Subject to certain conditions, a sub-fund of a PIF or of an AIF which is constituted as a SICAV is allowed to invest up to 50% of its assets into another sub-fund or sub-funds within the same umbrella scheme.
Following various requests for clarifications, by means of an explanatory note dated 06th February 2014, the MFSA has clarified that the said "50% limitation applies for an investment in any one other sub-fund of the same scheme, but not to the collectivity of investments by such sub-fund in all the other sub-funds of the same scheme."
By virtue of the above it is now clear that a sub-fund could, theoretically, invest up to 50% of its assets in one sub-fund of the same umbrella structure and another 50% of its assets in another sub-fund of the same umbrella structure.
In view of the above, the MFSA will be amending the relevant Rulebooks in order to ensure clarity and consistency in the interpretation.
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