PC NMS October 2012 clean version CSSF 3010 pour VISA FINAL

C. The Fund will not purchase or sell real estate or any option, right or interest therein, provided the Fund
may invest in securities secured by real estate or interests therein or issued by companies which invest in
real estate or interests therein.
D. The Fund may not carry out uncovered sales of transferable securities, money market instruments or
other financial instruments referred to in 1.(A) (1) iv), vi) and vii).
E. The Fund may not borrow for the account of any Sub-Fund, other than amounts which do not in
aggregate exceed 10% of the net asset value of the Sub-Fund, and then only as a temporary measure. For
the purpose of this restriction back to back loans are not considered to be borrowings.
3. Derivatives, techniques and other instruments
The Fund may, for the purpose of efficient portfolio management of its assets or for providing protection
against main risks, such as and not limited to exchange rate risk, employ derivatives under the conditions and
within the limits laid down by law, regulation and administrative practice. If a Sub-Fund uses such instruments
for investment purposes, detailed information on such instruments will be disclosed in the investment policy
of the relevant Sub-Fund.
The Fund shall ensure that the global exposure of each Sub-Fund relating to derivative instruments does not
exceed the total net assets of that Sub-Fund.
Unless differently stated in the Appendix specific to each Sub-Fund under Section II, the exposure is calculated
using the “Relative Value ar Risk (VaR) “ method, taking into account the current value of the underlying
assets, the counterparty risk, foreseeable market movements and the time available to liquidate the positions.
The VaR approach is measured both at a 99% and at a 95% confidence level, is based on a time horizon of one
month and is calculated using a Monte Carlo Simulation. The holding period relating to financial derivative
instruments, for the purpose of calculating global exposure, is one month.
It is an expected VaR based on the current holdings of the portfolios, so ex ante.
Reference portfolios for relative VaR calculation purposes are disclosed in the Appendix specific to each Sub-
Fund under Section II.
Furthermore, the Fund adopted the “Commitment approach” to calculate and monitor the financial leverage
level for each Sub-Fund.
Both the above mentioned methods are applied in strict compliance with Luxembourg laws, regulations and
ESMA guidelines.
This shall also apply to the following subparagraphs.
Each Sub-Fund may invest, as a part of its investment policy and within the limits laid down in restriction 1. C.
v., in financial derivative instruments provided that the exposure to the underlying assets does not exceed in
aggregate the investment limits laid down in restrictions 1. C. i. to v.. When a Sub-Fund invests in index-based
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