Common use of Collateral policy and investment of collateral General Clause in Contracts

Collateral policy and investment of collateral General. In conjunction with transactions in OTC financial derivatives and efficient portfolio management techniques, the Manage- ment Company can in the name and on the account of the fund take receipt of collateral in order to reduce its counter- party risk. Received collateral must be deposited for the fund with the Custodian or with its agent. This section describes the collateral policy applied by the Management Company in these cases. All of the assets received by the management company in the name and on the account of the UCITS (securities lending, securities repurchase transactions, reverse repurchase transactions) within the context of efficient portfolio management techniques shall be treated as collateral within the meaning of this section. The Management Company can use the collateral it receives to reduce the counterparty risk, provided that it adheres to the criteria set out in the respective applicable statutory provisions, regulations and guidelines issued by the FMA, above all in terms of liquidity, valuation, creditworthiness of the issuer, correlation, risks associated with the administration of collateral and realisability. Collateral should fulfil above all the following conditions: All collateral that does not consist of cash should be of good quality and high liquidity, and should be traded on a regu- lated market or a multilateral trading system with transparent pricing, in order to ensure that they can be sold promptly at a price that corresponds approximately to the valuation before the sale. It should be valued at least daily, and assets that exhibit heightened price volatility should be accepted as collateral only if they are subjected to reasonable conservative discounts (haircuts). They should be issued by a unit that is independent of the counterparty, and should not be expected to correlate strongly with the performance of the counterparty. They should be sufficiently broadly diversified across countries, markets and issuers, with a maximum collective expo- sure of 20% of the net asset value (NAV) of the fund in individual issuers, taking account of all received securities. The fund may deviate with the further regulations set out above under 7.3.5 – 7.3.7. They should, however, be realisable by the Management Company at any time, without recourse to or approval by the counterparty. The Management Company shall stipulate the necessary level of the collateral for transactions with OTC derivatives and for efficient portfolio management techniques by referring to the applicable limits set out in the Sales Prospectus for counterparty risks and taking account of the nature and the characteristics of the transactions, the creditworthiness and the identity of the counterparties as well as the prevailing market conditions. Collateral shall be valued daily on the basis of available market prices and taking account of reasonable conservative discounts (haircuts), that the Management Company prescribes for each investment class on the basis of its rules for haircuts. Depending upon the nature of the received collateral, these rules take account of various factors, such as for example the creditworthiness of the issuer, the duration, the currency, the price volatility of the assets and if necessary the result of liquidity stress tests that the Investment Company has conducted under normal and extraordinary liquidity conditions. The table set out below shows the haircuts that the Management Company considers reasonable on the day of this Prospectus. These respective values are subject to change. Collateral instrument Valuation multiplier (%) If the Management Company takes receipt of collateral in a form other than cash, it may not sell, invest or encumber this. If the Management Company takes receipt of collateral in the form of cash, this: a) may be invested as deposits at banks that are headquartered in a member state or, if their headquarters are lo- cated in a third party state, shall be subject to conservative investment rules that are deemed by the FMA to be equivalent to the investment rules of Community law; b) in government bonds of first-class quality; c) may be used for reverse repurchase transactions, insofar as the transactions are performed with banks that are subject to conservative supervision, and the Management Company is able at any time to demand the return of the full amount of the cash including accrued sums; and/or d) may be invested in short-term money market funds in accordance with the definition in the Guideline on a Common Definition of European Money Market Funds). The invested cash collateral should be diversified in accordance with the diversification criteria that are applicable to col- lateral that was not provided in the form of cash and was described above. A 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, then this shall reduce the sum of the collateral available to the fund for returning to the counterparty when concluding the transaction. The 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 fund suffering a loss.

