18 August 2009 DANSKE INVEST LEVERAGED DANISH MORTGAGE BOND FUND A Cell of DANSKE INVEST PCC LIMITED (a protected cell investment company registered with limited liability in Guernsey with registration number 42589 migrated from the Cayman Islands and registered in Guernsey on 3 December 2004) with the following Sub-Classes: - the Kroner Class Sub-Class [GB00B0521P23] - the Class S Sub-Class [GB00B0521Y14] SUPPLEMENTAL SCHEME PARTICULARS These supplemental Scheme Particulars containing information relating to the Danske Invest Leveraged Danish Mortgage Bond Fund should be read and construed in conjunction with the most recent Scheme Particulars relating to Danske Invest PCC Limited (the Principal Particulars"). This document is deemed to be incorporated in and to form part of the Principal Particulars and may not be distributed unless it is accompanied by them and such other documentation as the Principal Particulars may prescribe. Investors should contact Danske Bank International S.A. to make sure they are in possession of the most recent copy of the Principal Particulars and these Supplemental Scheme Particulars.
TABLE OF CONTENTS TABLE OF CONTENTS... i DEFINITIONS... 1 DANSKE INVEST LEVERAGED DANISH MORTGAGE BOND FUND... 3 Introduction... 3 Investment Objective and Policy... 3 Investment Restrictions... 4 Investment Manager... 4 Conflicts of Interest... 5 Distribution Policy... 5 Risk Factors... 6 SUBSCRIPTION AND REDEMPTION OF SHARES... 7 Subscriptions... 7 Minimum Subscription... 8 Contact Details of the Distributor... 8 Redemption Notice and Payment of Redemption Proceeds... 9 Deferral of Redemptions... 10 Compulsory Redemption... 10 Availability of Prices... 10 FEES AND EXPENSES... 11 Principal Manager's Fee... 11 Investment Manager s Fee... 11 Distributor s Fees... 12 Fees of the Administrator and Custodian... 12 General Expenses... 13 i
DEFINITIONS Save as provided below, words and expressions defined in the Principal Particulars shall have the same meanings herein. In these supplemental particulars, the following words shall have the meanings opposite them unless the context in which they appear requires otherwise:- Class S Gross Asset Value Class S Sub-Class Class S Sub-Class Net Asset Value Company Dealing Day Euro, EUR and Fund Gross Asset Value Hurdle Rate Investment Agreement Investment Manager For the purpose of calculating the Investment Manager s and Distributor s fees for the management of the Class S Sub-Class, the value of the relevant assets of the Class S Sub-Class calculated in accordance with the Articles without deduction of any liabilities; Shares in a Euro denominated Separate Fund, designated as the Class S Sub-Class, of a separate class of Shares in the Fund; The value of the relevant assets less the relevant liabilities of the Class S Sub-Class of the Fund calculated in accordance with the Articles; Danske Invest PCC Limited; The first Business Day immediately following the relevant Valuation Day and/or such other day or days as the Directors may from time to time determine to be the day or days on which dealings may occur in Shares in the Fund (or any class within the Fund); The euro unit of the European single currency; The Danske Invest Leveraged Danish Mortgage Bond Fund, the Cell to which these Supplemental Particulars relate; The value of the assets calculated without deduction of any liabilities; The rate over the relevant benchmark applicable to the correspondingly denominated sub-class of the Fund which triggers the payment of a performance fee as set out in the section headed Investment Manager s Fee on page 9; The agreement between a client and Danske Bank International S.A. by which the client may subscribe for Shares in the Class S Sub-Class; Danske Bank A/S (acting through its Danske Capital division); - 1 -
Kroner Sub-Class Kroner Sub-Class Net Asset Value Valuation Day Valuation Point Shares in the DKK denominated Separate Fund, designated as the Kroner Sub-Class, of a separate class of Shares in the Fund; The value of the relevant assets less the relevant liabilities of the Kroner Sub-Class of the Fund calculated in accordance with the Articles; Every Monday preceding a Dealing Day or if such day is not a Business Day the immediately preceding Business Day and/or such other day or days as the Directors may from time to time determine to be the day or days on which a valuation of the assets of the Fund (or any class within the Fund) will be carried out; and 3:00 p.m. (Central European Time) in the relevant market or markets on the Valuation Day immediately preceding the relevant Dealing Day. - 2 -
