2019-Survey-Investment-Regulation-Pension-Funds OECD

ANNUAL SURVEY OF
INVESTMENT REGULATION
OF PENSION FUNDS
2019
This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and
arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its
member countries.
This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to
the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
© OECD 2019
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ANNUAL SURVEY OF INVESTMENT REGULATIONS OF PENSION FUNDS 2019
TABLE OF CONTENTS
Table 1: Portfolio Limits on Pension Fund Investment in Selected Asset Categories 7
Table 2: Portfolio Limits on Pension Fund Investment In Selected Foreign Asset Categories 90
Table 3.a: Investment limits in single issuer/issue by asset categories 149
Table 3.b: Other Quantitative Investment Regulations on Pension Fund Assets 249
Table 4: Main Changes to Pension Fund Investment Regulations During The Period 2002-2018 345
COUNTRIES INCLUDED IN THE SURVEY
OECD Countries
Australia Finland Italy New Zealand Switzerland
Austria France Japan Norway Turkey
Belgium Germany Korea Poland United Kingdom
Canada Greece Latvia Portugal United States
Chile Hungary Lithuania Slovak Republic
Czech Republic Iceland Luxembourg Slovenia
Denmark Ireland Mexico Spain
Estonia Israel Netherlands Sweden
Non-OECD Countries
Albania Egypt Kenya North Macedonia Suriname
Armenia Gibraltar Kosovo Pakistan Tanzania
Botswana Guernsey Liechtenstein Papua New Guinea Thailand
Brazil Hong Kong, China Malawi Peru Trinidad and Tobago
Bulgaria India Maldives Romania Uganda
Colombia Indonesia Malta Russian Federation Ukraine
Costa Rica Jamaica Mauritius Serbia Uruguay
Croatia Jordan Namibia Seychelles Zambia
Dominican Republic Kazakhstan Nigeria South Africa
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Background
1. This report describes the main quantitative investment regulations that pension funds are subject to in
OECD and a selection of non-OECD countries (most of which are IOPS Member countries). This report
also covers the investment rules for other pension providers (such as life insurance companies) for
Denmark, France, Korea, Latvia and Sweden among OECD countries and Jordan among non-OECD
countries. The information is as of December 2018.1
2. The survey covers all types of pension plan. Regulations may vary by type of plan (occupational/
personal, mandatory/voluntary, defined benefit (DB)/defined contribution (DC), etc.). In this respect, the
tables list the types of plan that the investment regulations apply to.
3. The information collected concerns all forms of quantitative portfolio restrictions (minima and
maxima) applied to pension funds at different legal levels (law, regulation, guidelines, etc.).
4. The survey contains five different tables:
 Table 1 contains portfolio ceilings on pension fund investment by broad asset classes. This
table indicates if the main limit applies to pension funds’ direct investments only or restricts
the total exposure of pension funds to a given asset class, including indirect investments in
this asset class through collective investment schemes. This information is specified in
brackets after the main limit. Any other relevant information or additional limits are provided
in the related “Other / Comments” section.
 Table 2 contains quantitative restrictions on foreign investment, along with the geographical
areas or markets these restrictions apply to.
 Table 3.a contains quantitative investment limits in a single issue or issuer, by type of asset
categories.
 Table 3.b contains other quantitative restrictions classified by type of regulation.
 Table 4 shows the main changes to investment regulations applying to pension funds during the
period 2002-2018.
5. Historical information about investment regulations dating back to December 2001 can be found at:
www.oecd.org/pensions/annualsurveyofinvestmentregulationofpensionfunds.htm.
Main findings
6. Most countries have quantitative limits on the investments of pension funds as of the end of 2018 (or at
the latest available date). Only nine countries do not impose any ceiling to pension fund investment for the
asset classes listed in Table 1: Australia, Belgium, Canada, the Netherlands, New Zealand, the United
Kingdom, the United States in the OECD; and Guernsey and Malawi outside the OECD area. In Australia,
even though no specific portfolio limits are prescribed, trustees must consider diversification in their asset
1. This report is based on the information provided by national authorities on the investment rules applying at
the end of 2018. No update was received for Italy, Costa Rica, Egypt, Gibraltar, Indonesia, Jordan, Kenya,
Kosovo, Malawi, Papua New Guinea, South Africa, Tanzania, Trinidad and Tobago, Uganda, Ukraine and
Zambia. Therefore, investment rules of the listed countries may have changed since the last submission of
information (and such changes would not be reflected in this report).
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allocations. In the United States, employer-related loans are not allowed, so as to avoid conflicts of
interest.
7. Investments in equities, in particular in unlisted equities, are capped in most countries regulating
investments of pension funds. There is an upper limit on equities in 20 OECD countries and 34 non-OECD
jurisdictions that are part of the survey. However, in some countries, this regulation may apply to selected
pension plans only, as it is the case for instance in Estonia, Germany and Korea. Indeed, there is no limit
on investment in equities in the voluntary system in Estonia, for Pensionsfonds in Germany, and for
personal plans in Korea. Limits apply for other types of plan in these countries: the ceiling of assets in
equities is 75% for mandatory pension plans in Estonia, 35% for German Pensionskassen (if equities are
listed, 15% otherwise), 70% for occupational DB plans in Korea. Investment limits are less stringent for
listed equities than for unlisted equities, like in Finland where there is only a limit of 10% for investments
in unlisted equities and a 50% limit for listed equities for company pension funds and industry-wide
pension funds.
8. In countries regulating investments in bonds, limits are less stringent for government bonds than for
other types of bond. For example, in Greece, pension funds cannot invest more than 70% of their assets in
corporate bonds, but do not have any restriction on government bonds. Likewise, in Hungary, there is no
limit on investment in government bonds, but there is a limit of 10% on corporate bonds, 10% on
Hungarian municipalities bonds and 25% on mortgage bonds.
9. A number of surveyed OECD and non-OECD countries set up limits or completely forbid investment
in real estate, private investment funds or loans. Direct investment in real estate is not allowed in Italy,
Japan (except for the Mutual Aid Associations), Lithuania, Mexico, Poland, Turkey, Albania, Armenia,
Colombia, Costa Rica, Croatia, Hong Kong (China), India, Kazakhstan, Kosovo, the Maldives, Nigeria, the
Republic of North Macedonia (hereafter ‘North Macedonia’), Pakistan, Peru, Romania, Thailand and
Uruguay. However, in most of the countries previously listed, only direct investment is prohibited and
indirect investments in real estate through bonds and shares of property companies, or real estate
investment trusts are allowed for instance.
10. Limits may vary by type of funds, like in Latin American countries. In Chile, Mexico, Colombia and
Peru, individuals can join different types of fund with different levels of risks. The share of assets that
pension funds can invest in equities is the lowest in the most conservative funds (limit of 5% for instance
in Chile). This limit rises for riskier funds. Conversely, conservative funds are the ones that can invest the
most in bonds, like in Chile where the fund E can invest up to 80% of its portfolio in government bonds.
11. There are also floors on investments of pension funds in certain asset classes in some countries. In
Israel, new pension funds and old pension funds must invest at least 30% of their portfolios in earmarked
bonds. In New Zealand, the KiwiSaver default investment fund option is required to invest at least 15% of
the portfolio in growth assets.2 In Pakistan, a pension fund includes at least three sub-funds: equity, debt
and money market sub-funds. Equity sub-funds must invest at least 90% of the portfolio in listed equity
securities. In Zambia, no less than 5% of assets should be allocated to equities (but no more than 70%).
There are also minimum limits of investments in equity in Chile and Colombia.
12. The legislation on investment regulation also includes specific rules on investments abroad and even
prevents pension funds from investing abroad in a few non-OECD countries (Dominican Republic, Egypt,
India and Nigeria, see Table 2). Investment abroad may also only be allowed in selected geographical
areas, such as the OECD, the European Union regulated markets, or the European Economic Area (EEA).
2. The KiwiSaver default investment fund option is required to invest at least 15% of the portfolio in growth
assets (floor), but they cannot invest more than 25% of the portfolio in such assets (ceiling).
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Some countries (e.g. Finland, Iceland, Israel, Mexico, Norway, Poland, Portugal, the Slovak Republic),
permit investments in countries considered as "eligible" and, in some cases, allow unlimited investment if
they are made in these eligible countries.
13. Restrictions may be set on the geographical location for investments in assets that are not traded on
regulated markets (e.g. Spain). Spain does not set any restriction on pension fund investments in assets
traded in any regulated markets worldwide. However, if Spanish pension funds are willing to invest in
assets that are not traded on regulated markets, they can only invest in securities issued by companies
based in the OECD.
14. Two main types of limit on foreign investments can be observed in the surveyed countries: i) specific
limits by type of asset class; ii) restriction on the overall share of foreign assets. For example, North
Macedonia sets up specific limits on foreign investments by asset class. For instance, pension funds of this
country cannot hold more than 30% of their portfolio in debt securities of non-state foreign companies or
banks of selected countries, nor more than 50% in bonds and other securities issued by foreign
governments and central banks of EU and OECD members. In Chile, while each type of fund has a specific
limit for investment abroad (from 35% for fund E to 100% for fund A), the share of assets of the
aggregated five types of fund must not exceed 80% of the combined total assets.
15. The survey also collects information on investment limits in single issuer by type of asset class (see
Table 3.a.), and on other quantitative investment regulations related to self-investment, foreign currency
exposure, derivatives and concentration (see Table 3.b).
16. Some countries do not set specific investment limits in a single issue or issuer. This is the case of
Australia, Belgium, Ireland, Japan, the Netherlands, New Zealand, the United Kingdom, the United States
among OECD countries, and of Gibraltar and Malawi among non-OECD jurisdictions for example.
Nonetheless, in Australia, trustees must consider diversification in making asset allocation. In the
Netherlands, diversification is required, but there are no quantitative rules. In Japan, the law stipulates that
each pension fund or company should endeavour to avoid concentration of investments in a specific asset
category.
17. Self-investment is limited or forbidden in most OECD and non-OECD countries. In Sweden, there is
no limit for the friendly societies but occupational retirement funds shall not invest more than 10% in the
undertakings belonging to the same group as the sponsor of the plan.
18. Over time, most of the legislative changes regarding investment regulation of pension funds led to a
softening of the limits and allowed more discretion to pension funds. Indeed, Table 4 shows this, as well as
previous reports and the online database compiling all the information from December 2001
(http://www.oecd.org/pensions/private-pensions/annualsurveyofinvestmentregulationofpensionfunds.htm).
For example, Canada eliminated the limit on foreign investments (30% of the portfolio) in 2005, and
investment limits became less stringent for example: in Mexico over the years (allowing investments in
more categories, raising investment limits or expanding the list of eligible countries for foreign investments
like in 2017), or in Peru which raised progressively the limit for foreign investments over the years. In
2018, rules were further loosened in a number of countries, such as Israel (increase of the investment
ceiling for commercial loans not rated or rated below BBB-), Korea (investments in REITS listed on
regulated markets allowed for occupational DB plans), Portugal (withdrawal of the 55% investment limit
in equities for personal retirement saving schemes (PPR) financed through pension funds).
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Table 1: Portfolio Limits on Pension Fund Investment in Selected Asset Categories
Bills and bonds Bonds issued Retail Private

Country Funds / Plans Equity Real Estate issued by public by the private Investment Investment Loans Bank deposits Other comments
administration sector Funds funds
Australia - Occupational trustee 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) In addition to the prohibition
managed on loans or financial
superannuation fund: Other / Other / assistance to members and
corporate; Comments: Comments: - their relatives,
- Occupational trustee Loans or superannuation funds are
managed financial also not permitted to invest
superannuation fund: assistance to more than five per cent of
industry members and their assets in in-house
- Trustee managed their relatives assets. That is, funds are
public offer are not not permitted to make
superannuation fund: permitted. investments in, or loans to,
retail funds an employer-sponsor, a
- Trustee managed member or their associates,
superannuation fund: subject to some exceptions.
self-managed
superannuation fund Australia does not prescribe
(SMSFs) specific portfolio limits.
- Public sector However, trustees are
occupational pension required to ensure that
plans, often investment options offered
compulsory for public to each beneficiary allow
sector employees adequate diversification.
- Trustee managed
superannuation fund: In addition, MySuper
approved deposit fund products (default products)
must have a single,
diversified or lifecycle,
investment strategy.
Austria - occupational pension - Limit for 100% (Total 100% (Total 70% (Total 100% 100% 100% 100% (Total - The Pensionskassen may
funds commitments exposure) exposure) exposure) exposure) operate several investment
(Pensionskassen) without guarantee Other / Other / and risk sharing groups
= 70%; Other / Other / Comments: Comments: Other / ("support funds"), provided
- Limit for Comments: Comments: The Limits apply to Limits apply to Comments: max. that they are operated for at
commitments with Investments in limit is common the underlying the underlying 25% held at a least 1,000 beneficiaries
guarantee = 50%; debt securities, with the asset components of components of single bank each.
- Limit for shares shares and class "equity". investment investment group - There is a look through
not traded on a securities funds. funds. requirement on the
regulated market = equivalent to underlying investments of
30% shares which are funds when assessing
not admitted to quantitative investment
trading on a limits. A "look through" of
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regulated market underlying investments in
shall be limited funds need not be
to a maximum of conducted if (1) the
30 per cent of investment in the fund is
the assets. less than 5% of total assets
or (2) in the case of a fund
of fund the sub-fund is less
than 5% of total assets of
the fund of fund.
Belgium - IORP (institutions de 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) -
retraite professionnelle)
Canada - Occupational 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct)
registered pension
plans (RPPs): trusteed
pension funds
Chile - All AFPs, Fund A 80% (Direct) 10% (Direct) 40% (Direct) 30% (Direct) 100% (Direct) 0% (Direct) 10% (Direct) 60% (Direct) There are limits per fund for
all restricted investments,
Other / Comments: Other / Other / Other / Other / Other / Other / including certain bonds,
The limit refers to Comments: The Comments: The Comments: The Comments: * No Comments: The Comments: shares, etc.
variable income limit refers to limit refers to limit refers to limit for Retail limit refers to There is no
which is defined as Alternative government convertible Investment Alternative specific limit for minimum limit for equity
anything that is not Assets, including bonds. bonds (local and Funds, which Assets, including
investment in (variable income securities)
rated as fixed Real estate (not foreign). may be fixed or Syndicated bank deposits. = 40%;
income. It includes residential) for variable income. Loans. Also This limit is the Also, in terms of equity, it is
public limited rent (including * There is a 2% these assets complement of necessary that: Fund A >
company shares, leasing limit for contain Private minimum Fund B > Fund C > Fund D
real estate public contracts). Also, committed Equity, Private percentage that > Fund E
company shares, these assets payments for Debt, Co- should be
mutual fund shares contain Private closed-ended investment, etc.invested in
and investment Equity, Private funds. variable income
fund shares, etc. Debt, Co- Since November and hence the
investment, etc. 2017, AFPs are maximum that
allowed to lend could be
money to an invested in fixed
entity through income assets
Syndicated categories like
Loans. this.
Chile - All AFPs, Fund B 60% (Direct) 8% (Direct) 40% (Direct) 30% (Direct) 100% (Direct) 0% (Direct) 8% (Direct) 75% (Direct) There are limits per fund for
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which is defined as Alternative government convertible investment Alternative specific limit for minimum limit for equity
Loans. this.
Chile - All AFPs, Fund C 40% (Direct) 6% (Direct) 50% (Direct) 10% (Direct) 100% (Direct) 0% (Direct) 6% (Direct) 85% (Direct) There are limits per fund for
anything that is not Assets, and bonds. bonds (local and Funds, which Assets, and investment in (variable income securities)
rated as fixed includes Real foreign). may be fixed or includes bank deposits. = 15%;
income. It includes estate (no variable income. Syndicated This limit is the Also, in terms of equity, it is
public limited residential) for * There is a 2% Loans. Also complement of necessary that: Fund A >
company shares, rent (including limit for these assets minimum Fund B > Fund C > Fund D
real estate public leasing committed contain Private percentage that > Fund E
company shares, contracts). Also, payments for Equity, Private should be
mutual fund shares these assets closed-ended Debt, Co- invested in
and investment contain Private funds. investment, etc.variable income
fund shares, etc. Equity, Private and hence the
Debt, Co- Since November maximum that
investment, etc. 2017, AFPs are could be
allowed to lend invested in fixed
money to an income assets
entity through categories like
Syndicated this.
Loans.
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Chile - All AFPs, Fund D 20% (Direct) 5% (Direct) 70% (Direct) 10% (Direct) 100% (Direct) 0% (Direct) 5% (Direct) 95% (Direct) There are limits per fund for
which is defined as Alternative government convertible investment Alternative specific limit for
investment in minimum limit for equity
rated as fixed Real estate (not foreign). may be fixed or Syndicated bank deposits. (variable income securities)
income. It includes residential) for variable income. Loans. Also This limit is the = 5%;
public limited rent (including * There is a 2% these assets complement of Also, in terms of equity, it is
company shares, leasing limit for contain Private minimum necessary that: Fund A >
real estate public contracts). Also, committed Equity, Private percentage that Fund B > Fund C > Fund D
company shares, these assets payments for Debt, Co- should be > Fund E
Loans. this.
Chile - All AFPs, Fund E 5% (Direct) 5% (Direct) 80% (Direct) 3% (Direct) 100% (Direct) 0% (Direct) 5% (Direct) 100% (Direct) There are limits per fund for
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Loans. this.
Czech - Transformed pension 70% (Direct) 10% (Direct) 100% (Direct) 70% (Direct) 70% (Direct) 70% (Direct) 5% (Direct) 100% (Direct) According to applicable
Republic schemes (3rd pillar) legislation at most 5% of a
Other / Comments: Other / Other / Other / Other / Other / transformed pension fund’s
- Limit on equity Comments: - Comments: Limit Comments: This Comments: - Comments: - assets may be placed
traded on OECD Limit for bonds for the bonds limit refers to Limit for private Limit for deposits elsewhere than categories
regulated markets and money issued by the open-ended investment funds and deposits of assets listed in law. It
= 70%; market private sector funds traded on traded on OECD certificate in means that the mentioned
- Limit on non- instruments of traded on OECD OECD regulated markets = 70%; OECD banks = 5% limit is common to all
OECD equity = 5% OECD members market = 70% market. - Limit for other 100%; relevant asset categories in
or international Limit for the Other retail private - Limit for other this questionnaire. Pension
institutions bonds issued by investment funds investment funds banks = 0% management companies
Czech Republic the private = 5% = 5% must always carry out their
belongs to = sector non- activities with professional
100%; traded on OECD care and have to prefer the
- Limit for bonds market = 5% best interest of the
and money participants.
market
instruments of
other
countries=70%
Czech - Participation funds: 0% (Direct) 0% (Direct) 100% (Direct) 30% (Direct) 30% (Direct) 0% (Direct) 0% (Direct) 100% (Direct)
Republic conservative schemes
(3rd pillar) Other / Other / Other / Other /
Comments: - Comments: This Comments: This Comments: -
Limit for EU and limit refers to limit refers to Limit for
OECD member bonds of which money market regulated banks
states' bonds the rating is funds with = 100%;
and money among the best qualified rating. - Limit for other
market 5 rating banks = 0%
instruments of categories.
which the rating
is among the
best 5 rating
categories =
100%;
- Limit for other
bonds=0%
Czech - Participation funds: 100% (Direct) 0% (Direct) 100% (Direct) 100% Limit for 0% (Direct) 0%-5% (Direct) 100% (Direct)
Republic other schemes (3rd collective
pillar) Other / Comments: Other / investment funds Other / Other /
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- Limit for equity Comments: - authorized to be Comments: The Comments: -
traded on regulated Limit for bonds publically offered fund can borrow Limit for
market or traded on EU in the Czech up to 5%, regulated banks
multilateral trading regulated market Republic = 60%. however, it can = 100%;
facility verified by or EU MTF lend up to 0%. - Limit for other
the Czech National verified by Within the limit banks = 0%
Bank = 100%; CNB=100%; for the collective
- Limit for other - Limit for other investment
equities = 0%; bonds=0%; funds,
investments in
specialized
investment funds
are allowed up
to 20% but no
more than 10%
could be
invested in
securities that do
not replicate the
composition of a
financial index,
which may be
the underlying of
a derivative.
Denmark Larger Pension Funds No limit, but No limit, but No limit, but No limit, but No limit, but No limit, but No limit, but No limit, but Regulated by Solvency II:
and Life insurance Solvency II Prudent Solvency II Solvency II Solvency II Solvency II Solvency II Solvency II Solvency II Prudent Person Principle
pension providers Person Principle. Prudent Person Prudent Person Prudent Person Prudent Person Prudent Person Prudent Person Prudent Person (PPP)
Principle. Principle. Principle. Principle. Principle. Principle. Principle.
Denmark Small single company No limit, but IORP2 No limit, but No limit, but No limit, but No limit, but No limit, but No limit, but No limit, but Regulated by IORP2:
pension funds Prudent Person IORP2 Prudent IORP2 Prudent IORP2 Prudent IORP2 Prudent IORP2 Prudent IORP2 Prudent IORP2 Prudent Prudent Person Principle
Principle. Person Principle. Person Principle. Person Principle. Person Principle. Person Principle. Person Principle. Person Principle. (PPP)
Denmark ATP and LD 100% 100% 100% 100% 100% 100% 100% 100% ATP and LD have their own
laws (one for each).
Denmark Pension savings in 100% total 0% 100% 100% total 100% 100% 0% 100%
banks
Estonia - Mandatory funded 75% (Total 40% (Total 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 10% (Direct) 100% (Direct) -
pension exposure) exposure)
50% (Direct) 10% (Direct) Other / Other /
Comments: Comments: -
Other / Comments: Other / There is no Limit if listed =
- Limit for equity = Comments: 5% absolute limit, 100%;
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75%; to single but 35% to - Limit if
- Limit for property single country is unlisted= 30%
conservative funds applied.
= 0%
Estonia - Voluntary funded 100% (Total) 70% (Total 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 10% (Direct) 100% (Direct) -
pension exposure)
20% (Direct) Other / Other /
Comments: Comments: -
Other / There is no Limit if listed =
Comments: 5% absolute limit, 100%;
to single but 35% to - Limit if
property single country is unlisted= 30%
applied.
Finland - Voluntary Plans: 50% (Total 100% (Total 100% (Total 50% (Total 100% (Total 10% (Total 100% (Total 100% (Direct)
company pension exposure) exposure) exposure) exposure) exposure) exposure) exposure)
funds and industry-
wide pension funds Other / Comments: Other / Other / Other / Other /
- Limit for listed Comments: - Comments: - Comments: This Comments: -
equity = 50%; Limit for bonds Limit for bonds limit refers to Limit for
- Limit for non- issued by OECD issued by non-listed mortgage loans
listed equity = 10% government, companies on private (including
local regulated OECD investment investment in
government or markets = 50%; funds. real estates and
similar institution - Limit for bonds buildings) =
= 100%; issued by other 70%;
- Limit for other companies = - Limit for
governments = 10% subordinated
10% loans = 10%;
- Limit for loans
if the debtor or
the guarantor is
an EEA State,
municipality, a
municipal
authority, a
parish located in
an EEA State, a
deposit bank or
an insurance
company
licensed in an
EEA State or a
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bank or an
insurance
company
comparable to
the above
mentioned =
100%
Finland - earnings-related 65% (Total 100% (Total 100% (Total 100% (Total 100% (Total 65% (Total 100% (Total 100% (Direct) The limit of 65 % is not
statutory pension exposure) exposure) exposure) exposure) exposure) exposure) exposure) absolute maximum limit. A
provisions for private higher investment amount
sector workers, Other / Comments: Other / raises the solvency
seamen and self- - including equities Comments: - requirement.
employed persons and private including
investment funds equities and
private
investment funds
France - Group insurance Not applicable for Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable 100% (Direct) These limits are only
contracts for workers, these schemes for these for these for these for these for these for these applicable to the part of
PERE, Madelin since prudent schemes since schemes since schemes since schemes since schemes since schemes since assets which represent
schemes person rule applies prudent person prudent person prudent person prudent person prudent person prudent person technical provisions.
- PERP under Solvency II rule applies rule applies rule applies rule applies rule applies rule applies
under Solvency under Solvency under Solvency under Solvency under Solvency under Solvency
II II II II II II)
France Fonds de Retraite A general limit of 5% by real Limit for bonds Loans and A general limit of 30%
Professionnelle 30% applies to estate project or issued by deposits within applies to investments not
Supplémentaire investments not share on a real special purpose the same group traded in regulated markets.
(FRPS) traded in regulated estate vehicles = 5% are < 10%.
markets. instrument Limit for other
bonds = 100%
Germany - Pensionskassen 35% (Total 25% (Total 50% (Total 50% (Total 100% (Total 7.5% (Total 50% (Total 50% (Total -
exposure) exposure) exposure) exposure) exposure) exposure) exposure) exposure)
Other / Comments: Other / Other / Other / Other / Other /

