dedoc/paragraph_dataset huggingface dataset:
financial institutions subject to prudential supervision.
Notwithstanding the individual limits laid down in point (1), point 8) and point 9) the Fund shall not
combine, where this would lead to investing more than 20% of its net assets in a single body, any of the
 investments in transferable securities or money market instruments issued by that body,
 deposits made with that body, or
 exposures arising from OTC derivative transactions undertaken with that body
3)The limit of 10% laid down in point 1) may be raised to a maximum of 35% if the transferable securities or
money market instruments are issued or guaranteed by a Member State, by its public local authorities, by a
non-Member State or by public international bodies of which one or more Member States belong.
4) The limit of 10% laid down in point 1) may be raised to a maximum of 25% for certain bonds where they are
issued by a credit institution whose registered office is situated in a Member State and which is subject by
law to special public supervision designed to protect bondholders. In particular, sums deriving from the
issue of those bonds must be invested, in conformity with the law, in assets which, during the whole period
of validity of the bonds, are capable of covering claims attaching to the bonds and which, in the event of
bankruptcy of the issuer, would be used on a priority basis for the reimbursement of the principal and
payment of the accrued interest.
If the Fund invests more than 5% of its net assets in the bonds referred to in this point and issued by a
single issuer, the total value of such investments may not exceed 80% of the value of the net assets of the
The transferable securities and money market instruments referred to in points 3) and 4) are not included in
the calculation of the limit of 40% stated above in point 2).
The limits set out in points 1), 2) 3) and 4) shall not be combined; thus investments in transferable securities or
money market instruments issued by the same body or in deposits or derivative instruments made with this
body carried out in accordance with points 1), 2), 3) and 4) shall not exceed in total 35% of the net assets of
the Fund.
5) Notwithstanding the above limits, the Fund may invest, in accordance with the principle of risk-
spreading, up to 100% of its net assets in different transferable securities and money market
instruments issued or guaranteed by a Member State, one or more of its local authorities, by a
member state of the OECD or public international body to which one or more Member States of the
EU belong, provided that (i) such securities and money market instruments are part of at least six
different issues and (ii) the securities and money market instruments from any single issue do not
account for more than 30% of the total net assets of the Fund.
6) Without prejudice to the limits laid down here below the limits of 10% laid down in point 1) above is raised
to maximum 20% for investment in units and/or debt securities issued by the same body when the aim of
the investment policy of the Fund is to replicate the composition of a certain stock or debt securities index
which is recognised by the CSSF, on the following basis:
 the composition of the index is sufficiently diversified;
 the index represents an adequate benchmark for the market to which it refers;
 the index is published in an appropriate manner.
This limit of 20% is raised to 35% where that proves to be justified by exceptional market conditions, in
particular in regulated markets where certain transferable securities or money market instruments are highly
dominant. The investment up to this limit is only permitted for a single issuer.
Securities mentioned in point 6) need not to (?) be included in the calculation of the 40% limit mentioned
in point 2).
7) The Fund may acquire units of UCITS and/or other UCIs referred to under 3.1 e), provided that no more
than 20% of its net assets are invested in the units of a single UCITS or other UCI.
For the purpose of applying this investment limit, each sub-fund of a UCITS or UCI with multiple sub-funds
shall be considered as a separate issuer, provided that the principle of segregation of the obligations of the
different sub-funds is ensured in relation to third parties.
Investments in units of UCIs other than UCITS may not exceed, in aggregate, 30% of the net assets of the
When the Fund has acquired units of UCITS and/or other UCIs, the assets of the respective UCITS or other
UCIs do not have to be combined for the purposes of the limits laid down in this section 3.2.
When the Fund invests in the units of other UCITS and/or other UCIs that are managed, directly or by
delegation, by the same management company or by any other company with which the management
company is linked by common management or control, or by a substantial direct or indirect holding, that
management company or other company may not charge entry or exit charges on account of the Fund’s
investment in the units of such other UCITS and/or other UCIs.
