DOC

Non UCITS Appendix 2 Investment Restrictions (NU 13)

By Wanda Ramirez,2014-05-06 12:30
6 views 0
Non UCITS Appendix 2 Investment Restrictions (NU 13)

    APPENDIX 2 Applicant

     Section 1 Retail

    Investment Restrictions (NU 13)

     Applicant

     Regulator

    Applicant Financial

    Page Paragraph Provide that:

     1.0 The scheme may not invest more than 10 per cent of its

     net assets in securities which are not traded in or dealt on

    a market which is provided for in the prospectus.

     2.0 The scheme may invest no more than 10 per cent of its

     net assets in securities issued by the same institution.

     a) Where the scheme has as a sole objective, investment in

     Irish equities, it may derogate from this limit as follows:

    ? An investment of up to 15 per cent of net assets

    may be made in an equity which has a weighting

    in excess of 10 per cent in the ISEQ index;

    ? An investment of up to 12.5 per cent of net assets

    may be made in an equity which has a weighting

    of between 8 per cent and 10 per cent in the

    ISEQ index.

     b) No more than 10 per cent of the net assets of the scheme

     may be kept on deposit with any one institution; this

    limit is increased to 30 per cent for deposits with or

    securities evidencing deposits issued by or securities

    guaranteed by the following

     (i) A credit institution authorised in the European Economic

     Area (European Union Member States, Norway, Iceland,

    Liechtenstein)

     (ii) A credit institution authorised within a signatory state,

     other than a Member State of the EEA, to the Basle

    Capital Convergence Agreement of July 1988

    (Switzerland, Canada, Japan, United States)

     (iii) A credit institution authorised in Jersey, Guernsey, the

     Isle of Man, Australia or New Zealand;

     (iv) The trustee

     (v) A credit institution which is an associated or related

    Non UCITS 1 December 2009

company of the trustee, which is named in the

    prospectus and which is approved by the Authority.

    (This provision should not be included in the prospectus

    unless a specific bank is named and agreed with the Authority)

     3.0 Related companies/institutions are regarded as a single

     issuer for the purpose of paragraph 2. above.

     3.1 In the case of an equity exchange index tracking scheme

     the limit of 10 per cent in paragraph 2 may be increased

    to 20 per cent subject to the following conditions:

     ? The investment objective of the scheme must be

    to replicate a particular index. The weighting of

    securities of a specific issuer in the scheme’s

    portfolio must closely correspond to the

    weighting of those securities in the relevant

    index. Deviations should be temporary and

    related to operational difficulties. Deviations in

    excess of 0.5 per cent of the net asset value of the

    scheme must be rectified without delay;

    ? The index must be sufficiently diversified and

    represent an adequate benchmark for the market

    to which it refers;

    ? The index must be published and be freely

    available;

    ? The prospectus must clearly set out these

    conditions.

     4.0 The scheme may not hold more than 10 per cent of any

     class of security issued by any single issuer. This

    requirement does not apply to investments in other

    collective investment schemes of the open-ended type.

     5.0 An investment company, or a management company

     acting in connection with all of the schemes which it

    manages, may not acquire any shares carrying voting

    rights which would enable it to exercise significant

    influence over the management of an issuing body.

     6.0 The scheme may, subject to authorisation by the

     Authority, invest up to 100 per cent of its net assets in

    transferable securities issued or guaranteed by any State,

    its constituent states, its local authorities, or public

    international bodies of which one or more States are

    members.

Full disclosure must be made in the prospectus

    indicating the States, local authorities and public

    international bodies in the securities of which it is

    intended to invest more than 10% of net assets in accordance with the preceding sentence; the issuers may

    Non UCITS 2 December 2009

be drawn from the following list:

    OECD Governments (provided the relevant issues are

    investment grade), Government of Singapore, European Investment Bank, European Bank for Reconstruction and

    Development, International Finance Corporation,

    International Monetary Fund, Euratom, The Asian

    Development Bank, European Central Bank, Council of

    Europe, Eurofima, The European Coal & Steel

    Community, African Development Bank, International

    Bank for Reconstruction and Development (The World

    Bank), The Inter American Development Bank,

    European Union, Federal National Mortgage Association

    (Fannie Mae), Federal Home Loan Mortgage

    Corporation (Freddie Mac), Government National

    Mortgage Association (Ginnie Mae), Student Loan Marketing Association (Sallie Mae), Federal Home Loan

    Bank, Federal Farm Credit Bank, Tennessee Valley

    Authority, Straight-A Funding LLC.

