Investment Risks

An investment in the shares of the Fund involves a high degree of risk. It should be appreciated that the value of investments and the income from them may go down as well as up and that investors may not receive on redemption of their shares the amount that they invested.

Since investment in the shares of the Fund in effect represents an investment in securities and other assets with fluctuating market prices, the value of the shares will vary as the aggregate value of the Fund’s investments and other assets vary.

The Fund invests substantially all of its available capital in derivatives that are quoted on public markets. The Fund may also engage in margin trading, hedging and other investment strategies. While these instruments generally are quoted on public markets, markets for such instruments in general are subject to fluctuations and the market value of any particular investment may be subject to substantial variation.

Investment in derivative instruments, in which the Fund invests, involves special considerations and risks not typically associated with investments in standard securities, including the risks generally associated with international investing, such as currency fluctuations, the risk of investing in capital markets with limited liquidity, price volatility and subject to further restrictions.

Risk profile of the Fund

The Fund’s investing activities expose it to various types of financial risks that are associated with the financial instruments and markets in which it invests. These financial risks include market risk, foreign currency risk, interest rate risk, credit and counterparty risk and liquidity risk. The Fund’s overall risk management programme focuses on minimising potential adverse effects on the Fund’s performance resulting from these financial risks.

The Fund primarily deals in exchange traded contracts. The Fund may invest on margin and may employ other leveraging strategies, which can increase profit potential, but concomitantly increase risk of loss and volatility.