. A swaption constitutes the right, but not the obligation, to enter at a specific time or within a specific period into a swap whose terms and conditions have been precisely defined. In other respects the principles set out in conjunction with option transactions are applicable. Credit default swaps are credit derivatives that make it possible to transfer one potential loan default volume to another. In return for assuming the credit default risk, the seller of the risk pays a premium to his contracting party. The Manage- ment Company may only acquire simple, standardised credit default swaps for the UCITS that are deployed to hedge individual credit risks within the UCITS. In other respects the information set out under swaps is analogously applicable. The Management Company may also acquire the above-described financial instruments if these are certificated in secu- rities. In this conjunction, the transactions that are the object of the financial instruments may also be only partially con- tained in securities (e.g. warrant-linked bonds). The statements relating to opportunities and risks are correspondingly applicable to such certificated financial instruments, although subject to the caveat that the loss risk in the case of certifi- cated financial instruments is limited to the value of the security. The Management Company may conclude derivative transactions that are approved for trade on a stock exchange or that are obtained from another organised market, as well as so-called over-the-counter (OTC) transactions. The Management Company may perform derivatives transactions that are not approved for trade on a stock exchange or obtained from another organised market only with suitable banks or financial services providers on the basis of standard- ised framework agreements. In the case of OTC derivative transactions, the counterparty risk relating to a contractual party shall be limited to 5 % of the value of the fund assets. If the contracting party is a bank domiciled in the European Union, the European Economic Area or a third-party state with a comparable level of supervision, then the counterparty risk may amount to up to 10 % of the value of the fund assets. OTC derivatives transactions that are performed with the central clearing office of a stock exchange or other organised market as contracting party, shall not be taken into account for the counterparty limit if the derivatives are subject to a daily valuation at market prices with a daily margin offset. Claims of the fund against an intermediary trader shall however be taken into account for the limit, even if the derivative is traded on a stock exchange or other organised market. The aforementioned methods and instruments may if necessary be extended by the Company if other instruments are offered on the market that correspond to the investment objective and if the UCITS is permitted to apply these.

Derivative Financial Instruments. The Management Company may use derivative transactions for the UCITS sub-funds for the purpose of hedging, efficient portfolio port- folio control and to generate additional returns, and as part of the investment strategy. This may have the effect of raising the loss risk of the UCITSsub-fund, at least temporarily. The risk associated with derivative financial instruments may not exceed 100 % of the respective net sub-fund assets. In this conjunc- tionconjunction, the total risk may not exceed 200 % of the respective net sub-fund assets. If a loan is taken out pursuant pursu- ant to UCITSG (Fig. 7.4.2Fig.7.4.2), the overall risk may not exceed 210 % of the respective net sub-fund assets. The Management Company may deploy exclusively the following basic forms of derivatives, or combinations thereof aris- ing arising out of these derivatives or combinations of other assets that which may be acquired for the UCITSsub-funds, together with these de- rivatives derivatives in the UCITSrespective sub-funds: 7.7.1 Futures contracts on securities, money market instruments, financial indices within the meaning of Art. 9 Para.1 of the Directive 2007/16/EC, interest rates, exchange rates or currencies; 7.7.2 Options or option certificates on securities, money market instruments, financial indices within the meaning of Art. 9 Para.1 of the Directive 2007/16/EC, interest rates, exchange rates or currencies and on futures contracts pursuant to Fig 7.7.1Fig7.7.1, if: a) exercise is possible either throughout the entire maturity or as at the end of the maturity, and; b) the option value is a fraction or a multiple of the difference between the strike price and the market price of the underlying security, and is zero if the difference has the respective other minus or plus sign. 7.7.3 Interest rate swaps, currency swaps or interest currency swaps; 7.7.4 Options on swaps pursuant to Fig. 7.7.3Fig.7.7.3, insofar as these exhibit the characteristics described under Fig. 7.7.2 Fig.7.7.2 (swaptionsswap options); 7.7.5 Credit default swaps, insofar as these serve exclusively and demonstrably to hedge the credit risk of precisely attributable assets of the UCITSUCITS or of its sub-funds respectively. The aforementioned financial instruments may either be independent assets or integral parts of assets. The Management Company may conclude futures contracts on the account of the UCITS sub-funds within the framework of the investment principles on the securities and money market instruments that which may be acquired for the UCITS sub-funds as well as on financial indices within the meaning of Art. 9 Para. 1 of the Directive 2007/16/EC, interest rates, exchange rates or cur- renciescurrencies. Futures contracts constitute unconditional binding agreements for both contracting parties to buy or to sell on a specific date, the due date, or within a specific period, a specific quantity of a specific underlying security at a price deter- mined determined in advance. The Management Company may