Commodity Strategies AG

(Active Long Only Fund)

Fund Investment Objectives

The CSAG Active Long Only program seeks to achieve a long term total return that exceeds the return of the Reuters Jefferies CRB Index while maintaining lower volatility. We do not use leverage in our long only program. The Dow Jones-AIG and the GSCI are also monitored. The Fund/Program offers exposure to a long only commodity investment strategy via exposure to a portfolio of commodity securities and cash (or cash equivalents). The program operates in deeply liquid futures markets using systematic processes that enable it to be long in any individual market or allocated to cash where a required 'yield is not exceeded. Portfolio systems manage positions in 24 futures markets used for global commodity price discovery, with the core emphasis on risk management and capital preservation. Portfolio exposures are sized according to the prevailing risk-adjusted yields in the markets at any time. Commodity futures and swap contracts utilised to provide the commodity exposure typically require a margin of approximately 5% of the face value of the contract. A significant proportion of the Fund/Program is invested in cash/fixed interest investments used to collateralise the commodity positions.