INDEX DESCRIPTION: Global Multi Asset Risk Control Index

Transcription

1 INDEX DESCRIPTION: Global Mult Asset Rsk Control Index The Global Mult Asset Rsk Control Index descrbed below relates to a vrtual rules-based ndex. There s no oblgaton of the Index Sponsor or the Index Calculaton Agent to actually nvest n the underlyng assets. An ncrease n the level of the Global Mult Asset Rsk Control Index cannot be guaranteed. The Index Calculaton Agent s not responsble for the performance of the Index. The tasks of the Index Calculaton Agent are lmted to the calculaton and publcaton of the Index. 1. Index Objectves The Global Mult Asset Rsk Control Index (the "Index" ams to generate long-term postve returns by systematcally nvestng n a collecton of assets, chosen from dfferent asset classes (the Investment Portfolo. The weghtng of each asset wthn the Index depends on the results of a portfolo optmsaton developed wthn Modern Portfolo Theory. Modern Portfolo Theory holds than an optmal nvestment portfolo s one that maxmses expected return, corrected for rsk, where rsk s measured by the expected varance of the portfolo. Furthermore, Modern Portfolo Theory suggests that the nvestment portfolo that acheves ths result s lkely to be a dversfed portfolo of uncorrelated assets. The weghtng of each asset and also the weghtng of each asset class wthn the portfolo are subject to caps. Ths ams to acheve a certan level of dversty and lmt estmaton errors. There s an addtonal drawdown overlay wthn the Index. Ths wll allocate a percentage of the portfolo to rsk-free assets ( Cash Index n certan stuatons n order to reduce rsk of drawdown. Drawdown here refers to percentage reducton n value of the Index from a prevous peak. The Index s denomnated n EUR. Investment Portfolo The Investment Portfolo s a notonal long poston n a collecton of assets, whose percentage weghts are determned by an optmsaton. The percentage weghts add up to 100%. Exposure to the dfferent assets s gven through a notonal long poston n an Exchange Traded Fund ( ETF. The weghtng of each ETF wthn the Investment Portfolo depends on the results of a portfolo optmsaton performed accordng to the prncples of the Modern Portfolo Theory. There s a rebalance on a quarterly bass n normal market condtons (low-to-moderate levels of the CBOE Volatlty Index ( VIX Index. Durng tmes when the VIX Index s hgh, the rebalance frequency can become monthly. Cash Index The Cash Index s a notonal long poston n three ETFs, each of whch derve ther value from a cash depost earnng nterest at EONIA. EONIA refers to an effectve overnght nterest rate set by the European Central Bank, whch s calculated as a weghted average of all unsecured overnght lendngs n the nterbank market, undertaken n the European Unon. The Index wll have a varable percentage allocaton to the Cash Index and ths allocaton s desgned to protect the Investor from drawdown n the Index Level. 2. Index Defntons For the purposes of ths Index Descrpton, the followng defntons shall apply: Cash Component ETF Sponsor means, wth respect to each Cash Component ETF, the followng companes who are ultmately responsble for the creaton, mantenance and publcaton of the offcal Net Asset Values to the Data Vendor(s: j Component ETF Component ETF Sponsor 1 CBEONIA GY Equty ComStage ETF 2 XEON GY Equty DB X-Trackers 3 CSH FP Equty Lyxor ETFs Page 1

2 Cash Component ETF means the followng ETFs, whch can all have postve percentage weght n the Cash Index. Please refer to the column headngs of ths table for related defntons. j Component Currency Incepton Total Expense Asset Class Proxy Index Name Domcle ETF Date Rato 1 CBEONIA EONIA ComStage ETF Commerzbank EUR 03/09/ % Cash Luxembourg GY Equty Index EONIA Index TR UCITS ETF 2 XEON GR EONIA EUR 28/06/ % Cash db x-trackers II EONIA UCITS ETF Luxembourg Equty Index 3 CSH FP EONIA Lyxor ETF Euro Cash EuroMTS EUR 01/10/ % Cash France Equty Index Eona Investable Cash Index Commencement Date means 28 th February "Cash Index Intraday Level" means the prce calculated on a Tradng Second by the Index Calculaton Agent accordng to the rules set out n Secton 3: Index Calculaton "Closng Level" means the closng prce as publshed to the Data Vendor Component ETFs mean the followng ETFs, whch can all have postve percentage weght n the Investment Portfolo. Please refer to the column headngs of ths table for related defntons. Component Currency Incepton Total Expense Asset Class Proxy Index ETF Date Rato Name Domcle 1 SX5EEX Western Shares EURO STOXX 50 UCITS EUR 03/01/ % SX5T Index GY Equty Equty ETF Germany 2 ISF LN Western TUKXG GBp 27/04/ % Equty Equty Index Shares Core FTSE 100 UCITS ETF Ireland 3 CSPX LN Western SPTR500N USD 14/09/ % Equty Equty Index Shares Core S&P 500 UCITS ETF Ireland 4 Western TRSY LN LUATTRUU SPDR Barclays US Treasury Bond USD 06/06/ % Treasury Equty Index UCITS ETF Bonds Ireland 5 Western IEGA LN LEATTREU Shares Core Euro Government Bond EUR 20/04/ % Treasury Equty Index UCITS ETF Bonds Ireland 6 Western IGLT LN FTFIBGT GBP 29/12/ % Treasury Equty Index Bonds Shares Core UK Glts UCITS ETF Ireland 7 IDEM LN Emergng NDUEEGF Shares MSCI Emergng Markets USD 21/11/ % Equty Markets Index UCITS ETF DIST Ireland 8 IEMB LN Emergng JPEICORE Shares JP Morgan $ Emergng USD 20/02/ % Equty Markets Index Markets Bond UCITS ETF Ireland 9 LQDE LN Corporate IBOXIG Shares $ Corporate Bond UCITS USD 16/05/ % Equty Bonds Index ETF Ireland 10 IHYU LN Corporate IBOXHY Shares USD Hgh Yeld Corporate USD 14/09/ % Equty Bonds Index Bond UCITS ETF Ireland 11 IEAC LN Corporate LECPTREU Shares Core Euro Corporate Bond EUR 30/06/ % Equty Bonds Index UCITS ETF Ireland 12 IDUP LN DJUSRET Shares US Property Yeld UCITS USD 23/03/ % Alternatve Equty Index ETF Ireland 13 ComStage ETF Commerzbank CBCOMM CBCICOCA USD 28/05/ % Alternatve Commodty ex-agrculture EW Index GY Equty Index TR UCITS ETF Luxembourg Component ETF Exchange means, wth respect to each Component ETF, the followng Component ETF Component ETF Exchange 1 SX5EEX GY Equty Deutsche Borse Xetra 2 ISF LN Equty London Stock Exchange 3 CSPX LN Equty London Stock Exchange Page 2

