Risk diversification

(1) The AIF capital management company may invest, for a closed-ended domestic retail AIF, only according to the principle of risk diversification. The principle of risk diversification within the meaning of the first sentence is regarded as satisfied where 1. either investment is made in at least three real assets within the meaning of section 261(2) and the shares of each individual real asset in the capital of the AIF are substantially evenly distributed, or 2. a diversification of default risk is ensured from an economic point of view. The closed-ended domestic retail AIF must be invested with risk diversification no later than 18 months after the commencement of marketing. For the period under the third sentence, during which the closed-ended retail AIF is not yet invested with risk diversification, investors must be notified of this in the sales prospectus.
(2) By way of derogation from subsection (1), the AIF capital management company may invest for the closed-ended domestic retail AIF without complying with the principle of risk diversification, where 1. it does not invest, for the closed-ended domestic retail AIF, in assets within the meaning of section 261(1), point 4, and 2. the units or shares of this AIF are acquired only by retail investors a) who undertake to invest at least EUR 20,000, and b) for whom the conditions named in section 1(19), point 33, letter a, double letters bb to ee, are satisfied. A subsequent acquisition of the units or shares of this AIF by operation of law by a retail investor who does not satisfy the requirements of the first sentence, point 2, is disregarded. Where investment is made for the closed-ended domestic retail AIF without complying with the principle of risk diversification, the sales prospectus must, in a prominent place, draw attention to the default risk arising from the lack of risk diversification.
(3) By way of derogation from subsection (1), the AIF capital management company may invest for the closed-ended domestic retail AIF without complying with the principle of risk diversification, where 1. it invests, for the closed-ended domestic retail AIF, exclusively in assets under section 261(2), point 4, and 2. investors are resident exclusively a) in the municipality or municipalities in whose municipal area the asset is located, or in a municipality directly bordering this municipality or these municipalities, or b) in the case of an onshore wind energy installation within the meaning of section 3, point 48, of the Renewable Energy Sources Act, in a municipality within the meaning of section 6(2), second sentence, of the Renewable Energy Sources Act.
(4) Investors are regarded as resident within the meaning of subsection (3) where they 1. as natural persons, have their principal or secondary residence in one of the municipalities named in subsection (3), point 2, or 2. are owners of a property in one of the municipalities named in subsection (3), point 2, without already being, as an investor in the closed-ended domestic retail AIF, a co-owner of the property on which the assets named in subsection (3), point 1, are located or are to be erected.