MEAG EuroFlex

Sustainability risks

(This is an excerpt of the Fund Prospectus)

Sustainability risks within the meaning of Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosure requirements in the financial services sector (hereinafter "Disclosure Regulation") are environmental, social or governance events or conditions, the occurrence of which may have an actual or potential negative impact on the net assets, financial position and results of operations of the Fund, as well as on the reputation of a company and thus on the value of the investment. Sustainability risks can affect all known risk types and contribute as a factor to the materiality of these risk types.

The following sustainability risks can be cited as examples:

Climate and environmental risks.

These risks are usually subdivided into

 - Physical risks, which can arise both in terms of individual extreme weather events and their consequences (examples: periods of heat and drought, flooding, storms) and in terms of long-term changes in climatic and environmental conditions (examples: Precipitation frequency and amounts, weather instability, sea level rise) may arise.

 - Transition risks associated with moving the economy to a low-carbon economy. Political measures can, for example, lead to an increase in the price and/or scarcity of fossil fuels (examples: coal phase-out, CO2 tax) or to high investment costs due to necessary renovations of buildings and facilities.

Social risks

- These risks can arise in the company, e.g. through successful claims for damages in connection with alleged violations of human or employee rights. Corporate governance risks - These risks can arise in the company, for example, as a result of loss of reputation due to corruption, fines for evaded taxes, or unjustly received refunds. Sustainability risks are not a new type of risk in the true sense of the word, but can contribute as a factor to the materiality of already common types of risk such as market risk, liquidity risk, counterparty risk and operational risk. These are described in the following sections.

Result of the assessment of the expected impact of sustainability risks on the return of the fund.

To the extent that sustainability risks were not already anticipated and factored into investment valuations, they may have a negative impact on the value and/or return of the assets involved. The aim of taking sustainability risks into account in the investment decision-making process is therefore to identify the occurrence of these risks as early as possible and to take appropriate action, thereby minimizing the impact on the value of the investment or the fund. For more information on the incorporation of sustainability risks into the Company's investment processes, including aspects of the organization, risk management and governance of such processes, please visit (section Inform, Vision & Culture, Sustainability).

Most significant adverse impacts of an investment decision on sustainability factors.

Investment decisions can cause, contribute to, or be directly associated with adverse - material or likely material - impacts on sustainability factors. Key adverse sustainability impacts are those impacts of investment decisions that have negative impacts on sustainability factors. Further information from the Company on the measures taken to identify and prioritize the most significant adverse impacts on sustainability factors and the measures taken to address them, as well as information on the Company's participation policy, can be found online at (Inform, Vision & Culture, Sustainability section)