DANSKE INVEST LEVERAGED DANISH MORTGAGE BOND FUND Introduction The Fund is a Cell of Danske Invest PCC Limited, an open-ended protected cell investment company migrated from the Cayman Islands and registered with limited liability in Guernsey on 3 December 2004 and authorised by the Guernsey Financial Services Commission as a Class B collective investment scheme. The Directors have the power from time to time to establish and maintain a Separate Fund for each class of Shares within the Fund. The Directors have by resolution resolved to establish, and the Fund has issued, the Class S Sub-Class and the Kroner Sub-Class. Investment Objective and Policy The investment objective of the Fund is to seek to achieve long-term capital growth primarily through the purchase, holding and sale of primarily Danish mortgage bonds and by entering into interest rate futures and options, currency options and other hedging and derivative instruments. It is expected that the Danish mortgage bonds will be issued by Danish mortgage credit institutions listed on the Copenhagen Stock Exchange. The Fund will use various gearing and borrowing techniques to leverage the Fund s investment portfolio up to four times the Net Asset Value of the Fund from time to time. The investment objectives can be amended subject to the requirements stated in provision 4 sub 3 under Additional Information in the Scheme Particulars Up to 25 per cent. of the Fund s Gross Asset Value may be invested in other investment grade mortgage and government bonds quoted on an official stock exchange issued in Danish Kroner ( DKK ), Norwegian Kroner ( NOK ) and Swedish Kroner ( SEK ). The Company may invest in parties associated with the Principal Manager, the Company or the Custodian. Transactions may be effected with parties associated with the Principal Manager, the Company or the Custodian, all of which transactions will be effected under market conditions. None of these transactions will be made outside a regulated market. Transactions with associated parties are effected subject to the investment restrictions mentioned below. The financial instruments traded by the Company are currently traded on the following regulated markets: Denmark, Sweden, Norway and Germany. The Fund may borrow to fund its leverage and gearing positions in various currencies including Swiss francs, Euros, Danish kroner, Japanese yen and/or US dollars. Such gearing and borrowing techniques might include the use of instruments such as credit facilities and repurchase agreements. The Fund will seek to be fully invested at all times with ancillary liquid assets kept to a minimum. The Fund may maintain cash and liquid assets in order to fund redemptions or any operating expenses or to create reserves. Such cash and liquid assets may be invested in cash, money market accounts or other short term instruments or cash equivalents. - 3 -
Investment Restrictions The Directors of the Company have resolved that the Fund will have the following investment restrictions: (a) (b) (c) (d) (e) (f) while the Fund will invest primarily in bonds issued by Danish mortgage credit institutions listed on the Copenhagen Stock Exchange, up to 25 per cent. of the Gross Asset Value can be invested in investment grade mortgage and government bonds quoted on any official stock exchange; while the bonds will be denominated primarily in Danish Kroner or Euros, up to 25 per cent. of the Gross Asset Value of the Fund s bond holdings may in aggregate be denominated in SEK or NOK; the Fund may only borrow or leverage the Fund assets up to a maximum of four times the Net Asset Value of the Fund from time to time; the Fund may only enter into derivative instruments as a hedging strategy or as a means to increase the portfolios sensitivity to interest rate fluctuations; the Fund will not invest in another investment scheme that is a party associated with the Principal Manager, the Company or the Custodian, or in another collective investment scheme that is managed by a party associated with the Principal Manager, the Company or the Custodian; and the Fund will not invest in other collective investment funds. Investment Manager The Principal Manager (pursuant to its powers under the Management Agreement) and the Company appointed the Investment Manager to be responsible for the provision of investment advice to the Company and the Principal Manager in respect of the assets of the Fund. The registered office of the Investment Manager is at 46, Strødamvej, DK-2100 Copenhagen Ø. The Investment Manager is the ultimate parent company of the Principal Manager. The principal activities of the Investment Manager include providing corporate, public-sector and private customers with a full range of financial services through a nation-wide branch network. Under the investment management agreement made between the Principal Manager, the Company and the Investment Manager dated 10 December 2004 (the Investment Management Agreement ), the Investment Manager will review the performance of the Fund and provide the Directors and the Principal Manager with advice, reports and recommendations in connection with the management of the assets of the Fund. The Investment Manager is responsible for purchasing and selling liquid assets and other securities and otherwise managing the Fund s investment portfolio, on a day-to-day basis and subject to the overall policies and directions of the Directors and the Principal Manager. The fees of the Investment Manager shall be payable by the Company out of the assets of the Fund. The Investment Manager is not liable for any loss or damage suffered by the Principal Manager or the Company, unless such loss arises from negligence, wilful neglect or default or bad faith. The Principal Manager and the Company have agreed to indemnify the Investment Manager against all claims and demands (including costs and expenses incidental thereto) which may be made against the Investment Manager in the performance of its duties otherwise than as a result of the gross negligence, wilful neglect or default or bad faith on the part of the Investment Manager. The Investment Manager was founded in Denmark in 1871 and is authorised by the Danish Financial Authority to carry out all activities of a bank under the laws of Denmark. - 4 -