3 4 TRSY LN Equty London Stock Exchange 5 IEGA LN Equty London Stock Exchange 6 IGLT LN Equty London Stock Exchange 7 IDEM LN Equty London Stock Exchange 8 IEMB LN Equty London Stock Exchange 9 LQDE LN Equty London Stock Exchange 10 IHYU LN Equty London Stock Exchange 11 IEAC LN Equty London Stock Exchange 12 IDUP LN Equty London Stock Exchange 13 CBCOMM GY Equty Deutsche Börse Xetra Component ETF Sponsor means, wth respect to each Component ETF, the followng companes who are ultmately responsble for the creaton, mantenance and publcaton of the offcal Net Asset Values to the Data Vendor(s: Component ETF Component ETF Sponsor 1 SX5EEX GY Equty Shares ETFs 2 ISF LN Equty Shares ETFs 3 CSPX LN Equty Shares ETFs 4 TRSY LN Equty State Street Global Advsors 5 IEGA LN Equty Shares ETFs 6 IGLT LN Equty Shares ETFs 7 IDEM LN Equty Shares ETFs 8 IEMB LN Equty Shares ETFs 9 LQDE LN Equty Shares ETFs 10 IHYU LN Equty Shares ETFs 11 IEAC LN Equty Shares ETFs 12 IDUP LN Equty Shares ETFs 13 CBCOMM GY Equty ComStage ETF "Data Vendor" means Reuters Domcle means wth respect to a Cash Component ETF or a Component ETF, the country where the Fund has been ncorporated by the Fund Management. These are shown n ths secton, wthn the tables above. "EONIA" means the effectve overnght nterest rate set by the European Central Bank, whch s calculated as a weghted average of all unsecured overnght lendngs n the nterbank market, undertaken n the European Unon. ETF Closng Level means, n respect of an Component ETF or Cash Component ETF, the level whch s used to calculate the Index Level for each Index Calculaton Date at or before the cut-off tme of mdday (12pm n London. Ths level s determned by the calculaton agent, accordng to the followng steps:. The Net Asset Value of the Component ETF correspondng to the Index Calculaton Date; or f ths s not avalable at or before the. An Indcatve Net Asset Value of the Component ETF correspondng to the Index Calculaton Date; or f ths s not avalable. The last avalable ntraday market prce of the Component ETF correspondng to the Index Calculaton Date; or f ths s not avalable v. The latest avalable Net Asset Value of the Component ETF mmedately pror to the Index Calculaton Date "EURUSD" means, n respect of a notonal exchange of EUR to USD n accordance wth ths Index Descrpton, the applcable WM/Reuters "Spot Rate" for such exchange as publshed by The World Markets Company plc n conjuncton wth Reuters at approxmately 4.00 p.m. (London tme on the relevant day or, f such rate s dscontnued or unavalable on the relevant day for Page 3

4 any reason, such other exchange rate for the relevant currency converson as the Sub-Index Calculaton Agent n ts reasonable dscreton (bllges Ermessen ( 315 German Cvl Code (BGB shall determne approprate by reference to an alternatve foregn exchange rate servce. "EURGBP" means, n respect of a notonal exchange of EUR to GBP n accordance wth ths Index Descrpton, the applcable WM/Reuters "Spot Rate" for such exchange as publshed by The World Markets Company plc n conjuncton wth Reuters at approxmately 4.00 p.m. (London tme on the relevant day or, f such rate s dscontnued or unavalable on the relevant day for any reason, such other exchange rate for the relevant currency converson as the Sub-Index Calculaton Agent n ts reasonable dscreton (bllges Ermessen ( 315 German Cvl Code (BGB shall determne approprate by reference to an alternatve foregn exchange rate servce. EURGBP1M means the monthly contract between two partes to buy EUR n exchange for GBP on the next Forward Rollng Date. The prce s quoted n GBP and means the exchange rate for EUR 1 n GBP based on the WM/Reuters close fxng for the relevant date as publshed by The World Markets Company plc n conjuncton wth Reuters at approxmately 4.00 p.m. (London tme EURUSD1M means the monthly contract between two partes to buy EUR n exchange for USD on the next Forward Rollng Date. The prce s quoted n USD and means the exchange rate for EUR 1 n USD based on the WM/Reuters close fxng for the relevant date as publshed by The World Markets Company plc n conjuncton wth Reuters at approxmately 4.00 p.m. (London tme Extraordnary Selecton Date means a day that s four Index Calculaton Dates mmedately precedng an Extraordnary Rebalance Date. Extraordnary Rebalance Date means the last Index Calculaton Date of the each month except February, May, August and November, where the VIX Index on the correspondng Extraordnary Selecton Date was at or above 25%. Frankfurt Tradng Day means all weekdays when Frankfurt Stock Exchange s open for tradng. Frankfurt Tradng Hours means the hours when the Frankfurt Stock Exchange s open for tradng. Ths s expected to be 9:00 a.m. untl 5:30 p.m. Central Eastern Tme (CET on all Index Calculaton Dates. "Futures Exchange" wth respect to an Index Component ETF means the optons or futures exchange wth the hghest tradng volume of optons or futures contracts relatng to the Index Component ETF. If optons or futures contracts on the Index Component ETF are not traded on any exchange, the Futures Exchange shall be the optons or futures exchange wth the hghest amount of optons or futures contracts relatng to shares of companes havng ther resdency n the country n whch the Fund Company has ts resdence. If there s no optons or futures exchange n the country n whch the Fund Company has ts resdency on whch optons or futures contracts on shares are traded, the Index Sponsor wll determne the Futures Exchange n ts reasonable dscreton (bllges Ermessen ( 315 German Cvl Code (BGB. "Fund Management" wth respect to an Index Component ETF means the management of the Fund whch ncludes ( any entty specfed n the Memorandum whch s responsble for provdng nvestment management advce to the Fund and/or to any relevant thrd party, and/or ( any entty or ndvdual who s responsble to manage the busness and the affars of the Fund, and/or ( any ndvdual or group of ndvduals specfed n the Memorandum who s/are responsble for overseeng the actvtes of the Fund and/or (v any entty specfed n the Memorandum that s responsble for the admnstraton of the Fund and the determnaton and publcaton of the NAV of the relevant Index Component ETF. "Fund" or "Fund Company" means wth respect to an Index Component ETF, the Sponsor as gven n the tables above n ths Secton. These are regstered nvestment companes consstng of separate nvestment portfolos, as more fully descrbed n the Memorandum. FX Forward Rollng Date means the last Index Calculaton Date of each calendar month. "Index Calculaton Date" means any weekday whch s a normal tradng day for the London Stock Exchange, Frankfurt Stock Exchange and New York Stock Exchange. "Index Currency" means EUR. Page 4

