law of 20 December 2002 - Alfi

Companies which are included in the same group for the purposes of consolidatedaccounts, as defined in accordance with Directive 83/349/EEC or inaccordance with recognised international accounting rules, are regarded as asingle body for the purpose of calculating the limits contained in this Article.A UCITS may cumulatively invest up to 20% of its assets in transferablesecurities and money market instruments within the same group.Art. 44 (1) Without prejudice to the limits laid down in Article 48, the limits laid down inArticle 43 are raised to a maximum of 20% for investments in shares and/or bonds 39 issued by the same body when, according to the constitutionaldocuments of the UCITS, the aim of the UCITS’ investment policy is to replicatethe composition of a certain stock or bond 40 index which is recognised by theCSSF, on the following basis:– the composition of the index is sufficiently diversified;– the index represents an adequate benchmark for the market to which itrefers;– it is published in an appropriate manner.(2) The limit laid down in paragraph (1) is raised to 35% where that proves to bejustified by exceptional market conditions in particular in regulated marketswhere certain transferable securities or money market instruments are highlydominant. The investment up to this limit is only permitted for a single issuer.(3) The modalities for the practical application of this Article are laid down by agrand-ducal regulation.Art. 45 (1) By way of derogation from Article 43, the CSSF may authorise a UCITS toinvest in accordance with the principle of risk-spreading up to 100% of its assetsin different transferable securities and money market instruments issued orguaranteed by any Member State of the European Union, its local authorities,a non-Member State of the European Union or public international bodies ofwhich one or more Member States of the European Union are members.The CSSF shall grant such an authorisation only if it considers that unitholdersin the UCITS have protection equivalent to that of unitholders in UCITScomplying with the limits laid down in Articles 43 and 44.These UCITS must hold securities from at least six different issues, butsecurities from any one issue may not account for more than 30% of the totalamount.(2) The UCITS referred to in paragraph (1) must make express mention, in theirconstitutional documents, of the States, local authorities or public internationalbodies issuing or guaranteeing securities in which they intend to invest morethan 35% of their assets.(3) In addition, the UCITS referred to in paragraph (1) must include a prominentstatement in their prospectuses and in any promotional literature, drawingattention to such authorisation and indicating the States, local authorities andpublic international bodies in the securities of which they intend to invest orhave invested more than 35% of their assets.39 See footnote 8.40 See footnote 8.29