Common use of Hedging Activities Clause in Contracts

Hedging Activities. If a Sub-Fund makes investments that are denominated in a currency different from its base currency (as set out in Annex A), the Management Company may enter into currency hedging transactions to hedge against exchange rate fluctuations between such investments and the Sub-Fund. These hedging activities may cause both profit and loss, as the case may be. There can be no assurance that the currency hedging program will be entirely successful. The Management Company is not required to enter into hedging transactions and may terminate any existing arrangements. The profits and losses of such currency hedging will be allocated to the Sub-Fund. If a Class is issued in a currency different from the base currency of that Sub-Fund (as set out in Annex A), the Management Company may enter into currency hedging transactions to hedge against exchange rate fluctuations between such Class and the Sub-Fund. These hedging activities may cause both profit and loss, as the case may be. There can be no assurance that the currency hedging program will be entirely successful. The Management Company may terminate the currency hedging program. The profits and losses of such currency hedging will be allocated to the relevant Class.