Seneca Invest AG (Vienna

Global - Klimt Fund)

Fund Investment Objectives

The investment strategies to be employed by VIENNA GLOBAL - KLIMT FUND are characterized by the following criteria: a) Fundamental Trading: Even though the Fund will be allocating its assets in a variety of separate investment strategies, these will all be guided by an overall systematic global macro strategy, which will ensure that all the investment decisions taken relating to the investment strategies are based on fundamental quantitative models. Markets are screened for macroeconomic imbalances on a worldwide basis. The positions established will exploit these imbalances. b) Diversification: By allocating capital across a broad number of markets/investments the probability for an occurrence of an unfavorable situation on all of the markets is reduced considerably (Capital Market Theory, Markowitz, Sharpe). Derivatives allow involvements in markets, which could not be made in a traditional portfolio management approach. The prerequisite for choosing all underlying investments is their liquidity in the relevant market and the legal stability of the relevant market. c) Systematic Approach: In contrast to most existing global macro strategies, the strategy is 100% systematic and employs no discretionary decisions at all. All buy and sell decisions are based on quantitative analysis by applying quantitative trading models, which deliver buy and sell signals together with stop-loss orders. d) State of the art Risk Management Approach: The Fund employs various techniques to attempt to reduce the risks inherent in its respective trading strategies. According to the risk reduction approach, risk is reduced on three levels: 1) Investment process: 100% systematic, no discretionary decisions; 2) Portfolio construction: high degree of diversification; 3) Market level: stop-loss exits, markets are traded based on signals.