5 Index Component Commencement Date means 30 th July "Index Commencement Date" means 28 th February Indcatve Net Asset Value (or NAV means, n respect of a Component ETF, the ndcatve pershare value. Ths s usually calculated by dvdng the total value of all the securtes n the Exchange Traded Fund s portfolo, less any labltes, by the number of fund shares outstandng. Moreover, ths s usually calculated before the NAV s calculated and may be dfferent to the NAV. "Index Calculaton Agent" means Solactve Aktengesellschaft. "Index Sponsor" means Commerzbank Aktengesellschaft. "Index Launch Date" means 17 th November "Index Closng Level" means the prce of the Index as calculated by the Index Calculaton Agent n accordance wth Secton 3 - Index Calculaton, and publshed n accordance wth Secton 4 - Index Publcaton. "Index Rebalance Date" means the last Index Calculaton Date of February, May, August and November. "Index Selecton Date" means four Index Calculaton Dates mmedately precedng the Index Rebalance Date "Investment Portfolo Commencement Date" means 28 th February "Memorandum" wth respect to an Component ETF or Cash Component ETF means the prospectus n relaton to the relevant Fund Company, as amended and supplemented from tme to tme. Net Asset Value (or NAV means, n respect of an Component ETF, the per-share value. Ths s usually calculated by dvdng the total value of all the securtes n the Exchange Traded Fund s portfolo, less any labltes, by the number of fund shares outstandng. NAV Publcaton Date means, n respect of an Component ETF, any weekday on whch the Net Asset Value has been publshed. Tradng Second means a second durng a Frankfurt Tradng Day. VIX Index means the CBOE Volatlty Index, whch s a measure of the mpled volatlty of 1-month optons on the S&P 500 Index. It s calculated and publshed by the VIX Index Sponsor on Bloomberg page VIX Index. VIX Index Sponsor means the Chcago Board Optons Exchange (or any acceptable successor thereto. "Wthholdng Tax Rate" means a percentage gven n the below table, subject to change due to a change or amendment to the wthholdng tax laws of the Component ETF Domcle or any poltcal subdvson or any authorty havng power to tax, or n case of a change n or amendment to the offcal nterpretaton or applcaton of any such laws, rules or regulatons by any legslatve body, court, governmental agency or regulatory authorty, as determned (n ts reasonable dscreton (bllges Ermessen ( 315 German Cvl Code (BGB and communcated by the Index Sponsor. Tme Perod Luxembourg Ireland Germany 01/01/ /01/ % 22% 25% 01/01/ /01/ % 20% 20% 01/01/ /05/ % 20% 20% 02/05/ /01/ % 20% 20% 01/01/ /01/ % 20% 25% 01/01/2012 Index Launch Date 15% 20% % Page 5

6 3. Index Calculaton Intal Index Level The Index was ntally calculated on the Index Commencement Date. The ntal Index level (the "Intal Index Level" on the Index Commencement Date s 100 ndex ponts, one ndex pont correspondng to EUR Intraday Index Calculaton Durng Frankfurt Tradng Days followng the Index Launch Date, the Index Calculaton Agent wll calculate the ntraday Index Level. The Index Intraday Level wll be publshed by the Index Calculaton Agent n accordance wth Secton 4 - Index Publcaton. In the avodance of doubt, all references to Index Rebalance Dates n the secton below could mean Index Rebalance Date or Extraordnary Rebalance Date. Calculatons wll be made on the bass of the followng formula: Index (s UW t IP (r IP(s UW t cash r Cash(s Index(s t Means the Index Intraday Level at the Tradng Second (s on the Frankfurt Tradng Day (t UW p (r Mans the Unt Weght of the Investment Portfolo on the Index Rebalance Date (r mmedately precedng the Frankfurt Tradng Day (t, calculated accordng to the formula gven below. UW cash (r Means the Unt Weght of the Cash Index on the Index Rebalance Date (r mmedately precedng the Frankfurt Tradng Day (t, calculated accordng to the formula gven below. IP(s t Means the ntraday level of the Investment Portfolo on the Tradng Second (s on Frankfurt Tradng Day (t Cash(s t Means the ntraday level of the Cash Index on the Tradng Second (s on Frankfurt Tradng Day (t Index Closng Level Calculaton For each Index Calculaton Date followng the Index Launch Date, the Index Calculaton Agent wll calculate the Index Closng Level on the followng Index Calculaton Date. The Index Closng Level wll be publshed by the Index Calculaton Agent n accordance wth Secton 4 - Index Publcaton. Calculatons wll be made on the bass of the followng formula: Index (t UW p (r IP(t UW cash r Cash(t Index (t Means the Index Closng Level on Index Calculaton Date (t UW p (r Means the Unt Weght of the Investment Portfolo on the Index Rebalance Date (r mmedately precedng the Index Calculaton Date (t UW cash (r Means the Unt Weght of the Cash Index on the Index Rebalance Date (r mmedately precedng the Index Calculaton Date (t IP (t Means the level of the Investment Portfolo on Index Calculaton Date (t Cash (t Means the level of the Cash Index on Index Calculaton Date (t Cash Index Calculaton t Page 6

7 The Cash Index was ntally calculated on the Cash Index Commencement Date. The ntal Cash Index level (the "Intal Cash Index Level" on the Cash Index Commencement Date was 100 ndex ponts, one ndex pont correspondng to EUR Followng the Index Launch Date, the Index Calculaton Agent wll calculate the Cash Index durng Frankfurt Tradng Hours (the Intraday Cash Level. 3 Cash (st CW j(r Cash j(st j1 Cash(s t Means the Intraday Cash Level on the Tradng Second (s of the Frankfurt Tradng Day (t. Cash j s t Means the ntraday level of the j-th Cash Index component on the Tradng Second of the Frankfurt Tradng Day (t, where j = 1, 2 or 3. Ths s calculated accordng to the formula below. CW j r Means the unt weght of the j-th Cash Index on the Index Rebalance Date (r mmedately precedng the Frankfurt Tradng Day (t. Ths s calculated accordng to the formula below. 1 Cash(r CW j(r 3 Cash j(r Cash r Means the level of the Cash Index at the close of the Index Rebalance Date (r mmedately precedng the Frankfurt Tradng Day (t. Cash j r Means the level of the j-th Cash Index component at the close of the Index Rebalance Date (r mmedately precedng the Frankfurt Tradng Day (t. CETF j(st Cash j(st Cash j(t 1 CETF j(t 1 Cash j t 1 Means the level of the j-th Cash Index component at the close of the Index Calculaton Date mmedately precedng the Frankfurt Tradng Day (t, where j = 1, 2 or 3. CETF j (s t Means the ntraday level of the j-th Cash Component ETF on the Tradng Second of the Frankfurt Tradng Day (t CETF j (t 1 Means the ETF Closng Level of the j-th Cash Component ETF at the close of the Index Calculaton Date mmedately precedng Frankfurt Tradng Day (t Followng the Cash Index Commencement Date, the Index Calculaton Agent wll calculate the Cash Index Closng Level accordng to the below formula: Cash (t 3 j1 CW j (r Cash j(t t Cash j Means the level of the j-th Cash Index component on the Index Calculaton Date (t, where j = 1, 2 or 3. Ths s calculated accordng to the formula below. Page 7