- Limit for listed Comments: The Comments: The Comments: - Comments: - Comments: -
equity = 35%; total limit for bills total limit for bills Limit depends in Limit for Limit for
- Limit for unlisted and bonds and bonds what the fund alternative mortgage loans
equity = 15% (issued by public (issued by public invests (see e.g. investment funds = 50%;
administration administration limits for equity e.g. hedge funds - Limit for other
and private and private and bonds), and commodity loans = 50%
sector) is 50%. sector) is 50%. “look through related risks = - Limit for
principle” 7.5% ABS/CLN and
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applies. other
- Limit for securitisations
closed-ended altogether =
private equity 7.5%
funds = 15% - Limit for loans
to other
undertakings
domiciled in the
EEA or in a full
member state of
the OECD if
these loans are
sufficiently
secured by a
property lien or
under the law of
obligations = 5%
Germany - Pensionsfonds 100% (Total 100% (Total 100% (Total 100% (Total 100% (Total 100% (Total 100% (Total 100% (Total -
exposure) exposure) exposure) exposure) exposure) exposure) exposure) exposure)
Other /
Comments: -
Other alternative
investment funds
e.g. hedge funds
and commodity
related risks are
to be limited to a
prudent level.
Greece - Occupational 70% (Direct) 20% (Direct) 100% (Direct) 70% (Direct) 100% (Direct) 5% (Direct) Borrowing is not 100% (Direct) Limit of 5% applies to
insurance funds allowed, except Other / investments not traded in
Other / Other / Other / for liquidity Comments: regulated markets.
Comments: Comments: This Comments: reasons on a Deposits more
Provided that bills limit refers to Refers to temporarily basis. than 50,000 €,
and bonds consist UCITS. investments in Loans to per credit
of at least 6 private equity and members are not institution, cannot
different issues financial forbidden (no exceed 25% of
and each issue derivatives in specific limit). assets.
does not exceed order to facilitate
30% of total an efficient
assets. portfolio
management
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Hungary - Voluntary privately 100% (Direct) 5% (Direct) 100% (Direct) Hungarian or 100% (Direct) Derivative fund: 0% (Direct) 100% (Direct) -
managed pension foreign corporate 5%
funds Other / Comments: Other / Other / bonds: 10% Risk capital: 5% Other /
(magánnyugdíjpénztár) Listed: No limit. Comments: 5% Comments: (Direct) Comments: Max.
Non-listed equities: directly, 10% Government Other / 20% may be in
5% (both of together with bonds: No limit Comments: Other / the overall value
domestic and real estate Hungarian Hungarian and Comments: of securities and
foreign equities). investment municipalities foreign corporate Conventional deposits issued
Conventional funds. bonds: 10% and portfolio: 0% by an
portfolio: max. 10% Mortgage bonds: municipalities Balanced organisation
Balanced portfolio: 25% bonds together: portfolio: max. belonging to the
max. 40% 30% 3%, max. 2% same banking
Growth portfolio: per issuer group.
No limit Growth portfolio:
max 5%, max
2% per issuer
Hungary - Voluntary private 100% (Direct) 10% (Total 100% (Direct) Hungarian or 100% (Direct) Derivative fund: 5% (Direct) 100% (Direct) 10% privately issued shares
pension funds exposure) foreign corporate 5% of a bank which was
(önkéntes Other / Comments: Other / bonds: 10% Risk capital: 5% Other / Other / established in Hungary
nyugdíjpénztar) Listed: No limit. Other / Comments: (Direct) Comments: Max. Comments: Max.
Non-listed equities: Comments: 10% Government Other / 30% of the total 20% may be in
5% (both of directly or bonds: No limit Comments: Other / amount of the the overall value
domestic and through real Hungarian Hungarian and Comments: Risk individual of securities and
foreign equities). estate municipalities foreign corporate Capital: Max 2% account of the deposits and
investment bonds: 10% and per issuer member who cash account
funds. Mortgage bonds: municipalities took the loan. issued by an
25% bonds together: 5% of all assets organisation
30% can be given belonging to the
only to fund same banking
members. group.
Iceland Occupational private Up to 60% Up to 60% 100% Up to 80% (up to Up to 80% Up to 60% 100% (Total 100% (Total Investment limits:
pension and personal 100% in covered exposure) exposure) C+D+E+F<=80%
pension bonds) Retail D+E+F<=60%
investments Other / F<=10%
funds classified Comments: With: C: Bonds issued by
as UCITS <80% Loan needs to banks and insurance
be collateralized. companies – unit shares in
Non UCITS Total Loan-to- CIS classified as UCITS
<60% Value (LTV) D: Corporate bonds – bonds
75% of market issued by non-UCITS CIS
value of a E: Equity shares – unit
residential shares in non-UCITS CIS –
16
housing, real estate
otherwise LTV F: Derivatives – other
50% of the real financial instruments
estate’s market
value. Derivatives: Derivatives may
not exceed 10% of total
assets.
Ireland - Occupational pension 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) Less than 50% 100% (Direct) There are no restrictions on
plans (Direct) the types of loan that
Other / Other / pension schemes can invest
Comments: Limit Comments: Limit Other / in. However, assets must be
on unquoted on private Comments: Limit invested predominantly in
investments = investment funds on loans = 50% regulated markets (in this
50% of total = 50% of total of total assets case “predominantly” means
assets for assets for for schemes with at least 50% of the assets).
schemes with schemes with more than 100 Investments which are not
more than 100 more than 100 members in regulated markets should
members members be kept to a prudent level.
Israel - old pension funds 100% (Direct) 15% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) Old pension funds are
- new pension funds private sector defined-
- general pension funds Other / benefit pension plans
Comments: Limit established until 1999. New
for commercial pension funds are private
loans that are sector defined-contribution
rated less than pension plans established
BBB- or non- after 1995. The new
rated = 5% pension funds and the old
pension funds must invest
30% in earmarked bonds,
and the remaining has no
limit.
Italy - Contractual pension 100% (Direct) Direct 100% (Direct) 100% (Direct) 100% (Direct) 20% (Direct) Not allowed 100% (Direct) These limits reflect the new
funds (fondi pensione investment is not investment regulation that
negoziali) Other / Comments: allowed. Other / Other / Other / Other / Other / has been issued in 2014,
- Open pension funds Limit of 30% Comments: Limit Comments: Limit Comments: This Comments: A Comments: relaxing some quantitative
(fondi pensione aperti) applies to total Other / of 30% applies of 30% applies limit applies to 20% limit applies According to the restrictions and putting
- Pre-existing pension investments in real Comments: A to total to total investments in to investments in fund's greater emphasis on the
funds (fondi pensione estate funds, 20% limit applies investments in investments in UCITS funds real estate investment adequacy of pension funds'
preesistenti) private investment to investments in real estate real estate funds. policy organisational structure and
funds and real estate funds, private funds, private Limit of 30% risk monitoring systems with
securities not funds. investment funds investment funds applies to total respect to their investment
traded in regulated Limit of 30% and securities and securities investments in policy.
17
markets applies to total not traded in not traded in real estate
investments in regulated regulated funds, private
real estate markets markets investment funds
funds, private and securities
investment funds not traded in
and securities regulated
not traded in markets
regulated
markets
Japan - The Employees' 100% (Direct) 0% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 0% (Direct) 100% (Direct) -
Pension Fund (EPF)
(kosei nenkin kikin)
- Defined benefit
corporate pension
funds (kakutei kyufu
kigyo nenkin)
- Corporate defined
contribution
funds(kakutei
kyoshutsu
nenkin[kigyo-gata])
- Individual defined
contribution funds
(kakutei kyoshutsu
nenkin [kojin-gata])
- National pension
funds (kokumin nenkin
kikin)
Japan - Mutual aid 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct)
associations (MAAs)
Other / Other /
Comments: Comments:
Approval of the Each
minister in Association can
charge of the grant a loan to
Mutual Aid other accounts
Associations is within the same
needed. Association (e.g.
from pensions
account to
operating
18
account).
Korea - Personal pension 100% (Direct) 25% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct)
insurance
Korea - Personal pension 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) The types of personal
trust pension including trusts and
investment funds have no
restriction on these limits.
Korea - Defined benefit (DB) Up to 70% (Total Investment in 100% (Direct) Up to 70% (Total Up to 70% (Total Up to 70% (Total 0% (Direct) 100% (Direct) A+B+C+D <=70%
Retirement pension exposure) REITs listed on exposure) exposure) exposure) A=Equity
plans Other / Comments: regulated market Other / B=Bonds issued by the
- Defined benefit (DB) - Limit for listed is allowed (up to Comments: - Other / Other / private sector (including
Retirement insurance / equity = 70%; 70%). Limit for Comments: - Comments: - REITS)
Retirement trust - Limit for unlisted Government Limit for Limit for All C= Retail investment funds
equity = 0%. Bonds, corporate bonds funds with less (including REITS)
municipal rated as than 40% in D=Private investment funds
Bonds, Special investment relative
Bonds rated as grade BBB- or proportion of
investment higher = 70%; equity = 100%
grade BBB- or - Limit for
higher = 100%; corporate bonds
- Limit for rated below
Government BBB- = 0%;
Bonds,
municipal
Bonds, Special
Bonds rated
below BBB- =
0%;
Korea - Defined contribution 0% (Direct) 0% (Direct) 100% (Direct) Up to 70% (Total Up to 70% (Total 0% (Direct) 0% (Direct) 100% (Direct)
(DC) Retirement exposure) exposure)
pension plans Other /
- Defined contribution Comments: - Other / Other /
(DC) Retirement Limit for Comments: - Comments:
insurance / Retirement Government Limit for Limit for All
trust Bonds, corporate bonds funds with less
municipal rated as than 40% in
Bonds, Special investment relative
Bonds rated as grade BBB- or proportion of
investment higher = 70%; equity = 100%
grade BBB- or - Limit for Limit for Target
higher = 100%; corporate bonds date fund =
19
- Limit for rated below 100% (maximum
Government BBB- = 0%; Equity
Bonds, Investment=80%
municipal )
Bonds, Special
Bonds rated
below BBB- =
0%;
Latvia State funded pensions 75% (Total 0% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 15% (Direct) 0% 100% (Direct) At least 75% of all
(mandatory) exposure) investments in financial
Other / Other / Other / instruments shall be
Comments: - Comments: Comments: invested in securities or
Listed bonds UCITS non-UCITS money market instruments
only traded on a regulated
market.
Private pension funds 100% (Direct) 15% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 0% 100% (Direct) At least 70% of all
(voluntary) investments in financial
instruments shall be
invested in securities or
money market instruments
traded on a regulated
market.
Lithuania Social insurance 0% (Total 0% (Total 100% (Total 0% (Total 100% (Total 20% (Direct) 0% 100% (Total
contributions in pension exposure) exposure) exposure) exposure) exposure) exposure)
funds - conservative Other / Other /
funds Other / Comments: Comments: Other /
Comments: According to the Pension funds Comments:
Conservative law II pillar cannot borrow Pension funds
funds can invest pension funds money or invest can invest only
only to funds can invest up to to loans directly. in Deposits with
investing into 20% to non- no longer than
Bills and bonds UCITS (or 12-month term.
issued by public similar) funds.
administration. Conservative
funds can invest
only to funds
investing into
Bills and bonds
issued by public
administration.
Lithuania Social insurance 100% (Total 0% (Direct) 100% (Total 100% (Total 100% (Total 20% (Direct) 0% 100% (Total
20
contributions in pension exposure) exposure) exposure) exposure) exposure)
funds - other funds Other / Other /
Comments: Comments:
According to the Pension funds
law II pillar cannot borrow
pension funds money or invest
can invest up to to loans directly.
20% to non-
UCITS (or
similar) funds.
Lithuania Supplementary 100% (Total 0% (Direct) 100% (Total 100% (Total 100% (Total 30% (Direct) 0% 100% (Total
accumulation for exposure) exposure) exposure) exposure) exposure)
pension in pension Other /
funds Comments:
Pension funds
cannot borrow
money or invest
to loans directly.
Luxembour - Pension savings 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 0% (Direct) 100% (Direct) The Luxembourg
g companies with Comments: Not information refers to the
variable capital allowed, except pension funds governed by
(SEPCAVs) for liquidity the law of 13 July 2005
- Pension savings reasons and relating to institutions for
associations (ASSEPs) temporarily occupational retirement
provision in the form of
pension savings companies
with variable capital
(SEPCAVs) and pension
savings associations
(ASSEPs).
Luxembour - Defined benefit CAA 100% (Direct) 10% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 0% (Direct) 20% global and All values are for DB CAA
g supervised pension by issuer, except supervised pension funds.
funds Other / Other / for terms < 3 For DC CAA supervised
Comments: Comments: Not months following pension funds, CAA
Real Estate is allowed, except reception of a considers each investment
only taken into for liquidity contribution, strategy separately.
account up to reasons and preceding a
80% of the value temporarily. surrender or in
of the building Subordinated case of market
loans may be turmoil
allowed, if they
have an
21
undefined term
and if their
reimbursement
is subject to
CAA’s approval.
Mexico - All Afores, (Siefore) 0% 0% 100% (Total 0% 0% 0% 0% 100%
Basic Fund 0 exposure)
Other /
Other / Comments:
Comments: No Banks should be
investment limits classified as Tier
for debt issued, 1 according to
or guaranteed, the capitalisation
by the Mexican ratio defined by
Federal the Mexican
Government, nor Security
for the Central Exchange
Bank. Commission.
Up to 100% can Up to 5% of
be invested in AUMs for AAA;
short-term (less up to 3% of AUM
or equal to one for AA, up to 2%
year) with fixed of AUM for A, up
rate instruments. to 1% of AUM
Up to 25% can for BBB for each
be invested in counterparty.
longer term Bank deposits
(more than one are added to the
year) floating debt issued by
interest rate the bank to
instruments. compute as a
Up to 25% can single limit per
be invested in issuer.
long-term
floating interest Those AFORE
rate instruments that implement
issued by the internal credit
Mexican Deposit models
Insurance (according to the
Institute. regulation) will
be allowed to
define their own
22
issuer limits
within a
maximum of 5%
of their AUMs
(instruments
rated BBB or
more).
Mexico - All Afores, (Siefore) 10% (Total 0% (Direct) 100% (Total 100% (Total 10% for equity, 10% (Total 0% (Direct) 100% (Total Debt securities must abide
Basic Fund 1 exposure) 5% (Indirect) exposure) exposure) 5% for real exposure) exposure) minimum credit ratings with
estate, Other / the exception of those
Other / Comments: Other / Other / Other / 100% for debt Other / Comments: Other / issued or guaranteed by the
This limit is given Comments: Comments: No Comments: This (for corporate Comments: Loans are Comments: Up Mexican Federal
for direct exposure Direct exposure investment limits limit refers to the and sovereign Private equity allowed only to 5% of AUMs Government or issued by
through IPOs and in real estate is for debt issued, aggregate bonds issuer funds are through CKDs for AAA; up to the Mexican Central Bank.
secondary market not allowed. or guaranteed, exposure limits apply allowed through and CERPIs 3% of AUM for
for individual Investment in by the Mexican allowed for depending on its authorized and (private AA, up to 2% of
stocks listed in the real estate is Federal corporate bonds credit rating), listed (publicly investment AUM for A, up to
Mexican Stock only allowed Government, nor Simultaneously, 0% for offered) vehicles funds). 1% of AUM for
Exchange, as well through listed for the Central it applies a commodities named CKDs BBB for each
as for indirect securities in Bank. concentration (Total exposure) and CERPIs. counterparty.
exposure through eligible financial Up to 10% of limit for each Bank deposits
authorized markets. Indirect AUMs for state individual issuer,Other / The 10% limit are added to the
derivatives, exposure can be productive depending on its Comments: The only applies to debt issued by
authorized active through: i) enterprises rated credit rating (up limits reflect inherited the bank to
mutual funds, publicly offered BB or more. to 5% of AUMs what applies to investments compute as a
structured notes REITs (only Subnationals are for AAA; up to ETFs or mutual from other single limit per
linked to equity and through not included in 3% of AUM for funds which are Siefores. issuer.
equity ETFs or authorized this policy. AA, up to 2% of inherited from
mutual funds that indices) and AUM for A, up to limits that apply Those AFORE
replicate publicly offered 1% of AUM for to the underlying that implement
authorized equity Mexican REITs, BBB) asset class that internal credit
indices. No private called FIBRAs, conforms the models
equity exposure is (through Those AFORE ETFs or mutual (according to the
considered in this authorized that implement funds. regulation) will
limit, and neither indices or internal credit SIEFORES are be allowed to
does REITs nor individually); ii) models allowed to invest define their own
equivalent publicly offered (according to the in authorized issuer limits
vehicles. Exposure certificates of regulation) will equity, REITs or within a
may also be development be allowed to debt through maximum of 5%
acquired through capital (CKDs) define their own Exchange- of their AUMs
Special Purpose and certificates issuer limits Traded Funds (instruments
23
Acquisition of investment within a (ETFs) or mutual rated BBB or
Companies projects maximum of 5% funds. more).
(SPACs). (CERPIs) that of their AUMs
invest in real (instruments
estate; iii) rated BBB or
structured debt more).
linked to real
estate. However,
a different limit
applies to CKDs,
CERPIs (10%).
Basic Fund 2 exposure) 10% (Indirect) exposure) exposure) 10% for real exposure) exposure) minimum credit ratings with
estate, Other / the exception of those
Other / Comments: Other/Comment Other / Other / 100% for debt Other / Comments: Other / issued or guaranteed by the
This limit is given s: Direct Comments: No Comments: This (for corporate Comments: Loans are Comments: Up Mexican Federal
for direct exposure exposure in real investment limits limit refers to the and sovereign Private equity allowed only to 5% of AUMs Government or issued by
through IPOs and estate is not for debt issued, aggregate bonds issuer funds are through CKDs for AAA; up to the Mexican Central Bank.
secondary market allowed. or guaranteed, exposure limits apply allowed through and CERPIs 3% of AUM for
for individual Investment in by the Mexican allowed for depending on its authorized and (private AA, up to 2% of
stocks listed in the real estate is Federal corporate bonds. credit rating), listed (publicly investment AUM for A, up to
Mexican Stock only allowed Government, nor Simultaneously, 5% for offered) vehicles funds). 1% of AUM for
Exchange, as well through listed for the Central it applies a commodities named CKDs BBB for each
as for indirectly securities in Bank. concentration (Total exposure) and CERPIs counterparty.
through authorized eligible financial Up to 10% of limit for each Bank deposits
derivatives, markets. Indirect AUMs for state individual issuer,Other / are added to the
authorized active exposure can be productive depending on its Comments: The debt issued by
mutual funds, through: i) enterprises rated credit rating (up limits reflect the bank to
structured notes publicly offered BB or more. to 5% of AUMs what applies to compute as a
linked to equity and REITs (only Subnationals are for AAA; up to ETFs or mutual single limit per
equity ETFs or through not included in 3% of AUM for funds which are issuer.
mutual funds that authorized this policy. AA, up to 2% of inherited from
replicate indices) and AUM for A, up to limits that apply Those AFORE
authorized equity publicly offered 1% of AUM for to the underlying that implement
indices. No private Mexican REITs, BBB). asset class that internal credit
equity exposure is called FIBRAs, conform ETFs or models
considered in this (through Those AFORE mutual funds. (according to the
limit, and neither authorized that implement SIEFORES are regulation) will
does REITs nor indices or internal credit allowed to invest be allowed to
equivalent individually); ii) models in authorized define their own
vehicles. Exposure publicly offered (according to the equity, REITs, issuer limits
may also be certificates of regulation) will commodities or within a
24
acquired through development be allowed to debt through maximum of 5%
Special Purpose capital (CKDs) define their own Exchange- of their AUMs
Acquisition and certificates issuer limits Traded Funds (instruments
Companies of investment within a (ETFs) or mutual rated BBB or
(SPACs). projects maximum of 5% funds. more).
(CERPIs) that of their AUMs
linked to real
estate. However,
a different limit
applies to CKDs,
CERPIs (15%).
Basic Fund 3 exposure) 10% (Indirect) exposure) exposure) 10% real estate, exposure) exposure) minimum credit ratings with
100% for debt Other / the exception of those
Other / Comments: Other/Comment Other / Other / (for corporate Other / Comments: Other / issued or guaranteed by the
This limit is given s: Direct Comments: No Comments: This and sovereign Comments: Loans are Comments: Up Mexican Federal
for direct exposure exposure in real investment limits limit refers to the bonds issuer Private equity allowed only to 5% of AUMs Government or issued by
through IPOs and estate is not for debt issued, aggregate limits apply funds are through CKDs for AAA; up to the Mexican Central Bank.
secondary market allowed. or guaranteed, exposure depending on its allowed through (private 3% of AUM for
for individual Investment in by the Mexican allowed for credit rating), authorized and investment AA, up to 2% of
stocks listed in the real estate is Federal corporate bonds. 10% for listed (publicly funds). AUM for A, up to
Mexican Stock only allowed Government, nor Simultaneously, commodities offered) vehicles 1% of AUM for
Exchange, as well through listed for the Central it applies a (Total exposure) named CKDs BBB for each
as for indirectly securities in Bank. concentration and CERPIs. counterparty.
through authorized eligible financial Up to 10% of limit for each Other / Bank deposits
derivatives, markets. Indirect AUMs for state individual issuer, Comments: The are added to the
authorized active exposure can be productive depending on its limits reflect debt issued by
mutual funds, through: i) enterprises rated credit rating (up what applies to the bank to
structured notes publicly offered BB or more. to 5% of AUMs ETFs or mutual compute as a
linked to equity and REITs (only Subnationals are for AAA; up to funds which are single limit per
equity ETFs or through not included in 3% of AUM for inherited from issuer.
mutual funds that authorized this policy. AA, up to 2% of limits that apply
replicate indices) and AUM for A, up to to the underlying Those AFORE
authorized equity publicly offered 1% of AUM for asset class that that implement
indices. No private Mexican REITs, BBB). conform ETFs or internal credit
equity exposure is called FIBRAs, mutual funds. models
considered in this (through Those AFORE SIEFORES are (according to the
limit, neither does authorized that implement allowed to invest regulation) will
REITs nor indices or internal credit in authorized be allowed to
25
equivalent individually); ii) models equity, define their own
vehicles. Exposure publicly offered (according to the commodities or issuer limits
may also be certificates of regulation) will debt through within a
acquired through development be allowed to Exchange- maximum of 5%
Special Purpose capital (CKDs) define their own Traded Funds of their AUMs
Acquisition and certificates issuer limits (ETFs) or mutual (instruments
Companies of investment within a funds. rated BBB or
(SPACs). projects maximum of 5% more).
linked to real
estate. However,
a different limit
applies to CKDs,
CERPIs (20%).
Mexico - All Afores, (Siefore) 45% (Total 0% (Direct) 100% (Total 100% (Total 45% for equity, 20% (Direct) 0% (Direct) 100% (Total Debt securities must abide
Basic Fund 4 exposure) 10% (Indirect) exposure) exposure) 10% real estate, exposure) minimum credit ratings with
100% for debt Other / Other / the exception of those
Other / Comments: Other/Comment Other / Other / (for corporate Comments: Comments: Other / issued or guaranteed by the
This limit is given s: Direct Comments: No Comments: This and sovereign Private equity Loans are Comments: Up Mexican Federal
for direct exposure exposure in real investment limits limit refers to the bonds issuer funds are allowed only to 5% of AUMs Government or issued by
through IPOs and estate is not for debt issued, aggregate limits apply allowed through through CKDs for AAA; up to the Mexican Central Bank.
secondary market allowed. or guaranteed, exposure depending on its authorized and and CERPIs 3% of AUM for
for individual Investment in by the Mexican allowed for credit rating), listed (publicly (private AA, up to 2% of
stocks listed in the real estate is Federal corporate bonds. 10% for offered) vehicles investment AUM for A, up to
Mexican Stock only allowed Government, nor Simultaneously, commodities named CKDs funds) 1% of AUM for
Exchange, as well through listed for the Central it applies a (Total exposure) and CERPIs BBB for each
as for indirectly securities in Bank. concentration counterparty.
through authorized eligible financial Up to 10% of limit for each Other / Bank deposits
derivatives, markets. Indirect AUMs for state individual issuer, Comments: The are added to the
authorized active exposure can be productive depending on its limits reflect debt issued by
mutual funds, through: i) enterprises rated credit rating (up what applies to the bank to
structured notes publicly offered BB or more. to 5% of AUMs ETFs or mutual compute as a
linked to equity and REITs (only Subnationals are for AAA; up to funds which are single limit per
equity ETFs or through not included in 3% of AUM for inherited from issuer.
mutual funds that authorized this policy. AA, up to 2% of limits that apply
replicate indices) and AUM for A, up to to the underlying Those AFORE
authorized equity publicly offered 1% of AUM for asset class that that implement
indices. No private Mexican REITs, BBB). conform ETFs or internal credit
equity exposure is called FIBRAs, mutual funds. models
26
considered in this (through Those AFORE SIEFORES are (according to the
limit and neither authorized that implement allowed to invest regulation) will
does REITs nor indices or internal credit in authorized be allowed to
equivalent individually); ii) models equity, define their own
vehicles. Exposure publicly offered (according to the commodities or issuer limits
may also be certificates of regulation) will debt through within a
acquired through development be allowed to Exchange- maximum of 5%
Special Purpose capital (CKDs) define their own Traded Funds of their AUMs
Acquisition and certificates issuer limits (ETFs) or mutual (instruments
Companies of investment within a funds. rated BBB or
(SPACs). projects maximum of 5% more).
linked to real
estate. However,
a different limit
applies to CKDs,
CERPIs (20%)
Netherland - Sector- or industry- No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit -
s wide pension plans
- Company pension
funds
- Pension funds for
professions
- Other pension funds
- Pension funds not
under supervision
New - Superannuation 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) KiwiSaver Default
Zealand registered schemes investment fund option
- KiwiSaver within an Appointed
KiwiSaver Scheme since
inception (1 July 2007) are
required to invest not less
than 15% or more than 25%
of default members’ assets
in growth assets.
“Growth assets” refer to
shares and property. By
contrast, “income assets”
refer to cash and bonds.
27
Norway - Pension funds 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 10% (Direct) 5% (Direct) 100% (Direct) Unlisted shares are limited
(pensjonkasser): to 10% cf. information under
private pension funds, Other / Comments: Other / Other / "equity". In addition, it may
municipal pension - Limit for listed Comments: This Comments: This be invested in unlisted
funds companies in limit refers to limit refers to shares in companies without
OECD/EU unlisted shares unsecured debt which operates
countries = 100%; and special loans. infrastructure business up to
- Limit for listed funds (hedge 5%.
shares outside funds) etc.
OECD/EU, unlisted
shares, private
equity and "special
funds" (hedge
funds etc.)… =
10%
Poland - Open pension funds 100% (Direct) 0% (Direct) Treasury bonds 40% (Direct) 15% (Direct) 0% (Direct) 1.5% (Direct) 20% (Direct)
(OFE) not allowed;
Limit for Other / Other /
municipal bonds Comments: - Comments: -
= 40% (Direct) Limit for Limit for open-
corporate bonds end funds =
= 40%; 15%;
- Limit for - Limit for
mortgage bonds closed-end
= 40%; funds = 10%
- Limit for non-
listed mortgage
bonds =15%
Poland - Employee pension 100% (Direct) 0% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 0% (Direct) 1.5% (Direct) 100% (Direct) -
funds (PPE)
Other /
Comments: -
Limit for
corporate bonds
= 40%;
- Limit for
mortgage bonds
= 40%;
- Limit for non-
listed mortgage
bonds =15%
28
Portugal - Closed pension funds 100% (Total 100% (Total 100% (Total 100% (Total 100% (Direct) 100% (Direct) 100% (Total 100% (Total -
- Open pension funds exposure) exposure) exposure) exposure) exposure) exposure)
Other / Other /
Comments: - Comments: No
Limit for specific limit for
investment in private
non-harmonized investment funds
investment funds but investment in
(that do not non-harmonized
comply with investment funds
Directive is limited to 10%
2014/91/EU) =
10%
Portugal - Personal retirement 100% (Total 20% (Total 100% (Total 100% (Total 100% (Direct) 100% (Direct) 20% (Total 20% (Total -
saving schemes (PPR) exposure) exposure) exposure) exposure) exposure) exposure)
financed through Other / Other /
pension funds Comments: - Comments: No
Limit for specific limit for
investment in private
non-harmonized investment funds
investment funds but investment in
(that do not non-harmonized
comply with investment funds
Directive is limited to 5%.
2014/91/EU) =
5%
Slovak - Privately managed 0% (Not allowed) the mortgage 100% (Direct) 100% (Direct) 20% (Direct) 0% 0% 10% (Direct) -
Republic mandatory pension bonds - not more
system - Bonds than 50% of the Other / Other / Other / Other /
Guaranteed Fund net asset value Comments: - Comments: This Comments: Comments: Not
(Direct) Limit for bonds = limit refers to Pension fund’s more than 10%
100%; open-ended assets may not of the net asset
Other / - Limit for mutual funds = be used to value of a
Comments: Not mortgage bonds 20%. provide loans. pension fund
more than 10% = 50% may be
of the net asset accounted for by
value of a funds held in
pension fund current and
shall be deposit accounts
accounted for by with one bank or
mortgage bonds branch of a
issued by one foreign bank
29
bank, or by
securities where This limit does
they are issued not apply to
by one foreign funds in current
bank that has its accounts held
registered office with the
in a Member depositary
State and their
par value and
yields are
covered by the
bank's mortgage
loan claims.
Slovak - Privately managed 80% (Direct) the mortgage 80% (Direct) 80% (Direct) 20% (Direct) 0% 0% 10% (Direct) - Assets of pension funds in
Republic mandatory pension bonds - not more non-guaranteed fund may
system - Equity Non- than 50% of the Other / Other / Other / Other / include also
Guaranteed Fund net asset value Comments: - Comments: - Comments: Comments: Not a) Shares/units of an
(Direct) Limit for bonds = Limit for Pension fund’s more than 10% open-ended investment
80%; investments in assets may not of the net asset fund or securities of a
Other / - Limit for open-ended be used to value of a foreign collective investment
Comments: Not mortgage bonds mutual funds = provide loans. pension fund undertaking or other foreign
more than 10% = 50% 20%; may be collective investment
of the net asset - Limit for accounted for by undertaking where their
value of a investments in funds held in value is linked exclusively to
pension fund ETFs = 50% (if current and the value of a precious
shall be not tracking deposit accounts metal or index of precious
accounted for by financial index) with one bank or metals ('precious metal'
mortgage bonds branch of a means gold, silver, platinium
issued by one foreign bank or palladium)
bank, or by b) Precious metal
securities where This limit does certificates
they are issued not apply to c) Derivatives which have
by one foreign funds in current as their only underlying
bank that has its accounts held instrument a precious metal
registered office with the or index of precious metals
in a Member depositary Limit: 20% of the net asset
State and their value
par value and
yields are
covered by the
bank's mortgage
loan claims.
30
Slovak - Privately managed 0% in bond the mortgage 0% in index 0% in index 20% (Direct) 0% 0% 10% (Direct) - Assets of pension funds in
Republic mandatory pension pension funds - bonds - not more pension funds - pension funds - non-guaranteed fund may
system - Other types of 100% in index than 50% of the 100% in bond 100% in bond Other / Other / Other / include also
funds - In addition to pension funds net asset value pension funds pension funds Comments: - Comments: Comments: Not a) Shares/units of an
the pension funds (one (Direct) (Direct) (Direct) (Direct) Limit for Pension fund’s more than 10% open-ended investment
guaranteed bond investments in assets may not of the net asset fund or securities of a
pension fund, and Other / Comments: Other / Other / Other / open-ended be used to value of a foreign collective investment
one non-guaranteed % depends on the Comments: Not Comments: % Comments: Limit mutual funds = provide loans. pension fund undertaking or other foreign
equity pension fund) , type of funds more than 10% depends on the for mortgage 20%; may be collective investment
pension funds of the net asset type of funds bonds = 50% - Limit for accounted for by undertaking where their
management value of a investments in funds held in value is linked exclusively to
companies may pension fund ETFs = 50% (if current and the value of a precious
establish and manage shall be not tracking deposit accounts metal or index of precious
other pension funds, accounted for by financial index) with one bank or metals ('precious metal´
and under the rules of mortgage bonds branch of a means gold, silver, platinium
each such fund issued by one foreign bank or palladium)
the pension funds bank, or by b) Precious metal
management company securities where This limit does certificates
shall either: they are issued not apply to c) Derivatives which have
a) undertake to by one foreign funds in current as their only underlying
replenish the assets of bank that has its accounts held instrument a precious metal
the pension fund (in registered office with the or index of precious metals
which case the fund is in a Member depositary Limit: 20% of the net asset
a 'guaranteed State and their value
pension fund'), or par value and
b) not undertake to yields are
replenish the assets of covered by the
the pension fund (in bank's mortgage
which case the fund is loan claims.
a 'non-
guaranteed pension
fund’
Slovak - Voluntary personal 100% (Direct) 10% - 100% (Direct) 100% (Direct) UCITS funds: 0% 0% 20% (Direct) -
Republic pension plans - shares/units of each max. 20%;
contributory pension special real- Other / non-UCITS Other / Other /
funds estate fund, not Comments: - funds: each Comments: Comments:
more than 25% Limit for bonds = max. 10% Providing of Funds held in
of the asset 100%; loans is not current and
value of a - Limit for allowed deposit accounts
supplementary mortgage bonds with one bank or
pension fund = 25% branch of a
shall be foreign bank
31
accounted for by may constitute
mortgage bonds more than 20%
issued by one of the asset
bank (Direct) value of a
supplementary
Other / pension fund
Comments: Not
more than 35% This limit does
of the asset not apply to
value of a funds in current
supplementary accounts held
pension fund with the
may be depositary
accounted for by
the sum of
investments in
transferable
securities and
money market
instruments
issued by a
bank, mortgage
bonds issued by
the same bank,
deposits held
with this bank
and the value of
counterparty risk
which this bank
represents
Slovak - Voluntary personal 0% (Not allowed) not more than 100% (Direct) 100% (Direct) 20% (Direct) 0% 0% 20% (Direct) -
Republic pension plans - pay-out 25% of the asset
pension funds value of a Other / Other / Other / Other /
supplementary Comments: - Comments: Comments: Comments:
pension fund Limit for bonds = UCITS funds: Providing of Funds held in
shall be 100%; each max. 20% loans is not current and
accounted for by - Limit for allowed deposit accounts
mortgage bonds mortgage bonds with one bank or
issued by one = 25% branch of a
bank (Direct) foreign bank
may constitute
Other / more than 20%
32
Comments: Not of the asset
more than 35% value of a
of the asset supplementary
value of a pension fund
supplementary
pension fund This limit does
may be not apply to
accounted for by funds in current
the sum of accounts held
investments in with the
transferable depositary
securities and
money market
instruments
issued by a
bank, mortgage
bonds issued by
the same bank,
deposits held
with this bank
and the value of
counterparty risk
which this bank
represents
Slovenia - Pension company 100% Max 20% direct 100% in case of 100% (Direct) 100% (Direct) 1% (Direct) for 100% in - 100%(Direct) 20% in equities, money
- Mutual pension funds - of which max. 5% Slovenian or investments in “Schuldschein” - - 20% in market instruments,
in non-publicly EEA Member venture capital when in individual deposits and structured
tradable Equity. States funds accordance with institution investments issued by
Sovereign the Regulators’ single issuer;
Bonds or third prior approval. Derivatives are allowed only
country for hedging purposes.
Sovereign
Bonds with
appropriate
guarantee, when
they are spread
between at least
6 different
issues;
- max. 30% of
the single issue
33
Spain - Pension funds: 100% (Direct) 30% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 30% (Direct) 30% (Direct) 100% (Direct)
occupational plans
- Associated plans Other / Comments: Other / Other / Other / Other / Other / Other /
- Personal plans - Limit for securities Comments: This Comments: - Comments: - Comments: Comments: The Comments: -
traded on a limit is common Limit for bonds Limit for bonds There is no limit investment in Joint limit for
regulated market = with mortgage traded on a traded on a when UCITS securities or mortgage loans
100%; loans. regulated market regulated market satisfy legal rights issued by and real estate =
- Limit for securities = 100%; = 100%; requirements. the same entity 30%;
not admitted to be - Limit for bonds - Limit for bonds Limit 30% when negotiated in the - Loans to
traded on a not admitted to not admitted to Investment Alternative Stock members are not
regulated market = be traded on a be traded on a funds don´t Market or in the permitted.
30% regulated market regulated market satisfy legal Alternative
= 30% = 30% requirements Fixed-Income
Market, as well
as the
investment in
shares and
shareholdings
issued by a
single venture
capital entity or
entity of Closed-
rate collective
investment may
reach 3 per cent
of the pension
fund asset.
Sweden - Friendly societies 0% (Direct) 100% 100% (Direct) 100% (Direct) 0% (Direct) 0% (Direct) 100% (Direct) 0% (Direct) - All limits concern assets
covering technical
Other / Other / provisions. There are no
Comments: Comments: Only limitations to free assets.
Allowed, but only loans with some
up to 4/5 or 2/3 form of
of rateable mortgage
value, guarantee or
depending on equal security
type of estate, or are allowed
70 or 60%, unless the
respectively, of debtor is the
the estate´s Swedish state or
estimated a Swedish
market value. municipality
34
Sweden - Life insurance 100% (Direct) all 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) - All limits concern assets
undertakings types of equity covering technical
when Solvency II If Solvency II If Solvency II provisions. There are no
regulations apply to does not apply does not apply limitations to free assets.
investments (due to size of (due to size of The prudent person
the undertaking) the undertaking) principle of IORP applies.
If Solvency II does the following the following The prudent person
not apply to limit applies: limit applies: principle of Solvency II may
investments (due Limit for Limit for be applied and in that case
to size of the unquoted unquoted loans= there are no explicit limits to
undertaking) the bonds= 10% 10% investments.
following limits
apply:
- Limit for quoted
equity = 25%;
- Limit for unquoted
equity = 10%
Sweden - Providers of 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) - All limits concern assets
occupational retirement covering technical
pensions (Pension If Solvency II does If Solvency II If Solvency II provisions. There are no
funds) not apply to does not apply does not apply limitations to free assets.
investments (due to investments to investments The prudent person
to size of the (due to size of (due to size of principle of IORP applies.
pension fund) the the pension the pension
following limits fund) the fund) the
apply: following limit following limit
- Limit for quoted applies: applies:
equity = 100%; Limit for Limit for
- Limit for unquoted unquoted unquoted loans
equity = 10% bonds= 10% = 10%
Switzerlan - Second pillar pension 50% (Total 30% (Total 100% (Total 100 % (Total 100% (Direct) 100% (Direct) 50% (Total 100% (Total -
d plans (institutions de exposure) exposure) exposure) exposure) exposure) exposure)
prévoyance) Other / Other /
Other / Comments: Other / Other / Other / Comments: Comments: Other /
This limit may be Comments: This Comments: This Comments: This Overall limits as Overall limits as Comments: Limit
extended by the limit may be limit refers to total limit of well as well as for mortgage
pension funds in extended by the bonds of the 100% is subject extensions for extensions for loans = 50%
their investment pension funds in Swiss to a 10% limit each investment each investment (maximum of
regulations, if their investment Confederation, per counterparty category are category are 80% of market-
general principles regulations, if Cantons and relative to the applicable. applicable. value of the real
of prudent general municipalities. net asset value estate).
management, principles of of the respective The same
35
security and risk prudent pension fund. extension
diversification are management, possibility as for
met. In this case, security and risk equity and real
additional diversification estate applies.
disclosure are met. In this
requirements case, additional
apply. disclosure
requirements
apply.
Turkey - Occupational pension 100% (Direct) 0% (Direct) 100% (Direct) 100% (Direct) 20% (Direct) 20% (Direct) 50% (Direct) 25% (Direct) -
plan: defined benefit,
defined contribution, or Other / Other /
hybrid Comments: This Comments: This
limit is a joint limit is a joint
limit with all kind
limit with all kind
of investment of investment
funds. funds.
Turkey - Personal pension 100% (Direct) Direct 100% (Direct) 100% (Direct) 20% (Direct) 20% (Direct) 50% of funds 25% (Direct)
plans: defined investment is not allowed to give
contribution allowed. Other / Other / loans,
(unprotected) Comments: A Comments: A 10% of funds
Other / 20% limit applies 20% limit applies allowed to take
Comments: A to investments in to investments in loans. 10% in a
20% limit applies funds, like real funds, like real time period of 90
to investments in estate funds, estate funds, days. (Direct)
funds, like real ETFs and ETFs and To give loans,
estate funds, private equity private equity 100% of the
ETFs and funds etc. funds etc. loans must be
private equity collectively collectively deposited in
funds etc. settlement bank
collectively in the form of
cash and public
bills and bonds.
United - Occupational pension 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) -
Kingdom plans
United - Private pension plans 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) The limitations listed are
States - State and local those generally applicable
government employee Other / Comments: Other / Other / Other / Other / Other / Other / Other / to private sector employer
retirement funds Some limits on Comments: Comments: Comments: Comments: Comments: Comments: No Comments: sponsored plans under the
- Federal government employer Some limits on Some limits on employer-related Employee Retirement
36
retirement funds securities. real estate Limited by employer bonds. Limited by Limited by loans. Limited by Income Security Act of 1974
leased to fiduciary fiduciary fiduciary fiduciary (ERISA), which are
Limited by fiduciary employers. diversification Limited by diversification diversification Limited by diversification generally subject to fiduciary
diversification rules. fiduciary rules. rules. fiduciary rules. prudence, loyalty, and
rules. Limited by diversification diversification diversification standards.
fiduciary rules. rules. State and local plans may
diversification have applicable limits. Such
rules. plans are governed under
state and local laws,
although these laws are
often based on ERISA. The
Federal Thrift Savings Plan
limit is similarly governed by
fiduciary provisions
patterned after ERISA,
including a duty of
diversification.
Albania - Voluntary pension 0% (Direct) 0% (Direct) 100% (Direct) 30% (Direct) 30% (Direct) 0% (Direct) 0% (Direct) 100% (Direct) -
funds
Other / Other / Other / Other /
Comments: This Comments: 30% Comments: The Comments:
limit refers to in debt securities overall limit of There is a limit
bonds issued or with a rating of investment in on the
guaranteed by BBB or higher as retail investment concentration on
the Republic of rated by funds is 30% the same issuer:
Albania. Standard & and only in 20% in bank
Poor’s or Fitch, a shares or units deposits in the
rating of Baa3 or in investment same bank.
higher as rated funds licensed in
by Moody’s, a an EU Member
rating of BBB State. Albania is
(low) or higher excluded. There
as rated by are further
DBRS requirements on
(Dominion Bond these investment
Rating Service), funds licensed in
but no more than EU:
10% in a single i. the assets of
issuer. which should be
invested in the
following indices:
CAC 40, DAX,
37
FTSE 100,S&P
500, Dow Jones
Industrial
Average, Nikkei
225 (Japan),
Sensex (India),
All Ordinaries
(Australia) and
Hang Seng
Index (Hong
Kong); or
ii. the assets of
which are
invested in
bonds, Treasury
Bills, and other
securities issued
or guaranteed by
EU Member
States.
Armenia - Mandatory pension 50% (Direct) 0% (Direct) 80% (Direct) 100% (Direct) 50% (Direct) 10% (Direct) Pension funds 40% (Direct) -
fund - balanced funds may not grant
Other / Comments: Other / Other / Other / loans.
Only securities Comments: - Comments: - Comments: -
admitted to trading Total limit for Max 5% of Limit for
on Armenian or investment in assets in asset investment in
foreign regulated this asset backed open-end public
markets. category = 80%, securities, standard funds
Limitation includes -Limit for issued by registered in
equity derivatives investment in securitization Armenia or
as well. securities issued entities. foreign open-end
or guaranteed by public funds, at
Armenian Only bonds least 90% of
government, admitted to assets of which
municipal bodies trading on shall be invested
and Central Armenian or in bank deposits,
Bank of Armenia foreign regulated government
= 50%; markets. bonds, listed
- Limit for securities or
investment in other liquid
securities issued assets = 50%;
or guaranteed by - Limit for
38
foreign investments in
governments or other funds =
foreign central 10% (see limits
banks =40%; on private
investment
funds)
fund - conservative may not grant
funds Other / Comments: Other / Other / Other / loans.
markets. category = 80%, securities, standard funds
Limitation includes -Limit for issued by registered in
equity derivatives investment in securitization Armenia or
as well. securities issued entities. foreign open-end
investment
funds)
fund - fixed income may not grant
funds Other / Other / Other / loans.
Comments: - Comments: - Comments: -
Total limit for Max 5% of Limit for
investment in assets in asset investment in
this asset backed open-end public
category = 80%, securities, standard funds
39
-Limit for issued by registered in
investment in securitization Armenia or
securities issued entities. foreign open-end
investment
funds)
Armenia - Voluntary pension 75% (Direct) 0% (Direct) 80% (Direct) 100% (Direct) 50% (Direct) 5% (Direct) Pension funds 50% (Direct) -
fund may not grant
Other / Comments: Other / Other / Other / loans.
markets category = 80%, securities, standard funds
- Limit for issued by registered in
investment in securitization Armenia or
securities issued entities foreign open-end
Armenian least 90% of
government and assets of which
Central Bank of shall be invested
Armenia = 60%; in bank deposits,
- Limit for government
investment in bonds, listed
securities issued securities or
or guaranteed by other liquid
foreign assets = 50%;
governments or - Limit for
40
foreign central investments in
banks =40%; other funds = 5%
(see limits on
private
investment
funds)
Botswana All licensed Retirement Listed (excluding Local: 25% 100% Statutory bonds: 0% Local: 25% Alternative Investments:
Funds property Offshore 40% Foreign: 30% 15%
companies): 70% Property: 10% Foreign Bonds: Commodities: 10%
Unlisted: 20% 50%
Paid-up shares in
building society:
10%
Offshore : 55%
Brazil Closed pension funds Up to 70% (Direct) Up to 20% Up to 100% Up to 80% NA (Direct) NA (Direct) Up to 15% Up to 80% -
(indirectly) (Direct) (Direct) (Direct) (Direct)
through real Other / Other /
estate Other / Comments: As a Comments: No Other /
investment fund Comments: This rule, there are separate limits Comments:
and (directly) limit refers to no separate for private Loans can only
through bonds government limits for retail investment be granted to
like CCI and CRI bonds, investment funds. Limit participants of
treasuries funds. Limits are defined by the pension
defined by underlying fund.
underlying investments
investments (e.g.
(e.g. equity/bonds).
equity/bonds).
However, some
kinds of funds
have specific
limit (e.g. Private
Equity funds).
Brazil Open Pension Fund 100% (Direct) 40% (Indirect) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 25% (Indirect) 50% (Direct)
(Defined Contribution
Plans) to Qualified
Participants
Brazil Open Pension Fund 70% (Direct) 20% (Indirect) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 25% (Indirect) 50% (Direct)
Plans) to all other
Participants
41
Brazil Traditional Plans 49% (Direct) 20% (Indirect) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 25% (Indirect) 50% (Direct)
Bulgaria - Supplementary 27% (Direct) 5% (Direct) 100% (Direct) 43% (Direct) 26% (Direct) 0% (Direct) 0% (Direct) 25% (Direct) -
mandatory universal
pension funds (UPF) Other / Comments: Other / Other / Other / Other /
- Supplementary - Limit for shares Comments: - Comments: - Comments: - Comments: -
mandatory professional traded on a Limit for Limit for Limit of shares Limit for bank
pension funds (PPF) regulated market = sovereign and Corporate bonds and units of deposits in
25%; supranational (admitted to UCITS = 20% banks with a
- Limit for shares bonds = 100%; trading) = 30%; - Limit of shares minimum grade
not traded on a - Limit for - Limit for of special of credit rating =
regulated market = municipal bonds secured investment 25%;
0% = 15% corporate bonds, purpose - Limit for bank
- Limit for shares, which have to be companies for deposits in
offered under the admitted to real estate or banks without a
terms of an IPO trading on a debt minimum grade
pursuant to the regulated market securitisation = of credit rating =
legislation of the within a six 5%, but no more 0%.
member state, for months period 1% in special
which a prospectus after their issue investment
has been approved = 1%; purpose
and published, companies for
providing for the - Limit for debt
obligation for Infrastructure securitisation;
securities bonds = 10%. - Limit for shares
acceptance - Limit for bonds and/or units in
request and offered under alternative
securities to be the terms of an investment funds
admitted to trading IPO pursuant to managed by a
on a member state the legislation of person,
regulated market the member authorised
within 12 months of state, for which a pursuant to the
their issuing = 2% prospectus has requirements of
been approved Directive
and published, 2011/61/EU=1%.
providing for the
obligation for
bonds
acceptance
request and
bonds to be
admitted to
42
trading on a
member state
regulated market
within 12 months
of their issuing =
2%
voluntary pension
funds with occupational Other / Comments: Other / Other / Other /
schemes (VPFOS) - Limit for shares Comments: - Comments: - Comments: -
traded on a Limit for secured Limit of shares Limit for bank
regulated market = corporate bonds, of special deposits in
100%; which have to be investment banks with a
- Limit for shares admitted to purpose minimum grade
not traded on a trading on a companies for of credit rating =
regulated market = regulated market real estate or 100%;
0%; within a six debt - Limit for bank
- Limit for shares, months period securitisation = deposits in
offered under the after their issue 10%, but no banks without a
terms of an IPO = 2%; more 2% in minimum grade
pursuant to the - Limit for bonds special of credit rating =
legislation of the offered under investment 0%.
member state, for the terms of an purpose
which a prospectus IPO pursuant to companies for
has been approved
the legislation of debt
and published,
providing for the
the member securitisation;
obligation for state, for which a - Limit for shares
securities prospectus has and/or units in
acceptance request been approved alternative
and securities to be and published, investment funds
admitted to trading providing for the managed by a
on a member state obligation for person,
regulated market bonds authorised
within 12 months of acceptance pursuant to the
their issuing = 2%. request and requirements of
bonds to be Directive
admitted to 2011/61/EU
trading on a =2%.
member state
regulated market
within 12 months
of their issuing =
43
3%
voluntary pension
funds (VPF) Other / Comments: Other / Other / Other /
- Limit for shares Comments: - Comments: - Comments: -
traded on a Limit for secured Limit of shares Limit for bank
regulated market = corporate bonds, of special deposits in
100%; which have to be investment banks with a
- Limit for shares admitted to purpose minimum grade
not traded on a trading on a companies for of credit rating =
regulated market = regulated market real estate or 100%;
0%; within a six debt - Limit for bank
- Limit for shares, months period securitisation = deposits in
offered under the after their issue 10%, but no banks without a
terms of an IPO = 2%; more 2% in minimum grade
pursuant to the - Limit for bonds special of credit rating =
legislation of the offered under investment 0%.
member state, for the terms of an purpose
which a prospectus IPO pursuant to companies for
has been approved
the legislation of debt
and published,
providing for the
the member securitisation;
obligation for state, for which a - Limit for shares
securities prospectus has and/or units in
acceptance request been approved alternative
and securities to be and published, investment funds
admitted to trading providing for the managed by a
on a member state obligation for person,
regulated market bonds authorised
within 12 months of acceptance pursuant to the
their issuing = 2%. request and requirements of
bonds to be Directive
admitted to 2011/61/EU
trading on a =2%.
member state
regulated market
within 12 months
of their issuing =
3%
Colombia - Conservative Fund 20% (Direct) Not Allowed 50% (Direct) 30% (Direct) 5% (Direct) 0% (Direct) Not allowed 5% (Direct) With Decree 857 of 2011,
the government requires
Other / Comments: Other / Other / Other / Other / Other / each Pension Fund
44
- Limit for National Comments: - Comments: - Comments: - Comments: - Comments: This Administrator (AFP) to offer
Variable Income = Limit for National Limit for Limit for Local Private limit refers to mandatory four different
15%; Public Debt = securities issued investments in Equity Funds: national and types of funds. Conservative
- Limit for National 50%; by entities open-ended Not allowed foreign bank fund, Moderate Fund, Great
and foreign - Sublimit for supervised by Collective deposits, and Risk Fund and Programmed
variable income = Public Debt the Financial Investment - Foreign Private does not take Retirement Fund. They vary
20%; issued by Superintendence Schemes Equity Funds: into account according to the degree of
territorial entities of Colombia = without Not allowed bank deposits risk and the expectancy of
= 20%; 30%; requirements to and capital or life of their members. The
- Securities - Limit for remain in the interest expiry funds have different
issued by the securitization of schemes = 5%; dates of the last investment structures
Central Bank = mortgage - Limit for 20 days basically in variable income
100% portfolio = 15%; investments in securities and fixed income.
- Limit for open-ended
securities issued Collective
by entities not Investment
supervised by Schemes with
the Financial requirements to
Superintendence remain in the
of Colombia = schemes = 0%
60%;
- Limit for credit
linked securities
derived from
securitization
processes other
than mortgage =
5%.
Colombia - Moderate Fund 45% (Direct) 20% (Indirect), 50% (Direct) 30% (Direct) 5% (Direct) - National private Not allowed 5% (Direct) With Decree 857 of 2011,
through National equity funds that the government requires
Other / Comments: and Foreign Other / Other / Other / invest 2/3 of the Other / each Pension Fund
- Limit for National Private EquityComments: - Comments: - Comments: - fund’s value in Comments: This Administrator (AFP) to offer
Variable Income = Funds and Limit for National Limit for Limit for infrastructure: limit refers to mandatory four different
35%; Collective Public Debt = securities issued investments in 5%. national and types of funds. Conservative
- Limit for National investment 50%; by entities open-ended foreign bank fund, Moderate Fund, Great
and foreign schemes that - Sublimit for supervised by Collective - National and deposits, and Risk Fund and Programmed
variable income = invest in realPublic Debt the Financial Investment Foreign Private does not take Retirement Fund. They vary
45%; estate. Also issued by Superintendence Schemes Equity Funds: into account according to the degree of
through REITS.territorial entities of Colombia = without 10% (not bank deposits risk and the expectancy of
= 20%; 30%; requirements to including and capital or life of their members. The
Other/Comment - Securities - Limit for remain in the infrastructure interest expiry funds have different
s: issued by the securitization of schemes = 5%; and real estate dates of the last investment structures
45
The Central Bank = mortgage - Limit for private equity 20 days. basically in variable income
aforementioned 100% portfolio = 15%; investments in funds) securities and fixed income.
limit of 20% is - Limit for open-ended Fund B = Moderate Fund.
composed by securities issued Collective minimum limit for equity
the sum of the by entities non Investment (National and foreign
investments supervised by Schemes with variable income) = 20%
made in the Financial requirements to
alternative Superintendence remain in the
assets (National of Colombia = schemes = 5%
and Foreign 60%;
Private Equity - Limit for
Funds, Currency securities other
and commodity than mortgage
prices Collective backed
investment securities = 10%
schemes,
Collective
Investment
Schemes that
invest in real
estate, Hedge
Funds and
REITS)
Colombia - Great Risk Fund 70% (Direct) 25% (Indirect), 50% (Direct) 30% (Direct) 5% (Direct) - National private Not allowed 5% (Direct) With Decree 857 of 2011,
through National equity funds that the government requires
Other / Comments: and Foreign Other / Other / Other / invest 2/3 of the Other / each Pension Fund
- Limit for National Private Equity Comments: - Comments: - Comments: - fund’s value in Comments: This Administrator (AFP) to offer
Variable Income = Funds and Limit for National Limit for Limit for infrastructure: limit refers to mandatory four different
45%; Collective Public Debt = securities issued investments in 7% national and types of funds. Conservative
- Limit for National investment 50%; by entities open-ended foreign bank fund, Moderate Fund, Great
and foreign schemes that - Sublimit for supervised by Collective - National and deposits, and Risk Fund and Programmed
variable income = invest in real Public Debt the Financial Investment Foreign Private does not take Retirement Fund. They vary
70%; estate. Also issued by Superintendence Schemes Equity Funds: into account according to the degree of
through REITS territorial entities of Colombia = without 15% (not bank deposits risk and the expectancy of
= 20%; 30%; requirements to including and capital or life of their members. The
- Securities - Limit for remain in the infrastructure interest expiry funds have different
Other/Comment issued by the securitization of schemes = 5%; and real estate dates of the last investment structures
s: Central Bank = mortgage - Limit for private equity 20 days. basically in variable income
The 100% portfolio = 15%; investments in funds) securities and fixed income.
aforementioned - Limit for open-ended Fund C = Great Risk Fund.
limit of 25% is securities issued Collective minimum limit for equity
composed by by entities not Investment (Local and foreign variable
46
the sum of the supervised by Schemes with income) = 45%
investments the Financial requirements to
made in Superintendence remain in the
alternative of Colombia = schemes = 5%
assets (National 60%;
and Foreign - Limit for credit
Private Equity linked securities
Funds, Currency derived from
and commodity securitization
prices Collective processes other
investment than mortgage =
schemes, 15%
Collective
Investment
Schemes that
invest in real
estate, Hedge
Funds and
REITS)
Colombia - Programmed 20% (Direct) Through 50% (Direct) 30% (Direct) 5% (Direct) - Alternative Not allowed 5% (Direct) With Decree 857 of 2011,
Retirement Fund investments investments the government requires
Other / Comments: made in Local Other / Other / Other / (Local and Other / each Pension Fund
- Limit for National Private Equity Comments: - Comments: - Comments: - foreign private Comments: This Administrator (AFP) to offer
Variable Income = Funds and Limit for National Limit for Limit for equity funds + limit refers to mandatory four different
15%; REITs. Its limit Public Debt = securities issued investments in Collective national and types of funds. Conservative
- Limit for National should be equal 50%; by entities open-ended Investment foreign bank fund, Moderate Fund, Great
and foreign to: Alternative - Sublimit for supervised by Collective Schemes that deposits, and we Risk Fund and Programmed
variable income = investments Public Debt the Financial Investment invest in real don't take into Retirement Fund. They vary
20%; (Local and issued by Superintendence Schemes estate + REITs) account bank according to the degree of
foreign private territorial entities of Colombia = without = 10% deposits and risk and the expectancy of
equity funds + = 20%; 30%; requirements to - Local and capital or life of their members. The
Collective - Securities - Limit for remain in the Foreign Private interest expiry funds have different
Investment issued by the securitization of schemes = 5%; Equity Funds = dates of the last investment structures
Schemes that Central Bank = mortgage - Limit for 5% 20 days. basically in variable income
invest in real 100% portfolio = 15%; investments in - Private Equity securities and fixed income.
estate + REITs) - Limit for open-ended Funds that Fund D = Programmed
= 10% securities issued Collective invest in Retirement Fund.
by entities not Investment infrastructure = minimum limit for equity
supervised by Schemes with 2% (Local and foreign variable
the Financial requirements to income) = 0%
Superintendence remain in the
of Colombia = schemes = 0%
47
60%;
- Limit for credit
linked securities
derived from
securitization
processes other
than mortgage =
5%
Costa Rica Other Public Pension Credit to Investment policies of the
(Judiciary) cooperatives pension fund are approved
and savings by the Supreme Court.
banks of the
Judicial Branch
or State banking
institutions, will
be destined to
loans for
construction or
improvement of
housing and
others of a social
nature with
respect to
employees or
judicial officials.
Costa Rica Other Public Pension Minimum 30% 70% 15% (Direct)
(Teachers)
Costa Rica Other Public Pension 10% (Total 0% (Direct) 94% (Total 100% (Total 10% (Direct) 0% (Direct) 0% (Direct) 15% (Total
(Firefighters) exposure) exposure) exposure) exposure)
Other /
Comments: Other / Other /
Direct Comments: Comments:
investment is not - Limit for - Limit for private
allowed. Government and sector = 100%;
Pension funds Central Bank = - Limit for private
can invest in 59%. Mutual sector debt,
Real Estate funds investing rated AAA =
through bonds in governmental 70%;
issued by a or central bank - Limit for private
specialised trust bonds belong to sector debt,
or through bonds this category. rated AA = 50%;
issued by - Limit for other - Limit for private
48
developers, public sector debt,
banks and enterprises = rated A = 30%;
development 35% - Limit for private
banks, as long sector debt,
as the securities rated BBB = 5%
fulfil the
regulation for
debt.
Costa Rica Private Pensions 10% (Total 0% (Direct) 91.5% (Total 70% (Total 10% (Direct) 0% (Direct) 0% (Direct) 15% (Total
System: Mandatory exposure) exposure) exposure) exposure)
complementary Other /
pension funds (ROP) Comments: Other / Other /
can invest in 56.5%. Mutual sector debt,
fulfil the
regulation for
debt.
Costa Rica Private Pensions 10% (Total 0% (Direct) 91.5% (Total 70% (Total 10% (Direct) 0% (Direct) 0% (Direct) 15% (Total
System: Voluntary exposure) exposure) exposure) exposure)
Other /
Comments: Other / Other /
can invest in 56.5%. Mutual sector debt,
49
fulfil the
regulation for
debt.
Costa Rica Private Pensions 10% (Total 0% (Direct) 94 % (Total 100% (Total 10% (Direct) 0% (Direct) 0% (Direct) 15% (Total
System: Special exposure) exposure) exposure) exposure)
Occupational Other / ICE
complementary Comments: Other / Other / Complementary
pensions funds (DB: Direct Comments: Comments: Pension Fund
Lotery, FRE, ICE and investment is not - Limit for - Limit for private may make loans
DC: BCAC Ind, BCAC allowed. Government and sector = 100%; to its employees,
Col, ICT, BCR and Pension funds Central Bank = - Limit for private but currently
Hybrid: BNCR). can invest in 59%. Mutual sector debt, they don't grant
Real Estate funds investing rated AAA = loans.
fulfil the
regulation for
debt.
Croatia Mandatory pension 55% (Total 0% 100% (Direct) 50% (Total 30% (Direct) 15% (Direct) Up to 5% but 20% (Direct) Limit for total exposure to
fund exposure including exposure only through alternative investment funds
Category A indirect Other / including indirect Other / Other / repo agreement Other / (closed-end or open-end)
investments in this Comments: Limit investments in Comments: Limit Comments: - and sell-buy Comments: with a public offering (for
asset class through for government this asset class for UCITS funds Limit for back agreement, Additionally, limit retail and institutional
collective bonds through and non-UCITS alternative for a limited for cash investors) and private
investment - limit for bonds collective retail investment investment funds period of max. 3 accounts = 10% offering (for institutional
50
schemes and guaranteed by investment funds. with a private months (for (exceptionally investors only) is 15%
financial Republic of schemes and offering (for liquidity 20% for max. 14
derivatives) Croatia, EU, financial institutional purposes) days)
OECD = 30% derivatives) investors only).
- limit for
municipal bonds
= 30%
Croatia Mandatory pension 35% (Total 0% 100% (Direct) 30% (Total 30% (Direct) 10% (Direct) Up to 5% but 20% (Direct) Limit for total exposure to
fund exposure including exposure only through alternative investment funds
Category B indirect Other / including indirect Other / Other / repo agreement Other / (closed-end or open-end)
investments in this Comments: Limit investments in Comments: Limit Comments: Limit and sell-buy Comments: with a public offering and
asset class through for government this asset class for UCITS funds for alternative back agreement, Additionally, limit private offering is 10%
collective bonds through and non-UCITS investment funds for a limited for cash
investment - limit for bonds collective retail investment with a private period of max. 3 accounts = 5%
schemes and guaranteed by investment funds. offering (for months (for (exceptionally
financial Republic of schemes and institutional liquidity 10% for max. 14
derivatives) Croatia, EU, financial investors only). purposes) days)
OECD = 30% derivatives)
- limit for
municipal bonds
= 30%
Croatia Mandatory pension 0% 0% 100% (Direct) 10% (Total 10% (Direct) 0% Up to 5% but 20% (Direct)
fund exposure) only through
Category C Other / Other / repo agreement Other /
Comments: Limit Comments: Limit and sell-buy Comments:
for government for UCITS funds back agreement, Additionally, limit
bonds and other non- for a limited for cash
- limit for bonds UCITS retail period of max. 3 accounts = 10%
guaranteed by investment months (for (exceptionally
Republic of funds, provided liquidity 20% for max. 14
Croatia, EU, that through purposes) days)
OECD = 10% such investment,
- limit for pension fund
municipal bonds acquires indirect
= 10% exposure
exclusively to
bonds and
deposits
(meaning it can
invest only in
MMF and bond
retail investment
51
funds).
Croatia Open-ended voluntary 100% (Direct) 0% 100% (Direct) 100% (Direct) 10% (Direct) 5% (Direct) Up to 5% but 100% (Direct) Limit for total exposure to
pension fund only through alternative investment funds
Other / Other / repo agreement Other / with a public offering and
Comments: Limit Comments: Limit and sell-buy Comments: private offering is 5%
for UCITS funds for alternative back agreement, In the context of
and non-UCITS investment funds for a limited this limit, bank
retail investment with a private period of max. 3 deposits also
funds. offering months (for include cash on
liquidity cash account
purposes)
Croatia Closed-ended 100% (Direct) 0% 100% (Direct) 100% (Direct) 10% (Direct) 5% (Direct) Up to 5% but 100% (Direct) Limit for total exposure to
voluntary pension fund only through alternative investment funds
Other / Other / repo agreement Other/ with a public offering and
Comments: Limit Comments: Limit and sell-buy Comments: private offering is 5%
for UCITS funds for alternative back agreement, In the context of
and non-UCITS investment funds for a limited this limit, bank
retail investment with a private period of max. 3 deposits also
funds. offering months (for include cash on
liquidity cash account
purposes)
Dominican Defined Benefit and 30% (Direct) Limit of 50% (Direct) 70% (Direct) 15% 15% 0% (Direct) 75% (Direct) - 10% Limit of administrated
Republic Defined Contribution administrated Share of closed Share of closed pension fund for Multilateral
Funds. pension fund for Other / Other / end investment end investment Agencies financial
mortgage letters Comments: - Comments: - funds and funds and instruments issued to
(bonds Limit of Limit of mutual or open mutual or open finance local projects.
specifically administrated administrated end funds end funds - 5% limit of Securities
issued by pension fund for pension fund for issued by Trusts of public
financial entities
Central Bank corporate Bonds offer.
for housing) = financial = 70%; - 5% limit of securities
70%; instruments = - Limit of originated in securitization
50%; administrated processes of mortgage loan
- Limit of - Limit of pension fund for portfolios.
administrated administrated Bonds issued by
pension fund for pension fund for financial entities
housing local = 75%
development government
investment funds financial
= 20%; instruments =
- Limit of 40%;
administrated - Limit of
52
pension fund for administrated
local pension fund for
government financial
financial instruments
instruments issued by the
issued to National Bank of
develop Exports= 10%.
infrastructure
projects = 10%
Egypt Defined benefit and 15% (Direct) 10% (Direct) In 2015 it was 15% (Direct) 20% (Direct) 15% 25% (Direct) 35% (Direct) -
defined contribution 10% mortgage changed to be
pension funds Other / Comments: investment funds from 15% at Other / Other / Other / Other / Other /
This limit is a joint (indirect) minimum of Comments: This Comments: This Comments: Comments: The Comments: This
limit with mutual pension money limit was limit is a joint Open equity loan should not limit was
funds. to 70% at changed to 15% limit with mutual investment funds exceed 75% of changed in 2015
This limit was maximum. in 2015 (direct funds. Cash and investment the pension to 35% at max.
changed to 15% in investment) mutual funds holding funds rights owed to of pension funds’
2015 (direct and fixed income should not (for the member in money
investment). investment funds both) exceed case he
should not (for 15% of funds’ resigned from
both) exceed money (indirect the Fund.
20% of funds’ investment)
money (indirect
investment).
Gibraltar - Occupational pension 100% (Direct) 50% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) -
schemes
Other / Comments: Other /
All investments Comments: Limit
made in unquoted of 50% of the
securities must be value of the fund
subject to an at any one time
independent invested in
valuation made on aggregate to:-
behalf of the (1) loan capital
trustees and that or debentures of
all investments the employers or
dealings must be at connected
arm’s length and at persons;
commercial rates (2) the value of
residential
property in
53
Gibraltar owned
by the pension
fund;
(3) the value of
the property
owned by the
pension fund
and occupied by
employers for
business
purposes
Guernsey Private Occupational 100% 100% 100% 100% 100% 100% 100% 100%
Pension Schemes
Where a scheme
has adopted a
Third Party
Directed
investment
approach direct
real estate
investments are
not permitted.
Guernsey Private Personal 100% 100% 100% 100% 100% 100% 100% 100%
Pension Schemes
Where a scheme
has adopted a
Third Party
Directed
investment
approach direct
real estate
investments are
not permitted.
Hong - Mandatory provident 100% (Total 0% (Direct) 100% (Total 100% (Total 100% (Total 0% (Direct) 0% (Direct) 100% (Total Exempt authority means the
Kong, fund (MPF) schemes exposure except exposure) exposure) exposure) exposure) Hong Kong government; the
China for some collective Other / Exchange Fund established
investment Comments: Not Other / Other / Other / Other / by the Exchange Fund
schemes) allowed to invest Comments: - Comments: - Comments: - Comments: - Ordinance; a company all of
directly in real Limit for bonds Limit for bonds Limit for Limit for deposits the shares of which are
Other / Comments: estate. issued by issued by approved pooled with authorized owned by the Hong Kong
- Limit for listed Can only invest exempt exempt investment funds financial government; or a
shares = 100% indirectly authorities = authorities = which are also institutions or government, the central or
54
- Limit for unlisted through bonds 100% 100% authorized by eligible overseas reserve bank of a country or
shares = 0% and shares of - Limit for bonds - Limit for bonds the Securities banks = 100% territory, or a multilateral
property satisfying a listed on and Futures - Limit for international agency all with
companies, or minimum credit approved stock Commission of deposits in other the highest possible credit
approved REITs. rating e.g. BBB- exchanges, Hong Kong as banks = 0% rating determined by an
by S&P, Baa3 by issued or retail investment approved credit rating
Moody’s = guaranteed by a funds = 100% agency.
100%; company or - Limit for
- Limit for other corporation Approved index
bonds issued by listed on an tracking
public approved stock collective
administration = exchange = investment
0% 100% schemes =
- Limit for other 100%
corporate bonds - Limit for
= 0%. Approved
authorized unit
trusts and
mutual funds,
including REITs,
shares listed on
non-approved
stock
exchanges, and
approved other
securities = 10%
India - Central and State 15% (Direct) Direct 50% (Direct) 45% (Direct) 5% in Mutual Not permitted
Government Pension investment in Fund
- National Pension Other / Comments: Real estate is Other / Other/
System- Government - Limit for shares not permitted. Comments: - Comments: Investment in
- National Pension of the companies Indirect Limit for Listed (or equity, debt and
System-Swavalamban which are listed in Investment is government proposed to be money market
Bombay Stock permitted i.e. securities = listed in case of mutual Fund is
Exchange or through Housing 50%; fresh issue) debt permitted
National Stock Finance securities issued subject to
Exchange and on companies, by bodies maximum limit of
which derivatives CMBS/RMBS, corporate, 5%
are available or are REITs etc. including banks
part of BSE and public
Sensex or Nifty 50 financial
Index; for Units of institutions.
mutual funds Term Deposit,
55
regulated by the Units of Debt
Securities and Mutual Funds
Exchange Board of are permitted
India, which have
minimum 65% of
their investment in
shares of body,
corporates listed
on BSE or NSE;
and for
(ETFs)/Index
Funds regulated
by the Securities
and Exchange
Board of India that
replicate the
portfolio of either
BSE Sensex Index
or NSE Nifty 50
Index. ETFs issued
by SEBI regulated
Mutual Funds
constructed
specifically for
disinvestment of
shareholding of the
Government of
India in body
corporates.
India - National Pension 75% (Direct) Direct 100% (Direct) 100% (Direct) 5% in Mutual 5% 10% (Direct)
System- Private investment in Fund
Other / Comments: Real estate is Other / Other / Other/ Other /
- Limit for shares of not permitted. Comments: - Comments: - Investment in Comments: Comments:
the companies Indirect Limit for Limit for asset equity, debt and Investment in Cash held in the
which are listed in Investment is Government class C = 100%. money market SEBI Regulated schemes will be
Bombay Stock permitted i.e. Securities = Class C includes mutual Fund is ‘Alternative for trading and
Exchange or through Housing 100% listed (or permitted Investment cash flow
National Stock Finance proposed to be subject to Funds’ AIF management
Exchange and on companies, listed in case of maximum limit of (Category I and purposes only.
which derivatives CMBS/RMBS, fresh issue) debt 5%. Category II only) Cash will not
are available or are REITs etc. securities issued as defined under exceed 10% of
part of BSE by bodies the SEBI the assets of the
56
Sensex or Nifty 50 corporate, (Alternative scheme
Index; for Units of including banks Investment portfolios, except
mutual funds and public Fund) when ‘cash’ or
regulated by the financial regulations specific cash
Securities and institutions. 2012. instruments
Exchange Board of Term Deposit, (such as
India, which have Units of Debt treasury bills
minimum 65% of Mutual Funds. etc.) are
their investment in included in the
shares of body, investment
corporates listed universe
on BSE or NSE;
and for
(ETFs)/Index
Funds regulated
by the Securities
and Exchange
Board of India that
replicate the
portfolio of either
BSE Sensex Index
or NSE Nifty 50
Index. ETFs issued
by SEBI regulated
Mutual Funds
constructed
specifically for
disinvestment of
shareholding of the
Government of
India in body
corporates.
Indonesia Approved Employer 100% 20% 100% 100% (Direct) 100% 15% 10% (medium- 100% OJK regulation No 3/ 2015
Pension Funds, term notes) concerning Pension Funds
Approved Financial Other / Investment
Institution Pension Comments: This
Funds limit refers to
government
bonds. Public
Administration is
not allowed to
issue bills/bonds
57
Jamaica - Approved 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) The Pensions
Superannuation Fund (Superannuation Funds and
- Approved Retirement Other / Comments: Other / Other / Other / Other / Other / Other / Retirement Schemes)
Scheme Each equity Comments: - Comments: Comments: Comments: A Comments: A Comments: - (Investment) Regulations
investment is Limit for Government Each corporate fund/scheme is fund/scheme is Loan amount were enacted in 2006 during
subject to a investments in securities must obligation allowed to invest allowed to invest must not be Phase 1 of the pension
general real property; not meet eligibility investment is 100% of its 100% of its greater than reform programme.
concentration limit for income requirements subject to a assets in assets in 80% of the
of 5%. generation = 5%; general Deposit Deposit remaining value
- Limit in the concentration Administration Administration of the collateral.
case of the limit of 5%. Contracts and Contracts and - Loan amount to
generation of Type I Pooled Type I Pooled related party
income = 100% Funds. Funds. must not be
However Type II However Type II more than 1% of
Pooled Funds Pooled Funds fund value.
(i.e. open-ended (i.e. open-ended
investment fund, investment fund,
mutual fund, mutual fund,
collective collective
investment investment
scheme or unit scheme or unit
trust and any trust and any
investment fund, investment fund,
other than Type I other than Type I
Pooled Fund) Pooled Fund)
are subject to are subject to
the general the general
concentration concentration
limit of 5%. limit of 5%.
Jordan - Voluntary private 10% (Direct) 30% (Direct) 10% (Direct) 10% (Direct) 10% (Direct) 100% (Direct) 25% (Direct) Investments of net technical
pension plans provided provisions are limited to
by life insurance Other / Comments: Other / Other / Other / Other / certain types of
companies - Limit for Comments: - Comments: - Comments: - Comments: investments: A- Cash &
investments in Limit for Limit for Limit for Cash on hand, current accounts. B-
local non-listed investments in investments in investments in current accounts Deposits and certificates of
financial local non-listed Investment Investment and deposits at deposit. C- Bonds issued or
Instruments (bonds financial Pools and Funds Pools and Funds banks: Min. guaranteed by the
and stocks) = 10%. Instruments (except those (except those (25%) of total Jordanian Government and
(bonds and rated within rated within net technical local Treasury bonds. D-
stocks) = 10%. group one or of group one or of provisions after Foreign bonds,
a capital a capital deducting net subordinated loans and
guaranteed by guaranteed by mathematical deposits at foreign banks
58
banks or banks or provision, and listed within group one. E-
investment investment (15%) of net Local listed shares and
institutions rated institutions rated mathematical foreign shares rated within
within group within group provisions. group one, Max. (20%) of
one) =10% one) =10% the total technical provisions
for life assurance business.
F- Investment funds rated
within group one or capital
guaranteed funds by an
entity rated within group
one. G- Loan's to life
policyholders not exceeding
the surrender value of each
policy. H- Property
investments, Max. (20%) of
Net technical provisions and
Max. (30%) of Net. technical
provisions for Takaful
insurance companies.
Jordan - Voluntary private 20% (Direct) 35% (Direct) 20% (Direct) 20% (Direct) 20% (Direct) 100% (Direct) 25% (Direct) Investments of net technical
pension plans provided provisions are limited to
by Takaful insurance Other / Comments: Other / Other / Other / Other / certain types of
companies - Limit for Comments: - Comments: - Comments: - Comments: investments: A- Cash &
investments in Limit for Limit for Limit for Cash on hand, current accounts. B-
local non-listed investments in investments in investments in current accounts Deposits and certificates of
financial local non-listed Investment Investment and deposits at deposit. C- Bonds issued or
Instruments (bonds financial Pools and Funds Pools and Funds banks: Min. guaranteed by the
and stocks) = 20%. Instruments (except those (except those (25%) of total Jordanian Government and
(bonds and rated within rated within net technical local Treasury bonds. D-
stocks) = 20%. group one or of group one or of provisions after Foreign bonds,
a capital a capital deducting net subordinated loans and
guaranteed by guaranteed by mathematical deposits at foreign banks
banks or banks or provision, and listed within group one. E-
Investment Investment (15%) of net Local listed shares and
institutions rated institutions rated mathematical foreign shares rated within
within group within group provisions. group one, Max. (20%) of
one) =20% one) =20% the total technical provisions
for life assurance business.
F- Investment funds rated
within group one or capital
guaranteed funds by an
entity rated within group
59
one. G- Loan's to life
policyholders not exceeding
the surrender value of each
policy. H- Property
investments, Max. (20%) of
Net technical provisions and
Max. (30%) of Net. technical
provisions for Takaful
insurance companies.
Kazakhsta Unified accumulative 25% (Direct) 0% (not allowed) No limit 80% (Direct) 0% (not allowed) 0% (not allowed) 0% (not allowed) 50%
n pension fund
Other / Comments: Other / Other /
Limit for listed Comments: Comments:
foreign equity shall Limit on The total limit for
not exceed 20%. investment in local banks
Limit for listed bonds issued by (equities, bonds
domestic equity local and deposits)
(non-bank, non- government is shall not exceed
state-owned set from 20% to 40%.
enterprise) shall 70%. Limit on
not exceed 5%. Limit on investment in
investment in foreign bank
bonds issued by deposits shall
foreign not exceed 50%.
governments
shall not exceed
50%.
Kazakhsta Voluntary accumulative 100% (Direct) 0% 0% 100% (Direct) 0% less than 10% of 0% 100% (Direct) Since 2013, the Unified
n pension funds the Fund’s own Accumulation Pension Fund
Other / assets Other / was established in
Comments: A Comments: Max. Kazakhstan and all private
10% limit 10% may be in accumulative pension funds’
applies to the overall value assets were transferred to it.
investments in of securities and Legislation on pension
оrganisation of deposits and funds provides for the
the Republic of cash account possibility of creating
Kazakhstan, issued by an voluntary accumulative
which is not a organisation pension funds in
second-tier bank belonging to the Kazakhstan. However from
of the Republic same banking 2013 to the present, not a
of Kazakhstan group single voluntary fund has
been established
60
Kenya - Occupational 70% 30% for 90% 20% 100% (Direct) 10% 0% 30% 5% Exchange traded
Retirement Benefits immovable Other / derivative.
Schemes Other / Comments: property in Other / Comments: This Guaranteed Other / Other /
- Individual Retirement - Limit for listed Kenya Comments: This limit refers to Funds Comments: Not Comments: - Any other assets -10% but
Benefits Schemes equities in East limit refers to private company allowed – Fund Limit for Fixed pension funds must seek
- Umbrella Retirement African Community 30% for REITS East African listed bonds member may Deposits, Time approval from the Authority.
Benefits Schemes = 70% incorporated in Community approved by the assign 60% of Deposits and
- National Social - Limit for unlisted Kenya and Government capital market accrued benefit Certificates of Offshore (foreign
Security Fund (NSSF) equities = 5% approved by the Securities and authority. as a secondary Deposit = 30%; investments) -15% but
capital markets infrastructure security for a - Limit for Cash limited to bank deposits,
authority bonds issued by There is a 10% mortgage loan and Demand government securities,
public limit for non- from an Deposits = 5% listed equities and rated
institutions. listed bonds but approved corporate bonds. Offshore
Schemes with investment mortgage means outside East Africa
receiving grade credit institution. Community.
statutory rating.
contributions can Oher – 10%
invest 100%
Kosovo - Mandatory pension 100% (Direct) 0% (Total 100% (Direct) 100% (Direct) 100% (Direct) 0% (Direct) 0% (Direct) 100% (Direct)
fund exposure)
Other / Other /
Other / Comments: Not Comments: Not
Comments: Not allowed allowed
allowed
Kosovo - Voluntary pension 100% (Direct) 0% (Total 100% (Direct) 100% (Direct) 100% (Direct) 0% (Direct) 0% (Direct) 100% (Direct)
fund exposure)
Other / Other /
Other / Comments: Not Comments: Not
Comments: Not allowed allowed
allowed
Liechtenst Defined Contribution 50% (Direct) 30% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) Pension funds 100% (Direct) -
ein Plans can borrow
Defined Benefit Plans Other / Other / money or invest
Pension Funds Comments: Comments: in loans directly.
Overall limits as Overall limits as Limit for
well as limits for well as limits for investments in
each investment each investment mortgage loans
category are category are = 75%
applicable applicable. (maximum of
80% of market-
value of the real
estate).
61
Limit for
borrowing on
mortgage = 30%
for each property
Malawi Defined contributions 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) In addition to the prohibition
occupational pension on loans or financial
funds; and Defined Other / assistance to members and
Benefit occupational Comments: their relatives, Pension
pension funds Loans or funds are also not permitted
financial to invest more than five per
assistance to cent of their assets in
members and employer assets. That is,
their relatives funds are not permitted to
are not make investments in or
permitted. loans to, an employer-
sponsor, a member or their
associates. Malawi does not
prescribe specific portfolio
limits. However, trustees
must consider diversification
in making asset allocations.
Maldives - Maldives Retirement 100% (Direct) 0% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 0% (Direct) 100% (Direct) The Authority has not yet
Pension Scheme issued an Investment
(MRPS) Other / Comments: Other / Other / Other / Other / Other / Other / Other / Regulation for pension
The Maldives Comments: Comments: Comments: Comments: Comments: Comments: Not Comments: funds. We currently have
Pension Act MRPS is not Limits set by the Limits set by the MRPS has not MRPS has not allowed under Limits set by the the National Pension fund
(8/2009) prescribes allowed to invest Maldives Maldives yet started yet started the Maldives Maldives only, which is the Maldives
the types of assets in Real Estate Pension Pension investing in investing in Pension Act Pension Retirement Pension
which the MRPS under the Administration Administration Retail Private Administration Scheme; hence the
can invest and Maldives Office Office Investment Investment Office Authority has no specific
states that the Pension Act Funds Funds investment limits set for
investments should (No:8/2009) pension Funds. However,
be diversified. the pension fund
In accordance with administrator, Maldives
the Act, the Pension Administration
Maldives Pension Office (MPAO) has set
Administration investment limits in their
Office (MPAO) sets Strategic Asset Allocation
asset allocation Policy.
limits for MRPS.
Malta - Occupational - Limit for securities Limit for assets - Limit for - Limit for 100% subject to 0% 0% (Direct) No limit (i.e.
Retirement Schemes which are not in immovable securities which securities which various criteria 100%)
62
traded in or dealt property = 30% are not traded in are not traded in Other /
on a regulated subject to: or dealt on a or dealt on a Comments: A
market = 30% regulated market regulated market pension fund
Direct = 30% = 30% shall not grant
- Limit for securities investment in loans or act as
traded on regulated commercial - Limit for - Limit for guarantor on
markets = no limit immovable securities traded securities traded behalf of a third
(i.e.100%) property = 10% on regulated on regulated party. This is
markets = no markets = no without prejudice
Direct limit (100%) limit (100%) to the right of the
investment in Scheme to
residential acquire debt
immovable securities.
property = 5%
Indirect
investment in
commercial or
residential
immovable
property = 10%
Malta - Personal Retirement 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 0% for members 100% (Direct) No specific investment limits
Schemes or connected are imposed by the rules
persons other than a requirement to
100% as long as ensure that the assets of the
the loan is not to pension fund shall be
the member or properly diversified in such
connected a way as to avoid
persons accumulations of risk in the
portfolio as a whole.
Mauritius - Occupational 100% (Total 100% (Total 100% (Total 100% (Total 100% (Direct) 100% (Direct) 55% (Total 100% (Total The Rules require that a
Voluntary Pension exposure) exposure) exposure) exposure) exposure) exposure) pension scheme, when
Schemes Other / Other / making investment
- Non-occupational Comments: No Comments: The Other / decisions, shall have regard
(Personal) Voluntary specific limit. limit is subject to Comments: - to the necessity of
Pension Schemes However, have the limit of Limit for loan to diversifying its investments
to consider the unlisted equity. sponsoring in order to mitigate risks.
statutory limits employer,
on an aggregate provided that
basis, with due repayment is
regard to the fully guaranteed
63
underlying by the
assets of the Government of
funds. Mauritius = 40%;
- Limit for loan to
scheme
members =15%
Namibia All registered pension 75% (Direct) 25% (Direct) Varies per type Corporate bills, 100% (Direct) Unlisted debt or 25% (Direct) 95% A minimum 0f 1.75% and a
funds of bond bonds or equity exposure maximum of 3.5% of the
Other / Comments: Other / securities issued Other / limit = between Other / Other / market value of the assets
Maximum of 5% Comments: - Other / by or loans to an Comments: - 1.75% and 3.5% Comments: - Comments: of a fund must be invested
per issuer in the Investment in a Comments: - institution in Limit for Limit for Maximum of in unlisted investments in
Common Monetary single property Limit for bills, Namibia = 50% Insurance debentures 20% per Namibia.
Area with market or property bonds or Policies (listed and institution - A maximum of 90% of total
capitalisation of development securities issued Per institution = guaranteed = unlisted but investments in the
N$5 000 million or project is limited or guaranteed by 20% 100%. This is excluding aggregate of real estate and
less; to 5% or loans to or subject to the convertible equities.
guaranteed by Bills, bonds or supervision of debentures) or - A maximum of 95% of total
Maximum of 10% the Government securities issued Registrar of any other investment in the aggregate
per issuer in the of the Republic by Government Long term secured claims of real estate, equities,
Common Monetary of Namibia = of, or any other insurance. against natural loans and other assets.
Area with market 95%; institution in a - Limit for persons = 25%. - A maximum of 2.5% in any
capitalisation country other Insurance Provided that – other asset.
greater than N$5 Total limit for than Namibia = Linked policies - (a) a claim
000 million; bills, bonds or 50%. look through against any one
securities issued principle applies, individual is
Maximum of 5% or guaranteed by Other / disclosure of limited to 0.25%
per issuer in or loans to or Comments: - underlying (b) a claim
Namibia with guaranteed by Foreign Bills, assets subject to against any
market any statutory bonds and the allowable single company
capitalisation of body, public securities issued limits. is limited to 5%
N$500 million or enterprise, local per foreign - Housing loans
less; authority or government = to members
regional council 40% limited to 90% of
Maximum of 10% in the Republic - Foreign bills, the market value
per issuer in of Namibia = bonds and of the property.
Namibia with 50%. securities issued
market per foreign
capitalisation Per local institution = 10%
greater than N$500 authority
million; authorized by
law to levy rates
Maximum of 5% upon immovable
64
per issuer outside property = 20%.
the Common
Monetary Area in a Per regional
sector other than in council
the development authorised by
capital sector, with law to levy rates
market upon immovable
capitalisation of property = 20%.
N$5 000 million or
less; Per statutory
body or public
Maximum of 10% enterprise =
per issuer outside 20%.
the Common
Monetary Area in a
sector other than in
the development
capital sector. with
market
capitalisation
greater than N$5
000 million;
Maximum of 10%
in domestic assets
consisting of
shares acquired in
a company
incorporated
outside Namibia
(dual listed
equities)
Nigeria - Defined Contribution 30% 0% not allowed Federal Corporate: 35% 25% 10% not allowed 30% Effective Date of the
Pension Scheme - (Direct) Government Supranational: (Direct) Reviewed regulation is
Fund I (Below 50 years Bonds: 60% 20% Q2:2018. New regulation
by choice) State: 10% established multi-fund
structure for the DC based
on demography and risk
profile of members.
Infrastructure Fund global

