Article 15: Fund’s Subscriptions

Article 15: Fund’s Subscriptions

a. A fund manager and any of its affiliates may only subscribe, for their own accounts, in units in an investment fund which is managed by the fund manager if the intention of such subscription is disclosed in the Fund’s Terms and Conditions, if the following requirements are satisfied:

1) the terms of the fund manager’s (or its affiliates') subscriptions, and the rights attached to the units which they hold must be no more favourable than those of other unitholders of the same class;

2) the fund manager and its affiliates shall not be entitled to vote on the units which they hold; and

3) the public fund manager shall disclose at the end of each quarter details of its investments in the fund’s units on the fund manager's website and the Exchange’s website, or any other website available to the public according to the controls set out by the Authority (where applicable), as well as in the reports that the fund manager prepares in accordance with Article (78 ) of these Regulations.

b. A unitholder whose subscription in a closed-ended fund was made in kind may reduce its ownership to a minimum of (50%) of the number of units issued for its in kind contribution after one year from the date of subscription in the fund or the date of operation of the fund, whichever is further, unless the relevant Fund’s Terms and Conditions state a longer period.

c. Without prejudice to the restrictions stipulated in Article (49 ) of these Regulations, a closed-ended investment traded fund shall be excluded from the provisions of Paragraph

(b) of this Article.