8 Cash Cash j(t t 1 1 EONIA t 1 j fee CETF j(t Cash j(t 1 CETF (t 1 j j dc 365 f otherwse t Cash Underlyng ETF Incepton Date EONIA (t 1 Means the Closng Level of EONIA on the Index Calculaton Date mmedately precedng (t CETF j (t Means the ETF Closng Level of the j-th Cash Component ETF on the Index Calculaton Date (t dc fee j Means the number of calendar days between Index Calculaton Date (t and the Index Calculaton Date mmedately precedng (t Means the Total Expense Rato of the j-th Cash Component ETF as gven n Secton 2: Index Defntons Investment Portfolo Calculaton The Investment Portfolo s a collecton of nvestments whch track the performance of the 13 Component ETFs gven n Secton 2, after takng nto account FX hedgng (each a Portfolo Component. The Investment Portfolo has formulae for ntraday calculatons, whch are used as nputs to calculate the Intraday Index Level and closng calculatons, whch are used as nputs for the Index Closng Level. The Investment Portfolo was ntally calculated on the Investment Portfolo Commencement Date. The ntal Investment Portfolo level (the "Intal Investment Portfolo Level" on the Investment Portfolo Commencement Date s 100 ndex ponts, one ndex pont correspondng to EUR Followng the Index Launch Date, the Index Calculaton Agent wll calculate the Investment Portfolo durng Frankfurt Tradng Days. Ths s an nput for the calculaton and publcaton of the Intraday Index Level. 13 IP (st IPW (r PC (st 1 IP(s t Means the level of the Investment Portfolo on the Tradng Second (s of the Frankfurt Tradng Day (t IPW (r Means the unt weght of the -th Portfolo Component on Index Rebalance Date (r mmedately precedng Frankfurt Tradng Day (t, whch s calculated accordng to the formula below. PC (s t Means the level of the -th Portfolo Component on the Tradng Second (s of the Frankfurt Tradng Day (t, whch s calculated accordng to the formula below IPW (r MPW (r IP(r PC (r Page 8

9 IP (r Means the level of the Investment Portfolo at the close of the Index Rebalance Date mmedately precedng Frankfurt Tradng Day (t MPW (r Means the Model Percentage Weght of the -th Portfolo Component on the Index Rebalance Date mmedately precedng Frankfurt Tradng Day (t, calculated accordng to the formula gven n Appendx 1: Weghts Calculaton. PC (r Means the level of the -th Portfolo Component on Index Rebalance Date (r mmedately precedng Frankfurt Tradng Day (t For = 1, 5 and 11 EUR denomnated Portfolo Components ADJ (st PC (st PC (t 1 ADJ (t 1 PC t 1 Means the level of the -th Portfolo Component on the Index Calculaton Date mmedately precedng Frankfurt Tradng Day (t calculated accordng to the formula below. ADJ (t 1 Means the level of the -th adjusted Component ETF as calculated on the Index Calculaton Date mmedately precedng Frankfurt Tradng Day (t, accordng to the formula gven below. ADJ (st Means the ntraday level of the -th adjusted Component ETF as calculated on the Tradng Second (s on the Frankfurt Tradng Day (t, accordng to the formula gven below. ETF (st ADJ (st ADJ (t 1 ETF (t 1 ETF (s t Means the ntraday level of the -th Component ETF on the Tradng Second of the Frankfurt Tradng Day (t ETF (t 1 Means the ETF Closng Level of the -th Component ETF on the NAV Publcaton Date mmedately precedng the Frankfurt Tradng Day (t Followng the Index Component Commencement Date, the Index Calculaton Agent wll calculate the closng level of the Portfolo Component accordng to the followng formula: Proxy (t dc PC (t 1 fee Proxy(t PC (t ADJ (t PC (t 1 ADJ (t 1 f otherwse t Underlyng ETF Incepton Date PC t Means the level of the -th Portfolo Component on the Index Calculaton Date (t Pr oxy (t Means the Closng Level of the Proxy Index of the -th Component ETF on Index Calculaton Date (t fee dc Means the Total Expense Rato of the -th Component ETF as gven n the table n Secton 2 above. Means the number of calendar days between the Index Calculaton Date (t and Page 9

10 the Index Calculaton Date mmedately precedng (t ADJ (t Means the level of the -th Adjusted Component ETF as calculated on Index Calculaton Date (t, accordng to the formula gven below. For each (, the Index Calculaton Agent wll calculate the Adjusted Component ETF level for each day where the NAV of ths Component ETF s publshed followng the Component ETF Incepton Date. ETF (p ADJ (p ( 1 tax(p dv (p 1 ETF (p 1 dv (p ADJ (p 1 ETF (p ETF (p 1 f otherwse p Underlyng ETF Incepton Date ADJ (p Means the level of the -th adjusted Component ETF on the NAV Publcaton Date (p ETF (p Means the ETF Closng Level of the -th Component ETF on the NAV Publcaton Date (p rounded to 3 decmal places ADJ (p 1 Means the level of the -th adjusted Component ETF on the NAV Publcaton Date mmedately precedng (p dv (p Means the dvdend payment for the -th Component ETF on the NAV Publcaton Date (p. If p s not an ex-date for a dvdend payment, then dv (p 0 ETF (p 1 Means the ETF Closng Level of the -th Component ETF on the NAV Publcaton Date mmedately precedng (p rounded to 3 decmal places tax (p Means the Wthholdng Tax Rate applcable to the dvdend payment of the -th Component ETF on NAV Publcaton Date (p. Ths depends on the Domcle of the Component ETF. For = 2 and 6 GBP Denomnated Portfolo Components PC(st UFPC s FXH (s t t UFPC (s t Means the ntraday level of the -th FX unhedged Portfolo Component on the Tradng Second of the Frankfurt Tradng Day (t calculated accordng to the formula below FXH (s t Means the ntraday level of the -th FX Hedge on the Tradng Second of the Frankfurt Tradng Day (t, calculated accordng to the formula below 1 1 D d FXH (st PC (r 1 EURGBP(r 1 EURGBP1 M(r EURGBP(s t D 1 1 EURGBP1 M(s t EURGBP(s t PC (r 1 Means the level of the -th Portfolo Component on the Index Calculaton Date mmedately precedng the FX Forward Rollng Date (r mmedately precedng Page 10

