Common use of General Risks Clause in Contracts

General Risks. In addition to the fund-specific risks, the investments of the UCITS can be subject to general risks. All investments in UCITS are associated with risks. The risks may comprise or be associated with stock market and bond market risks, exchange rate, interest rate, credit and volatility risks, as well as political risks. Any of these risks may also occur together with other risks. This section will examine some of these risks. It is important to note, however, that this is not a complete list of all possible risks. Potential investors should be clearly aware of the risks associated with an investment in shares and not make any investment decisions before receiving comprehensive advice from their legal, financial and fiscal advisors, auditors and other experts on the suitability of an investment in shares of the UCITS, taking into consideration their personal financial and fiscal and other circumstances, as well as the information in this Prospectus, the Trust Agreement and the investment policy of the UCITS. Derivative financial instruments The UCITS can use derivative financial instruments. They cannot be used for hedging, but may represent a part of the investment strategy. The use of derivative financial instruments for hedging purposes may change the general risk profile due to correspondingly lower opportunities and risks. The use of derivative financial instruments for investment purposes may have an effect on the general risk profile due to additional opportunities and risks. Derivative financial instruments are not independent investment instruments, but instead deal with rights, the valuation of which is derived primarily from the price and price fluctuations and expectations of an underlying reference instrument. Investments in derivatives are subject to general market risk, management risk, credit and liquidation risk. Due to special features of the derivative financial instruments, the risks referred to may be different and turn out to be somewhat higher than risks for an investment in basic instruments. The use of derivatives therefore requires not only an understanding of the basic instrument, but also well-founded knowledge of the derivatives. Derivative financial instruments also carry the risk of a loss to the UCITS because another party participating in the derivative financial instrument (usually a 'counterparty') does not fulfil its obligations. The credit risk for derivatives traded on a stock exchange is generally lower than the risk for derivatives traded off the board, since the clearing house which acts as issuer or counterparty of each derivative traded on the stock exchange undertakes a handling guarantee. To reduce the overall default risk, this guarantee is supported by a daily payment system maintained by the clearing house, in which the assets required for coverage are calculated. There is no comparable guarantee by the clearing house for derivatives traded off the board, and the UCITS must factor in the creditworthiness of each counterparty of a derivative traded off the board when analysing the potential credit risk. There are also liquidity risks, since certain instruments may be difficult to buy or sell. If derivative transactions are especially large, or if the respective market is not liquid (which can happen with derivatives traded off the board), it might not be possible to completely execute transactions in all instances or a position can only be liquidated with increased costs. Additional risks associated with the use of derivatives lie in inaccurate pricing or valuation of derivatives. It is also possible that derivatives might not completely correlate with the assets, interest rates and indices underlying them. Many derivatives are complex and often analysed subjectively. Inaccurate valuations can result in increased cash payments for counterparts or a loss of value to the UCITS. Derivatives are not always in direct or parallel proportion to the value of the assets, interest rates or indices from which they are derived. Therefore the use of derivatives by the UCITS is not always an effective means of achieving the investment objective of the UCITS, but can sometimes even achieve the opposite effect. Collateral management If the UCITS carries out off-trade transactions (OTC transactions), then it can incur risks associated with the creditworthiness of the OTC counterparts: when concluding futures contracts, options and swap transactions or using other derivatives techniques, the UCITS incurs the risk that an OTC counterparty does not (or cannot) fulfil its obligations in one or more contracts . The counterparty’s risk may be decreased by depositing a security. According to current agreements, if the UCITS owes a security, then this is held by or for the custodian on behalf of the UCITS. Cases of bankruptcy or insolvency or other credit default events at the custodian or within its sub- depositaries / correspondent bank networks may result in the fact that the rights of the UCITS in connection with the security are suspended or otherwise limited. According to current agreements, if the UCITS owes the OTC counterparty a security, then a security of this sort is arranged between the UCITS and the OTC counterparty to transfer to the OTC counterparty. Cases of bankruptcy or insolvency or other credit default events at the OTC counterparty, the custodian or within its sub-depositaries / correspondent bank network may result in the fact that the rights or the recognition of the UCITS with respect to the security will be delayed, limited or even excluded, which would force the UCITS to fulfil its obligations within the scope of the OTC transaction regardless of any securities set up in advance to cover this type of obligation. Issuer risk (creditworthiness risk) A deterioration of the ability to pay (solvency) or even the bankruptcy of an issuer may signify at least a partial or possibly a total loss of assets. Counterparty risk The risk here is that the fulfilment of transactions entered into for the account of the asset will be jeopardized by liquidity difficulties or bankruptcy of the respective counterparty. Monetary value risk Inflation may decrease the value of the asset's investments. The purchasing power of the invested capital decreases if the inflation rate is higher than the income yielded by the investments. Risk related to the state of the economy This pertains to the risk of stock price losses that arise due to the fact that the economic trend is not factored in when making the investment decision and securities investments are transacted at the wrong point in time or securities are being held in an unfavourable economic phase. Country or transfer risk Country risk is said to exist if a foreign debtor, despite solvency, cannot perform a service in a timely manner or at all due to a lack of transferability or willingness of its country of domicile (e.g. due to foreign currency restrictions, transfer risks, moratoriums or embargos). So, for instance, payments to which the UCITS is entitled may not be made, or may be made in a currency that is no longer convertible due to currency restrictions. Settlement risk In particular when it comes to investment in unlisted securities, there is a risk that settlement via a transfer system may not be carried out as expected due to delayed payment or to payment or delivery not in accordance with the agreement. Liquidity risk Assets may be acquired for the UCITS that are not permitted on the stock exchange or included in another organised market. The acquisition of such assets runs the risk that problems may arise in particular in the resale of the assets to third parties. With securities of smaller companies (secondary issues) there is the risk that the market will at times not be liquid. This may result in the securities not being traded at the desired point in time, and/or not in the desired amount, and/or not at the desired price. Potential investment spectrum In compliance with the investment principles and restrictions specified by the UCITSG and the Trust Agreement, which provide a very wide framework for the UCITS, the actual investment policy may also be aimed at acquiring assets from e.g. only a few sectors, markets or regions/countries. This concentration on a few special investment sectors may be associated with special opportunities, which are also faced with corresponding risks (e.g. narrowness of the market, high fluctuation margin within certain economic cycles). The annual report provides information on the content of the investment policies after the fact for the previous financial year. Concentration risk Additional risks may arise due to the fact that a concentration of investments will be in certain assets or markets. Then the UCITS is particularly dependent on the performance of these assets or markets. Market risk (price risk) This is a general risk associated with all investments that results in the value of a particular investment possibly changing counter to the interests of the UCITS. Psychological market risk Moods, opinions and rumours can cause a significant declining market, even though the profit situation and future outlook of the company invested in need not have sustainably changed. The psychological market risk has a particular impact on stocks. Settlement risk This concerns the loss risk of the UCITS due to the failure to fulfil a concluded transaction because one counterparty fails to pay or deliver, or due to errors in the execution of a transaction. Legal and tax risk The purchase, holding or sale of investments of the UCITS can be subject to tax rules (e.g. source taxation) outside the country of domicile of the UCITS. Furthermore, the legal and tax treatment of the UCITS can change unforeseeably and beyond its control. The correction of inaccurately defined taxation bases for the UCITS for past financial years (e.g. due to external tax audits) may lead, in the case of a correction with negative tax consequences for the investors, to investors having to carry the tax burden arising from the correction for past financial years even though they were not invested in the UCITS at the time. Conversely, the situation can arise for investors whereby they do not benefit from an essentially favourable tax correction for the current and preceding financial years during which they were invested in the UCITS, because they redeemed or sold their shares before the correction was made. A correction of tax data may also lead to a situation where taxable income or tax advantages are actually tax assessed in an assessment period other than the truly appropriate period, having a negative effect on the individual investor. Entrepreneurial risk Investments in shares represent a direct participation in the economic success or failure of a company. An extreme case – such as bankruptcy – this may mean the complete loss of value of the respective investments. Currency risk If the UCITS holds assets that are denominated in a foreign currency (or currencies), then it carries a direct currency risk (unless the foreign currency positions are hedged). Decreasing foreign exchange prices result in depreciation of the foreign currency investments. Conversely, the foreign exchange market offers opportunities for profit. In addition to direct currency risks, there are also indirect currency risks. Internationally active companies are more or less greatly dependent on the exchange rate movement, which can also indirectly impact the market trend of investments. Change in investment policy Amendments to the investment policy within