Common use of Liechtenstein Clause in Contracts

Liechtenstein. The UCITS has the legal form of a collective trusteeship. A collective trusteeship is the entering into a trust with identical content with an unspecified number of investors for the purpose of investment and administration for the account of the investors, whereby the individual investors participate in this trusteeship in proportion to their share and are personally liable only up to the amount invested. Unless otherwise stipulated in the UCITSG, the legal relationships between the owners of the units of the UCITS ("investors" or “unit holders”), the Management Company and the Depositary shall be governed by the Unit Trust Agreement and, unless otherwise stipulated therein, by the provisions of the Liechtenstein Persons and Companies Act (PGR) on trusteeship. The management of the UCITS consists principally in investing the capital raised from the public on a collective basis, in accordance with the principle of risk diversification. The UCITS or each of its sub-funds constitutes a fund for the benefit of its investors. In the event of the liquidation and bankruptcy of the Management Company, the fund shall not form part of the bankruptcy estate of the Management Company. The assets in which the Management Company may invest the funds and the provisions which it must observe in doing so are set out in the UCITSG, the Unit Trust Agreement and Annex A “Overview of Sub-Funds”.