Common use of Repurchase Agreements Clause in Contracts

Repurchase Agreements. Where stated in Annex A, the Management Company on behalf of a Sub-Fund may enter into repurchase arrangements. Accordingly, the Sub-Fund will bear a risk of loss in the event that the other party to the transaction defaults on its obligation and the Sub-Fund is delayed or prevented from exercising its rights to dispose of the underlying securities. The Sub-Fund will, in particular, be subject to the risk of a possible decline in the value of the underlying securities during the period in which the Sub- Fund seeks to assert its right to them, the risk of incurring expenses associated with asserting those rights and the risk of losing all or a part of the income from the agreement. Collateral Risk. Collateral or margin may be passed by the relevant Sub-Fund to a counterparty or broker in respect of OTC derivative transactions or Securities Financing Transactions. Assets deposited as collateral or margin with brokers may not be held in segregated accounts by the brokers and may therefore become available to the creditors of such brokers in the event of their insolvency or bankruptcy. Where collateral is posted to a counterparty or broker by way of title transfer, the collateral may be re-used by such counterparty or broker for their own purpose, thus exposing the relevant Sub-Fund to additional risk. Risks related to a counterparty's right of re-use of any collateral include that, upon the exercise of such right of re-use, such assets will no longer belong to the relevant Sub-Fund and the Sub-Fund will only have a contractual claim for the return of equivalent assets. In the event of the insolvency of a counterparty the Sub-Fund shall rank as an unsecured creditor and may not recover its assets from the counterparty. More broadly, assets subject to a right of re-use by a counterparty may form part of a complex chain of transactions over which the Management Company or its delegates will not have any visibility or control. Total Return Swaps. In respect of Total Return Swaps, if the volatility or expectation of volatility of the reference asset(s) varies, the market value of the financial instruments may be adversely affected. The relevant Sub-Fund will be subject to the credit risk of the counterparty to the swap, as well as that of the issuer of the reference obligation. If there is a default by the counterparty to a swap contract a Sub-Fund will be limited to contractual remedies pursuant to the agreements related to the transaction. There is no assurance that swap contract counterparties will be able to meet their obligations pursuant to swap contracts or that, in the event of default, the Sub-Fund will succeed in pursuing contractual remedies. A Sub-Fund thus assumes the risk that it may be delayed in or prevented from obtaining payments owed to it pursuant to swap contracts. The value of the index/reference asset underlying a Total Return Swap may differ to the value attributable per Unit due to various factors such as the costs incurred in relation to the Total Return Swap entered into by the Sub-Fund to gain such exposure, fees charged by the Sub-Fund, differences in currency values and costs associated with hedged or unhedged Unit Classes.

Repurchase Agreements. Where stated in Annex A, the Management Company on behalf of a Sub-The Fund may enter invest in securities pursuant to repurchase agreements. Repurchase agreements may be entered into only with a member bank of the Federal Reserve System or primary dealer or an affiliate thereof, in U.S. Government securities or an affiliate thereof. A repurchase arrangementsagreement is a contractual agreement whereby the seller of securities agrees to repurchase the same security at a specified price on a future date agreed upon by the parties. Accordingly, The agreed-upon repurchase price determines the Sub-Fund will bear a yield during the Fund's holding period. The risk of loss in the event that the other party to the transaction defaults on its obligation and the Sub-Fund is delayed or prevented from exercising its rights limited to dispose the ability of the underlying securities. The Subissuer to pay the agreed-Fund willupon repurchase price on the delivery date; however, in particular, be subject to the risk of a possible decline in although the value of the underlying securities during collateral at the period in which time the Sub- Fund seeks to assert its right to them, transaction is entered into always equals or exceeds the risk of incurring expenses associated with asserting those rights and the risk of losing all or a part of the income from the agreement. Collateral Risk. Collateral or margin may be passed by the relevant Subagreed-Fund to a counterparty or broker in respect of OTC derivative transactions or Securities Financing Transactions. Assets deposited as collateral or margin with brokers may not be held in segregated accounts by the brokers and may therefore become available to the creditors of such brokers in the event of their insolvency or bankruptcy. Where collateral is posted to a counterparty or broker by way of title transfer, the collateral may be re-used by such counterparty or broker for their own purpose, thus exposing the relevant Sub-Fund to additional risk. Risks related to a counterparty's right of re-use of any collateral include that, upon the exercise of such right of re-use, such assets will no longer belong