Common use of Late Trading and Market Timing Clause in Contracts

Late Trading and Market Timing. If there is a suspicion that an applicant conducts late trading or market timing, as described hereunder, the Management Company and/or the Depositary may refuse acceptance of subscriptions, conversions or redemptions until the applicant has dispelled any doubts with regard to the subscription, conversion or redemption. Late trading is the acceptance of an application for subscriptions, conversions or redemptions received after the cut-off time for applications for that specific day provided that the execution of such application is at a price which is calculated and known at the time when this application is accepted. Late trading provides an investor with the possibility to benefit from the knowledge of events or information published after the cut- off time. Such investor therefore has an advantage over those investors who comply with the official cut- off time. This advantage is even more marked when the investor combines late trading with market timing. Market timing is an arbitrage transaction in which an investor systematically subscribes, redeems or converts Units of the same Sub-Fund and/or the same Unit Class on a short-term basis, thereby exploiting time differences and/or errors or weaknesses in the system for calculating the net value of a fund and/or Unit Class.

Late Trading and Market Timing. If there is a suspicion that an applicant conducts late trading or market timing, as described hereunder, the Management Company and/or the Depositary may refuse acceptance of subscriptions, conversions or redemptions until the applicant has dispelled any doubts with regard to the subscription, conversion or redemption. Late trading is the acceptance of an application for subscriptions, conversions or redemptions received after the cut-off time for applications for that specific day provided that the execution of such application is at a price which is calculated and known at the time when this application is accepted. Late trading provides an investor with the possibility to benefit from the knowledge of events or information published after the cut- cut-off time. Such investor therefore has an advantage over those investors who comply with the official cut- cut-off time. This advantage is even more marked when the investor combines late trading with market timing. Market timing is an arbitrage transaction in which an investor systematically subscribes, redeems or converts Units of the same Sub-Fund and/or the same Unit Class on a short-term basis, thereby exploiting time differences and/or errors or weaknesses in the system for calculating the net value of a fund and/or Unit Class.