Specific rules applicable to
1. Cross Sub-Fund investments
Each Sub-Fund may subscribe to, acquire and/or hold Shares of another Sub-Fund (“Target Sub-Fund”)
provided that:
1.1. the Target Sub-Fund does not, in turn, invest in the Sub-Fund invested in this Target Sub-Fund;
1.2 no more than 10% of the net assets of the Target Sub-Fund whose acquisition is contemplated
may be, according to its investment policy, invested in aggregate in units of other UCITS and/or
UCIs; and
1.3. voting rights, if any, attaching to the relevant securities are suspended for as long as they are held
by the concerned Sub-Fund and without prejudice to the appropriate processing in the accounts
and periodic reports; and
1.4. in any event, for as long as these securities are held by the Fund, their value will not be taken into
consideration for the calculation of the net assets of the Fund for the purpose of verifying the
minimum threshold of the net assets imposed by the Law; and
1.5 there is no duplication of management fee/entry or exit charges between those at the level of the
Sub-Fund having invested in the Target Sub-Fund, and this Target Sub-Fund.
2. Master and feeder structures for Sub-Funds
By way of derogation to the above and in accordance with the provisions of the Law, the Fund may, at its
discretion (i) create any Sub-Fund qualifying either as a feeder Sub-Fund or as a master or (ii) convert any
existing Sub-Fund into a feeder or a master Sub-Fund.
In case applicable, part II “The Sub-Funds” will be updated accordingly under the respective Sub-Fund.
Deposits with credit institutions
8) The Fund may not invest more than 20% of its net assets in deposits made with the same body.
9) The risk exposure to a counterparty of the Fund in an OTC derivative transaction may not exceed 10% of its
net assets when the counterparty is a credit institution as mentioned here before, or 5% of its net assets in
the other cases.
The Fund shall ensure that its global exposure relating to derivative instruments does not exceed the total
net asset value of its portfolio.
The risk exposure is calculated taking into account the current value of the underlying assets, the
counterparty risk, future market movements and the time available to liquidate the positions.
The global exposure to the underlying assets shall not exceed in aggregate the investment limits laid down
under article 43 of the Law.
The underlying assets of index based derivative instruments are not combined to the investment limits laid
down under sub-paragraphs mentioned here before, under the condition that the index complies with the
following criteria:
(i) The index is sufficiently diversified.
That implies that:
- the index should be composed in a way that price movements or trading activities regarding one
component do not unduly influence the performance of the whole index;
If the index is composed of eligible assets, it should be sufficiently diversified, otherwise its underlying
assets have to be combined with the other assets of the Sub-Fund for the monitoring of the restrictions in
this section 3.2.
If the index is composed of non-eligible assets, it should be sufficiently diversified, in case the derivatives on
indices are used to track such an index or to gain high exposure in such an index, in order to avoid undue
concentration.
If derivatives on these indices are used for risk diversification purposes this diversification does not apply
provided the exposure on the individual indices complies with the 5/10/40 ratios.
(ii) The index represents an adequate benchmark for the market to which it refers.
(iii) The index is published in an appropriate manner.
When a transferable security or money market instrument embeds a derivative, the latter must be taken into
account when complying with the requirements of the above mentioned restrictions.
Maximum exposure to a single body
10) The Fund may not combine:
i) investments in transferable securities or money market instruments issued by a single body and subject
to the 10% limit by body mentioned in point 1), and/or
ii) deposits made with a single body and subject to the 20% limit mentioned in point 8), and/or
iii) a risk exposure to a counterparty of the Fund in an OTC derivative transactions undertaken with a single
body and subject to the 10% or 5% limits by body mentioned in point 9) in excess of 20% of its net
The Fund may not combine:
i) investments in transferable securities or money market instruments issued by the same body and
subject to the 35% limit by body mentioned under point 3) above, and/or
ii) investments in certain debt securities issued by the same body and subject to the 25% limit by body
mentioned in point 4), and/or
iii) deposits made with the same body and subject to the 20% limit mentioned in point 8), and/or
iv) a risk exposure to a counterparty of the Fund in an OTC derivative transactions with the same body and
subject to the 10% or 5% limits by body mentioned in point 9) in excess of 35% of its net assets.
