Interested investors are expected to take note of the risks associated with participation in the AEF. Careful selection and diversification of the AEF's investments does not guarantee positive returns.

The main risks that may be involved in investing in the AEF are:

Return risk
The return of the investment in Units over the period from purchase moment to sale moment is not fixed until the sale moment of that investment. The value of Units depends, among other things, on the value development of the Fund's investments and on the choices made in implementing the investment policy. There is no guarantee that the investment objective will be achieved and no return is guaranteed. Returns achieved in the past offer no guarantee for the future. There is a risk that Unitholders will not receive their full investment back upon termination of their participation in the Fund.

General market risk
The AEF invests in listed companies. The value of these investments may fluctuate sharply if financial markets or certain categories of investments as a whole decline as a result of factors beyond the Fund's control, such as developments in economic growth, interest rate developments, the rate of inflation, price developments in the commodity and currency markets and developments in the financial markets. The value of the AEF is directly linked to the value of these investments and can therefore also fluctuate significantly.

Risk

The AEF will ensure that at all times there is sufficient cover against the short positions taken. The AEF issues collateral for this purpose, either in shares or cash. In theory, the possible loss on short positions is unlimited, while the possible gain is limited to approximately the amount of the investment.

Leverage risk
The total positions of the AEF, long and short added together, can be up to 150% of the total Fund assets. This is a leverage of 50%. This exposes the Unitholder to a higher risk than if no leverage were applied

Currency risk
In principle, the AEF does not hedge currency positions. Investments other than in euro may cause fluctuations, both positive and negative, as a result.

Risk that investments do not develop as expected
The AEF invests in companies whose value, in the opinion of the Manager, is higher than the current market price (a long position is then taken) or lower (a short position is then taken). There can be no guarantee that the AEF will succeed in achieving the desired return on a long or short position. No guarantee can be given that analyses by the Manager, including those of expected developments, will be correct in the short or longer term, which may result in a loss for the Fund.

Investment management risk
The performance of the AEF is significantly dependent on the performance of the individuals who manage the AEF. These individuals are the indirect managers of the Manager. Death, disability, departure, insolvency or withdrawal of any of these individuals may adversely affect the performance of the AEF.

Counterparty risk
There is a risk that the Custodian, an issuer, a counterparty to a transaction or another party to which the AEF has a claim may default on its obligations.

Operational risk
There is a risk that losses can occur due to deficiencies in internal processes and systems, human error or external events.

Cash flow risk
The AEF has a limited exit option: only as of the first business day of a calendar month does a Unit-holder have the option to sell all or part of his Units, provided the request for sale is received no later than the 20th day of the preceding calendar month. (In this regard, the Fund Manager is entitled to suspend redemptions under certain circumstances). This means that between the time when a Unit-holder decides to sell Units and the time when this can be realized there is a risk of a reduction in value, in which case the sale proceeds will be lower than if the sale decision could have been carried out immediately.

Liquidity risk
The AEF may at some point have a position in mid- and small-cap companies. Shares (and related derivatives) in these companies may have limited tradability, which may prevent them from being monetized, or only at a significantly lower price than market value.

Concentration risk
Because only a limited number of positions will be invested in, this may lead to stronger fluctuations in the AEF's Net Asset Value than if investments were more widely spread. Due to this strategy of the AEF, the return of the AEF may differ significantly from European equity indices. This creates specific risks that may be reflected in Antaurus/prospectus/1 September 2018 19 significant differences in the performance of the AEF and the European equity indices, both positive and negative.

Derivatives Risk
The Manager may use listed options. These products can behave extremely volatile, so their use can have a significant impact (both positive and negative) on the Net Asset Value of the AEF.

Risk of loss of assets held in custody
In the event of insolvency, negligence or fraudulent acts of the Depositary, the Legal Owner, the Custodian or a sub-custodian, there is a risk of loss of assets held in custody. While the Depositary is liable for the (financial) consequences of such a loss, there is a risk that it may prove to have no recourse.

Risk of legislative (tax) changes/changing regulation
This is the risk that the tax treatment of the AEF changes in a negative sense or that other legislation is enacted that negatively affects the AEF and its Unitholders. Regulation is subject to change and changes in regulation could hinder the AEF from achieving its investment objective.

Systemic risk
Events in the world or activities of one or more major parties in the financial markets could lead to a disruption of the normal functioning of those financial markets. This could result in large losses due to liquidity and counterparty risks realized by that disruption.

Settlement risk
This is the risk that settlement through a payment system does not occur as expected because payment or delivery of the financial instruments by a counterparty does not occur, is not timely or does not occur as expected.

Erosion risk
If the Fund decreases in size (due to withdrawals and/or decrease in the value of investments) the fixed costs of the Fund weigh more heavily on the (remaining) Unitholders, than if the Fund remains the same or increases in size.