Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002)Board NoticesDetermination on the requirements for hedge fundsPart 3 : Retail Hedge Fund10. Permitted assets and securities |
| (1) | A manager may only include investments in other retail hedge funds or in collective investment schemes in securities in accordance with the limits set out in Table 5 of Annexure A in a portfolio. |
| (2) | A manager may only include securities in a portfolio as set out in the founding document, provided that the following principles are adhered to and subject to the exposure limits set out in Table 1 of Annexure A— |
| (a) | where the securities are listed, the securities must be dealt with on an exchange; or on a market which is regulated, operates regularly, is recognised and open to the public; |
| (b) | a security based on the value of a commodity must comply with paragraph 3(g)(ii) and settled prior to its maturity so as not to require physical delivery of any commodity; |
| (c) | a reliable valuation for the security must exist; and |
| (d) | the liquidity of instruments must not compromise the liquidity terms of the portfolio. |