the range of investments permitted may change the nature of the risk associated with the UCITS. The management company can make significant changes at any time to the investment policy of the UCITS within the valid Trust Agreement by amending the Prospectus and Appendix A included in the Trust Agreement Revision of the Trust Agreement The management company shall reserve the right within the Trust Agreement to change the trust provisions. Furthermore, in accordance with the Trust Agreement, the management company can fully liquidate the UCITS or merge it with another UCITS. The investor therefore runs the risk of not being able to realize the holding period as he had planned. Risk of redemption exposure In principle, investors can demand the redemption of their shares in accordance with the valuation frequency of the UCITS. The management company may temporarily suspend the redemption of shares; however, if extraordinary circumstances exist, and redeem the shares only later at the price which is valid at that time (see also for more detail “Suspension of the Calculation of Net Asset Value and the Issuing, Redemption and Exchange of Shares”). This price may be lower than the price before the suspension of redemption. Key personnel risk UCITS that perform very well over a certain period owe this success in part to the skill of the individuals involved in making the right management decisions. The personnel makeup of the fund management can change, however. New decision-makers may then act in ways that are less successful. Risk due to change in interest rates If the UCITS has invested in interest bearing securities it carries an interest rate risk. If the market interest rate level increases, the market value of the interest-bearing securities associated with the assets may decrease significantly. This is increasingly valid if the asset also holds interest-bearing securities with a rather long residual term and a rather low nominal interest yield.

General Risks. In addition to the fund-specific risks, the investments of the UCITS can be subject to general risks. All investments in UCITS are associated with risks. The risks may comprise or be associated with stock market and bond market risks, exchange rate, interest rate, credit and volatility risks, as well as political risks. Any of these risks may also occur together with other risks. This section will examine some of these risks. It is important to note, however, that this is not a complete list of all possible risks. Potential investors should be clearly aware of the risks associated with an investment in shares and not make any investment decisions before receiving comprehensive advice from their legal, financial and fiscal advisors, auditors and other experts on the suitability of an investment in shares of the UCITS, taking into consideration their personal financial and fiscal and other circumstances, as well as the information in this Prospectus, the Trust Agreement and the investment policy of the UCITS. Derivative financial instruments The UCITS can use derivative financial instruments. They cannot be used for hedging, but may represent a part of the investment strategy. The use of derivative financial instruments for hedging purposes may change the general risk profile due to correspondingly lower opportunities and risks. The use of derivative financial instruments for investment purposes may have an effect on the general risk profile due to additional opportunities and risks. Derivative financial instruments are not independent investment instruments, but instead deal with rights, the valuation of which is derived primarily from the price and price fluctuations and expectations of an underlying reference instrument. Investments in derivatives are subject to general market risk, management risk, credit and liquidation risk. Due to special features of the derivative financial instruments, the risks referred to may be different and turn out to be somewhat higher than risks for an investment in basic instruments. The use of derivatives therefore requires not only an understanding of the basic instrument, but also well-founded knowledge of the derivatives. Derivative financial instruments also carry the risk of a loss to the UCITS because another party participating in the derivative financial instrument (usually a 'counterparty') does not fulfil its obligations. The credit risk for derivatives traded on a stock exchange is generally lower than the risk for derivatives traded off the board, since the clearing house which acts as issuer or counterparty of each derivative traded on the stock exchange undertakes a handling guarantee. To reduce the overall default risk, this guarantee is supported by a daily payment system maintained by the clearing house, in which the assets required for coverage are calculated. There is no comparable guarantee by the clearing house for derivatives traded off the board, and the UCITS must factor in the creditworthiness of each counterparty of a derivative traded off the board when analysing the potential credit risk. There are also liquidity risks, since certain instruments may be difficult to buy or sell. If derivative transactions are especially large, or if the respective market is not liquid (which can happen with derivatives traded off the board), it might not be possible to completely execute transactions in all instances or a position can only be liquidated with increased costs. Additional risks associated with the use of derivatives lie in inaccurate pricing or valuation of derivatives. It is also possible that derivatives might not completely correlate with the assets, interest rates and indices underlying them. Many derivatives are complex and often analysed subjectively. Inaccurate valuations can result in increased cash payments for counterparts