to the relevant Sub-Fund and the Sub-Fund will only have a contractual claim for the return of equivalent assets. In the event of the insolvency of a counterparty the Sub-Fund shall rank as an unsecured creditor and may not recover its assets from the counterparty. More broadly, assets subject to a right of re-use by a counterparty may form part of a complex chain of transactions over which the Management Company or its delegates will not have any visibility or control. Total Return Swaps. In respect of Total Return Swapsrepurchase price, if the volatility or expectation of volatility of the reference asset(s) varies, the market value of the financial instruments may be adversely affected. The relevant Sub-Fund will be subject to the credit risk of the counterparty to the swap, as well as that of the issuer of the reference obligation. If collateral declines there is a default by the counterparty to a swap contract a Sub-Fund will be limited to contractual remedies pursuant to the agreements related to the transactionrisk of loss of both principal and interest. There is no assurance that swap contract counterparties will be able to meet their obligations pursuant to swap contracts or that, in In the event of default, the Sub-collateral may be sold but the Fund will succeed might incur a loss if the value of the collateral declines, and might incur disposition costs or experience delays in pursuing contractual remediesconnection with liquidating the collateral. A Sub-In addition, if bankruptcy proceedings are commenced with respect to the seller of the security, realization upon the collateral by the Fund thus assumes the risk that it may be delayed in or prevented from obtaining payments owed to it pursuant to swap contractslimited. In general, for federal income tax purposes, repurchase agreements are treated as collateralized loans secured by the securities "sold." Therefore, amounts earned under such agreements will not be considered tax exempt interest. The value treatment of purchase and sales contracts is less certain. Investment Restrictions The following are fundamental investment restrictions of the index/reference asset underlying Fund and may not be changed without the approval of the holders of a Total Return Swap majority of the Fund's outstanding Common Shares and outstanding Preferred Shares, voting together as a single class, and a majority of the outstanding Preferred Shares, voting as a separate class (which for this purpose and under the 1940 Act means the lesser of (i) 67% of the shares of each class of capital stock represented at a meeting at which more than 50% of the outstanding shares of each class of capital stock are represented or (ii) more than 50% of the outstanding shares of each class of capital stock). The Fund may differ to the value attributable per Unit due to various factors such as the costs incurred in relation to the Total Return Swap entered into by the Sub-Fund to gain such exposure, fees charged by the Sub-Fund, differences in currency values and costs associated with hedged or unhedged Unit Classes.not:

Repurchase Agreements. Where stated in Annex A, the Management Company on behalf of a Sub-The Fund may enter invest in securities pursuant to repurchase agreements. Repurchase agreements may be entered into only with a member bank of the Federal Reserve System or primary dealer or an affiliate thereof, in U.S. Government securities or an affiliate thereof. A repurchase arrangementsagreement is a contractual agreement whereby the seller of securities agrees to repurchase the same security at a specified price on a future date agreed upon by the parties. Accordingly, The agreed-upon repurchase price determines the Sub-Fund will bear a yield during the Fund's holding period. The risk of loss in the event that the other party to the transaction defaults on its obligation and the Sub-Fund is delayed or prevented from exercising its rights limited to dispose the ability of the underlying securities. The Subissuer to pay the agreed-Fund willupon repurchase price on the delivery date; however, in particular, be subject to the risk of a possible decline in although the value of the underlying securities during collateral at the period in which time the Sub- Fund seeks to assert its right to them, transaction is entered into always equals or exceeds the risk of incurring expenses associated with asserting those rights and the risk of losing all or a part of the income from the agreement. Collateral Risk. Collateral or margin may be passed by the relevant Subagreed-Fund to a counterparty or broker in respect of OTC derivative transactions or Securities Financing Transactions. Assets deposited as collateral or margin with brokers may not be held in segregated accounts by the brokers and may therefore become available to the creditors of such brokers in the event of their insolvency or bankruptcy. Where collateral is posted to a counterparty or broker by way of title transfer, the collateral may be re-used by such counterparty or broker for their own purpose, thus exposing the relevant Sub-Fund to additional risk. Risks related to a counterparty's right of re-use of any collateral include that, upon the exercise of such right of re-use, such assets will no longer belong to the relevant Sub-Fund and the Sub-Fund will only have a contractual claim for the return of equivalent assets. In the event of the insolvency of a counterparty the Sub-Fund