Common use of Commodity ETFs Clause in Contracts

Commodity ETFs. A commodity is a product or resource that is traded primarily on the basis of price, and not on differences in quality or features. Examples include precious metals, many agricultural products, fuels, and minerals. Historically, commodities have been quite complicated to trade, but in recent year’s alternative and simpler means of investing in commodities have arrived. An exchange-traded commodity (ETC) is one such means for investors to invest in specific commodities or a general commodity index, such as cocoa or precious metals. ETCs work by investing in real commodities via future contracts and in doing so track a specific commodity or a general commodity index. The performance of an ETC is likely to be reflective of the performance of the commodity or basket of commodities upon which the ETC is based. ETCs can be traded in the same way as any normal share but can be subject to significant volatility, both in the long term and the short term. Some ETCs are likely to be more volatile than others. Potential investors should be familiar with the nature of the underlying commodity or commodities of any ETC they plan to invest in. Other than the cost of acquiring ETCs, you will not be subject to any margin requirements or financial commitments/liabilities. However, as the value of ETCs may go up or down, when investing in an ETCs there is a risk that you may lose some or all of your original investment. Collective Investment Schemes Collective investment schemes (CIS) are vehicles for pooling the investments of a number of investors in order to obtain professional management for their pooled assets. The purpose of a CIS is to invest the pooled assets for the primary benefit of its investors in accordance with the terms of the relevant offering document or prospectus. The units or shares of an open-ended CIS may at the request of the safer than others. In general, Government Bonds are considered to be subject to less risk than Corporate Bonds. Bond ratings give an indication of an issuer's probability of defaulting, based on an analysis of the issuer's financial condition and profit potential. Other than the cost of acquiring Bonds, you will not be subject to any margin requirements or financial commitments/ liabilities. However, as the value of Bonds may go up or down, when investing in Bonds there is a risk that you may lose some or all of your original investment. Warrants unitholders or shareholders be purchased by the CIS at such frequency as disclosed in the offering document or prospectus of the CIS. Alternatively, a CIS may be closed ended in that its units or shares may not be purchased by the CIS at the request of the unitholders or shareholders throughout the life of the CIS, but instead will be redeemed by the CIS at the end of the investment term or earlier, as described in the offering document or prospectus. By investing in a CIS, investors are electing to have their money managed in accordance with the investment policy for that CIS. The price of the units or shares in a CIS is determined by the value of the assets the CIS holds. Each CIS has a stated investment objective and policy enabling you to invest according to your investment objectives and risk profile. The level of risk will depend on the underlying investments, regulatory status of the CIS, any investment restrictions that may apply, the extent to which the CIS leverages its assets and how well diversified the CIS is. The principle of leverage is to increase the CISs exposure to underlying assets by means of borrowing or other means in the pursuit of higher returns from the amount invested. Leveraging may increase any losses suffered by a CIS. You should be familiar with the nature of the underlying securities in any CIS you plan to invest in. If Xxxxxx advises you to invest in a CIS which is a UCITS, Xxxxxx will provide you with the latest available key investor information document. If Xxxxxx is instructed by you to invest in a CIS, you will be required to confirm that you have reviewed the current CIS's offering documents including, but not limited to, the prospectus, any supplements to the prospectus, key investor information document (in the case of a UCITS), annual reports and other documentation, as appropriate.

