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Appendix D — Admissible Assets and Limits (Retail CIU)

Admissible assets Descriptions and Limits
Cash and cash equivalents (including bank deposits and certificates of deposit — i.e. assets that may be realised in cash immediately).
•   Not more than 20% of total value of the CIU'sG assets may be placed with a single party (or group of connected counterparties).
Transferable securities including equity and debt securities.
•   Not more than 10% of the total assets of the CIUG may be placed with a single party. (Where a stock represents more than 10% of a market index, and the CIU'sG investment objective is to replicate that market index, then the CIUG can hold up to the market weight of the stock in the index.)
•   Not more than 20% of the total assets of the CIUG may be placed with a single group of connected parties.
•   Securities not regularly traded on a recognised exchange are limited to 10% of the total assets of the CIUG .
Government and public sector securities issued by GCCG and OECDG countries.
•   Not more than 20% of total value of the CIU'sG assets may be with a single party.
Authorised and regulated funds of the open ended type.
•   Retail CIUsG with a 'fund of funds' investment strategy may invest up to 100% of their assets in authorised/regulated open-ended fundsG , providing the investment objectives of these funds is consistent with the investment objective of the CIUG , and providing its exposure to any single fund (or group of connected funds) does not exceed 10% of its assets.
•   Other CIUsG may only invest in authorized/regulated open ended fundsG , consistent with their investment objectives, up to 20% of the total value of the CIU'sG assets. The CIU'sG exposure to any single fund (or group of connected funds) must not exceed 10% of its assets.
REITsG listed on a recognised exchange
•   Not more than 20% of total assets of the CIUG may be invested in this asset class. Single exposure limit is 10% of the CIU'sG total assets.
Physical commodities and commodity based investments traded on a recognised market.
•   Not more than 20% of total assets of the CIUG may be invested in this asset class. Single exposure limit is 10% of the CIU'sG total assets
Approved financial derivatives and positions are (i) exchange traded options — long positions; (ii) long positions in forwards and futures; and (iii) sold positions in exchange traded options, forwards and financial futures if matching long positions exist or for hedging purposes. Underlying assets of the derivatives are:
•   Any of the above, subject to limits specified above.
•   With respect to interest rate or foreign exchange derivatives, the value of the underlying assets must be restricted to 20% of the total assets of the CIUG .
Cash and cash equivalents (including bank deposits and certificates of deposit — i.e. assets that may be realised in cash immediately).
•   Not more than 20% of total value of the CIU'sG assets may be placed with a single party (or group of connected counterparties).
Transferable securities including equity and debt securities
•   Not more than 10% of the total assets of the CIUG may be placed with a single party. (Where a stock represents more than 10% of a market index, and the CIU'sG investment objective is to replicate that market index, then the CIUG can hold up to the market weight of the stock in the index.)
•   Not more than 20% of the total assets of the CIUG may be placed with a single group of connected parties.
•   Securities not regularly traded on a recognised exchange are limited to 20% of the total assets of the CIUG .
Government and public sector securities issued by GCCG and OECDG countries.
•   Not more than 20% of total value of the CIU'sG assets may be with a single party.
Collective Investment Undertakings
•   Expert funds with a 'fund of funds' investment strategy may invest up to 100% of their assets in other CIUG (whether regulated or not), providing the investment objectives of these funds is consistent with the investment objective of the expert fund, and providing their exposure to any single fund (or group of connected funds) does not exceed 10% of their assets.
•   Expert funds without a 'fund of funds' strategy may only invest in other CIUsG , consistent with their investment objectives, up to 20% of the total value of their assets
REITsG and real estate holdings
•   Allowed up to 100% of the CIU'sG assets. Single exposure limit is 10% of the CIU'sG total assets.
Physical commodities and commodity based investments traded on a recognised market.
•   Allowed up to 100% of the CIU'sG assets. Single exposure limit is 10% of the CIU'sG total assets.
Approved financial derivatives and positions are: (i) exchange traded options — long positions; (ii) long positions in forwards and futures; and (iii) sold positions in exchange traded options, forwards and financial futures if matching long positions exist or for hedging purposes Underlying assets of the derivatives are:
•   Any of the above, subject to limits specified above.
•   With respect to interest rate or foreign exchange derivatives, the value of the underlying assets must be restricted to 20% of the total assets of the CIUG .
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(1 Version)
 
Jun 1 2007 onwards
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