shall rank as an unsecured creditor and may not recover its assets from the counterparty. More broadly, assets subject to a right of re-use by a counterparty may form part of a complex chain of transactions over which the Management Company or its delegates will not have any visibility or control. Total Return Swaps. In respect of Total Return Swapsrepurchase price, if the volatility or expectation of volatility of the reference asset(s) varies, the market value of the financial instruments may be adversely affected. The relevant Sub-Fund will be subject to the credit risk of the counterparty to the swap, as well as that of the issuer of the reference obligation. If collateral declines there is a default by the counterparty to a swap contract a Sub-Fund will be limited to contractual remedies pursuant to the agreements related to the transactionrisk of loss of both principal and interest. There is no assurance that swap contract counterparties will be able to meet their obligations pursuant to swap contracts or that, in In the event of default, the Sub-collateral may be sold but the Fund will succeed might incur a loss if the value of the collateral declines, and might incur disposition costs or experience delays in pursuing contractual remediesconnection with liquidating the collateral. A Sub-In addition, if bankruptcy proceedings are commenced with respect to the seller of the security, realization upon the collateral by the Fund thus assumes the risk that it may be delayed in or prevented from obtaining payments owed to it pursuant to swap contractslimited. In general, for federal income tax purposes, repurchase agreements are treated as collateralized loans secured by the securities "sold." Therefore, amounts earned under such agreements will not be considered tax exempt interest. The treatment of purchase and sales contracts is less certain. Short Sales The Fund may make short sales of securities. A short sale is a transaction in which the Fund sells a security it does not own in anticipation that the market price of that security will decline. The Fund may make short sales both as a form of hedging to offset potential declines in long positions in similar securities and in order to seek to enhance return. When the Fund makes a short sale, it must borrow the security sold short and deliver collateral to the broker-dealer through which it made the short sale to cover its obligation to deliver the security upon conclusion of the sale. The Fund may have to pay a fee to borrow particular securities and is often obligated to pay over any payments received on such borrowed securities. The Fund's obligation to replace the borrowed security will be secured by collateral deposited with the broker-dealer, usually cash or liquid securities similar to those borrowed. The Fund also will be required to segregate similar collateral with its custodian to the extent, if any, necessary so that the value of both collateral amounts in the aggregate is at all times equal to at least 100% of the current market value of the index/reference asset underlying security sold short. Depending on arrangements made with the broker-dealer from which it borrowed the security regarding payment over any payments received by the Fund on such security, the Fund may not receive any payments (including interest) on its collateral deposited with such broker-dealer. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will incur a Total Return Swap may differ loss. Conversely, if the price declines, the Fund will realize a gain. Any gain will be decreased, and any loss increased, by the transaction costs described above. Although the Fund's gain is limited to the price at which it sold the security short, its potential loss is theoretically unlimited. The Fund also may make short sales "against the box." These transactions will involve either short sales of securities retained in the Fund's portfolio or securities which it has the right to acquire without the payment of further consideration Investment in Other Investment Companies The Fund may invest in other investment companies whose investment objectives and policies are consistent with those of the Fund. In accordance with the 1940 Act, the Fund may invest up to 10% of its total assets in securities of other investment companies. In addition, under the 1940 Act the Fund may not own more than 3% of the total outstanding voting stock of any investment company and not more than 5% of the value attributable per Unit due of the Fund's total assets may be invested in securities of any investment company. The Fund has received an exemptive order from the Commission permitting it to various factors invest in affiliated registered money market funds and in an affiliated private investment company without regard to such as limitations, provided however, that in all cases the costs incurred Fund's aggregate investment of cash in relation to shares of such investment companies shall not exceed 25% of the Total Return Swap entered into by Fund's total assets at any time. If the Sub-Fund to gain acquires shares in investment companies, stockholders would bear both their proportionate share of expenses in the Fund (including management and advisory fees) and, indirectly, the expenses of such exposure, fees charged by the Sub-Fund, differences in currency values investment companies (including management and costs associated with hedged or unhedged Unit Classesadvisory fees).