11 Frankfurt Tradng Day (t EURGBP (r 1 Means the EURGBP Closng Level on the Index Calculaton Date mmedately precedng the FX Forward Rollng Date (r mmedately precedng Frankfurt Tradng Day (t EURGBP1 M(r Means the EURGBP 1 month forward level on the FX Forward Rollng Date (r mmedately precedng Frankfurt Tradng Day (t D d Means the number of calendar days startng from, but not ncludng, the FX Forward Rollng Date mmedately precedng Frankfurt Tradng Day (t up to and ncludng the FX Forward Rollng Date followng Frankfurt Tradng Day (t Means the number of calendar days startng from, but not ncludng, the FX Forward Rollng Date mmedately precedng Frankfurt Tradng Day (t up to and ncludng Frankfurt Tradng Day (t EURGBP1 M(st Means the ntraday level of the EURGBP 1 month forward on the Tradng Second of the Frankfurt Tradng Day (t EURGBP(s t Means the ntraday level of EURGBP on the Tradng Second of the Frankfurt Tradng Day (t UFPC st UPC (st PC (r UPC (r 1 EURGBP(s t 1 EURGBP(r PC (r Means the level of the -th Portfolo Component on the FX Forward Rollng Date (r mmedately precedng Frankfurt Tradng Day (t UPC (r Means the level of the -th unhedged Portfolo Component on the FX Forward Rollng Date (r mmedately precedng Frankfurt Tradng Day (t as calculated by the formula below UPC (s t Means the ntraday level of the -th unhedged Portfolo Component on the Tradng Second of the Frankfurt Tradng Day (t as calculated by the formula below EURGBP(s t Means the ntraday EURGBP level on the Tradng Second of the Frankfurt Tradng Day (t EURGBP (r Means the Closng Level of EURGBP on the Index Rebalance Date (r mmedately precedng Frankfurt Tradng Day (t ADJ (st UPC (st UPC (t 1 ADJ (t 1 UPC t 1 Means the level of the -th unhedged Portfolo Component on the Index Calculaton Date mmedately precedng Frankfurt Tradng Day (t calculated accordng to the formula below. ADJ (t 1 Means the level of the -th adjusted Component ETF as calculated on the Index Calculaton Date mmedately precedng Frankfurt Tradng Day (t, accordng to the formula gven below. ADJ (st Means the ntraday level of the -th adjusted Component ETF as calculated on the Tradng Second (s on the Frankfurt Tradng Day (t, accordng to the formula gven below. Page 11

12 ETF (st ADJ (st ADJ (t 1 ETF (t 1 ETF (s t Means the ntraday level of the -th Component ETF on the Tradng Second of the Frankfurt Tradng Day (t ETF (t 1 Means the ETF Closng Level of the -th Component ETF on the NAV Publcaton Date mmedately precedng the Frankfurt Tradng Day (t Followng the Index Component Commencement Date, the Index Calculaton Agent wll calculate the closng level of the Portfolo Component accordng to the followng formula: PC(t UFPC t FXH (t UFPC (t Means the level of the -th FX unhedged Portfolo Component on the Index Calculaton Date (t calculated accordng to the formula below FXH (t Means the level of the -th FX Hedge on the Index Calculaton Date (t, calculated accordng to the formula below 1 1 D d FXH (t PC (r 1 EURGBP(r 1 EURGBP1 M(r EURGBP(t D 1 1 EURGBP1 M(t EURGBP(t PC (r 1 Means the level of the -th Portfolo Component on the Index Calculaton Date mmedately precedng the FX Forward Rollng Date (r mmedately precedng Index Calculaton Date (t EURGBP (r 1 Means the EURGBP level on the Index Calculaton Date mmedately precedng the FX Forward Rollng Date (r mmedately precedng Index Calculaton Date (t EURGBP1 M(r EURGBP 1 month forward Closng Level on the FX Forward Rollng Date (r mmedately precedng Index Calculaton Date (t D d Means the number of calendar days startng from, but not ncludng, the FX Forward Rollng Date mmedately precedng Index Calculaton Date (t up to and ncludng the FX Forward Rollng Date followng Index Calculaton Date (t Means the number of calendar days startng from, but not ncludng, the FX Forward Rollng Date mmedately precedng Index Calculaton Date (t up to and ncludng Frankfurt Tradng Day (t EURGBP1 M(t Means the Closng Level of the EURGBP 1 month forward on the Index Calculaton Date (t EURGBP (t Means the Closng Level of EURGBP on the Tradng Second of the Frankfurt Tradng Day (t UFPC t UPC (t PC (r UPC (r 1 EURGBP(t 1 EURGBP(r (r PC Means the level of the -th Portfolo Component on the FX Forward Rollng Date (r mmedately precedng the Index Calculaton Date (t Page 12

13 UPC (r Means the level of the -th unhedged Portfolo Component on the FX Forward Rollng Date (r mmedately precedng the Index Calculaton Date (t as calculated by the formula below UPC (t Means the level of the -th unhedged Portfolo Component on the Index Calculaton Date (t as calculated by the formula below EURGBP (t Means the Closng Level of EURGBP on the Index Calculaton Date (t EURGBP (r Means the Closng Level of EURGBP on the Index Rebalance Date (r mmedately precedng Index Calculaton Date (t Proxy (t dc UPC (t 1 fee Proxy(t UPC (t ADJ (t UPC (t 1 ADJ (t 1 f otherwse t Underlyng ETF Incepton Date UPC t Means the level of the -th unhedged Portfolo Component on the Index Calculaton Date (t Pr oxy (t Means the Closng Level of the Proxy Index of the -th Component ETF on Index Calculaton Date (t fee dc Means the Total Expense Rato of the -th Component ETF Means the number of calendar days between the Index Calculaton Date (t and the Index Calculaton Date mmedately precedng (t ADJ (t Means the level of the -th Adjusted Component ETF as calculated on Index Calculaton Date (t, accordng to the formula gven below. For each (I = 2, 6 and 14, the Index Calculaton Agent wll calculate the Adjusted Component ETF level for each day where the NAV of ths Component ETF s publshed followng the Component ETF Incepton Date. ETF (p ADJ (p ( 1 tax(p dv (p 1 ETF (p 1 dv (p ADJ (p 1 ETF (p ETF (p 1 f otherwse p Underlyng ETF Incepton Date ADJ (p Means the level of the -th adjusted Component ETF on the NAV Publcaton Date (p ETF (p Means the offcal NAV of the -th Component ETF on the NAV Publcaton Date (p rounded to 3 decmal places ADJ (p 1 Means the level of the -th adjusted Component ETF on the NAV Publcaton Date mmedately precedng (p dv (p Means the dvdend payment for the -th Component ETF on the NAV Publcaton Page 13