conclude call options or put options on the account of the UCITS within the framework of the investment principles on the securities and money market instruments as well as on financial indices within the meaning of Art. 9 Para. 1 of the Directive 2007/16/EC, interest rates, exchange rates or currencies, and may also trade in warrants. Option transactions entail granting a third party the right, in return for a fee (option premium), to demand the delivery or the acceptance of assets or the payment of a differential, or alternatively to acquire corresponding option rights, during a specific period or at the end of a specific period, at a price agreed in advance (strike price). The options or option certificates must require the exercise thereof during the overall maturity or at the end of the term. In addition, the option value must be a fraction or a multiple of the difference between the strike price and the market price of the underlying security, and is zero if the difference has the respective other minus or plus sign. The Management Company may on the account of the UCITS and within the framework of the investment principles con- clude interest rate swaps, currency swaps and interest-currency swaps. Swaps are exchange contracts where the pay- ment flows or risks underlying the transaction are exchanged between the contracting parties. "Swaptions" are options on swaps. Such swaptions may be acquired on the account of the UCITS only if these comprise a combination of the above-described options and swaps. A swaption constitutes the right, but not the obligation, to enter at a specific time or within a specific period into a swap whose terms and conditions have been precisely defined. In other respects the principles set out in conjunction with option transactions are applicable. Credit default swaps are credit derivatives that make it possible to transfer one potential loan default volume to another. In return for assuming the credit default risk, the seller of the risk pays a premium to his contracting party. The Manage- ment Company may only acquire simple, standardised credit default swaps for the UCITS that are deployed to hedge individual credit risks within the UCITS. In other respects the information set out under swaps is analogously applicable. The Management Company may also acquire the above-described financial instruments if these are certificated in secu- rities. In this conjunction, the transactions that are the object of the financial instruments may also be only partially con- tained in securities (e.g. warrant-linked bonds). The statements relating to opportunities and risks are correspondingly applicable to such certificated financial instruments, although subject to the caveat that the loss risk in the case of certifi- cated financial instruments is limited to the value of the security. The Management Company may conclude derivative transactions that are approved for trade on a stock exchange or that are obtained from another organised market, as well as so-called over-the-counter (OTC) transactions. The Management Company may perform derivatives transactions that are not approved for trade on a stock exchange or obtained from another organised market only with suitable banks or financial services providers on the basis of standard- ised framework agreements. In the case of OTC derivative transactions, the counterparty risk relating to a contractual party shall be limited to 5 % of the value of the fund assets. If the contracting party is a bank domiciled in the European Union, the European Economic Area or a third-party state with a comparable level of supervision, then the counterparty risk may amount to up to 10 % of the value of the fund assets. OTC derivatives transactions that are performed with the central clearing office of a stock exchange or other organised market as contracting party, shall not be taken into account for the counterparty limit if the derivatives are subject to a daily valuation at market prices with a daily margin offset. Claims of the fund against an intermediary trader shall however be taken into account for the limit, even if the derivative is traded on a stock exchange or other organised market. The aforementioned methods and instruments may if necessary be extended by the Company if other instruments are offered on the market that correspond to the investment objective and if the UCITS is permitted to apply these.

Derivative Financial Instruments. The Management Company may use derivative transactions for the UCITS sub-funds for the purpose of hedging, efficient portfolio port- folio control and to generate additional returns, and as part of the investment strategy. This may have the effect of raising the loss risk of the UCITSsub-fund, at least temporarily. The risk associated with derivative financial instruments may not exceed 100 % of the respective net sub-fund assets. In this conjunc- tionconjunction, the total risk may not exceed 200 % of the respective net sub-fund assets. If a loan is taken out pursuant pursu- ant to UCITSG (Fig. 7.4.2.), the overall risk may not exceed 210 % of the respective net sub-fund assets. The Management Company may deploy exclusively the following basic forms of derivatives, or combinations thereof aris- ing out of these derivatives or combinations of other assets that may be acquired for the UCITSsub-funds, together with these de- rivatives derivatives in the UCITSrespective sub-funds: 7.7.1 7.7.1. Futures contracts on securities, money market instruments, financial indices within the meaning of Art. 9 Para.1 of the Directive 2007/16/EC, interest rates, exchange rates or currencies; 7.7.2 7.7.2. Options or option certificates on securities, money market instruments, financial indices within the meaning of Art. 9 Para.1 of the Directive 2007/16/EC, interest rates, exchange rates or currencies and on futures contracts pursuant to Fig 7.7.1., if: a) exercise is