5.6 Investment Restriction and Limit, Policy on Gearing and Liquid Assets
 
1. The investments limits for the funds are in line with the SC Guidelines on Unit Trust Funds and are as follows:-
 
(a)     The value of the fund’s holding in the share capital in any one company. Shall not exceed 10% of the fund’s NAV
(b)     The value of the securities and instruments relating to any single issuer. Shall not exceed 15% of the fund’s NAV
(c)     The value of the fund’s holding in the securities and instruments relating to any group of companies. Shall not exceed 20% of the fund’s NAV
(d)     The value of the fund’s holding in any class of security in any company. Shall not exceed 10% of the security issued
(e)     The value of the fund’s holdings in warrants and option. Shall not exceed 10% of the fund’s NAV.  The investment limit refers to the price of the warrants and the premium of the options.
(f)     The value of the fund’s holding in liquid asset. Shall retain at least 5% of the fund’s NAV except for ASM Balanced where the minimum level of liquid asset shall be maintained at 30%.
 
2. A 5% allowance in excess of any limit or restriction may be permitted where the limit or restriction is breached through an appreciation or depreciation of the NAV of the fund (whether as a result of an appreciation or depreciation in value of the investments, or as a result of repurchase of units or payment made from the fund).

Should there be any breach of limit, the fund will not make any further acquisitions and will undertake all necessary steps and actions to rectify the breach within a reasonable period of not exceeding three (3) months from the date of the breach.
 
3. For ASM Index, the fund’s holding in equities must not exceed 95% of the fund’s NAV where 80% of the equities investment shall be invested in the index-linked stocks.

As to meet the fund’s objective to track or replicate the index, the value of the fund’s holding in the component securities may exceed the limits specified in 5.6(1)(a) & (c) above provided that the fund’s holding in the component securities does not exceed their respective weightings in the underlying index.
 
4. Policy on Gearing Ratio: The Fund shall not borrow cash or other assets (including the borrowing of securities within the meaning of the Guidelines on Securities Borrowing and Lending) to finance its business.