Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002)Board NoticesDetermination of Securities, Class of Securities, Assets or Classes of Assets that may be included in a portfolio of a Collective Investment Scheme in Securities and the manner in which and the limits and conditions subject to which Securities or Assets may be so includedChapter ll : Money Market Portfolio6. Inclusion limits |
| (1) | A manager may include money market instruments, whether listed on an exchange or not, in a money market portfolio, subject to paragraph 8(7) of this Notice, and the limits as specified in the table below. |
Table 2
Item |
Categories of non-equity securities |
Limits being the maximum percentage of the aggregate market value of the portfolio |
|
Per issuer/guarantor as applicable |
In aggregate for all issuers/guarantors as applicable |
||
1 |
Money market instruments issued or guaranteed by: |
|
100% |
1.1 |
the government of the Republic of South Africa; |
100% |
100% |
1.2 |
any foreign government which has been assigned a foreign currency sovereign rating not lower than that of the Republic of South Africa; |
100% |
100% |
1.3 |
the South African Reserve Bank. |
100% |
100% |
2 |
Money market instruments issued or guaranteed by a local or foreign bank which forms part of a group of companies (in terms of the Companies Act) of which the holding company is listed on an exchange: |
|
100% |
2.1 |
with a market capitalisation for the listed group holding company of more than R 20 billion; |
30% |
100% |
2.2 |
with a market capitalisation for the listed group holding company of between R 2 billion and R 20 billion. |
20% |
100% |
3 |
Money market instruments issued or guaranteed by: |
|
100% |
3.1 |
a public entity under the Public Finance Management Act,1999 (Act No.1 of 1999); and |
10% |
100% |
3.2 |
any local or foreign entity which is listed on an exchange. |
10% |
100% |
4 |
Money market instruments issued or guaranteed by entities not described above where such security: |
|
25% |
4.1 |
Is listed and traded on an exchange |
5% |
25% |
4.2 |
Is not listed on an exchange, |
5% |
10% |
| (2) | In order to determine the market capitalisation of an internationally listed group holding company, a conversion must be done to Rand at the prevailing foreign exchange rate at the date of inclusion of the instrument and thereafter at least once every 30 days. |
| (3) | Where, after the date of inclusion of any money market instrument in a money market portfolio, a reduced inclusion limit becomes applicable to that instrument, the manager must rectify the position within 30 days of such reduced limit becoming applicable: Provided that if the manager and the trustee are of the view that rectification would be detrimental to a particular portfolio, the manager must, within seven days of the date of becoming aware of the change in limits, submit a detailed plan setting out measures to rectify the position to the Registrar for consideration for approval. |
| (4) | Where a manager is unable to comply with any limit prescribed in this paragraph through no fault of its own, the manager must, if the non-compliance is not rectified within 30 days of the date on which the manager becomes aware of the non-compliance, submit a detailed plan setting out measures to rectify the position to the registrar for consideration for approval. |