possible either throughout the entire maturity or as at the end of the maturity, and; b) the option value is a fraction or a multiple of the difference between the strike price and the market price of the underlying security, and is zero if the difference has the respective other minus or plus sign. 7.7.3 7.7.3. Interest rate swaps, currency swaps or interest currency swaps; 7.7.4 7.7.4. Options on swaps pursuant to Fig. 7.7.3., insofar as these exhibit the characteristics described under Fig. 7.7.2 7.7.2. (swaptions); 7.7.5 7.7.5. Credit default swaps, insofar as these serve exclusively and demonstrably to hedge the credit risk of precisely attributable assets of the UCITSUCITS or of its sub-funds respectively. The aforementioned financial instruments may either be independent assets or integral parts of assets. The Management Company may conclude futures contracts on the account of the UCITS sub-funds within the framework of the investment principles on the securities and money market instruments that may be acquired for the UCITS sub-funds as well as on financial indices within the meaning of Art. 9 Para. 1 of the Directive 2007/16/EC, interest rates, exchange rates or cur- renciescurrencies. Futures contracts constitute unconditional binding agreements for both contracting parties to buy or to sell on a specific date, the due date, or within a specific period, a specific quantity of a specific underlying security at a price deter- mined de- termined in advance. The Management Company may conclude call options or put options on the account of the UCITS within the framework of the investment principles on the securities and money market instruments as well as on financial indices within the meaning of Art. 9 Para. 1 of the Directive 2007/16/EC, interest rates, exchange rates or currencies, and may also trade in warrants. Option transactions entail granting a third party the right, in return for a fee (option premium), to demand the delivery or the acceptance of assets or the payment of a differential, or alternatively to acquire corresponding option rights, during a specific period or at the end of a specific period, at a price agreed in advance (strike price). The options or option certificates must require the exercise thereof during the overall maturity or at the end of the term. In addition, the option value must be a fraction or a multiple of the difference between the strike price and the market price of the underlying security, and is zero if the difference has the respective other minus or plus sign. The Management Company may on the account of the UCITS and within the framework of the investment principles con- clude interest rate swaps, currency swaps and interest-currency swaps. Swaps are exchange contracts where the pay- ment flows or risks underlying the transaction are exchanged between the contracting parties. "Swaptions" are options on swaps. Such swaptions may be acquired on the account of the UCITS only if these comprise a combination of the above-described options and swaps. A swaption constitutes the right, but not the obligation, to enter at a specific time or within a specific period into a swap whose terms and conditions have been precisely defined. In other respects the principles set out in conjunction with option transactions are applicable. Credit default swaps are credit derivatives that make it possible to transfer one potential loan default volume to another. In return for assuming the credit default risk, the seller of the risk pays a premium to his contracting party. The Manage- ment Company may only acquire simple, standardised credit default swaps for the UCITS that are deployed to hedge individual credit risks within the UCITS. In other respects the information set out under swaps is analogously applicable. The Management Company may also acquire the above-described financial instruments if these are certificated in secu- rities. In this conjunction, the transactions that are the object of the financial instruments may also be only partially con- tained in securities (e.g. warrant-linked bonds). The statements relating to opportunities and risks are correspondingly applicable to such certificated financial instruments, although subject to the caveat that the loss risk in the case of certifi- cated financial instruments is limited to the value of the security. The Management Company may conclude derivative transactions that are approved for trade on a stock exchange or that are obtained from another organised market, as well as so-called over-the-counter (OTC) transactions. The Management Company may perform derivatives transactions that are not approved for trade on a stock exchange or obtained from another organised market only with suitable banks or financial services providers on the basis of standard- ised framework agreements. In the case of OTC derivative transactions, the counterparty risk relating to a contractual party shall be limited to 5 % of the value of the fund assets. If the contracting party is a bank domiciled in the European Union, the European Economic Area or a third-party state with a comparable level of supervision, then the counterparty risk may amount to up to 10 % of the value of the fund assets. OTC derivatives transactions that are performed with the central clearing office of a stock exchange or other organised market as contracting party, shall not be taken into account for the counterparty limit if the derivatives are subject to a daily valuation at market prices with a daily margin offset. Claims of the fund against an intermediary trader shall however be taken into account for the limit, even if the derivative is traded on a stock exchange or other organised market. The aforementioned methods and instruments may if necessary be extended by the Company if other instruments are offered on the market that correspond to the investment objective and if the UCITS is permitted to apply these.

