Opportunities and Risks

Every investment in the subfund combines return opportunities with the risk of loss. The two belong together and are presented here with equal prominence. The complete and binding description is contained in the sales prospectus and the key information document (PRIIPs KID); technical terms are explained in our glossary.

Opportunities

Participation in equity markets. The subfund builds exposure to the EuroStoxx 50, Nasdaq-100 and Dow Jones equity indices via index futures. When these markets rise, the share value can rise accordingly.

Systematic hedging. Each index is hedged individually with put options — an annual base hedge, complemented by signal-driven hedges. The aim is to dampen market declines, so that losses in falling markets can be smaller than in an unhedged equity investment.

Potential compounding over time. Staying invested allows participation in market recoveries; over a medium- to long-term horizon, returns can compound. No particular outcome is assured.

A base portfolio of solid issuers. The foundation of the subfund consists of short-duration bonds from sovereigns, supranationals and public issuers of high credit quality.

A regulated framework. The subfund is a Luxembourg UCITS with a daily net asset value (NAV), daily dealing and an independent depositary — with the investor-protection mechanisms this fund category provides.

Risks

Market risk. The value of the shares can fall. Losses up to the loss of the capital invested are possible. There is no capital or return guarantee, and no assurance that the investment objective will be achieved.

Derivative and leverage risk. The use of index futures and options creates leverage: even comparatively small market movements can affect the share value disproportionately — losses can be amplified just like gains.

Limits of hedging. The QI Equity Guard is a risk-management technique and no guarantee against losses. Hedges may not work, or only partially work, in certain market phases, and the cost of hedging continuously reduces the subfund's return.

Model risk. The signal-driven hedge relies on an AI model that learns from historical data. It can misjudge market phases — with the consequence that hedges are established too early, too late or in an unsuitable size.

Counterparty risk. For hedging transactions concluded over the counter (OTC), there is a risk that a contractual counterparty fails to meet its obligations.

Interest-rate risk. Rising interest rates can reduce the value of the bonds held in the base portfolio.

Taxation. Future performance is subject to taxation which depends on the personal situation of each investor and which may change in the future.

Binding documents

The complete and binding description of opportunities, risks and costs is contained in the sales prospectus and the key information document (PRIIPs KID), each available in German and English free of charge via the management company's fund portal: Class P · Class R.