the payment of claims therefor by, such counterparty and a loss to the Underlying Fund, which could be material. Commodity Interest Trading Limit The Management Company currently operates the Underlying Funds subject to the CFTC Rule 4.13(aX3) de minimis exemption (the "4.13(aX3) Exemption"). While the 4.13(aX3) Ex

onvertible security should increase. If the price of the common stock declines, the price of the corresponding convertible security should decline. The Management Company will employ a variety of convertible arbitrage trading and investment strategies for an Underlying Fund. The primary objective of such trading is to

of the end of its fiscal year. Each of the Underlying Funds' prime brokers is a "qualified custodian" as such term is defined in the Custody Rule. The Management Company will maintain client assets in compliance with the Custody Rule. Additional Brokerage Costs and Turnover Although each of the Underlying Funds has