AI Summary of Article 54
This summary outlines provisions allowing UCITS to invest up to 100% of their assets in transferable securities and money market instruments issued or guaranteed by Member States or public international bodies, as a derogation from Article 52. Such investments must adhere to risk-spreading principles, ensuring unit-holder protection equivalent to standard compliance.
Furthermore, UCITS intending to allocate more than 35% of assets to specific issuers must disclose this in fund rules and prospectuses, with approval from competent authorities. A prominent statement within all marketing communications will highlight these authorisations and investments exceeding the stipulated thresholds.
Article 54
1. By way of derogation from Article 52, Member States may authorise UCITS to invest in accordance with the principle of riskspreading up to 100 % of their assets in different transferable securities and money market instruments issued or guaranteed by a Member State, one or more of its local authorities, a third country, or a public international body to which one or more Member States belong.
The competent authorities of the UCITS home Member State shall grant such a derogation only if they consider that unit-holders in the UCITS have protection equivalent to that of unit-holders in UCITS complying with the limits laid down in Article 52.
Such a UCITS shall hold securities from at least six different issues, but securities from any single issue shall not account for more than 30 % of its total assets.
2. The UCITS referred to in paragraph 1 shall make express mention in the fund rules or in the instruments of incorporation of the investment company of the Member States, local authorities, or public international bodies issuing or guaranteeing securities in which they intend to invest more than 35 % of their assets.
Such fund rules or instruments of incorporation shall be approved by the competent authorities.