Repurchase Agreements. Where stated in Annex A, the Management Company on behalf of a Sub-The Fund may enter invest in securities pursuant to repurchase agreements. Repurchase agreements may be entered into only with a member bank of the Federal Reserve System or a primary dealer or an affiliate thereof, in U.S. Government securities. A repurchase arrangementsagreement is a contractual agreement whereby the seller of securities agrees to repurchase the same security at a specified price on a future date agreed upon by the parties. Accordingly, The agreed-upon repurchase price determines the Sub-Fund will bear a yield during the Fund’s holding period. Repurchase agreements are considered to be loans collateralized by the underlying security that is the subject of the repurchase contract. The risk of loss in the event that the other party to the transaction defaults on its obligation and the Sub-Fund is delayed or prevented from exercising its rights limited to dispose the ability of the underlying securities. The Subissuer to pay the agreed-Fund willupon repurchase price on the delivery date; however, in particular, be subject to the risk of a possible decline in although the value of the underlying securities during collateral at the period in which time the Sub- Fund seeks to assert its right to them, transaction is entered into always equals or exceeds the risk of incurring expenses associated with asserting those rights and the risk of losing all or a part of the income from the agreement. Collateral Risk. Collateral or margin may be passed by the relevant Subagreed-Fund to a counterparty or broker in respect of OTC derivative transactions or Securities Financing Transactions. Assets deposited as collateral or margin with brokers may not be held in segregated accounts by the brokers and may therefore become available to the creditors of such brokers in the event of their insolvency or bankruptcy. Where collateral is posted to a counterparty or broker by way of title transfer, the collateral may be re-used by such counterparty or broker for their own purpose, thus exposing the relevant Sub-Fund to additional risk. Risks related to a counterparty's right of re-use of any collateral include that, upon the exercise of such right of re-use, such assets will no longer belong to the relevant Sub-Fund and the Sub-Fund will only have a contractual claim for the return of equivalent assets. In the event of the insolvency of a counterparty the Sub-Fund shall rank as an unsecured creditor and may not recover its assets from the counterparty. More broadly, assets subject to a right of re-use by a counterparty may form part of a complex chain of transactions over which the Management Company or its delegates will not have any visibility or control. Total Return Swaps. In respect of Total Return Swapsrepurchase price, if the volatility or expectation of volatility of the reference asset(s) varies, the market value of the financial instruments may be adversely affected. The relevant Sub-Fund will be subject to the credit risk of the counterparty to the swap, as well as that of the issuer of the reference obligation. If collateral declines there is a default by the counterparty to a swap contract a Sub-Fund will be limited to contractual remedies pursuant to the agreements related to the transactionrisk of loss of both principal and interest. There is no assurance that swap contract counterparties will be able to meet their obligations pursuant to swap contracts or that, in In the event of default, the Sub-collateral may be sold but the Fund will succeed might incur a loss if the value of the collateral declines, and might incur disposition costs or experience delays in pursuing contractual remediesconnection with liquidating the collateral. A Sub-In addition, if bankruptcy proceedings are commenced with respect to the seller of the security, realization upon the collateral by the Fund thus assumes the risk that it may be delayed in or prevented from obtaining payments owed to it pursuant to swap contractslimited. The Advisor will monitor the value of the index/reference asset underlying a Total Return Swap may differ collateral at the time the transaction is entered into and throughout the term of the repurchase agreement in an effort to determine that such value always equals or exceeds the agreed-upon repurchase price. In the event the value of the collateral declines below the repurchase price, the Advisor will demand additional collateral from the issuer to increase the value of the collateral to at least that of the repurchase price, including interest. In general, for federal income tax purposes, repurchase agreements are treated as collateralized loans secured by the securities “sold.” Therefore, amounts earned under such agreements will not be considered tax exempt interest. The treatment of purchase and sales contracts is less certain. Leverage The Fund currently leverages its assets through the use of preferred shares and tender option bonds. The Fund currently does not intend to borrow money or issue debt securities. Although it