Common use of Repurchase Agreements Clause in Contracts

Repurchase Agreements. Where stated in Annex A in respect of the relevant Sub-Fund, the Management Company may, for efficient portfolio management purposes only, enter on behalf of such Sub-Fund into repurchase agreements or reverse repurchase agreements, provided that the counterparty is an Eligible Counterparty and that the ability of the Sub-Fund to meet redemption requests is in no way impaired as a result of such transaction. Repurchase agreements are a type of securities lending transaction in which one party sells a security to the other party with a simultaneous agreement to repurchase the security at a fixed future date at a stipulated price reflecting a market rate of interest unrelated to the coupon rate of the securities. A reverse repurchase agreement is a transaction whereby a Sub-Fund purchases securities from a counterparty and simultaneously commits to resell the securities to the counterparty at an agreed upon date and price.