Concentration Rules Sample Clauses
Concentration Rules are provisions that set limits on the amount or proportion of exposure, investment, or risk that can be allocated to a single entity, asset, or category within a portfolio or agreement. These rules typically require parties to diversify holdings or counterparties, such as capping the percentage of a fund that can be invested in a single company or restricting the amount of credit exposure to one borrower. By enforcing such limits, Concentration Rules help prevent excessive risk accumulation in one area, thereby promoting stability and reducing the likelihood of significant losses due to overexposure.
Concentration Rules. Pursuant to the investment objective and strategy of the Sub-Fund, the Sub-Fund will invest at least 85% of its assets in the Master Fund and up to 15% of its assets in liquid assets, as described in above under the heading “Permitted Investments”. Subject to the Master Fund’s investment restrictions and the UCITS law, the Master Fund is not restricted as to the percentage of assets which may be invested in any particular industry, instrument, market or strategy. In attempting to maximize the returns, the Master Fund may concentrate holdings in certain industries, instruments, markets or strategies, which in the Investment Manager’s sole judgement, provide the best profit opportunities and are consistent with the Master Fund’s investment objective and permitted investments.
Concentration Rules. The Sub-Fund may use derivative financial instruments to achieve the investment objective of appropriate total returns as well as sustainable capital appreciation, and to limit losses in declining (unfavourable) markets. Furthermore, the Sub-Fund may invest up to 25% of its assets in convertible debentures and notes as well as warrant-linked bonds, and up to 10% in shares and other equity securities and instruments as well as warrants. At least 80% of the foreign currency risk is hedged against the reference currency of the relevant unit class. The Sub-Fund may invest up to 10% of its assets in units of collective investment undertakings and other undertakings comparable to a UCITS. Subject to the UCITS’ investment restrictions and the UCITS law, the Sub-Fund is not restricted as to the percentage of assets which may be invested in any particular industry, instrument, market or strategy. In attempting to maximize the returns, the Sub-Fund may concentrate holdings in certain industries, instruments, markets or strategies, which in the Asset Manager’s sole judgement, provide the best profit opportunities and are consistent with the Sub-Fund’s investment objective and permitted investments.