has no present intention to do so, the Fund reserves the right to borrow money from banks or other financial institutions, or issue debt securities, in the future if it believes that market conditions would be conducive to the value attributable per Unit due successful implementation of a leveraging strategy through borrowing money or issuing debt securities or preferred shares. Any such leveraging will not be fully achieved until the proceeds resulting from the use of leverage have been invested in accordance with the Fund’s investment objective and policies. Under the 1940 Act, the Fund is not permitted to various factors issue senior securities if, immediately after the issuance of such senior securities, the Fund would have an asset coverage ratio (as defined in the 0000 Xxx) of less than 300% with respect to senior securities representing indebtedness (i.e., for every dollar of indebtedness outstanding, the Fund is required to have at least three dollars of assets) or less than 200% with respect to senior securities representing preferred shares (i.e., for every dollar of preferred shares outstanding, the Fund is required to have at least two dollars of assets). The 1940 Act also provides that the Fund may not declare distributions or purchase its stock (including through tender offers) if, immediately after doing so, it will have an asset coverage ratio of less than 300% or 200%, as applicable. Under the 1940 Act, certain short-term borrowings (such as for cash management purposes) are not subject to these limitations if (i) repaid within 60 days, (ii) not extended or renewed and (iii) not in excess of 5% of the costs incurred in relation to total assets of the Total Return Swap entered into by the Sub-Fund to gain such exposure, fees charged by the Sub-Fund, differences in currency values and costs associated with hedged or unhedged Unit Classes.

Repurchase Agreements. Where stated in Annex A, the Management Company on behalf of a Sub-Sub- Fund may enter into repurchase arrangements. Accordingly, the Sub-Fund will bear a risk of loss in the event that the other party to the transaction defaults on its obligation and the Sub-Fund is delayed or prevented from exercising its rights to dispose of the underlying securities. The Sub-Fund will, in particular, be subject to the risk of a possible decline in the value of the underlying securities during the period in which the Sub- Sub-Fund seeks to assert its right to them, the risk of incurring expenses associated with asserting those rights and the risk of losing all or a part of the income from the agreement. Collateral Risk. Collateral or margin may be passed by the relevant Sub-Fund to a counterparty or broker in respect of OTC derivative transactions or Securities Financing Transactions. Assets deposited as collateral or margin with brokers may not be held in segregated accounts by the brokers and may therefore become available to the creditors of such brokers in the event of their insolvency or bankruptcy. Where collateral is posted to a counterparty or broker by way of title transfer, the collateral may be re-re- used by such counterparty or broker for their own purpose, thus exposing the relevant Sub-Fund to additional risk. Risks related to a counterparty's right of re-use of any collateral include that, upon the exercise of such right of re-use, such assets will no longer belong to the relevant Sub-Fund and the Sub-Fund will only have a contractual claim for the return of equivalent assets. In the event of the insolvency of a counterparty the Sub-Fund shall rank as an unsecured creditor and may not recover its assets from the counterparty. More broadly, assets subject to a right of re-use by a counterparty may form part of a complex chain of transactions over which the Management Company or its delegates will not have any visibility or control. Total Return Swaps. In respect of Total Return Swaps, if the volatility or expectation of volatility of the reference asset(s) varies, the market value of the financial instruments may be adversely affected. The relevant Sub-Fund will be subject to the credit risk of the counterparty to the swap, as well as that of the issuer of the reference obligation. If there is a default by the counterparty to a swap contract a Sub-Fund will be limited to contractual remedies pursuant to the agreements related to the transaction. There is no assurance that swap contract counterparties will be able to meet their obligations pursuant to swap contracts or that, in the event of default, the Sub-Fund will succeed in pursuing contractual remedies. A Sub-Fund thus assumes the risk that it may be delayed in or prevented from obtaining payments owed to it pursuant to swap contracts. The value of the index/reference asset underlying a Total Return Swap may differ to the value attributable per Unit due to various factors such as the costs incurred in relation to the Total Return Swap entered into by the Sub-Fund to gain such exposure, fees charged by the Sub-Fund, differences in currency values and costs associated with hedged or unhedged Unit Classes.