limit of 10%
65
Nigeria - Defined Contribution 25% 0% not allowed Federal Corporate: 40% 20% 5% not allowed 30% Infrastructure Fund global
Pension Scheme - (Direct) Government Supranational: (Direct) limit of 5%
Fund II (Below 50 Bonds: 70% 20%
years by default Fund) State: 15%
Nigeria - Defined Contribution 10% 0% not allowed Federal Corporate: 45% 10% 0% not allowed 35%
Pension Scheme - (Direct) Government Supranational: (Direct)
Fund III (Default fund Bonds: 80% 20%
for 50 years and State: 20%
above)
Nigeria - Defined Contribution 5% 0% not allowed Federal Corporate: 45% 5% 0% not allowed 35%
Pension Scheme - (Direct) Government Supranational: (Direct)
Fund IV (Default fund Bonds: 80% 20%
for Retirees only) State: 20%
Nigeria - Defined Benefit Based on the Based on the Based on the Based on the Based on the Based on the not allowed Based on the -
Pension Scheme Internal Investment Internal Internal Internal Internal Internal (Direct) Internal
(Approved Existing Guidelines / Investment Investment Investment Investment Investment Investment
Schemes “AES” and Policies of the Guidelines / Guidelines / Guidelines / Guidelines / Guidelines / Guidelines /
Closed Pension Fund Individual Schemes Policies of the Policies of the Policies of the Policies of the Policies of the Policies of the
Administrators “CPFs”) as approved by the Individual Individual Individual Individual Individual Individual
Commission Schemes as Schemes as Schemes as Schemes as Schemes as Schemes as
approved by the approved by the approved by the approved by the approved by the approved by the
Commission Commission Commission Commission Commission Commission
North - Mandatory open Domestic: 30% = 0% (Direct) Domestic: Domestic: 40% = 5% = Total 1.5% (Direct) 2% (Direct) 30% (Direct) -
Macedonia pension fund Total investments 80% = Total limit Limit for bonds investments in
in shares issued Other / for bonds, bills, and other participation Other / Other / Other /
with the approval of Comments: Not and other securities issued units and shares Comments: This Comments: only Comments: This
the Securities and allowed in Real securities issued by joint-stock of open-end and limit refers to for loan to limit refers to
Exchange estate or any or guaranteed companies in the closed-end total investment improve the interest-bearing
Commission by interest in real on domestic R. Macedonia investment funds in participation liquidity of the bank-deposits in
joint-stock estate with the markets by the approved by the in the R. units and shares fund. Not banks that are
companies in exception of R. Macedonia or Macedonian Macedonia of private allowed licensed by the
Macedonia, other mortgage the National Security authorized to investment funds otherwise. National Bank of
than closed-end backed Bank of R.M = Exchange operate by the in the R. the R.M.
investment funds, securities and 80%. Commission and Macedonian Macedonia
and traded on indirect traded on Securities and authorized to 60% = Total limit
organised and investment 10% = Limit for organized and Exchange operate by for bank
supervised through open- bonds issued by supervised Commission Macedonian deposits,
securities markets end and closed- municipality in securities pursuant to the Securities and certificates of
in the Macedonia. end investment the R. markets in the R. Law on Exchange deposit, bonds,
funds. Macedonia. Macedonia. Investment Commission and and mortgage-
Foreign: 30% = Funds. which invest in backed
66
Total limit for Foreign: 50% = Foreign: 30% = shares and securities issued
investment in debt Total limit for Total limit for Foreign: 30% = participation or guaranteed by
securities of non- bonds and other investment in Total limit for units of micro, domestic banks.
state foreign securities issued debt securities of investment in small and
companies or by foreign non-state foreign debt securities of medium
banks, in shares Governments or companies or non-state foreign companies in R.
and in participation central banks + banks, in shares companies or Macedonia.
units, shares, and securities issued and in banks, in shares
other securities by non-state participation and in 5% = The total
issued by foreign units, shares, participation limit for domestic
authorized open- companies, and other units, shares, retail investment
end and closed- banks or securities issued and other funds and for
end investment investment funds by authorized securities issued domestic private
funds established in member open-end and by authorized investment
in EU members states of the EU closed-end open-end and funds.
and OECD or OECD investment funds closed-end Ex: If the fund
members. established in investment funds invests 5% in
EU members established in domestic retail
and OECD EU members investment
members. and OECD funds, the limit
members. for domestic
private
investment funds
is 0%, or, if the
fund invests
1.5% in
domestic private
investment fund,
the limit for
domestic retail
investment fund
is 3.5%
North - Voluntary open Domestic: 30% = 0% (Direct) Domestic: Domestic: 40% = 5% = Total not regulated 5% (Direct) 60% (Direct) -
Macedonia pension fund Total investments 80% = Total limit Limit for bonds investments in
in shares issued Other / for bonds, bills, and other participation Other / Other /
with the approval of Comments: Not and other securities issued units and shares Comments: only Comments: This
the Securities and allowed in Real securities issued by joint-stock of open-end and for loan to limit refers to
Exchange estate or any or guaranteed companies in the closed-end improve the interest-bearing
Commission by interest in real on domestic R. Macedonia investment funds liquidity of the bank-deposits in
joint-stock estate with the markets by the approved by the in the R. fund. Not banks that are
companies in the exception of R. Macedonia or Macedonian Macedonia allowed licensed by the
Macedonia, other mortgage the National Security authorized to otherwise. National Bank of
67
than closed-end backed Bank of R.M. Exchange operate by the R.M.
investment funds, securities and Commission and Macedonian
and traded on indirect 10% = Limit for traded on Securities and 60%= Total limit
organised and investment bonds issued by organized and Exchange for bank
supervised through open- municipality in supervised Commission deposits,
securities markets end and closed- the R. securities pursuant to the certificates of
in the Macedonia. end investment Macedonia. markets in the R. Law on deposit, bonds,
funds. Macedonia. Investment and mortgage-
Foreign: 30% = Foreign: 50% = Funds. backed
Total limit for Total limit for Foreign: 30%= securities issued
investment in debt bonds and other Total limit for Foreign: 30% = or guaranteed by
securities issued securities issued investment in Total limit for domestic banks
by the local – self by foreign debt securities investment in
government, debt Governments or issued by the debt securities
securities of non- central banks, local – self issued by the
state foreign debt securities government, local – self
companies or issued by the debt securities of government,
banks, in shares local-self non-state foreign debt securities of
and in participation government, companies or non-state foreign
units, shares, and securities issued banks, in shares companies or
other securities by non-state and in banks, in shares
issued by foreign participation and in
authorized open- companies, units, shares, participation
end and closed- banks or and other units, shares,
end investment investment funds securities issued and other
funds established in member by authorized securities issued
in EU members states of the EU open-end and by authorized
and OECD or OECD closed-end open-end and
members. investment funds closed-end
established in investment funds
EU members established in
and OECD EU members
members. and OECD
members.
Pakistan - Private pension funds minimum 90% in 0% (not allowed) maximum 10% 0% (not allowed) 0% (not allowed) 0% (not allowed) 0% (Direct) max 10% An equity sub-fund primarily
under VPS - equity listed equity in Government (Direct) invests in listed equity
sub-fund securities (Direct) securities and Other / Other / securities (listed on local
treasury bills Comments: Comments: Other / stock exchange). Minimum
Other / Comments: (Direct) equity sub-fund equity sub-fund Comments: an 90% and maximum 100%.
Investment in cannot invest in can only invest equity sub-fund Surplus funds can be
single company not Other / private bonds directly into may invest any invested in Government
to exceed 10% of Comments: this listed equity surplus (un- treasury bills and bank
68
Net assets, is for any surplus securities of a invested) funds deposits
exposure to a (un-invested) company in bank deposits
single sector not to funds. Minimum (having track with commercial
exceed 35% 90% of the sub- record of 5) banks having not
(subject to index fund shall less than A
weight) of net remain invested rating. And per
assets, surplus in listed equity bank deposit
(un-invested) funds securities. limit shall not
may be invested in exceed 10% of
treasury bills or net assets.
bank deposits.
Pakistan - Private pension funds 0% (not allowed) 0% (not allowed) Minimum 25% Maximum 50% 0% (not allowed) 0% (not allowed) 0% (not allowed) Maximum 75% A Debt sub-fund primarily
under the Voluntary and Maximum (Direct) (Direct) invests in debt securities.
Pension System (VPS) 100% in debt The weighted average time
- debt sub-fund securities issued
Other / Other / to maturity of securities held
by Federal Comments: Comments: shall not exceed 5 years. At
Government Investment limits Deposits in a least 25% shall be invested
(Direct) per security single bank shall in securities issued by
dependent on not exceed 20% Federal Government and up
Other / rating of issuer of net assets to 25% may be deposited in
Comments: In and security. For AA+ rated banks. up to 50%
case of Islamic AA rated may be invested in debt
pension funds, security- securities issued by city
the funds can be exposure limit up Government and corporate
invested in to 7.5% of net entities, subject to per
islamic bonds assets, for A+, security (depending on
issued by up to 5% of net rating of issuer and issue)
entities wholly assets and for A-
owned by up to 2.5% of net
Federal assets.
Government or Total exposure
guaranteed by to A- securities
Federal not to exceed
Government 10% and total
exposure to
securities rated
A- to A+ not to
exceed 25% of
assets of a debt
fund.
Pakistan - Private pension funds 0% (not allowed) 0% (not allowed) 0 to 100% can up to 20% 0% (not allowed) 0% (not allowed) 0% (not allowed) 100% (Direct) A Money Market sub-fund
under the Voluntary be invested in subject to per shall invest in short-term
69
Pension System (VPS) short-term debt security limits Other / debt securities and bank
- money market sub- securities issued (depending on Comments: deposits. The weighted
fund by the federal rating of security Deposits in a average time to maturity of
Government and issuer) single bank shall assets shall not exceed 90
(Direct) (Direct) not exceed 20% days (except for Islamic
of net assets. funds, where it may be up to
Other / Other / Rating of bank 6 months) and time to
Comments: no Comments: up not below A+ maturity of any security shall
limit for to 5% for not exceed 6 months
investment in securities issued (except for Islamic pension
government by corporate funds where it may be up to
securities. entities rated A+ 3 years)
or higher
Pakistan - Private pension funds minimum 70% and 0% (not allowed) minimum 10% to 0% (not allowed) 0% (not allowed) 0% (not allowed) 0% (not allowed) minimum 10% A Commodity sub-fund shall
under the Voluntary maximum 90% in remain invested (Direct) invested in commodity
Pension System (VPS) commodity future in Government. future contracts that are
- commodity sub-fund contracts listed on securities. (T- Other / traded on Pakistan
mercantile bills) (Direct) Comments: Mercantile Exchange
exchange (Direct) Surplus funds (PMEX). Minimum 70%
Other / may be invested maximum 90%. Surplus
Comments: in AA rated funds and ear-marked cash
Surplus funds banks. may be invested in short-
may be invested Furthermore, term Government securities
in Government ear-marked cash and bank deposits.
securities, or may be invested Minimum 10% has to be
bank deposits in bank deposits invested in T-bills or cash in
with AA rated (AA rated banks) bank.
banks.
Papua New The Funds invest according
Guinea to investment strategies set
out in their respective
Strategic Asset Allocations
plans (SAA).
Peru - All AFPs, Protective 0% 0% 75% (Direct) 75% (Direct) 0% 0% 0% 100% (Direct)
Fund (Fund 0)
Other / Other / Other /
Comments: - Comments: - Comments:
The main limit The main limit There is no
excludes Short- excludes Short- specific limit for
term securities term securities Bank Deposits,
and applies to all and applies to all as it is
bonds, public bonds, public considered
70
and private and private within Short
Term Securities.
Peru - All AFPs, 10% (Total 0% (Total 100% (Total 100% (Total The amount 0% 0% 40% (Total -
Conservative Fund exposure) exposure) exposure) exposure) invested in each exposure)
(Fund 1) fund is
Other / Comments: Other / Other / considered in Other /
This limit takes into Comments: - Comments: - the Equity, Fixed Comments: This
account the The main limit The main limit Income, or Short limit includes not
exposure to equity excludes Short- excludes Short- Term limit, only Bank
generated through term securities term securities according to the Deposits, but
derivatives and and applies to all and applies to all dominant asset also short term
mutual funds bonds, public bonds, public class in its securities, such
whose underlying and private. and private. portfolio. as bonds whose
investments are If the fund maturity is less
mostly equity. -This limit also -This limit also invests in assets than one year,
includes mutual includes mutual that can be mutual funds
funds whose funds whose purchased whose
underlying underlying directly by the underlying
investments are investments are pension fund investments are
mostly fixed mostly fixed and whether mostly short
income and the income and the they represent at term securities,
exposure to exposure to least 5% of the and the
fixed income fixed income total fund, such exposure to
generated generated assets are short term
through through considered securities
derivatives. derivatives. within the limits generated
by issuer and through
issue. derivatives.
Peru - All AFPs, Mixed Fund 45% (Total 0% direct 75% (Total 75% (Total The amount 15% (Indirect) 0% 30% (Total -
(Fund 2) exposure) exposure) exposure) invested in each exposure)
6% indirect fund is Other / Other /
Other / Comments: Other / Other / considered in Comments: - Comments: Other /
This limit takes into Other / Comments: - Comments: - the Equity, Fixed This limit Direct Comments: This
account the Comments: The main limit The main limit Income, or Short includes Investments are limit includes not
exposure to equity Direct excludes Short- excludes Short- Term limit, Alternative prohibited on only Bank
generated through Investments in term securities term securities according to the Investments loans, except in Deposits, but
derivatives and Real Estate are and applies to all and applies to all dominant asset - Sub-limit for case of also short term
mutual funds prohibited by bonds, public bonds, public class in its Alternative investments securities, such
whose underlying Law, however and private. and private. portfolio. Investments: done by as bonds whose
investments are they can be If the fund Private equity: Mezzanine maturity is less
mostly equity. done through -This limit also -This limit also invests in assets 12% Funds. than one year,
indirect includes mutual includes mutual that can be Venture capital: mutual funds
71
investments funds whose funds whose purchased 6% whose
such as either a underlying underlying directly by the Real estate: 6% underlying
Real Estate investments are investments are pension fund Hedge funds: investments are
Funds or a mostly fixed mostly fixed and whether 4% mostly short
Trusts. income and the income and the they represent at Commodity term securities,
exposure to exposure to least 5% of the funds: 4% and the
fixed income fixed income total fund, such - If the fund exposure to
generated generated assets are establishes in its short term
through through considered investment securities
derivatives. derivatives. within the limits policy that it will generated
by issuer and invest at least through
issue. 80% in debt derivatives.
securities which
finance
infrastructure
projects, it will
be considered
as a fixed
income security.
- If the fund
invests in assets
that can be
purchased
directly by the
pension fund
and whether
they represent at
least 5% of the
total fund, such
assets are
considered
within the limits
by issuer and
issue.
Peru - All AFPs, Growth 80% (Total 0% direct 70% (Total 70% (TotalThe amount 20% (Indirect) 0% 30% (Total -
Fund (Fund 3) exposure) exposure) exposure) invested in each exposure)
8% indirect fund is Other / Other /
Other / Comments: Other / Other / considered in Comments: - Comments: Other /
This limit takes into Other / Comments: - Comments: - the Equity, Fixed This limit Direct Comments: This
account the Comments: The The main limit The main limit Income, or Short includes Investments are limit includes not
exposure to equity direct excludes Short- excludes Short- Term limit, Alternative prohibited on only Bank
generated through Investment in term securities term securities according to the Investments loans, except in Deposits, but
72
derivatives and Real Estate is and applies to all and applies to all dominant asset - Sub-limit for case of also short term
mutual funds prohibited by bonds, public bonds, public class in its Alternative investments securities, such
whose underlying Law, although it and private. and private. portfolio. Investments: done by as bonds whose
investments are is feasible If the fund Private equity: Mezzanine maturity is less
mostly equity. through indirect -This limit also -This limit also invests in assets 15% Funds. than one year,
investments includes mutual includes mutual that can be Venture capital: mutual funds
such as either a funds whose funds whose purchased 8% whose
Real Estate underlying underlying directly by the Real estate: 8% underlying
Fund or a Trust. investments are investments are pension fund Hedge funds: investments are
mostly fixed mostly fixed and whether 6% mostly short
income and the income and the they represent at Commodity term securities,
exposure to exposure to least 5% of the funds: 6% and the
fixed income fixed income total fund, such - If the fund exposure to
generated generated assets are establishes in its short term
through through considered investment securities
derivatives. derivatives. within the limits policy that it will generated
by issuer and invest at least through
issue. 80% in debt derivatives.
securities which
finance
infrastructure
projects, it will
be considered
as a fixed
income security.
- If the fund
invests in assets
that can be
purchased
directly by the
pension fund
and whether
they represent at
least 5% of the
total fund, such
assets are
considered
within the limits
by issuer and
issue.
Romania - Private pension fund - 50% (Direct) 0% (Direct) 70% (Direct) 30% (Direct) 5% (Direct) 0% (Direct) 0% (Direct) 20% (Direct) Third countries: non-
second pillar European Union / European
73
Other / Other / Other / Economic Area countries
Comments: - Comments: This Comments: This
Limit for limit refers to limit refers to
government corporate bonds investments in
bonds from RO, EU, EEA UCITS and
Romania & ETFs, RO, EU
European Union
countries =70%;
- Limit for
government
bonds from third
countries = 15%;
- Limit for
municipal bonds
from Romania &
European Union
countries = 30%;
- Limit for
municipal bonds
from third
countries = 10%
- Limit for bond
issued by
supranational
organisations
(EIB, EBRD,
World Bank) =
15%
Romania - Private pension fund - 50% (Direct) 0% (Direct) 70% (Direct) 30% (Direct) 5% (Direct) 10% (Direct) 0% (Direct) 20% (Direct) Third countries: non-
third pillar European Union / European
Other / Other / Other / Other / Economic Area countries
Comments: - Comments: This Comments: This Comments: This
Limit for limit refers to limit refers to limit refers to
government corporate bonds investments in private equity.
bonds from RO, EU, EEA UCITS and
Romania & ETFs, RO, EU
European Union
countries =70%;
- Limit for
government
bonds from third
countries = 15%;
74
- Limit for
municipal bonds
from Romania &
European Union
countries = 30%;
- Limit for
municipal bonds
from third
countries = 10%
- Limit for bond
issued by
supranational
organisations
(EIB, EBRD,
World Bank) =
15%
Russian - Mandatory funded 0% (Direct) 0% (Direct) 100% (Direct) 100% (Direct) 0% (Direct) 0% (Direct) 0% (Direct) 80% (Direct) Cash received by state
Federation pillar, default option management company at
Other / Other / Other / the first part of REPO: 10%
Comments: Comments: Comments:
Cash in roubles
Russian Bonds of and in foreign
government Russian issuers currency in
bonds guaranteed by credit
denominated in Russian institutions, and
roubles: No limit government deposits in
denominated in roubles and in
Russian roubles or foreign currency
government foreign currency: in credit
bonds No limit institutions (in
denominated in sum): 80%
foreign currency: Mortgage bonds:
80% 20%
Regional Bonds of
government Russian issuers
bonds: 10% not guaranteed
by Russian
government and
having long-term
credit rating of
national rating
75
agency
denominated in
roubles or
foreign currency:
40%
Securities of
international
financial
organisations:
20%
Federation pillar, conservative management company at
option (introduced in Other / Other / Cash in roubles the first part of REPO: 10%
2009) Comments: Comments: and in foreign
currency in
Russia Bonds of credit institutions
bonds guaranteed by
denominated in Russian
roubles: No limit government:
No limit
Russian
government
bonds
denominated in
foreign currency:
80%
Federation pillar, life annuities management company at
portfolio Other / Other / Other / the first part of REPO: 10%
Russian Bonds of Cash in roubles

government Russian issuers and in foreign
bonds guaranteed by currency in
denominated in Russian credit
roubles: No limit government institutions, and
denominated in deposits in
Russian roubles or roubles and in
government foreign currency: foreign currency
bonds No limit in credit
76
denominated in institutions (in
foreign currency: Mortgage bonds: sum): 80%
80% 20%
Regional Bonds of
bonds: 10% denominated in
roubles or
foreign currency,
not guaranteed
by Russian
government, but
having long-term
credit rating of
national rating
agency roubles
denominated in
roubles or
foreign currency:
60%
Securities of
international
financial
organisations:
20%
Federation pillar, term annuities Other / management company at
portfolio Other / Other / Comments: the first part of REPO: 10%
Comments: Comments:
Cash in roubles
Russian Bonds of and in foreign
government Russian issuers currency in
bonds guaranteed by credit
denominated in Russian institutions, and
roubles: government deposits in
No limit denominated in roubles and in
roubles or foreign currency
Russian foreign currency: in credit
government No limit institutions (in
bonds sum): 80%
denominated in Mortgage bonds:
77
foreign currency: 20%
80%
Bonds of
Regional Russian issuers
government denominated in
bonds: 10% roubles or
foreign currency,
not guaranteed
by Russian
government, but
having long-term
credit rating of
national rating
agency roubles
denominated in
roubles or
foreign currency:
60%
Securities of
international
financial
organisations:
20%
Russian - Mandatory funded 65% (Direct) 0% (Direct) 100% (Direct) 100% (Direct) 0% (Direct) 0% (Direct) 0% (Direct) 80% (total Cash received by state
Federation pillar exposure limit) management company at
Investment portfolios Shares of Russian Other / Other / the first part of REPO: 10%
chosen by participants: joint-stock Comments: Comments: Other /
companies Comments:
Russian Bonds of
government Russian issuers Cash in roubles
bonds: No limit guaranteed by and in foreign
Russian currency in
Regional government: No credit
government limit institutions, and
bonds: 40% deposits in
Mortgage bonds: roubles and in
Municipal bonds: 40% foreign currency
40% in credit
Bonds of institutions (in
Russian issuers sum): 80%
which are not
78
guaranteed by
Russian
government and
bonds of issuers
that have long-
term credit rating
of national rating
agency: 80%
Securities of
international
financial
organisations:
20%
Russian Mandatory funded pillar 40% (Total share) 0% (none) 100% (Direct) 100% (Direct) 10% (Direct) 0% (Direct) 0% (Direct) 35% (Direct) Aggregate value of shares
Federation Non-state pension of Russian joint-stock
funds Other / Comments: Other / Other / Aggregate value companies, simultaneously
Comments: Comments of bank deposits, included in Moscow Stock
Aggregate value of bonds and Exchange (MICEX) Index
shares of Value of regional Eligible bonds shares issued by register book and in the
innovation government shall have a credit institutions quotation list of high quality,
companies listed securities and credit rating that shall not exceed: subordinated bonds of credit
on the special securities issued is not lower than - 40% of total institutions, as well as
sector of a Russian on behalf of that specified by portfolio value shares of eligible foreign
stock exchange municipalities the Board of until December index investment funds shall
shall not exceed shall not exceed Directors of the 31, 2017; not exceed 40% of total
5% of the 40% of total Central Bank of - 37.5% of total portfolio value.
investment portfolio portfolio value Russian portfolio value
value. Federation from January 1, Aggregate value of eligible
(Central Bank 2018; mortgage participation
BOD). - 35% of total certificates, bank deposits
portfolio value with variable interest
from July 1, payments, shares of
2018; Russian joint-stock
- 30% of total companies that are not
portfolio value included simultaneously in
from January 1, MICEX Index register book
2019. and in the quotation list of
high quality, bonds with
credit rating lower than that
specified by the Central
Bank BOD, bonds issued to
79
finance concessions, bonds
with variable coupon
payments relied on assets
values or third parties
commitments (not on
interest rates and inflation
rate), units of mutual
investments funds shall not
exceed 10% of total portfolio
value.
The aggregate of securities

of international financial
organisations and units
(shares, participatory
interests) of foreign index
investment funds shall not
exceed 20% of the
investment portfolio.
Russian - Voluntary pension 70% (Direct) 10% (Direct) 100% 80% (Direct) 70% 5% (Direct) 0% 80% (Direct) Mortgage participation
Federation plan certificates shall not exceed
Other / Comments: Other / Other / Other / Other / Other / Other / 20% of pension reserves.
Shares of Russian Comments: Comments: Comments: Comments: Comments: Comments:
joint-stock Total share of Aggregate proportion of
companies investment in Russian Bonds of Units of mutual Proportion of Proportion of securities included in the
real estate must government Russian issuers investment funds units of closed- bank deposits quotation lists of stock
not exceed 10% securities: No shall not exceed shall not exceed end mutual and bank exchanges for initial offering
of pension limit 80% of pension 70% of pension investment deposit or public offering as well as
reserves reserves. reserves. funds, not certificates shall securities not included in the
Regional admitted to not exceed 80% quotation lists of stock
government Proportion of trading by the of pension exchanges (excluding
securities shall shares of joint- Russian reserves. securities of the Russian
not exceed 80% stock investment securities market Federation and units of
of pension funds and units operators, as open-end and interval
reserves. of mutual well as investment funds) shall not
investment proportion of exceed 40% of total
Municipal bonds funds, managed investment units investment portfolio, the
shall not exceed by one asset intended for proportion of securities
80% of pension management qualified without a registered issue
reserves company, shall investors shall report or without an
not exceed 25 not exceed 5% appropriate notification on
per cent of total of the reserve the issue results not being
80
pension covering the allowed to exceed 15% of
reserves. pension liabilities pension reserves.
of the fund,
increased by the
proportion of the
insurance
reserve to such
reserves
covering the
pension liabilities
of the fund.
Serbia Voluntary pension 40% (Direct) 5% (Direct) 100% for bonds 50% for 5% for 0% 0% 35% for money Up to 10% may be invested
funds issued by the corporate and investment units deposits (Direct) in depositary receipts issued
Other / Comments: Other / National Bank of mortgage bonds. of open by banks headquartered in
Shares of legal Comments: Serbia and the investment Other / the Republic of Serbia or
entities Fund assets Republic of 100% for funds. (Direct) Comments: Up EU/OECD member states.
headquartered in may be invested Serbia, as well corporate bonds to 5% may be
the Republic of in real estate in as debt with the Other / invested in
Serbia, in which the territory of securities issued guarantee of the Comments: money deposits
fund assets are the Republic of by autonomous Republic of Open-end with one bank or
invested must meet Serbia, provinces and Serbia. investment funds several related
the following exclusively for local (Direct) must meet the banks.
conditions: the purpose of government following
– they shall be leasing real units in the Other / conditions: Fund assets
traded on stock estate and Republic of Comments: Debt – net assets of may not be
exchange; making profit Serbia and other securities issued the open-end invested in
– the minimum therefrom. legal entities by legal entities investment fund money deposits
period of operation Investment in with the headquartered in must be no less with a custody
of their issuers real estate may guarantee of the the Republic of than one billion bank or a bank
shall be two years; take the form of Republic of Serbia, must RSD; which is a
– their free-float investment in Serbia. meet the – Investment founder of a fund
market land, buildings following fund management
capitalisation, shall and specific 50% for other conditions: management company and/or
be no less than parts of bonds. - to be traded in company is not a a bank which is
RSD 100,000,000. buildings, if such (Direct) the regulated related party of directly related
real estate is not market in the the VPF to the founder of
encumbered by Other / Republic of management the company.
the right of Comments: Debt Serbia; company,
pledge, right of securities issued - to have their custody bank,
usufruct, right of by autonomous credit rating broker-dealer
use, right of provinces and ranked at the company or
residence or local least at the level shareholder of
81
right of actual government of the Republic the VPF
lien. units in the of Serbia’s credit management
Real estate must Republic of rating. company;
be insured Serbia (without – investment
against all risks. the guarantee) Up to 5% in debt policy of the
must meet the securities issued open-end
following by legal entities investment fund
conditions: headquartered in must envisage
– the nominal the Republic of exclusively
value of the Serbia, whose investment
issue of these rating has not meeting the
securities is no been established conditions
less than RSD by rating prescribed by
500,000,000, agencies. the investment
– these policy of the VPF
securities shall Mortgage bonds whose assets
be traded in the issued in the are invested.
regulated territory of the
market; Republic of Up to 2% may
– issuers of Serbia must be invested in
these bonds meet the investment units
have opened following of one or several
accounts with conditions: open-end
the exclusive – they shall be investment
purpose of debt issued by a funds, which are
repayment under bank; managed by the
these securities;– the nominal same
– credit rating of
value of the management
these securities issue of these company.
shall be at the bonds shall be
least at the level
no less than Voluntary
of the Republic RSD pension fund
of Serbia’s credit
500,000,000; may acquire at
rating. – the ratio most 10% of net
between the assets of the
Up to 5% in debt market value of open-end
securities issued mortgage investment fund.
by autonomous against which
provinces and such bonds are
local issued and
government bonds
units in the themselves shall
82
Republic of be no less than
Serbia which are 1.5 : 1.
not traded in the
regulated market
or whose credit
rating is not
established by
Standard&Poor's
and Fitch-IBCA,
or Moody's at
the least at the
level of the
Republic of
Serbia’s credit
rating.
Seychelles - Seychelles Pension Securities 30%- Minimum Government Limit not Limit not Overseas Limit not Fixed Term All limits is as per
Fund Domestic 60%- Maximum Securities specified specified Investments specified Deposits Seychelles Pension Fund
5%- Minimum 15%- Minimum 5%- Minimum 0%- Minimum Investment Guidelines
20%- Maximum 35%- Maximum 10%- Maximum 15%- Maximum
Social
Investments
0%- Minimum
5%- Maximum
South - Pension fund Listed Equities: Overall limit of 100% - Debt 75% - Debt 100% 15% Maximum 5% investment 100% - Housing loans to members
Africa established for public Overall limit of 75%
25% for instruments instruments overall limit for into a (maximum of 95%)
servants, for parastatal in respect of Preference issued by, and issued or Other / Hedge funds participating 'Commodities 10%
institutions established preference and shares, ordinary loans to, the guaranteed by a Comments: No and Private employer of the
by special laws ordinary shares in shares and Government of South African limit, as long as Equity funds fund. (Direct)
- Occupational Pension property linked units South Africa, bank against its pension funds
funds companies, listed comprising and any debt or balance sheet. comply with total Other / Other /
- Umbrella funds/Multi- on an exchange. shares linked to loan guaranteed exposure by Comments: Comments: Can
employer funds debentures in by the Unlisted debt type of assets by Maximum overall apply for up to
- Retirement Annuity Unlisted equities: property Government of instruments: applying the limit for Hedge 10% with the
Funds maximum limit of companies, or South Africa maximum of look-through funds and prior approval of
- Preservation funds 10% units in a 25% principle to the Private Equity the Registrar
Collective underlying funds of 15% and members of
Investment assets Hedge Funds or the fund.
Scheme in fund of hedge
Property, listed funds a
on an exchange. maximum limit of
10%
83
Unlisted equities
maximum limit of
10%
Suriname Voluntary occupational A maximum of 60% A maximum of A maximum of A maximum of 20% Mortgage loans: 100% (Direct) Pension funds can invest in
pension funds 50% 60% 60% local maximum other asset classes not
Other / Comments: limit of 50% of Includes term specifically stipulated in the
Investments in Other / Other / Other / the total assets deposits and investment guideline subject
securities may not Comments: Comments: see Comments: see saving accounts to prior approval by the
exceed 60% of Investments in equity. equity. Personal loans: Central bank. Max. 10% of
total assets. This real estate may This limit refers Local: maximum total assets
limit refers to total not exceed 50% also to treasury limit of 50% of
of local and foreign of total assets. bills the total assets Other / comments:
securities (only to Investment with the
participants of employer (including current
the pension account with the employer
funds) and stocks of the employer)
max. 10% of the total
assets.
The local investments could