Pursuant to the provisions of the Investment Management Agreement, the Investment Manager is permitted to provide investment advisory services to other persons provided that the provision of such services does not impair the Investment Manager s ability to carry out its obligations and responsibilities under the Investment Management Agreement. The Investment Management Agreement authorises the Investment Manager to delegate its investment advisory responsibilities to other investment managers or advisers, subject to obtaining the prior consent of the Principal Manager and the Company and to retaining liability for the acts of such delegates. The fees of any such delegates shall be payable by the Investment Manager. The appointment of the Investment Manager may be terminated by either party on not less than six months notice not earlier than one year after its execution, or immediately upon certain breaches of the Investment Management Agreement, the insolvency or receivership of any party, if the Investment Manager or automatically if the Management Agreement is terminated. Conflicts of Interest The Principal Manager, Investment Manager or their affiliates may provide investment advisory and management services to other clients in addition to the Company. The Principal Manager, Investment Manager and their affiliates will act in a fair and equitable manner in allocating investment opportunities among the Fund, other Cells of the Company, other investment vehicles managed by them and the accounts of their other clients, although situations may arise in which the account activities of the Principal Manager or Investment Manager, or other clients may disadvantage the Fund. The Directors, Principal Manager and Investment Manager will endeavour to ensure that any conflict which does arise will be resolved fairly. Distribution Policy The regulations governing the determination and allocation of profit are described in the Scheme Particulars under Dividends in the provision Articles of Association under Additional information, as well as in the Articles. It is the intention of the Directors to accumulate all income receipts and capital gains of the Fund for reinvestment and not to make distributions to Shareholders, although the Directors reserve the right to declare or recommend that Shareholders resolve to declare dividends should they consider it appropriate. - 5 -
Risk Factors In addition to the risk factors explained in the Principal Particulars under the section headed Risk Factors, investors should be aware of the following risk factors specific to the Fund: The Fund will invest primarily in Danish mortgage bonds. The Danish mortgage bonds will be issued by Danish credit institutions listed on the Copenhagen Stock Exchange. However, the Fund will be subject to the credit risk of the issuers of the bonds, and to the fluctuating value of any collateral securing such mortgage bonds in the event of the default by an issuer of the bonds. The Fund will buy and sell the Danish mortgage bonds in the secondary market and therefore the performance of the Fund will depend on the market value of the Danish mortgage bonds at the time the Danish mortgage bonds are bought or sold. The yield to maturity of the Danish mortgage bonds will also depend on the price at which the Danish mortgage bonds are purchased by the Fund. The Fund may also be adversely affected if the market for Danish mortgage bonds is not very liquid at the time the Fund must sell the Danish mortgage bonds. Potential investors who are in any doubt as to the risks involved in investment in the Fund are recommended to obtain independent financial advice before making an investment. Investment in the Fund should be made only after consulting with independent, qualified sources of investment and tax advice. The Fund is a speculative investment, and is not intended to be a complete investment program. It is designed only for sophisticated investors who are able to bear the risk of an investment in the Fund, including the risk of capital loss. There can be no assurance that the Fund will achieve its investment objective. - 6 -
SUBSCRIPTION AND REDEMPTION OF SHARES Subscriptions Investors may subscribe for Shares on any Dealing Day in accordance with the procedure set out below. Prospective investors should refer to the section headed Eligible Investors in the Principal Particulars to establish whether or not they are eligible to invest. The price at which Shares will be allotted on any particular Dealing Day will be the Subscription Price calculated in the manner described in the section headed Calculation of Subscription Price in the Principal Particulars. Completed applications must be received by the Distributor at the contact address set out below by fax or post no later than 3:00 p.m. (Luxembourg time) on the relevant Valuation Day. The Distributor will in turn subscribe for Shares in the Fund through the Administrator which it will then hold as nominee for investors. For more information please refer to the sections headed Introduction and The