Collateral policy and investment of collateral General. In conjunction with transactions in OTC financial derivatives and efficient portfolio management techniquesmanagement, the Manage- ment Company Management Com- pany can in the name and on the account of the sub-fund take receipt of collateral in order to reduce its counter- party counterparty risk. Received collateral must be deposited for the sub-fund with the Custodian or with its agent. This section describes the collateral policy applied by the Management Company in these cases. All of the assets received by the management company in the name and on the account of the UCITS sub-fund (securities lending, securities repurchase transactions, reverse repurchase transactions) within the context of efficient portfolio management techniques shall be treated as collateral within the meaning of this section. The Management Company can use the collateral it receives to reduce the counterparty risk, provided that it adheres to the criteria set out in the respective applicable statutory provisions, regulations and guidelines issued by the FMA, above all in terms of liquidity, valuation, creditworthiness of the issuer, correlation, risks associated with the administration of collateral and realisability. Collateral should fulfil above all the following conditions: All collateral that does not consist of cash should be of good quality and high liquidity, and should be traded on a regu- lated regulated market or a multilateral trading system with transparent pricing, in order to ensure that they can be sold promptly at a price that corresponds approximately to the valuation before the sale. It should be valued at least daily, and assets that exhibit heightened price volatility should be accepted as collateral only if they are subjected to reasonable conservative discounts (haircuts). They should be issued by a unit that is independent of the counterparty, and should not be expected to correlate strongly with the performance of the counterparty. They should be sufficiently broadly diversified across countries, markets and issuers, with a maximum collective expo- sure exposure of 20% of the net asset value (NAV) of the sub-fund in individual issuers, taking account of all received securities. The A sub- fund may deviate with the further regulations set out above under 7.3.5 – 7.3.7. They should, however, be realisable by the Management Company at any time, without recourse to or approval by the counterparty. The Management Company shall stipulate the necessary level of the collateral for transactions with OTC derivatives and for efficient portfolio management techniques by referring to the applicable limits set out in the Sales Prospectus sales prospectus for counterparty coun- terparty risks and taking account of the nature and the characteristics of the transactions, the creditworthiness and the identity of the counterparties as well as the prevailing market conditions. Collateral shall be valued daily on the basis of available market prices and taking account of reasonable conservative discounts (haircuts), that the Management Company prescribes for each investment class on the basis of its rules for haircuts. Depending upon the nature of the received collateral, these rules take account of various factors, such as for example the creditworthiness of the issuer, the duration, the currency, the price volatility of the assets and if necessary the result of liquidity stress tests that the Investment Company has conducted under normal and extraordinary liquidity conditionscondi- tions. The table set out below shows the haircuts that the Management Company considers reasonable on the day of this Prospectus. These respective values are subject to change. Collateral instrument Valuation multiplier (%) If the Management Company takes receipt of collateral in a form other than cash, it may not sell, invest or encumber this. If the Management Company takes receipt of collateral in the form of cash, this: a) may be invested as deposits at banks that are headquartered in a member state or, if their headquarters are lo- cated in a third party state, shall be subject to conservative investment rules that are deemed by the FMA to be equivalent to the investment rules of Community law; b) in government bonds of first-class quality; c) may be used for reverse repurchase transactions, insofar as the transactions are performed with banks that are subject to conservative supervision, and the Management Company is able at any time to demand the return of the full amount of the cash including accrued sums; and/or d) may be invested in short-term money market funds in accordance with the definition in the Guideline on a Common Definition of European Money Market Funds). The invested cash collateral should be diversified in accordance with the diversification criteria that are applicable to col- lateral that was not provided in the form of cash and was described above. A 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, then this shall reduce the sum of the collateral available to the fund for returning to the counterparty when concluding the transaction. The 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 fund suffering a loss.