14 Date (p. If p s not an ex-date for a dvdend payment, then dv (p 0 ETF (p 1 Means the ETF Closng Level of the -th Component ETF on the NAV on the NAV Publcaton Date mmedately precedng (p rounded to 3 decmal places tax (p Means the Wthholdng Tax Rate applcable to the dvdend payment of the -th Component ETF on NAV Publcaton Date (p. Ths depends on the Domcle of the Component ETF. For = 3, 4, 7, 8, 9, 10, 12 and 13 USD Denomnated Portfolo Components PC(st UFPC s FXH (s t t UFPC (s t Means the ntraday level of the -th FX unhedged Portfolo Component on the Tradng Second of the Frankfurt Tradng Day (t calculated accordng to the formula below FXH (s t Means the ntraday level of the -th FX Hedge on the Tradng Second of the Frankfurt Tradng Day (t, calculated accordng to the formula below 1 1 D d FXH (st PC (r 1 EURUSD(r 1 EURUSD1 M(r EURUSD(s t D 1 1 EURUSD1 M(s t EURUSD(s t PC (r 1 Means the level of the -th Portfolo Component on the Index Calculaton Date mmedately precedng the FX Forward Rollng Date (r mmedately precedng Frankfurt Tradng Day (t EURUSD (r 1 Means the EURUSD level on the Index Calculaton Date mmedately precedng the FX Forward Rollng Date (r mmedately precedng Frankfurt Tradng Day (t EURUSD1 M(r Means the EURUSD 1 month forward level on the FX Forward Rollng Date (r mmedately precedng Frankfurt Tradng Day (t D d Means the number of calendar days startng from, but not ncludng, the FX Forward Rollng Date mmedately precedng Frankfurt Tradng Day (t up to and ncludng the FX Forward Rollng Date followng Frankfurt Tradng Day (t Means the number of calendar days startng from, but not ncludng, the FX Forward Rollng Date mmedately precedng Frankfurt Tradng Day (t up to and ncludng Frankfurt Tradng Day (t EURUSD1 M(s t Means the ntraday level of the EURUSD 1 month forward on the Tradng Second of the Frankfurt Tradng Day (t EURUSD(s t Means the ntraday level of EURUSD on the Tradng Second of the Frankfurt Tradng Day (t UFPC st UPC (st PC (r UPC (r 1 EURUSD(s t 1 EURUSD(r (r PC Means the level of the -th Portfolo Component on the FX Forward Rollng Date (r mmedately precedng Frankfurt Tradng Day (t Page 14

15 UPC (r Means the level of the -th unhedged Portfolo Component on the FX Forward Rollng Date (r mmedately precedng Frankfurt Tradng Day (t as calculated by the formula below UPC (s t Means the ntraday level of the -th unhedged Portfolo Component on the Tradng Second of the Frankfurt Tradng Day (t as calculated by the formula below EURUSD(s t Means the ntraday EURUSD level on the Tradng Second of the Frankfurt Tradng Day (t EURUSD (r Means the Closng Level of EURUSD on the FX Forward Rollng Date (r mmedately precedng Frankfurt Tradng Day (t ADJ (st UPC (st UPC (t 1 ADJ (t 1 UPC t 1 Means the level of the -th unhedged Portfolo Component on the Index Calculaton Date mmedately precedng Frankfurt Tradng Day (t calculated accordng to the formula below. ADJ (t 1 Means the level of the -th adjusted Component ETF as calculated on the Index Calculaton Date mmedately precedng Frankfurt Tradng Day (t, accordng to the formula gven below. ADJ (st Means the ntraday level of the -th adjusted Component ETF as calculated on the Tradng Second (s on the Frankfurt Tradng Day (t, accordng to the formula gven below. ETF (st ADJ (st ADJ (t 1 ETF (t 1 ETF (s t Means the ntraday level of the -th Component ETF on the Tradng Second of the Frankfurt Tradng Day (t ETF (t 1 Means the ETF Closng Level of the -th Component ETF on the NAV Publcaton Date mmedately precedng the Frankfurt Tradng Day (t Followng the Index Component Commencement Date, the Index Calculaton Agent wll calculate the closng level of the Portfolo Component accordng to the followng formula: PC(t UFPC t FXH (t UFPC (t Means the level of the -th FX unhedged Portfolo Component on the Index Calculaton Date (t calculated accordng to the formula below FXH (t Means the level of the -th FX Hedge on the Index Calculaton Date (t, calculated accordng to the formula below 1 1 D d FXH (t PC (r 1 EURUSD(r 1 EURUSD1 M(r EURUSD(t D 1 1 EURUSD1 M(t EURUSD(t Page 15

16 PC (r 1 Means the level of the -th Portfolo Component on the Index Calculaton Date mmedately precedng the FX Forward Rollng Date (r mmedately precedng Index Calculaton Date (t EURUSD (r 1 Means the EURUSD Closng Level on the Index Calculaton Date mmedately precedng the FX Forward Rollng Date (r mmedately precedng Index Calculaton Date (t EURUSD1 M(r Means the EURUSD 1 month forward Closng Level on the FX Forward Rollng Date (r mmedately precedng Index Calculaton Date (t D d Means the number of calendar days startng from, but not ncludng, the FX Forward Rollng Date mmedately precedng Index Calculaton Date (t up to and ncludng the FX Forward Rollng Date followng Index Calculaton Date (t Means the number of calendar days startng from, but not ncludng, the FX Forward Rollng Date mmedately precedng Index Calculaton Date (t up to and ncludng Frankfurt Tradng Day (t EURUSD1 M(t Means the Closng Level of the EURUSD 1 month forward on the Index Calculaton Date (t EURUSD (t Means the Closng Level of EURUSD on the Tradng Second of the Frankfurt Tradng Day (t UFPC t UPC (t PC (r UPC (r 1 EURUSD(t 1 EURUSD(r PC (r Means the level of the -th Portfolo Component on the FX Forward Rollng Date (r mmedately precedng the Index Calculaton Date (t UPC (r Means the level of the -th unhedged Portfolo Component on the FX Forward Rollng Date (r mmedately precedng the Index Calculaton Date (t as calculated by the formula below UPC (t Means the level of the -th unhedged Portfolo Component on the Index Calculaton Date (t as calculated by the formula below EURUSD (t Means the Closng Level of EURUSD on the Index Calculaton Date (t EURUSD (r Means the Closng Level of EURUSD on the FX Forward Rollng Date (r mmedately precedng Index Calculaton Date (t Proxy (t dc UPC (t 1 fee Proxy(t UPC (t ADJ (t UPC (t 1 ADJ (t 1 f otherwse t Underlyng ETF Incepton Date UPC t Means the level of the -th unhedged Portfolo Component on the Index Calculaton Date (t Pr oxy (t Means the Closng Level of the Proxy Index of the -th Component ETF on Index Calculaton Date (t fee Means the Expense Rato of the -th Component ETF Page 16