Distributor in the Principal Particulars. Shares in the Class S Sub-Class will only be issued to persons who have entered into an Investment Agreement with the Distributor. Settlement for subscriptions for Shares in the Fund may be made as follows:- Application monies for Shares in the Kroner Sub-Class may be paid in Danish Kroner or any other currency acceptable to the Distributor. Application monies for Shares in the Kroner Sub-Class other than in Danish Kroner will be converted into Danish Kroner and all bank charges and other conversion costs will be deducted from the application monies prior to investment in such Shares. Application monies for Shares in the Class S Sub-Class may be paid in Euro or any other currency acceptable to the Distributor. Application monies for Shares in the Class S Sub-Class other than in Euro will be converted into Euro and all bank charges and other conversion costs will be deducted from the application monies prior to investment in such Shares. Unless the applicant has made arrangements with the Distributor to make payment in some other currency or by some other method, payment must be made in Danish Kroner or Euro (as applicable) by telegraphic transfer to: Danske Bank International S.A. Address: 13, rue Edward Steichen L-2540 Luxembourg Ref.: Danske Invest PCC Limited SWIFT code: DABALULL Application monies must be received by the Distributor in cleared funds no later than 3:00 p.m. (Luxembourg time) on the relevant Valuation Day. The Distributor can at its discretion accept funds on the Dealing Day and/or on the day of settlement. The Fund may impose a sales charge of up to 5 per cent. of the Subscription Price of the Shares which are issued to applicants and an amount equal to any stamp duty and any other governmental taxes and charges payable by the Fund with respect to the issue of such Shares. The sales charge shall be divided between the Fund, the Investment Manager or any sales agents or distributors as the Directors may from time to time agree. - 7 -
The Subscription Price will be calculated in the manner specified in the Principal Particulars and applications then executed on the Dealing Day. Shares will be in registered form and share certificates will not be issued. A contract note will be sent within two Business Days after the relevant Dealing Day to successful applicants. The Directors reserve the right to reject any application for Shares in whole or in part (including if an applicant fails to comply with the client verification and anti-money laundering requirements set out in the section headed Anti-money Laundering in the Principal Particulars). If any application is not accepted in whole or in part, the application monies or (where an application is accepted in part only) the balance thereof will be returned (without interest) in Danish Kroner or Euro (as applicable, or may be returned in the currency in which the application monies were received, if different) by bank draft made out in favour of the applicant (or, in the case of joint applicants, the first named) and sent by ordinary post at the risk of the person entitled thereto. Funds may also be returned by telegraphic transfer at the discretion of the Distributor and at the expense of the applicant. The Directors shall at any time be entitled to charge or deduct a fee relating to the various classes of Shares for the normal trading costs of the underlying securities and/or other financial instruments in relation to the various classes of Shares of up to 0.75 per cent. of the Subscription Price. Minimum Subscription The minimum subscription and subsequent minimum holding for each applicant for Shares in the Class S Sub-Class (including an existing Shareholder) is 1,000. The minimum subscription and subsequent minimum holding for each applicant for Shares in the Kroner Sub-Class (including an existing Shareholder) is DKK25,000. In each case, the minimum subscription amount is the amount after deduction of any sales charge or other costs of fees relating to the subscription. Shares may be issued in fractions of a Share expressed to four decimal places. Application monies representing smaller fractions will be retained by the Company. Contact Details of the Distributor Applications for subscription and redemptions of Shares should be made to the Distributor at the following address: Danske Bank International S.A. Address: 13 rue Edward Steichen L-2540 Luxembourg Fax: +352 46 12 75 515 Tel: +352 46 12 75 1-8 -
Redemption Notice and Payment of Redemption Proceeds Shares of the Kroner Sub-Class and the Class S Sub-Class may be redeemed on any Dealing Day at the request of the holder of such Shares. Dealing Days are each Monday or the following Business Day if Monday is not a Business Day and/or such other day or days as the Directors may from time to time determine. Each redemption request should be sent to the Distributor at the address shown above in the section headed Contact Details of the Distributor, should be given in writing and must specify the number or monetary value of Shares to be redeemed and give payment instructions for the redemption proceeds. In order for a redemption request in relation to Shares to take effect on a particular Dealing Day, the redemption request must be received by the Distributor not later than 3.00 p.m. (Luxembourg