Collateral policy and investment of collateral General. In conjunction with transactions in OTC financial derivatives and efficient portfolio port- folio management techniques, the Manage- ment Company management company can accept col- lateral in the name and on for the account of the fund take receipt of collateral in order UCITS to reduce its counter- party counterpar- ty risk. Received collateral must Collateral received shall be deposited held in safekeeping for the fund with UCITS by the Custodian depositary or with its agent. This section describes explains the collateral policy applied by the Management Company management company in these such cases. All Within the meaning of the this section, all assets received by the management company in the name and on for the account of the UCITS (securities lending, securities repurchase asset-based annuities transactions, reverse repurchase annuity transactions) within the context scope of efficient portfolio management manage- ment techniques shall be treated as collateral within the meaning of this sectioncollateral. The Management Company management company can use the collateral it receives to reduce the counterparty risk, risk provided that it adheres to abides by the criteria set out forth in the respective applicable statutory provisionslaws, regulations regulations, and guidelines FMA-issued by the FMAguidelines, above all in terms of liquidityparticularly with respect to liquidi- ty, valuation, creditworthiness of the issuerissuer credit rating, correlation, risks associated in conjunction with the administration ad- ministration of collateral and realisabilityrealizability. Collateral Mainly, collateral should fulfil above all fulfill the following fol- lowing conditions: All non-cash forms of collateral that does not consist of cash should be of good quality and high liquidity, liquidity and should be traded on a regu- lated regulated market or a multilateral trading system with transparent pricing, in order to ensure pricing so that they can quickly be sold promptly at a price that roughly corresponds approximately to with the valuation before the prior to a sale. It They should be valued at least daily, and assets that exhibit heightened subject to high price volatility should be accepted as collateral only if they are subjected to reasonable an adequately conservative discounts discount (haircuts)haircut) is applied. They should be issued by a unit an entity that is independent of the counterparty, and should not be expected to correlate strongly affiliated with the performance counterparty and is therefore not likely to exhibit any strong correlation with the perfor- xxxxx of the counterparty. They should be sufficiently broadly diversified across countries, markets markets, and issuers, with issuers and correspond to a maximum collective expo- sure aggregate commitment of 20% of the net asset value (NAV) of the fund UCITS in individual issuers, taking account any single issuer under consideration of all received securitiescollat- eral received. The fund If it complies with the rules in 6.3.5 – 6.3.7 above, the UCITS may deviate with the further regulations set out above under 7.3.5 – 7.3.7from that benchmark. They shouldAt all times, however, they should be realisable realizable by the Management Company at any time, management company without recourse to or approval by the counterparty. The Management Company prospectus: Investment regulations The management company shall stipulate determine the necessary level required worth of the collateral collat- eral for transactions with OTC derivatives and for efficient portfolio management manage- ment techniques by referring to under consideration of the applicable limits set out forth in the Sales Prospectus prospectus for counterparty risks and taking account under consideration of the nature and the characteristics features of the transactions, the creditworthiness and the creditworthiness, identity of the counterparties as well as the prevailing counterparties, and prevail- ing market conditions. Collateral shall be valued on a daily basis based on the basis of available market prices and taking account under consideration of reasonable adequately conservative discounts (haircuts), ) that the Management Company prescribes management company will determine for each investment class based on the basis of its rules for haircuts. Depending upon on the nature type of the received collateralcollateral received, these rules take into account of various factors, such as for example the creditworthiness of the issuer's creditworthiness, the durationdu- ration, the currency, the price volatility of the assets and assets, and, if necessary applicable, the result re- sults of liquidity stress tests that the Investment Company has conducted management company performs under normal and extraordinary liquidity conditions. The table set out below shows lists the haircuts that the Management Company considers reasonable management company deems adequate on the day issue date of this Prospectusprospectus. These respective The values are subject to change. Collateral instrument Valuation multiplier rate (%) Account balance (in the reference currency of the UCITS) 95 Account balance (not in the reference currency of the UCITS) 85 Government bonds [debt securities issued or expressly guaranteed by the following countries (without implicitly guaranteed liabilities, for example): Austria, Belgium, Denmark, France, Germany, the Netherlands, Sweden, the United Kingdom, and the USA to the extent that these countries have a minimum rating of AA-/Aa3 and such debt securities can be valued at market prices daily (mark to market)] Duration ≤ 1 year 90 Duration > 1 year and residual duration ≤ 5 years 85 Duration > 5 years and residual duration ≤ 10 years 80 