(1) The UCITS capital management company may invest in securities and money market instruments of the same issuer only up to 5 percent of the value of the domestic UCITS; however, up to 10 percent of the value of the domestic UCITS may be invested in these instruments where this is provided for in the investment conditions and the total value of the securities and money market instruments of these issuers does not exceed 40 percent of the value of the domestic UCITS. The 40 percent issuer limit does not apply to
1. deposits with institutions under section 1(1b) of the Banking Act and securities institutions under section 2(1) of the Securities Institutions Act, and
2. transactions having derivatives as their subject matter, with institutions under section 1(1b) of the Banking Act and securities institutions under section 2(1) of the Securities Institutions Act. The issuers of securities and money market instruments must also be taken into account within the limits named in the first sentence where the securities and money market instruments issued by them are acquired indirectly through other securities held in the UCITS that are linked to their performance.
(2) The UCITS capital management company may invest in debt securities, promissory note loans, and money market instruments issued or guaranteed by the Federation, a Land, the European Union, a Member State of the European Union or its government entities, another State party to the Agreement on the European Economic Area, a third country, or an international organisation of which at least one Member State of the European Union is a member, up to 35 percent of the value of the domestic UCITS in each case, only where this is provided for in the investment conditions.
(3) The UCITS capital management company may invest up to 25 percent of the value of the domestic UCITS in covered bonds within the meaning of Article 3, point 1, of Directive (EU) 2019/2162 of the European Parliament and of the Council of 27 November 2019 on the issue of covered bonds and covered bond public supervision and amending Directives 2009/65/EC and 2014/59/EU (OJ L 328, 18.12.2019, p. 29), only where this is provided for in the investment conditions. Where the UCITS capital management company invests more than 5 percent of the value of the domestic UCITS in bonds of the same issuer under the first sentence, it must ensure that the total value of these bonds does not exceed 80 percent of the value of the domestic UCITS.
(4) The UCITS capital management company may invest only up to 20 percent of the value of the domestic UCITS in bank balances under section 195 with the same credit institution.
(5) The UCITS capital management company must ensure that a combination of
1. securities or money market instruments issued by one and the same entity,
2. deposits with this entity, and
3. amounts counted towards counterparty risk for transactions having derivatives as their subject matter concluded with this entity that are not cleared through a central counterparty authorised under Article 14 of Regulation (EU) 648/2012 or recognised under Article 25 of that Regulation, does not exceed 20 percent of the value of the respective domestic UCITS. The first sentence applies to the issuers and guarantors named in subsections (2) and (3), with the proviso that the UCITS capital management company must ensure that a combination of the assets and amounts counted towards counterparty risk named in the first sentence does not exceed 35 percent of the value of the respective domestic UCITS. The respective individual upper limits remain unaffected in both cases.
(6) The bonds, promissory note loans, and money market instruments named in subsections (2) and (3) are not taken into account when applying the 40 percent limit named in subsection (1). The limits named in subsections (1) to (5) may not be cumulated, by way of derogation from the rule in subsection (5).
(7) Securities and money market instruments of undertakings between which a connection within the meaning of section 290(1), first sentence, of the Commercial Code exists are regarded as securities of the same issuer.