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Feb 1 2016 onwards

CIR 13.8.1

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The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

(1) A Fund ManagerG of a Money Market FundG must ensure that the Fund'sG investment strategy is consistent with the investment objectives of such a FundG as set out in CIR Rule 3.1.11.
(2) Without limiting (1), the Fund ManagerG of a Money Market FundG must ensure that:
(a) at least 90% of the net asset value of the Fund PropertyG is invested in Deposits or Debentures that are of high quality, as determined by the Fund ManagerG in accordance with CIR Rule 13.8.2;
(b) at least 10% of the net asset value of the Fund PropertyG consists of cash in accounts that permit the cash to be withdrawn immediately on demand;
(c) DepositsG with, or DebenturesG issued by, a single entity do not exceed 10% of the net asset value of the Fund PropertyG ;
(d) the FundG invests only in DepositsG or DebenturesG :
(i) with a residual maturity until the legal redemption date of not more than two years; and
(ii) where the time remaining until the next interest rate reset date is not more than 397 days;
(e) the Fund PropertyG has a weighted average maturity of not more than 6 months;
(f) the Fund PropertyG has a weighted average life of not more than 12 months;
(g) the FundG does not invest in Financial InstrumentsG other than DepositsG or DebenturesG , except for:
(i) UnitsG in other Money Market FundsG that have investment objectives and strategies consistent with those of the FundG ; or
(ii) Derivatives that are used solely to hedge against foreign exchange rate risk; and
(h) the borrowings of the FundG do not, at any time, exceed 10% of the net asset value of the Fund PropertyG .
(3) In (2):
(a) the "net asset value" of Fund Property, means the value of Fund PropertyG at the most recent valuation under CIR Rule 8.4.1;
(b) the "weighted average maturity" of Fund PropertyG , means the average length of time to maturity of all the Financial InstrumentsG held as Fund PropertyG , weighted to reflect the relative holdings in each Financial InstrumentG , where the maturity of a floating rate instrument is the time remaining until the next interest rate reset; and
(c) the "weighted average life" of Fund PropertyG , means the weighted average of the remaining life of each Financial InstrumentG held as Fund PropertyG , where the remaining life of a Financial InstrumentG is the time until the due date for repayment of the principal.
[Added] RM158/2015 (Made 9th December 2015). [VER19/02-16]