1. The Retail Investor AIF shall not enter into efficient portfolio management transactions if such transactions could result in a change to the Retail Investor AIF's declared investment objective or add substantial supplementary risks in comparison to the general risk policy as described in its sales documents.
Repo contracts and Securities Lending
2. Repo contracts and securities lending may only be effected in accordance with normal market practice.
3. Collateral obtained under a repo contract or securities lending arrangement must, at all times, meet with the following criteria:
(a) Liquidity: Collateral must be sufficiently liquid in order that it can be sold quickly at a robust price that is close to its pre-sale valuation;
(b) Valuation: Collateral must be capable of being valued on at least a daily basis and must be marked to market daily; and
(c) Issuer credit quality: Where the collateral issuer is not rated A-1 or equivalent, conservative haircuts must be applied.