or a loss of value to the UCITS. Derivatives are not always in direct or parallel proportion to the value of the assets, interest rates or indices from which they are derived. Therefore the use of derivatives by the UCITS is not always an effective means of achieving the investment objective of the UCITS, but can sometimes even achieve the opposite effect. Collateral management If the UCITS carries out off-trade transactions (OTC transactions), then it can incur risks associated with the creditworthiness of the OTC counterparts: when concluding futures contracts, options and swap transactions or using other derivatives techniques, the UCITS incurs the risk that an OTC counterparty does not (or cannot) fulfil its obligations in one or more contracts . The counterparty’s risk may be decreased by depositing a security. According to current agreements, if the UCITS owes a security, then this is held by or for the custodian on behalf of the UCITS. Cases of bankruptcy or insolvency or other credit default events at the custodian or within its sub- sub-depositaries / correspondent bank networks may result in the fact that the rights of the UCITS in connection with the security are suspended or otherwise limited. According to current agreements, if the UCITS owes the OTC counterparty a security, then a security of this sort is arranged between the UCITS and the OTC counterparty to transfer to the OTC counterparty. Cases of bankruptcy or insolvency or other credit default events at the OTC counterparty, the custodian or within its sub-depositaries / correspondent bank network may result in the fact that the rights or the recognition of the UCITS with respect to the security will be delayed, limited or even excluded, which would force the UCITS to fulfil its obligations within the scope of the OTC transaction regardless of any securities set up in advance to cover this type of obligation. Issuer risk (creditworthiness risk) A deterioration of the ability to pay (solvency) or even the bankruptcy of an issuer may signify at least a partial or possibly a total loss of assets. Counterparty risk The risk here is that the fulfilment of transactions entered into for the account of the asset will be jeopardized by liquidity difficulties or bankruptcy of the respective counterparty. Monetary value risk Inflation may decrease the value of the asset's investments. The purchasing power of the invested capital decreases if the inflation rate is higher than the income yielded by the investments. Risk related to the state of the economy This pertains to the risk of stock price losses that arise due to the fact that the economic trend is not factored in when making the investment decision and securities investments are transacted at the wrong point in time or securities are being held in an unfavourable economic phase. Country or transfer risk Country risk is said to exist if a foreign debtor, despite solvency, cannot perform a service in a timely manner or at all due to a lack of transferability or willingness of its country of domicile (e.g. due to foreign currency restrictions, transfer risks, moratoriums or embargos). So, for instance, payments to which the UCITS is entitled may not be made, or may be made in a currency that is no longer convertible due to currency restrictions. Settlement risk In particular when it comes to investment in unlisted securities, there is a risk that settlement via a transfer system may not be carried out as expected due to delayed payment or to payment or delivery not in accordance with the agreement. Liquidity risk Assets may be acquired for the UCITS that are not permitted on the stock exchange or included in another organised market. The acquisition of such assets runs the risk that problems may arise in particular in the resale of the assets to third parties. With securities of smaller companies (secondary issues) there is the risk that the market will at times not be liquid. This may result in the securities not being traded at the desired point in time, and/or not in the desired amount, and/or not at the desired price. Potential investment spectrum In compliance with the investment principles and restrictions specified by the UCITSG and the Trust Agreement, which provide a very wide framework for the UCITS, the actual investment policy may also be aimed at acquiring assets from e.g. only a few sectors, markets or regions/countries. This concentration on a few special investment sectors may be associated with special opportunities, which are also faced with corresponding risks (e.g. narrowness of the market, high fluctuation margin within certain economic cycles). The annual report provides information on the content of the investment policies after the fact for the previous financial year. Concentration risk Additional risks may arise due to the fact that a concentration of investments will be in certain assets or markets. Then the UCITS is particularly dependent on the performance of these assets or markets. Market risk (price risk) This is a general risk associated with all investments that results in the value of a particular investment possibly changing counter to the interests of the UCITS. Psychological market risk Moods, opinions and rumours can cause a significant declining market, even though the profit situation and future outlook of the company invested in need not have sustainably changed. The psychological market risk has a particular impact on stocks. Settlement risk This concerns the loss risk of the UCITS due to the failure to fulfil a concluded transaction because one counterparty fails to pay or deliver, or due to errors in the execution of a transaction. Legal and tax risk The purchase, holding or sale of investments of the UCITS can be subject to tax rules (e.g. source taxation) outside the country of