Derivative Financial Instruments. The Management Company may use derivative transactions for the UCITS for the purpose of hedging, efficient portfolio control and to generate additional returns, and as part of the investment strategy. This may have the effect of raising the loss risk of the UCITS, at least temporarily. The risk associated with derivative financial instruments may not exceed 100 % of the net fund assets. In this conjunc- tion, the total risk may not exceed 200 % of the net fund assets. If a loan is taken out pursuant to UCITSG (Fig. 7.4.2), the overall risk may not exceed 210 % of the respective net fund assets. The Management Company applies the commitment approach as a risk management procedure. The Management Company may deploy exclusively the following basic forms of derivatives, or combinations thereof aris- ing out of these derivatives or combinations of other assets that may be acquired for the UCITS, together with these de- rivatives in the UCITS: 7.7.1 Futures contracts on securities, money market instruments, financial indices within the meaning of Art. 9 Para.1 (1) of the Directive 2007/16/EC, interest rates, exchange rates or currencies; 7.7.2 Options or option certificates on securities, money market instruments, financial indices within the meaning of Art. 9 Para.1 (1) of the Directive 2007/16/EC, interest rates, exchange rates or currencies and on futures contracts pursuant pur- suant to Fig 7.7.1, Fig. 7.7.1 if: a) exercise is possible either throughout the entire maturity or as at the end of the maturity, and; b) the option value is a fraction or a multiple of the difference between the strike price and the market price of the underlying security, and is zero if the difference has the respective other minus or plus sign. 7.7.3 Interest rate swaps, currency swaps or interest currency swaps; 7.7.4 Options on swaps pursuant to Fig. 7.7.3, insofar as these exhibit the characteristics described under Fig. 7.7.2 (swaptionsSwaptions); 7.7.5 Credit default swaps, insofar as these serve exclusively and demonstrably to hedge the credit risk of precisely attributable assets of the UCITS. The aforementioned financial instruments may either be independent assets or integral parts of assets. The Management Company may conclude futures contracts on the account of the UCITS within the framework of the investment principles on the securities and money market instruments that may be acquired for the UCITS as well as on financial indices within the meaning of Art. 9 Para. 1 (1) of the Directive 2007/16/EC, interest rates, exchange rates or cur- renciescurrencies. Futures contracts constitute unconditional binding agreements for both contracting parties to buy or to sell on a specific date, the due date, or within a specific period, a specific quantity of a specific underlying security at a price deter- mined determined in advance. The Management Company may conclude call options or put options on the account of the UCITS within the framework of the investment principles on the securities and money market instruments as well as on financial indices within the meaning of Art. 9 Para. 1 of the Directive 2007/16/EC, interest rates, exchange rates or currencies, and may also trade in warrants. Option transactions entail granting a third party the right, in return for a fee (option premium), to demand the delivery or the acceptance of assets or the payment of a differential, or alternatively to acquire corresponding option rights, during a specific period or at the end of a specific period, at a price agreed in advance (strike price). The options or option certificates must require the exercise thereof during the overall maturity or at the end of the term. In addition, the option value must be a fraction or a multiple of the difference between the strike price and the market price of the underlying security, and is zero if the difference has the respective other minus or plus sign. The Management Company may on the account of the UCITS and within the framework of the investment principles con- clude interest rate swaps, currency swaps and interest-currency swaps. Swaps are exchange contracts where the pay- ment flows or risks underlying the transaction are exchanged between the contracting parties. "Swaptions" are options on swaps. Such swaptions may be acquired on the account of the UCITS only if these comprise a combination of the above-described options and swaps. A swaption constitutes the right, but not the obligation, to enter at a specific time or within a specific period into a swap whose terms and conditions have been precisely defined. In other respects the principles set out in conjunction with option transactions are applicable. Credit default swaps are credit derivatives that make it possible to transfer one potential loan default volume to another. In return for assuming the credit default risk, the seller of the risk pays a premium to his contracting party. The Manage- ment Company may only acquire simple, standardised credit default swaps for the UCITS that are deployed to hedge individual credit risks within the UCITS. In other respects the information set out under swaps is analogously applicable. The Management Company may also acquire the above-described financial instruments if these are certificated in secu- rities. In this conjunction, the transactions that are the object of the financial instruments may also be only partially con- tained in securities (e.g. warrant-linked bonds). The statements relating to opportunities and risks are correspondingly applicable to such certificated financial instruments, although subject to the caveat that the loss risk in the case of certifi- cated financial instruments is limited to the value of the security. The Management Company may conclude derivative transactions that are approved for trade on a stock exchange or that are obtained from another organised market, as well as so-called over-the-counter (OTC) transactions. The Management Company may perform derivatives transactions that are not approved for trade on a stock exchange or obtained from another organised market only with suitable banks or financial services providers on the basis of standard- ised framework agreements. In the case of OTC derivative transactions, the counterparty risk relating to a contractual party shall be limited to 5 % of the value of the fund assets. If the contracting party is a bank domiciled in the European Union, the European Economic Area or a third-party state with a comparable level of supervision, then the counterparty risk may amount to up to 10 % of the value of the fund assets. OTC derivatives transactions that are performed with the central clearing office of a stock exchange or other organised market as contracting party, shall not be taken into account for the counterparty limit if the derivatives are subject to a daily valuation at market prices with a daily margin offset. Claims of the fund against an intermediary trader shall however be taken into account for the limit, even if the derivative is traded on a stock exchange or other organised market. The aforementioned methods and instruments may if necessary be extended by the Company if other instruments are offered on the market that correspond to the investment objective and if the UCITS is permitted to apply these.