UCITS Eligibility of Actively Managed Certificates

Considering the UCITS Eligible Assets Directive, Actively Managed Certificates (AMCs) are eligible for inclusion in a UCITS Fund, provided they meet several specific criteria.

Criteria for UCITS Eligibility

1. Limiting potential loss to the amount initially invested - all AMCs comply with this as they do not include a capital call structure.

2. Ensuring liquidity does not hinder the UCITS' compliance with Directive 85/611/EEC. AMCs listed at the Stuttgart Exchange have a daily liquidity.

3. Provision of reliable valuation, available through daily market prices at the Stuttgart Exchange.

4. Availability of appropriate information, as per the requirements of the prospectus regulation and the market abuse regulation.

5. Negotiability - all AMCs admitted to trading at the Stuttgart Exchange meet this criteria.

6. Consistency with the UCITS' investment objectives and policy. It's crucial for the UCITS Fund to verify alignment with their investment strategy.

7. Ensuring risks are appropriately managed and reflected in the UCITS risk management process.

For further details, refer to the UCITS eligible Assets Directive. (See link in comment section)

Also, consider checking out the FAQ by the German regulator BaFin (only in German). It provides valuable insights into the eligibility of securities linked to and/or backed by other assets, like AMCs, for UCITS funds.

PS: You can use the following links to easily book an e-meeting with us: https://meetings.hubspot.com/jeffrey-alldis (Jeffrey Alldis) or https://meetings.hubspot.com/herbert-hakala (Herbert Hakala)