domicile of the UCITS. Furthermore, the legal and tax treatment of the UCITS can change unforeseeably and beyond its control. The correction of inaccurately defined taxation bases for the UCITS for past financial years (e.g. due to external tax audits) may lead, in the case of a correction with negative tax consequences for the investors, to investors having to carry the tax burden arising from the correction for past financial years even though they were not invested in the UCITS at the time. Conversely, the situation can arise for investors whereby they do not benefit from an essentially favourable tax correction for the current and preceding financial years during which they were invested in the UCITS, because they redeemed or sold their shares before the correction was made. A correction of tax data may also lead to a situation where taxable income or tax advantages are actually tax assessed in an assessment period other than the truly appropriate period, having a negative effect on the individual investor. Entrepreneurial risk Investments in shares represent a direct participation in the economic success or failure of a company. An extreme case – such as bankruptcy – this may mean the complete loss of value of the respective investments. Currency risk If the UCITS holds assets that are denominated in a foreign currency (or currencies), then it carries a direct currency risk (unless the foreign currency positions are hedged). Decreasing foreign exchange prices result in depreciation of the foreign currency investments. Conversely, the foreign exchange market offers opportunities for profit. In addition to direct currency risks, there are also indirect currency risks. Internationally active companies are more or less greatly dependent on the exchange rate movement, which can also indirectly impact the market trend of investments. Change in investment policy Amendments to the investment policy within the range of investments permitted may change the nature of the risk associated with the UCITS. The management company can make significant changes at any time to the investment policy of the UCITS within the valid Trust Agreement by amending the Prospectus and Appendix A included in the Trust Agreement Revision of the Trust Agreement The management company shall reserve the right within the Trust Agreement to change the trust provisions. Furthermore, in accordance with the Trust Agreement, the management company can fully liquidate the UCITS or merge it with another UCITS. The investor therefore runs the risk of not being able to realize the holding period as he had planned. Risk of redemption exposure In principle, investors can demand the redemption of their shares in accordance with the valuation frequency of the UCITS. The management company may temporarily suspend the redemption of shares; however, if extraordinary circumstances exist, and redeem the shares only later at the price which is valid at that time (see also for more detail “Suspension of the Calculation of Net Asset Value and the Issuing, Redemption and Exchange of Shares”). This price may be lower than the price before the suspension of redemption. Key personnel risk UCITS that perform very well over a certain period owe this success in part to the skill of the individuals involved in making the right management decisions. The personnel makeup of the fund management can change, however. New decision-makers may then act in ways that are less successful. Risk due to change in interest rates If the UCITS has invested in interest bearing securities it carries an interest rate risk. If the market interest rate level increases, the market value of the interest-bearing securities associated with the assets may decrease significantly. This is increasingly valid if the asset also holds interest-bearing securities with a rather long residual term and a rather low nominal interest yield.from

General Risks. In addition to the fund-specific risks, the investments of the UCITS can be subject to general risks. All investments in UCITS are associated with risks. The risks may comprise or be associated with stock market and bond market risks, exchange rate, interest rate, credit and volatility risks, as well as political risks. Any of these risks may also occur together with other risks. This section will examine some of these risks. It is important to note, however, that this is not a complete list of all possible risks. Potential investors should be clearly aware of the risks associated with an investment in shares and not make any investment decisions before receiving comprehensive advice from their legal, financial and fiscal advisors, auditors and other experts on the suitability of an investment in shares of the UCITS, taking into consideration their personal financial and fiscal and other circumstances, as well as the information in this Prospectus, the Trust Agreement and the investment policy of the UCITS. Derivative financial instruments The UCITS can use derivative financial instruments. They cannot be used for hedging, but may represent a part of the investment strategy. The use of derivative financial instruments for hedging purposes may change the general risk profile due to correspondingly lower opportunities and risks. The use of derivative financial instruments for investment purposes may have an effect on the general risk profile due to additional opportunities and risks. Derivative financial instruments are not independent investment instruments, but instead deal with rights, the valuation of which is derived primarily from the price and price fluctuations and expectations of an underlying reference instrument. Investments in derivatives are subject to general market risk, management risk, credit and liquidation risk. Due to special features of the derivative financial