Export-Import Bank may be permissible it should be

    given its full title and a submission attached

     7.0 The scheme may acquire the units of other open-ended

     collective investment schemes subject to the following:

     (a) the scheme may not invest more than 20 per cent of net

     assets in such schemes

     (b) the scheme may not invest more than 10 per cent of net 1 assets in unregulated schemes

     (c) where the scheme invests in units of a collective

     investment scheme managed by the same management

    company or by an associated or related company, the

    manager of the scheme in which the investment is being

    made must waive the preliminary/initial charge which it

    is entitled to charge for its own account in relation to the

    acquisition of units

     (d) where a commission is received by the manager of the

     scheme by virtue of an investment in the units of another

    collective investment scheme, this commission must be

    paid into the property of the scheme.

     8.0 These limits on investments are deemed to apply at the

     time of purchase of the investments. If these limits are

    subsequently exceeded for reasons beyond the control of

    a scheme or as a result of the exercise of subscription

    rights, the scheme must adopt as a priority objective the remedying of that situation, taking due account of the

    interests of its shareholders/unitholders.

     9.0 The scheme may not carry out sales of transferable

     1 A regulated scheme is defined in the Authority’s Guidance Note 1/01.

    Non UCITS 3 December 2009

     securities when such securities are not in the ownership

    of the scheme.

     10.0 The scheme may invest in warrants on transferable

     securities which warrants are traded in or dealt on a

    market which is provided for in the trust deed, articles of

    association or partnership agreement.

     If this is provided for:

     (a) Provide that the scheme may not invest more than 5% of

     net asset value in such warrants, or

     (b) Confirm the risk warning (as per Section 2, 2.2.8 above)

     is disclosed in bold text in a prominent place in the prospectus

     11.0 The scheme is permitted to engage, to a limited extent,

     in leverage through the use of techniques and

    instruments permitted for the purposes of efficient

    portfolio management under the conditions contained in

    NU 16. The net maximum potential exposure created by

    such techniques and instruments or created through

    borrowing, under the conditions and within the limits

    contained in NU 3, or through both of these together,

    shall not exceed 25 per cent of the net asset value of a scheme.

     12.0 If applicable, indicate that the scheme may derogate

     from these investment restrictions for six months

    following the date of its launch provided it observes the

    principle of risk spreading

    Non UCITS 4 December 2009

    APPENDIX 2

    Section 2 PIF

    No formal derogation request is required in respect of derogations that are specifically provided in this Appendix (i.e. the limits). Any derogation from the

    Applicant provisions of the Notices, other than those set out in this form, must be formally

    applied for.

    Investment Restrictions (NU 13)

     Applicant

     Regulator

    Applicant Financial

    Page Paragraph

     Provide that:

     1.0 The scheme may not invest more than 20 per cent of its

     net assets in securities which are not traded in or dealt on

    a market which is provided for in the prospectus.

     2.0 The scheme may invest no more than 20 per cent of its

     net assets in securities issued by the same institution.

     a) No more than 20 per cent of the net assets of the scheme

     may be kept on deposit with any one institution; this

    limit is increased to 30 per cent for deposits with or

    securities evidencing deposits issued by or securities

    guaranteed by the following:

     (i) A credit institution authorised in the European Economic

     Area (European Union Member States, Norway, Iceland,

    Liechtenstein)

     (ii) A credit institution authorised within a signatory state,

     other than a Member State of the EEA, to the Basle

    Capital Convergence Agreement of July 1988

    (Switzerland, Canada, Japan, United States)

     (iii) A credit institution authorised in Jersey, Guernsey, the

     Isle of Man, Australia or New Zealand;

     (iv) The trustee

     (v) A credit institution which is an associated or related

     company of the trustee, which is named in the

    prospectus and which is approved by the Authority.