be in local and foreign
currency.
Tanzania All mandatory and 20% (Direct) 30% (Direct) (20-70)% 20% (Direct) Not stated Unquoted equity: 20% (Direct) 35% (Direct) Pension Funds and
supplementary social (Direct) 5% Managers can invest in
security schemes and Other / Comments: Other / Other Other / other asset class not
Fund Managers Ordinary & Comments: Other / comments: Comments: stipulated in the guidelines
operating in Tanzania preference shares Of which non- Comments: Commercial Direct loans to subject to prior approval by
Mainland 20%, of which income earning Government (T- Paper, the Government: the Central bank
unquoted equity is properties is 5% bills, T bonds); Promissory 10%
5% 20-70% Notes and
Corporate Bonds Loans to
20% corporates and
cooperative
Of which societies: 10%
unlisted
corporate debt is
5%
Thailand - Provident fund 100% (Direct) Not allowed to 100% (Direct) 100% (Direct) - For units of Loans are not 100% (Direct) From 1 July 2018 onward,
invest directly in however, in case CIS: no product eligible assets. issuer limit for listed
Other / Comments: real estate but Other / of Bills of limit but such Other / companies will be changed
- No limits for listed can invest Comments: Exchange, Comments: to ≤10% or Benchmark+5%
84
companies but indirectly - No limit (no Promissory units must - No limits but
issuer limit applies through real issuer limit for notes or comply with issuer limit
(issuer limit ≤15% estate funds, Thai government Structured Notes issuer limit (pro applies. Issuer
or Benchmark+5%) REITs, bond) with either of the rata) and limit ≤20% for
- For unlisted Infrastructure following derivatives limit bank deposits;
companies: funds. conditions, as specified in or deposit-like
product limit product limit the SEC product where
(≤15%), issuer limit ≤25% will apply: investment its issuer
(≤5%) (a) non- restrictions. receives
transferable investment
conditions but grade rating.
the provident - For the funds
fund has (i) - (viii) below:
acquired legal product limit
claims in (≤30%)
securities as
specified under - For the funds
the law; or (iv) - (viii) below:
(b) condition that product limit
allows the (≤15%)
provident fund to
redeem such (i) Real estate
bonds with the funds/ REITs;
issuer. (ii) Infrastructure
funds;
(iii) Fund that
has a policy to
invest in
Alternative Fund
with net exposure
in (i) or (ii);
(iv) Fund that
invests in gold
bullion;
(v) derivatives or
structured notes
(SN) that have
underlying
assets of gold,
crude oil or other
85
commodities;
(vi) Fund that
has a policy to
invest in
Alternative Fund
other than the
funds specified
in (iii) and (iv);
(vii) Specific
Investment
Products;
(viii) Other
assets as
specified in the
SEC regulation
Trinidad All Occupational 50% (Direct) 20% (Direct) 100% (Direct) 100% (Direct) 10% (Direct) 0% (Direct) 0% (Direct) 100% (Direct) -
and Pension Plans
Tobago Other / Comments: Other /
50% limit where Comments: 10%
the pension plan is limit in unit
less than 150% certificates,
funded (as certified shares or
by the actuaries) evidence of
70% limit where participation in
the pension plan is financial assets
over 150% funded
(as certified by the
actuaries)
Uganda Mandatory and 70% (Direct) 30% (Direct) 80% (Direct) 30% (Direct) 30% (Direct) 15% (Direct) Prohibited by 30% (Direct)
occupational pension section 68
funds /plans Other / Comments: Other / Other / Other / Other / Other / (1)(d)of the Other /
Shares of Comments: Comments: This Comments: This Comments: This Comments: This Uganda Comments:
companies quoted Shares of limit refers to limit refers to limit refers to limit refers to Retirement Cash and
in a stock companies Government Commercial real estate trusts private equity in Benefits demand
exchange in East quoted in a stock securities in the paper, corporate and property unit non-listed Regulatory deposits in
Africa and exchange in East African bonds, mortgage trusts approved companies in the Authority Act, institutions
collective East Africa and Community. bonds and asset by the Capital East African 2011 licensed under
Investment collective backed Markets Community the Financial
Schemes approved Investment securities and Authority. Other / Institutional Act
by the Capital Schemes collective Comments: 2003 or other
Markets Authority: approved by the investment Section 68 (1)(d) similar
86
70% Capital Markets schemes of the Uganda institutions
Authority: 70% approved by the Retirement licensed in East
Capital Markets Benefits African
Authority. Regulatory Community: 5%
Authority Act, Fixed deposits,
2011 prohibits time deposits
the use of and certificates
pension funds to of deposits in
make direct or institutions
indirect loans to licensed under
any person the Financial
Institutions Act
2003 or other
similar
institutions
licensed in the
East African
Community:
30%
Ukraine 10% (Direct) 40% (Direct) 50% (Direct)
Uruguay -Mandatory personal 50% 0% 75% 50% 50% 0% 15% 30% The category Investment in
pension funds: defined “bonds issued by the private
contribution Other/ Other/ Other/ Other/ Other/ sector” also includes
Fund A – Workers Comments: Comments: Comments: Comments: Comments: investment in bonds issued
under 55 years old by firms that are state
This limit refers to This limit refers This limit refers These loans can These deposits owned and financial trusts.
the sum of Equity, to the sum of to the sum of be granted only must be made in In each case they must
Bonds Issued by Equity, Bonds Equity, Bonds to workers domestic banks have a BBB- or better credit
the Private Sector Issued by the Issued by the affiliated to the (who may or rating.
and Retail Private Sector Private Sector pension scheme may not be
Investment Funds and Retail and Retail and must be branches of
Investment Investment channelled by a international
Funds Funds Uruguayan banks)
bank, which
must bear the
credit risk.
Uruguay -Mandatory personal 0% 0% 90% 0% 0% 0% 5% 30% The category Investment in
pension funds: defined “bonds issued by the private
contribution Other/ Other/ sector” also includes
Fund B – Workers over Comments: Comments: investment in bonds issued
55 years old by firms that are state
87
These loans can These deposits owned and financial trusts.
be granted only must be made in In each case they must
to workers domestic banks have a BBB- or better credit
affiliated to the (who may or rating.
pension scheme may not be
and must be branches of
channelled by a international
Uruguayan banks)
bank, which
must bear the
credit risk.
Zambia 70% (Direct) 30% (Direct) Not less than 5% Not more than 0% (Direct) Not more that -
of its fund size in 10% of its fund 20% of its fund
Other / Comments: Other / corporate bonds. size in any policy size in cash and
Not less than 5% Comments: Not Not more that with a registered bank balance
but not more than more than 30% 7.5% of its fund insurer. with any one
70% of its fund size of its fund size in size in corporate bank or financial
in listed and quoted immovable bonds of the institution.
entities. This property. same company. Not less than
investment shall No investment in 2.5% of its fund
consist of property outside size in cash,
- not more than the republic. bank balances
15% of the fund and money
size where it is market
invested in the instruments.
equities of the
same company
- not more than
10% of the
ownership of the
share capital of any
one company
- not more than
10% of the fund
size of the pension
scheme where it is
invested in
companies that
have been in
existence for less
than 3 years
- not more than 5%
88
of the fund size of
the pension
scheme where it is
invested in unlisted
securities
89
Table 2: Portfolio Limits on Pension Fund Investment In Selected Foreign Asset Categories
Bills and
Bonds issued Retail Private
bonds issued
Country Funds / Plans All Equity Real Estate by the private Investment Investment Loans Bank deposits Other comments
by public
sector Funds funds
administration
Australia - Occupational trustee No specific limit
managed (World)
superannuation fund:
corporate;
- Occupational trustee
managed
industry
- Trustee managed
public offer
retail funds
- Trustee managed
small APRA funds
- Trustee managed
self-managed
superannuation fund
(SMSFs)
- Public sector
occupational pension
plans, often compulsory
for public sector
employees
- Trustee managed
approved deposit fund
Austria - occupational pension No specific limit - The Pensionskassen
funds (Pensionskassen) (World) may operate several
investment and risk
Other / sharing groups ("support
Comments: funds"), provided that
There is no they are operated for at
specific limit on least 1,000 beneficiaries
foreign each.
investments. A
30% limit
90
Bills and
bonds issued
by public
sector Funds funds
administration
applies to
investments in
foreign currency
(after FX
hedging).
Belgium - IORP (institutions de No specific limit
retraite professionnelle) (World)
Canada - Occupational No specific limit
registered pension (World)
plans (RPPs): trusteed
pension funds
Chile - All AFPs, Fund A 100% (World) 80% (World) No specific limit No specific limit No specific limit No specific limit 7% (limited 10% (World) No specific limit VF: Fund Value; RF:
(World) (World) (World) (World) partnerships, (World) Risk Factor
Other / Other / limited liabilities Other/Commen
Comments: The Comments: all Other / Other / Other / companies and ts: This limit Other /
joint limit for all investment Comments: Comments: Comments: other similar applies to Comments:
funds is 80%. allowed in AFPs can There is no There is no investment Alternative There is no
equity could be invest in specific limit for specific limit for vehicles Assets, specific limit for
invested in the specific real foreign foreign (World)) including co- foreign
foreign sector. estate and investments in investments in investment. investments in
indirectly public bills and convertible bank deposits,
(investment or bonds. These bonds. Overall, only in time and
mutual funds) are subject to the limit in overnight
on private the implicit limit convertible deposits
equity/debt. of Fixed bonds (both (2%*VF) and
Income. domestic and foreign current
foreign) should accounts
not exceed balances
30% of the (5%*VF).
portfolio. As in
the previous
case, bonds of
private sector
are subject to
the implicit limit
of Fixed
Income.
Chile - All AFPs, Fund B 90% (World) 60% (World) No specific limit No specific limit No specific limit No specific limit 6% (limited 8% (World) No specific limit VF: Fund Value; RF:
Other / Other / limited liabilities Other /
91
Bills and
bonds issued
by public
sector Funds funds
administration
Comments: The Comments: all Other / Other / Other / companies and Comments: Other /
joint limit for all investment Comments: Comments: Comments: other similar This limit Comments:
funds is 80%. allowed in AFPs can There is no There is no investment applies to There is no
equity could be invest in specific limit for specific limit for vehicles Alternative specific limit for
invested in the specific real foreign foreign (World)) Assets, foreign
foreign sector. estate and investments in investments in including co- investments in
indirectly public bills and convertible investment. bank deposits,
not exceed balances
30% of the (5%*VF).
portfolio. As in
the previous
case, bonds of
private sector
are subject to
the implicit limit
of Fixed
Income.
Chile - All AFPs, Fund C 75% (World) 40% (World) No specific limit No specific limit No specific limit No specific limit 4% (limited 6% (World) No specific limit VF: Fund Value; RF:
not exceed balances
92
Bills and
bonds issued
by public
sector Funds funds
administration
30% of the (5%*VF).
portfolio. As in
the previous
case, bonds of
private sector
are subject to
the implicit limit
of Fixed
Income.
Chile - All AFPs, Fund D 45% (World) 20% (World) No specific limit No specific limit No specific limit No specific limit 3% (limited 5% (World) No specific limit VF: Fund Value; RF:
not exceed balances
30% of the (5%*VF).
portfolio. As in
the previous
case, bonds of
private sector
are subject to
the implicit limit
of Fixed
Income.
Chile - All AFPs, Fund E 35% (World) 5% (World) No specific limit No specific limit No specific limit No specific limit 2% (limited 5% (World) No specific limit VF: Fund Value; RF:
93
Bills and
bonds issued
by public
sector Funds funds
administration
not exceed balances
30% of the (5%*VF).
portfolio. As in
the previous
case, bonds of
private sector
are subject to
the implicit limit
of Fixed
Income.
Czech - Transformed pension No specific limit 100% (OECD, No specific limit No specific limit No specific limit No specific limit -
Republic schemes (3rd pillar) (OECD) international for OECD (OECD) (OECD) (OECD)
institutions the countries
Other / Czech Republic Other / Other /
Comments: - belongs to) Comments: - Comments: -
No specific limit No specific limit No specific limit
for OECD Other / for OECD for OECD
countries; Comments: - countries; countries;
- Limit for non- No specific limit - Limit for non- - Limit for non-
OECD equity = for OECD OECD OECD
5%. countries and countries = 0%. countries = 0%.
international
institutions the
Czech Republic
belongs to;
- Limit for other
countries =70%
Czech - Participation funds: 100% (OECD) 30% (World) 30% (EU) No specific limit -
Republic conservative schemes (World)
94
Bills and
bonds issued
by public
sector Funds funds
administration
(3rd pillar) Other / Other /
Comments: Comments: Other /
Issued by the The fund is Comments: -
state or CB or subject to No specific limit
an international supervision or for regulated
institutions the have banks;
Czech Republic authorization to - Limit for other
belongs to. operate from an banks = 0%
EU Member
State
Czech - Participation funds: 100% (World) 100% (World) 100% (World) 60% (World) 100% (World) -
Republic other schemes (3rd
pillar) Other / Other / Other / Other /
Comments: - Comments: - Comments: Comments: -
Limit for equity Limit for bonds Limit for bonds Limit for
traded on traded on EU traded on EU regulated
regulated regulated regulated banks = 100%;
market or market, EU market, EU - Limit for other
multilateral MTF or on a MTF or on a banks = 0%
trading facility market similar market similar
verified by the to a regulated to a regulated
Czech National market with market with
Bank = 100%; registered registered
- Limit for other office in a state, office in a state,
equities = 0%; which is not a which is not a
member state, member state,
if this market is if this market is
registered in registered in
particular particular
register register
maintained by maintained by
the CNB the CNB
=100%; =100%;
- Limit for other
bonds=0%;
Denmark All (pension savings in No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit Largely regulated by the
ATP, LD, pension prudent person principle
funds, life insurance
and banks)
Estonia - Mandatory funded No specific limit
95
Bills and
bonds issued
by public
sector Funds funds
administration
pension (World)
Estonia - Voluntary funded No specific limit
pension (World)
Finland - Voluntary plans: No specific limit
company pension funds (OECD or EEA)
and industry-wide
pension funds Other /
Comments: - No
specific limit in
OECD/EEA
countries;
- Limit for
countries
outside the
OECD/EEA =
10%.
Finland - earnings-related No specific limit
statutory pension (OECD or EEA)
provisions for private
sector workers, seamen
and self-employed
persons
France - Group insurance No specific limit
contracts for workers,
PERE, Madelin
schemes
- PERP
Germany - Pensionskassen No specific limit
(World)
Other /
Comments:
There is no
specific limit on
foreign
investments.
However, where
certain legal
risks can arise,
foreign
96
Bills and
bonds issued
by public
sector Funds funds
administration
investments
must be kept at
a prudent level.
Germany - Pensionsfonds No specific limit
(World)
Other /
Comments:
There is no
specific limit on
foreign
investments.
However, where
certain legal
risks can arise,
foreign
investments
must be kept at
a prudent level.
Greece - Occupational No specific limit
insurance funds (World)
Other /
Comments:
There is no
specific limit on
foreign
investments.
Hungary - Voluntary privately No specific limit, No specific Within investments
managed pension funds as long as the investment made abroad, the ratio
(magánnyugdíjpénztár) ratio of (Only in of investments in non-
investments in European OECD countries shall
non-OECD Economic not exceed 20%.
countries shall Area)
not exceed 20%
of the foreign
investments.
Other /
Comments: No
97
Bills and
bonds issued
by public
sector Funds funds
administration
specific limit, as
long as the ratio
of investments
in non-OECD
countries shall
not exceed 20%
of the foreign
investments.
Hungary - Voluntary private No specific limit, No specific Within investments
pension funds as long as the investment made abroad, the ratio
(önkéntes ratio of (Only in of investments in non-
nyugdíjpénztar) investments in European OECD countries shall
non-OECD Economic not exceed 20%.
countries shall Area)
not exceed 20%
of the foreign
investments.
Other /
Comments: No
specific limit, as
long as the ratio
of investments
in non-OECD
countries shall
not exceed 20%
of the foreign
investments.
Iceland Occupational private No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit - No specific limit Same rules applies in all
pension and personal (OECD, EU and (OECD, EU (OECD, EU (OECD, EU (OECD, EU (OECD, EU (OECD, EU (OECD, EU asset classes as in
pension Faroe Islands) and Faroe and Faroe and Faroe and Faroe and Faroe and Faroe and Faroe Table 1
Islands) Islands) Islands) Islands) Islands) Islands) Islands)
Other / Investment only
Comments: Other / Other / Other / Other / Other / Other / permitted in OECD, EU
Investment only Comments: - Comments: Comments: - Comments: - Comments: Comments: and Faroe Islands
permitted in No specific limit Investment only No specific limit No specific limit Investment only Investment only securities. But foreign
OECD, EU and in OECD, EU permitted in in OECD, EU in OECD, EU permitted in permitted in currency exposure
Faroe Islands and Faroe OECD, EU and and Faroe and Faroe OECD, EU and OECD, EU and should not exceed 50%.
securities. But Islands listed Faroe Islands Islands listed Islands listed Faroe Islands Faroe Islands
foreign currency securities. securities. securities. securities. securities. securities. Limit for investments
98
Bills and
bonds issued
by public
sector Funds funds
administration
exposure - Limit for non- Limit outside - Limit for non- - Limit for non- Limit outside Limit outside outside the OECD, EU
should not listed equity the OECD, EU listed securities listed securities the OECD, EU the OECD, EU and Faroe Islands = 0%
exceed 50%. within OECD, and Faroe within OECD, within OECD, and Faroe and Faroe
EU and Faroe Islands = 0% EU and Faroe EU and Faroe Islands = 0% Islands = 0% Total investments
Limit for Islands (joint Islands = 20% Islands = 20% overseas<50% of
investments limit with bonds liabilities
outside the and units or
OECD, EU and shares of other
Faroe Islands = collective
0% investment
undertaking
(Non UCITS)) =
20%
Ireland - Occupational pension No specific limit
plans (World)
Israel - old pension funds 100% (OECD
- new pension funds and countries
- general pension funds rated at least
BBB-)
Other /
Comments: -
Limit on
securities
issued by a
country rated at
least BBB- =
100%;
- Limit on
securities
issued by
OECD residents
= 100%;
- Limit on
securities
issued countries
which are rated
below BBB- and
which are not
part of the
99
Bills and
bonds issued
by public
sector Funds funds
administration
OECD = 0%
Italy - Contractual pension No specific limit No specific limit Direct No specific limit No specific limit No specific limit No specific limit Loans are not No specific limit These limits reflect the
funds (fondi pensione (World ) (World) investment in (World) (World) (World) (World ) allowed (World) new investment
negoziali) real estate is regulation that has been
- Open pension funds not allowed Other / Other / issued in 2014, relaxing
(fondi pensione aperti) - Comments: Comments: some quantitative
Pre-existing pension UCITS This limit also restrictions and putting
funds (fondi pensione applies to greater emphasis on the
preesistenti) short-term bills. adequacy of pension
(see limits for funds' organisational
bills and bonds) structure and risk
monitoring systems with
respect to their
investment policy.
Japan - The Employees' No specific limit No specific limit 0% (direct) No specific limit No specific limit No specific limit No specific limit 0% (direct) No specific limit
Pension Fund (EPF) (World) (World) (World) (World) (World) (World) (World)
(kosei nenkin kikin)
- Defined benefit
corporate pension
funds (kakutei kyufu
kigyo nenkin)
- Corporate defined
contribution
funds(kakutei
kyoshutsu nenkin[kigyo-
gata])
- Individual defined
contribution funds
(kakutei kyoshutsu
nenkin [kojin-gata])
- National pension
funds (kokumin nenkin
kikin)
Japan - Mutual aid No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit
associations (MAAs) (World) (World) (World) (World) (World) (World) (World) (World) (World)
Other / Other /
Comments: Comments:
100
Bills and
bonds issued
by public
sector Funds funds
administration
needed. Association
(e.g. from
pensions
account to
operating
account).
Korea - Personal pension No specific limit No specific limit Specific limit: No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit -
insurance (World) (World) 30% (World) (World) (World) (World) (World) (World) (World)
Korea - Personal pension trust No specific limit The types of personal
(World) pension including trusts
and investment funds
have no restriction on
these limits.
Korea - Defined benefit (DB) Up to 70% Up to 70% Investment in Up to 70% Up to 70% Up to 70% Up to 70% 0% (World) 100% (World) Same rules apply in all
Retirement pension (World) (Stocks listed in REITs listed on (Central (Companies (World) (World) asset classes as in
plans eligible regulated governments rated as Table 1.
- Defined benefit (DB) overseas stock market is and local investment Other /
Retirement insurance / market (NYSE, allowed governments grade) Comments: -
Retirement trust NASDAQ, (up to 70%) rated as Limit for bond
America, investment Other / fund (with
Tokyo, grade) Comments: - foreign bonds):
Euronext etc.) Limit for 70%
Other / companies not
Comments: - rated as
Limit for bonds investment
issued by grade = 0%
central
governments
and local
governments
not rated as
investment
grade = 0%;
- Limit for
foreign
government
101
Bills and
bonds issued
by public
sector Funds funds
administration
bonds as
investment
grade A- or
higher = 100%;
Korea - Defined contribution Up to 70% 0% (World) 0% (World) Up to 70% Up to 70% Up to 70% 0% (World) 0% (World) 100% (World) Same rules apply in all
(DC) Retirement (World) (Central (Companies (World) asset classes as in
pension plans governments rated as Table 1.
- Defined contribution and local investment Other /
(DC) Retirement governments grade) Comments: -
insurance / Retirement rated as Limit for bond
trust investment Other / fund (with
grade) Comments: - foreign bonds)
Limit for = 70%
Other / companies not
Comments: - rated as
Limit for bonds investment
issued by grade = 0%;
central
governments
and local
governments
not rated as
investment
grade = 0%;
- Limit for
foreign
government
bonds as
investment
grade A- or
higher = 100%;
Latvia State funded pensions No specific limit Direct - Limit for No specific limit Loans are not - Limit for At least 75% of all
(mandatory) for securities investments in EU/EEA and for bonds and allowed EU/EEA and investments in financial
listed on a real estate are OECD member MMI listed on a OECD member instruments shall be
regulated not allowed states' bonds regulated states' which invested in securities or
market in and money market in are considered money market
OECD and EU/ market EU/EEA and as countries instruments listed on a
EEA. instruments OECD applying regulated market.
with qualified supervisory and
rating =100% regulatory
102
Bills and
bonds issued
by public
sector Funds funds
administration
- Limit for other arrangements
countries' to credit
bonds and MMI institutions
with qualified equivalent to
rating listed on those applied in
a regulated the EU = 100%.
market in – Limit for other
EU/EEA or not countries = 0%
listed, but with
reference in
prospectus that
they will be
included on a
regulated
market in
EU/EEA within
a year =10%;
- Limit for other
countries =0%
Private pension funds No specific limit 0% (outside - Limit for No specific limit Loans are not - Limit for At least 70% of all
(voluntary) for securities EU/EEA) EU/EEA and for securities allowed EU/EEA and investments in financial
listed on a OECD member listed on a OECD member instruments shall be
regulated states' bonds regulated states' which invested in securities or
market in and money market in are considered money market
OECD and EU/ market OECD and EU/ as countries instruments listed on a
EEA. instruments EEA. applying regulated market.
with qualified supervisory and
rating =100%; regulatory
- Limit for other arrangements
countries =0% to credit
institutions
equivalent to
those applied in
the EU = 100%.
– Limit for other
countries = 0%
Lithuania Social insurance No specific limit
contributions in pension (World)
funds - conservative
funds
103
Bills and
bonds issued
by public
sector Funds funds
administration
Lithuania Social insurance No specific limit
contributions in pension (World)
funds - other funds
Lithuania Supplementary No specific limit
accumulation for (World)
pension in pension
funds
Luxembourg - Pension savings No specific limit
companies with variable (World)
capital (SEPCAVs)
- Pension savings
associations (ASSEPs)
Luxembourg Defined benefit CAA No specific limit 5% (Non- 0% (outside 5% (Non- 5% (Non- 5% (Non- 5% (Non- 0% (World) No specific limit All values are for DB
supervised pension (World) OECD) UE) OECD) OECD) OECD) OECD) (World) CAA supervised
funds pension funds. For DC
Other / Other / Other / Other / Other / Other / CAA supervised
Comments: No Comments: all Comments: No Comments: No Comments: No Comments: No pension funds, CAA
specific limit for real estate specific limit for specific limit for specific limit for specific limit for considers each
foreign equities must be foreign equities foreign equities foreign equities foreign equities investment strategy
from an OECD situated inside from an OECD from an OECD from an OECD from an OECD separately.
country the UE country country country country
Mexico - All Afores, (Siefore) 0% 0% 0% 0% 0% 0% 0% 0% 0%
Basic Fund 0
Mexico - All Afores, (Siefore) 20% (Eligible 10% (Eligible 5% (Eligible 20% (Eligible 20% (Eligible 20% (Eligible 10% (Eligible 0% (Eligible 20% (Eligible The limit applicable to
Basic Fund 1 countries) countries) countries) countries) countries) countries) countries) countries) countries) foreign issuers is written
down in the law of the
Other / Other / Other / Other / Other / Other / Other / Other / Other / pension system, thus it
Comments: Comments: Comments: Comments: Comments: Comments: Comments: Comments: Comments: requires the Mexican
Commodities Through Direct exposure The issuer The issuer ETFs and Private Loans are The limit Congress to reform the
are not authorized in real estate is must have a must have a mutual funds investments are allowed only in reflects the law for any change
considered active mutual not allowed. credit rating at credit rating at are allowed as allowed abroad Mexico via aggregated
foreign assets funds. Also Indirect least of BBB-. least of BBB-. investment only indirectly CKDs and exposure to
nor do FX through ETFs, exposure can An individual An individual vehicles. The through CERPIs. international
positions. mutual funds be through: i) limit applies of limit applies of limit is inherited CERPIs. banks. An
and authorized Derivatives; ii) 5% to each 5% to each from the limit individual limit
derivatives, structured issuer issuer applicable to applies
which replicate notes linked to foreign equivalent to up
authorized REITs indices investments to 5% of AUM
international and iii) ETFs or for each eligible
equity indices. mutual funds. bank (credit
104
Bills and
bonds issued
by public
sector Funds funds
administration
Also, through All of them rating at least
authorized should replicate BBB-)
investment an authorized
mandates REIT index.
(segregated
accounts),
which either
replicate an
authorized
international
equity index or
invest in
individual
stocks.
positions mutual funds be through: i) limit applies of limit applies of limit is inherited CERPIs. banks. An
(segregated
accounts),
which either
replicate an
authorized
105
Bills and
bonds issued
by public
sector Funds funds
administration
international
equity index or
invest in
individual
stocks
Commodities Through Direct The issuer The issuer ETFs and Private Loans are The limit Congress to reform the
are not authorized investment in must have a must have a mutual funds investments are allowed only in reflects the law for any change
considered active mutual real estate is credit rating at credit rating at are allowed as allowed abroad Mexico via aggregated
foreign assets funds. Also not allowed. least of BBB-. least of BBB-. investment only indirectly CKDs and exposure to
nor do FX through ETFs, Indirect An individual An individual vehicles. The through CERPIs. international
positions mutual funds exposure can limit applies of limit applies of limit is inherited CERPIs. banks. An
and authorized be through: i) 5% to each 5% to each from the limit individual limit
derivatives, Derivatives; ii) issuer issuer applicable to applies
which replicate structured foreign equivalent to up
authorized notes linked to investments to 5% of AUM
international REITs indices for each eligible
equity indices. and iii) ETFs or bank (credit
Also, through mutual funds. rating at least
authorized All of them BBB-)
investment should replicate
mandates an authorized
(segregated REIT index.
accounts),
which either
replicate an
authorized
international
equity index or
invest in
individual
stocks
106
Bills and
bonds issued
by public
sector Funds funds
administration
positions mutual funds be through: i) limit applies of limit applies of limit is inherited CERPIs. banks. An
(segregated
accounts),
which either
replicate an
authorized
international
equity index or
invest in
individual
stocks
Netherlands - Sector- or industry- No specific limit
wide pension plans (World)
- Company pension
funds
- Pension funds for
professions
- Pension funds not
under supervision
New Zealand - Superannuation No specific limit
registered schemes (World)
- KiwiSaver
Norway - Pension funds No specific limit 10% (non
107
Bills and
bonds issued
by public
sector Funds funds
administration
(pensjonkasser): private (OECD/EU OECD/EU
pension funds, countries) countries)
municipal pension
funds Other /
Comments:
Limit for
exposure
towards
companies
listed in non
OECD/EU
countries =
10%
Poland - Open pension funds 30% The limits for categories
(OFE) mimic those for
domestic investments -
thus, they are usually
overruled by the main
limit.
Poland - Employee pension 30% (EU, EEA, The limits for categories
funds (PPE) OECD mimic those for
Countries) domestic investments -
thus, they are usually
overruled by the main
limit.
Portugal - Closed pension funds No specific limit
- Open pension funds (OECD / EU
regulated
markets)
Other /
Comments: -
Limit for
investments not
traded in an EU
and OECD
regulated
market = 15%
Portugal - Personal retirement No specific limit
saving schemes (PPR) (OECD / EU
108
Bills and
bonds issued
by public
sector Funds funds
administration
financed through regulated
pension funds markets)
Other /
Comments: -
Limit for
investments not
traded in an EU
and OECD
regulated
market = 10%
Slovak - Privately managed No specific limit 0% (Not No specific limit20% (The value 20% (The value No specific limit 0% (Not 0% (Not No specific limit
Republic mandatory pension (OECD / EU allowed) (OECD / EU of transferable of transferable (shares/units of allowed) allowed) (Funds in a
system - Bonds regulated regulated securities and securities and open-end current account
Guaranteed Fund markets/ markets/ money market money market investment or deposit
European European instruments instruments funds and account
Economic Area) Economic issued or issued or securities of held with the
Area) guaranteed guaranteed foreign depositary or in
by one Member by one Member collective current
Other / State or by the State or by the investment accounts
Comments: European European undertakings or deposit
Not more than Central Bank, Central Bank, meeting the accounts held
10% of the net the World the World legal with banks or
asset value of a Bank, the Bank, the requirements of branches of
pension fund European Bank European Bank the European foreign banks
shall be for for Union) whose
accounted for Reconstruction Reconstruction registered
by and and office is
mortgage Development, Development, in the Slovak
bonds or the or the Republic,
issued by one International International another
bank, or by Monetary Fund, Monetary Fund, Member State
securities may not may not or a non-
where they are constitute more constitute more Member State,
issued by one than 20% of the than 20% of the provided that
foreign bank net asset value net asset value such
that has its of the pension of the pension bank or branch
registered fund) fund) of a foreign
office in a bank is subject
Member State to supervision)
109
Bills and
bonds issued
by public
sector Funds funds
administration
and their par
value and
yields are
covered by the
bank's
mortgage loan
claims.
Slovak - Privately managed No specific limit No specific limit No specific limit20% (The value 20% (The value No specific limit 0% (Not 0% (Not No specific limit
Republic mandatory pension (OECD / EU (OECD / EU (OECD / EU of transferable of transferable (shares/units of allowed) allowed) (Funds in a
system - Equity Non- regulated regulated regulated securities and securities and open-end current account
Guaranteed Fund markets/ markets/ markets/ money market money market investment or deposit
European European European instruments instruments funds and account
Economic Area) Economic Economic issued or issued or securities of held with the
Area) Area) guaranteed guaranteed foreign depositary or in
by one Member by one Member collective current
Other / State or by the State or by the investment accounts
Comments: European European undertakings or deposit
Not more than Central Bank, Central Bank, meeting the accounts held
10% of the net the World the World legal with banks or
asset value of a Bank, the Bank, the requirements of branches of
pension fund European Bank European Bank the European foreign banks
shall be for for Union) whose
accounted for Reconstruction Reconstruction registered
by and and office is
mortgage Development, Development, in the Slovak
bonds or the or the Republic,
issued by one International International another
bank, or by Monetary Fund, Monetary Fund, Member State
securities may not may not or a non-
where they are constitute more constitute more Member State,
issued by one than 20% of the than 20% of the provided that
foreign bank net asset value net asset value such
that has its of the pension of the pension bank or branch
and their par
value and
yields are
covered by the
110
Bills and
bonds issued
by public
sector Funds funds
administration
bank's
mortgage loan
claims.
Slovak - Privately managed No specific limit No specific limit No specific limit 20% (The value 20% (The value No specific limit 0% (Not 0% (Not No specific limit
Republic mandatory pension (OECD / EU (OECD / EU (OECD / EU of transferable of transferable (shares/units of allowed) allowed) (Funds in a
system - Other types of regulated regulated regulated securities and securities and open-end current account
funds - pension funds markets/ markets/ markets/ money market money market investment or deposit
management European European European instruments instruments funds and account
companies may Economic Area) Economic Economic issued or issued or securities of held with the
establish and manage Area) Area) guaranteed guaranteed foreign depositary or in
other pension funds, by one Member by one Member collective current
and under the rules of Other / State or by the State or by the investment accounts
each such fund Comments: European European undertakings or deposit
the pension funds Not more than Central Bank, Central Bank, meeting the accounts held
management company 10% of the net the World the World legal with banks or
shall either: asset value of a Bank, the Bank, the requirements of branches of
a) undertake to pension fund European Bank European Bank the European foreign banks
replenish the assets of shall be for for Union) whose
the pension fund (in accounted for Reconstruction Reconstruction registered
which case the fund is a by and and office is
'guaranteed mortgage Development, Development, in the Slovak
pension fund'), or bonds or the or the Republic,
b) not undertake to issued by one International International another
replenish the assets of bank, or by Monetary Fund, Monetary Fund, Member State
the pension fund (in securities may not may not or a non-
which case the fund is a where they are constitute more constitute more Member State,
'non- issued by one than 20% of the than 20% of the provided that
guaranteed pension foreign bank net asset value net asset value such
fund’) that has its of the pension of the pension bank or branch
and their par
value and
yields are
covered by the
bank's
mortgage loan
claims.
Slovak - Voluntary personal No specific limit No specific limit No specific limit 35% (Not more 35% (Not more No specific limit 0% (Not 0% (Not No specific limit
111
Bills and
bonds issued
by public
sector Funds funds
administration
Republic pension plans - (OECD / EU (OECD / EU (OECD / EU than 35% of the than 35% of the (OECD / EU allowed) allowed) (Slovak
contributory pension regulated regulated regulated net asset value net asset value regulated Republic/
funds markets/ markets/ markets/ of a of a markets/ foreign banks
European European European supplementary supplementary European incorporated in
Economic Area) Economic Economic pension fund pension fund Economic a Member
Area) Area) may be may be Area) State of the
accounted for accounted for European
Other / by transferable by transferable Union, a
Comments: securities and securities and country that is a
Not more than money market money market member of the
25% of the instruments instruments European
asset value of a issued or issued or Economic Area,
supplementary guaranteed by guaranteed by or a country
pension fund a a that is a
shall be single Member single Member member of the
accounted State, the State, the Organisation
for by mortgage European European for Economic
bonds issued Central Bank, Central Bank, Co-operation
by one bank the European the European and
and Union, Union, Development (
by debt the European the European a “Member
securities Investment Investment State”), or in a
issued by one Bank, the Bank, the non-Member
foreign bank World Bank, World Bank, State that
incorporated in the European the European requires
a Member Bank for Bank for compliance
State, the par Reconstruction Reconstruction with prudential
value and and and business rules
yields of which Development or Development or for banks which
are covered by the the NBS
the bank's International International considers
mortgage loan Monetary Fund) Monetary Fund) equivalent to
claims those applied
by a Member
State)
Slovak - Voluntary personal No specific limit 0% (Not No specific limit 35% (Not more 35% (Not more No specific limit 0% (Not 0% (Not No specific limit
Republic pension plans - pay-out (OECD / EU allowed) (OECD / EU than 35% of the than 35% of the (OECD / EU allowed) allowed) (Slovak
pension funds regulated regulated net asset value net asset value regulated Republic/
markets/ markets/ of a of a markets/ foreign banks
European European supplementary supplementary European incorporated in
112
Bills and
bonds issued
by public
sector Funds funds
administration
Economic Area) Economic pension fund pension fund Economic a Member
Area) may be may be Area) State of the
accounted for accounted for European
Other / by transferable by transferable Union, a
Comments: securities and securities and country that is a
Not more than money market money market member of the
25% of the instruments instruments European
asset value of a issued or issued or Economic Area,
supplementary guaranteed by guaranteed by or a country
pension fund a a that is a
shall be single Member single Member member of the
accounted State, the State, the Organisation
for by mortgage European European for Economic
bonds issued Central Bank, Central Bank, Co-operation
by one bank the European the European and
and Union, Union, Development (
by debt the European the European a “Member
securities Investment Investment State”), or in a
issued by one Bank, the Bank, the non-Member
foreign bank World Bank, World Bank, State that
incorporated in the European the European requires
a Member Bank for Bank for compliance
State, the par Reconstruction Reconstruction with prudential
value and and and business rules
yields of which Development or Development or for banks which
are covered by the the NBS
the bank's International International considers
mortgage loan Monetary Fund) Monetary Fund) equivalent to
claims those applied
by a Member
State)
Slovenia - Pension company No specific limit, Limited to Limited to Limited to Beside
- Mutual pension funds unless investments in investments, investments, investments in
specifically Slovenia or where the head where borrower EEA Member
disclosed EEA country office of the is from EEA States or
fund is in Member State OECD
Slovenia or from OECD countries also
country in other
countries, when
the borrower
113
Bills and
bonds issued
by public
sector Funds funds
administration
has credit
rating at least
BBB or Baa2
Spain - Pension funds: No specific limit
occupational plans (OECD)
- Associated plans
- Personal plans Other /
Comments:
Limit for assets
not admitted to
be traded on a
regulated
market. Only
investments in
OECD countries
is permitted. In
this case,
offshore
investing is
forbidden by the
Law.
Sweden - Friendly societies No specific limit
(World)
Sweden - Life insurance No specific limit
undertakings (World)
Sweden - Providers of No specific limit
occupational retirement (World)
pensions
Switzerland - Second pillar pension No specific limit No specific limit Max. 10% in No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit Max. 30% unhedged
plans (institutions de (World) (World) foreign real (World) (World) (World) (World) (World) (World) exposure in foreign
prévoyance) estate currencies
Turkey - Occupational pension No specific limit
plan: defined benefit, (World)
defined contribution, or
hybrid
- Personal pension
plans: defined
contribution
(unprotected)
United - Occupational pension No specific limit
114
Bills and
bonds issued
by public
sector Funds funds
administration
Kingdom plans (World)
United States - Private pension plans No specific limit For plans sponsored by
- State and local (World) private sector employers
government employee Indicia of ownership
retirement funds must generally be held
- Federal government subject to the provisions
retirement funds of ERISA and
jurisdiction of the courts
of the United States.
Limits regarding
employer related
investments (including
diversification) are also
applicable.
State and local
government plans may
have applicable limits.
Such plans are
governed under state
and local laws, although
these laws are often
based on ERISA.
Albania - Voluntary pension No specific limit 0% (World) 0% (World) 100% (Central 30% (World) 30% (EU 0% (World) 0% (World) 0% (World) -
funds (EU Member European members)
States or OECD Bank, the Other /
countries) European Comments: Other /
Investment 30% in debt Comments:
Bank, the securities with Pension funds
World Bank, a rating of BBB must not hold
EU Member or higher as more than 30%
States or rated by in retail EU
OECD Standard & investment
countries ) Poor’s or Fitch, funds overall,
a rating of Baa3 as long as they
Other / or higher as comply with the
Comments: - rated by supplementary
Limit for bonds Moody’s, a conditions:
issued or rating of BBB i. the assets of
guaranteed by (low) or higher which are
the Central as rated by invested in the
115
Bills and
bonds issued
by public
sector Funds funds
administration
European DBRS following
Bank, the (Dominion indices: CAC
European Bond Rating 40, DAX, FTSE
Investment Service), but no 100, S&P 500,
Bank, the more than 10% Dow Jones
World Bank, in a single Industrial
EU Member issuer. Average, Nikkei
States or 225 (Japan),
OECD Sensex (India),
countries = All Ordinaries
100%; (Australia) and
- Limit for debt Hang Seng
securities with Index (Hong
a rating of BBB Kong); or
or higher as ii. the assets of
rated by which are
Standard & invested in
Poor’s or Fitch, bonds,
a rating of Baa3 Treasury Bills,
or higher as and other
rated by securities
Moody’s, a issued or
rating of BBB guaranteed by
(low) or higher EU Member
as rated by States
DBRS
(Dominion
Bond Rating
Service) = 30%;
- Limit for other
bonds = 0%
Armenia - Mandatory pension No specific limit Equity Max 40% of Bonds, Banks must Max 15% of assets in
fund - balanced funds (World) admitted to assets in admitted to have at least one foreign country
trading on securities trading on “BBB“ (S&P),
regulated issued or regulated “Baa3”
markets which guaranteed by markets which (Moody’s),
are registered, foreign are registered, “BBB“(Fitch)
regulated and governments or regulated and rating.
supervised by foreign central supervised by
the capital banks the capital
116
Bills and
bonds issued
by public
sector Funds funds
administration
market (exclusively market
supervision EU, OECD supervision
authorities of countries) authorities of
the OECD or the OECD or
EU countries EU countries
Armenia - Mandatory pension No specific limit Equity Max 40% of Bonds, Banks must Max 15% of assets in
fund - conservative (World) admitted to assets in admitted to have at least one foreign country
funds trading on securities trading on “BBB“ (S&P),
regulated issued or regulated “Baa3”
markets which guaranteed by markets which (Moody’s),
are registered, foreign are registered, “BBB“(Fitch)
regulated and governments or regulated and rating.
supervised by foreign central supervised by
the capital banks the capital
market (exclusively market
supervision EU, OECD supervision
authorities of countries) authorities of
the OECD or the OECD or
EU countries EU countries
Armenia - Mandatory pension No specific limit Max 40% of Bonds, Banks must Max 15% of assets in
fund - fixed income (World) assets in admitted to have at least one foreign country
funds securities trading on “BBB“ (S&P),
issued or regulated “Baa3”
guaranteed by markets which (Moody’s),
foreign are registered, “BBB“(Fitch)
governments or regulated and rating.
foreign central supervised by
banks (EU, the capital
OECD market
countries) supervision
authorities of
the OECD or
EU countries
Armenia - Voluntary pension No specific limit Only securities Max 40% of EU, OECD Banks must Max 25% of assets in
fund (World) admitted to assets in countries, have at least one foreign country
trading. securities Russian “BBB“ (S&P),
However, it is issued or Federation and “Baa3”
possible to guaranteed by other countries (Moody’s),
have a case foreign that could be “BBB“(Fitch)
where governments or defined by CBA rating.
117
Bills and
bonds issued
by public
sector Funds funds
administration
investment is foreign central
made in a fund banks (EU, Other /
(other than OECD Comments:
those similar to countries, Foreign issuers
UCITS), which Russian (guarantors)
invests in Federation and shall have at
assets not other countries least “BBB“
traded on that could be (S&P), “Baa3”.
market but defined by (Moody’s),
considered as CBA) “BBB-“(Fitch)
liquid asset rating
according to Other /
the Armenian Comments:
Law on Foreign issuers
Investment (guarantors)
Funds. shall have at
least “BBB“
(S&P), “Baa3”.
(Moody’s),
“BBB-“(Fitch)
rating
Botswana All licensed Retirement Not more than Listed: 50% Listed: 10% 50% 0% 30% Private equity: 5%
Funds 90% of the total Unlisted: 5%
fair value of the
portfolio may be
invested in a
combination of
equity and
property.
Same for listed
equity, no single
asset shall
comprise more
than 5% of the
fair value of the
portfolios.
Brazil Closed pension funds Up to 10% Up to10% Up to 10% Up to 10% Up to 10% Up to 10% Up to 10% 0% (World) Up to 10% -
(World) (World). (World) (World) (World) (World) (World) (World)
Other / Other / Other / Other / Other / Other / Other /
118
Bills and
bonds issued
by public
sector Funds funds
administration
Comments: Comments: Comments: Comments: Comments: Comments: Comments:
Closed pension Closed pension Closed pension Closed pension Closed pension Closed pension Closed pension
funds can funds can funds can funds can funds can funds can funds can
invest abroad, invest abroad, invest abroad, invest abroad, invest abroad, invest abroad, invest abroad,
indirectly indirectly indirectly indirectly indirectly indirectly indirectly
through through through through through through through
Brazilian Brazilian Brazilian Brazilian Brazilian Brazilian Brazilian
investment investment investment investment investment investment investment
funds or directly funds. funds. funds funds, but it is funds, but it is funds.
in the BDR necessary to necessary to
classified as observe the observe the
level I. limit of limit of
concentration concentration
per issuer of per issuer of
15% of the net 15% of the net
equity of equity of
funds funds
incorporated incorporated
abroad. abroad.
Brazil Open Pension Fund 10% (World) 7.5% 0% 10% (direct) 5% (direct) 0% 0% 0% 2.5%
Plans) to Qualified Other / Other / Other / Other / Other /
Participants Comments: Comments: Comments: Comments: Comments:
Limits do not This is the This is the This is the This is the
apply to the investment limit investment limit investment limit investment limit
emission´s for Brazilian for bonds for bonds of for term
Place of Issue Depositary issued abroad Brazilian deposits or
but to the Receipts (BDR) by Brazilian companies CDs abroad
existence of Government issued / traded
currency risk abroad.
Brazil Open Pension Fund 10% (World) 7.5% 0% 10% (direct) 5% (direct) 0% 0% 0% 2.5%
Plans) to all other Other / Other / Other / Other / Other /
Participants Comments: Comments: Comments: Comments: Comments:
119
Bills and
bonds issued
by public
sector Funds funds
administration
Brazil Traditional Plans 10% (World) 7.5% 0% 10% (direct) 5% (direct) 0% 0% 0% 2.5%
Other / Other / Other / Other / Other /