17 dc Means the number of calendar days between the Index Calculaton Date (t and the Index Calculaton Date mmedately precedng (t ADJ (t Means the level of the -th Adjusted Component ETF as calculated on Index Calculaton Date (t, accordng to the formula gven below. For each ( = 3, 4, 7, 8, 9, 10, 12 and 13, the Index Calculaton Agent wll calculate the Adjusted Component ETF level for each day where the NAV of ths Component ETF s publshed followng the Component ETF Incepton Date. ETF (p ADJ (p ( 1 tax(p dv (p 1 ETF (p 1 dv (p ADJ (p 1 ETF (p ETF (p 1 f otherwse p Underlyng ETF Incepton Date ADJ (p Means the level of the -th adjusted Component ETF on the NAV Publcaton Date (p ETF (p Means the ETF Closng Level of the -th Component ETF on the NAV Publcaton Date (p rounded to 3 decmal places ADJ (p 1 Means the level of the -th adjusted Component ETF on the NAV Publcaton Date mmedately precedng (p dv (p Means the dvdend payment for the -th Component ETF on the NAV Publcaton Date (p. If p s not an ex-date for a dvdend payment, then dv (p 0 ETF (p 1 Means the ETF Closng Level of the -th Component ETF on the NAV on the NAV Publcaton Date mmedately precedng (p rounded to 3 decmal places tax (p Means the Wthholdng Tax Rate applcable to the dvdend payment of the -th Component ETF on NAV Publcaton Date (p. Ths depends on the Domcle of the Component ETF. Investment Portfolo Unt Weghts Calculaton At each Index Rebalance Date (or Extraordnary Rebalance Date, the Index Calculaton Agent wll determne the unt weghts of the Investment Portfolo wthn the Index. Ths uses the percentage exposure to the Investment Portfolo, whch s calculated n attempt to reduce drawdown rsk by allocatng the rest of the exposure wthn the Index to the Cash Index UW p Index(r (r PWp(s IP(r Index (r Means the Index Level on Index Rebalance Date (r UW p (r Means the Unt Weght of the Investment Portfolo on the Index Rebalance Date (r mmedately precedng the Frankfurt Tradng Day (t IP (r Means the level of the Investment Portfolo on the Index Rebalance Date (r Page 17

18 PW p (s Means the percentage weght of the Investment Portfolo on Index Selecton Date (s as calculated by the rules below (see secton Investment Portfolo Percentage Weght Calculaton Cash Index Unt Weght Calculaton UW cash Index(r (r ( 1 PWp(s Cash(r Cash (r Means the Cash Index Closng Level on the Index Rebalance Date (r Investment Portfolo Percentage Weght Calculaton s Cushon s PW p (s mn 100 %,max 43%,Multpler(s Index Index (s Means the Index Closng Level on Index Selecton (or Extraordnary Selecton Date (s. Cushon (s Means the cushon between the Index Floor and the Index Level on Index Selecton (or Extraordnary Selecton Date (s as calculated by the formula below Multpler (s Means the Investment Portfolo Multpler, as calculated n Appendx 1: Weghts Calculaton on Index Selecton (or Extraordnary Selecton Date (s Cushon s max0,index(s Floor(s ( 1 dd Index( 0 ts Floor(s ( 1 dd max(index(t t0 ts ( 1 dd max (Index(t ts119 f f s s the frst selecton date dc 120 otherwse dd Means the Drawdown Target, equal to 8% dc Index( 0 Means the number of Index Calculaton Dates between Index Commencement Date (t=0 and Index Selecton Date (s Means the Intal Index Level on Index Commencement Date, equal to 100 EUR 4. Index Publcaton The Index Calculaton Agent wll publsh the Index Intraday Level on Bloomberg tcker CBKIMVUI Index contnuously durng Frankfurt Tradng Hours. In addton, for each Index Calculaton Date, the Index Calculaton Agent wll publsh the offcal Index Closng Level on Bloomberg tcker CBKIMVOE Index on the mmedately followng Index Calculaton Date at or before mdday London tme. Page 18

19 5. Index Fees There are no Index Fees contaned wthn ths Index. 6. Addtonal Provsons relatng to the Index In ths secton, the Component ETFs and the Cash Component ETFs are referred to collectvely as the Index Component ETFs. Suspenson of the Calculaton of the Index The Index Calculaton Agent may suspend the calculaton of the Index f on a Bankng Day the ETF Closng Level of one or more Index Component ETFs s not determned (the "Suspenson of the Calculaton of the Index". Extraordnary Index Adjustments Upon the occurrence of an Extraordnary Event n relaton to an Index Component ETF ncluded n the Index whch has a materal effect on the relevant Index Component ETF or the level of the Index Component ETF, the Index Sponsor shall make any such adjustments to the Index as are necessary to account for the economc effect of the Extraordnary Event on the Index and to preserve, to the extent possble, the economc profle that the Index had pror to the occurrence of the Extraordnary Event n accordance wth the followng provsons (each an "Adjustment". The Index Sponsor shall decde n ts reasonable dscreton (bllges Ermessen ( 315 German Cvl Code (BGB whether an Extraordnary Event has occurred and whether such Extraordnary Event has a materal effect on the relevant Index Component ETF. (a An Adjustment may result n ( the Index Component ETF beng replaced by an ETF (a "Substtuton ETF" that (1 s denomnated n the same currency as the Index Component ETF, (2 has the same or smlar characterstcs and features as the Fund and (3 has smlar nvestment objectves and polces to those of the Fund mmedately pror to the occurrence of the Extraordnary Event (a "Substtuton". Any Substtuton shall occur on the bass of the ETF Closng Level as of the Exchange Busness Day mmedately pror to the occurrence of the Extraordnary Event f the Extraordnary Event was announced at least 10 (ten Exchange Busness Days pror to such occurrence, and otherwse the ETF Closng Level as of the Exchange Busness Day mmedately subsequent to the occurrence of the Extraordnary Event (the "Removal Value"; and/or ( ncreases or decreases of specfed varables and values n the calculaton of the Index takng nto account (a the effect of the Extraordnary Event on the level of the respectve Index Component ETF; (b the dlutng or concentratve effect of an Extraordnary Event on the theoretcal value of the relevant Index Component ETF; (c the Removal Value or any fracton thereof n connecton wth a Substtuton; or (d any cash compensaton or other compensaton n connecton wth a Replacement; and/or ( consequental amendments to the provsons of the terms of the Index that are requred to fully reflect the consequences of the Replacement. (b Adjustments shall correspond to the adjustments to optons or futures contracts relatng to the relevant Index Component ETF made by the relevant Futures Exchange (a "Futures Exchange Adjustment". Page 19

