The SEC hereby directs all Fund Managers, Custodians, Directors of Mutual Funds and Trustees of Unit Trusts to ensure the strict adherence to the spread and limitations of investment for the Collective Investment Schemes (CIS) pursuant, to section 82 of Act 929, Regulation 39 of the Unit Trusts and Mutual Funds Regulations, 2001(L.I 1695), part two of the SEC Investment Guidelines for Fund Managers, and Guidelines for Investment in Foreign Jurisdictions by Managers of Collective Investment Schemes. The following restrictions shall apply to Investments made in foreign securities:

(a) A Fund Manager of Collective Investment Schemes licensed to invest locally shall not invest more than 20% of its funds under management in foreign securities.

(b) A Fund Manager of Collective Investment Schemes licensed to invest 100% or to have substantial exposure to foreign securities is to limit their investment to 70% and retain 30% locally.

(c) Investments in foreign securities shall be in accordance with the definition of securities under section 216 of the Act.

(d) Foreign securities investments shall be allowed only in approved eligible markets as prescribed in Schedule 1, 7(2)(b) of LI 1695.

(e) Investment in foreign securities shall be made to eligible foreign markets where the Regulator in that country is a full signatory to the International Organization of Securities Commissions (IOSCO) MoU, or the Regulator in that country has an information sharing or capacity building MoU with the SEC.

Click on the link below to download the full Directive: Directive To Market Operators On Investments In Foreign Securities For The Collective Investment Schemes