Corporates (debt securities issue or expressly guaranteed by a company (except financial institutes) and (i) rated at least AA-/Aa3, (ii) with a resid- ual duration of no more than 10 years and (iii) denominated in an OECD currency) Duration ≤ 1 year 90 Duration > 1 year and residual duration ≤ 5 years 85 Duration > 5 years and residual duration ≤ 10 years 80 If the Management Company takes receipt of management company accepts collateral in a form other than cash, it may is not al- lowed to sell, invest invest, or encumber thisthe collateral. If the Management Company takes receipt of management company accepts collateral in the form of cash, this: a) may it can: ♦ be invested as deposits at banks that are with credit institutes headquartered in a member state or, if their headquarters are lo- cated headquartered in a third party statecountry, shall be are subject to conservative investment su- pervisory rules that are deemed by the FMA to be as being equivalent to the investment su- pervisory rules of Community law; b) member states; ♦ be invested in top-quality government bonds of first-class quality; c) may bonds; ♦ be used for reverse repurchase transactions, insofar as the annuities transactions if they are performed conducted with banks that are credit institutes subject to a conservative supervision, supervisory authority and the Management Company manage- ment company is able at any time always in a position to demand the return of the full amount of the cash repayment including amounts accrued sumsthereon; and/or d) may and/or The prospectus: Investment regulations ♦ be invested in short-term money market funds in accordance with according to the definition in the Guideline Guidelines on a Common Definition of European Money Market Funds). The invested cash collateral should be diversified in accordance with the diversification criteria di- versification requirements that are applicable apply to col- lateral that was collateral which is not provided in the form of cash account balances and was as described above. A fund The UCITS may suffer incur losses when investing the cash collateral that it has received. A Such a loss of this nature may can incur as a result from a decline in the value of the investments performed using depreciation of the received investment instruments pur- chased with the cash collateral. If the value of the invested cash collateral fallsdeclines, then this shall reduce the sum of reduces the collateral amount that was made available to the fund UCITS and is subsequently due for returning repayment to the counterparty when concluding the transactioncounterparty. The fund UCITS would be required have to cover offset the monetary difference in value between the original originally received collateral and the sum available for returning amount repayable to the counterparties that counterparty, so the UCITS would lead to the fund suffering incur a loss.

Collateral policy and investment of collateral General. In conjunction with transactions in OTC financial derivatives and efficient portfolio port- The prospectus: Investment regulations folio management techniques, the Manage- ment Company management company can accept col- lateral in the name and on for the account of the fund take receipt of collateral in order UCITS to reduce its counter- party counterpar- ty risk. Received collateral must Collateral received shall be deposited held in safekeeping for the fund with UCITS by the Custodian depositary or with its agent. This section describes explains the collateral policy applied by the Management Company management company in these such cases. All Within the meaning of the this section, all assets received by the management company in the name and on for the account of the UCITS (securities lending, securities repurchase asset-based annuities transactions, reverse repurchase annuity transactions) within the context scope of efficient portfolio management manage- ment techniques shall be treated as collateral within the meaning of this sectioncollateral. The Management Company management company can use the collateral it receives to reduce the counterparty risk, risk provided that it adheres to abides by the criteria set out forth in the respective applicable statutory provisionslaws, regulations regulations, and guidelines FMA-issued by the FMAguidelines, above all in terms of liquidityparticularly with respect to liquidi- ty, valuation, creditworthiness of the issuerissuer credit rating, correlation, risks associated in conjunction with the administration ad- ministration of collateral and realisabilityrealizability. Collateral Mainly, collateral should fulfil above all fulfill the following fol- lowing conditions: All non-cash forms of collateral that does not consist of cash should be of good quality and high liquidity, liquidity and should be traded on a regu- lated regulated market or a multilateral trading system with transparent pricing, in order to ensure pricing so that they can quickly be sold promptly at a price that roughly corresponds approximately to with the valuation before the prior to a sale. It They should be valued at least daily, and assets that exhibit heightened subject to high price volatility should be accepted as collateral only if they are subjected to reasonable an adequately conservative discounts discount (haircuts)haircut) is applied. They should be issued by a unit an entity that is independent of the counterparty, and should not be expected to correlate strongly affiliated with the performance counterparty and is therefore not likely to exhibit any strong correlation with the perfor- xxxxx of the counterparty. They should be sufficiently broadly diversified across countries, markets markets, and issuers, with issuers and correspond to a maximum collective expo- sure aggregate commitment