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🔗 Back to Summary. 🇫🇷 French Version: 2024R2759_FR.2. Back to Summary of LVL1. Open the PDF. Direct link to EUR-LEX.

Article 1 – The use of financial derivative instruments solely for hedging purposes ⬅️ | ➡️ 760

Article 2 - Circumstances in which the life of an ELTIF is compatible with the life-cycles of each of its individual assets

When assessing whether the life of an ELTIF is compatible with the life-cycles of each of the individual assets of the ELTIF, as referred to in 2015, the manager of an ELTIF shall consider all of the following:

(a)

the liquidity profile of each of the individual assets of the ELTIF;

(b)

the liquidity profile of the ELTIF’s portfolio on a weighted basis;

(c)

the timing of the acquisition and the disposal of each of the individual assets of the ELTIF, assessed against the background of the economic life-cycle of the assets, and the life of the ELTIF;

(d)

the investment objective of the ELTIF;

(e)

where an ELTIF provides for the possibility of redemptions during the life of the ELTIF, the redemption policy of the ELTIF;

(f)

the cash management needs and expected cash-flow and liabilities of the ELTIF;

(g)

the possibility to roll over, or terminate, the exposure of the ELTIF to the individual assets of the ELTIF;

(h)

the availability of a reliable, sound, and up-to-date valuation of the assets in the ELTIF’s portfolio;

(i)

the portfolio composition and the life-cycle management of the ELTIF’s assets throughout the life of the ELTIF.