Commodity ETFs. A commodity is a product or resource that is traded primarily on the basis of price, and not on differences in quality or features. Examples include precious metals, many agricultural products, fuels, and minerals. Historically, commodities have been quite complicated to trade, but in recent year’s alternative and simpler means of investing in commodities have arrived. An exchange-traded commodity (ETC) is one such means for investors to invest in specific commodities or a general commodity index, such as cocoa or precious metals. ETCs work by investing in real commodities via future contracts and in doing so track a specific commodity or a general commodity index. The performance of an ETC is likely to be reflective of the performance of the commodity or basket of commodities upon which the ETC is based. ETCs can be traded in the same way as any normal share but can be subject to significant volatility, both in the long term and the short term. Some ETCs are likely to be more volatile than others. Potential investors should be familiar with the nature of the underlying commodity or commodities of any ETC they plan to invest in. Other than the cost of acquiring ETCs, you will not be subject to any margin requirements or financial commitments/liabilities. However, as the value of ETCs may go up or down, when investing in an ETCs there is a risk that you may lose some or all of your original investment. Collective Investment Schemes Collective investment schemes (CIS) are vehicles for pooling the investments of a number of investors in order to obtain professional management for their pooled assets. The purpose of a CIS is to invest the pooled assets for the primary benefit of its investors in accordance with the terms of the relevant offering document or prospectus. The units or shares of an open-ended CIS may at the request of the safer than others. In general, Government Bonds are considered to be subject to less risk than Corporate Bonds. Bond ratings give an indication of an issuer's probability of defaulting, based on an analysis of the issuer's financial condition and profit potential. Other than the cost of acquiring Bonds, you will not be subject to any margin requirements or financial commitments/ liabilities. However, as the value of Bonds may go up or down, when investing in Bonds there is a risk that you may lose some or all of your original investment. Warrants unitholders or shareholders be purchased by the CIS at such frequency as disclosed in the offering document or prospectus of the CIS. Alternatively, a CIS may be closed ended in that its units or shares may not be purchased by the CIS at the request of the unitholders or shareholders throughout the life of the CIS, but instead will be redeemed by the CIS at the end of the investment term or earlier, as described in the offering document or prospectus. By investing in a CIS, investors are electing to have their money managed in accordance with the investment policy for that CIS. The price of the units or shares in a CIS is determined by the value of the assets the CIS holds. Each CIS has a stated investment objective and policy enabling you to invest according to your investment objectives and risk profile. The level of risk will depend on the underlying investments, regulatory status of the CIS, any investment restrictions that may apply, the extent to which the CIS leverages its assets and how well diversified the CIS is. The principle of leverage is to increase the CISs exposure to underlying assets by means of borrowing or other means in the pursuit of higher returns from the amount invested. Leveraging may increase any losses suffered by a CIS. You should be familiar with the nature of the underlying securities in any CIS you plan to invest in. If Xxxxxx advises you to invest in a CIS which is a UCITS, Xxxxxx will provide you with the latest available key investor information document. If Xxxxxx is instructed by you to invest in a CIS, you will be required to confirm that you have reviewed the current CIS's offering documents including, but not limited to, the prospectus, any supplements to the prospectus, key investor information document (in the case of a UCITS), annual reports and other documentation, as appropriate.

Commodity ETFs. A commodity is a product or resource that is traded primarily on the basis of price, and not on differences in quality or features. Examples include precious metals, many agricultural products, fuels, and minerals. Historically, commodities have been quite complicated to trade, but in recent year’s alternative and simpler means of investing in commodities have arrived. An exchange-traded commodity (ETC) is one such means for investors to invest in specific commodities or a general commodity index, such as cocoa or precious metals. ETCs work by investing in real commodities via future contracts and in doing so track a specific commodity or a general commodity index. The performance of an ETC is likely to be reflective of the performance of the commodity or basket of commodities upon which the ETC is based. ETCs can be traded in the same way as any normal share but can be subject to significant volatility, both in the long term and the short term. Some ETCs are likely to be more volatile than others. Potential investors should be familiar with the nature of the underlying commodity or commodities of any ETC they plan to invest in. Other than the cost of acquiring ETCs, you will not be subject to any margin requirements or financial commitments/liabilities. However, as the value of ETCs may go up or down, when investing in an ETCs there is a risk that you may lose some or all of your original investment. Collective Investment Schemes Collective investment schemes (CIS) are vehicles for pooling the investments of a number of investors in order to obtain professional management for their pooled assets. The purpose of a CIS is to invest the pooled assets for the primary benefit of its investors in accordance with the terms of the relevant offering document or prospectus. The units or shares of an open-ended CIS may at the request of the safer than others. In general, Government Bonds are considered to be subject to less risk than Corporate Bonds. Bond ratings give an indication of an issuer's probability of defaulting, based on an analysis of the issuer's financial condition and profit potential. Other than the cost of acquiring Bonds, you will not be subject to any margin requirements or financial commitments/ liabilities. However, as the value of Bonds may go up or down, when investing in Bonds there is a risk that you may lose some or all of your original investment. Warrants unitholders or shareholders be purchased by the CIS at such frequency as disclosed in the offering document or prospectus of the CIS. Alternatively, a CIS may be closed ended in that its units or shares may not be purchased by the CIS at the request of the unitholders or shareholders throughout the life of the CIS, but instead will be redeemed by the CIS at the end of the investment term or earlier, as described in the offering document or prospectus. By investing in a CIS, investors are electing to have their money managed in accordance with the investment policy for that CIS. The price of the units or shares in a CIS is determined by the value of the assets the CIS holds. Each CIS has a stated investment objective and policy enabling you to invest according to your investment objectives and risk profile. The level of risk will depend on the underlying investments, regulatory status of the CIS, any investment restrictions that may apply, the extent to which the CIS leverages its assets and how well diversified the CIS is. The principle of leverage is to increase the CISs exposure to underlying assets by means of borrowing or other means in the pursuit of higher returns from the amount invested. Leveraging may increase any losses suffered by a CIS. You should be familiar with the nature of the underlying securities in any CIS you plan to invest in. If Xxxxxx advises you to invest in a CIS which is a UCITS, Xxxxxx will provide you with the latest available key investor information document. If Xxxxxx is instructed by you to invest in a CIS, you will be required to confirm that you have reviewed the current CIS's offering documents including, but not limited to, the prospectus, any supplements to the prospectus, key investor information document (in the case of a UCITS), annual reports and other documentation, as appropriate.

