General Risk Factors

It is important to note that investment funds contain both opportunities and risks. The prices of investment funds can go up and down relative to the price at which they were purchased. This depends especially on the development of the capital markets or on specific developments at the issuer, which are not always predictable. There can be no assurance that the objectives of the investment policy will be achieved. Furthermore, there is no assurance that the initial investment will be recovered in the event of redemption. Certain types of investment such as derivatives, other techniques and instruments also harbor elevated risks compared to traditional investment opportunities. This mainly includes investments in warrants on indices, options and financial futures. An investment in the fund may be associated particularly with risk factors such as general market risk, currency risk, liquidity risk, interest rate risk, concentration risk, counterparty risk, the risk of heightened volatility, and risks associated with derivative transactions.

Market risk: The performance of financial products depends on the development of the capital markets. Capital markets respond to economic and political conditions as well as to irrational factors (sentiment, opinions and rumours).

Currency risk: Changes in exchange rates may have an impact on the value of the investment units of a sub-fund, as well as on dividends and interest earned and gains or losses realized.

Liquidity risk: If financial assets are traded in a rather narrow market segment, it may be difficult to sell them in times of inadequate liquidity.

Interest rate risk: Changes in market interest rates may affect the prices of fixed-income securities. The scope of these price fluctuations, however, will vary depending on the maturities of the bonds.

Concentration risk: Owing to their focus on a limited number of markets or assets, investment assets have a particularly heavy dependence on those few markets or assets.

Counterparty risk: Should a counterparty default in full or in part on its contractual obligations, losses may be incurred by the fund. Losses stemming from the financial collapse of an issuer cannot be ruled out, even if the securities have been carefully selected.

Higher volatility: Due to the prescribed investment universe, portfolio composition and the use of derivative instruments, the investment assets may display increased price fluctuations at times.

Risk associated with derivative products, above all options: A change in the price of an underlying asset may erode the value of an option. Options have a leverage effect and thus impact investment assets more strongly than underlying assets. When options are sold, there is the risk that the investment assets may suffer an indeterminable loss.

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For detailed information on the individual investment risks please refer to the prospectus.