law of 20 December 2002 - Alfi

(4) The modalities for the practical application of this Article are laid down by agrand-ducal regulation.Art. 43 (1) A UCITS may invest no more than 10% of its assets in transferable securitiesor money market instruments issued by the same body. A UCITS may notinvest more than 20% of its assets in deposits made with the same body. Therisk exposure to a counterparty of the UCITS in an OTC derivative transactionmay not exceed 10% of its assets when the counterparty is a credit institutionreferred to in Article 41, paragraph (1) (f) or 5% of its assets in other cases.(2) The total value of the transferable securities and money market instrumentsheld by a UCITS in the issuing bodies in each of which it invests more than5% of its assets must not exceed 40% of the value of its assets. This limitationdoes not apply to deposits and OTC derivative transactions made with financialinstitutions subject to prudential supervision.notwithstanding the individual limits laid down in paragraph (1), a UCITS maynot combine:– investments in transferable securities or money market instruments issuedby a single body,– deposits made with a single body, and/or– exposures arising from OTC derivative transactions undertaken with asingle body,in excess of 20% of its assets.(3) The limit laid down in the first sentence of paragraph (1) may be of a maximumof 35% if the transferable securities or money market instruments are issuedor guaranteed by a Member State of the European Union, by its public localauthorities, by a non-Member State or by public international bodies of whichone or more Member States are members.(4) The limit laid down in the first sentence of paragraph (1) may be of a maximumof 25% for certain bonds when they are issued by a credit institution whichhas its registered office in a Member State of the European Union and issubject by law, to special public supervision designed to protect bondholders.In particular, sums deriving from the issue of these bonds must be invested inconformity with the law in assets which, during the whole period of validity ofthe bonds, are capable of covering claims attaching to the bonds and which,in case of bankruptcy of the issuer 38 , would be used on a priority basis for therepayment of principal and payment of the accrued interest.If a UCITS invests more than 5% of its assets in the bonds referred to in the firstsubparagraph and issued by one issuer, the total value of such investmentsmay not exceed 80% of the value of the assets of the UCITS.(5) The transferable securities and money market instruments referred to inparagraphs (3) and (4) are not included in the calculation of the limit of 40%referred to in paragraph (2).The limits set out in paragraphs (1), (2), (3) and (4) may not be combined; thusinvestments in transferable securities or money market instruments issuedby the same body, in deposits or derivative instruments made with this bodycarried out in accordance with paragraphs (1), (2), (3) and (4) may not exceeda total of 35% of the assets of the UCITS.38 The English version of amended Directive 85/611/EEC makes reference to the “failure of the issuer” as does theGerman version: “Ausfall des Emittenten”.28