T+0 Redemption Orders

When an investor places an order with a broker for a redemption, the broker will check the investor’s account for the existence of the requisite Fund shares. If the Fund shares in the account are in Creation Unit increments, then the broker will pass the order to an Authorized Participant through the Takasbank terminal. Upon the Authorized Participant’s approval, Takasbank will check the investor’s account electronically and, if the Fund shares in the account match the Creation Unit increments, Takasbank will transfer the Fund shares to a restricted account from which they cannot be removed other than in connection with the redemption order. Then the redemption order will be forwarded to the Fund’s Board for approval. The Fund’s Board will reply within 30 minutes. If the redemption order is approved, Takasbank will transfer Fund shares into the Fund’s account and transfer the portfolio of stocks and the cash component into the investor’s account electronically.

If an investor places a redemption order with an Authorized Participant, the Authorized Participant will check the investor’s account for the existence of the requisite Fund shares. If the requisite Fund shares are in the account, then the Authorized Participant will forward the order to Takasbank. Upon the Authorized Participant’s approval, Takasbank will check the investor’s account electronically and, if the Fund shares in the account match the Creation Unit increments, Takasbank will transfer the Fund shares to a restricted account from which they cannot be removed other than in connection with the redemption order. Then the redemption order will be forwarded to the Fund’s Board for approval. The Fund’s Board will reply within 30 minutes. If the redemption order is approved, Takasbank will transfer Fund shares into the Fund’s account and transfer the portfolio of stocks and the cash component into the investor’s account electronically.

An investor may deliver any missing Fund shares through a wire transfer. However, the Fund shares must exist in the investor’s account before the order is given to Takasbank.

T+2 Redemption Orders

Investors may complete any missing Fund shares needed for a redemption order by buying Fund shares on the BIST .

Investors will effect transactions through their own accounts with an Authorized Participant. If the investor does not have an account with an Authorized Participant, he will use the broker’s account with the Authorized Participant.

If the investor decides to make a partial purchase he must wire any missing Fund shares into an account with the Authorized Participant.

Before an investor places an order for redemption, the Authorized Participant will inform the investor of the number of Fund Shares in a Creation Unit increment. The investor makes any necessary transactions on the BIST to form Creation Unit increments.

The Authorized Participant will check whether the investor’s Fund shares match the Creation Unit increments, if not, the Authorized Participant will inform the investor of any missing Fund shares.

The Authorized Participant will check the investor’s account and make sure that all transactions needed for the redemption process have been effected and will place the necessary restrictions on the Fund shares to be used for redemption.

The Authorized Participant will then notify Takasbank within the time frame defined in the Fund’s prospectus. Takasbank will forward the order on to the Fund’s Board for approval. The Fund’s Board will reply within 30 minutes. If the redemption order is approved, the transaction is registered and reflected in the Fund’s accounts as a T+2 redemption.

Approval of an order will be sent to the Authorized Participant and the redemption order will be finalized.

A finalized order is fulfilled when the Fund shares are transferred into the Fund’s account and the portfolio of stocks and the cash component matching the current PCF are transferred into the investor’s account on the settlement date of Fund shares acquired in the BIST .

If the redemption order fails, the Authorized Participant will act as the responsible party as defined in the Authorized Participant Agreement. If the redemption order fails on T+2, the Fund Board may sell underlying shares on the BIST and complete the missing fund shares on T+3 needed for redemption, or the Fund Board may create fund shares on T+0 using the shares coming from redemption. Due to the redemption order failure, the Authorized Participant will be required to pay a penalty fee to the Fund. However if the fund shares are not delivered to the fund due to a failure in the settlement system, the fund may not require a penalty fee. The Fund Board may ask for a Letter of Credit from the Authorized Participant.

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