Legal Remarks FTC Gideon I

1.) General legal notes

Legal basis:

    § 20 Austrian Investment Fund Act

Legal form:

    Co-ownership funds by Austrian law

Type of fund:

    Equity Fund of Funds

Supervision:

    FMA (Finanzmarktaufsicht, www.fma.gv.at)

Sales brochures:

At Erste Group Bank AG, 1010 Vienna, Graben 21, at ERSTE-SPARINVEST Kapitalanlagegesellschaft m.b.H., 1010 Vienna, Habsburgergasse 1a and at FTC Capital GmbH, 1020 Vienna, Praterstraße 31/11. The same also applies to the latest annual and half-yearly reports.

Last publication of sales brochure:

In Austria: March 18, 2011 (Wiener Zeitung)

Business year:

October 1 - September 30

Investment strategy:

The investment policy follows a systematic technical approach of trading. The computerized system that is used searches in the fund universe of almost 1,000 stock funds that are not subject to geographical or sectorial restrictions for typical patterns of possible up or downturns, and tends to acknowledge and take advantage of corresponding sectors which are relatively strong. If there is a strong likelihood of such movements based on system-immanent, objective and comprehensible rules, the system triggers a signal to buy and/or to sell assets. The computer-based system weights sectors dynamically depending on shifts in the market and the identification of relevant movements, so it is not restricted by fixed boundaries.

Stock market listing:

None

Launch of fund:

January 2006

Investment Manager:

FTC Capital GmbH, Vienna

Distribution coordination:

FTC Capital GmbH, Vienna

Valuation:

Daily (Banking day in Austria).

Price indication:

www.ftc.at

2.) Tax

Interested investors should seek the legal advice of independent consultants on tax matters regarding the consequences of subscription, purchase, possession, exchange or sale of shares of FTC Gideon I. Advice in the sales brochure does not substitute the individual adviceof a tax consultant.

The following remarks give a short overview of some important aspects of Austrian tax. Further information can be found in the relevant sales brochure.

Austrian taxation

The FTC Gideon I is a domestic capital investment fund in terms of § 1 iVm § 20 invFG. It is not liable to the taxation of assets and profits. Accrued distribution equal to income (ordinary incomes, 20 % of substantial profits of stocks) are liable to 25 % capital gains tax for private investors and are end taxed with regard to income, inheritance and gift tax owing to death.

3.) Risk disclaimer

Because FTC Gideon I invests heavily in equity funds, there is a higher risk of volatility that can negatively affect the equities. Inaddition, there are other risks such as issuer risk, liquidity risk, credit risk and market risk. A detailed description of all risks can befound in the full sales brochure.

In this context, it must be noted that the value of share certificates for FTC Gideon I can rise/fall compared to the issue price, which means that the investor may get less money back than was invested.

Since derivative financial instruments are only used to hedge assets ofcapital investment funds, the risk of the capital investment fund does not increase.

Note that shares of FTC Gideon I are not on the stock exchange each trading day and can only be returned on the net asset valuation (NAV) date mentioned in the relevant sales brochure.
We advise potential investors to seek professional advice if in any doubt about a possible investment in FTC Gideon I.