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  • BDE-4.1 BDE-4.1 Risk Management

    • BDE-4.1.1

      Bahrain domiciled expert CIUs must operate on the principle of risk spreading and must maintain and implement investment and risk management policies aimed at the prudent risk control.

      April 2012

    • BDE-4.1.2

      The prospectus must summarise the policies and limits which the Bahrain domiciled expert CIU will apply, including (but not limited to):

      (a) The type of assets which the CIU may invest in;
      (b) The aggregate limits for each asset class;
      (c) Geographic allocation, limits per country, and sectors limits (if applicable);
      (d) Permitted individual exposures under each asset class; and
      (e) A description of remedial measures to be taken in the event of limit exceptions.
      April 2012

    • BDE-4.1.3

      As further guidance, reference should be made to Supplementary Information document, ARR (iii) which sets out the minimum information to be contained in the prospectus, and Supplementary Information document, ARR (iv) which sets out the admissible assets and limits for Bahrain domiciled expert CIUs.

      April 2012

    • BDE-4.1.4

      Bahrain domiciled expert CIUs may only invest in the type of assets specified in and in accordance with the limits prescribed in ARR(iv), unless otherwise agreed and approved in writing by the CBB. However, such limits do not apply until the expiry of a period of six months from the date of the initial offering of the CIU.

      April 2012

    • BDE-4.1.5

      Where such approvals are given, the fact must be notified to CIU participants as an amendment to the prospectus (and simplified prospectus where applicable).

      April 2012

    • BDE-4.1.6

      The CBB may allow a Bahrain domiciled expert CIU to broaden its investment policy to allow investments in financial assets other than those specified in ARR(iv), if it is satisfied that such assets are sufficiently liquid and the interests of the CIU participants are not prejudiced. The CBB may similarly also approve limits beyond those specified in ARR(iv), if it is satisfied that such approval is in the interests of the CIU participants.

      April 2012

    • BDE-4.1.7

      If the name or particulars of a Bahrain domiciled expert CIU indicates a specific objective, asset class, geographic region or market, the CIU must invest at least 60% of its assets in investments that reflect the specific objective, asset class, region or market. The remaining balance of the CIU's assets may only be held in cash or cash equivalents.

      April 2012