instruments, the risks referred to may be different and turn out to be somewhat higher than risks for an investment in basic instruments. The use of derivatives therefore requires not only an understanding of the basic instrument, but also well-founded knowledge of the derivatives. Derivative financial instruments also carry the risk of a loss to the UCITS because another party participating in the derivative financial instrument (usually a 'counterparty') does not fulfil its obligations. The credit risk for derivatives traded on a stock exchange is generally lower than the risk for derivatives traded off the board, since the clearing house which acts as issuer or counterparty of each derivative traded on the stock exchange undertakes a handling guarantee. To reduce the overall default risk, this guarantee is supported by a daily payment system maintained by the clearing house, in which the assets required for coverage are calculated. There is no comparable guarantee by the clearing house for derivatives traded off the board, and the UCITS must factor in the creditworthiness of each counterparty of a derivative traded off the board when analysing the potential credit risk. There are also liquidity risks, since certain instruments may be difficult to buy or sell. If derivative transactions are especially large, or if the respective market is not liquid (which can happen with derivatives traded off the board), it might not be possible to completely execute transactions in all instances or a position can only be liquidated with increased costs. Additional risks associated with the use of derivatives lie in inaccurate pricing or valuation of derivatives. It is also possible that derivatives might not completely correlate with the assets, interest rates and indices underlying them. Many derivatives are complex and often analysed subjectively. Inaccurate valuations can result in increased cash payments for counterparts or a loss of value to the UCITS. Derivatives are not always in direct or parallel proportion to the value of the assets, interest rates or indices from which they are derived. Therefore the use of derivatives by the UCITS is not always an effective means of achieving the investment objective of the UCITS, but can sometimes even achieve the opposite effect. Collateral management If the UCITS carries out off-trade transactions (OTC transactions), then it can incur risks associated with the creditworthiness of the OTC counterparts: when concluding futures contracts, options and swap transactions or using other derivatives techniques, the UCITS incurs the risk that an OTC counterparty does not (or cannot) fulfil its obligations in one or more contracts . The counterparty’s risk may be decreased by depositing a security. According to current agreements, if the UCITS owes a security, then this is held by or for the custodian on behalf of the UCITS. Cases of bankruptcy or insolvency or other credit default events at the custodian or within its sub- sub-depositaries / correspondent bank networks may result in the fact that the rights of the UCITS in connection with the security are suspended or otherwise limited. According to current agreements, if the UCITS owes the OTC counterparty a security, then a security of this sort is arranged between the UCITS and the OTC counterparty to transfer to the OTC counterparty. Cases of bankruptcy or insolvency or other credit default events at the OTC counterparty, the custodian or within its sub-depositaries / correspondent bank network may result in the fact that the rights or the recognition of the UCITS with respect to the security will be delayed, limited or even excluded, which would force the UCITS to fulfil its obligations within the scope of the OTC transaction regardless of any securities set up in advance to cover this type of obligation. Issuer risk (creditworthiness risk) A deterioration of the ability to pay (solvency) or even the bankruptcy of an issuer may signify at least a partial or possibly a total loss of assets. Counterparty risk The risk here is that the fulfilment of transactions entered into for the account of the asset will be jeopardized by liquidity difficulties or bankruptcy of the respective counterparty. Monetary value risk Inflation may decrease the value of the asset's investments. The purchasing power of the invested capital decreases if the inflation rate is higher than the income yielded by the investments. Risk related to the state of the economy This pertains to the risk of stock price losses that arise due to the fact that the economic trend is not factored in when making the investment decision and securities investments are transacted at the wrong point in time or securities are being held in an unfavourable economic phase. Country or transfer risk Country risk is said to exist if a foreign debtor, despite solvency, cannot perform a service in a timely manner or at all due to a lack of transferability or willingness of its country of domicile (e.g. due to foreign currency restrictions, transfer risks, moratoriums or embargos). So, for instance, payments to which the UCITS is entitled may not be made, or may be made in a currency that is no longer convertible due to currency restrictions. Settlement risk In particular when it comes to investment in unlisted securities, there is a risk that settlement via a transfer system may not be carried out as expected due to delayed payment or to payment or delivery not in accordance with the agreement. Liquidity risk Assets may be acquired for the UCITS that are not permitted on the stock exchange or included in another organised market. The acquisition of such assets runs the risk that problems may arise in particular in the resale of the assets to third parties. With securities of smaller companies (secondary issues) there is