The Fund may invest in derivatives, including foreign exchange forward
contracts and equity index future contracts. Investments in derivatives may
require the deposit of an initial margin and additional deposit of margin
on short notice if the market moves against the investment positions.
If the required margin is not provided within the prescribed time, the Fund’s
investments may be liquidated at a loss. Therefore, it is essential that such
investments in derivatives are monitored closely. The Managers have
controls for investments in derivatives and have in place systems to monitor
the derivatives positions of the Fund.