Borrowing and Leverage Sample Clauses

Borrowing and Leverage. Borrowing The Company may only borrow on a temporary basis for the account of the Fund and the aggregate amount of such borrowings may not exceed 10% of the Net Asset Value of the Fund. In accordance with the provisions of the Regulations, the Company may charge the assets of the Fund as security for borrowings of the Fund. Leverage The Fund may utilise FDI as referred to in the section headed "Use of Derivatives and Efficient Portfolio Management Techniques" above. The Fund will engage in FDI and to the extent that the commitment approach does not adequately capture the global exposure of the portfolio, the Value at Risk (“VaR”) methodology will be considered the appropriate methodology to calculate the Fund's global exposure and market risk, taking into account the investment objective and policies of the Fund and the complexity of the FDI used. The Fund will be leveraged as a result of its use of FDI and may therefore generate a notional exposure above 100 per cent of the Net Asset Value of the Fund when calculated using VaR methodology. VaR is the advanced risk measurement methodology used to assess the Fund’s market risk. This leverage effect entails greater risk for investors. Investors should be aware that VaR is a way of measuring the maximum potential loss at a given confidence level (probability) over a specific time period under normal market conditions. The Fund could however be exposed to losses which are much greater than envisaged by VaR, more so under abnormal market conditions. It should be noted that VaR does not explicitly measure leverage; rather, VaR is a statistical risk measure and the actual loss of a particular transaction or to the Fund overall may materially exceed the loss indicated by the use of VaR. The level of leverage (calculated as a sum of the notional exposure of FDI being utilised by the Fund) under normal circumstances is not expected to be more than 125% of the Net Asset Value of the Fund. It is possible that leverage may exceed this range and the Fund may be subject to higher leverage levels from time to time. The expected level of leverage range is calculated based on the sum of the absolute value of notionals of the derivatives used, in accordance with the Central Bank Rules. This figure does not take into account any netting and hedging arrangements that the Fund has in place at any time even though these netting and hedging arrangements are used for risk reduction purposes and is therefore not a risk-adjusted met...

Borrowing and Leverage