Commodity ETFs. A commodity is a product or resource that is traded primarily on the basis of price, and not on differences in quality or features. Examples include precious metals, many agricultural products, fuels, and minerals. Historically, commodities have been quite complicated to trade, but in recent year’s alternative and simpler means of investing in commodities have arrived. An exchange-traded commodity (ETC) is one such means for investors to invest in specific commodities or a general commodity index, such as cocoa or precious metals. ETCs work by investing in real commodities via future contracts and in doing so track a specific commodity or a general commodity index. The performance of an ETC is likely to be reflective of the performance of the commodity or basket of commodities upon which the ETC is based. ETCs can be traded in the same way as any normal share but can be subject to significant volatility, both in the long term and the short term. Some ETCs are likely to be more volatile than others. Potential investors should be familiar with the nature of the underlying commodity or commodities of any ETC they plan to invest in. Other than the cost of acquiring ETCs, you will not be subject to any margin requirements or financial commitments/liabilities. However, as the value of ETCs may go up or down, when investing in an ETCs there is a risk that you may lose some or all of your original investment. Collective Investment Schemes Collective investment schemes (CIS) are vehicles for pooling the investments of a number of investors in order to obtain professional management for their pooled assets. The purpose of a CIS is to invest the pooled assets for the primary benefit of its investors in accordance with the terms of the relevant offering document or prospectus. The units or shares of an open-ended CIS may at the request of the safer than others. In general, Government Bonds are considered to be subject to less risk than Corporate Bonds. Bond ratings give an indication of an issuer's probability of defaulting, based on an analysis of the issuer's financial condition and profit potential. Other than the cost of acquiring Bonds, you will not be subject to any margin requirements or financial commitments/ liabilities. However, as the value of Bonds may go up or down, when investing in Bonds there is a risk that you may lose some or all of your original investment. Warrants unitholders or shareholders be purchased by the CIS at such frequency as disclosed in the offering document or prospectus of the CIS. Alternatively, a CIS may be closed ended in that its units or shares may not be purchased by the CIS at the request of the unitholders or shareholders throughout the life of the CIS, but instead will be redeemed by the CIS at the end of the investment term or earlier, as described in the offering document or prospectus. By investing in a CIS, investors are electing to have their money managed in accordance with the investment policy for that CIS. The price of the units or shares in a CIS is determined by the value of the assets the CIS holds. Each CIS has a stated investment objective and policy enabling you to invest according to your investment objectives and risk profile. The level of risk will depend on the underlying investments, regulatory status of the CIS, any investment restrictions that may apply, the extent to which the CIS leverages its assets and how well diversified the CIS is. The principle of leverage is to increase the CISs exposure to underlying assets by means of borrowing or other means in the pursuit of higher returns from the amount invested. Leveraging may increase any losses suffered by a CIS. You should be familiar with the nature of the underlying securities in any CIS you plan to invest in. If Xxxxxx CFIL advises you to invest in a CIS which is a UCITS, Xxxxxx CFIL will provide you with the latest available key investor information document. If Xxxxxx is CFIL are instructed by you to invest in a CIS, you will be required to confirm that you have reviewed the current CIS's offering documents including, but not limited to, the prospectus, any supplements to the prospectus, key investor information document (in the case of a UCITS), annual reports and other documentation, as appropriate.