Ordinance of the Swiss Financial Market Supervisory Authority on Collective Investment Schemes

Se­cur­it­ies lend­ing means: a leg­ally bind­ing trans­ac­tion in which the fund man­age­ment com­pany or in­vest­ment com­pany with vari­able cap­it­al (SICAV), act­ing as lender, un­der­takes to tem­por­ar­ily trans­fer to the bor­row­er own­er­ship of spe­cif­ic se­cur­it­ies, and where:

a.

the bor­row­er is ob­liged to re­turn to the lender se­cur­it­ies of the same type, quant­ity and qual­ity at the end of the se­cur­it­ies lend­ing peri­od and to trans­fer any in­come earned dur­ing that peri­od to the lender; and

b.

the lender bears the price risk of the se­cur­it­ies for the dur­a­tion of the se­cur­it­ies lend­ing.