    (This provision should not be included in the prospectus

    unless a specific bank is named and agreed with the

    Non UCITS 5 December 2009

Authority)

     3.0 Related companies/institutions are regarded as a single

     issuer for the purpose of restriction 2.0 above and

    restriction 9.0 below.

     4.0 The scheme may not hold more than 20 per cent of any

     class of security issued by any single issuer. This

    requirement does not apply to investments in other

    collective investment schemes of the open-ended type.

     5.0 An investment company, or a management company

     acting in connection with all of the schemes which it

    manages, may not acquire any shares carrying voting

    rights which would enable it to exercise significant

    influence over the management of an issuing body.

     6.0 The scheme may, subject to authorisation by the

     Authority, invest up to 100 per cent of its net assets in

    transferable securities issued or guaranteed by any State,

    its constituent states, its local authorities, or public

    international bodies of which one or more States are

    members.

Full disclosure must be made in the prospectus

    indicating the States, local authorities and public

    international bodies in the securities of which it is

    intended to invest more than 10% of net assets in

    accordance with the preceding sentence; the issuers may

    be drawn from the following list:

    OECD Governments (provided the relevant issues are

    investment grade), Government of Singapore, European Investment Bank, European Bank for Reconstruction and

    Development, International Finance Corporation,

    International Monetary Fund, Euratom, The Asian

    Development Bank, European Central Bank, Council of

    Europe, Eurofima, The European Coal & Steel

    Community, African Development Bank, International

    Bank for Reconstruction and Development (The World

    Bank), The Inter American Development Bank,

    European Union, Federal National Mortgage Association

    (Fannie Mae), Federal Home Loan Mortgage

    Corporation (Freddie Mac), Government National Mortgage Association (Ginnie Mae), Student Loan

    Marketing Association (Sallie Mae), Federal Home Loan

    Bank, Federal Farm Credit Bank, Tennessee Valley

    Authority, Straight-A Funding LLC.

Export-Import Bank may be permissible it should be

    given its full title and a submission attached

    Non UCITS 6 December 2009

     7.0 The scheme may acquire the units of other open-ended

     collective investment schemes subject to the following:

     (a) the scheme may not invest more than 40 per cent of net

     assets in such schemes

     (b) the scheme may not invest more than 20 per cent of net 2 assets in unregulated schemes

     (c) where the scheme invests in units of a collective

     investment scheme managed by the same management company or by an associated or related company, the

    manager of the scheme in which the investment is being

    made must waive the preliminary/initial charge which it

    is entitled to charge for its own account in relation to the

    acquisition of units

     (d) where a commission is received by the manager of the

     scheme by virtue of an investment in the units of another

    collective investment scheme, this commission must be

    paid into the property of the scheme.

     8.0 These limits on investments are deemed to apply at the

     time of purchase of the investments. If these limits are

    subsequently exceeded for reasons beyond the control of

    a scheme or as a result of the exercise of subscription

    rights, the scheme must adopt as a priority objective the

    remedying of that situation, taking due account of the

    interests of its shareholders/unitholders.

     9.0 Short Sales

     a) Provide that the scheme may not carry out sales of

     transferable securities when such securities are not in the

    ownership of the scheme; or

     b) Provide policies in relation to permitted short sales

     including a provision that these will not exceed 100% of

    net asset value

     11.0 The scheme is permitted to engage, to a limited extent, in

     leverage through the use of techniques and instruments

    permitted for the purposes of efficient portfolio

    management under the conditions contained in NU 16.

    The net maximum potential exposure created by such techniques and instruments or created through

    borrowing, under the conditions and within the limits

    contained in NU 3, or through both of these together,

    shall not exceed 100 per cent of the net asset value of a

    scheme.

     12.0 If applicable, indicate that the scheme may derogate

     from these investment restrictions for six months

    following the date of its launch provided it observes the

     2 A regulated scheme is defined in the Authority’s Guidance Note 1/01.

    Non UCITS 7 December 2009

principle of risk spreading

Non UCITS 8 December 2009

Report this document

For any questions or suggestions please email
cust-service@docsford.com