time) on the Valuation Day (normally each Friday) immediately preceding the relevant Dealing Day or such other day as the Directors in their absolute discretion may decide. Redemption requests received after such time will be processed on the next following Dealing Day. Upon receipt of a valid redemption request, subject to the conditions on redemption set out below and in the section headed Subscriptions and Redemptions in the Principal Particulars, the Distributor will in turn redeem the Shares it holds as nominee in the Fund through the Administrator. For more information please refer to the sections headed Introduction and The Distributor in the Principal Particulars. A Shareholder redeeming Shares will, except as referred to below, be paid an amount equal to the Redemption Price per Share calculated in the manner described in the Principal Particulars under the section headed "Calculation of Redemption Prices". The Fund may impose a redemption charge of up to 1 per cent. of the Redemption Price of the Shares which are redeemed. The redemption charge shall be divided between the Fund and the Investment Manager as the Directors may from time to time agree. Redemption proceeds will be paid in Danish Kroner or Euro (as applicable) and, except where the redeeming Shareholder gives alternative payment instructions, will be paid by telegraphic transfer at the cost and risk of the redeeming Shareholder to the bank account specified by him. Payment will be made within three Business Days after the relevant Dealing Day or (if later) the day on which the Distributor receives a redemption request, duly completed and signed by the Shareholder (or, in the case of joint Shareholders, by each of them). A contract note will be sent to a redeeming investor within two Business Days after the relevant Dealing Day. No redemption of part of a holding of Shares of the Kroner Sub-Class may be made which would result in the Shareholder retaining Shares of the Kroner Sub-Class which have a value of less than DKK25,000 unless the Directors in their sole discretion determine to permit the redemption. No redemption of part of a holding of Shares of the Class S Sub-Class may be made which would result in the Shareholder retaining Shares of the Class S Sub-Class which have a value of less than 1,000 unless the Directors in their sole discretion determine to permit the redemption. - 9 -
Deferral of Redemptions The Directors may limit the total number of Shares in the Fund which may be redeemed on any Dealing Day to 10 per cent. of the total number of Shares of the Fund in issue at the relevant time. For the procedure to be followed upon deferral of redemption requests investors are referred to the section headed Deferral of Redemptions in the Principal Particulars. Compulsory Redemption The Directors have resolved that they may at their discretion compulsorily redeem at any time the Shares in the Fund of any investor which, as a result of a redemption or transfer of any part of the investor's holding, have a value of less than any minimum required holding in the Fund. Availability of Prices The Subscription Price (exclusive of any sales charge) and the Redemption Price in respect of the immediately preceding Dealing Day will be available on request from the Principal Manager, the Distributor and the Administrator. - 10 -
FEES AND EXPENSES Principal Manager's Fee Under the terms of the Management Agreement, the Principal Manager will not receive, other than any sales or redemption charges and any other amounts to which it may be entitled, a management fee or a performance fee in respect of the Fund. Investment Manager s Fee Under the terms of the Investment Management Agreement the Fund will pay to the Investment Manager a management fee of 1 per cent. per annum of the average Net Asset Value of the Kroner Sub-Class. The Kroner Sub-Class Net Asset Value for the purposes of determining the management fee shall include all relevant expenses and liabilities paid or accrued. The fees are calculated on each Valuation Day on the net assets of the relevant Separate Fund and paid quarterly in arrears. The Fund will pay to the Investment Manager a management fee of 0.25 per cent. per annum of the average Class S Gross Asset Value. The Class S Gross Asset Value for the purposes of determining the management fee shall include all relevant expenses paid or accrued. The fees are calculated on each Valuation Day on the gross assets of the relevant Separate Fund and paid quarterly in arrears. The Fund will also in certain circumstances, in relation to the Kroner Sub-Class only, pay to the Investment Manager a performance fee which will be calculated and accrued on each weekly Valuation Day and shall be paid annually in arrears on or after the last Valuation Day in each financial year. No performance fees will be paid in respect of the Class S Sub-Class. Any such performance fees will be calculated independently for each relevant class of Shares and paid out of the relevant Separate Fund established therefor. A performance fee shall only be payable in respect of a particular class of Shares in relation to any financial year (the Relevant Year ) if the Net Asset Value of that class of Shares at the end of the Relevant Year (the Year End NAV ) exceeds 110 per cent. of the Net Asset Value of that