of 20% of the net asset value (NAV) of the fund UCITS in individual issuers, taking account any single issuer under consideration of all received securitiescollat- eral received. The fund If it complies with the rules in 6.3.5 – 6.3.7 above, the UCITS may deviate with the further regulations set out above under 7.3.5 – 7.3.7from that benchmark. They shouldAt all times, however, they should be realisable realizable by the Management Company at any time, management company without recourse to or approval by the counterparty. The Management Company management company shall stipulate determine the necessary level required worth of the collateral collat- eral for transactions with OTC derivatives and for efficient portfolio management manage- ment techniques by referring to under consideration of the applicable limits set out forth in the Sales Prospectus prospectus for counterparty risks and taking account under consideration of the nature and the characteristics features of the transactions, the creditworthiness and the creditworthiness, identity of the counterparties as well as the prevailing counterparties, and prevail- ing market conditions. Collateral shall be valued on a daily basis based on the basis of available market prices and taking account under consideration of reasonable adequately conservative discounts (haircuts), ) that the Management Company prescribes management company will determine for each investment class based on the basis of its rules for haircuts. Depending upon on the nature type of the received collateralcollateral received, these rules take into account of various factors, such as for example the creditworthiness of the issuer's creditworthiness, the durationdu- ration, the currency, the price volatility of the assets and assets, and, if necessary applicable, the result re- sults of liquidity stress tests that the Investment Company has conducted management company performs under normal and extraordinary liquidity conditions. The table set out below shows lists the haircuts that the Management Company considers reasonable management company deems adequate on the day issue date of this Prospectusprospectus. These respective The values are subject to change. Collateral instrument Valuation multiplier Account balance (%in the reference currency of the UCITS) 95 Account balance (not in the reference currency of the UCITS) 85 The prospectus: Investment regulations Government bonds [debt securities issued or expressly guaranteed by the following countries (without implicitly guaranteed liabilities, for example): Austria, Belgium, Denmark, France, Germany, the Netherlands, Sweden, the United Kingdom, and the USA to the extent that these countries have a minimum rating of AA-/Aa3 and such debt securities can be valued at market prices daily (mark to market)] Duration ≤ 1 year 90 Duration > 1 year and residual duration ≤ 5 years 85 Duration > 5 years and residual duration ≤ 10 years 80 Corporates (debt securities issue or expressly guaranteed by a company (except financial institutes) and (i) rated at least AA-/Aa3, (ii) with a resid- ual duration of no more than 10 years and (iii) denominated in an OECD currency) Duration ≤ 1 year 90 Duration > 1 year and residual duration ≤ 5 years 85 Duration > 5 years and residual duration ≤ 10 years 80 If the Management Company takes receipt of management company accepts collateral in a form other than cash, it may is not al- lowed to sell, invest invest, or encumber thisthe collateral. If the Management Company takes receipt of management company accepts collateral in the form of cash, this: a) may it can:  be invested as deposits at banks that are with credit institutes headquartered in a member state or, if their headquarters are lo- cated headquartered in a third party statecountry, shall be are subject to conservative investment su- pervisory rules that are deemed by the FMA to be as being equivalent to the investment su- pervisory rules of Community law; b) member states;  be invested in top-quality government bonds of first-class quality; c) may bonds;  be used for reverse repurchase transactions, insofar as the annuities transactions if they are performed conducted with banks that are credit institutes subject to a conservative supervision, supervisory authority and the Management Company manage- ment company is able at any time always in a position to demand the return of the full amount of the cash repayment including amounts accrued sumsthereon; and/or d) may and/or  be invested in short-term money market funds in accordance with according to the definition in the Guideline Guidelines on a Common Definition of European Money Market Funds). The invested cash collateral should be diversified in accordance with the diversification criteria di- versification requirements that are applicable apply to col- lateral that was collateral which is not provided in the form of cash account balances and was as described above. A fund The UCITS may suffer incur losses when investing the cash collateral that it has received. A Such a loss of this nature may can incur as a result from a decline in the value of the investments performed using depreciation of the received investment instruments pur- chased with the cash collateral. If the value of the invested cash collateral fallsdeclines, then this shall reduce the sum of reduces the collateral amount that was made available to the fund UCITS and is subsequently due for returning repayment to the counterparty when concluding the transactioncounterparty. The fund UCITS would be required have to cover offset the monetary difference in value between the original originally received collateral and the sum available for returning amount repayable to the counterparties that counterparty, so the UCITS would lead to the fund suffering incur a loss.