Repurchase Agreements. Where stated in Annex ASecurities held by the Fund may be subject to repurchase agreements. Under the terms of a repurchase agreement, the Management Company Fund would acquire securities from member banks of the Federal Reserve System and registered broker-dealers which the Adviser deems creditworthy under guidelines approved by the Fund's Board of Trustees, subject to the seller's agreement to repurchase such securities at a mutually agreed-upon date and price. The repurchase price would generally equal the price paid by the Fund plus interest negotiated on behalf the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a Sub-Fund may enter into repurchase arrangementsagreement will be required to maintain at all times the value of collateral held pursuant to the agreement at not less than the repurchase price (including accrued interest). AccordinglyIf the seller were to default on its repurchase obligation or become insolvent, the Sub-Fund will bear would suffer a risk of loss in to the event extent that the other party to the transaction defaults on its obligation and the Sub-Fund is delayed or prevented proceeds from exercising its rights to dispose a sale of the underlying portfolio securities were less than the repurchase price under the agreement, or to the extent that the disposition of such securities by the Fund were delayed pending court action. Additionally, there is no controlling legal precedent confirming that the Fund would be entitled, as against a claim by such seller or its receiver or trustee in bankruptcy, to retain the underlying securities. The Sub-, although the Board of Trustees of the Fund willbelieves that, under the regular procedures normally in particular, be effect for custody of the Fund's securities subject to repurchase agreements and under federal laws, a court of competent jurisdiction would rule in favor of the risk of a possible decline Fund if presented with the question. Securities subject to repurchase agreements will be held by the Fund's custodian or another qualified custodian or in the value of the underlying securities during the period in which the Sub- Fund seeks Federal Reserve/Treasury book-entry system. Repurchase agreements are considered to assert its right to them, the risk of incurring expenses associated with asserting those rights and the risk of losing all or a part of the income from the agreement. Collateral Risk. Collateral or margin may be passed loans by the relevant Sub-Fund to a counterparty or broker in respect of OTC derivative transactions or Securities Financing Transactions. Assets deposited as collateral or margin with brokers may not be held in segregated accounts by under the brokers and may therefore become available to the creditors of such brokers in the event of their insolvency or bankruptcy. Where collateral is posted to a counterparty or broker by way of title transfer, the collateral may be re-used by such counterparty or broker for their own purpose, thus exposing the relevant Sub-Fund to additional risk. Risks related to a counterparty's right of re-use of any collateral include that, upon the exercise of such right of re-use, such assets will no longer belong to the relevant Sub-Fund and the Sub-Fund will only have a contractual claim for the return of equivalent assets. In the event of the insolvency of a counterparty the Sub-Fund shall rank as an unsecured creditor and may not recover its assets from the counterparty. More broadly, assets subject to a right of re-use by a counterparty may form part of a complex chain of transactions over which the Management Company or its delegates will not have any visibility or control. Total Return Swaps. In respect of Total Return Swaps, if the volatility or expectation of volatility of the reference asset(s) varies, the market value of the financial instruments may be adversely affected. The relevant Sub-Fund will be subject to the credit risk of the counterparty to the swap, as well as that of the issuer of the reference obligation. If there is a default by the counterparty to a swap contract a Sub-Fund will be limited to contractual remedies pursuant to the agreements related to the transaction. There is no assurance that swap contract counterparties will be able to meet their obligations pursuant to swap contracts or that, in the event of default, the Sub-Fund will succeed in pursuing contractual remedies. A Sub-Fund thus assumes the risk that it may be delayed in or prevented from obtaining payments owed to it pursuant to swap contracts. The value of the index/reference asset underlying a Total Return Swap may differ to the value attributable per Unit due to various factors such as the costs incurred in relation to the Total Return Swap entered into by the Sub-Fund to gain such exposure, fees charged by the Sub-Fund, differences in currency values and costs associated with hedged or unhedged Unit Classes1940 Act.