Eligible Assets issued by the same group
11) Companies which are included in the same group for the purposes of consolidated accounts, as defined
in accordance with the Directive 83/349/EEC or in accordance with recognised international accounting
rules are regarded as a single body for the purpose of calculating the limits described under the article
43 of the Law.
12) The Fund may cumulatively invest up to 20% of its net assets in transferable securities and money
market instruments within the same group.
Acquisition limits by issuer of Eligible Assets
13) The Fund may not acquire any units carrying voting rights, which would enable it to exercise significant
influence over the management of an issuing body.
The Fund may not acquire:
i) more than 10% of the non-voting units of the same issuer;
ii) more than 10% of the debt securities of the same issuer;
iii) more than 10% of the money market instruments of any single issuer;
iv) more than 25% of the units of a same UCITS or other UCI.
. The limits laid down in the second, third and fourth indents above may be disregarded at the time of
acquisition if at that time the gross amount of debt securities or of money market instruments, or of
UCITS/UCIs or the net amount of the securities in issue, cannot be calculated.
The ceilings as set forth above are waived in respect of:
a) transferable securities and money market instruments issued or guaranteed by a Member State or its
local authorities;
b) transferable securities and money market instruments issued or guaranteed by a non-Member State of
the EU;
c) transferable securities and money market instruments issued by public international bodies of which one
or more Member States of the EU are members;
d) shares held by the Fund in the capital of a company incorporated in a non-Member State of the EU which
invests its assets mainly in the securities of issuing bodies having their registered office in that State,
where under the legislation of that State, such a holding represents the only way in which the Fund can
invest in the securities of issuing bodies of that State. This derogation, however, shall apply only if in its
investment policy the company from the non-Member State of the EU complies with the limits laid down
in articles 43 and 46 of the Law and article 48, paragraphs 1) and 2) of the Law. Where the limits set in
articles 43 and 46 of the Law are exceeded, article 49 of the Law shall apply mutatis mutandis.
e) shares held by one or more investment companies in the capital of subsidiary companies which, carry on
the business of management, advice or marketing in the country where the subsidiary is established, in
regard to the repurchase of units at the request of unitholders exclusively on its or their behalf.
If the limits referred to under this section 3.2. are exceeded for reasons beyond the control of the Management
Company or as a result of the exercise of subscription rights, it must adopt as a priority objective for its sales
transactions the remedying of that situation, taking due account of the interests of its Shareholders.
While ensuring observance of the principle of risk-spreading, newly created Sub-Funds may derogate from the
limits laid down in this section 3.2. for a period of six months following the date of its authorisation.
The Board of Directors may, from time to time, impose further investment restrictions in order to meet the
requirements in such countries, where the Shares are distributed or will be distributed.
3.3. Unauthorized investments
The Fund may not:
i) acquire either precious metals or certificates representing them;
ii) carry out uncovered sales of transferable securities, money market instruments or other financial
instruments referred to in article 41 § 1 sub-paragraphs e), g) and h) of the Law; provided that this
restriction shall not prevent the Fund from making deposits or carrying out other accounts in
connection with financial derivative instruments, permitted within the limits referred to above;
iii) grant loans or act as a guarantor on behalf of third parties, provided that for the purpose of this
restriction (i) the acquisition of transferable securities, money market instruments or other financial
instruments which are not fully paid and (ii) the permitted lending of portfolio securities shall be
deemed not to constitute the making of a loan;
iv) borrow amounts in excess of 10% of its total net assets., Any borrowing is to be effected only (i) as a
temporary measure or (ii) to enable the acquisition of immovable property essential for the direct
pursuit of its business. Where the Fund is authorised to borrow under points (i) and (ii), that borrowing
shall not exceed 15% of its assets in total. However, it may acquire foreign currency by means of a
back-to-back loan.
