1. The responsible person shall calculate global exposure under the relative VaR approach, as follows:
(a) calculate the VaR of the UCITS current portfolio, including derivatives;
(b) calculate the VaR of a reference portfolio;
(c) verify that the VaR of the UCITS portfolio is not greater than twice the VaR of the reference portfolio in order to ensure a limitation of the global leverage ratio of the UCITS to 2. This limit shall be presented as follows:
2. The UCITS responsible person shall ensure that the reference portfolio and the related processes comply with the following criteria:
(a) The reference portfolio should be unleveraged and should, in particular, not contain any FDI or embedded FDI, except that -
(i) a UCITS engaging in a long/short strategy may select a reference portfolio which uses FDI to gain the short exposure, and
(ii) a UCITS which intends to have a currency hedged portfolio may select a hedged index as a reference portfolio;
(b) The risk profile o
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