the risk that the market will at times not be liquid. This may result in the securities not being traded at the desired point in time, and/or not in the desired amount, and/or not at the desired price. Potential investment spectrum In compliance with the investment principles and restrictions specified by the UCITSG and the Trust Agreement, which provide a very wide framework for the UCITS, the actual investment policy may also be aimed at acquiring assets from e.g. only a few sectors, markets or regions/countries. This concentration on a few special investment sectors may be associated with special opportunities, which are also faced with corresponding risks (e.g. narrowness of the market, high fluctuation margin within certain economic cycles). The annual report provides information on the content of the investment policies after the fact for the previous financial year. Concentration risk Additional risks may arise due to the fact that a concentration of investments will be in certain assets or markets. Then the UCITS is particularly dependent on the performance of these assets or markets. Market risk (price risk) This is a general risk associated with all investments that results in the value of a particular investment possibly changing counter to the interests of the UCITS. Psychological market risk Moods, opinions and rumours can cause a significant declining market, even though the profit situation and future outlook of the company invested in need not have sustainably changed. The psychological market risk has a particular impact on stocks. Settlement risk This concerns the loss risk of the UCITS due to the failure to fulfil a concluded transaction because one counterparty fails to pay or deliver, or due to errors in the execution of a transaction. Legal and tax risk The purchase, holding or sale of investments of the UCITS can be subject to tax rules (e.g. source taxation) outside the country of domicile of the UCITS. Furthermore, the legal and tax treatment of the UCITS can change unforeseeably and beyond its control. The correction of inaccurately defined taxation bases for the UCITS for past financial years (e.g. due to external tax audits) may lead, in the case of a correction with negative tax consequences for the investors, to investors having to carry the tax burden arising from the correction for past financial years even though they were not invested in the UCITS at the time. Conversely, the situation can arise for investors whereby they do not benefit from an essentially favourable tax correction for the current and preceding financial years during which they were invested in the UCITS, because they redeemed or sold their shares before the correction was made. A correction of tax data may also lead to a situation where taxable income or tax advantages are actually tax assessed in an assessment period other than the truly appropriate period, having a negative effect on the individual investor. Entrepreneurial risk Investments in shares represent a direct participation in the economic success or failure of a company. An extreme case – such as bankruptcy – this may mean the complete loss of value of the respective investments. Currency risk If the UCITS holds assets that are denominated in a foreign currency (or currencies), then it carries a direct currency risk (unless the foreign currency positions are hedged). Decreasing foreign exchange prices result in depreciation of the foreign currency investments. Conversely, the foreign exchange market offers opportunities for profit. In addition to direct currency risks, there are also indirect currency risks. Internationally active companies are more or less greatly dependent on the exchange rate movement, which can also indirectly impact the market trend of investments. Change in investment policy Amendments to the investment policy within the range of investments permitted may change the nature of the risk associated with the UCITS. The management company can make significant changes at any time to the investment policy of the UCITS within the valid Trust Agreement by amending the Prospectus and Appendix A included in the Trust Agreement Revision of the Trust Agreement The management company shall reserve the right within the Trust Agreement to change the trust provisions. Furthermore, in accordance with the Trust Agreement, the management company can fully liquidate the UCITS or merge it with another UCITS. The investor therefore runs the risk of not being able to realize the holding period as he had planned. Risk of redemption exposure In principle, investors can demand the redemption of their shares in accordance with the valuation frequency of the UCITS. The management company may temporarily suspend the redemption of shares; however, if extraordinary circumstances exist, and redeem the shares only later at the price which is valid at that time (see also for more detail “Suspension of the Calculation of Net Asset Value and the Issuing, Redemption and Exchange of Shares”). This price may be lower than the price before the suspension of redemption. Key personnel risk UCITS that perform very well over a certain period owe this success in part to the skill of the individuals involved in making the right management decisions. The personnel makeup of the fund management can change, however. New decision-makers may then act in ways that are less successful. Risk due to change in interest rates If the UCITS has invested in interest bearing securities it carries an interest rate risk. If the market interest rate level increases, the market value of the interest-bearing securities associated with the assets may decrease significantly. This is increasingly valid if the asset also holds interest-bearing securities with a rather long residual term and a rather low nominal interest yield.