Comments: Comments: Comments: Comments: Comments:
Bulgaria - Supplementary - Generally no Limit for the - No specificLimit of shares Not allowed Not allowed -
mandatory universal specific limit in rest of the limit for theof special (World) (World)
pension funds (UPF) EU countries, in world = 10% bonds traded investment
- Supplementary non-EU only for bonds on a regulated
purpose
mandatory professional countries admitted to market. companies
pension funds (PPF) specified in an trading in a fordebt
ordinance of the regulated - Infrastructure securitisation =
national market in a EU bonds not 0%
competent country. admitted to
authority. trading on a
- Limit in the regulated
rest of the world market, non-EU
= 0%, except and ROW = 0%
bills and bonds - Secured
issued by public corporate
administration. bonds not
- Generally the admitted to
foreign trading on a
investments are regulated
not treated market = 0%
differently than
the domestic.
Bulgaria - Supplementary - Generally no Limit for the - No specific Limit of shares Not allowed Not allowed -
voluntary pension funds specific limit in rest of the limit for the of special (World) (World)
with occupational EU countries, in world = 10% bonds traded investment
schemes (VPFOS) non-EU only for bonds on a regulated purpose
countries admitted to market. companies for
120
Bills and
bonds issued
by public
sector Funds funds
administration
specified in an trading in a debt
differently than
the domestic.
Bulgaria - Supplementary - Generally no Limit for the - No specific Limit of shares Not allowed Not allowed -
voluntary pension funds specific limit in rest of the limit for the of special (World) (World)
(VPF) EU countries, in world = 10% bonds traded investment
non-EU only for bonds on a regulated purpose
countries admitted to market. companies for
specified in an trading in a debt
differently than
the domestic.
Colombia - Conservative Fund 40% (World) 20% (World)
121
Bills and
bonds issued
by public
sector Funds funds
administration
Other / Other /
Comments: Comments:
There is no This is a global
specific limit for limit for both
each type of national and
investment foreign equity.
issued
overseas.
Nevertheless,
these
investments
must be rated
investment
grade.
Colombia - Moderate Fund 60% (World) 45% (World) The sum of The sum of other foreign
investments in investments such as
Other / Other / local and hedge funds, REITs and
Comments: Comments: foreign private index funds linked to
There is no This is a global equity funds commodity prices, along
specific limit for limit for both have a 10% with local and foreign
each type of national and limit. private equity funds
investment foreign equity. have a 20% limit.
issued
overseas.
Nevertheless,
these
investments
must be rated
investment
grade.
Colombia - Great Risk Fund 70% (World) 70% (World) The sum of The sum of other foreign
investments in investments such as
Other / Other / local and hedge funds, REITs and
Comments: Comments: foreign private index funds linked to
There is no This is a global equity funds commodity prices, along
specific limit for limit for both have a 15% with local and foreign
each type of national and limit. private equity funds
investment foreign equity. have a 25% limit.
issued
122
Bills and
bonds issued
by public
sector Funds funds
administration
overseas.
Nevertheless,
these
investments
must be rated
investment
grade.
Colombia - Programmed 40% (World) 20% (World)
Retirement Fund
Other / Other /
Comments: Comments:
There is no This is a global
specific limit for limit for both
each type of national and
investment foreign equity.
issued
overseas.
Nevertheless,
these
investments
must be rated
investment
grade.
Costa Rica Private Pensions 50% (World) 0% (World) 0% (World) 50% (Total 50% (Total 10% (Direct) 0% (World) 0% (World) Pension funds
System: Mandatory exposure) exposure) cannot invest in
pension funds (ROP) Other / bank deposits
Comments: Other / Other / abroad.
Not direct Comments: Comments:
investments - Investment - Investment
allowed in grade grade
equities, but
through e.g. - Limit for AAA - Limit for AAA
ETFs or index rated = 50%; rated = 50%;
funds. - Limit for AA - Limit for AA
rated = 25%; rated = 25%;
- Limit for A - Limit for A
- Limit for BBB - Limit for BBB
rates = 5% rates = 5%
123
Bills and
bonds issued
by public
sector Funds funds
administration
System: Voluntary exposure) exposure) cannot invest in
Other / bank deposits
Comments: Other / Other / abroad.
Not direct Comments: Comments:
investments - Investment - Investment
allowed in grade grade
equities, but
through e.g. - Limit for AAA - Limit for AAA
ETFs or index rated = 50%; rated = 50%;
funds. - Limit for AA - Limit for AA
- Limit for A - Limit for A
- Limit for BBB - Limit for BBB
rates = 5% rates = 5%
System: Special exposure) exposure) cannot invest in
Occupational Other / bank deposits
complementary Comments: Other / Other / abroad.
pensions funds (DB: Not direct Comments: Comments:
Lotery, FRE, ICE and investments - Investment - Investment
DC: BCAC Ind, BCAC allowed in grade grade
Col, ICT, BCR and equities, but - Limit for AAA
Hybrid: BNCR). through e.g. rated = 50%; - Limit for AAA
ETFs or index - Limit for AA rated = 50%;
funds. rated = 25%; - Limit for AA
- Limit for A rated = 25%;
rated = 15%; - Limit for A
- Limit for BBB rated = 15%;
rates = 5% - Limit for BBB
rates = 5%
Croatia Mandatory pension Investment only
fund permitted in
Category A Republic of
Croatia, EU and
OECD
securities
fund permitted in
Category B Republic of
124
Bills and
bonds issued
by public
sector Funds funds
administration
Croatia, EU and
OECD
securities
fund permitted in
Category C Republic of
Croatia, EU and
OECD
securities
Croatia Open-ended voluntary Investment only
pension fund permitted in
Republic of
Croatia, EU and
OECD
securities
Croatia Closed-ended voluntary Investment only
pension fund permitted in
Republic of
Croatia, EU and
OECD
securities
Dominican 0% (World)
Republic
Egypt Defined benefit and Not allowed to
defined contribution invest in foreign
pension funds assets
Gibraltar - Occupational pension No specific limit 0% (World)
schemes (World)
Other /
Comments:
The purchase
of residential
property
prohibited
except in
Gibraltar and
other than for
the beneficial
occupation by
proprietary
125
Bills and
bonds issued
by public
sector Funds funds
administration
directors or
their relatives.
Guernsey Private Occupational No specific limit
Pension Schemes
Guernsey Private Personal No specific limit
Pension Schemes
Hong Kong, - Mandatory providentAt least 30% of REITs listed in 0% 0%
China fund (MPF) schemes a fund must be HK or on
held in Hong approved stock
Kong dollar exchange in
currency Australia, the
investments, United
e.g. currency Kingdom or the
forward United States
contracts to buy of America.
Hong Kong
dollars. (World)
India - Central and State 0% (World).
Government Pension Pension funds
- National Pension cannot invest
System- Government abroad. It is
- National Pension prohibited by
System-Swavalamban PFRDA Act
2013.
India - National Pension 0% (World).
System- Private Pension funds
cannot invest
abroad. It is
prohibited by
PFRDA Act
2013.
Indonesia Approved Employer 5% (World). 0% (World) 0% (World) 0% (World) 0% (World) 0% (World) 5% (World) and 0% (World) 0% (World)
Pension Funds, Private pension should be
Approved Financial funds in approved by
Institution Pension Indonesia can OJK
Funds only invest off-
shore in direct
equity
investment (own
shares of
126
Bills and
bonds issued
by public
sector Funds funds
administration
foreign
company).
Jamaica - Approved 20% (Canada, 20% (Canada, 0% (World) 20% (Canada, 20% (Canada, 20% (Canada, 20% (Canada, 0% (World) 20% (Canada,
Superannuation Fund the United the United the United the United the United the United the United
- Approved Retirement States of States of States of States of States of States of Other / States of
Scheme America, the America, the America, the America, the America, the America, the Comments: America, the
United Kingdom United United United United United Mortgage United
or any other Kingdom or any Kingdom or any Kingdom or any Kingdom or any Kingdom or any Loans are not Kingdom or any
country other country other country other country other country other country allowed other country
declared as a declared as a declared as a declared as a declared as a declared as a declared as a
recognised recognised recognised recognised recognised recognised recognised
jurisdiction by jurisdiction by jurisdiction by jurisdiction by jurisdiction by jurisdiction by jurisdiction by
the Financial the Financial the Financial the Financial the Financial the Financial the Financial
Services Services Services Services Services Services Services
Commission) Commission) Commission) Commission) Commission) Commission) Commission)
Other / Other /
Comments: Comments:
Credit rating of Issues of
government foreign
must be "A" or corporations
equivalent should not have
been in default
during the five
years prior to
acquisition
Jordan - Voluntary private 10% (Not rated, Investments of net
pension plans provided low rated) technical provisions are
by life insurance limited to certain types
companies of investments: A- Cash
& current accounts. B-
Deposits and certificates
of deposit. C- Bonds
issued or guaranteed by
the Jordanian
Government and local
Treasury bonds. D-
Foreign bonds,
subordinated loans and
deposits at foreign
127
Bills and
bonds issued
by public
sector Funds funds
administration
banks rated listed within
group one. E- Local
listed shares and foreign
shares rated within
group one, Max. (20%)
of the total technical
provisions for life
assurance business. F-
Investment funds rated
within group one or
capital guaranteed
funds by an entity rated
within group one. G-
Loan's to life
policyholders not
exceeding the surrender
value of each policy. H-
Property investments,
Max. (20%) of Net
technical provisions and
Max. (30%) of Net.
technical provisions for
Takaful insurance
companies.
Jordan - Voluntary private 30% (Not rated, Investments of net
pension plans provided low rated) technical provisions are
by Takaful insurance limited to certain types
companies Other / of investments: A- Cash
Comments: & current accounts. B-
Limit for foreign Deposits and certificates
equity = 30%, of deposit. C- Bonds
provided non- issued or guaranteed by
listed the Jordanian
investments do Government and local
not exceed Treasury bonds. D-
(10%) of equity. Foreign bonds,
subordinated loans and
deposits at foreign
banks rated listed within
group one. E- Local
128
Bills and
bonds issued
by public
sector Funds funds
administration
listed shares and foreign
shares rated within
group one, Max. (20%)
of the total technical
provisions for life
assurance business. F-
Investment funds rated
within group one or
capital guaranteed
funds by an entity rated
within group one. G-
Loan's to life
policyholders not
exceeding the surrender
value of each policy. H-
Property investments,
Max. (20%) of Net
technical provisions and
Max. (30%) of Net.
technical provisions for
Takaful insurance
companies.
Kazakhstan Unified accumulative 50% 20% 0% (not 50% 30% 0% (not 0% (not 0% (not 50%
pension fund allowed) allowed) allowed) allowed)
Kazakhstan Voluntary accumulative less than 25% 0% 0% less than 50% 0% 0% 0% 0% Since 2013, the Unified
pension funds of the equity of the Fund’s Accumulation Pension
capital of the own assets Fund was established in
issuer Kazakhstan and all
private accumulative
pension funds’ assets
were transferred to it.
Legislation on pension
funds provides for the
possibility of creating
voluntary accumulative
pension funds in
Kazakhstan. However
from 2013 to the
present, not a single
voluntary fund has been
129
Bills and
bonds issued
by public
sector Funds funds
administration
established
Kenya - Occupational 15% 90%
Retirement Benefits
Schemes Other / Other /
- Individual Retirement Comments: This Comments:
Benefits Schemes limit refers to This limit refers
- Umbrella Retirement bank deposits, to East African
Benefits Schemes government Community
- National Social securities, Government
Security Fund (NSSF) quoted equities Securities, and
and rated is a joint limit
Corporate with Kenyan
Bonds or government
collective securities.
investment
schemes
reflecting these
assets.
Kosovo - Mandatory pension No specific limit
fund (OECD
countries)
Other /
Comments: -
Investments
only permitted
in OECD
securities.
Kosovo - Voluntary pension No specific limit
fund (OECD
countries)
Other /
Comments: -
Investments
only permitted
in OECD
securities.
Liechtenstein Defined Contribution No specific limit No specific limit 10% outside of No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit
Plans (EEA) the EEA and
130
Bills and
bonds issued
by public
sector Funds funds
administration
Defined Benefit Plans Switzerland
Pension Funds
Malawi Defined contributions No limit except There is a draft Directive
occupational pension that Pension on investment of
funds; and Defined Funds must pension funds which
Benefit occupational meet foreign places a limit of 15% on
pension funds exchange foreign investments of
control pension funds.
regulations
Maldives - Maldives Retirement No specific limit Maldives Retirement
Pension Scheme Pension Scheme has
Other / not yet started investing
Comments: in any foreign assets,
Maldives hence no limit has yet
Retirement been set for foreign
Pension investments.
Scheme has not
yet started
investing in any
foreign assets,
hence no limit
has yet been
set for foreign
investments.
Malta - Occupational - Limit for Limit for assets - Limit for - Limit for 100% subject 0% 0% No limit (i.e.
Retirement Schemes securities which in immovable securities which securities which to various 100%)
are not traded property = 30% are not traded are not traded criteria Other /
in or dealt on a subject to: in or dealt on a in or dealt on a Comments: A
regulated regulated regulated pension fund
market = 30% Direct market = 30% market = 30% shall not grant
investment in loans or act as
Limit for commercial Limit for Limit for guarantor on
securities immovable securities securities behalf of a third
traded on property = 10% traded on traded on party. This is
regulated regulated regulated without
markets = no Direct markets = no markets = no prejudice to the
limit (i.e.100%) investment in limit (100%) limit (100%) right of the
residential Scheme to
immovable acquire debt
property = 5% securities.
131
Bills and
bonds issued
by public
sector Funds funds
administration
Indirect
investment in
commercial or
residential
immovable
property = 10%
Malta - Personal Retirement No specific limit 0% for No specific investment
Schemes members or limits are imposed by
connected the rules other than a
persons requirement to ensure
100% as long that the assets of the
as the loan is pension fund shall be
not to the properly diversified in
member or such a way as to avoid
connected accumulations of risk in
persons the portfolio as a whole.
Mauritius - Occupational 70% (World) Limit per issuer Limit per issuer
Voluntary Pension for foreign for foreign
Schemes Other / listed sovereign =
- Non-occupational Comments: equities=10% 20%
(Personal) Voluntary There is no limit
Pension Schemes for external
pension
schemes
(external
pension
schemes are
schemes which
hold a Global
Business
Category 1
licence).
Namibia All registered pension 57.5% (Outside 10% of None specified 50% Aggregate 50% Aggregate
funds Namibia) domestic in foreign in foreign
assets bonds both bonds both
Other / consisting of public and public and
Comments: shares in private (Outside private (Outside
Minimum of companies Namibia) Namibia)
42.5% is incorporated
132
Bills and
bonds issued
by public
sector Funds funds
administration
required to be outside Other / Other /
invested in Namibia. Comments: - A Comments: - A
domestic maximum of maximum of
assets. - Maximum of 40% per foreign 10% per foreign
5% per issuer government. institution
Maximum of in the Common
35% allowed to Monetary Area
be invested with market
outside the capitalisation of
common N$5 000 million
monetary area. or less.
- Maximum of
10% per issuer
in the Common
Monetary Area
with market
capitalisation
greater than
N$5 000
million.
- Maximum of
5% per issuer
outside the
Common
Monetary Area
with market
capitalisation of
N$5 000 million
or less.
- Maximum of
10% per issuer
outside the
Common
Monetary Area
with market
capitalisation of
more than N$5
000 million.
133
Bills and
bonds issued
by public
sector Funds funds
administration
Nigeria - Defined Contribution 0% (World) -
Pension Scheme
Nigeria - Defined Benefit 0% (World) Based on the Based on the These are legacy
Pension Scheme Internal Internal Schemes that were in
Investment Investment existence prior to the
Guidelines/ Guidelines/ commencement of the
Policies of the Policies of the DC Scheme and have
Individual Individual been allowed to
Schemes Schemes continue. Some of the
DB Schemes have
investments in foreign
assets but the global
limits are based on the
Internal Investment
Guidelines/ Policies of
the individual Schemes.
North - Mandatory open No more than 30% (EU and 0% (World) 50% (EU, 30% (EU and 30% (EU and 0% (World) 0% (World) 0% (World) -
Macedonia pension fund 50% of the OECD OECD OECD OECD
value of the members) members) members) members)
assets of the
mandatory Other / Other / Other / Other /
pension fund Comments: Comments: Comments: Comments:
may be invested 30% = Total 50% = Total 30% = Total 30% = Total
in instruments limit for limit for bonds limit for limit for
issued by a investment in and other investment in investment in
foreign issuer debt securities securities debt securities debt securities
outside the of non-state issued by of non-state of non-state
Republic of foreign foreign foreign foreign
Macedonia. companies or Governments companies or companies or
Allowed banks, in or central banks, in banks, in
countries shares and in banks + shares and in shares and in
abroad are participation securities participation participation
members of the units, shares, issued by non- units, shares, units, shares,
EU or OECD. and other state foreign and other and other
securities companies, securities securities
issued by banks or issued by issued by
authorized investment authorized authorized
open-end and funds in open-end and open-end and
closed-end member states closed-end closed-end
investment of the EU or investment investment
134
Bills and
bonds issued
by public
sector Funds funds
administration
funds OECD funds funds
established in established in established in
EU members EU members EU members
and OECD and OECD and OECD
members. members. members.
North - Voluntary open No more than 30% (EU and 0% (World) 50% (EU, 30% (EU and 30% (EU and 0% (World) 0% (World) 0% (World) -
Macedonia pension fund 50% of the OECD OECD OECD OECD
value of the members) members, ECB, members) members)
assets of the EIB, and World
mandatory Other / Bank) Other / Other /
pension fund Comments: Comments: Comments:
may be invested 30% = Total Other / 30% = Total 30% = Total
in instruments limit for Comments: limit for limit for
issued by a investment in 50% = Total investment in investment in
foreign issuer debt securities limit for bonds debt securities debt securities
outside the issued by the and other issued by the issued by the
Republic of local – self securities local – self local – self
Macedonia. government, issued by government, government,
Allowed debt securities foreign debt securities debt securities
countries of non-state Governments of non-state of non-state
abroad are foreign or central foreign foreign
members of the companies or Banks, other companies or companies or
EU or OECD. banks, in debt securities banks, in banks, in
shares and in by ECB, EIB shares and in shares and in
participation and WB, debt participation participation
units, shares, securities units, shares, units, shares,
and other issued by the and other and other
securities local-self securities securities
issued by government, , issued by issued by
authorized securities authorized authorized
open-end and issued by non- open-end and open-end and
closed-end state foreign closed-end closed-end
investment companies, investment investment
funds banks or funds funds
established in investment established in established in
EU members funds in EU members EU members
and OECD member states and OECD and OECD
members. of the EU or members. members.
OECD
Pakistan - Private pension funds No specific limit
135
Bills and
bonds issued
by public
sector Funds funds
administration
under VPS - equity sub- (World)
fund
Other /
Comments:
Regulations are
silent on foreign
investments
(neither prohibit
nor allow),
however no
pension fund
manager has
approached
SECP for
investment in
foreign assets.
If a request is
received, SECP
will consider it
on merit.
under the Voluntary (World)
Pension System (VPS)
- debt sub-fund Other /
Comments:
Regulations are
silent on foreign
investments
(neither prohibit
nor allow),
however no
pension fund
manager has
approached
SECP for
investment in
foreign assets.
If a request is
received, SECP
will consider it
136
Bills and
bonds issued
by public
sector Funds funds
administration
on merit.
- money market sub- Other /
fund Comments:
Regulations are
silent on foreign
investments
(neither prohibit
nor allow),
however no
pension fund
manager has
approached
SECP for
investment in
foreign assets.
If a request is
received, SECP
will consider it
on merit.
- commodity sub-fund Other /
Comments:
Regulations are
silent on foreign
investments
(neither prohibit
nor allow),
however no
pension fund
manager has
approached
SECP for
investment in
foreign assets.
If a request is
137
Bills and
bonds issued
by public
sector Funds funds
administration
received, SECP
will consider it
on merit.
Papua New 35% When an authorised
Guinea superannuation fund
wishes to exceed the
maximum of 35%, the
Trustee Board must
request prior approval in
writing from the Bank for
increasing the exposure
to a higher percentage.
Peru - All AFPs, Protective 50% (World) 0% (direct and 0% (direct and No specific limit No specific limit 0% 0% 0% No specific limit
Fund (Fund 0) indirect) indirect) (World) (World) (World)
Other /
Comments: This Other / Other / Other /
limit refers to Comments: - Comments: - Comments:
the sum of the There is no There is no There is no
values of all the specific limit for specific limit for specific limit for
Funds managed foreign fixed foreign fixed foreign Bank
by a single AFP. income. It is income. It is Deposits, as it
considered as considered as is deemed
“Bills and “Bills and within Short
bonds”. bonds”. Term
Securities.
Peru - All AFPs, 50% (World) No specific limit 0% (World) No specific limit No specific limit No specific limit 0% (World) 0% (World) No specific limit -
Conservative Fund (World) (World) (World) (World) (World)
(Fund 1) Other / Other / Other /
Comments: This Other / Other / Other / Other / Comments: - Comments: - Other /
limit refers to Comments: - Comments: - Comments: - Comments: - There is no Direct Comments:
the sum of the There is no There is no There is no The amount specific limit for Investments There is no
values of all the specific limit for specific limit for specific limit for invested in foreign private are prohibited specific limit for
Funds managed foreign equity. foreign fixed foreign fixed each fund is investment on loans, foreign Bank
by a single AFP. It is considered income. It is income. It is considered in funds. It is except in case Deposits, as it
as “Equity considered as considered as the Equity, considered as of investments is considered
Securities”. “Bills and “Bonds”. Fixed Income, “Private done by within Short
bonds”. or Short Term Investment Mezzanine Term
limit, according funds”. Funds. Securities.
to the dominant
asset class in
138
Bills and
bonds issued
by public
sector Funds funds
administration
its portfolio.
Peru - All AFPs, Mixed Fund 50% (World) No specific limit 0% (World) No specific limit No specific limit No specific limit No specific limit 0% (World) No specific limit -
(Fund 2) (World) (World) (World) (World) (World) (World)
Comments: This Other / Comments: - Other / Other / Other / Other / Comments: - Other /
limit refers to Comments: - There is no Comments: - Comments: - Comments: - Comments: - Direct Comments:
the sum of the There is no specific limit for There is no There is no The amount There is no Investments There is no
values of all the specific limit for foreign Real specific limit for specific limit for invested in specific limit for are prohibited specific limit for
Funds managed foreign equity. Estate. It is foreign fixed foreign fixed each fund is foreign private on loans, foreign Bank
by a single AFP. It is considered considered as income. It is income. It is considered in investment except in case Deposits, as it
as “Equity “Real Estate”. considered as considered as the Equity, funds. It is of investments is considered
Securities”. “Bills and “Bonds”. Fixed Income, considered as done by within Short
bonds”. or Short Term “Private Mezzanine Term
limit, according Investment Funds. Securities.
to the dominant funds”.
asset class in
its portfolio.
Peru - All AFPs, Growth 50% (World) No specific limit 0% (World) No specific limit No specific limit No specific limit No specific limit 0% (World) No specific limit -
Fund (Fund 3) (World) (World) (World) (World) (World) (World)
Comments: This Other / Comments: - Other / Other / Other / Other / Comments: - Other /
limit refers to Comments: - There is no Comments: - Comments: - Comments: - Comments: - Direct Comments:
the sum of the There is no specific limit for There is no There is no The amount There is no Investments There is no
values of all the specific limit for foreign Real specific limit for specific limit for invested in specific limit for are prohibited specific limit for
Funds managed foreign equity. Estate. It is foreign fixed foreign fixed each fund is foreign private on loans, foreign Bank
by a single AFP. It is considered considered as income. It is income. It is considered in investment except in case Deposits, as it
as “Equity “Real Estate”. considered as considered as the Equity, funds. It is of investments is considered
Securities”. “Bills and “Bonds”. Fixed Income, considered as done by within Short
bonds”. or Short Term “Private Mezzanine Term
limit, according Investment Funds. Securities.
to the dominant funds”.
asset class in
its portfolio.
Romania - Private pension fund - No specific limit The limits are
second pillar (World) established for each
asset class.
Other /
Comments: No
specific limits on
investments in
139
Bills and
bonds issued
by public
sector Funds funds
administration
foreign assets.
The limits are
established for
each asset
class.
Romania - Private pension fund - No specific limit The limits are
third pillar (World) established for each
asset class.
Other /
Comments: No
specific limits on
investments in
foreign assets.
The limits are
established for
each asset
class.
Russian - Mandatory funded 20 % of total 0% (World) 0% (World) 0% (World) 20% (World) 0% (World) 0% (World) 0% (World) 0% (World) It’s also allowed to
Federation pillar, default option portfolio invest pension savings
in foreign currency and
Securities of keep savings in foreign
international currency on deposits up
financial to 80% of total portfolio
organisations
Russian - Mandatory funded 0% (World) It’s allowed to invest
Federation pillar, conservative pension savings in
option (introduced in foreign currency and
2009) keep savings in foreign
currency on deposits up
to 80% of total portfolio
Russian - Mandatory funded 20% of total 0% (World) 0% (World) 0% (World) 20% (World) 0% (World) 0% (World) 0% (World) 0% (World) It’s allowed to invest
Federation pillar, life annuities portfolio pension savings in
portfolio foreign currency and
organisations
Russian - Mandatory funded 20% of total 0% (World) 0% (World) 0% (World) 20% (World) 0% (World) 0% (World) 0% (World) 0% (World) It’s allowed to invest
Federation pillar, term annuities portfolio. pension savings in
portfolio foreign currency and
140
Bills and
bonds issued
by public
sector Funds funds
administration
organisations
Russian Mandatory funded pillar 20% (World) 0% (World) 0% (World) 0% (World) 20% (World) 0% (World) 0% (World) 0% (World) 0% (World) It’s allowed to invest
Federation pension savings in
Investment portfolios Other/ foreign currency and
chosen by participants Comments: keep savings in foreign
currency on deposits up
Securities of to 80% of total portfolio.
international
financial Total proportion of
organisations securities of
international financial
organisations and
units(shares) of foreign
index investment funds
must not exceed 20% of
portfolio value
Russian - Mandatory funded 20% (World) 0% (World) 0% (World) 0% (World) 20% (World) 20% (World) 0% (World) 0% (World) 0% (World) Total proportion of
Federation pillar securities of
Non-state pension Other / international financial
funds Comments: organisations and units
Bonds of (shares, participatory
foreign issuers, interests) of foreign
if the index investment funds
prospectus shall not exceed 20% of
indicates that total portfolio value.
the proceeds
from the bond It is also allowed to
placement go invest pension savings
to a Russian in foreign currency (see
entity, or Table 3a, Limits on
indicates that a foreign currency
Russian entity exposure) and keep
is jointly and foreign currency on
severally liable deposits in eligible credit
for the bonds. institutions.
Russian - Voluntary pension 30% (World) 30% (World) 0% (World) 30% (World) 30% (World) 30% (World) 30% (World) 0% (World) 0% (World) Total proportion of
Federation plan securities of foreign
141
Bills and
bonds issued
by public
sector Funds funds
administration
governments, securities
of international financial
organisations, shares of
foreign joint-stock
companies, bonds of
foreign commercial
organisations and
shares (equity interest)
of foreign investment
funds shall not exceed
30% of pension
reserves.
It is also allowed to
invest pension reserves
in foreign currency on
deposits and accounts
in banks which are
included in the deposit
insurance system.
Serbia Voluntary pension 10% (World) 10% (listed 0% 10% (World) 10% (World) 5% for 0% 0% 0% Up to 10% may be
funds shares traded investment invested in depositary
on stock Other / Other / units of open receipts issued by
exchanges of Comments: Comments: investment banks headquartered in
EU or OECD Credit rating of Must be traded funds (EU or EU or OECD member
member states) this securities on stock OECD member states, based on
or of their exchanges and states) following deposited
Other / issuer must be credit rating of securities: securities
Comments: no less than ‘A’ this securities Other / issued by international
Shares must as established or of their Comments: financial institutions,
meet following by issuer must be Open-end debt securities issued
conditions: Standard&Poor' no less than ‘A’ investment by foreign governments
– issuer of s and Fitch- as established funds must or foreign legal entities
shares must be IBCA, or no by meet the and shares of foreign
headquartered less than ‘A2’ Standard&Poor' following legal entities.
in EU/OECD as established s and Fitch- conditions:
member states; by Moody’s. IBCA, or no – net assets of
– shares must less than ‘A2’ the open-end
be officially as established investment fund
quoted on stock by Moody’s. must be no less
142
Bills and
bonds issued
by public
sector Funds funds
administration
exchanges for than EUR
at least one 100,000,000;
year; – Investment
– market fund
capitalisation of management
these shares company is not
must be no less a related party
than EUR of the VPF
300,000,000. management
company,
custody bank,
broker-dealer
company or
shareholder of
the VPF
management
company;
– investment
policy of the
open-end
investment fund
must envisage
exclusively
investment
meeting the
conditions
prescribed by
the investment
policy of the
VPF whose
assets are
invested;
– the
management
company or the
open-
investment fund
managed by
the
management
company are
143
Bills and
bonds issued
by public
sector Funds funds
administration
not registered
in off-shore
zones.
Seychelles - Seychelles Pension
Fund
South Africa - Pension fund 25% (Listed 25% (overall 25% (overall Maximum of Maximum of - Maximum of - Maximum Not allowed - Maximum of
established for public instruments - limit) limit) 30% of the total 30% of the total 25% of the total overall limit for 30% in
servants, for parastatal listed on an Listed fair value of the fair value of the fair value of the Hedge funds aggregate
institutions established exchange that is preference assets of a assets of a assets of a and Private - An additional
by special laws a full member of shares, fund. fund. fund. Equity funds of allocation of
- Occupational Pension the World ordinary shares An additional An additional - CIS and 15% 10% of the total
funds Federation of and linked units allocation of allocation of Insurance Hedge Funds fair value of
- Umbrella funds/Multi- Exchanges) 10% of the total 10% of the total Policies – Look or fund of assets can be
employer funds fair value of fair value of through hedge funds a invested in
- Retirement Annuity Other / assets can be assets can be principle maximum limit African
Funds Comments: invested in invested in applies and of 10% countries (In a
- Preservation funds Maximum of African African underlying bank that is not
25% of the total countries (- countries (- investments - An additional a South African
fair value of the Listed Listed must be allocation of Bank and is
assets of a instruments - instruments - compliant with 10% of the total domiciled ,
fund. listed on an listed on an the relevant fair value of registered and
An additional exchange that exchange that categories of assets can be supervised as a
allocation of 5% is a full member is a full member assets (-Listed invested in bank outside of
of the total fair of the World of the World instruments - African South Africa)
value of assets Federation of Federation of listed on an countries (No
can be invested Exchanges ) Exchanges) exchange that limit)
in African is a full member
countries Other / of the World
Comments: - Federation of
Limited to 10% Exchanges;
on bills, bonds - where a fund
and securities invests in a
issued or collective
guaranteed by investment
a foreign scheme, an
government exchange as
referred to in
I18Section
45(b)(ii) of the
Collective
144
Bills and
bonds issued
by public
sector Funds funds
administration
Investment
Schemes
Control Act,
2002 or such
other
exchanges as
approved by
the Registrar)
Suriname Voluntary Company Securities: local see equity see equity Maximum 20% No ceilings
pension funds and foreign of total assets
max. 60% of
total assets. No
rules for the
composition of
the securities
portfolio. No
rules for the
composition of
the securities
portfolio.
Tanzania All mandatory and According to the
supplementary social social security
security schemes and schemes
Fund Managers investment
operating in Tanzania guidelines 2015,
mainland Off-shore
investment by
the schemes
shall be in
accordance
with, and
governed by the
Foreign
Exchange Act
and
Regulations,
Directives and
Rules issued by
the Bank from
time to time, in
145
Bills and
bonds issued
by public
sector Funds funds
administration
this case
offshore
investments
have only been
allowed for east
Africa region.
Thailand - Provident fund 100% but No limit but Investments
subject to the issuer limit only permitted
following applies for in 15 countries
conditions: foreign listed below as
- Securities government specified in the
must be bonds as SEC guideline:
regulated by follows: 1) Australia
regulator that is (i) no issuer 2) China
an IOSCO limit if foreign 3) France
member, government 4) Germany
including bonds are rated 5) Hong Kong
Cambodia, Lao the first 2 (China)
PDR and highest credit 6) Ireland
Myanmar; rating; 7) Japan
- Listed (ii) issuer limit 8) Liechtenstein
instruments ≤35% if foreign 9) Luxembourg
must be listed government 10) Malaysia
on an exchange bonds are rated 11) New
that is a full investment Zealand
member of the grade (except 12) Singapore
World the first 2 13) Korea
Federation of highest credit 14) UK
Exchanges. rating). 15) USA
Trinidad and All Occupational 20% (World) 50% limit on For each specific foreign
Tobago Pension Plans total equities asset class, there is no
Other / (local and limit. However, total
Comments: foreign foreign assets must not
90% of equities) where exceed 20% of total
investments the pension assets.
held in member plan is less
countries of than 150%
CARICOM is funded (as
considered as certified by the
foreign assets, actuaries) and
146
Bills and
bonds issued
by public
sector Funds funds
administration
while the 70% limit where
remaining 10% the pension
of investments plan is over
in CARICOM 150% funded
countries is (as certified by
considered as the actuaries)
local assets.
Uganda
Ukraine 20% (World)
Uruguay Mandatory personal 15% 0% 0% 15% 0% 0% 0% 0% 0%
pension funds: defined
contribution Only to be Sovereign risk
Fund A – Workers invested in with AA- and
under 55 years old sovereign risk above credit
with credit rating rating
AA- and above
and multilateral This limit is for
international the sum of
credit sovereign
organisations bonds and
(IADB,WB,IMF) international
credit
organisations
bonds
(IADB,WB,IMF)
Uruguay Mandatory personal 20% 0% 0% 20% 0% 0% 0% 0% 0%
pension funds: defined
contribution Only to be Sovereign risk
Fund B – Workers over invested in with AA- and
55 years old sovereign risk above credit
with credit rating rating
AA- and above
and multilateral This limit is for
international the sum of
credit sovereign
organisations bonds and
(IADB,WB,IMF) international
credit
Maturity limit of organisations
147
Bills and
bonds issued
by public
sector Funds funds
administration
up to five years bonds
(IADB,WB,IMF)
Maturity limit of
up to five years
Zambia 30% (World) Not more than 0% (World) Not more than A pension fund shall not
30% of its fund 30% of its fund invest in derivatives,
Other / size outside the size outside the hedge funds or any
Comments: Not Republic as Republic as other speculative
more than 30% may be may be investments.
of its fund size authorised by authorised by
outside the the Minister the Minister
Republic as under the Act. under the Act.
may be No investment
authorised by in property
the Minister outside the
under the Act. Republic.
148
Table 3.a: Investment limits in single issuer/issue by asset categories
Bills and
bonds issued
Country Funds / Plans Equity Real Estate by the private Investment Investment Loans Bank deposits Other comments
by public
sector Funds funds
administration
Australia - Occupational trustee managed 100% 100% 100% 100% 100% 100% 100% 100% Superannuation funds
superannuation fund: corporate; are not permitted to
- Occupational trustee managed Other / Other / Other / Other / Other / Other / Other /
Other / invest more than five per
superannuation fund: industry Comments: Comments: Comments: Comments: Comments: Comments: Comments:
Comments: cent of their assets in in-
- Trustee managed public offer None, but None, but None, but None, but None, but None, but None, but
None, but house assets, subject to
superannuation fund: retail funds trustees must trustees must trustees must trustees must trustees must trustees must trustees must
trustees must some exceptions.
- Trustee managed superannuation consider consider consider consider consider consider consider
consider
fund: small APRA funds diversification in diversification in diversification in diversification in diversification in diversification in diversification in
diversification in
- Trustee managed superannuation making asset making asset making asset making asset making asset making asset making asset
making asset
fund: self-managed superannuation allocation. allocation. allocation. allocation. allocation. allocation. allocation.
allocation.
fund (SMSFs) MySuper MySuper MySuper MySuper MySuper MySuper MySuper
MySuper
- Public sector occupational products must products must products must products must products must products must products must
products must
pension plans, often compulsory for have a single have a single have a single have a single have a single have a single have a single
have a single
public sector employees diversified or diversified or diversified or diversified or diversified or diversified or diversified or
diversified or
- Trustee managed superannuation lifecycle lifecycle lifecycle lifecycle lifecycle lifecycle lifecycle
lifecycle
fund: approved deposit fund investment investment investment investment investment investment investment
investment
strategy. strategy. strategy. strategy. strategy. strategy. strategy.
strategy.
Austria - occupational pension funds 5% 5% 100% 5% 5% 5% 5%
25% - The Pensionskassen
(Pensionskassen) may operate several
Other / Other / Other / Other / Other / Other / Other / Other / investment and risk
Comments: - Comments: - Comments: The Comments: - Comments: - Comments: - Comments: - Comments: sharing groups ("support
Limit for issuer Limit for issuer limit of 5% of Limit for issuer Limit for issuer Limit for issuer Limit for issuer Bank deposits funds"), provided that
which does not which does not investments in a which does not which does not which does not which does not held at a single they are operated for at
belong to any belong to any single issuer is belong to any belong to any belong to any belong to any bank group may least 1,000 beneficiaries
group= 5% group= 5% valid for all group= 5% group= 5% group= 5% group= 5% not exceed 25% each.
- Limit for a - Limit for a investments, - Limit for a - Limit for a - Limit for a - Limit for a of assets under
group of group of except debt group of group of group of group of management.
issuers= 10% issuers= 10% securities and issuers= 10% issuers= 10% issuers= 10% issuers= 10%
loans which are
issued or
underwritten by
the federal
government, a
federal
province,
another
member state, a
constituent state
149
Bills and
bonds issued
by public
sector Funds funds
administration
of another
member state or
an international
organisation
under public law
of which one or
more member
states are
members
Belgium - IORP (institutions de retraite 100% 100% 100% 100% 100% 100% 100% 100%
professionnelle)
Canada - Occupational registered pension Market value Market value 100% Market value Market value Market value Market value 100% The 10 percent
plans (RPPs): trusteed pension limit of 10% in limit of 10% in limit of 10% in limit of 10% in limit of 10% in limit of 10% in concentration limit is
funds loans to and loans to and Other / loans to and loans to and loans to and loans to and based on the market
investments in investments inComments: investments in investments in investments in investments in value of assets of the
any one any one There is an any one any one any one any one pension fund (rather than
“person”, “person”, exception to the “person”, “person”, “person”, “person”, the book value), and
associated associated 10% rule for associated associated associated associated applies when the loan or
persons or persons or securities persons or persons or persons or persons or investment of moneys of
affiliated affiliated issued or fully affiliated affiliated affiliated affiliated the plan is made. It
corporations corporations guaranteed by corporations corporations corporations corporations applies to the aggregate
(“person” (“person” the Government (“person” (“person” (“person” (“person” value of debt and equity
includes an includes an of Canada, the includes an includes an includes an includes an investments in the entity.
entity). entity). government of a entity). entity). entity). entity).
province, or an Exceptions to the 10%
There are There are agency thereof There are There are There are There are rule include:
several several several several several several
exceptions to exceptions to exceptions to exceptions to exceptions to exceptions to a) Deposits held by a
this rule – See this rule – See this rule – See this rule – See this rule – See this rule – See bank, trust company, or
“Other “Other “Other “Other “Other “Other other financial institution
Comments” for Comments” for Comments” for Comments” for Comments” for Comments” for to the extent they are
details. details. details. details. details. details. insured;
b) a segregated fund or
investment fund that
complies with certain
prescribed quantitative
limits;
c) investments in an
150
Bills and
bonds issued
by public
sector Funds funds
administration
unallocated general fund
of a Canadian insurance
company;
d) investments in an
investment corporation,
real estate corporation or
resource corporation, as
defined in regulations;
e) securities issued or
fully guaranteed by the
Government of Canada,
provincial government or
agency thereof;
f) a fund composed of
mortgage-backed
securities that are fully
guaranteed by the
the government of a
province, or an agency
thereof;
g) a fund or derivative
that replicates the
composition of a widely
recognized index of a
broad class of securities
traded at a market place.
Chile - All AFPs, Fund A Limit between 1%*VF (Limit for 5%*VF*RF 3%*VF*RF in 5% (Limit per 2%*VF (Limit for Limit between 9%*VF (Limit is * There is a limit of
3%*VF and Local Real (Limit for all debt securities issuer for Private Equity, 1%*VF and for Stocks, Bank 1%*(Issuer Capital) for
1%*VF Estate for Foreign Debt issued by a mutual fund Private Debt 0.5%*VF by Deposits , other deposits, issued and
according to Leasing or for with a rate of single local shares and Co- issuer Debt guaranteed bonds. This
ownership Rent) BBB or higher). company and approved by the investment with (counterparty), instruments and applies for the sum of all
concentration This limit does 5%*VF*RF in risk rating the same depending of OTC funds. * There is also a
degree of not apply for debt securities commission) General Partner degree of Derivatives 9%*VF limit for each type
company, for bills and bonds issued by a or equivalent) solvency submitted with of fund for the sum of
local issuer, and issued by single foreign Other / classification the same local shares, deposits, issued
151
Bills and
bonds issued
by public
sector Funds funds
administration
1%*VF in foreign states, company. Comments: * bank) and guaranteed bonds,
equities issued foreign central Max. 3%*VF in Other / 5%*VF*RF and derivatives of
by a single banks or Other / a single closed Comments: (Limit is for banking companies.
foreign issuer. international Comments: * ended fund. These limits foreign Debt
private banks, if Max. 0.5%*VF * There is a limit correspond to instruments, * RF: Risk Factor. This is
Other / their risk in debt of 1%*VF for Syndicated including with used to calculate the
Comments: * classification is securities investment fund Loans. the same limits of investment by
Max. 0.5%*VF AAA or AA. issued by a shares with foreign bank). issuer for debt instrument
for shares that single company foreign capital Other / with short and long term.
are not with low risk that are Comments: • The classification
approved by the rating. * Max. approved by the Max. 0.5%*VF established:
risk rating 35% of single risk rating in foreign short- - 1 for instrument with risk
commission. issue of bonds, commission. term deposits rate of AAA or N-1.
* Max. 7% commercial *Max. 35% (time deposits, - 0.8 for instrument with
subscribed papers, or shares issued overnight). risk rate of AA.
shares in public securitized by local - 0.5 for instrument with
limited local loans, for the investment risk rate of A.
company sum of the funds or - 0.3 for instrument with
shares, for the Funds of the outstanding risk rate of BBB, N-2 or
sum of the same AFP. * shares of local N-3.
Funds of the Max. 1%*VF * mutual funds,
same AFP. RF in structured for the sum of
* Max 2.5% of notes (capital the Funds of the
subscribed protected notes) same AFP.
shares of issued by
banking foreign
companies for institutions. *
the sum of the The sum of
Funds of the investments by
same AFP. all funds from
the same AFP,
in bonds and
commercial
papers issued
or granted by a
single company
may not exceed
12% of the
company
assets.
152
Bills and
bonds issued
by public
sector Funds funds
administration
Chile - All AFPs, Fund B Limit between 1%*VF (Limit for 5%*VF*RF 3%*VF*RF in 5% (Limit per 2%*VF (Limit for Limit between 9%*VF (Limit is * There is a limit of
foreign issuer. international Comments: * ended fund. These limits Foreign Debt
for shares that single company foreign capital with short and long term.
are not with low risk that are Other / The classification
approved by the rating. * Max. approved by the Comments: • established:
risk rating 35% of single risk rating Max. 0.5%*VF - 1 for instrument with risk
commission. issue of bonds, commission. in foreign short- rate of AAA or N-1.
* Max. 7% commercial *Max. 35% term deposits - 0.8 for instrument with
subscribed papers, or shares issued (time deposits, risk rate of AA.
shares in public securitized by local overnight). - 0.5 for instrument with
shares of issued by
banking foreign
the same AFP,
in bonds and
153
Bills and
bonds issued
by public
sector Funds funds
administration
commercial
papers issued
or granted by a
single company
may not exceed
12% of the
company
assets.
Chile - All AFPs, Fund C Limit between 1%*VF (Limit for 5%*VF*RF 3%*VF*RF in 5% (Limit per 2%*VF (Limit for Limit between 9%*VF (Limit is * There is a limit of
commission. issue of bonds, commission. in foreign short- rate of AAA or N-1.
* Max. 7% commercial *Max. 35% term deposits. - 0.8 for instrument with
154
Bills and
bonds issued
by public
sector Funds funds
administration
shares of issued by
banking foreign
the same AFP,
in bonds and
commercial
papers issued
or granted by a
single company
may not exceed
12% of the
company
assets.
Chile - All AFPs, Fund D Limit between 1%*VF (Limit for 5%*VF*RF 3%*VF*RF in 5% (Limit per 2%*VF (Limit for Limit between 9%*VF (Limit is * There is a limit of
commission. * issue of bonds, commission. in foreign short- rate of AAA or N-1.
Max. 7% commercial *Max. 35% term deposits - 0.8 for instrument with
155
Bills and
bonds issued
by public
sector Funds funds
administration
same AFP. * RF in structured for the sum of
Max 2.5% of notes (capital the Funds of the
shares of issued by
banking foreign
the same AFP,
in bonds and
commercial
papers issued
or granted by a
single company
may not exceed
12% of the
company
assets.
Chile - All AFPs, Fund E Limit between 1%*VF (Limit for 5%*VF*RF 3%*VF*RF in 5% (Limit per 2%*VF (Limit for Limit between 9%*VF (Limit is * There is a limit of
concentration This limit does 5%*VF*RF in risk rating the same depending of OTC funds.
degree of not apply for debt securities commission) General Partner degree of Derivatives * There is also a 9%*VF
company, for bills and bonds issued by a or equivalent) solvency submitted with limit for each type of fund
local issuer, and issued by single foreign Other / classification the same local for the sum of shares,
1%*VF in foreign states, company. Comments: * bank) deposits, issued and
equities issued foreign central Max. 3%*VF in Other / 5%*VF*RF guaranteed bonds, and
by a single banks or Other / a single closed Comments: (Limit is for derivatives of banking
foreign issuer. international Comments: * ended fund. These limits Foreign Debt companies.
private banks, if Max. 0.5%*VF * There is a limit correspond to instruments,
156
Bills and
bonds issued
by public
sector Funds funds
administration
Other / their risk in debt of 1%*VF for Syndicated including with * RF: Risk Factor. This is
Comments: * classification is securities investment fund Loans. the same used to calculate the
Max. 0.5%*VF AAA or AA. issued by a shares with foreign bank). limits of investment by
for shares that single company foreign capital issuer for debt instrument
are not with low risk that are Other / with short and long term.
approved by the rating. approved by the Comments: • The classification
risk rating * Max. 35% of risk rating Max. 0.5%*VF established:
commission. single issue of commission. in foreign short- - 1 for instrument with risk
* Max. 7% bonds, * Max. 35% term deposits rate of AAA or N-1.
subscribed commercial shares issued (time deposits, - 0.8 for instrument with
shares in public papers, or by local overnight). risk rate of AA.
limited local securitized investment - 0.5 for instrument with
company loans, for the funds or risk rate of A.
shares, for the sum of the outstanding - 0.3 for instrument with
sum of the Funds of the shares of local risk rate of BBB, N-2 or
Funds of the same AFP. mutual funds, N-3.
same AFP. * Max. 1%*VF * for the sum of
* Max 2.5% of RF in structured the Funds of the
subscribed notes (capital same AFP.
shares of protected notes)
banking issued by
companies for foreign
the sum of the institutions.
Funds of the * The sum of
same AFP. investments by
all funds from
the same AFP,
in bonds and
commercial
papers issued
or granted by a
single company
may not exceed
12% of the
company
assets.
Czech - Transformed pension schemes 10% No specific limit 10% 10% 10% 10% or 20 mil. -
Republic (3rd pillar) CZK
Czech - Participation funds: conservative Pension 5% 10% 10% -
Republic schemes (3rd pillar) management
157
Bills and
bonds issued
by public
sector Funds funds
administration
company may
invest maximum
of 5% of the
value of
participation
fund’s property
in securities and
money market
instruments
issued by one
issuer (bonds
and money
market
instruments
issued by the
Czech Republic
or CNB are
excluded from
this limit).
Czech - Participation funds: other 5% Pension 5% 10% per single 10% -
Republic schemes (3rd pillar) management collective
company may investment fund
invest maximum and 35% for a
of 5% of the group of issuers
value of
participation
fund’s property
in securities and
money market
instruments
issued by one
issuer (bonds
and money
market
instruments
issued by the
Czech Republic
or CNB are
excluded from
this limit).
158
Bills and
bonds issued
by public
sector Funds funds
administration
Denmark Larger Pension Funds and Life No limit, but No limit, but No limit, but No limit, but No limit, but No limit, but No limit, but No limit, but Regulated by Solvency II:
insurance pension providers Solvency II Solvency II Solvency II Solvency II Solvency II Solvency II Solvency II Solvency II Prudent Person Principle
Prudent Person Prudent Person Prudent Person Prudent Person Prudent Person Prudent Person Prudent Person Prudent Person (PPP)
Principle. Principle. Principle. Principle. Principle. Principle. Principle. Principle.
Denmark Small single company pension Max 5% No limit, but No limit, but Max 5% No limit, but No limit, but No limit, but No limit, but Regulated by IORP2:
funds invested in the IORP2 Prudent IORP2 Prudent invested in the IORP2 Prudent IORP2 Prudent IORP2 Prudent IORP2 Prudent Prudent Person Principle
sponsor. Max Person Person sponsor. Max Person Person Person Person (PPP)
10% invested in Principle. Principle. 10% invested in Principle. Principle. Principle. Principle.
a group of a group of
companies to companies to
which the which the
sponsor sponsor
belongs. belongs.
Denmark ATP and LD No quantitative No quantitative No quantitative No quantitative No quantitative No quantitative No quantitative No quantitative ATP and LD have their
limits limits limits limits limits limits limits limits own laws (one for each).
Denmark Pension savings in banks 20% in each 0% 100% 20% in each 100% 0% 0% 100%
issuer issuer
Estonia - Mandatory funded pension 5% 5% 35% 5% 10% Management 10% Limit for one person
company may contract of pledge = 5%
Other / Other / take loans up to
Comments: - Comments: - 10% of the
Limit for Limit for market value of
securities securities the assets of
issued by a issued by a the fund.
single issuer = single issuer = Pension funds
5%; 5%; are not allowed
- Limit for - Limit for to give a loan.
securities securities Single loans are
issued by a issued by a not regulated.
single group = single group =
20%; 20%;
securities securities
issued by a issued by a
single fund = single fund =
10%. 10%.
Estonia - Voluntary funded pension 10% 5% 35% 10% 10% Management 10% Limit for one person
company may contract of pledge = 5%
Other / Other / take loans up to
Comments: - Comments: - 10% of the
159
Bills and
bonds issued
by public
sector Funds funds
administration
Limit for Limit for market value of
securities securities the assets of
issued by a issued by a the fund.
single issuer = single issuer = Pension funds
10%; 10%; are not allowed
- Limit for - Limit for to give a loan.
securities securities Single loans are
issued by a issued by a not regulated.
20%; 20%;
single fund = single fund =
10%. 10%.
Finland - Voluntary plans: company 5% 15% Assets should be
pension funds and industry-wide diversified and
pension funds decentralised within the
diversified groups.
Limit in one single
investment = 25%.
Finland - earnings-related statutory pension 5% 5% 5% 5% Assets should be
provisions for private sector diversified and
workers, seamen and self- Other / Other / Other / Other / decentralised within the
employed persons Comments: This Comments: - Comments: - Comments: This diversified groups.
limit refers to - Limit is 10 %, Limit for limit refers to
equities, bonds if there are at equities, bonds equities, bonds The limits are not
or other least 5 different or other or other absolute maximum limits.
engagements of tenants engagements of engagements of A higher investment
a single independent of a single a single amount raises the
corporation. each other. corporation = corporation. solvency requirement.
5%;
- Limit for debt
obligations
secured by a
single
corporation =
10%.
France - Group insurance contracts for Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
workers, PERE, Madelin schemes when managed when managed when managed when managed when managed when managed when managed when managed
160
Bills and
bonds issued
by public
sector Funds funds
administration
- PERP under Solvency under Solvency under Solvency under Solvency under Solvency under Solvency under Solvency under Solvency
II II II II II II II II
France Fonds de Retraite Professionnelle As a general Exception to
Supplémentaire (FRPS) principle, general
investments in a principle for
given entity assets issued or
shall stay below secured by a
5% (10% at member state of
group level) EEA or French
Caisse
d’Amortissemen
t de la Dette
Sociale
(CADES).
Germany - Pensionskassen 1% 10% 30% 5% 5% 1% 5% 15% -

Comments: This Comments: This Comments: This Comments: - Comments: - Comments: The Comments: -
limit refers to a limit is given for limit refers to Limit for Limit for limit refers to Limit for
single a single piece of state bonds. securities securities closed-ended securities
undertaking. land or for a issued by a issued by a alternative issued by a
right equivalent single issuer = single issuer = investment single issuer =
to real property 5%; 5%; funds. 5%;
or for units in an -Limit for - Investments in 30% for state
enterprise the mortgage bonds open-ended loans.
sole purpose of = 15% funds are not
which is deemed
acquisition, investments in
development one and the
and same issuer if
management of they are
real property or themselves
of rights sufficiently
equivalent to diversified.
real property or
invested in units
and shares of a
single real
estate
investment
161
Bills and
bonds issued
by public
sector Funds funds
administration
fund. The same
restriction
applies to
several legally
independent
pieces of land
which, taken
together,
constitute a
commercial unit.
Germany - Pensionsfonds 5% 10% 30% 5% 5% 5% 5% 15% -
Other / Other / Other / Other / Other / Other / Other / Other /

Comments: This Comments: This Comments: This Comments: - Comments: - Comments: Comments: - Comments: -
limit refers to a limit is given for limit refers to Limit for Limit for Limit refers to Limit for
single a single piece of state bonds. securities securities closed-ended securities
undertaking. land or for a issued by a issued by a funds. issued by a
right equivalent single issuer = single issuer = single issuer =
to real property 5%; 5%; 5%;
or for units in an -Limit for - Investments in 30% for state
enterprise the mortgage bonds open-ended loans.
sole purpose of = 15% funds are not
which is deemed
acquisition, investments in
development one and the
and same issuer if
management of they are
real property or themselves
of rights sufficiently
equivalent to diversified.
real property.
The same
restriction
applies to
several legally
independent
pieces of land
which, taken
together,
constitute a
162
Bills and
bonds issued
by public
sector Funds funds
administration
commercial unit.
Greece - Occupational insurance funds 15% Bills and bonds 15% 15% Deposits more 35% (Direct) for
shall consist of than 50,000 €, transferable securities
Other / at least 6 Other / Other / per credit and money market
Comments: This different issuesComments: This Comments: This institution, instruments of the same
limit refers to and each issue limit refers to limit refers to cannot exceed issuer, issued or
investments in does not investments in investments in 25% of assets. guaranteed by a Member
transferable exceed 30% of transferable transferable State, a third country, or a
securities and / total assets securities and / securities and / public international body
or money or money or money to which one or more
market market market Member States
instruments of instruments of instruments of participate.
the same the same the same
issuer. issuer. This limit issuer.
increases to
25%, under
certain
conditions.
Hungary - Voluntary privately managed 10% 5% 100% 10% 100% Derivative fund: 0% 20% Max. 2% from the same
pension funds 5% risk capital fund
(magánnyugdíjpénztár) Other / Other / Other / Other / Risk capital: 5% Other / management company’s
Comments: Comments: Comments: Comments: Comments: different risk funds.
Max. 10% in MPF: 5% Government Max. 10% in Max. 20% may
securities directly, 10% bonds: No limit securities Other / be in the overall
issued by a together with Hungarian or issued by a Comments: value of
single issuer real estate foreign single issuer Conventional securities and
(except for state investment municipalities (except for state portfolio: 0% deposits issued
bonds). funds. bonds: 10% bonds). Balanced by an
Max. 20% may Conventional Max. 20% may portfolio: max. organisation
be in the overall portfolio: 0% be in the overall 3%, max. 2% belonging to the
value of Balanced value of per issuer same banking
securities and portfolio: max. securities and Growth group.
deposits issued 10% deposits issued portfolio: max
by an Growth by an 5%, max 2%
organisation portfolio: max. organisation per issuer
belonging to the 20% belonging to the
same banking same banking
group. group.
Hungary - Voluntary private pension funds 10% 10% 100% 10% 100% Derivative fund: 5% 20% Max. 2% from the same
(önkéntes nyugdíjpénztar) 5% risk capital fund
163
Bills and
bonds issued
by public
sector Funds funds
administration
Other / Other / Other / Other / Risk capital: 5% Other / Other / management company’s
Comments: Comments: Comments: Comments: Comments: Comments: different risk funds.
Max. 10% in 10% directly or Government Max. 10% in Other / Max. 30% of the Max. 20% may
securities through real bonds: No limit securities Comments: total amount of be in the overall
issued by a estate Hungarian or issued by a Risk Capital: the individual value of
single issuer investment foreign single issuer Max 2% per account of the securities and
(except for state funds. municipalities (except for state issuer member who deposits and
bonds). bonds: 10% bonds). took the loan. cash account
Max. 20% may Max. 20% may 5% of all assets issued by an
be in the overall be in the overall can be given organisation
value of value of only to fund belonging to the
securities and securities and members. same banking
deposits issued deposits issued group.
by an by an
organisation organisation
belonging to the belonging to the
same banking same banking
group. group.
Iceland Occupational private pension and 10% for private No certain limit 100% 10% or 5% of In a single retail In a single 10% per issuer 25% The sum of bank
personal pension funds pension and in a single total assets investment fund private for private deposits, covered bonds
20% for residential Other / depending on the limit is 25% investment fund pension and Other / and other bonds issued
personal property except Comments: issuer. of its issued the limit is 20% 20% for Comments: by or held by the
pension. exposure limit in There are no shares. of its issued personal Max. 25% can same/single bank can
entities/issuer. limits on Other / shares pension be deposited in sum up to max 25%.
Other / investment in Comments: - a single bank.
Comments: This securities Limit for bonds (Deposits 0-25%)
limit refers to guaranteed by and money (Covered bonds 0-10%
securities the State. market even though other bonds
issued by the - Limit for single instruments issued by the same
same party, issuer of issued by issuer count 10% of total
related parties municipality financial assets)
or parties within bonds = 10%. institutions,
the same insurance General rule for the total
consolidated companies, exposure per issuer is
group. corporate bonds 10% for private pension
- Limit for the = 10%; and 20% for personal
ownership of a - Limit for bonds pension. (exposure/total
share or a unit issued by assets)
in a single parties other
collective than above =
164
Bills and
bonds issued
by public
sector Funds funds
administration
investment 5%
undertaking
(non-UCITS) =
20%.
Ireland - Occupational pension plans No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit- No specific limit No specific limit Regulations require that
assets must be invested
in a diversified manner so
as to avoid excessive
reliance on any particular
asset, issuer or group of
undertakings.
Investments issued by
the same issuer or group
of issuers must not
expose the scheme to
excessive risk
concentration. Any issue
of securities can only
represent up to 10% of
pension fund assets for
the purposes of proving
solvency.
Israel - old pension funds 5% 3% 70% 5% 5% 5% 5% There is a cap Pension funds can lend
- new pension funds of 7.5% to a group of related
- general pension funds Other / Other / Other / investments in a entities (borrower
Comments: - Comments: Comments: For single bank as together with an entity
Limit for one Limit for Mutual Funds, follows: a which has the majority
real estate investments in the investment pension fund controlling interest in the
asset = 3%; bonds issued by limit in a single can invest 5% borrower and an entity
- Limit for a non- a single OECD fund is 10%, of its assets in a which is controlled by the
income country or a and the single bank (the borrower),up to 10% of
producing single country aggregated limit pension fund the pension fund's
property = 2.5% rated at least for all funds of a can invest in the assets.
BBB- = 70%; single issuer is bank's shares, Pension funds can invest
-Limit for 15%. deposits, debt up to 25% in a series of
investments in etc.). In addition debentures from a single
bonds issued by to this 5% cap issuer.
a single other there is an
country=0% additional cap of
2.5% of the
165
Bills and
bonds issued
by public
sector Funds funds
administration
pension fund's
asset only
relating to the
bank's deposits.
The meaning of
that regulation
is that if the
pension fund
wants to invest
only in a single
bank deposit,
the cap will be
7.5% of the
pension fund's
assets.
Italy - Contractual pension funds (fondi 5% (single Direct no limit if the 5% (single 100% Private not allowed no specific limit These limits reflect the
pensione negoziali) issuer) investment is issuer is a issuer) investment fund new investment
- Open pension funds (fondi 10% (group) not allowed OECD State 10% (group) Other / (max 20%) Other / regulation that has been
pensione aperti) Comments: Comments: see issued in 2014, relaxing
- Pre-existing pension funds (fondi Other / Other / Other / UCITS Other / limits for bills some quantitative
pensione preesistenti) Comments: This Comments: Comments: This investments Comments: and bonds restrictions and putting
limit refers to real estate limit refers to these funds greater emphasis on the
securities funds (max securities include real adequacy of pension
issued by a 20%) issued by a estate funds funds' organisational
single issuer or single issuer or structure and risk
connected connected monitoring systems with
group of group of respect to their
companies. companies. investment policy.
Japan - The Employees' Pension Fund 100% - 100% 100% 100% 100% - 100%
(EPF) (kosei nenkin kikin)
- Defined benefit corporate pension Other / Other / Other / Other / Other / Other /
funds (kakutei kyufu kigyo nenkin) Comments: Comments: Comments: Comments: Comments: Comments:
- Corporate defined contribution None, but the None, but the None, but the None, but the None, but the None, but the
funds(kakutei kyoshutsu pension pension pension pension pension pension
nenkin[kigyo-gata]) legislation legislation legislation legislation legislation legislation
- Individual defined contribution stipulates that stipulates that stipulates that stipulates that stipulates that stipulates that
funds (kakutei kyoshutsu nenkin each pension each pension each pension each pension each pension each pension
[kojin-gata]) fund or fund or fund or fund or fund or fund or
- National pension funds (kokumin company should company should company should company should company should company should
nenkin kikin) endeavour to endeavour to endeavour to endeavour to endeavour to endeavour to
166
Bills and
bonds issued
by public
sector Funds funds
administration
avoid avoid avoid avoid avoid avoid
concentration of concentration of concentration of concentration of concentration of concentration of
investment on a investment on a investment on a investment on a investment on a investment on a
specific asset specific asset specific asset specific asset specific asset specific asset
category. category. category. category. category. category.
Japan - Mutual aid associations (MAAs) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct) 100% (Direct)
Other / Other /
Comments: Comments:
needed. Association
(e.g. from
pensions
account to
operating
account).
Korea - Personal pension insurance 7% 7% - Limit for the credit to the
same individual or
Other / Other / corporation = 3%;
Comments: Comments: - Limit for bonds and
Limit for bonds Limit for bonds stocks issued by the
and stocks and stocks same corporation = 7%;
issued by the issued by the - Limit for the credit to the
same same same borrower, or
corporation = corporation = aggregate holdings of the
7% 7% bonds and stocks issued
by the said borrower =
12%
Korea - Personal pension trust 7% 7% - Limit for the credit to the
same individual or
Other / Other / corporation = 3%;
Comments: Comments: - Limit for bonds and
Limit for bonds Limit for bonds stocks issued by the
and stocks and stocks same corporation = 7%;
issued by the issued by the - Limit for the credit to the
same same same borrower, or
167
Bills and
bonds issued
by public
sector Funds funds
administration
corporation = corporation = aggregate holdings of the
7% 7% bonds and stocks issued
by the said borrower =
12%
Korea - Defined benefit (DB) Retirement 10% 10%
pension plans
- Defined benefit (DB) Retirement Other / Other /
insurance / Retirement trust Comments: - Comments: -
Limit for Limit for
issued by the issued by the
same juristic same juristic
person = 10%; person = 10%;
same group of same group of
affiliated affiliated
enterprises = enterprises =
15%. 15%.
Korea - Defined contribution (DC) 30% 30%
Retirement pension plans
- Defined contribution (DC) Other / Other /
Retirement insurance / Retirement Comments: - Comments: -
trust Limit for Limit for
same juristic same juristic
person = 30%; person = 30%;
same group of same group of
affiliated affiliated
enterprises = enterprises =
40%. 40%.
Latvia State funded pensions (mandatory) 5% Direct 35% 10% 10% 10% Loans are not 10% for
investments in allowed deposits in a
real estate are Other / Other / single credit
not allowed. Comments: Comments: institution
168
Bills and
bonds issued
by public
sector Funds funds
administration
- Limit may be - Limit for total
exceeded in investments in Other /
relation to State non-UCITS Comments:
issued funds = 15%. - Limit for total
securities if the investments in
pension scheme deposits and
has securities securities
from six or more issued by a
issues of one single credit
issuer and the institution or
value of within the same
securities of group =15%.
each issue
separately does
not exceed 20%
- Limit for
securities
issued by a
local
government=5%
- Limit to
securities
issued by the
central or local
government of
Latvia =100%
Private pension funds (voluntary) 10% 10% in a single 35% 10% 10% 10% Loans are not 20% Limit for investments in a
undivided allowed single group of
property Other / companies=25%.
Comments:
- Limit may be
exceeded in
relation to State
issued
securities if the
pension scheme
has securities
from six or more
issues of one
issuer and the
169
Bills and
bonds issued
by public
sector Funds funds
administration
value of
securities of
each issue
separately does
not exceed 20%
Lithuania Social insurance contributions in 0% 0% No total limit 0% 20% 0% 0% 20% -
pension funds - conservative funds
Bonds and The shares or Deposits with
other non-equity investment units no longer than
securities of the collective 12-month term,
issued or investment which may be
guaranteed by a undertakings withdrawn on
Member State whose funds demand and
or the shall be which are held
governments, invested only in in the credit
central banks of the investment institutions the
member objects registered office
countries of the indicated in the whereof is in a
Organisation for category “bills Member State
Economic Co- and bonds or another state
operation and issued by public wherein the
Development administration” level of risk
and the limiting
European supervision is at
Central Bank. least as
Investments into stringent as in
the transferable the European
securities or Union
money-market
instruments that
are issued or
guaranteed by
the country, the
credit rating of
which is no
lower than the
one of the
Republic of
170
Bills and
bonds issued
by public
sector Funds funds
administration
Lithuania,
cannot be larger
than 35 per cent
of the value of
the net assets
that comprise
the assets of
the pension.
The Supervisory
Authority may
allow to invest a
larger share of
the net assets
into the
transferable
securities or
money-market
instruments that
are specified in
this paragraph,
if the interests
of the
participants
were sufficiently
protected in
such case, and
would be
invested into
the transferable
securities or
money-market
instruments of
no less than 6
emissions, and
the share,
invested into the
single emission
transferable
securities or
money-market
instruments, is
171
Bills and
bonds issued
by public
sector Funds funds
administration
no larger than
30 per cent of
the net assets.
Lithuania Social insurance contributions in 10% 0% 35% 10% 20% 5% 0% 20% -
pension funds - other funds
More than 5 Investments into More than 5
percent but no the securities or percent but no
more than 10 money market more than 10
percent of the instruments of percent of the
net assets may the Republic of net assets may
be invested into Lithuania, a be invested into
the securities or Member State the securities or
money market of the European money market
instruments Union or their instruments
issued by the local authorities, issued by the
same issuer, any other state same issuer,
provided that or an provided that
the amount of international the amount of
such body to which at such
investments least one investments
does not Member State does not
exceed 40 of the European exceed 40
percent of the Union belongs, percent of the
net assets issued or net assets
guaranteed by a Investments into
single body, bonds issued by
may not exceed a credit
35 percent of institution which
net pension has its
assets. registered office
in a Member
State of the
European Union
and is subject,
under the law,
to special public
supervision
designed to
172
Bills and
bonds issued
by public
sector Funds funds
administration
protect the
interests of
bond-holders
and provided
that a sum
generated by
issuance of
those bonds is
invested in
assets which,
during the
whole period of
validity of the
bonds, would be
capable of
covering claims
attaching to the
bonds and
which, in the
event of a
failure of the
issuer, would be
used on a
priority basis for
the
reimbursement
of the principal
and payment of
the accrued
interest may not
exceed 25
percent of the
net assets.
When more
than 5 percent
but no more
than 25 percent
is invested in
such bonds
issued by one
issuer, the total
173
Bills and
bonds issued
by public
sector Funds funds
administration
value of those
investments
may not exceed
80 percent of
the value of the
net assets.
Lithuania Supplementary accumulation for 10% 0% 35% 10% 20% 5% 0% 20% -
pension in pension funds
More than 5 Investments into More than 5
percent but no the securities or percent but no
more than 10 money market more than 10
percent of the instruments of percent of the
net assets may the Republic of net assets may
be invested into Lithuania, a be invested into
the securities or Member State the securities or
money market of the European money market
instruments Union or their instruments
issued by the local authorities, issued by the
same issuer, any other state same issuer,
provided that or an provided that
the amount of international the amount of
such body to which at such
investments least one investments
does not Member State does not
exceed 40 of the European exceed 40
percent of the Union belongs, percent of the
net assets issued or net assets
guaranteed by a Investments into
single body, bonds issued by
may not exceed a credit
35 percent of institution which
net pension has its
assets. registered office
in a Member
State of the
European Union
and is subject,
under the law,
174
Bills and
bonds issued
by public
sector Funds funds
administration
to special public
supervision
designed to
protect the
interests of
bond-holders
and provided
that a sum
generated by
issuance of
those bonds is
invested in
assets which,
during the
whole period of
validity of the
bonds, would be
capable of
covering claims
attaching to the
bonds and
which, in the
event of a
failure of the
issuer, would be
used on a
priority basis for
the
reimbursement
of the principal
and payment of
the accrued
interest may not
exceed 25
percent of the
net assets.
When more
than 5 percent
but no more
than 25 percent
is invested in
175
Bills and
bonds issued
by public
sector Funds funds
administration
such bonds
issued by one
issuer, the total
value of those
investments
may not exceed
80 percent of
the value of the
net assets.
Luxembourg - Pension savings companies with 100% 100% 100% 100% 100% 100% 100% 100% The investment in assets
variable capital (SEPCAVs) of the same issuer or of
- Pension savings associations the issuers belonging to
(ASSEPs) the same group shall not
expose the pension fund
to excessive risk. Proper
diversification of the
assets is required but no
quantitative limit exists.
Luxembourg Defined benefit CAA supervised 10% 5% No limit 10% 15% by 15% by 0% 20% global and All values are for DB CAA
pension funds investment fund investment fund by issuer, supervised pension
Other / Other / Other / Other / except for terms funds. For DC CAA
Comments: Comments: This Comments: Other / Other / Comments: < 3 months supervised pension
Limit for non- limit refers to Limit by issuers Comments: Comments: Investment in following funds, CAA considers
traded assets = single object or of traded bonds Limit for non Limit for non loans not reception of a each investment strategy
5% per issuer; set of objects = 10%; traded assets = traded assets = allowed, except contribution, separately.
Limit for issuers considered as a Limit by issuers 5% per issuer; 5% per issuer; for liquidity preceding a
outside the single of not-traded Limit for issuers Limit for issuers reasons and surrender or in
OECD =1%; investment; bonds = 5%; outside the outside the temporarily. case of market
The sum of the Real Estate is The sum of the OECD = 1%; OECD = 1%; Subordinated turmoil
issuers >5% only taken into issuers > 5% Limit if the Limit if the loans may be
has to be account up to has to be investment fund investment fund allowed, if they
<=40% of the 80% of the <=40% of the is compliant is compliant had an
total assets; value of the total assets; with with undefined term
There is a 5% building; 85/611/CEE: 85/611/CEE: and their
limit for an Limit by issuers Limit by issuers 25% 25% reimbursement
affiliated outside OECD = outside OECD = is subject to
company to the 1% 1%; CAA's approval
pension fund There is a 5%
and a 10% limit limit for an
for the sum of affiliated
176
Bills and
bonds issued
by public
sector Funds funds
administration
affiliated company to the
companies of pension fund
one group and a 10% limit
for the sum of
affiliated
companies of
one group
Mexico - All Afores, (Siefore) Basic Fund 0 0% 0% 100% 0% 0% 0% 0% Up to 5%
Other / Other /
Comments: No Comments:
investment Banks should
limits for debt be classified as
issued, or Tier 1 according
guaranteed, by to the
the Mexican capitalization
Federal ratio defined by
Government, the Mexican
nor for the Security
Central Bank. Exchange
Commission.
Up to 100% can Individual limits
be invested in apply for each
short-term (less counterparty
or equal to one (banks),
year) with fixed according to its
rate credit rating
instruments. (for domestic
Up to 25% can counterparties:
be invested in up to 5% of
longer term AUMs for AAA;
(more than one up to 3% of
year) floating AUM for AA, up
interest rate to 2% of AUM
instruments. for A, up to 1%
Up to 25% can of AUM for
be invested in BBB; for
long-term international
floating interest counterparties
rate instruments up to 5% as
177
Bills and
bonds issued
by public
sector Funds funds
administration
issued by the long as they
Mexican have a credit
Deposit rating BBB- or
Insurance above)
Institute. Bank deposits
are added to the
debt issued by
the bank to
compute as a
single limit per
issuer.
Mexico - All Afores, (Siefore) Basic Fund 1 An issuer limit 2% per issuer. 100% Up to 5% per 10% for equity 3% of AUMs on 0% Up to 5%
applies as 35% of the issuer. ETFs or equity a single issue
follows: amount Other / mutual funds Other / Other /
- If the stock outstanding. Comments: - Issue limits: 100% for debt Other / Comments: Not Comments:
belongs to the Limit for Federal 100% if the ETFs or mutual Comments: This allowed Individual limits
Mexican stock Government issuance worth funds, is allowed only apply for each
index that the and the less than 300 0% for in Mexico via counterparty
Investment Mexican Central million of pesos. commodity SPVs named (banks),
Committee Bank =100%. 35% otherwise. ETFs or mutual CKDs and according to its
selects to set funds CERPIs issued credit rating :
issuer limits, the Individual limits by public (for domestic
limit is equal to apply according Other / offering. counterparties:
the sum of the to the credit Comments: Also, when the up to 5% of
weight of the rating of the Inherits the limit value of an AUMs for AAA;
stock in the issuer: of the issue equals or up to 3% of
index and +/- - Limit for debt underlying. exceeds a AUM for AA, up
4% (only issued by State defined to 2% of AUM
positive Productive regulatory for A, up to 1%
weights), Enterprises: threshold, a of AUM for
otherwise is 4%. 10% 50% limit of BBB; for
Stock picking in - Limit for debt each of the international
foreign stock issued by a financed counterparties
markets is single issuer if it projects applies up to 5% as
allowed only is rated AAA in (below such long as they
through local scale or threshold, the have a credit
investment BBB+ in global investment in rating BBB- or
mandates. scale = 5%; each project above)
- Limit for debt can be up to Bank deposits
issued by any 80%). are added to the
178
Bills and
bonds issued
by public
sector Funds funds
administration
single issuer debt issued by
rated AA- in the bank to
local scale or compute as a
BBB- in global single limit per
scale = 3%; issuer.
- Limit for debt
issued by any
single issuer
rated A- in local
scale = 2%;
- Limit for debt
issued by any
single issuer
rated BBB in
local scale, and
for subordinated
debt rated BB+
in local scale or
B+ in global
scale = 1%;
- Limit for single
international
issuer rated at
least BBB- in
global scale =
5%.
Those AFORE
that implement
internal credit
models
(according to
the regulation)
will be allowed
to define their
own issuer
limits within a
maximum of 5%
of their AUMs
(instruments
rated BBB or
more).
179
Bills and
bonds issued
by public
sector Funds funds
administration
applies as 35% of the issuer. ETFs or equity a single issue
follows: amount Other / mutual funds Other / Other /
belongs to the Limit for Federal 100% if the ETFs or mutual Comments: This allowed. Individual limits
Mexican stock Government issuance worth funds is allowed only apply for each
index and +/- - Limit for debt underlying exceeds a AUM for AA, up
scale = 3%; issuer.
- Limit for debt
issued by any
single issuer
rated A- in local
scale = 2%;
- Limit for debt
issued by any
180
Bills and
bonds issued
by public
sector Funds funds
administration
single issuer
rated BBB in
local scale, and
for subordinated
debt rated BB+
in local scale or
B+ in global
scale = 1%;
- Limit for single
international
issuer rated at
least BBB- in
global scale =
5%
Those AFORE
that implement
internal credit
models
(according to
the regulation)
will be allowed
to define their
own issuer
limits within a
maximum of 5%
of their AUMs
(instruments
rated BBB or
more).
applies as 35% of the issuer. ETFs or mutual a single issue
follows: amount Other / funds or Other / Other /
Committee Bank =100%. 35% otherwise ETFs or mutual CKDs and according to its
selects to set funds. CERPIs issued credit rating :
issuer limits, the by public (for domestic
181
Bills and
bonds issued
by public
sector Funds funds
administration
limit is equal to Individual limits Other / offering. counterparties:
the sum of the apply according Comments: (Investment can up to 5% of
weight of the to the credit Inherits the limit also be made AUMs for AAA;
stock in the rating of the of the abroad through up to 3% of
index and +/- issuer: underlying CERPIs.) AUM for AA, up
4% (only - Limit for debt Also, when the to 2% of AUM
positive issued by State value of an for A, up to 1%
weights), Productive issue equals or of AUM for
otherwise is 4%. Enterprises: exceeds a BBB; for
Stock picking in 10% defined international
foreign stock - Limit for debt regulatory counterparties
markets is issued by a threshold, a up to 5% as
allowed only single issuer if it 50% limit of long as they
through is rated AAA in each of the have a credit
investment local scale or financed rating BBB- or
mandates. BBB+ in global projects applies above)
scale = 5%; (below such Bank deposits
- Limit for debt threshold the are added to the
issued by any investment in debt issued by
single issuer each project the bank to
rated AA- in can be up to compute as a
local scale or 80%). single limit per
BBB- in global issuer.
scale = 3%;
- Limit for debt
issued by any
single issuer
rated A- in local
scale = 2%;
- Limit for debt
issued by any
single issuer
rated BBB in
local scale, and
for subordinated
debt rated BB+
in local scale or
B+ in global
scale = 1%;
- Limit for single
international
182
Bills and
bonds issued
by public
sector Funds funds
administration
issuer rated at
least BBB- in
global scale =
5%.
Those AFORE
that implement
internal credit
models
(according to
the regulation)
will be allowed
to define their
own issuer
limits within a
maximum of 5%
of their AUMs
(instruments
rated BBB or
more).
applies as 35% of the issuer. ETFs or mutual a single issue
follows: amount Other / funds, Other / Other /
index and +/- - Limit for debt underlying exceeds a AUM for AA, up
183
Bills and
bonds issued
by public
sector Funds funds
administration
scale = 3%; issuer.
- Limit for debt
issued by any
single issuer
rated A- in local
scale = 2%;
- Limit for debt
issued by any
single issuer
rated BBB in
local scale, and
for subordinated
debt rated BB+
in local scale or
B+ in global
scale = 1%;
- Limit for single
international
issuer rated at
least BBB- in
global scale =
5%.
Those AFORE
that implement
internal credit
models
(according to
the regulation)
will be allowed
184
Bills and
bonds issued
by public
sector Funds funds
administration
to define their
own issuer
limits within a
maximum of 5%
of their AUMs
(instruments
rated BBB or
more).
Netherlands - Sector- or industry-wide pension No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit No specific limit Diversification is required,
plans but no quantitative rules.
- Company pension funds
- Pension funds for professions
- Pension funds not under
supervision
New Zealand - Superannuation registered 100% 100% 100% 100% 100% 100% 100% 100% -
schemes
- KiwiSaver
Norway - Pension funds (pensjonkasser): 4% 7% 4% 4% 10% 1% 1% 4% The general limit is 4%
private pension funds, municipal per single issuer.
pension funds Other / Other / Other / Other /
Comments: This Comments: This Comments: This Comments: This
limit refers to limit refers to limit refers to limit refers to
investments in investments in a the exposure to investments in a
one single real single UCITS or one single single
estate. national fund. special fund unsecured loan.
(hedge fund
etc.)
Poland - Open pension funds (OFE) 10% 0% 40% 5% 5% 0% 10% 5% -
Other / Other / Other / Other / Other / Other / Other / Other /

