Scenario III    Volatile upward trend

In a volatile upward trend,

where the Index may generally move upward over a period longer
than 1 Business Day but with volatility, the Product‟s performance may be adversely affected in that the Product‟s performance may fall short of that of -1x the cumulative Index return. As illustrated in the scenario below, where the market grew by 9% over 5 days but with daily volatility, the Product‟s accumulated return is -11% which falls short of the -9% which is -1x the cumulative Index return.

Index accu. Return
-1x of Index accu. Return
Inverse product accu. Return
DayIndex daily returnIndex levelIndex cumulative returnInverse product Daily ReturnInverse product NAVCumulative performance of Inverse productCumulative performance of -1x of Index