Common use of Risiko Kredit Clause in Contracts

Risiko Kredit. Credit Risk The Mutual Fund takes on exposure to credit risk which is the risk that a counterparty will be unable to pay amounts in full when due, including transactions with counterparties such as issuers, brokers, Custodian Bank and banks. Credit risk are managed through policies such as: Investment Manager avoid trade settlements through Free of Payment (“FOP”) method; the execution of cash payment and receipt of the securities are monitored by operation team through the regular cash and securities reconciliation procedures; transactions conducted with counterparties must be pre-approved by the Investment Manager’s credit committee. Counterparties are subject to daily credit feasibility analysis. Cash balance will only be placed in reputable banks with high quality credit ratings.