Comments: This Comments: Not Comments: Comments: This Comments: - Comments: Not Comments: This Comments: This
limit refers to all allowed refers to limit refers to all Limit for allowed limit refers to limit refers to a
securities municipal securities investments in a investments in single bank or
issued by a bonds, since issued by a single open-end public to two or more
single issuer or treasury bonds single issuer or investment fund mortgages affiliated banks.
of two or more are not allowed of two or more = 5%; issued by one
affiliated affiliated - Limit for entity.
issuers. issuers. investments in a
closed-end
185
Bills and
bonds issued
by public
sector Funds funds
administration
investment fund
or a single
hybrid
investment fund
= 2%;
- Limit for
investments in
investment
funds managed
by one
investment
society = 15%
Poland - Employee pension funds (PPE) 10% 0% 100% 5% 5% 0% 10% 5% -

Comments: This Comments: Not Comments: This Comments: - Comments: Not Comments: This Comments: This
limit refers to all allowed limit refers to all Limit for allowed limit refers to limit is for a
securities securities investments in a investments in single bank or
issued by a issued by a single open-end public for two or more
single issuer or single issuer or investment fund mortgages affiliated banks.
of two or more of two or more = 5%; issued by one
affiliated affiliated - Limit for entity.
issuers. issuers. investments in a
closed-end
investment fund
or a single
hybrid
investment fund
= 2%;
Portugal - Closed pension funds 2% 2% Investment limit per
- Open pension funds issuer is 10%.
Other / Other /
Comments: This Comments: This
limit refers to limit refers to
investment in a investment in a
single non- single non-
harmonised harmonised
fund. fund.
Portugal - Personal retirement saving Investment limit per
186
Bills and
bonds issued
by public
sector Funds funds
administration
schemes (PPR) financed through issuer is 10%.
pension funds
Slovak - Privately managed mandatory 0% - Limit for single - Limit for single - Limit for single 10% - one 0% 0% 10% -
Republic pension system - Bonds issue = 25%; issue = 25%; issue = 25%; open- ended
Guaranteed Fund Other / - Limit for - Limit for - Limit for UCITS fund Other / Other / Other /
Comments: Not mortgage bonds mortgage bonds mortgage bonds 10% - one non Comments: Not Comments: Not Comments: Not
allowed = 10% = 10% = 10% UCITS fund allowed allowed more than 10%
of the net asset
Other / Other / Other / value of a
Comments: This Comments: This Comments: This pension fund
limit refers to limit refers to limit refers to may be
transferable transferable transferable accounted for
securities and securities and securities and by
money market money market money market funds held in
instruments instruments instruments current and
issued by one issued by one issued by one deposit
EU or OECD EU or OECD EU or OECD accounts with
country. (this country. (this country. (this one bank or
limit can go up limit can go up limit can go up branch of a
to 50% if the to 50% if the to 50% if the foreign bank
securities are securities are securities are
denominated in denominated in denominated in
euros) euros) euros)
Slovak - Privately managed mandatory 25% - single - Limit for single - Limit for single - Limit for single 10% - one 0% 0% 10% -
Republic pension system - Equity Non- issue issue = 25%; issue = 25%; issue = 25%; open- ended
Guaranteed Fund 5% - single - Limit for - Limit for - Limit for UCITS fund
issuer mortgage bonds mortgage bonds mortgage bonds 10% - one non Comments: Not Comments: Not Comments: Not
= 10% = 10% = 10% UCITS fund
allowed allowed more than 10%
Other / of the net asset
Comments: This Other / Other / Other / Other / value of a
limit refers to Comments: This Comments: This Comments: This Comments: pension fund
transferable limit refers to limit refers to limit refers to Limit per ETF = may be
securities and transferable transferable transferable 10% of the net accounted for
money market securities and securities and securities and asset value of a by
instruments money market money market money market pension fund funds held in
issued by one instruments instruments instruments current and
EU or OECD issued by one issued by one issued by one deposit
country. (this EU or OECD EU or OECD EU or OECD accounts with
limit can go up country. (this country. (this country. (this one bank or
to 50% if the limit can go up limit can go up limit can go up branch of a
187
Bills and
bonds issued
by public
sector Funds funds
administration
securities are to 50% if the to 50% if the to 50% if the foreign bank
denominated in securities are securities are securities are
euros) denominated in denominated in denominated in
Slovak - Privately managed mandatory 25% - single - Limit for single - Limit for single - Limit for single 10% - one 0% 0% 10% -
Republic pension system - Other types of issue issue = 25%; issue = 25%; issue = 25%; open- ended
funds 5% - single - Limit for - Limit for - Limit for UCITS fund Other / Other / Other /
issuer mortgage bonds mortgage bonds mortgage bonds 10% - one non- Comments: Not Comments: Not Comments: Not
= 10% = 10% = 10% UCITS fund allowed allowed more than 10%
Other / of the net asset
Comments: This Other / Other / Other / Other / value of a
limit refers to Comments: This Comments: This Comments: This Comments: pension fund
transferable limit refers to limit refers to limit refers to Limit per ETF = may be
securities and transferable transferable transferable 10% of the net accounted for
money market securities and securities and securities and asset value of a by
instruments money market money market money market pension fund funds held in
issued by one instruments instruments instruments current and
EU or OECD issued by one issued by one issued by one deposit
country. (this EU or OECD EU or OECD EU or OECD accounts with
limit can go up country. (this country. (this country. (this one bank or
to 50% if the limit can go up limit can go up limit can go up branch of a
securities are to 50% if the to 50% if the to 50% if the foreign bank
denominated in securities are securities are securities are
euros) denominated in denominated in denominated in
Slovak - Voluntary personal pension plans 30% - single - Limit for single - Limit for single - Limit for single 10% - one 0% 0% 20% -
Republic - contributory pension funds issue issue = 30%; issue = 30%; issue = 30%; open- ended
- Limit for - Limit for single - Limit for single UCITS fund Other / Other / Other /
Other / mortgage bonds issuer = 5% issuer = 5% 10% - one non- Comments: Not Comments: Not Comments:
Comments: the = 25% - Limit for - Limit for UCITS fund allowed allowed Funds held in
sum of par mortgage bonds mortgage bonds current and
values of = 25% = 25% Other / deposit
transferable Comments: accounts with
securities and UCITS funds one bank or
money market and non-UCITS branch of a
instruments funds managed foreign bank
from the same by one may constitute
issue may not management more than 20%
exceed 30% company max. of the asset
of the net value 40% value of a
188
Bills and
bonds issued
by public
sector Funds funds
administration
of the total supplementary
issue; this shall pension fund
not apply to
securities and
money market
instruments
issued or
guaranteed by a
Member State
Slovak - Voluntary personal pension plans 0% - Limit for single - Limit for single - Limit for single 10% - one 0% 0% 20% -
Republic - pay-out pension funds issue = 30%; issue = 30%; issue = 30%; open- ended
Other / - Limit for - Limit for single - Limit for single UCITS fund Other / Other / Other /
Comments: Not mortgage bonds issuer = 5% issuer = 5% 10% - one non-
Comments: Not Comments: Not Comments:
allowed = 25% - Limit for - Limit for UCITS fund allowed allowed Funds held in
mortgage bonds mortgage bonds current and
= 25% = 25% Other / deposit
Comments: accounts with
UCITS funds one bank or
and non-UCITS branch of a
funds managed foreign bank
by one may constitute
management more than 20%
company max. of the asset
40% value of a
supplementary
pension fund
Slovenia - Pension company 10% in single 10% in single 100% in case of - 10% in single - 10% in single 1% 100% in 20% in 20% in equities, money
- Mutual pension funds issuer (equity investment Slovenian or issuer (equity open “Schuldschein”- individual market instruments,
and bonds), but EEA Member and bonds) investment when in institution deposits and structured
no more than States - 25% in single fund, accordance with investments issued by
20% in case of Sovereign credit institution, - max 30% in the Regulators’ single issuer
exposure to Bonds or third with head office total in prior approval.
group; country and supervised investment
- 35% in single Sovereign in EEA Member funds non-
issuer with Bonds with States, compliant with
guarantee of appropriate - 35% in EU UCITS
EEA Member guarantee, securities or Directive,
States when they are money market - max 50% in
spread between instruments single
at least 6 issued or investment
189
Bills and
bonds issued
by public
sector Funds funds
administration
different issues; guaranteed by fund, compliant
- max. 30% of EEA Member with EU UCITS
the single issue States, third Directive.
of Bonds countries or
international
organisation
with at list one
member from
EEA Member
States.
Spain - Pension funds: occupational plans 5% 10% 100% 5% 20% 3% 10% 20%
- Associated plans
- Personal plans Other / Other / Other / Other / Other /
Comments: - Comments: - Comments: - Comments: Comments: -this
Limit for Limit for Limit for Limit for Private limit works
securities securities investments in Investment together with
issued or issued or the same UCIT Funds issued by any other asset
guaranteed by guaranteed by admitted for undertakings issued by the
the same entity the same entity trading in a belonging to a same bank.
= 5%; = 5%; regulated single group =
- Limit for - Limit for market = 20%; 6%
securities securities - Limit for
issued by the issued by the investments in
same group of same group of the same UCIT
companies = companies = not admitted for
10%; 10%; trading in a
- Limit for - Limit for regulated
securities not securities not market = 5%.
admitted to be admitted to be
traded on a traded on a
regulated regulated
market issued market issued
by the same by the same
undertakings = undertakings =
2%; 2%;
securities not securities not
admitted to be admitted to be
traded on a traded on a
regulated regulated
190
Bills and
bonds issued
by public
sector Funds funds
administration
market issued market issued
by undertakings by undertakings
belonging to a belonging to a
4%. 4%
- The
investment in
securities
issued by the
same entity
negotiated in
the alternative
stock market or
in the
alternative
fixed-income
market, as well
as the
investment in
stocks and
shares issued
by a single
capital entity
Closed-rate
collective
investment risk
or entity may
reach 3 per cent
of the pension
fund asset. The
previous limit of
3 per cent shall
be 6 per cent for
such securities
or other
financial
instruments
when issued by
entities
belonging to the
same group.
191
Bills and
bonds issued
by public
sector Funds funds
administration
Sweden - Friendly societies 100% 100% 100% 100% 100% 100% 100% 100% -
Sweden - Life insurance undertakings 5% 5% 100% 5% 100% (direct), 100% (direct), 5% 100%, but not - The prudent person
but the limits for but the limits for clearly specified principle of solvency II
Other / Other / Other / Other / the indirectly the indirectly Other / in legislation may be applied, and in
Comments: This Comments: Comments: This Comments: This owned assets owned assets Comments: This that case there are no
limit refers to Limit for a single limit refers to limit refers to must be must be limit refers to explicit limits to
shares issued piece of real bonds issued by bonds issued by respected respected shares issued investments in single
by a single estate (or group a state or an a single (transparency) (transparency) by a single issuer/issue
company. This of) = 5% equally company. This company. This
limit can go up financially limit can go up limit can go up
to 10% in stable subject. to 10% in to 10% in
certain cases certain cases certain cases
(e.g. issued by (e.g. issued by (e.g. taken up
domestic or domestic or by domestic or
foreign banks). foreign banks). foreign banks).
Sweden - Providers of occupational 5% 5% 100% 5% 100% direct, but 100% direct, but 5% 100%, but not -
retirement pensions (Pension the limits for the the limits for the clearly specified
funds) Other / Other / Other / Other / indirectly owned indirectly owned Other / in legislation
Comments: This Comments: Comments: This Comments: This assets must be assets must be Comments: -
limit refers to Limit for a single limit refers to limit refers to respected respected This limit refers
shares issued piece of real bonds issued by bonds issued by (transparency) (transparency) to loans granted
by a single estate (or group a state or an a single to the same
company. This of) = 5% equally company. This subject.
limit can go up financially limit can go up - There is no
to 10% in stable subject. to 10% in limit for loans
certain cases certain cases granted to a
(e.g. issued by (e.g. issued by state or an
domestic or domestic or equally
foreign banks). foreign banks). financially
stable subject.
Switzerland - Second pillar pension plans 5% 5% 10% 10% Limits are set to dito 100% 10% -
(institutions de prévoyance) the assets held
Other / Other / Other / Other / not to the funds, Other /
Comments: This Comments: This Comments: Comments: This which are used Comments: No
limit refers to limit refers to Exception for limit refers to as vehicles. limits for
equities of a investment in a claims on the debt One looks classical bonds.
single company. single real Confederation, instruments beyond the Private debt,
estate. cantons or issued by a funds, CLO etc are
municipalities in single issuer. regardless of considered as
particular their nature, to alternative
192
Bills and
bonds issued
by public
sector Funds funds
administration
ensure that investments and
limits which a limit of 15%
apply to the applies.
assets held are
not exceeded.
Turkey - Occupational pension plan: 10% 0% 100% 10% 4% 4% 50% 6% Investment limits in single
defined benefit, defined issuer/issue are the same
contribution, or hybrid Other / Other / Other / Other / Other / for occupational plans
- Personal pension plans: defined Comments: - Comments: Not Comments: - Comments: The Comments: The and personal plans.
contribution (unprotected) Limit for money allowed Limit for money fund should be fund should be
and capital and capital registered by registered by More than 10% of the
market market the Capital the Capital fund portfolio cannot be
instruments instruments Markets Board. Markets Board. invested in the money
from one single from one single and capital markets
issuer = 10%; issuer = 10%; instruments provided by
- Limit for - Limit for an issuer.
money and money and The sum of investment in
capital market capital market intermediary institutions
instruments instruments and partnership warrants
from one group from one group cannot exceed 15% of
= 30% = 30% the fund portfolio. In
addition, total warrants of
intermediary institutions
and partnerships issued
in accordance with the
same assets cannot
exceed 10% of fund
portfolio, and the sum of
warrants/partnership
warrants issued by a
single issuer cannot
exceed 5% of the fund
portfolio.
United - Occupational pension plans 100% 100% 100% 100% 100% 100% 100% 100% General requirement for
Kingdom diversification and
suitability.
United States - Private pension plans 100% 100% 100% 100% 100% 100% 100% 100% General requirement for
- State and local government diversification. Certain
employee retirement funds Other / Other / Other / Other / Other / Other / Other / Other / limitations apply for
- Federal government retirement Comments: Comments: Comments: Comments: Comments: Comments: Comments: Comments: holding employer
193
Bills and
bonds issued
by public
sector Funds funds
administration
funds securities or real property
Limited by Limited by Limited by Limited by Limited by Limited by Limited by Limited by under certain retirement
fiduciary fiduciary fiduciary fiduciary fiduciary fiduciary fiduciary fiduciary plans.
diversification diversification diversification diversification diversification diversification diversification diversification
rules. rules. rules. rules. rules. rules. rules. rules.
Albania - Voluntary pension funds 0% 0% 30% 10% 30% 0% 0% 20% -
Other / Other / Other / Other /

Comments: - Comments: Comments: No Comments:
Limit for bonds, Limit for debt limit 20% in any
treasury bills securities with a Albanian single
and other rating of BBB or issuers
securities higher as rated
issued or by Standard &
guaranteed by a Poor’s or Fitch,
single EU a rating of Baa3
Member State or higher as
or a single rated by
OECD country Moody’s, a
or by a single rating of BBB
relevant central (low) or higher
bank: 30%. This as rated by
ceiling shall be DBRS
increased to (Dominion Bond
100% in a Rating Service)
single issuer, in a single
after receiving issuer = 10%
approval by
FSA, based on
the arguments
provided for
such an
investment
policy.
- Limit for debt
securities with a
rating of BBB or
higher as rated
by Standard &
Poor’s or Fitch,
194
Bills and
bonds issued
by public
sector Funds funds
administration
a rating of Baa3
or higher as
rated by
Moody’s, a
rating of BBB
(low) or higher
as rated by
DBRS
(Dominion Bond
Rating Service)
in a single
issuer = 10%
Armenia - Mandatory pension fund - 10% 0% Maximum 20% 10% 25% 10% 10% Limit of assets in one
balanced funds investments in foreign country = 15%
Other / single issue Other / Other / Other / Other /
Comments: - (tranche) for Comments: - Comments: This Comments: Comments: This
Limit for securities Limit for limit refers to Maximum limit limit refers to
investments in issued or investments in assets in a fund on investments assets in a bank
securities of one guaranteed by securities of one or funds under in Armenian or related
issuer = 10%; the Republic of issuer = 10%; management of funds, different banks.
- Limit for Armenia, local - Limit for a manager or from a standard
investments in authorities, investments in related open-end,
securities of Central Bank of securities of managers. public fund, and
related issuers Armenia. If related issuers foreign funds,
= 15%; securities are = 15%; different from
issued only for - Limit on open-end,
pension funds, Investment in public funds
then maximum covered bonds which mainly
50% of one issuer invest in
investments in =25% transferable and
single issue liquid asset.
(tranche). Investment in a
private fund is
Maximum 20% not allowed.
investments in
single issue
(tranche) for
securities
issued or
guaranteed by a
195
Bills and
bonds issued
by public
sector Funds funds
administration
foreign state,
foreign Central
Bank
Armenia - Mandatory pension fund - 10% 0% Maximum 20% 10% 25% 10% 10% Limit of assets in one
conservative funds investments in foreign country = 15%
Other / single issue Other / Other / Other / Other /
Comments: - (tranche) for Comments: - Comments: This Comments: Comments: This
Limit for securities Limit for limit refers to Maximum limit limit refers to
investments in issued or investments in assets in a fund on investments assets in a bank
- Limit for Armenia, local - Limit for a manager or from a standard
investments in authorities, investments in related open-end,
securities of Central Bank of securities of managers. public fund, and
related issuers Armenia. If related issuers foreign funds,
= 15%; securities are = 15%; different from
(applies to pension funds, Investment in public funds
investment then maximum covered bonds which mainly
funds as well) 50% of one issuer invest in
single issue liquid assets.
private fund is
investments in
single issue
(tranche) for
securities
issued or
guaranteed by a
foreign state,
foreign Central
Bank
Armenia - Mandatory pension fund - fixed 0% Maximum 20% 10% 10% 10% Limit of assets in one
income funds investments in foreign country = 15%
single issue Other / Other / Other /
(tranche) for Comments: - Comments: Comments: This
securities Limit for Maximum limit limit refers to
196
Bills and
bonds issued
by public
sector Funds funds
administration
issued or investments in on investments assets in a bank
guaranteed by securities of one in Armenian or related
the Republic of issuer = 10%; funds, different banks.
Armenia, local - Limit for from a standard
authorities, investments in open-end,
Central Bank of securities of public fund, and
Armenia. If related issuers foreign funds,
securities are = 15%; different from
pension funds, Investment in public funds
then maximum covered bonds which mainly
50% of one issuer invest in
single issue liquid assets.
private fund is
investments in
single issue
(tranche) for
securities
issued or
guaranteed by a
foreign state,
foreign Central
Bank
Armenia - Voluntary pension fund 10% 0% Maximum 20% 10% 25% 5% 10% Limit on Investment in
investments in securities issued by an
Other / single issue Other / Other / Other / Other / International financial
Comments: - (tranche) for Comments: - Comments: This Comments: Comments: This organisation =25%
Limit for securities Limit for limit refers to Maximum limit limit refers to Limit of assets in one
investments in issued or investments in assets in a fund on investments assets in a bank foreign country = 25%
- Limit for Armenia, - Limit for a manager or from a standard
investments in Central Bank. investments in related open-end,
securities of Maximum 20% securities of managers. public fund, and
related issuers investments in related issuers foreign funds,
= 15%; single issue = 15%; (per different from
(tranche) for issuer open-end,
197
Bills and
bonds issued
by public
sector Funds funds
administration
securities limitations apply public funds
issued or to investment which mainly
guaranteed by a funds as well) invest in
foreign state, - Limit on transferable and
foreign Central Investment in liquid assets.
Bank covered bonds Investment in a
of one issuer private fund is
=25% not allowed.
Botswana All licensed Retirement Funds 5% 5% 5% 5% 0% 5% Hedge Funds: 2.5%
Private equity: 2.5%
Brazil Closed pension funds 10% or 20%. 10% 100% 10% or 20% As a rule, there As a rule, there NA NA
are no separate are no separate
Other / Other / Other / Other / limits for retail limits for private
Comments: As Comments: As Comments: - Comments: As investment investment
a rule, a single a rule, a single Limit for federal a rule, a singlefunds. Limits funds. Limits
asset or an asset or an government asset or an are defined by are defined by
issuer cannot issuer cannot bonds = 100%. issuer cannot underlying underlying
represent more represent more - Limit for represent more investments investments
than 10% of the than 10% of the assets issued than 10% of the (e.g. Private (e.g.
pension fund's pension fund's State and Local pension fund's Equity funds in equity/bonds).
portfolio portfolio. Government portfolio which the However, some
(included equity In addition, a bonds. (included equitypension fund kinds of funds
and bonds). But pension fund and bonds). But can only buy up have specific
there is an may not hold there is an to 25% of the limit (e.g.
exception for more than 25% exception for net assets of Private Equity
assets issued of the net assets issued the investment funds in which
by financial assets of an by financial fund). the pension
institutions investment institutions fund can only
authorised by fund. authorised by buy up to 25%
Central Bank of Central Bank of of the net
Brazil which can Brazil which can assets of the
represent up to represent up to investment
20% of the 20% of the fund).
pension fund's pension fund's
portfolio portfolio
(included equity (included equity
and bonds). and bonds).
Brazil Open Pension Fund (Defined 15% (direct) 10% (indirect) 100% (direct) 15% (direct) 49% (direct) 49% (direct) 10% (indirect) 25% (direct)
Contribution Plans) to Qualified
Participants Other / Other /
198
Bills and
bonds issued
by public
sector Funds funds
administration
Comments: Comments:
The limit applies The limit applies
to the issuer of to the issuer of
the instrument the instrument
that holds the that holds the
asset in asset in
question question
Brazil Open Pension Fund (Defined 15% (direct) 10% (indirect) 100% (direct) 15% (direct) 49% (direct) 49% (direct) 10% (indirect) 25% (direct)
Contribution Plans) to all other
Participants Other / Other /
Comments: Comments:
The limit applies The limit applies
to the issuer of to the issuer of
the instrument the instrument
that holds the that holds the
asset in asset in
question question
Brazil Traditional Plans 15% (direct) 10% (indirect) 100% (direct) 15% (direct) 49% (direct) 49% (direct) 10% (indirect) 25% (direct)
Other / Other /
Comments The Comments: The
limit applies to limit applies to
the issuer of the the issuer of the
instrument that instrument that
holds the asset holds the asset
in question in question
Bulgaria - Supplementary mandatory 5% 5% 100% 5% 5% 0% 0% 5% -

universal pension funds (UPF)
- Supplementary mandatory Other / Other / Other / Other / Other / Other / Other / Other /
professional pension funds (PPF) Comments: - Comments: - Comments: - Comments: - Comments: - Comments: Not Comments: Not Comments: -
Limit for shares Limit for the Limit for Limit for Limit for shares allowed allowed deposits in a
of a single total sovereign financial and units of single bank
issuer = 5%; investments in securities instruments and UCITS under
- Limit for real estate = without infrastructure one
shares of a 5%; investment bonds issued by management
single issuer - Limit for a rating of third- a single issuer = company = 5%
and persons single estate - country 5%;
connected not specified; (specified in an - Limit for
therewith = ordinance of the financial
199
Bills and
bonds issued
by public
sector Funds funds
administration
10%. national instruments
competent issued by a
authority) single issuer
emitted by a and persons
single issuer connected
(country) = 5%; therewith =
- Limit for 10%.
sovereign
securities of
third-country,
admitted to
trading in a
regulated
market in a EU
country = 10%.
Bulgaria - Supplementary voluntary pension 5% 5% 100% 5% 10% 0% 0% 5% -
funds with occupational schemes
(VPFOS) Other / Other / Other/ Other / Other / Other / Other / Other /
Comments: - Comments: - Comments: - Comments: - Comments: - Comments: Not Comments: Not Comments: -
Limit for shares The limit is for a Limit for Limit for bonds Limit for shares allowed allowed deposits in a
of a single single estate sovereign issued by a and units of single bank
issuer = 5%; securities single issuer = UCITS under
- Limit for without 5%; one
shares of a investment - Limit for bonds management
single issuer rating issued by a company = 10%
and persons of third-country single issuer
connected (specified in an and persons
therewith = ordinance of the connected
10%; national therewith =
- Limit for competent 10%.
securities authority) - Limit for bonds
issued by the emitted by a issued by the
sponsoring single issuer sponsoring
undertaking = (country) = 5%; undertaking =
5%. -Limit for 5%;
sovereign - Limit for bonds
securities of issued by
third-country, sponsoring
admitted to undertaking and
trading in a persons
200
Bills and
bonds issued
by public
sector Funds funds
administration
regulated connected
market in a EU therewith =
country = 10%. 10%.
Bulgaria - Supplementary voluntary pension 5% 5% 100% 5% 10% 0% 0% 5% -

funds (VPF)
Other / Other / Other/ Other / Other / Other / Other / Other /
Comments: - Comments: - Comments: - Comments: - Comments: - Comments: Not Comments: Not Comments: -
Limit for shares The limit is for a Limit for Limit for bonds Limit for shares allowed allowed deposits in a
of a single single estate sovereign issued by a and units of single bank
issuer = 5%; securities single issuer = UCITS under
- Limit for without 5%; one
shares of a investment - Limit for bonds management
single issuer rating issued by a company = 10%
and persons of third-country single issuer
connected (specified in an and persons
therewith = ordinance of the connected
10%. national therewith =
competent 10%.
authority)
emitted by a
single issuer
(country) = 5%;
-Limit for
sovereign
securities of
third-country,
admitted to
trading in a
regulated
market in a EU
country = 10%.
Colombia - Conservative Fund 10% 0% No specific limit 10% 30% 0% 0% 10%
- With the resources of all
type of funds, the
Other / Other / Other / Other / Other / Other / Other / Other / Pension Fund Manager is
Comments: - If Comments: Not Comments: Comments: - If Comments: This Comments: Not Comments: Not Comments: not not allowed to have more
the issuer is allowed Limit exempted the issuer is issue limit allowed allowed taking into than 50% of the assets of
affiliated, this for both issue affiliated, this changes to 50% account bank Closed-end collective
limit decreases and issuer. limit decreases when investing deposits and investment schemes. If
to 5% to 5% in single closed- capital or the allocation of
201
Bills and
bonds issued
by public
sector Funds funds
administration
- The - The limit by end investment interest expiry resources of all type of
investment limit issue reaches schemes. dates of the last funds exceed 30% of the
in a single 30% when 20 days Closed-end CIS, the
issuer is 10% by adding up all Up to 10% board of directors of the
type of Fund (A, the resources of invested in a PFM must approve the
B, C and D). But the different single issuer investment.
investment in a types of funds (including its
single issuer (A, B, C and D). headquarters,
cannot go up to subsidiaries and
30% when agencies) taking
considering the into account the
aggregation of fund’s value.
all Funds A to
D. Issue limit is
30% adding up
all the
resources of the
different types
of funds (A to
D).
Colombia - Moderate Fund 10% 10% of the No specific limit 10% 30% 50% 0% 10% - With the resources of all
issuer and 30% type of funds, the
Other / of the issue Other / Other / Other / Other / Other / Other / Pension Fund Manager is
Comments: - If (adding up all Comments: Comments: - If Comments: This Comments: The Comments: Not Comments: not not allowed to have more
the issuer is the resources of Limit exempted the issuer is issue limit limit of allowed taking into than 50% of the assets of
affiliated, this the different for both issue affiliated, this changes to 50% investment in account bank Closed-end collective
limit decreases types of funds and issuer. limit decreases when investing single private deposits and investment schemes. If
to 5% (A, B, C and to 5% in single closed- equity fund of capital or the allocation of
- The D)). - The limit by end investment 50% is a limit interest expiry resources of all type of
investment limit issue reaches schemes. for all the funds dates of the last funds exceed 30% of the
in a single 30% when combined 20 days Closed-end CIS, the
issuer is 10% by adding up all Up to 10% (Funds A to D). board of directors of the
202
Bills and
bonds issued
by public
sector Funds funds
administration
all Funds A to
D. Issue limit is
30% adding up
all the
resources of the
different types
of funds (A to
D).
Colombia - Great Risk Fund 10% 10% of the No specific limit 10% 30% 50% 0% 10% - With the resources of all
issuer and 30% type of funds, the
Other / of the issue Other / Other / Other / Other / Other / Other / Pension Fund Manager is
Comments: - If (adding up all Comments: Comments: - If Comments: This Comments: The Comments: Not Comments: not not allowed to have more
the issuer is the resources of Limit exempted the issuer is issue limit limit of allowed taking into than 50% of the assets of
affiliated, this the different for both issue affiliated, this changes to 50% investment in account bank Closed-end collective
limit decreases types of funds and issuer. limit decreases when investing single private deposits and investment schemes. If
to 5% (A, B, C and to 5% in single closed- equity fund of capital or the allocation of
- The D)). - The limit by end investment 50% is a limit interest expiry resources of all type of
investment limit issue reaches schemes. for all the funds dates of the last funds exceed 30% of the
in a single 30% when combined 20 days Closed-end CIS, the
issuer is 10% by adding up all Up to 10% (Funds A to D). board of directors of the
all Funds A to
D. Issue limit is
30% adding up
all the
resources of the
different types
of funds (A to
D).
Colombia - Programmed Retirement Fund 10% 0% No specific limit 10% 30% 0% 0% 10% - With the resources of all
203
Bills and
bonds issued
by public
sector Funds funds
administration
type of funds, the
Other / Other / Other / Other / Other / Other / Other / Other / Pension Fund Manager is
Comments: - If Comments: Not Comments: Comments: - If Comments: This Comments: Not Comments: Not Comments: not not allowed to have more
the issuer is allowed Limit exempted the issuer is issue limit allowed. allowed taking into than 50% of the assets of
affiliated, this for both issue affiliated, this changes to 50% account bank Closed-end collective
limit decreases and issuer. limit decreases when investing deposits and investment schemes. If
to 5% to 5% in single closed- capital or the allocation of
- The - The limit by end investment interest expiry resources of all type of
investment limit issue reaches schemes. dates of the last funds exceed 30% of the
in a single 30% when 20 days Closed-end CIS, the
issuer is 10% by adding up all Up to 10% board of directors of the
all Funds A to
D. Issue limit is
30% adding up
all the
resources of the
different types
of funds (A to
D).
Costa Rica Private Pensions System: 5% 0% 10% 10% 5% 0% 0% Each pension

Mandatory pension funds (ROP) fund can invest
Other / Other / Other / up to 15% in
Comments: Not Comments: - Comments: Not local bank
allowed Limit for allowed deposits. There
AAA/AA debt is no a specific
issuer = 10%; limit for local
- Limit for bank deposits
A/BBB debt for a single
issuer = 5% bank. However,
there is a limit of
a maximum of
204
Bills and
bonds issued
by public
sector Funds funds
administration
10% on
securities
issued by the
same issuer.
Therefore, the
funds can invest
up to 10% in
instruments of a
single bank
(bank deposits
local, debt,
equity, etc.).
Costa Rica Private Pensions System: 5% 0% 10% 10% 5% 0% 0% Each pension
Voluntary fund can invest
Other / Other / Other / up to 15% in
Comments: Not Comments: - Comments: Not local bank
allowed Limit for allowed deposits. There
there is a limit of
a maximum of
10% on
securities
issued by the
same issuer.
Therefore, the
funds can invest
up to 10% in
instruments of a
single bank
(bank deposits
local, debt,
equity, etc.).
Costa Rica Private Pensions System: Special 5% 0% 10% 10% 5% 0% 0% Each pension
Occupational complementary fund can invest
pensions funds (DB: Lotery, FRE, Other / Other / Other / up to 15% in
ICE and DC: BCAC Ind, BCAC Col, Comments: Not Comments: - Comments: Not local bank
205
Bills and
bonds issued
by public
sector Funds funds
administration
ICT, BCR and Hybrid: BNCR). allowed Limit for allowed deposits. There
there is a limit of
a maximum of
10% on
securities
issued by the
same issuer.
Therefore, the
funds can invest
up to 10% in
instruments of a
single bank
(bank deposits
local, debt,
equity, etc.).
Croatia Mandatory pension fund 3% per issuer 0% 20% per issue 3% per issuer 3% in a single 3% in a single Up to 5% but 5% No limits for financing or
Category A investment fund investment fund only through securitisation of
Other / Other / Other / repo agreement Other/ infrastructure projects in
Comments: Comments: Comments: Other / Other / and sell-buy Comments: Republic of Croatia that
10% if issuer is Limit for 10% if issuer is Comments: Max Comments: Max back In the context of are classified as
company whose government company whose 5% in all funds 5% in all funds agreement, for this limit, bank infrastructure project by
shares are bonds shares are managed by the managed by the a limited period deposits also government.
listed on the - limit for bonds listed on the same same of max. 3 include cash on
official market guaranteed by official market investment fund investment fund months (for cash account
Republic of management management liquidity
Croatia, EU, company company purposes)
OECD =3%
-limit for
municipal bonds
in single issue
=3%
Croatia Mandatory pension fund 3% per issuer 0% 20% per issue 3% per issuer 3% in a single 3% in a single Up to 5% but 5% No limits for financing or
Category B investment fund investment fund only through securitisation of
Other / Other / Other / repo agreement Other/ infrastructure projects in
Comments: Comments: Comments: Other / Other / and sell-buy Comments: Republic of Croatia that
206
Bills and
bonds issued
by public
sector Funds funds
administration
10% if issuer is Limit for 10% if issuer is Comments: Max Comments: Max back In the context of are classified as
company whose government company whose 5% in all funds 5% in all funds agreement, for this limit, bank infrastructure project by
shares are bonds in single shares are managed by the managed by the a limited period deposits also government.
listed on the issue listed on the same same of max. 3 include cash on
official market - limit for bonds official market investment fund investment fund months (for cash account
guaranteed by management management liquidity
Republic of company company purposes)
Croatia, EU,
OECD in single
issue=3%
-limit for
municipal bonds
in single issue
=3%
Croatia Mandatory pension fund 0% 0% 20% per issue 3% per issuer 3% in a single 0% Up to 5% but 5%
Category C investment fund only through
Other / Other / repo agreement
Comments: Comments: Other / and sell-buy
Limit for 10% if issuer is Comments: Max back
government company whose 5% in all funds agreement, for
bonds shares are managed by the a limited period
- limit for bonds listed on the same of max. 3
guaranteed by official market investment fund months (for
Republic of management liquidity
Croatia, EU, company purposes)
OECD =3%
-limit for
municipal bonds
=3%
Croatia Open-ended voluntary pension 10% per issuer 0% 100%, but 10% per issuer 10% 5% Up to 5% but 5%
fund under the only through
Other / condition that Other/ Other / Other / repo agreement Other /
Comments: The the fund assets Comments: The Comments: Comments: and sell-buy Comments:
sum of the are invested in sum of the Limit for UCITS Limit for back No limit for the
issuers >5% minimum 6 issuers >5% and non-UCITS alternative agreement, for amount of cash
has to be different issues has to be retail investment investment a limited period that can be held
<=40% of the and that the <=40% of the funds funds with a of max. 3 on cash
total assets – maximum total assets – private offering months accounts in the
private sector exposure to one equities are also same credit
bonds are also issue is 30%. included in this institution
207
Bills and
bonds issued
by public
sector Funds funds
administration
included in this limit.
limit Other /
Comments:
Only if this
exemption is
clearly stated in
prospectus and
marketing
materials.
Croatia Closed-ended voluntary pension 10% per issuer 0% 100%, but 10% per issuer 10% 5% Up to 5% but 5%
fund under the only through
Other / condition that Other / Other / Other / repo agreement Other /
Comments: The the fund assets Comments: The Comments: Comments: and sell-buy Comments:
sum of the are invested in sum of the Limit for UCITS Limit for back No limit for the
issuers >5% minimum 6 issuers >5% and non-UCITS alternative agreement, for amount of cash
has to be different issues has to be retail investment investment a limited period that can be held
<=40% of the and that the <=40% of the funds funds with a of max. 3 on cash
total assets - maximum total assets – private offering months (for accounts in the
private sector exposure to one equities are also liquidity same credit
bonds are also issue is 30%. included in this purposes) institution
included in this Other / limit.
limit Comments:
Only if this
exemption is
clearly stated in
prospectus and
marketing
materials.
Dominican For debt For debt
Republic securities securities
same issuer, same issuer,
that can be that can be
Banks, Savings Banks, Savings
and Loans, and Loans; it
National Bank will apply the
of Exports more restrictive
(BANDEX) and of the following
Housing three:
208
Bills and
bonds issued
by public
sector Funds funds
administration
National • 0.15*VF*FR
Institution; it will • K*FR (Sum of
apply the more all administrated
restrictive of the funds)
following three: • 0.4*EV (Sum
• 0.15*VF*FR of all
• K*FR (Sum of administrated
all administrated funds)
funds)
• 0.4*EV (Sum Where:
of all VF: Value of the
administrated administrated
funds) pension fund.
FR: Risk factor
Where: assigned by the
VF: Value of the Risk
administrated Classification
pension fund. and Investment
FR: Risk factor Limits
assigned by the Commission.
Risk K: Issuer’s
Classification equity.
and Investment EV: Issuance.
Limits
Commission. -For Debt
K: Issuer’s securities
equity issued by a
EV: Issuance. same issuer
that can be
-For Debt public and
securities private
issued by a companies, it
same issuer will apply the
that can be more restrictive
public and of the following
private three:
companies, it • 0.10*VF*FR
will apply the • 0.2*A (Sum of
more restrictive all administrated
of the following funds)
three: • 0.4*EV (Sum
209
Bills and
bonds issued
by public
sector Funds funds
administration
• 0.10*VF*FR of all
• 0.2*A (Sum of administrated
all administrated funds)
funds)
• 0.4*EV (Sum Where:
of all A: Total assets
administrated of the company.
funds) VF: Value of the
administrated
Where: pension fund.
A: Total assets FR: Risk factor
of the company. assigned by the
VF: Value of the Risk
administrated Classification
pension fund. and Investment
FR: Risk factor Limits
assigned by the Commission.
Risk EV: Issuance.
Classification -For equity
and Investment issued by a
Limits same issuer, it
Commission. will apply the
EV: Issuance. more restrictive
-For equity of the following
issued by a two:
same issuer, it • 0.05*VF
will apply the • 0.10*S*P
more restrictive (Sum of all
of the following administrated
two: funds)
• 0.05*VF
• 0.10*S*P S: Number of
(Sum of all shares in issue
administrated from the same
funds) type
P: Price of the
S: Number of same type of
shares in issue share
from the same
type
P: Price of the
210
Bills and
bonds issued
by public
sector Funds funds
administration
same type of
share
Egypt Defined benefit and defined Should be listed Should be 5% of funds’ 5% of a single 5% of a single Granted only for The bank
contribution pension funds in the stock inside the money for one fund's fund's pension fund should be
exchange country borders type of bonds certificates certificates members registered with
the Central
Bank.
Gibraltar - Occupational pension schemes The assets shall The assets shall The assets shall The assets shall The assets shall The assets shall The assets shall The assets shall
be properly be properly be properly be properly be properly be properly be properly be properly
diversified in diversified in diversified in diversified in diversified in diversified in diversified in diversified in
such a way as such a way as such a way as such a way as such a way as such a way as such a way as such a way as
to avoid to avoid to avoid to avoid to avoid to avoid to avoid to avoid
excessive excessive excessive excessive excessive excessive excessive excessive
reliance on any reliance on any reliance on any reliance on any reliance on any reliance on any reliance on any reliance on any
particular asset, particular asset, particular asset, particular asset, particular asset, particular asset, particular asset, particular asset,
issuer or group issuer or group issuer or group issuer or group issuer or group issuer or group issuer or group issuer or group
of undertakings of undertakings of undertakings of undertakings of undertakings of undertakings of undertakings of undertakings
and and and and and and and and
accumulations accumulations accumulations accumulations accumulations accumulations accumulations accumulations
of risk in the of risk in the of risk in the of risk in the of risk in the of risk in the of risk in the of risk in the
portfolio as a portfolio as a portfolio as a portfolio as a portfolio as a portfolio as a portfolio as a portfolio as a
whole and whole and whole and whole and whole and whole and whole and whole and
investments in investments in investments in investments in investments in investments in investments in investments in
assets issued assets issued assets issued assets issued assets issued assets issued assets issued assets issued
by the same by the same by the same by the same by the same by the same by the same by the same
issuer or by issuer or by issuer or by issuer or by issuer or by issuer or by issuer or by issuer or by
issuers issuers issuers issuers issuers issuers issuers issuers
belonging to the belonging to the belonging to the belonging to the belonging to the belonging to the belonging to the belonging to the
same group same group same group same group same group same group same group same group
shall not expose shall not expose shall not expose shall not expose shall not expose shall not expose shall not expose shall not expose
the institution to the institution to the institution to the institution to the institution to the institution to the institution to the institution to
excessive risk excessive risk excessive risk excessive risk excessive risk excessive risk excessive risk excessive risk
concentration. concentration. concentration. concentration. concentration. concentration. concentration. concentration.
Guernsey Private Occupational Pension 100% 100% 100% 100% 100% 100% 100% 100%
Schemes
Where a
scheme has
adopted a Third
Party Directed
investment
211
Bills and
bonds issued
by public
sector Funds funds
administration
approach direct
real estate
investments are
not permitted.
Guernsey Private Personal Pension Schemes 100% 100% 100% 100% 100% 100% 100% 100%
Where a
scheme has
adopted a Third
Party Directed
investment
approach direct
real estate
investments are
not permitted.
Hong Kong, - Mandatory provident fund (MPF) 10% 0% 30% 30% 10% 0% 0% 25% -
China schemes
Other / Other / Other / Other / Other / Other /
Comments: Not Comments: - Comments: - Comments: Not Comments: Not Comments: - In
allowed Limit for bonds Limit for bonds allowed allowed the case funds
issued by a issued by a less than
single exempt single exempt HK8mil, limit for
authority = 30%; authority = 30%; deposits with
- Limit for bonds - Limit for bonds same bank =
issued by a issued by a 25%;
single non- single non- - In the case of
exempt exempt funds greater
authority = 10% authority = 10% than HK8 mil,
limit on deposits
with same bank
= 10%
India - Central and State Government 5 % for sponsor 5 % for sponsor
Pension group and 10% group and 10%
- National Pension System- for non-sponsor for non-sponsor
Government group. group.
- National Pension System-
Swavalamban Details: - Details: -
NPS NPS
investments investments
have been have been
212
Bills and
bonds issued
by public
sector Funds funds
administration
restricted to 5% restricted to 5%
of the ‘paid up of the ‘net-
equity capital’ of worth’ of all the
all the sponsor sponsor group
group companies or
companies or 5% of the total
5% of the total AUM in debt
AUM under securities
Equity exposure (excluding Govt.
whichever is securities)
lower, in each whichever is
respective lower in each
scheme and respective
10% in the paid scheme and
up equity capital 10% of the net-
of all the non- worth of all the
sponsor group non-sponsor
companies or group
10% of the total companies or
AUM under 10% of the total
Equity exposure AUM in debt
whichever is securities
lower, in each (excluding Govt.
respective securities)
scheme. whichever is
lower, in each
respective
scheme.
India - National Pension System- Private 5 % for sponsor 5 % for sponsor
group and 15% group and 10%
for non-sponsor for non-sponsor
group. group.
Details: - Details: -
NPS NPS
investments investments
have been have been
restricted to 5% restricted to 5%
of the ‘paid up of the ‘paid up
equity capital’ of equity capital’ of
213
Bills and
bonds issued
by public
sector Funds funds
administration
all the sponsor all the sponsor
group group
companies or companies or
5% of the total 5% of the total
AUM under AUM under
Equity exposure Equity exposure
whichever is whichever is
lower, in each lower, in each
respective respective
scheme and scheme and
15% in the paid 10% in the paid
up equity capital up equity capital
of all the non- of all the non-
sponsor group sponsor group
companies or companies or
15% of the total 10% of the total
AUM under AUM under
Equity exposure Equity exposure
whichever is whichever is
lower, in each lower, in each
respective respective
scheme. scheme.
Indonesia Approved Employer Pension 20% The limit for 100% 20% 20%, except 10%, could 10% 20% Limitation is set for
Funds, Approved Financial investment in 10% for private exceed 10% if investment in a Party (a
Institution Pension Funds property is 20% equity mutual the issuer is person or a legal entity,
of total funds financial including the affiliated
investment. It institution entity) and calculated
can be placed in across types of
one property. investment.
Jamaica - Approved Superannuation Fund 5% 5% 5% 5% 5% 5%
- Approved Retirement Scheme
Government of Deposit Related Party
Jamaica Administration loans limited to
securities and Type I 1%.
exempted Pooled Funds
exempted
Jordan - Voluntary private pension plans 10% 10% 10% 10% 10% 10% 10% - Limit for current
provided by life insurance accounts, deposits at
214
Bills and
bonds issued
by public
sector Funds funds
administration
companies Other / Other / Other / Other / Other / Other / Other / banks and certificate of
Comments: - Comments: - Comments: This Comments: - Comments: - Comments: - Comments: - deposits with or issued by
limit refers to any bank = 20% of total
Jordanian assets
Governmental
entities and to a
single AAA
country.
Jordan - Voluntary private pension plans 15% - Limit for current
provided by Takaful insurance accounts, deposits at
companies banks and certificate of
deposits with or issued by
any bank = 35% of total
assets
Kazakhstan Unified accumulative pension fund 10% of the total 0% (not 25% of a single 25% of issue 0% (not 0% (not 0% (not The total limit
number of allowed) issue. allowed) allowed) allowed) for local banks
outstanding Other / (equities, bonds
shares. Other / Comments: and deposits)
Comments: For corporate shall not exceed
Other / No limits for bonds issuer 40%.
Comments: local limits apply For foreign
Limits for equity government depending on banks limits
apply bonds and its credit rating, apply
depending on money market amount of depending on
issuer credit instruments. shareholder’s its credit rating,
rating, amount For foreign equity and amount of
of shareholder’s sovereign financial shareholder’s
equity and bonds issuer sustainability equity and
financial limits apply ratios. financial
sustainability depending on For A- and sustainability
ratios. its credit rating. above rated ratios.
For A- and For AA+ and assets- Credit rating of
above rated above rated exposure limit the foreign bank
assets- assets- up to 3%, for must be no less
exposure limit exposure limit BBB+/- up to than A-, as
up to 3%, for up to 15%, for 2%, for BB+/- established by
BBB+/- up to AA/BBB- up to up to 1.5%. Standard&Poor'
2%, for BB+/- 7%, for BB+/- s
up to 1.5%. up to 3.5%. For A- and
In order to be above rated
215
Bills and
bonds issued
by public
sector Funds funds
administration
eligible for foreign bank -
pension exposure limit
investments, up to 3%.
foreign equity
should have
market
capitalisation no
lower than 10
billion USD.
Kazakhstan Voluntary accumulative pension - Limit for 10% Since 2013, the Unified
funds securities Accumulation Pension
issued by the Fund was established in
same juristic Kazakhstan and all
person = 10%; private accumulative
- Limit for pension funds’ assets
securities were transferred to it.
issued by the Legislation on pension
same group of funds provides for the
affiliated possibility of creating
enterprises = voluntary accumulative
10%. pension funds in
Kazakhstan. However
from 2013 to the present,
not a single voluntary
fund has been
established
Kenya - Occupational Retirement Benefits 15% 20% 15% per issue and per
Schemes issuer limit.
- Individual Retirement Benefits The limit does not apply
Schemes to government securities.
- Umbrella Retirement Benefits
Schemes
- National Social Security Fund
(NSSF)
Kosovo - Mandatory pension fund 5% 0% 30% 10% 100% 0% 0% No limit

