Steer · Prudential sovereign bias
Fund diversification-limit exemptions for government securities
- What it is
- Collective-investment rules that cap exposure to one issuer at a few percent allow up to 100% in government paper.
- Why it counts
- Lets retail funds concentrate savings in sovereign debt and lets governments rely on fund demand without diversification limits.
When it was in force
- European Union: 1985 → now, in force; the rule may be older than the cited document
Example
European Union
1985 → nowIn forceThe rule may be older than the cited document
Member States may let UCITS invest up to 100% in securities issued or guaranteed by a Member State.
European Union today: index 44.0Directive 2009/65/EC (UCITS IV), Article 54 (derogation from Article 52 issuer limits)Primary source
“Member States may authorise UCITS to invest in accordance with the principle of risk-spreading up to 100 % of their assets in different transferable securities and money market instruments issued or guaranteed by a Member State”
Examples and their dates reviewed .