class of Shares at the end of the immediately preceding financial year (the Previous Year End NAV ). If a performance fee is payable in relation to any Relevant Year, the performance fee shall be an amount equal to 20 per cent. of the amount by which the Year End NAV exceeds 110 per cent. of the Previous Year End NAV. For the purpose of calculating the Subscription Price and the Redemption Price on any Valuation Day the performance fee will be accrued upon the following principles: The calculation is based on the Net Asset Value per Share of the relevant class out-performance versus the Hurdle NAV per Share of the relevant class, between two successive calculation dates, multiplied by the outstanding number of shares of the relevant class. The Hurdle NAV per Share of the relevant class is determined, for each calculation date, as the Net Asset Value per Share of the relevant class of Shares at the end of the immediately preceding financial year, accrued at the rate of 10 per cent. ( Hurdle Rate ) on a pro rata temporis basis up to the relevant calculation date. The out-performance is determined as the amount by which the increase of the Net Asset Value per Share of the relevant class between two successive calculation dates exceeds the increase of the Hurdle NAV per Share of the relevant Sub-Class between those dates. - 11 -
The increase of the Net Asset Value per Share of the relevant class is determined by comparing the official Net Asset Value per Share of the relevant class at the immediately preceding calculation date and the current Net Asset Value per Share of the relevant class before additional performance fee accrual. Whenever a positive out-performance level previously reached, is not achieved thereafter, a negative fee will be charged to offset the previous accrual in proportion of the outstanding number of Shares of the relevant class between two calculation dates. If the performance fee total accrual turns out to be a negative figure, no accrual will be booked in the Fund but it is memorised for the purpose of the performance fee calculation, so that the Investment Manager must recoup it before being entitled to any performance fee. For the first financial year for each relevant class, the reference Net Asset Value per Share of the relevant class (for the purpose of determining the first increase in the Net Asset Value per Share of the relevant class and the base for the Hurdle NAV per Share of the relevant class) will be the initial issue price of the relevant class of Shares. Since the performance fees are calculated and accrued on a weekly basis but paid annually, it is possible that value of the shares of Shareholders may reflect performance fees accrued during part of a year even though they may incur substantial overall losses during such year as a result of the time at which they subscribe or redeem Shares. Distributor s Fees The Fund will also pay to the Distributor out of the Separate Fund established for the Kroner Sub-Class for monitoring the administration of the Kroner Sub-Class a fee of 0.40 per cent. per annum of the average Net Asset Value of the Kroner Sub-Class. The Kroner Sub-Class Net Asset Value for the purposes of determining the Distributor s fee shall include all relevant expenses and liabilities paid or accrued. The fees are calculated on each Valuation Day on the net assets of the relevant Separate Fund and paid quarterly in arrears. The Fund will also pay to the Distributor out of the Separate Funds established for the Class S Sub-Class for monitoring the administration of the Class S Sub-Class a fee of 0.20 per cent. per annum of the average Class S Gross Asset Value. The Class S Gross Asset Value for the purposes of determining the Distributor s fee shall include all relevant expenses paid or accrued. The fees are calculated on each Valuation Day on the gross assets of the relevant Separate Fund and paid quarterly in arrears. Fees of the Administrator and Custodian The Distributor has assumed responsibility in relation to the Fund for and shall pay the fees of the Administrator and the Custodian out of the fees it receives except for the fees and charges listed under the section headed General Expenses below, which shall be paid by the Company and/or the Fund and be allocated among all Cells (including the Fund) pro rata to the Net Asset Value of each Cell. The costs of the Fund incurred in connection with the creation and launch of the Class S Sub-Class and the Kroner Sub-Class, including the amendment and execution of the relevant material contracts, the preparation of any Supplemental Particulars and legal and printing costs should not exceed 15,000 and will be borne proportionately by the Class S Sub-Class and the Kroner Sub-Class pro rata to their respective Net Asset Values and amortised over the five financial years commencing from the date on which the relevant costs are incurred. - 12 -
General Expenses To the extent that any of the other operating costs set out in the section headed Fees and Expenses in the Principal Particulars are attributable to the Fund, they will be borne by the Fund. To the extent that they are not directly attributable to the Fund or any other particular Cell, they will be apportioned between all Cells (including the Fund) pro rata to their respective Net Asset Values. - 13 -