UCITS Borrowing and Diversification

Question 1

Diversification: What is the maximum % a fund can invest in one company?

Answer 1

10% - No more than 4 companies at maximum

Question 2

Diversification: What is the minimum number of companies a fund must invest in?

Answer 2

16

4 @ 10%
12@ 5%

Question 3

Diversification: What % of a UCITS can be invested in unquoted companies?

Answer 3

10%

Question 4

Borrowing: FCA Stance?

Answer 4

Borrowing Only, but not normally permitted

Question 5

Borrowing: How much could be borrowed?

Answer 5

Up to 10% of fund value

Question 6

Borrowing: How long can funds be be borrowed for and on what basis?

Answer 6

Short term only (3 months) provided borrowing is supported by existing receipts.