3.4. Efficient portfolio management techniques
Securities lending, sale with right of repurchase transactions as well as repurchase and reverse repurchase
agreements may be used by any Sub-Fund for the purpose of generating additional capital or income or for
reducing costs or risk, to the maximum extent allowed by and within the limits set forth in (i) article 11 of the
Grand Ducal regulation of 8 February 2008 relating to certain definitions of the Luxembourg Law, (ii) CSSF
Circular 08/356 relating to the rules applicable to UCIs when they use certain techniques and instruments
relating to transferable securities and money market instruments, as amended from time to time and (iii) any
other applicable laws, regulations or CSSF circulars.
All the revenues arising from efficient portfolio management techniques, net of external direct costs (such as
fees paid to the securities lending agent) and indirect operational costs, are returned to the Fund.
When using these efficient portfolio management techniques, the Fund will at any time comply with the
collateral management policy as described under Section 3.5. below.
Within the limits of a standardised securities lending system, up to 50% of the transferable securities
contained in the Fund can be lent for a period of maximum 30 days. The conditions are that (1) this securities
lending system is organised by a recognised securities clearing institution or by a highly rated financial
institution which specialises in that type of transactions and (2) that the Fund has the right to terminate the
securities lending contract at any time and to demand the return of the lent securities.
The exercise of securities lending transactions is centralized in the SEB Group within a specialized securities
lending desk at SEB AB. The transactions are carried out on the basis of a written agreement between the
management company and SEB AB. As intra-group agreement the conditions applied have to be at market
conditions following the SEB Group Instruction for Handling of Conflicts of Interest. Adherence to that policy is
controlled by independent internal control by Group Compliance and Group Internal Audit in order to avoid
transactions to the disadvantage of the investor in the Fund.
3.5. Collateral management
While engaging into OTC financial derivatives and efficient portfolio management techniques, the Fund shall,
at all times, comply with the Management Company’s collateral policy, all in accordance with the ESMA
guidelines on ETFs and other UCITS issues (ESMA/2012/832).
Eligible collateral consist of high credit quality, diversified and liquid assets, valued on a daily basis.
These eligible assets are defined in the Collateral Policy. An appropriate haircut is assigned to each asset type
depending on the quality and the volatility of the asset, to ensure that the counterparty exposure is properly
collateralized, taking into account the potential risk of fluctuation in the market value of the collateral.
Non cash collateral received is not sold, re-invested/re-used or pledged and its market value, after applied
haircuts, is at least 100% of the counterparty exposure value. The Fund is capable of enforcing the collateral
at any time without reference to or approval from the counterparty.
4. Information on risk
4.1. General information
Investing in the Fund Shares involves financial risks. These can involve amongst others risk associated with
equity markets, bond markets, and foreign exchange markets such as changes in prices, interest rates,
exchange rates and credit worthiness. Any of these risks may also occur along with other risks. Some of these
risk factors are addressed briefly below.
Investors should have a clear picture of the Fund, of the risks involved in investing in Shares of the Fund and
they should not make a decision to invest until they have obtained financial and tax expert advice.
Investors assume the risk of receiving a lesser amount than they originally invested.
4.2. Risk factors
Commodity risk
Investments with exposure to commodities and precious metals can involve risks caused by changes in the
overall market movements, changes in interest rates, or factors affecting a particular industry, such as drought,
floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory
Counterparty and settlement risk
When the Fund conducts over-the-counter (OTC) transactions, it may be exposed to risks relating to the credit
standing of its counterparties and to their ability to fulfil the conditions of the contracts it enters into with
them. Therefore, while entering into forwards, options and swap transactions or using other derivative
instruments, the Fund will be subject to the risk of a counterparty which might not fulfil its obligations under a
particular contract.
Settlement risk is the risk that a settlement in a transfer system may not take place as expected.