Regulatory Alerts2020-08-26
Added
Modification to the Single Entity Limit for Country-Specific Government Bond Funds
The Monetary Authority of Singapore modifies the Code on Collective Investment Schemes to lower the minimum Sovereign Rating requirement for country-specific government bond funds to investment-grade. This change applies provided the issuer has an OECD country risk classification of 1 or 2, the debt instruments are constituents of a well-recognized international index, and the fund invests in at least six different issuances each not exceeding 30% of net asset value. Funds meeting these criteria are exempt from applying for a waiver of the single entity limit and are deemed to have met the diversification requirements for index funds.
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