Limitations Relating to Strategies and Instruments. (to be applied on a per-Company basis) (a) Hedging. The Companies may engage in hedging transactions, provided that the hedge continues to be effective according to the Companies’ evaluation procedures (which will incorporate certain derivative related information provided by the Investment Manager) and each Company complies with the following quantitative limitations: • The aggregate financial statement value of options, swaptions, caps, floors and warrants not attached to another financial instrument that are purchased by a Company and used in hedging transactions shall not exceed 7.5% of the market value of such Company’s invested assets (admitted assets for life insurance companies). • The aggregate financial statement value of options, swaptions, caps and floors written by a Company for hedging transactions shall not exceed 3% of the market value of the such Company’s invested assets (admitted assets for life insurance companies). • The aggregate potential exposure of collars, swaps, swaptions, forwards and futures used in hedging transactions shall not exceed 6.5% of a Company’s invested assets (admitted assets for life insurance companies).
Appears in 2 contracts
Sources: Investment Management Agreement (Symetra Financial CORP), Investment Management Agreement (Symetra Financial CORP)