Repurchase Agreements. Where stated in Annex AUnder a repurchase agreement, the Management Company on behalf Fund “sells” securities or other obligations and agrees to repurchase them at a specified date and price. In a reverse repurchase transaction, the Fund “buys” securities issued from a broker-dealer or financial institution, subject to the obligation of the broker-dealer or financial institution to repurchase such securities at the price paid by the Fund, plus interest at a Sub-negotiated rate. The use of repurchase and reverse repurchase agreements by the Fund involves a variety of risks. For example, repurchase agreements may involve the risk that the market value of the securities or other obligations purchased with the proceeds of the repurchase agreement by the Fund may enter into decline below the price of the securities or other obligations the Fund has sold but is obligated to repurchase. If the buyer of securities or other obligations under a repurchase arrangementsagreement files for bankruptcy or becomes insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to enforce the obligation of the Fund to repurchase the securities or other obligations and the Fund’s use of the proceeds of the repurchase agreement may effectively be restricted pending such decision. AccordinglyTo the extent that, in the meantime, the Sub-Fund will bear a risk value of loss in the event securities or other obligations that the other party Fund has purchased has decreased, the Fund could experience a loss. Further, in relation to reverse repurchase agreements, if the seller of securities to the transaction Fund defaults on its obligation to repurchase the underlying securities, as a result of its bankruptcy or otherwise, the Fund will seek to dispose of such securities, which action could involve costs or delays and the Sub-Fund may suffer a loss to the extent that it is delayed forced to liquidate its position in the market, and proceeds from the sale of the underlying securities are less than the repurchase price agreed to by the defaulting seller. If the seller becomes insolvent and subject to liquidation or prevented from exercising its rights reorganization under applicable bankruptcy or other laws, the Fund’s ability to dispose of the underlying securitiessecurities may be restricted. The Sub-Fund willIt is possible, in particulara bankruptcy or liquidation scenario, be subject to that the risk of a possible decline in the value of the underlying securities during the period in which the Sub- Fund seeks to assert its right to them, the risk of incurring expenses associated with asserting those rights and the risk of losing all or a part of the income from the agreement. Collateral Risk. Collateral or margin may be passed by the relevant Sub-Fund to a counterparty or broker in respect of OTC derivative transactions or Securities Financing Transactions. Assets deposited as collateral or margin with brokers may not be held in segregated accounts by the brokers and may therefore become available able to the creditors of such brokers substantiate its interest in the event of their insolvency or bankruptcy. Where collateral is posted to a counterparty or broker by way of title transfer, the collateral may be re-used by such counterparty or broker for their own purpose, thus exposing the relevant Sub-Fund to additional risk. Risks related to a counterparty's right of re-use of any collateral include that, upon the exercise of such right of re-use, such assets will no longer belong to the relevant Sub-Fund and the Sub-Fund will only have a contractual claim for the return of equivalent assets. In the event of the insolvency of a counterparty the Sub-Fund shall rank as an unsecured creditor and may not recover its assets from the counterparty. More broadly, assets subject to a right of re-use by a counterparty may form part of a complex chain of transactions over which the Management Company or its delegates will not have any visibility or control. Total Return Swaps. In respect of Total Return Swaps, if the volatility or expectation of volatility of the reference asset(s) varies, the market value of the financial instruments may be adversely affected. The relevant Sub-Fund will be subject to the credit risk of the counterparty to the swap, as well as that of the issuer of the reference obligation. If there is a default by the counterparty to a swap contract a Sub-Fund will be limited to contractual remedies pursuant to the agreements related to the transaction. There is no assurance that swap contract counterparties will be able to meet their obligations pursuant to swap contracts or that, in the event of default, the Sub-Fund will succeed in pursuing contractual remedies. A Sub-Fund thus assumes the risk that it may be delayed in or prevented from obtaining payments owed to it pursuant to swap contracts. The value of the index/reference asset underlying a Total Return Swap may differ to the value attributable per Unit due to various factors such as the costs incurred in relation to the Total Return Swap entered into by the Sub-Fund to gain such exposure, fees charged by the Sub-Fund, differences in currency values and costs associated with hedged or unhedged Unit Classessecurities.