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Article 8 – Redemptions in kind ⬅️ | ➡️ Article 10 – Transition provision
Article 9 - Side pockets
1.
A side pocket may take one of the following forms:
(a)
a dedicated share class of the UCITS created specifically to implement the accounting segregation of the assets whose economic or legal features have changed significantly or have become uncertain due to exceptional circumstances from the other assets of that UCITS (‘accounting segregation’);
(b)
a separate UCITS created specifically to separate the assets whose economic or legal features have changed significantly or have become uncertain due to exceptional circumstances from the other assets of that UCITS (‘physical separation’).
2.
For the purposes of the side pocket referred to in paragraph 1, point (a), new subscriptions, repurchases and redemptions in share classes other than the share class dedicated to the side-pocket shall be executed on the basis of the net asset value of the UCITS, which shall be calculated after excluding the assets that are subject to the accounting segregation. The side pocket share class shall be closed to subscriptions, repurchases and redemptions.
3.
Where a UCITS activates a side pocket as referred to in paragraph 1, point (b), the assets whose economic or legal features have changed significantly or have become uncertain due to exceptional circumstances shall remain in the original UCITS, while the other assets shall be transferred to a new UCITS, or shall be transferred through a merger into an existing UCITS in accordance with the requirements set out in Chapter VI of Directive 2009/65/EC. The original UCITS shall be closed to subscriptions, repurchases and redemptions and shall be put into liquidation. The new UCITS shall be authorised and managed in accordance with the investment strategy of the original UCITS.
4.
Upon the creation of a side pocket, each investor shall be allocated units or shares in the side pocket in proportion to their respective participation in the original UCITS.