Common use of Risk Related to Investments in Derivative Financial Instruments Clause in Contracts

Risk Related to Investments in Derivative Financial Instruments. To protect the Individual Portfolio assets against the market value fluctuation risk which may occur as a result of a change in the price of a respective asset or exchange rate, the Manager is entitled to make investments in derivative Financial Instruments on account of the Individual Portfolio. The Client has to understand that transactions with derivative Financial Instruments involve additional risks. No guarantees or assurances are possible that the use of derivative Financial Instruments will allow or help to attain the investment objectives of the Individual Portfolio. Derivative Financial Instruments fully or at least to a sufficiently high degree correlate with on relate to the value of the underlying asset (Financial Instruments, value of ratios or indexes). Therefore, the use of derivative Financial Instruments is not always effective and sometimes can have a negative impact on the investment objective.