Techniques and instruments which relate to transferable securities or money market instruments and which are used for the purpose of efficient portfolio management shall be understood as a reference to techniques and instruments which fulfil the following criteria:

(a) They are economically appropriate in that they are realised in a cost-effective way;

(b) They are entered into for one or more of the following specific aims:

  • reduction of risk
  • reduction of cost;
  • generation of additional capital or income for the Retail Investor AIF with a level of risk which is consistent with the risk profile of the Retail Investor AIF and the risk diversification rules set out in the Retail Investor AIF chapter;

(c) Their risks are adequately captured by the risk management process of the Retail Investor AIF.

Issued: 3 July 2013

Latest revision: 3 July 2013