Investment provisions

A special investment fund is an investment fund that does not, in its investment practice, materially infringe the following conditions (investment provisions): 1. The investment fund, or its manager, is subject, in its state of seat, to supervision of assets for collective capital investment. This condition is deemed satisfied for investment funds managed by AIF management companies under section 2(3) of the Capital Investment Code. 2. The investors may exercise the right to return or terminate their units, shares or interests at least once a year. 3. The assets are invested on the principle of risk diversification. Risk diversification as a rule exists where the assets are invested in more than three assets with differing investment risks. The principle of risk diversification is deemed maintained where the investment fund holds, to a not insignificant extent, units in one or more other investment funds, and those other investment funds are invested, directly or indirectly, on the principle of risk diversification. 4. The assets are invested to at least 90 per cent of the value of the investment fund in the following assets: a) securities within the meaning of section 193 of the Capital Investment Code and other investment instruments within the meaning of section 198 of the Capital Investment Code, b) money market instruments, c) derivatives, d) bank deposits, e) land, rights equivalent to land and comparable rights under the law of other states, f) holdings in real estate companies within the meaning of section 1(19) no. 22 of the Capital Investment Code, g) operating installations and other items under section 231(3) of the Capital Investment Code, h) investment units in domestic or foreign investment funds, and units in domestic or foreign investment assets within the meaning of section 1(1) of the Capital Investment Code that are not investment funds, i) special investment units, j) holdings in PPP project companies within the meaning of section 1(19) no. 28 of the Capital Investment Code, in infrastructure project companies within the meaning of section 1(19) no. 23a of the Capital Investment Code, and in companies whose corporate object is directed at the management of renewable energy within the meaning of section 1(19) no. 6a of the Capital Investment Code, where the market value of that holding can be determined, k) precious metals, l) unsecuritised loan claims, m) holdings in corporations, where the market value of those holdings can be determined, n) crypto-assets within the meaning of section 1(11), fourth sentence of the Banking Act, where their market value can be determined and they are not securities within the meaning of section 193 of the Capital Investment Code. 5. At most 20 per cent of the value of the investment fund is invested in holdings in corporations that are neither admitted to trading on a stock exchange nor admitted to or included in another organised market. Investment funds that, under their investment conditions, invest the money invested with them in real estate, real estate companies or infrastructure project companies, may invest up to 100 per cent of their value in holdings in corporations satisfying the conditions of real estate companies or infrastructure project companies. Within the limits of the first sentence, business holdings acquired before 28 November 2013 may also be held. At most 20 per cent of the value of the investment fund is invested in crypto-assets within the meaning of no. 4(n). 6. The amount of the direct holding, or the indirect holding through a partnership, in a corporation is below 10 per cent of the capital of the corporation. This does not apply to holdings of an investment fund in a) companies whose corporate object is directed at the management of renewable energy within the meaning of section 1(19) no. 6a of the Capital Investment Code, b) real estate companies, c) infrastructure project companies, and d) PPP project companies. 7. A loan may be taken out only short-term and only up to an amount of 30 per cent of the value of the investment fund. Investment funds that, under their investment conditions, invest the money invested with them in real estate, may take out short-term loans up to an amount of 30 per cent of the value of the investment fund and otherwise loans up to an amount of 60 per cent of the market value of the real estate held directly or indirectly. 7a. The income from active entrepreneurial management within the meaning of section 15(2), first sentence, no. 2 amounts, in a financial year, to less than 5 per cent of the investment fund's total income. Disregarded for the purposes of the first sentence is income from a) the management of renewable energy within the meaning of section 1(19) no. 6a of the Capital Investment Code and from the management of charging stations for electric mobility, in each case connected with the letting and leasing of real estate, b) holdings in companies within the meaning of section 15(2), second sentence, and c) investment units and units under no. 4(h). 8. No more than a total of 100 investors may participate in the investment fund, directly and indirectly through partnerships. Natural persons may participate only where a) the natural persons hold their special investment units as business assets, b) the participation of natural persons is required under supervisory rules, or c) the indirect participation of natural persons in a special investment fund was acquired before 9 June 2016. The grandfathering under the second sentence, letter (c) applies, for holdings acquired from 24 February 2016, until 1 January 2020, and, for holdings acquired before 24 February 2016, until 1 January 2030. The grandfathering under the second sentence, letter (c) also applies to the universal successors of natural persons. 9. The special investment fund has a special right of termination where the permissible number of investors is exceeded, or persons participate who do not satisfy the conditions of no. 8, second sentence. 10. The investment provisions, with the exception of no. 7a, arise from the investment conditions.