Investment Limits
CIU-1.6.4
Subject to Rule CIU-1.6.6,
Bahrain domiciled retail CIUs may only invest in the assets specified and in accordance with the limits prescribed in Appendix D.CIU-1.6.5
In the case of an umbrella fund (as defined in Rule CIU-B.3.5), the limits referred to in Rule CIU-1.6.4 are applicable to each sub-fund.
CIU-1.6.6
The limits prescribed in Appendix D do not apply until the expiry of a period of six months after the date of initial offering of the
CIU .CIU-1.6.7
Where the limits specified in Appendix D are breached, the
Bahrain domiciled retail CIU must report the fact as soon as it becomes aware of the situation to the CBB.CIU-1.6.8
The CBB may authorise a
CIU to widen its investment policy to allow investments in financial assets other than those specified in Appendix D, if it is satisfied that such assets are sufficiently liquid and the interests of theCIU participants are not prejudiced. The CBB may similarly also authorise limits beyond those specified in Appendix D, if it is satisfied that such relief is in the interests of theCIU participants . Where such approvals are given, the fact must be notified toCIU participants as an amendment to theprospectus (andsimplified prospectus where applicable).CIU-1.6.9
If the name or particulars of a
Bahrain domiciled retail CIU indicates a specific objective, asset class, geographic region or market, theCIU must invest at least 60% of its assets in investments that reflect the specific objective, asset class, region or market. The remaining balance of theCIU's assets may only be held in cash or cash equivalents.
