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:

  1. They are economically appropriate in that they are realised in a cost-effective way;
  2. 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;
  3. Their risks are adequately captured by the risk management process of the Retail Investor AIF.

Issued: 3 July 2013
Latest revision: 3 July 2013