Comments: The Comments: Not Comments: Comments: Comments: Not Comments: Not
maximum allowed pension funds 10% for AA allowed allowed
proportion of the can invest in rated and
216
Bills and
bonds issued
by public
sector Funds funds
administration
securities of any government above; 5%
single issuer, securities of when rated
including its Kosovo up to below AA
Affiliated 30%,
Entities, which 10% for AA
may be held by rated bonds and
the Kosovo above; 5%
Pensions when rated
Savings Trust, below AA
is five percent
(5%) for stocks
and thirty
percent (30%)
for bonds. No
such limitation
shall apply for
Government
Securities of
Kosovo.
Kosovo - Voluntary pension fund 5% 0% 30% 10% 100% 0% 0% No limit

Comments: Not Comments: Not Comments: Not
allowed allowed allowed
Liechtenstein Defined Contribution Plans 5% No limit No limit 10% Not relevant Not relevant 10% No limit for bank -
Defined Benefit Plans because limits because limits deposits only for
Pension Funds Other / Other / are set to the are set to the banks in EEA
Comments: This Comments: This assets held not assets held not and
limit refers to limit refers to to the funds, to the funds, Switzerland,
equities of a debt which are used which are used 10% limit for all
single company instruments as vehicles. as vehicles. other bank
issued by a One looks One looks deposits
single issuer. beyond the beyond the
funds, funds,
regardless of regardless of
their nature, to their nature, to
ensure that ensure that
limits which limits which
apply to the apply to the
assets held are assets held are
217
Bills and
bonds issued
by public
sector Funds funds
administration
not exceeded. not exceeded.
In Switzerland In Switzerland
institutional institutional
funds are funds are
allowed allowed.
Malawi Defined Contributions occupational 100% 100% 100% 100% 100% 100% 100% 100% Malawi does not
pension funds; and Defined prescribe specific
Benefits occupational pension portfolio limits per issuer
funds except that pension funds
are not permitted to
invest more than five per
cent of their assets in
employer assets. That is,
funds are not permitted to
make investments in, or
loans to, an employer-
sponsor, a member or
their associates.
Maldives - Maldives Retirement Pension The Authority Not allowed The Authority The Authority The Authority The Authority Not allowed Total fixed The Authority does not
Scheme (MRPS) does not under the does not does not does not does not under the deposits to a impose any quantitative
impose any Maldives impose any impose any impose any impose any Maldives single Bank restrictions.
quantitative Pension Act quantitative quantitative quantitative quantitative Pension Act should not
restrictions. restrictions. restrictions. restrictions restrictions exceed by 50%
of the aggregate
The Maldives Limits set by the Limits set by the MRPS has not MRPS has not fund
Pension Maldives Maldives yet started yet started
Administration Pension Pension investing in investing in MRPS total
Office does not Administration Administration Retail Private fixed deposits
impose any Office. Office. Investment Investment should not
limits on this Funds, hence Funds, hence exceed 25% of
class of asset they have not they have not the respective
either. yet set a yet set a Bank’s total
quantitative quantitative Fixed Deposits.
restriction on restriction on
this class of this class of
asset. asset.
Malta - Occupational Retirement Limit for - Limit for Limit for 100% subject to 0% 0% No limit (i.e. -
Schemes securities which Limit for assets securities which securities which various criteria 100%)
are not traded in in immovable are not traded in are not traded in Other /
or dealt on a property = 30% or dealt on a or dealt on a Comments: A
218
Bills and
bonds issued
by public
sector Funds funds
administration
regulated subject to: regulated regulated pension fund
market = 10% market = 30% market = 30% shall not grant
30% Direct loans or act as
investment in Limit for Limit for guarantor on
Limit for commercial securities securities behalf of a third
securities immovable traded on traded on party. This is
traded on property = 10% regulated regulated without
regulated markets = no markets = no prejudice to the
markets = no Direct limit (100%) limit (100%) right of the
limit (i.e.100%) investment in Scheme to
residential acquire debt
immovable securities
property = 5%
Indirect
investment in
commercial or
residential
immovable
property = 10%
Malta - Personal Retirement Schemes No limit No limit No limit No limit No limit No limit 0% for No limit No specific investment
members or limits are imposed by the
connected rules other than a
persons requirement to ensure
100% as long that the assets of the
as the loan is pension fund shall be
not to the properly diversified in
member or such a way as to avoid
connected accumulations of risk in
persons the portfolio as a whole.
Mauritius - Occupational Voluntary Pension 20% 10% 100% 100% 100% 5% 40% 100% -
Schemes
- Non-occupational (Personal) Other / Other / Other / Other / Other / Other / Other / Other /
Voluntary Pension Schemes Comments: - Comments: This Comments: - Comments: No Comments: Comments: As Comments: This Comments: No
Limit for listed limit refers to Limit for Local specific limit is Have to per the limit relates to specific limit is
local equities by the exposure to Sovereign prescribed in consider the provisions in our loan made to prescribed in
a single issuer = a single Bonds = 100%; the Rules with statutory limits Investment the sponsoring the Investment
20%; immoveable - Limit for regard to on an aggregate Rules, i.e. Rule employer of the Rules with
- Limit for listed property. Foreign “Corporate basis, with due 11(6), the pension regards to
foreign equities Sovereign Bonds” issued regard to the aggregate value scheme. “Cash and
219
Bills and
bonds issued
by public
sector Funds funds
administration
by a single Bonds per by a private underlying of investments Repayment of deposits” in a
issuer = 10%; issuer = 20% sector entity. assets of the of a private the loan granted single bank.
- Limit for However, the funds. pension scheme should be fully However, the
unlisted equity Act and Rules in any single guaranteed by Act and Rules
by a single provide for the entity or group the Government provide for the
issuer= 5% necessity of of related of Mauritius. necessity of
diversifying entities or in any diversifying
investments in type of investments in
order to mitigate commodity order to mitigate
risks and whose risks and
requirement to securities are requirement to
explicitly not either: explicitly
provide for 1. Listed on provide for
“Investment securities “Investment
Diversification” exchanges Diversification”
in the prudent licensed by the in the prudent
written Financial written
investment Services investment
policy of a Commission; or policy of a
private pension 2. Listed on private pension
scheme. securities scheme.
exchanges
which are
members of the
World
Federation of
Exchanges,
shall not exceed
5% of the total
value of assets
of the pension
scheme.
Given that
‘private
investment
funds’ are falling
under the above
mentioned
category, the
pension scheme
would require to
220
Bills and
bonds issued
by public
sector Funds funds
administration
relate to the
limit provided in
this Rule 11(6).
The limit of 5%
is also for
unlisted equity
per single
issuer.
Namibia All registered pension funds Varies per 5% 20% 20% 100% N/A Varies per asset 20%
equity
Comments: - Comments: Comments: Per Comments: Comments: Comments: Per
Other / Investment in a Limit for bills, Institution Subject to the 0.25% per institution
Comments: single property bonds or supervision of natural person
Maximum of 5% or property securities the registrar and
per issuer in the development issued or compliance with 5% per single
Common project is limited guaranteed by the Long Term company
Monetary Area to 5% or loans to or Insurance Act
with market guaranteed by a with regards to
capitalisation of statutory body, the underlying
N$5 000 million public investments.
or less; enterprise, local
authority or
Maximum of regional council
10% per issuer authorized by
in the Common law to levy rates
Monetary Area upon
with market immovable
capitalisation property = 20%
greater than
N$5 000 million;
Maximum of 5%
per issuer in
Namibia with
market
capitalisation of
N$500 million or
less;
221
Bills and
bonds issued
by public
sector Funds funds
administration
Maximum of
10% per issuer
in Namibia with
market
capitalisation
greater than
N$500 million;
Maximum of 5%
per issuer
outside the
Common
Monetary Area
in a sector other
than in the
development
capital sector,
with market
capitalisation of
N$5 000 million
or less;
Maximum of
10% per issuer
outside the
Common
Monetary Area
in a sector other
than in the
development
capital sector.
with market
capitalisation
greater than
N$5 000 million;
Nigeria - Defined Contribution Pension Per Issuer 7.5% 0% Federal 7.5% per issuer, 10% per Issuer, 5% per Issuer, 0% per issue limits Limit for Infrastructure
Scheme – Fund I (Below 50 years Per issue 4.5% Government of per issue limits 25% per Issue 20% per Issue is based on the Funds: Per Issuer 5% /
by choice) and 2.5% for Other / Nigeria (FGN) is based on the Other / instruments Per Issue 20%.
GDR Comments: Not Bond: Not instruments Comments: Not credit rating:
allowed applicable. credit rating: allowed BBB – 3% Global Depositary
222
Bills and
bonds issued
by public
sector Funds funds
administration
FGN Eurobond: BBB – 25% A – 5% Receipts/Notes
5% per issuer, A – 30% AA and above – (GDRs/Ns)
2.5% per issue. AA and above – 7.5%.
State Govt: 5% 35%. For Commercial
per issuer, per 2.5% of the Paper 5% for
issue limits is GDN/Eurobond. issuer with “A”
based on the rating, per issue
instruments limit is based on
credit rating: instruments
BBB – 25% credit rating:
A – 30% BBB – 16%
AA and above – A – 20%
35% AA and above –
25%
Nigeria - Defined Contribution Pension Per Issuer 5% 0% Federal 7.5% per issuer, 5% per Issuer, 5% per Issuer, 0% per issue limits Limit for Infrastructure
Scheme – Fund II (Below 50 years Per issue 7.5% Government of per issue limits 25% per Issue 20% per Issue is based on the Funds: Per Issuer 5% /
by default Fund) and 2.5% for Other / Nigeria (FGN) is based on the Other / instruments Per Issue 20%.
allowed applicable credit rating: allowed BBB – 3%
FGN Eurobond: BBB – 25% A – 5%
5% per issuer, A – 30% AA and above –
2.5% per issue AA and above – 7.5%, per issue
State Govt: 5% 35% limit is
per issuer, per applicable.
issue limits is For Commercial
based on the Paper only 5%
instruments per issue limit is
credit rating: based on
BBB – 25% instruments
A – 30% credit rating:
AA and above – BBB – 16%
35% A – 20%
AA and above –
25%
Nigeria - Defined Contribution Pension Per Issuer 2.5% 0% Federal 5% per issuer, 5% per Issuer, 0% 0% per issue limits
Scheme – Fund III (Default fund for Per issue 7.5% Government of per issue limits 15% per Issue is based on the
50 years and above) and 2.5% for Other / Nigeria (FGN) is based on the Other / instruments
223
Bills and
bonds issued
by public
sector Funds funds
administration
per issuer 5%, A – 30% AA and above –
2.5% per issue AA and above – 7.5%, per issue
State Govt: 35%; and 2.5% limit is no
7.5% per issuer, for applicable.
per issue limits GDN/Eurobond For Commercial
is based on the Paper 5% for
instruments issuer with “A”
credit rating: rating, per issue
BBB – 25% limit is based on
A – 30% instruments
AA and above – credit rating:
35% BBB – 16%
A – 20%
AA and above –
25%
Nigeria - Defined Contribution Pension Per Issuer 2.5% 0% Federal 5% per issuer, 5% per Issuer, 0% 0% per issue limits
Scheme – Fund IV (Default fund for Per issue 7.5% Government of per issue limits 15% per Issue is based on the
Retirees only) and 2.5% for Other / Nigeria (FGN) is based on the Other / instruments
5%, 2.5% per A – 30% AA and above –
issue AA and above – 7.5%, per issue
State Govt: 35%; and 2.5% limit is no
7.5% per issuer, for applicable.
per issue limits GDN/Eurobond For Commercial
is based on the Paper 5% for
instruments issuer with “A”
credit rating: rating, per issue
BBB – 25% limit is based on
A – 30% instruments
AA and above – credit rating:
35% BBB – 16%
A – 20%
AA and above –
25%
Nigeria - Defined Benefit Pension Scheme Based on the Based on the Based on the Based on the Based on the Based on the Based on the Based on the
(Approved Existing Schemes “AES” Internal Internal Internal Internal Internal Internal Internal Internal
and Closed Pension Fund Investment Investment Investment Investment Investment Investment Investment Investment
Administrators “CPFs” ) Guidelines / Guidelines / Guidelines / Guidelines / Guidelines / Guidelines / Guidelines / Guidelines/
224
Bills and
bonds issued
by public
sector Funds funds
administration
Policies of the Policies of the Policies of the Policies of the Policies of the Policies of the Policies of the Policies of the
Individual Individual Individual Individual Individual Individual Individual Individual
Schemes Schemes Schemes Schemes Schemes Schemes Schemes Schemes
approved by the approved by the approved by the approved by the approved by the approved by the approved by the approved by the
Commission Commission Commission Commission Commission Commission Commission Commission
North - Mandatory open pension fund 5% 0% - No limit per 10% 2.5% 1.25% not regulated 3% -
Macedonia single bond (domestic)/ 15% (domestic)
Other / Other / issued and Other / (foreign) Other / Other /
Comments: This Comments: Not authorized by Comments: - Other / Comments: only Comments: for
limit refers to allowed Macedonian Limit of nominal Other / Comments: max 2% of the mandatory fund
investment in government and value of single Comments: max 1.25% of total pension fund max 3% of total
instruments foreign instrument 2.5% of total investment in assets for loan investments in
issued by single government of issued by single investment in participation to improve the interest-bearing
company EU country or company = 10% participation units or shares liquidity of the bank-deposits in
authorized in R. OECD country. units or shares of open-end and fund. Not banks that are
Macedonia or - Limit of the of open-end and closed-end allowed licensed by the
EU country or nominal value of closed-end investment otherwise Central Bank of
OECD country. single bond investment funds issued by R. Macedonia
issued by funds issued by single
municipality or single investment
joint stock- investment company
company in R. company authorized in R.
Macedonia = authorized in R. Macedonia;
20% Macedonia;
'max 15% of
total investment
in participation
units or shares
of investment
funds issued by
single
investment
company
authorized in
EU country or
OECD country;
North - Voluntary open pension fund 5% 0% - No limit per 10% 15% (foreign) not regulated not regulated 10% -
Macedonia single bond
Other / Other / issued and Other / Other / Other / Other / Other /
Comments: This Comments: Not authorized by Comments: - Comments: max Comments: not Comments: only Comments: max
225
Bills and
bonds issued
by public
sector Funds funds
administration
limit refers to allowed Macedonian Limit of nominal 15% of total regulated 5% of the 10% of total
investment in government and value of single investment in pension fund investments in
instruments foreign instrument participation assets for loan interest-bearing
issued by single government of issued by single units or shares to improve the bank-deposits in
company EU country or company = 10% of investment liquidity of the banks that are
authorized in R. OECD country. funds issued by fund. Not licensed by the
Macedonia or - Limit of the single allowed Central Bank od
EU country or nominal value of investment otherwise R. Macedonia
OECD country. single bond company
issued by authorized in
municipality or EU country or
joint stock- OECD country;
company in R.
Macedonia =
20%
Pakistan - Private pension funds under VPS minimum 90% not allowed maximum 10% not allowed not allowed not allowed not allowed maximum 10% Per security limit of 10%
- equity sub-fund in T-bills (in per bank of Net Assets.
Other / Other / case of surplus
Comments: per Comments: funds) Other /
security and per Comments:
sector limits Other / bank rating not
Comments: for below A +
surplus funds
Pakistan - Private pension funds under the not allowed not allowed minimum 25% maximum 50% not allowed not allowed not allowed 10% per bank · AA rated = up to 7.5%
Voluntary Pension System (VPS) - in federal · A plus rated = 5%
debt sub-fund government Other / Other / · A minus rated = 2.5%
securities Comments: per Comments:
security Bank rating not
depending on below AA +
rating. AA Plus -
7.5% of net
assets, A+ - up
to 5% of net
assets , A- up to
2.5% of net
assets.
Total exposure
to securities
rated A- not to
exceed 10%
226
Bills and
bonds issued
by public
sector Funds funds
administration
and total
exposure to
securities rated
A- to A+ not to
exceed 25% of
the debt fund.
Pakistan - Private pension funds under the not allowed not allowed 0 to 100% in 5% not allowed not allowed not allowed 20% per bank
Voluntary Pension System (VPS) - Federal
money market sub-fund Government Other / Other /
securities Comments: This Comments:
limit refers to Minimum bank
single company rating not below
subject to rating A+
(A plus or
higher).
Pakistan - Private pension funds under the minimum 70% 0% minimum 10% 0% 0% 0% 0% minimum 10% No limits on single issue,
Voluntary Pension System (VPS) - and maximum however minimum 70%
commodity sub-fund 90% in Other / and maximum 90% of net
commodity Comments: AA assets to be invested in
future contracts rated bank commodity future
contracts traded on
Pakistan Mercantile
Exchange.
Papua New 5% investment When an authorised
Guinea risk exposure, superannuation fund
directly or wishes to exceed the
indirectly to any maximum investment risk
single entity, exposure limit, the
individually or in Trustee Board must
aggregate request prior approval in
writing from the Bank,
stating the basis for
exceeding the maximum
percentage.
Peru - All AFPs, Protective Fund (Fund 0% 0% Limit for No specific limit 0% 0% 0% No specific limit
0) Securities
issued or
guaranteed by
the Local
Government =
227
Bills and
bonds issued
by public
sector Funds funds
administration
30%
considering all
pension funds
managed by a
single AFP
(fund 0 + fund 1
+ fund 2 + fund
3);
- Limit for
Securities
issued or
guaranteed by
the Local
Central Bank =
30%
considering all
pension funds
managed by a
single AFP
(fund 0 + fund 1
+ fund 2 + fund
3);
- Limit for
Securities
issued or
guaranteed by
the Local
Government
and Local
Central Bank
=40%
considering all
pension funds
managed by a
single AFP
(fund 0 + fund 1
+ fund 2 + fund
3).
Peru - All AFPs, Conservative Fund 0% Limit for No specific limit 3% for each 0% 0%
(Fund 1) Securities issuer
228
Bills and
bonds issued
by public
sector Funds funds
administration
issued or
guaranteed by Other /
the Local Comments: -
Government = 5% of the fund
30% assets,
considering all considering all
pension funds pension funds
managed by a (fund 1 + fund 2
single AFP + fund 3)
(fund 0 + fund 1 - Limit in ETF:
+ fund 2 + fund 75% of the limit
3); applicable to
- Limit for each asset
Securities category
issued or - Foreign limit:
guaranteed by 5%, considering
the Local all pension
Central Bank = funds (fund 1 +
30% fund 2 + fund 3)
considering all - Foreign limit:
pension funds 35% of the fund
managed by a assets,
single AFP considering all
(fund 0 + fund 1 pension funds
+ fund 2 + fund (fund 1 + fund 2
3); + fund 3)
- Limit for
Securities
issued or
guaranteed by
the Local
Government
and Local
Central Bank
=40%
considering all
pension funds
managed by a
single AFP
(fund 0 + fund 1
+ fund 2 + fund
229
Bills and
bonds issued
by public
sector Funds funds
administration
3).
Foreign limits:
- 4% of debt
securities
issued by a
Government,
Central Bank, or
international
agency if their
long term bonds
are rated “AAA”,
considering all
pension funds
(fund 1 + fund 2
+ fund 3).
- 3% of debt
securities
issued by an
issuer not
considered in
the previous
bullet or by a
financial and
non-financial
issuer,
considering all
pension funds
(fund 1 + fund 2
+ fund 3).
- Foreign
issuance limit:
35%,
considering all
pension funds
(fund 1 + fund 2
+ fund 3).
Peru - All AFPs, Mixed Fund (Fund 2) Direct: 0% Limit for No specific limit 3% for each 15% Mezzanine
Real State Securities fund Funds: same
Funds: same issued or Other / limits
limits guaranteed by Other / Comments: considered in
230
Bills and
bonds issued
by public
sector Funds funds
administration
considered in the Local Comments: - 50% of the fund the “Private
the “Private Government = 5% of the fund assets, Investments”
Investments” 30% assets, considering all column
column. considering all considering all pension funds
pension funds pension funds (fund 2 + fund
managed by a (fund 1 + fund 2 3)
3); applicable to
Securities category
3); + fund 3)
- Limit for
Securities
issued or
guaranteed by
the Local
Government
and Local
Central Bank
=40%
considering all
pension funds
managed by a
single AFP
(fund 0 + fund 1
+ fund 2 + fund
3).
Foreign limits:
231
Bills and
bonds issued
by public
sector Funds funds
administration
- 4% of debt
securities
issued by a
Government,
Central Bank, or
international
agency if their
long term bonds
considering all
pension funds
(fund 1 + fund 2
+ fund 3).
- 3% of debt
securities
issued by an
issuer not
considered in
the previous
bullet or by a
financial and
non-financial
issuer,
considering all
pension funds
(fund 1 + fund 2
+ fund 3).
- Foreign
issuance limit:
35%,
considering all
pension funds
(fund 1 + fund 2
+ fund 3).
Peru - All AFPs, Growth Fund (Fund 3) Direct: 0% Limit for 3% for each 20% Mezzanine
Real State Securities fund Funds: same
Funds: same issued or Other / limits
limits guaranteed by Other / Comments: considered in
considered in the Local Comments: - 50% of the fund the “Private
the “Private Government = 5% of the fund assets, Investments”
232
Bills and
bonds issued
by public
sector Funds funds
administration
Investments” 30% assets, considering all column
column. considering all considering all pension funds
pension funds pension funds (fund 2 + fund
managed by a (fund 1 + fund 2 3)
3); applicable to
Securities category
3); + fund 3)
- Limit for
Securities
issued or
guaranteed by
the Local
Government
and Local
Central Bank
=40%
considering all
pension funds
managed by a
single AFP
(fund 0 + fund 1
+ fund 2 + fund
3).
Foreign limits:
- 4% of debt
securities
233
Bills and
bonds issued
by public
sector Funds funds
administration
issued by a
Government,
Central Bank, or
international
agency if their
long term bonds
considering all
pension funds
(fund 1 + fund 2
+ fund 3).
- 3% of debt
securities
issued by an
issuer not
considered in
the previous
bullet or by a
financial and
non-financial
issuer,
considering all
pension funds
(fund 1 + fund 2
+ fund 3).
- Foreign
issuance limit:
35%,
considering all
pension funds
(fund 1 + fund 2
+ fund 3).
Romania - Private pension fund - second 5% 0% No additional 5% 5% 0% 0% 5% -
pillar limit
Comments: - Comments: Not Comments: - Comments: - Comments: Not Comments: Not Comments: -
Limit for allowed Limit for Limit for allowed allowed Limit for
investments in investments in investments in investments in
assets of a assets of a assets of a assets of a
single issuer = single issuer = single issuer = single
234
Bills and
bonds issued
by public
sector Funds funds
administration
5%; 5%; 5%; issuer/bank =
- Limit for - Limit for - Limit for 5%;
investments in investments in investments in - Limit for
assets issued assets issued assets issued investments in
by a group of by a group of by a group of assets issued
issuers = 10%; issuers = 10%; issuers = 10%; by a group of
issuers = 10%;
Romania - Private pension fund - third pillar 5% 0% No additional 5% 5% 5% 0% 5% -
limit
Comments: - Comments: Not Comments: - Comments: - Comments: - Comments: Not Comments: -
Limit for allowed Limit for Limit for Limit for allowed Limit for
investments in investments in investments in investments in investments in
assets of a assets of a assets of a assets of a assets of a
single issuer = single issuer = single issuer = single issuer = single issuer =
5%; 5%; 5%; 5%; 5%;
- Limit for - Limit for - Limit for - Limit for - Limit for
investments in investments in investments in investments in investments in
assets issued assets issued assets issued assets issued assets issued
by a group of by a group of by a group of by a group of by a group of
issuers = 10%; issuers = 10%; issuers = 10%; issuers = 10%; issuers = 10%;
Russian - Mandatory funded pillar, default 0% 0% 100% 100% 0% 0% 0% 25% Bonds of one issuer or a
Federation option group of related issuers
Other / (private and public
Comments: administration) which are
not guaranteed by
Russian government and
Bonds (of have long-term credit
Russian issuer) rating of national rating
of one issue agency: Must not exceed
which are 10% of total portfolio
guaranteed by
Russian Bonds of one issuer
government: No which are not guaranteed
limit (as a share by Russian government
of total portfolio and denominated in
and of total roubles or foreign
outstanding currency: Must not
bonds of that exceed 40% of total
issuer). outstanding bonds of that
235
Bills and
bonds issued
by public
sector Funds funds
administration
issuer
Mortgage bonds
acquired after 25% of total portfolio limit
January 1 2015: refers to deposits placed
Max 70% of one with lending institution
issue and securities issued by
this institution.
Value of the issue of

mortgage bonds must not
exceed 90% of the
general notional value of
the issues with the same
mortgage pool.
Russian - Mandatory funded pillar, 0% 0% 100% 15% 0% 0% 0% 0% 80% in cash in national
Federation conservative option (introduced in and foreign currency in
2009) Other / Other / credit institutions in
Comments: Comments: roubles and in foreign
currency in credit
Russian Max 15% of institutions – USD, euro,
government total portfolio in stg., Yen
bonds bonds of one
denominated in issuer or a
roubles: No limit group of related
issuers
guaranteed by
Russian
government
Russian Mandatory funded pillar, life 0% 0% 100% 100% 0% 0% 0% 25% Bonds of one issuer or a
Federation annuities portfolio group of related issuers
Other / (regional government
Comments: bonds, Securities of
Mortgage bonds organisation and private
acquired max bonds, which are not
70% of one guaranteed by Russian
issue government: Must not
exceed 10% of total
236
Bills and
bonds issued
by public
sector Funds funds
administration
portfolio
Bonds of one issuer or a

group of related issuers
(private bonds), which are
guaranteed by Russian
government: Must not
exceed 15% of total
portfolio
Bonds of one issuer

(regional government
bonds, Securities of
organisation and private
bonds), which are not
exceed 20% of total
outstanding bonds of that
issuer
Deposits in credit
institution and securities
issued by this credit
institution must not
exceed in sum 25% of
total portfolio
Russian Mandatory funded pillar, term 0% 0% 100% 100% 0% 0% 0% 25% Bonds of one issuer or a
Federation annuities portfolio group of related issuers
Other / (regional government
Comments: bonds, Securities of
Mortgage bonds organisation and private
acquired max bonds, which are not
70% of one guaranteed by Russian
issue government: Must not
exceed 10% of total
portfolio
237
Bills and
bonds issued
by public
sector Funds funds
administration
Bonds of one issuer or a
group of related issuers
(private bonds), which are
exceed 15% of total
portfolio
Bonds of one issuer

(regional government
bonds, Securities of
organisation and private
bonds), which are not
exceed 20% of total
issuer
Deposits in credit
institution and securities
issued by this credit
institution must not
exceed in sum 25% of
total portfolio
Russian Mandatory funded pillar 10% 0% 35% 0% 0% 0% 25% Max 50% in securities of
Federation one issuer in the
Investment portfolios chosen by Other / aggregate investment
participants Comments: - portfolio (of the total
volume of securities in
Max 10% of circulation of one issuer).
issuer’s
capitalisation in Max 10% of total portfolio
stocks of one in securities of one issuer
issuer. or a group of connected
issuers
25% of total portfolio for

deposits placed with
238
Bills and
bonds issued
by public
sector Funds funds
administration
credit institution and
securities issued by this
institution.
Russian - Mandatory funded pillar, Non- 10% until June 0% 100% Aggregate 0% 0% 0% 25% Aggregate value of
Federation state pension funds 30, 2019; 9% proportion of securities of one legal
from July 1, securities of one entity or a group of
2019; 8% from issuer or a Other / related entities, securities
January 1, group of Comments: which are guaranteed by
2020, 7% from affiliated this legal entity, cash in
July 1, 2020, issuers, Aggregate roubles and in foreign
6% from excluding amount of bank currency on accounts and
January 1, securities of the deposits in one deposits in such legal
2021, 5% from Russian credit entity and value of claims
July 1, 2021. Federation, organisation to such legal entity for the
securities and securities second part of a
Other / guaranteed by issued by this repurchase (REPO)
Comments: the Russian credit agreement, shall not
Federation and organisation exceed 15% of total
Aggregate eligible shall not exceed investment portfolio until
proportion of mortgage 25% of total June 30, 2019; 14% from
securities of one securities shall investments of a July 1, 2019; 13% from
issuer or a not exceed 10% fund. January 1, 2020, 12%
group of of investment from July 1, 2020, 11%
affiliated portfolio. from January 1, 2021,
issuers, 10% from July 1, 2021.
excluding Aggregate value
securities of the of bonds of one
Russian issuer in total
Federation, investment
securities portfolio of a
guaranteed by fund shall not
the Russian exceed 40% of
Federation and outstanding
eligible amount of
mortgage bonds of the
securities shall issuer,
not exceed 10% excluding
of investment securities
portfolio. guaranteed by
the Russian
239
Bills and
bonds issued
by public
sector Funds funds
administration
The aggregate Federation and
of securities of eligible
one issuer in mortgage
total investment securities.
portfolio of a
fund shall not
exceed 50% of
outstanding
amount of
securities of the
issuer, excluded
securities
guaranteed by
the Russian
Federation and
eligible
mortgage
securities.
Aggregate value
of shares of one
issuer in total
investment
portfolio of a
fund shall not
exceed 10% of
the issuer’s
capitalisation.
Russian - Voluntary pension plan 15% None 35% 15% 25% 25% 0% 25% Proportion of securities of
Federation one issuer, excluding
There are no Other / Other / Other / Other / government securities of
limits related to Comments: Comments: Comments: Comments: the Russian Federation,
one issuer/issue regional government
Proportion of Proportion of Proportion of The proportion securities and shares of
government shares of joint- shares of joint- of deposits equity investment funds,
securities of the stock stock placed in one shall not exceed
Russian investment investment bank 15% of pension reserves.
Federation of funds and units funds and units (depository Proportion of securities of
one issue or of mutual of mutual certificated an issuer being a fund’s
regional investment investment issued by one investor shall not exceed
240
Bills and
bonds issued
by public
sector Funds funds
administration
government funds which are funds which are bank) shall not 5% of pension reserves,
securities of one managed by managed by exceed 25% of except for the cases
issue shall not one asset one asset pension when these securities are
exceed 35% of management management reserves. included in the quote list
pension company may company may with the highest
reserves. not exceed 25% not exceed 25% requirements
of pension of pension
reserves. This reserves. This Proportion of mortgage
limit is for both limit is for both participation certificates
Retail Retail managed by one trustee
Investment Investment shall not exceed 10% of
Funds and Funds and pension reserves.
Private Private
Investment Investment Proportion of securities of
Funds together, Funds together, an issuer being the fund’s
i.e. in a pension i.e. in a pension investor shall not exceed
fund there could fund there could 5% of pension reserves,
be 5% of units be 5% of units except for the cases
of Private of Private when these securities are
Investment Investment included in the quotation
Fund and 20% Fund and 20% list of the highest
of Retail of Retail requirements.
Investment Investment
Fund (or funds) Fund (or funds)
which are which are
managed by the managed by the
same asset same asset
management management
company. company.
Serbia Voluntary pension funds 10% 5% 100% 10% 2% for 0% 0% 5%
investment units
Other / Other / of open Other /
Comments: No Comments: Up investment Comments: Up
more than 15% to 5% of funds. to 5% may be
of ownership voluntary invested in
stake, or voting pension fund Other / money deposits
shares of a assets shall be Comments: Up with one bank
single issuer, invested in to 2% may be or several
may be securities invested in related banks.
acquired issued by the investment units
241
Bills and
bonds issued
by public
sector Funds funds
administration
through organiser of the of one or
investment of pension scheme several open-
voluntary which joined the end investment
pension fund fund. funds, which are
assets. managed by the
Up to 5% of same
voluntary management
pension fund company.
assets shall be
invested in
securities
issued by the
organiser of the
pension scheme
which joined the
fund.
Seychelles - Seychelles Pension Fund
South Africa - Pension fund established for 15% 15% 5% 5% 25% -
public servants, for parastatal
institutions established by special Other / Other / Other / Other /
laws Comments: Comments: Comments: Comments: 5%
- Occupational Pension fun- Maximum of Maximum of maximum limit investment into
Umbrella funds/Multi-employer 15% per issuer 15% per issuer of 5% per fund a participating
funds with a market with a market of hedge funds employer of the
- Retirement Annuity Funds capitalisation capitalisation of Maximum of fund. Can apply
- Preservation funds R20 billion or R10 billion or 2.5% per hedge for up to 10%
more. more fund with the prior
Maximum of 10% per issuer Private Equity approval of the
10% per issuer with a market Funds or funds Registrar and
with a market capitalisation of of private equity members of the
capitalisation R3 billion - R10 funds a fund.
between R2 billion maximum limit
billion and R20 5% per issuer of 10%
billion. with a market maximum limit
Maximum of 5% capitalisation of 5% per fund
per issuer with a less than R3 of hedge funds
market billion Maximum of
capitalisation Immovable 2.5% per hedge
less than R2 property, fund
billion. preference and
242
Bills and
bonds issued
by public
sector Funds funds
administration
2.5% in unlisted ordinary shares
shares, - not listed – 5%
preference and
ordinary shares
in companies
excluding
shares in
properties not
listed on an
exchange
Suriname Voluntary occupational pension
funds
Tanzania All mandatory and supplementary Not stipulated Not stipulated Not stipulated Not stipulated Not stipulated Not stipulated Not stipulated Not stipulated The social security
social security schemes and Fund schemes investments
Managers operating in Tanzania guidelines 2015 do not
Mainland state the limits for single
issuer/issue per each
category.
Thailand - Provident fund 15% or 5% 0% 100% 20% or 15% 100% for units 20% or 5% From 1 July 2018
of CIS onward, issuer limit for
Other / Other / Other / Other / Other / listed companies will be
Comments: Comments: not Comments: Comments: Other / Comments: changed to ≤10% or
- For listed allowed to - for Thai (1) issuer limit Comments: (1) issuer limit Benchmark +5%.
companies: invest directly in government ≤20% or (1) For listed ≤20% for bank
issuer limit ≤15% real estate but bonds: no Benchmark infrastructure deposits; or From 1 July 2018
or Benchmark can invest issuer limit; +5% if the fund or listed deposit-like onward, issuer limit for all
+5%; indirectly - for foreign following property fund product where bonds issued by the
- For unlisted through real government characteristics that is listed (or its issuer private sector will be
companies: estate funds, bonds, issuer (a-e) of the in listing receives changed to ≤10% or
issuer limit ≤5% REITs, limits are as bonds are met: process) and investment Benchmark +5%
Infrastructure follows: a) bonds, hybrid non-diversified grade rating.
funds. (i) no issuer securities, SN fund as
limit if foreign or sukuk issued specified in the (2) issuer limit
government by private SEC ≤5% for bank
bonds are rated entities regulations: deposits; or
the first 2 established issuer limit: deposit-like
highest credit under the Thai ≤15% or product where
rating; law or branch of Benchmark its issuer
(ii) issuer limit foreign bank +5% receives non-
≤35% if foreign that is permitted investment
243
Bills and
bonds issued
by public
sector Funds funds
administration
government to operate (2) For unlisted grade rating.
bonds are rated banking infrastructure
investment business in fund or unlisted
grade (except Thailand; property fund:
the first 2 b) bonds with issuer limit: ≤5%
highest credit either of the or Benchmark
rating); following +5%
(iii) issuer limit criteria:
≤5% if foreign (i) issuer is a
government listed company;
bonds are rated (ii) issuer
non-investment discloses
grade. information as
stated in filling;
or
(iii) in case of
bonds, apart
from (i) and (ii)
with debt
repayment due
date ≤ 397 days
(since the date
of investment),
the obligator
must be
financial
institutions as
specified in the
SEC regulations.
c) being offered
in Thailand;
d) investment
grade rating;
and
e) bonds with
debt repayment
due date > 397
days (since the
date of
244
Bills and
bonds issued
by public
sector Funds funds
administration
investment)
must be
registered in
regulated
market.
(2) issuer limit

≤15% or
Benchmark
+5% if the
following
characteristics
(a-d) of the
bonds are met:
a) bonds, hybrid
securities, SN
or sukuk issued
by private entities
established
under the Thai
law but offer for
sale in other
countries or
foreign entities
(excluding
branch of
foreign bank
that is permitted
to operate
banking
business in
Thailand),
including Basel
III;
b) investment
grade rating;
c) bonds with
either of the
following
245
Bills and
bonds issued
by public
sector Funds funds
administration
criteria:
(i) issuer is
listed on
Exchange in
Thailand or
other countries;
(ii) issuer
discloses
information as
stated in filling;
or
(iii) in case of
bonds, apart
from (i) and (ii)
with debt
repayment due
date ≤ 397 days
(since the date
of investment),
the obligator
must be
international
financial
institutions as
specified in the
SEC regulations;
d) bonds with
debt repayment
due date > 397
days (since the
date of
investment)
must be
registered in
regulated
market.
Trinidad and All Occupational Pension Plans 30% 10% 100% 100% 0% 0% 0% 100%
Tobago
Other / Other /
Comments: Max Comments: Max
246
Bills and
bonds issued
by public
sector Funds funds
administration
of 30% of the of 10% of total
ordinary shares assets in any
of any single mortgage
corporation Max of 80% of
the value of a
property can be
loaned as a
mortgage
Uganda
Ukraine 10% -
Other /
Comments:
Maxn 10% in
each bank
Uruguay Mandatory personal pension funds: 3% 0% No limit in case 3% 3% 0% 3% Overall limit of
defined contribution of Uruguayan 10% on each
Fund A – Workers under 55 years bonds and bills For loans bank
old guaranteed by
5% in case of the same bank Limit of 10% of
foreign bank regulatory
sovereign capital that
bonds and could be loosen
multilateral up to 50% in
international case the bank is
credit rated AA- or
organisations above.
that could be
loosen to 10%
in case the
overall credit
rating of the
issuer is AA- or
better
Uruguay Mandatory personal pension funds: 0% 0% No limit in case 0% 0% 0% 3% Overall limit of
defined contribution of Uruguayan 10% on each
Fund B – Workers over 55 years bonds and bills For loans bank
old guaranteed by
5% in case of the same bank Limit of 10% of
foreign bank regulatory
247
Bills and
bonds issued
by public
sector Funds funds
administration
sovereign capital that
bonds and could be loosen
multilateral up to 50% in
international case the bank is
credit rated AA- or
organisations above.
that could be
loosen to 10%
in case the
overall credit
rating of the
issuer is AA- or
better
Zambia 15% 7.5% 20% -

Comments: Not Comments: Not Comments: An
more than 15% more than 7.5% investment of
of the fund size of the fund size not more than
where it is in corporate 20% of the fund
invested in the bonds of the size in cash and
equities of the same company. bank balances
same company. with any bank or
financial
institution.
248
Table 3.b: Other Quantitative Investment Regulations on Pension Fund Assets
Other quantitative rules

Self-investment / Conflicts Limit on foreign Ownership
Country Funds / Plans Additional limits / Other comments
of interest currency Limit on derivatives concentration limits
comments
exposure
Australia - Occupational trustee managed 5% 100% 100% Risks, including those 100% Australia does not prescribe
superannuation fund: corporate; arising from foreign specific portfolio limits. However,
- Occupational trustee managed Other / Comments: Loans or currency exposures and trustees must consider
superannuation fund: industry financial assistance to use of derivatives must diversification in making asset
- Trustee managed public offer member and their relatives are be managed consistent allocations. MySuper products
superannuation fund: retail not permitted. In addition, with the investment must have a single diversified or
funds superannuation funds are also strategy and supported lifecycle investment strategy.
- Trustee managed not permitted to invest more by adequate risk
superannuation fund: small than five per cent of their management
APRA funds assets in in-house assets. arrangements in place.
- Trustee managed That is, funds are not
superannuation fund: self- permitted to make investments
managed superannuation fund in, or loans to, an employer-
(SMSFs) sponsor, a member or their
- Public sector occupational associates, subject to some
pension plans, often compulsory exceptions.
for public sector employees
- Trustee managed
superannuation fund: approved
deposit fund
Austria - occupational pension funds 5% 30% The use of derivative - There is a limit of 30% In line with Art. 18 n° 1 lit f - The Pensionskassen may
(Pensionskassen) instruments is only of investments in assets of the IORP I directive operate several investment and
Other / Comments: Limit of possible insofar as which are denominated 2003/41/EC the risk sharing groups ("support
5% re-investment in they contribute to a in another currency than concentration risk limit funds"), provided that they are
employers paying reduction of risks or that of the liabilities; if the applies to self-investment operated for at least 1,000
contributions (self-investment) facilitate efficient exchange risk is in the sponsor (5%); in beneficiaries each.
portfolio eliminated by hedging addition there is a single
management. transactions, these issuer limit (5%, 10%
investments may be group level; Art. 25 n°7
attributed to the euro- PKG).
denominated Regarding the percentage
investments. of shares issued by a
- Derivatives which were company held there is no
not purchased to hedge quantitative limit. However,
against exchange risks the general prudent person
may only be purchased if principle provisions apply
they contribute to the (e.g. sole interest of the
reduction of investment beneficiaries in case of
249
comments
exposure
risks or the facilitation of conflicts of interest;
an efficient administration security, quality, liquidity,
of the assets. Risk profitability of the assets
concentration in relation as a whole, …)
to one sole counterparty
or other investments in
derivative products shall
be avoided.
- Investments in debt
securities, shares and
securities equivalent to
shares which are not
admitted to trading on a
regulated market shall be
limited to a maximum of
30 per cent of the assets.
Belgium - IORP (institutions de retraite 5% 100% 100% None 100%. In principle, an The one and only quantitative
professionnelle) IORP can hold all the rule is the one imposed by the
Other / Comments: - Limit in a shares issued by a IORP Directive, i.e. 5/10% in
single sponsor = 5% company, but in that case, sponsor related investments.
- Limit in a group of the Supervisor will check if
undertakings the sponsor the IORP does not pursue
belongs to = 10% activities that go beyond
the social purpose of
providing retirement
benefits.
Canada - Occupational registered 0% No quantitative No quantitative limit. No more than 10% of Funds may own maximum
pension plans (RPPs): trusteed limit. Subject to Subject to prudent total market value of 30% of voting shares of
pension funds Other / Comments: A plan prudent investment rule. assets can be invested in one company. This limit
administrator is prohibited investment rule. or loaned to any one does not apply to a fund’s
from investing or lending plan person/entity, associated investments in
assets directly or indirectly in persons/entities, or corporations established to
the securities of a related affiliated corporations. acquire and hold real
party (including the employer). See exceptions noted in property, resource
There are several exceptions, Table 3(a). properties, or other
including: permitted investments
provided certain
a) where the securities are undertakings are given by
held in an investment fund or the corporation.
segregated fund in which
250
comments
exposure
investors other than the
administrator and its affiliates
may invest and that complies
with certain quantitative limits,
b) in an unallocated general
fund of a Canadian insurance
company;
c) securities issued or fully

guaranteed by the
provincial government or
agency thereof;
d) a fund composed of
mortgage-backed securities
that are fully guaranteed by
the Government of Canada,
the government of a province,
or an agency thereof;
e) a fund or derivative that

replicates the composition of a
widely recognized index of a
broad class of securities
traded at a market place
f) where the value of the

transaction is nominal or the
transaction is immaterial to the
plan.
Administrators that currently