20 ( ( If the Futures Exchange Adjustment results n the replacement of the Index Component ETF by a basket of ETF shares, the Index Sponsor shall be enttled to determne that only the ETF share wth the hghest market captalsaton on the Cut-off Date shall be the (replacement Index Component ETF for the purpose of the Index, and to hypothetcally sell the remanng ETF shares n the basket on the frst Exchange Busness Day followng the Cut-off Date at the frst avalable prce and hypothetcally renvest the proceeds mmedately afterwards n the (replacement Index Component ETF by makng an approprate adjustment to the specfed varables and values of the Index. If the determnaton of the share wth the hghest market captalsaton would result n an economc napproprate Adjustment, the Index Sponsor shall be enttled to select any other ETF share of the basket of ETF shares to be the (replacement Index Component ETF n accordance wth the forgong sentence. The Index Sponsor shall decde n ts reasonable dscreton (bllges Ermessen ( 315 German Cvl Code (BGB whether ths s the case. The Index Sponsor shall not be requred to make adjustments to the Index by reference to Futures Exchange Adjustments, n cases where (a (b (c the Futures Exchange Adjustments would result n economcally rrelevant adjustments to the Index; the Index Sponsor shall decde n ts reasonable dscreton (bllges Ermessen ( 315 German Cvl Code (BGB whether ths s the case; the Futures Exchange Adjustments volate the prncples of good fath or would result n adjustments of the Index contrary to the prncple to preserve the economc profle that the Index had pror to the occurrence the Extraordnary Event and to compensate for the economc effect thereof on the level of the Index Component ETF; the Index Sponsor shall decde n ts reasonable dscreton (bllges Ermessen ( 315 German Cvl Code (BGB whether ths s the case; or n cases where no Futures Exchange Adjustment occurs but where such Futures Exchange Adjustment would be requred pursuant to the adjustment rules of the Futures Exchange; n such case, the Index Sponsor shall decde n ts reasonable dscreton (bllges Ermessen ( 315 German Cvl Code (BGB whether ths s the case and shall make Adjustments n accordance wth the adjustment rules of the Futures Exchange. ( In the event of any doubts regardng the applcaton of the Futures Exchange Adjustment or adjustment rules of the Futures Exchange or where no Futures Exchange exsts, the Index Sponsor shall make such adjustments to the Index whch are requred n ts reasonable dscreton (bllges Ermessen ( 315 German Cvl Code (BGB to preserve the economc profle of the Index pror to the occurrence of the Extraordnary Event and to compensate for the economc effect thereof on the prce of the Index Component ETF. (c (d (e Any reference made to the Index Component ETF n ths Index Descrpton shall, f the context so admts, then refer to the replacement ETF share. All related defntons shall be deemed to be amended accordngly. Adjustments shall take effect as from the date (the "Cut-off Date" determned by the Index Sponsor n ts reasonable dscreton (bllges Ermessen ( 315 German Cvl Code (BGB, provded that (f the Index Sponsor takes nto consderaton the manner n whch adjustments are or would be made by the Futures Exchange the Index Sponsor shall take nto consderaton the date at whch such adjustments take effect or would take effect at the Futures Exchange. Adjustments as well as ther Cut-off Date shall be made avalable by the Index Calculaton Agent n accordance wth Secton 4 Index Publcaton. "Extraordnary Event" wth respect to an Index Component ETF means: (a the mplementaton of any change to the terms and condtons of the Index Component ETF, whch s of a materal nature ncludng but not lmted to such changes as ( a change n the rsk profle of the Fund and/or the Index Component ETF; ( a change n the votng rghts, f any, assocated wth the votng shares of the Index Component ETF; ( an alteraton to the nvestment objectves of the Fund ncludng the replacement of the Index Component ETF Index; Page 20

21 or (v a change n the currency n whch the Index Component ETF are denomnated so that the NAV s quoted n a dfferent currency from that n whch t was quoted on the Index Commencement Date. The Index Sponsor shall decde n ts reasonable dscreton (bllges Ermessen ( 315 German Cvl Code (BGB whether such a change s of a materal nature; (b (c (d (e (f (g (h ( (j (k (l (m (n (o (p (q the breach of the nvestment objectves of the Index Component ETF (as defned n the Memorandum f such breach s of a materal nature. The Index Sponsor shall decde n ts reasonable dscreton (bllges Ermessen ( 315 German Cvl Code (BGB whether ths s the case; the mposton or ncrease of subscrpton and/or redempton fees, or taxes or other smlar fees, payable n respect of a purchase or redempton of the Index Component ETF after the Index Commencement Date; f the Fund Management fals for reasons other than of a techncal or operatonal nature, to calculate the NAV for ten consecutve Index Calculaton Dates; f the actvtes of the Index Component ETF and/or the Fund Management are placed under revew by ther regulators for reasons of wrongdong, breach of any rule or regulaton or other smlar reason; the Compulsory Redempton of the Index Component ETF by the Fund Management for any reason; f the ssue of addtonal shares of the Index Component ETF or the redempton of exstng Index Component ETF s suspended the wndng-up or termnaton of the Index Component ETF for any reason; f the Index Component ETF s superseded by a successor ETF (the "Successon" followng a merger or smlar event unless the Successon does not have any relevant economc effect on the Index. The Index Sponsor shall decde n ts reasonable dscreton (bllges Ermessen ( 315 German Cvl Code (BGB whether ths s the case; the cancellaton of the regstraton, or of the approval, of the Index Component ETF and/or the Fund Management by any relevant authorty or body; the replacement of the Fund Management, unless the relevant replacement s an ndvdual or group of ndvduals who, or a corporate entty whch, s reputable and experenced n ther feld. The Index Sponsor shall decde n ts reasonable dscreton (bllges Ermessen ( 315 German Cvl Code (BGB whether ths s the case; the termnaton of the lstng of the Index Component ETF on the Exchange due to a merger by absorpton or by creaton or due to any other reasons, or the becomng known of the ntenton of the Fund Company or the announcement of the Exchange that the lstng of the Index Component ETF at the Exchange wll termnate mmedately or at a later date and that the Index Component ETF wll not be admtted, traded or lsted at any other exchange whch s comparable to the Exchange (ncludng the exchange segment, f applcable mmedately followng the termnaton of the lstng; a procedure s ntroduced or ongong pursuant to whch the Index Component ETF or the substantal assets of the Fund Company are or are lable to be natonalzed or exproprated or otherwse transferred to publc agences, authortes or organzatons; the applcaton for nsolvency proceedngs or for comparable proceedngs wth regard to the assets of the Fund Company accordng to the applcable law of the Fund Company; any change n the perodcty of the calculaton or the publcaton of the NAV; the cessaton of the calculaton and publcaton of the Index Component ETF Index by the Index Component ETF Index Sponsor; or any other event n respect of the Index Component ETF beng economcally equvalent to the before-mentoned events wth regard to ther effects. The Index Sponsor shall decde n ts Page 21