Efficient Portfolio Management by Retail Investor AIF

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