Securities policy and investment of securities General Sample Clauses
The 'Securities policy and investment of securities General' clause establishes the overarching rules and guidelines for how securities are to be managed and invested by the relevant party. It typically outlines the types of permissible investments, the standards for selecting securities, and any restrictions or requirements that must be followed, such as risk management protocols or compliance with regulatory frameworks. By setting these parameters, the clause ensures that the investment of securities is conducted prudently and in accordance with agreed-upon policies, thereby safeguarding the interests of stakeholders and minimizing potential financial or legal risks.
Securities policy and investment of securities General. In connection with transactions in OTC financial derivatives and efficient portfolio management techniques, the management company may accept securities in the name and for the account of the UCITS in order to reduce its counterparty risk. This section describes the securities policy applied by the management company in these cases. All securities received by the management company in the context of efficient portfolio management techniques (securities loans, repurchase agreements, reverse repurchase agreements) in the name and for account of the UCITS shall be treated as securities in the sense of this section. The management company may use the securities it has received to re- duce the counterparty risk if they comply with the criteria described in the applicable laws, regulations, and rulings issued by the FMA, especially in terms of liquidity, valuation, credit rating of the issuer, correlation, risk in connection with the management of securities and realisability. Securities must in particular fulfil the following conditions: All securities not consisting of cash should be of good quality and high liquidity and traded on a regulated market or a multilateral trading system with transparent pricing so that they can be sold quickly at a price that corresponds approximately to the valuation before the purchase. They must be valued at least on a daily basis, and any assets that show high price volatility should only be accepted as securities if they have been provided with appropriately conservative discounts (haircuts). They must have been issued by a unit that is independent of the counter- party and that may not be expected to show a strong correlation with the performance of the counterparty. They should be diversified widely over countries, markets and issuers, with a maximum commitment of 20% in total of the net asset value (NAV) of the UCITS in individual issuers when all received securities are taken into account. A UCITS can deviate from this in accordance with the regulations under 7.3.5 – 7.3.7 above. They should be realisable at all times without recourse to or approval by the counterparty of the management company. The management company determines the required amount of the secu- rities for transactions with OTC derivatives and for efficient portfolio man- agement techniques by reference to the limits for counterparty risks appli- cable according to the sales prospectus and in due consideration of the type and characteristics of the transac...
Securities policy and investment of securities General. In connection with transactions in OTC financial derivatives and effi- cient portfolio management techniques, the management company may accept securities in the name and for the account of the UCITS in order to reduce its counterparty risk. This section describes the se- curities policy applied by the management company in these cases. All securities received by the management company in the context of efficient portfolio management techniques (securities loans, repur- chase agreements, reverse repurchase agreements) in the name and for account of the UCITS shall be treated as securities in the sense of this section.