hold securities of related
parties that are not permitted
under the amended
regulations will be given five
years (up to July 1, 2021) to
divest of these securities.
251
comments
exposure
Chile - All AFPs, Fund A 0% There is a limit 3% - Limit on risky assets Maximum of 3%*VF for * The sum of investments by all
for exposure in (not investment grade, shares on national firms funds from the same AFP, in
Other / Comments: AFPs are foreign currency illiquid and high-risk (including debt). Also, bonds and commercial papers
not allowed to invest in in debt instruments)= 20%; there is a limit of 7% of issued or granted by a single
securities issued or granted by instruments with - Max 1/3 of foreign shares issued by a company may not exceed 12%
the AFP or a related company. investment grade assets of each fund is company. of the company assets.
without coverage allowed to be lent in * Max 15% * VF (individual
= 50%. securities lending 9%*VF for national banks funds) in all shares, bonds and
The limit will be operations. for 2.5% of shares issued. commercial paper issued or
applied for each - Max 15% local assets guaranteed by companies
foreign currency of each fund is allowed to 1%*VF for foreign stocks. belonging to a single group.
to which the debt be lent in securities
instruments are lending operations.
exposed,
provided that
such exposure by
currency
represents a
value equal to or
greater than 1%
of the value of
the respective
pension fund.
Chile - All AFPs, Fund B 0% There is only limit 3% Maximum of 3%*VF for * The sum of investments by all
for exposure in - Limit on risky assets shares on national firms funds from the same AFP, in
Other / Comments: AFPs are foreign currency (not investment grade, (including debt). Also, bonds and commercial papers
not allowed to invest in in debt illiquid and high-risk there is a limit of 7% of issued or granted by a single
securities issued or granted by instruments with instruments)= 17%; shares issued by a company may not exceed 12%
the AFP or a related company. investment grade - Max 1/3 of foreign company. of the company assets.
without coverage assets of each fund is * Max 15% * VF (individual
= 50%. allowed to be lent in 9%*VF for national banks funds) in all shares, bonds and
The limit will be securities lending for 2.5% of shares issued. commercial paper issued or
applied for each operations. guaranteed by companies
foreign currency - Max 15% local assets 1%*VF for foreign shares. belonging to a single group.
to which the debt of each fund is allowed to
instruments are be lent in securities
exposed, lending operations.
provided that
such exposure by
currency
252
comments
exposure
represents a
value equal to or
greater than 1%
of the value of
the respective
pension fund.
Chile - All AFPs, Fund C 0% There is only limit 3% Maximum of 3%*VF for * The sum of investments by all
= 50%. allowed to be lent in 9%*VF for national banks funds) in all shares, bonds and
The limit will be securities lending for 2.5% of shares issued. commercial paper issued or
applied for each operations. guaranteed by companies
foreign currency - Max 15% local assets 1%*VF for foreign shares. belonging to a single group.
to which the debt of each fund is allowed to
provided that
such exposure by
currency
represents a
value equal to or
greater than 1%
of the value of
the respective
pension fund.
Chile - All AFPs, Fund D 0% There is only limit 3% Maximum of 3%*VF for * The sum of investments by all
= 50%. The limit allowed to be lent in 9%*VF for national banks funds) in all shares, bonds and
will be applied for securities lending for 2.5% of shares issued. commercial paper issued or
each foreign operations. guaranteed by companies
currency to which - Max 15% local assets 1%*VF for foreign shares. belonging to a single group.
253
comments
exposure
the debt of each fund is allowed to
provided that
such exposure by
currency
represents a
value equal to or
greater than 1%
of the value of
the respective
pension fund.
Chile - All AFPs, Fund E 0% There is only limit 3% Maximum of 3%*VF for * The sum of investments by all
= 50%. The limit allowed to be lent in 9%*VF for national banks funds) in all shares, bonds and
will be applied for securities lending for 2.5% of shares issued. commercial paper issued or
each foreign operations. guaranteed by companies
currency to which - Max 15% local assets 1%*VF for foreign shares. belonging to a single group.
the debt of each fund is allowed to
provided that
such exposure by
currency
represents a
value equal to or
greater than 1%
of the value of
the respective
pension fund.
Czech - Transformed pension schemes Investment in shares of other 50% 50% of total book value 20% (excluding bonds -
Republic (3rd pillar) pension funds is prohibited. of assets must be issued by governments
Immovable property yields invested in assets and central banks of
shall be given to the pension denominated in the OECD Member Countries
scheme. currency in which and bonds issued by
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comments
exposure
liabilities to participants international financial
are stated. institution where the Czech
Republic is a member)
Czech - Participation funds: General rules preventing - - Other investment -
Republic conservative schemes (3rd conflict of interest instruments 10%
pillar) 20% if guaranteed by a
public body
Aggregate ownership
concentration limit 35%
excluding defined public
bodies
Czech - Participation funds: other Investment in tradeable - Open position of Implementing legislation Other investment -
Republic schemes (3rd pillar) securities issued by the financial derivatives specifies the relevant instruments 10%
pension management must not exceed limits according to types, 20% if guaranteed by a
company that manages the 80% of the value the manner of use, public body
pension fund, or by the subject fund own capital. quality criteria and tools. Aggregate ownership
falling under the same concentration limit 35%
financial group as the pension If the counterparty is excluding defined public
company is prohibited. the regulated bank, bodies
the risk must not
exceed 10% of the
value of the
participation fund’s
assets.
If the counterparty is
another body, the
risk must not exceed
5% of the value of
the participation
fund’s assets.
Denmark - Company pension funds Company pension funds 20% No quantitative limit Minimum 80% currency - Ownership is limited to carry out
cannot invest more than 5% of matching requirement. activities ancillary to the
assets in the sponsor (or 10% Euro can match up to activities licensed.
in a group of companies to 50% of other EU It is allowed, through
which the sponsor belongs). currencies (e.g. DKK) subsidiaries, to carry out other
than Euro. financial activities.
It is allowed temporarily to carry
out other activities to secure or
phase out exposures already
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comments
exposure
entered into, or with regard to
restructuring enterprises.
It is allowed to carry out the
following activities:
1. Agency activities for
insurance companies and other
companies under the
supervision of the Danish FSA.
2. Establishment, ownership and
operation of real property as
placing of funds.
Estonia - Mandatory funded pension 50% 50% 10% - Limit on precious 10% Ownership concentration limit:
metals: 5%; - Limit of non-voting shares of
Other / Comments: - A - Limit for overall net any single body a management
management company may open foreign exchange company can acquire = 10%;
not acquire or hold in any position = 50%; - Limit of the debt securities of
person more than 50% of the - Limit for overall net any single body a management
securities and money market open foreign exchange company can acquire = 10%;
instruments issued by the position of conservative - Limit of the money market
management company. pension funds=25%; instruments of any single body a
- A management company In the calculation of net management company can
may not acquire or hold for the open foreign exchange acquire = 10%;
account of all the mandatory positions, foreign - Limit of the units of another
pension funds managed by it exchange positions investment fund specified in §
in total more than 20% of the arising from investments 264 of this Act a management
units or shares of any fund made by this fund shall company can acquire = 25%
managed by it or a fund not be taken into
managed by another consideration in the case
management company of investments made in
belonging to the same shares or units of another
consolidation group as the fund.
management company. - Assets of a
- Shares and units of other conservative pension
funds managed by a fund may only be
management company or invested in bonds, which
funds managed by a have been issued at least
management company an investment grade
belonging to the same credit rating by a rating
consolidation group as the agency or which issuer
management company of a has been issued at least
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comments
exposure
mandatory pension fund, an investment grade
which are not open-ended or credit rating by a rating
public, may not be acquired or agency, if the bonds
held for the account of the themselves have no
mandatory pension fund. credit rating;
- On behalf of a management - The assets of a
company qualifying holding conservative pension
may not, directly or indirectly, fund may be invested up
be acquired or held through to a total of 10% of the
any shares carrying voting market value of the
rights. assets of the fund in such
securities with no credit
rating,
- Conservative funds: At
least 50% of the
investments made in
bonds must have credit
rating higher than A2
(Moody’s) or its
equivalent or P-1
(Moody’s).
- It is prohibited to issue
securities, short-selling,
give loan.
Estonia - Voluntary funded pension 50% 100% 10% - It is prohibited to issue 10% Ownership concentration limit:
securities, short-selling, - Limit of non-voting shares of
Other / Comments: - A give loan. any single body a management
management company may company can acquire = 10%;
not acquire or hold in any - Limit of the debt securities of
person more than 50% of the any single body a management
securities and money market company can acquire = 10%;
instruments issued by the - Limit of the money market
management company. instruments of any single body a
- On behalf of a management management company can
company qualifying holding acquire = 10%;
may not, directly or indirectly, - Limit of the units of another
be acquired or held through investment fund specified in §
any shares carrying voting 264 of this Act a management
rights. company can acquire = 25%
Finland - Voluntary plans: company 5% 30% 100% - 20% Limit of shares (votes) in one
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comments
exposure
pension funds and industry-wide company = 20%
pension funds Other / Comments: Limit for
the assets invested in the
sponsoring employer = 5%
Finland - earnings-related statutory - 50%
pension provisions for private
sector workers, seamen and
self-employed persons
France - Group insurance contracts for Not applicable when managed Not applicable Under Solvency II : if Not applicable
workers, PERE, Madelin under Solvency II though part they are used to
schemes of Solvency II governance reduce risk exposure
- PERP rules (Recital 89 of the
Solvency II
Directive)
Germany - Pensionskassen 5% 30% Pre-emptive - No ownership -
purchases (including concentration limits.
Other / Comments: - prolongations)
Investment limit in the covering a period of Limit of 1% of the
sponsoring employer and the up to twelve months: restricted assets has to be
companies in the group in the 15%, complied with.
case of single employer plan = pre-emptive
5%; purchases
- Limit in the case of multi- exceeding 12
employer plan = 15% months: 5%. Total
pre-emptive
purchases: 15%.
Hedging operations:
100% of the portfolio
of assets as at the
latest balance-sheet
date as well as
provisions and
liabilities
denominated in
foreign currencies
which are not
covered by matching
capital investments.
Acquisition-
preparation
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comments
exposure
operations: 7.5%.
Short puts: 1.5%
Short puts based on
stocks: 0.5%.
Yield-enhancing
operations: 7.5%.
Germany - Pensionsfonds 5% 30% Pre-emptive - No ownership -
purchases (including concentration limits.
Other / Comments: - prolongations)
Investment limit in the covering a period of Limit of 1% of the
sponsoring employer in the up to twelve months: restricted assets has to be
case of single employer plan = 15%, complied with.
5%; pre-emptive
- Investment limit in the purchases
companies in the group in the exceeding 12
case of single employer plan months: 5%. Total
=10%; pre-emptive
- In the case of multi-employer purchases: 15%.
plan, investments in these Hedging operations:
companies must be done in a 100% of the portfolio
prudent way and adequately of assets as at the
diversified latest balance-sheet
date as well as
provisions and
liabilities
denominated in
foreign currencies
which are not
covered by matching
capital investments.
Acquisition-
preparation
operations: 7.5%.
Short puts: 1.5%
Short puts based on
stocks: 0.5%.
Yield-enhancing
operations: 7.5%.
Greece - Occupational insurance funds 5% 30% 5% Assets must be invested More than 40% of the
predominantly in assets cannot be
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comments
exposure
Other / Comments: - Limit in regulated markets. cumulatively combined in:
financial instruments issued by Limit of 5% applies to -transferable securities or
the sponsoring undertaking = investments not traded in money market instruments
5%; regulated markets. issued by a single body
- Limit in financial instruments -deposits made with that
issued by undertakings body
belonging to the same group -exposures arising from
as the sponsor = 10% derivative transactions
undertaken with that body
Hungary - Voluntary privately managed Funds may not have Conventional 5% Repo deals: 20% for 10% of all the shares of a -
pension funds ownership in business in portfolio: 5% securities issued by company
(magánnyugdíjpénztár) which the founders of the Balanced government only
fund, the employers of the portfolio: max. Swap deals: 10%
fund members, the donors or 20% Cash in hand: max. HUF
service providers of the fund Growth portfolio: 500,000
own more than 10% of the max. 35% Security loaning deals:
shares (exception ownership 30%
in service providers). Risk funds: 5%
Derivative funds: 5%
Securities lending: 30%
Hungary - Voluntary private pension Funds may not have - 5% Repo deals: 20% for 10% of all the shares of a -
funds (önkéntes nyugdíjpénztar) ownership in business in securities issued by company
which the founders of the government only
fund, the employers of the Swap deals: 10%
fund members, the donors or Cash in hand: max. HUF
service providers of the fund 500,000
own more than 10% of the Security loaning deals:
shares (exception ownership 30%
in service providers). Risk funds: 5%
Derivative funds: 5%
Securities lending: 30%
Iceland Occupational private and Loans to directors, members 50% of current Only derivative Borrowing not allowed. 20% Funds may not own more than
personal pension funds of the board or other staff of liabilities contracts which 20% of the shares of a single
the pension fund are not reduce the fund´s firm or shares of other collective
permitted except if they are exposure to risk. investment undertaking, except
members of the fund and in - May not exceed for companies that exclusively
such cases the loans must be 10% of total assets. handle services for the pension
in accordance with the rules - No more than 5% fund. A 20% limit for the
that apply to loans to fund issued by a single ownership of a share or a unit in
members in general. issuer. a single collective investment
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comments
exposure
undertaking (non-UCITS). No
more than 25% of shares in a
particular investment fund
(UCITS).
Ireland - Occupational pension plans No quantitative limit. No quantitative No quantitative limit. Schemes (apart from No quantitative limit Assets must be invested in a
limit. single member schemes) manner designed to ensure
Other / Comments: Any self- may not borrow except security, quality, liquidity and
investment will be excluded for for short term liquidity profitability of portfolio as a
purposes of proving solvency. purposes. whole.
Disclosure of any self- Assets must be invested
investment must be made. For predominantly in
schemes other than a one regulated markets (in this
member arrangement or a case “predominantly”
small member-controlled means at least 50% of
scheme, self-investment in the the assets).
employer shall not exceed 5% Investments which are
of the resources of the not in regulated markets
scheme and total self- should be kept to a
investment in the employer prudent level.
group shall not exceed 10%. Investment in derivative
For a small member-controlled instruments is limited to
scheme, self-investment in the using them to contribute
employer group shall not to risk reduction or to
exceed 20%. facilitate efficient portfolio
management.
Israel - old pension funds 0% 100% The value of the - The investment value of 20% A pension fund can hold a
- new pension funds collaterals given on options that were maximum up to 20% of the
- general pension funds Other / Comments: Pension account of acquired should not controlling interests in a
funds cannot invest in the derivatives should exceed 5% of pension company, as long it does not
entity managing the assets of not exceed 10% fund's assets. have a controlling interest.
the pension funds, in a - The value of the A pension fund can hold more
company having the majority collateral (due to options, than 20% of a foreign mutual
of the control (or at least 20% futures and short sales) fund as long as the investments
of the control) of the asset should not exceed 10% of the mutual fund are in
manager of pension funds' of pension fund's assets. tradable assets and the value of
assets, an entity or a the investment is no more than
subsidiary of this entity which 5% of the pension fund's assets
controls the pension fund or and no more than 5% of the
holds more than 20% of the ETF's or the mutual fund's
pension fund. assets.
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comments
exposure
Investments in a subsidiary A pension fund can hold
which is controlled by anyone between 20%-49% of a
who controls or manages the partnership as long as the
pension fund are prohibited, pension fund is a limited partner
except investment in tradable and not involved in the
assets of the subsidiary or in management of the partnership.
loans to the subsidiary, as
long as other pension funds or The funds must now report on
banks, that are not related to the inclusion of ESG policy in
the pension fund, are their investments.
participating in this loan.
A pension fund can purchase
securities via an underwriter
which is a related party up to
10% of the total securities
issued in each offering.
A pension fund can purchase/
sell securities via a broker
which is a related party up to
20% of the total securities
purchased or sold during the
calendar year.
Italy - Contractual pension funds - Limit for single-employer 30% Derivatives: financial Short selling is not Pension fund could not Commodity-linked securities:
(fondi pensione negoziali) funds investing in securities leverage < 1. allowed. Borrowing is not own more than 25 per cent max 5%.
- Open pension funds (fondi issued by the sponsoring allowed. of the private investment
pensione aperti) employer = 5%; funds' assets. Pension The limits reflect the new
- Pre-existing pension funds - Limit for single-employer fund’s investment must not investment regulation that has
(fondi pensione preesistenti) funds investing in securities constitute more than 5% of been issued in 2014, relaxing
issued by the group of the the nominal value of all some quantitative restrictions
sponsoring employer = 10%; voting shares of a listed and putting greater emphasis on
- Limit for multi-employer company and not more the adequacy of pension funds'
funds investing in securities than 10% of a non-listed organisational structure and risk
issued by the sponsoring company. monitoring systems with respect
employers = 20%; to their investment policy.
- Limit for industry-wide
pension funds investing in
securities issued by
companies in this sector =
30%;
Japan - The Employees' Pension Fund Investment on securities with None None None None
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comments
exposure
(EPF) (kosei nenkin kikin) the purpose of pursuing
- Defined benefit corporate interests of someone other
pension funds (kakutei kyufu than the pension fund or
kigyo nenkin) company is prohibited.
- Corporate defined contribution
funds(kakutei kyoshutsu
nenkin[kigyo-gata])
- Individual defined contribution
funds (kakutei kyoshutsu nenkin
[kojin-gata])
- National pension funds
(kokumin nenkin kikin)
- Mutual aid associations

(MAAs)
Korea - Personal pension insurance 3% The limit for the 100% -
aggregate of
Other / Comments: - Limit for consignment guarantee
the aggregate holdings of fund for the trading of
bonds and stocks issued by exchange traded
the majority shareholder and derivatives is 3%.
subsidiaries = 3%;
- Limit for the aggregate of
credit extensions to the
majority shareholders and the
subsidiaries = 2%;
- Limit for the credit to the
same subsidiaries = 10%.
Korea - Personal pension trust 3% The limit for the 100% -
aggregate of
Other / Comments: - Limit for consignment guarantee
the aggregate holdings of fund for the trading of
bonds and stocks issued by exchange traded
the majority shareholder and derivatives is 3%.
subsidiaries = 3%;
- Limit for the aggregate of
credit extensions to the
majority shareholders and the
subsidiaries = 2%;
- Limit for the credit to the
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comments
exposure
same subsidiaries = 10%.
Korea - Defined benefit (DB) 5% No quantitative The use of derivative None 10% -
Retirement pension plans limit instruments is only
- Defined benefit (DB) Other / Comments: This limit possible insofar as
Retirement insurance / refers to investment in they contribute to a
Retirement trust securities issued by an reduction of risks.
enterprise having affiliation
relationships with an employer
or by a person who is
associated with an employer
pursuant to the equity method.
Korea - Defined contribution (DC) 10% No quantitative The use of derivative None 10% -
Retirement pension plans limit instruments is only
- Defined contribution (DC) Other / Comments: This limit possible insofar as
Retirement insurance / refers to investment in they contribute to a
Retirement trust securities issued by an reduction of risks.
enterprise having affiliation
relationships with an employer
or by a person who is
associated with an employer
pursuant to the equity method.
Latvia State funded pensions - Limit for investments in Limit for net Derivative Repo transactions up to - Limit for ownership in
(mandatory) securities issued by the foreign exchange transactions for 50% for the liquidity equity capital and number
companies belonging to the position in single hedging purposes purposes only (up to 3 of all voting shares of a
same group as the manager of currency = 10%; only. months). single company = 5%;
the funded pension scheme in total = 20%. - Limit for investment in
(in regulated markets traded debt securities of one
only) =5%; issuer =10%;
- Limit for total investments in - Limit for investments in a
investment funds and single UCITS or non-
Alternative Investment Funds UCITS =30% of its net
(AIFs) managed by a asset value.
company belonging to the
same group as the manager of
the funded pension scheme =
15%;
- Limit for total investments in
investment funds and AIFs
managed by the manager of
the funded pension scheme =
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comments
exposure
10%
Private pension funds - Limit for investments in Limit for net Limit for risk Repo transactions up to - Limit for ownership in
(voluntary) securities issued by the foreign exchange exposure by a single 50% for the liquidity equity capital and number
companies belonging to the position in single counterparty = 5% purposes only (up to 3 of all voting shares of a
same group as the manager of currency= 10%; months) single company = 10%;
pension funds (in regulated in total= 20%. - Limit for investment in
markets traded only) = 5%; debt securities of one
- Limit for investments in issuer =100%;
financial instruments issued by - Limit for investments in a
the companies that have a single UCITS or non-
collective agreement with the UCITS =10% of its net
pension fund =5%; asset value.
- Limit for assets invested in
companies belonging to the
same group as the sponsoring
employer (in regulated
markets traded securities only)
=10%
Lithuania Social insurance contributions in 0% 100% 0% Pension assets may be 10% Shares of any one issuing body
pension funds - conservative invested into derivative held by a management company
funds investment instruments together with the shares of that
solely for the purpose of issuer held by the pension funds
risk management. A managed by that company may
management company not carry more than 1/10 of the
shall have the right to total voting rights at the issuer‘s
use derivative investment general shareholders meeting.
instruments only where A pension fund may, with its
the pension fund rules own funds, acquire more than:
specify what derivative 1) 10 percent of the total non-
investment instruments voting shares of a single issuing
the management body;
company intends to use 2) 10 percent of the total debt
and for what purposes. securities of a single issuing
Each derivative body;
investment instrument 3) 10 percent of the money
must be based on a market instruments issued by a
concrete investment single issuing body.
transaction/investment The limits laid down in
position. Such a subparagraphs 2 and 3 may be
transaction and a disregarded at the moment of
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comments
exposure
derivative investment acquisition if, at that moment,
instrument used for the the gross amount of the
management of the risk securities or money market
thereof must be indicated instruments is not known.
in periodical reports of 4. The limits laid down in
the management subparagraphs 2 and 3 of this
company. Article shall not apply to
securities or money market
instruments issued or
guaranteed by the state or local
authorities.
Lithuania Social insurance contributions in Not applicable, since the 100% 0% Pension assets may be 10% Shares of any one issuing body
pension funds - other funds contributions are part of social invested into derivative held by a management company
security contributions in investment instruments together with the shares of that
State’s social insurance solely for the purpose of issuer held by the pension funds
system. General rules apply, risk management. A managed by that company may
that 1) investments into the management company not carry more than 1/10 of the
transferable securities or shall have the right to total voting rights at the issuer‘s
money-market instruments of use derivative investment general shareholders meeting.
the single issuer may be instruments only where A pension fund may, with its
invested more than 5 per cent the pension fund rules own funds, acquire more than:
but no more than 10 per cent specify what derivative 1) 10 percent of the total non-
of the net assets, provided investment instruments voting shares of a single issuing
that the total sum of such the management body;
investments will not be larger company intends to use 2) 10 percent of the total debt
than 40 per cent of the net and for what purposes. securities of a single issuing
assets (this restriction is not Each derivative body;
applicable to the deposits), 2) investment instrument 3) 10 percent of the money
the total investment sum into must be based on a market instruments issued by a
the transferable securities concrete investment single issuing body.
issued by a single person, transaction/investment The limits laid down in
money-market instruments or position. Such a subparagraphs 2 and 3 may be
deposits cannot be larger than transaction and a disregarded at the moment of
20 per cent of the net assets derivative investment acquisition if, at that moment,
that comprise the pension instrument used for the the gross amount of the
assets, 3) the total management of the risk securities or money market
investments into the financial thereof must be indicated instruments is not known.
instruments and deposits of in periodical reports of 4. The limits laid down in
the undertakings that belong the management subparagraphs 2 and 3 of this
to the group, which has to company. Article shall not apply to
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comments
exposure
form the consolidated financial securities or money market
reports, cannot exceed 20 per instruments issued or
cent of the net assets of the guaranteed by the state or local
pension fund. authorities.
Lithuania Supplementary accumulation for General rules apply, that 1) 100% 0% Pension assets may be 10% Shares of any one issuing body
pension in pension funds investments into the invested into derivative held by a management company
transferable securities or investment instruments together with the shares of that
money-market instruments of solely for the purpose of issuer held by the pension funds
the single issuer may be risk management. A managed by that company may
invested more than 5 per cent management company not carry more than 1/10 of the
but no more than 10 per cent shall have the right to total voting rights at the issuer‘s
of the net assets, provided use derivative investment general shareholders meeting.
that the total sum of such instruments only where A pension fund may, with its
investments will not be larger the pension fund rules own funds, acquire more than:
than 40 per cent of the net specify what derivative 1) 10 percent of the total non-
assets (this restriction is not investment instruments voting shares of a single issuing
applicable to the deposits), 2) the management body;
the total investment sum into company intends to use 2) 10 percent of the total debt
the transferable securities and for what purposes. securities of a single issuing
issued by a single person, Each derivative body;
money-market instruments or investment instrument 3) 10 percent of the money
deposits cannot be larger than must be based on a market instruments issued by a
20 per cent of the net assets concrete investment single issuing body.
that comprise the pension transaction/investment The limits laid down in
assets, 3) the total position. Such a subparagraphs 2 and 3 may be
investments into the financial transaction and a disregarded at the moment of
instruments and deposits of derivative investment acquisition if, at that moment,
the undertakings that belong instrument used for the the gross amount of the
to the group, which has to management of the risk securities or money market
form the consolidated financial thereof must be indicated instruments is not known.
reports, cannot exceed 20 per in periodical reports of 4. The limits laid down in
cent of the net assets of the the management subparagraphs 2 and 3 of this
pension fund. company. Article shall not apply to
securities or money market
instruments issued or
guaranteed by the state or local
authorities.
Luxembourg - Pension savings companies 5% 100% 100% - No limit for investments 100%. No limits in this -
with variable capital (SEPCAVs) in derivative insofar as respect.
- Pension savings associations Other / Comments: - Limit for they contribute to a
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comments
exposure
(ASSEPs) assets in the sponsoring reduction of investment
employer = 5%; risks or facilitate efficient
- Limit for assets invested in portfolio management.
companies belonging to the - 0% otherwise.
same group as the sponsoring
employer = 10%
Luxembourg Defined benefit CAA supervised 5% Limit of non The use of derivative Proper diversification of Proper diversification of No qualified participations
pension funds congruent instruments is only the assets is required but the assets is required but allowed
Other / Comments: - Limit for investments = possible insofar as no quantitative limit no quantitative limit exists.
assets in the sponsoring 30% in one they contribute to a exists. BUT: No qualified
employer = 5%; defined currency reduction of risks or participation is allowed
- Limit for assets invested in facilitate efficient
companies belonging to the portfolio
same group as the sponsoring management
employer = 10%
Mexico - All Afores, (Siefore) Basic 0% 0% 0% The portfolio is subject to 0%
Fund 0 a Value at Risk (VaR)
limit of 0.7% for Basic
Fund 0.
Mexico - All Afores, (Siefore) Basic 5% 30% max. Limit Inherit limits from For the exposure to any 0% Pension funds are prohibited to
Fund 1 for eligible authorized authorized underlying have administrative control of
Other / Comments: - Limit for currencies, underlyings. through authorized the firms. They can own firms
securities issued or endorsed regardless of the derivatives, it is applied a only through the stock market or
by non-financial parties whose Basic Fund. VaR metric called via the SPV called CKD which
control group is shared with differential conditional invest in alternatives. In this
the AFORE = 5% (may be VaR which limits the case, a 10% limit applies to
raised to 10% under leverage of the portfolio each asset class: equity and
exceptional circumstances); through derivatives but private investments inherited
- Limit for securities issued or does not limit the from previous Siefore.
endorsed by a financial party holdings on any other The regulatory VaR limit may be
whose control group is shared authorized security. substituted by AFORE in
with the AFORE = 0%; The portfolio is subject to accordance with the benchmark
- Limit for securities issued or the differential it has defined.
endorsed by related parties = Conditional Value at Risk
15%. (∆CVaR) limit of 0.30%
for Basic Fund 1.
All basic funds are
subject to the same
liquidity ratio limit of 80%
in the four Basic Funds.
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comments
exposure
This ratio measures the
potential liquidity
requirements the pension
fund may need stemming
from margin calls divided
by the amount of
securities that are liquid
and have low credit risk.
The portfolio is subject to
a Value at Risk (VaR)
Fund 1.
These VaR limits can be
raised to any level the
pension funds defines,
provided the fund
manager fulfils the risk
and prudential regulation
Securities must be rated
by two authorized rating
companies; in case of
mismatch, the lower
rating applies.
Authorized commodities:
not allowed
Credit derivatives and
other exotic derivatives
(derivative over
derivative) are forbidden,
with the exception of
swaption-liked
derivatives.
OTC counterparties must
be rated by a rating
agency.
Counterparty/issuer limits
apply.
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comments
exposure
control group is shared with differential conditional invests in alternatives. In this
the AFORE = 5% (may be VaR which limits the case, a 30% and 15% limit
raised to 10% under leverage of the portfolio applies to equity and private
exceptional circumstances); through derivatives but investments, respectively.
- Limit for securities issued or does not limit the The regulatory VaR limit may be
endorsed by a financial party holdings on any other substituted by AFORE in
whose control group is shared authorized security. accordance with the benchmark
with the AFORE = 0%; The portfolio is subject to it has defined.
- Limit for securities issued or the differential
15%. (∆CVaR) limit of 0.45%
for Basic Fund 2.
All basic funds are
subject to the same
potential liquidity
requirements that
pension fund may need
stemming from a margin
calls divided by the
amount of securities that
are liquid and have low
credit risk.
Fund 2.
provided the fund
and prudential regulation.
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comments
exposure
mismatch, the lower
rating applies.
Limit for authorized

commodities = 5%
(derivative over
swaption-liked
derivatives.
agency.
apply.
with the AFORE = 0%; The portfolio is subject to it has defined.
15%. (∆CVaR) limit of 0.7% for
Basic Fund 3.
All basic funds are
subject to the same
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comments
exposure
potential liquidity
requirements that
credit risk.
Fund 3.
provided the fund
mismatch, the lower
rating applies.

commodities = 10%.
(derivative over
swaption-liked
derivatives.
agency.
apply.
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exposure
with the AFORE = 0%; The portfolio is subject to it has defined.s
15%. (∆CVaR) limit of 1% for
Basic Fund 4.
All basic funds are
subject to the same
potential liquidity
requirements that
credit risk.
Fund 4.
provided the fund
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exposure
mismatch, the lower
rating applies.

commodities = 10%.
(derivative over
swaption-liked
derivatives.
agency.
apply.
Netherlands - Sector- or industry-wide 5% None None None No specific limit. Pension
pension plans funds are able to fully own
- Company pension funds Other / Comments: Limit for all shares of a company,
- Pension funds for professions investments in shares of the with the exception of
- Other pension funds sponsoring employer = 5% companies that act as
- Pension funds not under (can be 10% in case of sponsoring employers.
supervision exceeding assets)
New Zealand - Superannuation registered 5% 100% 100% None 100%. Technically this is New Zealand does not prescribe
schemes not prohibited. However, specific portfolio limits. However,
- KiwiSaver Other / Comments: trustees must consider trustees must consider
Superannuation Schemes are diversification and liquidity diversification in making asset
not permitted to invest more in making asset allocations.
than five per cent of their allocations.
assets in in-house (related
party) assets. That is, funds
are not permitted to make
investments in, or loans to, an
employer-sponsor, subject to
some exceptions.
Norway - Pension funds 4% 30% No quantitative limit A minimum of 70% of 15%
(pensjonkasser): private pension assets must be
funds, municipal pension funds Other / Comments: This limit denominated in the same
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comments
exposure
refers to the exposure to currency as the pension
financial instruments issued by fund's technical
the company for which the provisions (in the wide
fund is founded. sense). This does not
apply, however, if the
pension fund in order to
satisfy this requirement
would have to hold net
financial receivables in
that currency to a value
of 7% or less of its
overall assets in other
currencies.
Poland - Open pension funds (OFE) 0% 30% 0% - 10% Concentration limit technically
refers to single emission (max.
Other / Comments: Assets 10% of single emission) so it
may not be invested in translates to no more than 10%
securities issued by a pension of actual shares
fund company or its
shareholders, controlled,
controlling or associated
entities.
Poland - Employee pension funds (PPE) 5% 30% 0% - 10% Concentration limit technically
refers to single emission (max.
Other / Comments: - Limit for 10% of single emission) so it
shares issued by EPF translates to no more than 10%
management society of actual shares
shareholders = 5%;
- Limit for shares and bonds
issued by EPF management
society shareholders = 10%
Portugal - Closed pension funds - The fund is not allowed to 30% 100% The 30% limit for There are no specific limits -
- Open pension funds hold securities issued by the investment in a different in the investment
pension fund manager or by currency from that in regulation. The limit on
companies that are members which liabilities are ownership of shares or
of its governing bodies or that denominated (i.e. voting rights was
hold, directly or indirectly, currencies outside the withdrawn during the 2007
more than 10% of its share Eurozone) can be revision of investment
capital or voting rights, except exceeded if the currency rules.
if the securities are traded in risk is hedged.
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comments
exposure
regulated markets. The use of derivatives is
- The fund is not allowed to subject to qualitative
hold securities issued by the criteria. In case
sponsors or by companies derivatives are used as
related with them, except if part of an aggregate risk
traded in regulated markets. management, the
- The fund is not allowed to increase of the maximum
hold securities issued by potential loss cannot
companies where more than exceed 20% of the
10% of voting rights belong to maximum potential loss
governing bodies of the fund that, without the use of
manager or to persons with those derivatives, the
familiar ties to those governing pension fund would be
bodies except if traded in exposed to.
regulated markets. There is a 40% limit for
- The fund is not allowed to assets used in securities
hold securities issued by a lending operations.
company that shares any
constituent of its governing
bodies with the governing
bodies of the fund manager,
except if traded in regulated
markets.
- Investment limit for the set of
companies in the same
economic group or related
with the fund manager is 20%.
Investment in plan sponsors or
in companies related to plan
sponsors is limited to 5% and,
when the sponsor belongs to a
group, investment in the set of
economic group as the
sponsor is limited to 10% (this
limit is also applicable to the
set of sponsors of a pension
fund).
Portugal - Personal retirement saving - The fund is not allowed to 30% 100% The 30% limit for There are no specific limits -
schemes (PPR) financed hold securities issued by the investment in a different in the investment
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comments
exposure
through pension funds pension fund manager or by currency from that in regulation. The limit on
companies that are members which liabilities are ownership of shares or
of its governing bodies or that denominated (i.e. voting rights was
hold, directly or indirectly, currencies outside the withdrawn during the 2007
more than 10% of its share Eurozone) can be revision of investment
capital or voting rights, except exceeded if the currency rules.
if the securities are traded in risk is hedged.
regulated markets. The use of derivatives is
- The fund is not allowed to subject to qualitative
hold securities issued by criteria. In case
companies where more than derivatives are used as
10% of voting rights belong to part of an aggregate risk
governing bodies of the fund management, the
manager or to persons with increase of the maximum
familiar ties to those governing potential loss cannot
bodies except if traded in exceed 20% of the
regulated markets. maximum potential loss
- The fund is not allowed to that, without the use of
hold securities issued by a those derivatives, the
company that shares any pension fund would be
constituent of its governing exposed to.
bodies with the governing There is a 40% limit for
bodies of the fund manager, assets used in securities
except if traded in regulated lending operations.
markets.
- Investment limit for the set of
economic group or related
with the fund manager is 15%.
Slovak - Privately managed mandatory 0% 5%. The assets 0% (not allowed for A pension fund’s assets A Pension Fund The sum of investments in
Republic pension system - Bonds which are not investment may not include more Management Company - securities issued by a single
Guaranteed Fund Other / Comments: The assets hedged against transactions) than: (PFMC) may not acquire group of legal entities which are
of the pension funds may not foreign exchange - 10% of the sum of either for itself or the transferable securities, money
comprise of: risk may Only financial shares/units of open-end pension funds under its market instruments, shares/units
- shares of the PFMC’s constitute not derivatives for the investment fund management shares with of open-end investment funds,
depositary, more than 5% of purposes of hedging - 10% of the sum of the voting rights that would and/or securities of foreign
- unit certificates of open- the fund's net against market risk par values of securities of allow the PFMC to collective investment
ended mutual funds managed asset value. or to mitigate market one foreign collective exercise significant undertakings or other foreign
by a management company risk and maintain the investment undertaking influence over the issuer’s collective investment
with which the PFMC value of underlying or one other foreign management (e.g. more undertakings,
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comments
exposure
managing the given pension asset of the pension collective investment than 50% of shares with - deposits held with that group of
fund forms a group with close fund. undertaking voting rights; to calculate legal entities and
links the proportion of voting - large exposures to that group
- securities issued by the 30-50% of the net asset rights attached to shares, arising from financial derivative
PFMC or by companies that value of the pension fund the procedure under the transactions and hedging
are members of its governing may be invested in Commercial Code shall be transactions
bodies or that have a transferable securities followed). shall not constitute more than
controlling ownership or group and money market 20% of the net asset value of a
relation with the PFMC, or instruments issued or pension fund .
directly or indirectly hold more guaranteed by a Member The group of legal entities
than 10% of its share capital State. mentioned in the first sentence
or voting rights (30% for six issues) mean legal entities that are part
of a group for which a single set
of consolidated financial
statements are prepared in
accordance with a separate
regulation or with international
accounting standards
Slovak - Privately managed mandatory 0% 30-50% of the net A pension fund’s assets A Pension Fund The sum of investments in
Republic pension system - Equity Non- asset value of the 0-15% may not include more Management Company - securities issued by a single
Guaranteed Fund Other / Comments: The assets pension fund may than: (PFMC) may not acquire group of legal entities which are
of the pension funds may not be invested Only financial - 10% of the sum of either for itself or the transferable securities, money
comprise of: in transferable derivatives for the shares/units of open-end pension funds under its market instruments, shares/units
- shares of the PFMC’s securities and purposes of hedging investment fund management shares with of open-end investment funds,
depositary, money market against market risk - 10% of the sum of the voting rights that would and/or securities of foreign
- unit certificates of open- instruments or to mitigate market par values of securities of allow the PFMC to collective investment
ended mutual funds managed issued or risk and maintain the one foreign collective exercise significant undertakings or other foreign
by a management company guaranteed by a value of underlying investment undertaking influence over the issuer’s collective investment
with which the PFMC Member State. asset of the pension or one other foreign management (e.g. more undertakings,
managing the given pension (30% for six fund except for collective investment than 50% of shares with - deposits held with that group of
fund forms a group with close issues) global exposure to undertaking voting rights; to calculate legal entities and
links precious metal the proportion of voting - large exposures to that group
- securities issued by the derivatives linked to rights attached to shares, arising from financial derivative
PFMC or by companies that a precious metals the procedure under the transactions and hedging
are members of its governing index (15% of the Commercial Code shall be transactions
bodies or that have a fund´s net asset followed). shall not constitute more than
controlling ownership or group value). 20% of the net asset value of a
relation with the PFMC, or pension fund .
directly or indirectly hold more The group of legal entities
than 10% of its share capital mentioned in the first sentence
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comments
exposure
or voting rights mean legal entities that are part
Slovak - Privately managed mandatory 0% 30-50% of the net A pension fund’s assets A Pension Fund The sum of investments in
Republic pension system - Other types of asset value of the 0-15% may not include more Management Company - securities issued by a single
funds Other / Comments: The assets pension fund may than: (PFMC) may not acquire group of legal entities which are
of the pension funds may not be invested Only financial - 10% of the sum of either for itself or the transferable securities, money
comprise of: in transferable derivatives for the shares/units of open-end pension funds under its market instruments, shares/units
- shares of the PFMC’s securities and purposes of hedging investment fund management shares with of open-end investment funds,
depositary, money market against market risk - 10% of the sum of the voting rights that would and/or securities of foreign
- unit certificates of open- instruments or to mitigate market par values of securities of allow the PFMC to collective investment
ended mutual funds managed issued or risk and maintain the one foreign collective exercise significant undertakings or other foreign
by a management company guaranteed by a value of underlying investment undertaking influence over the issuer’s collective investment
with which the PFMC Member State. asset of the pension or one other foreign management (e.g. more undertakings,
managing the given pension (30% for six fund except for collective investment than 50% of shares with - deposits held with that group of
fund forms a group with close issues) global exposure to undertaking voting rights; to calculate legal entities and
links precious metal the proportion of voting - large exposures to that group
- securities issued by the derivatives linked to rights attached to shares, arising from financial derivative
PFMC or by companies that a precious metals the procedure under the transactions and hedging
are members of its governing index (15% of the Commercial Code shall be transactions
bodies or that have a fund´s net asset followed). shall not constitute more than
controlling ownership or group value). 20% of the net asset value of a
relation with the PFMC, or pension fund .
directly or indirectly hold more The group of legal entities
than 10% of its share capital mentioned in the first sentence
or voting rights mean legal entities that are part
Slovak - Voluntary personal pension 0% 30-60% 20%-100% In a supplementary There is a provision under SPMC shall appropriately
Republic plans - contributory pension - Assets - A supplementary pension fund, the value which SPMCs may not spread the investment of
funds Other / Comments: 20%-100% denominated in a pension fund's global of shares/units: acquire either for supplementary pension funds'
- A supplementary pension currency other exposure related to - of a single standard themselves or assets so as to preclude over-
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comments
exposure
fund's global exposure related than the euro derivatives may not investment funds or supplementary pension reliance on a given asset
to derivatives may not exceed which are exceed the net asset securities of a single funds under their or issuer, excessive risk
the net asset value of the included in the value of the fund. standard European management: shares with exposure to any asset class,
fund. The calculation of the assets of The calculation of investment fund may not voting rights that would issuer or group of persons, and
global exposure shall take into a supplementary the global exceed 20% of the fund's allow the SPMC to the accumulation of risk in the
account the value of the pension fund and exposure shall take net asset value; exercise significant overall asset portfolio of a
derivatives' underlying, are not hedged into account the - of a single special influence over the issuer's supplementary pension fund.
counterparty risk, assumptions against currency value of the investment fund or management (e.g. more SPMC shall not allow a
for future financial market risk may not derivatives' securities of another than 50% of shares with supplementary pension fund's
movements, and the time exceed 30% of underlying, collective investment voting rights; to calculate asset portfolio to have an
remaining until the closure of the counterparty risk, may not exceed 10% of the proportion of voting excessive concentration of
the derivative positions. fund's net asset assumptions for the fund 's net asset rights attached to shares, exposure to the same issuer, or
value. In future financial value the procedure under the group of issuers, whether
- A supplementary pension managing market movements, Commercial Code shall be through direct investment or
fund ' s global exposure currency risk, and the time followed). through indirect investment via
related to derivatives supplementary remaining until the other instruments or products
(derivatives traded on a pension closure of the whose underlyings are exposed
regulated market, on management derivative positions. to such issuer or group of
commodities exchange companies issuers. If investments in certain
pursuant to a separate shall take into - A supplementary asset classes entail a high level
regulation or on another account pension fund ' s of risk, whether by virtue of the
regulated commodities market investments in global exposure nature of the asset or the quality
established in a Member euro- related to derivatives of the issuer, they must be kept
State, where the derivative denominated (derivatives traded to prudent levels
carries a right of settlement instruments on a regulated
and its underlying is a whose market, on
commodity or commodity underlyings commodities
index ) may not exceed 20% comprise exchange pursuant
of the fund's net asset value instruments to a separate
denominated in a regulation or on
currency other another regulated
than the euro. commodities market
When approving established in a
the rules of a Member State,
supplementary where the derivative
pension fund, carries a right of
NBS may settlement and its
increase the limit underlying is a
from 30% to commodity or
60%, provided commodity
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comments
exposure
that the index) may not
investment policy exceed 20% of the
of the fund, fund's net asset
stated in these value
rules, is to
generate income
from exchange-
rate movements
Slovak - Voluntary personal pension 0% In a supplementary There is a provision under SPMC shall appropriately
Republic plans - pay-out pension funds 5% 0% (not allowed for pension fund, the value which SPMCs may not spread the investment of
Other / Comments: SPMC The assets of a investment of shares/units: acquire either for supplementary pension funds'
may not acquire either for distribution transactions) - of a single standard themselves or assets so as to preclude over-
themselves or supplementary supplementary investment funds or supplementary pension reliance on a given asset
pension funds under their pension fund Only financial securities of a single funds under their or issuer, excessive risk
management: which are not derivatives for the standard European management: shares with exposure to any asset class,
- shares with voting rights that hedged against purposes of hedging investment fund may not voting rights that would issuer or group of persons, and
would allow the SPMC to currency risk may currency risk or exceed 20% of the fund's allow the SPMC to the accumulation of risk in the
exercise significant influence not constitute interest rate risk, net asset value; exercise significant overall asset portfolio of a
over the issuer' s more than 5% of provided that such - of a single special influence over the issuer's supplementary pension fund.
management, the fund's net transactions can be investment fund or management (e.g. more SPMC shall not allow a
- SPMC may not invest in asset value shown to reduce the securities of another than 50% of shares with supplementary pension fund's
shares/units of standard risk of losses arising collective investment voting rights; to calculate asset portfolio to
European investment funds, from exchange-rate may not exceed 10% of the proportion of voting have an excessive concentration
shares/units of special or interest-rate the fund 's net asset rights attached to shares, of exposure to the same issuer,
investment funds or movements and the value the procedure under the or group of issuers, whether
shares/units of special impact of these Commercial Code shall be through direct investment or
investment funds or of other movements on the followed). through indirect investment via
collective investment asset value of the other instruments or products
undertakings which may, distribution pension whose underlyings are exposed
under their rules or similar fund. to such issuer or group of
documents, invest more than issuers. If investments in certain
10% of their net asset value in asset classes entail a high level
shares/units of other of risk, whether by virtue of the
investments funds or nature of the asset or the quality
securities of foreign collective of the issuer, they must be kept
investment undertakings to prudent levels
- The assets of a
supplementary pension fund
may not include shares in a
depository
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exposure
Slovenia - Pension company 5% No limit Allowed only for - Uncovered sells of None of the mutual
- Mutual pension funds hedging purposes investments (short pension funds managed by
Other / Comments: - Limit of positions) are not the same manager shall
investment in the sponsoring allowed. acquire any shares
employer = 5%; - The borrowing of the carrying voting rights that
- In the case of multifund is limited up to 10% would enable the
sponsoring employers, limit of of the funds’ assets. management company to
investment in these exercise significant
companies = 10% influence over the
management or the
management board of an
issuing body, however
each investment fund may
hold no more than 10% of
all non-voting shares of a
single issuing body.
Single pension fund may
buy:
- up to 10% single issuer
equity,
bonds,
money market
instruments,
- up to 25% in units of
single open-end
investment fund.
No important influence
over the issuer should be
determined (besides the
share of the voting rights)
also through membership
in the managing board of
the issuer and other
important business
connections with issuer.
Spain - Pension funds: occupational 5% 100% 70% - Global limit of Pension Fund shall invest 5% of the face value in total
plans derivatives traded on a a maximum of 20% of the outstanding securities issued or
- Associated plans Other / Comments: This limit regular market = 70%; face value of total guaranteed by a single entity.
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exposure
- Personal plans refers to assets in securities - Limit for other outstanding securities However, Pension Fund shall
issued by entities belonging to derivatives = 30%; issued by a risk-capital invest a maximum of 20% of the
the same group as the - Max. 5% in derivatives institution or UCITs that face value of total outstanding
sponsoring undertaking. issued or guaranteed by comply with some securities issued by a risk-
the same entity, plus the requirements. capital institution or UCITs that
liabilities guaranteed by it comply to some requirements.
(credits or loans granted The investment in (UCITS have to be traded on
by the same entity). securities or rights issued regulated markets.)
- Max. 10% in derivatives by the same entity No more than 10% (of the same
issued or guaranteed by negotiated in the issuing asset) of the nominal
the same group of Alternative Stock Market or values of financial instruments
companies, plus the in the Alternative Fixed- issued or guaranteed by the
liabilities guaranteed by Income Market, as well as State or its organisations, by the
it. the investment in shares regional authorities, by the local
Limit for derivatives not and shareholdings issued authorities, by equivalent public
admitted to be traded on by a single venture capital Administration of OCDE
a regulated market = 2% entity or entity of Closed- countries and by international
(in the same group, 4%). rate collective investment, institutions and organisations of
The previous limit of 3 per which Spain it is a member.
cent shall be 6 per cent for
such securities or other
financial instruments when
issued by entities
belonging to the same
group.
Sweden - Friendly societies 100% 0% 0% No investments in Not specified in legislation - All limits concern assets
derivatives allowed. covering technical provisions.
Other / Comments: None There are no limitations to free
assets.
Sweden - Life insurance undertakings 100% Assets used to 0% - No derivatives in assets Not specified in legislation - The prudent person principle of
cover debt shall held to cover technical Solvency II may be applied and
Other / Comments: None be invested in a provisions. in that case there are no explicit
manner which - Limit for assets quantitative rules
limits the risk for denominated in
currency currencies other than the
exchange losses, currency in which the
but no explicit liabilities are
restrictions on the denominated = 20%
currency of the
assets covering
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exposure
technical
provisions apply.
Sweden - Providers of occupational 5% Assets used to 0% Risks related to currency Not specified in legislation -
retirement pensions (Pension cover debt shall matching have to be
funds) Other / Comments: - Limit for be invested in a limited. - No derivatives
investment in the sponsoring manner which in assets held to cover
undertaking = 5%; limits the risk for technical provisions.
- When the sponsoring currency - Limit for assets
undertaking belongs to a exchange losses, denominated in
group, limit for investment in but no explicit currencies other than the
the undertakings belonging to restrictions on the currency in which the
the same group = 10% currency of the liabilities are
assets covering denominated = 20%
technical
provisions apply
Switzerland - Second pillar pension plans 5% 30% Derivatives underlie 15% in the case of Not specified in legislation
(institutions de prévoyance) Further several restrictions. alternative investments
Other / Comments: Only in investments Limits of derivatives
case of sufficient coverage of allowed if they apply in the sense
the pension funds are hedged. that the derivative is
assigned to the
underlying category.
Limits apply under
the assumption of a
maximum change of
the underlying.
Turkey - Occupational pension plan: 0% 100% 15% Only money and capital 5% The fund may not own 5% or
defined benefit, defined market instruments which more of capital or all voting
contribution, or hybrid Other / Comments: Purchase are traded in the stock rights in any partnership alone,
- Personal pension plans: of money and capital market exchange may be and the funds established by a
defined contribution instruments of the pension included in the fund pension company may not own
(unprotected) company and the portfolio portfolio. more than 20% of capital or all
manager is not allowed. Total amount of money voting rights collectively, in any
The total of the money and and capital market partnership.
capital market instruments instruments of the
issued by companies where companies the fund
the pension company’s and invests more than 5%,
portfolio manager’s: may not exceed 40% of
(1) Shareholders having more fund assets. These
than 10% of its capital; limitations are not applied
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comments
exposure
(2) Chairman and members of for state bonds.
board of directors; Max. 20% of the fund
(3) General manager and vice assets may be invested
general managers have in money and capital
separately or collectively more market instruments
than 20% of its capital, and issued by venture capital
total money and capital market companies.
instruments issued by the Max. 10% of fund assets
company’s and portfolio can be invested in money
manager’s direct and indirect market instruments.
partnerships may not exceed Investment in derivatives
30% of fund assets. for hedging and
Pension funds are not allowed investment.
to intervene or be represented
in the management of
partnerships whose shares
they purchased.
United - Occupational pension plans 5% No specific limit There is no No other quantitative No limit on ownership Assets must be properly
Kingdom on foreign quantitative limit on portfolio restrictions. concentration. diversified to avoid excessive
Other / Comments: The currency derivatives, but reliance on any particular asset,
employer-related investment is exposure. derivative issuer or group of undertakings
limited to 5%. Employer- investments may be and so as to avoid
related loans are not allowed. made only in so far accumulations of risk in the
as they— portfolio as a whole. This
(a) contribute to a requirement is derived from the
reduction of risks; or EU IORP Directive.
(b) facilitate efficient
portfolio
management
(including the
reduction of cost or
the generation of
additional capital or
income with an
acceptable level of
risk),
and any such
investment must be
made and managed
so as to avoid
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comments
exposure
excessive risk
exposure to a single
counterparty and to
other derivative
operations.
This dates from the
2005 Investment
regulations.
United States - Private pension plans No self-dealing, representing None other than None other than Indicia of ownership of None other than prudence. The specified limits are those
- State and local government two sides of a single prudence. prudence. plan assets must be applicable to plans subject to
employee retirement funds transaction, kickbacks to under the jurisdiction of ERISA.
- Federal government retirement fiduciaries, or transactions US courts. State and local government
funds with parties in interest plans may have applicable
(prohibited transactions), limits. Such plans are governed
unless an exemption applies. under state and local laws,
Special restrictions apply to although these laws are often
certain types of investments, based on ERISA. Similarly, the
including ownership of pass Federal Thrift Savings Plan is
through entities (partnerships subject to a separate regulatory
and S corporations) and regime, which is patterned after
collectibles (art, coins, etc.). ERISA, and includes a
No acquisition of employer diversification requirement.
securities or real property
which results in plan holding in
excess of 10% of plan assets,
but an exception applies for
holding employer securities or
real property under certain DC
plans.
Albania - Voluntary pension funds 0% 100% 0% The law regards as a According to the Law nr. The law regards as a forbidden
forbidden investment in 10197, date 10.12.2009, investment:
Other / Comments: The law derivatives, unless they “On voluntary pension - shares, bonds and other
regards as a forbidden are used for the purpose funds”, article 44 says that securities issued by:
investment : of hedging against the assets of a pension i) any shareholder of the
- shares, bonds and other foreign exchange risk or fund cannot be invested in management company;
securities issued by: other similar risks; shares, bonds and other ii) the depositary of the pension
i) any shareholder of the securities that are either fund;
management company; unlisted or not traded on a iii) any person who is a related
ii) the depositary of the stock exchange, in the party in relation to the entities
pension fund; inter-bank market or other listed at (i) to (ii) of this sub-
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comments
exposure
iii) any person who is a related trading systems regulated paragraph;
party in relation to the entities by the relevant authority. - investment fund units that are
listed at (i) to (ii) of this sub- The Albanian securities managed by the same
paragraph; exchange was licensed in management company;
- investment fund units that July 2017 by AFSA. - debt securities issued by the
are managed by the same The Law does not foresee same employer.
management company; any limit (%) regarding this
- debt securities issued by the type of investment.
same employer.
Armenia - Mandatory pension fund - 0% 40% The risk exposure to - Limit for assets in A fund may acquire no Assets may not be sold outside
balanced funds a counterparty of a foreign currency or more than: 1) 10% or more the regulated market or be
Other / Comments: Assets pension fund in a assets denominated in of the voting shares of a alienated in any other manner
may not be invested in the derivative foreign currency = 40%; single issuing body to:
following: transaction shall not - Limit for investments in 2) 10% of the non-voting 1) Custodian of the fund;
1) securities, derivatives exceed either: (a) non-convertible foreign shares of a single issuing 2) Manager of the fund;
issued by the Fund Manager 10% of its assets currency = 3%; body 3) Members of the management
or Custodian, as well as by when the - Assets may not be 3) 40% of the debt board of the Manager or
persons related to them; counterparty is a invested in the following: securities of a single Custodian;
Exceptions are cases of bank or the deal was derivative securities, issuing body 4) persons affiliated to those
investments in the funds, made on a regulated except for investments 4) 25% of the units or stipulated in sub-clauses 1; 2
managed by the Fund market; or (b) 5% of for hedging purposes; shares of an investment and 3 of this clause.
Manager (or the persons its assets, in other assets whose alienation fund
related), if all the following cases. The is prohibited or restricted;
conditions are satisfied a) maximum potential real estate or other
investment policy of the fund exposure relating to physical assets.
does not contradict to the derivative - Investments in the
investment objectives of the instruments shall not same body, including
pension fund b) fees on exceed the total securities, deposits and
redemptions and allocations of value of a pension derivatives shall not
shares are not charged c) in fund’s portfolio. exceed 20% of total
case of investment of assets market value of fund
of fund, managed by Fund assets excluding covered
Manager, in the other fund, bonds and 30% including
managed by that Fund covered bonds.
Manager, the managers' fee is
not charged twice d) such
possibility is defined by the
rules of the fund
2) securities issued by the
auditor of the Fund Manager
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comments
exposure
or Custodian;
3) securities issued by
persons providing advisory
services to the Fund Manager
or Custodian;
Armenia - Mandatory pension fund - 0% 40% The risk exposure to - Limit for assets in A fund may acquire no Assets may not be sold outside
conservative funds a counterparty of a foreign currency or more than: 1) 10% or more the regulated market or be
Other / Comments: Assets pension fund in a assets denominated in of the voting shares of a alienated in any other manner
following: transaction shall not - Limit for investments in 2) 10% of the non-voting 1) Custodian of the fund;
1) securities, derivatives exceed either: (a) non-convertible foreign shares of a single issuing 2) Manager of the fund;
issued by the Fund Manager 10% of its assets currency = 3%; body 3) Members of the management
or Custodian, as well as by when the - Assets may not be 3) 40% of the debt board of the Manager or
persons related to them; counterparty is a invested in the following: securities of a single Custodian;
Exceptions are cases of bank or the deal was derivative securities, issuing body 4) persons affiliated to those
investments in the funds, made on a regulated except for investments 4) 25% of the units or stipulated in sub-clauses 1; 2
managed by the Fund market; or (b) 5% of for hedging purposes; shares of an investment and 3 of this clause.
Manager (or the persons its assets, in other assets whose alienation fund
rules of the fund
or Custodian;
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comments
exposure
or Custodian;
Armenia - Mandatory pension fund - fixed 0% 40% The risk exposure to - Limit for assets in A fund may acquire no Assets may not be sold outside
income funds a counterparty of a foreign currency or more than 40% of the debt the regulated market or be
Other / Comments: Assets pension fund in a assets denominated in securities of a single alienated in any other manner
may not be invested in the derivative foreign currency = 40%; issuing body. to:
following: transaction shall not - Limit for investments in 1) Custodian of the fund;
1) securities, derivatives exceed either: (a) non-convertible foreign 2) Manager of the fund;
issued by the Fund Manager 10% of its assets currency = 3%; 3) Members of the management
or Custodian, as well as by when the - Assets may not be board of the Manager or
persons related to them; counterparty is a invested in the following: Custodian;
Exceptions are cases of bank or the deal was derivative securities, 4) persons affiliated to those
investments in the funds, made on a regulated except for investments stipulated in sub-clauses 1; 2
managed by the Fund market; or (b) 5% of for hedging purposes; and 3 of this clause.
Manager (or the persons its assets, in other assets whose alienation
rules of the fund
or Custodian;
or Custodian;
Armenia - Voluntary pension fund 0% 50% (total for all The risk exposure to - Limit for assets in A fund may acquire no Assets may not be sold outside
types of foreign a counterparty of a foreign currency or more than: 1) 10% or more the regulated market or be
Other / Comments: Assets currency) pension fund in a assets denominated in of the voting shares of a alienated in any other manner
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comments
exposure
following: 3% for non- transaction shall not - Assets may not be 2) 10% of the non-voting 1) Custodian of the fund;
1) securities issued by the convertible exceed either: (a) invested in the following: shares of a single issuing 2) Manager of the fund;
Fund Manager or Custodian, currencies. 10% of its assets derivative securities, body 3) Members of the management
as well as by persons related when the except for investments 3) 60% of the debt board of the Manager or
to them; counterparty is a for hedging purposes; securities of a single Custodian;
2) securities issued by the bank; or (b) 5% of its assets whose alienation issuing body 4) Persons affiliated to those
auditor of the Fund Manager assets, in other is prohibited or restricted; 4) 25% of the units or stipulated in sub-clauses 1; 2
or Custodian, as well as by its cases. The real estate or other shares of an investment and 3 of this clause.
founders; maximum potential physical assets. fund
3) securities issued by exposure relating to - Investments in the
persons providing advisory derivative same body, such as
services to the Fund Manager instruments shall not securities, (including
or Custodian as well as by exceed the total mortgage-backed
founders (participants) thereof; value of a pension bonds), deposits and
fund’s portfolio. derivatives shall not
exceed 30% of total
market value of fund
assets.
Botswana All licensed Retirement Funds 5% 30% 10% (only allowed Commodities: 10% Not supported
for purpose of
efficient portfolio
management)
Brazil Closed pension funds 10% or 20% It is not allowed No limit specific. Up to 25%:
directly.  voting capital or total
Other / Comments: - Limit in * Margin limited to capital
the sponsoring employer = 15% of treasury bills  Net equity of financial
10% investments, assets institutions
issued by financial  some investment
As a rule, limit in the institutions funds (like private equity
sponsoring employer cannot authorised by the funds, real estate funds ...)
represent more than 10% of Central Bank of  of debenture issues.
the pension fund's portfolio Brazil, or shares
(included equity and bonds). accepted by the Up to 15%:
However, if the sponsoring clearing. *Options  certain privately held
employer is a financial premiums limited to companies designated by
institution authorised by the 5% of treasury bills the legislation for
Central Bank of Brazil, it can investments, assets infrastructure investments
represent up to 20% of the issued by financial  foreign investment
pension plan portfolio. institutions funds invested by Brazilian
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comments
exposure
authorised by the Investment fund
Central Bank of
Brazil or stocks of
the pension plan or
investment fund.
Brazil Open Pension Fund (Defined 0% 10% - Allowed only for Maximum of 25% of
Contribution Plans) to Qualified hedging and through quotas from credit rights
Participants clearing houses funds, real estate funds
- It cannot, at any and Private Equity funds.
given time, generate
exposure superior to Maximum of 25% of the
the Net Asset Assets of a receivables
securitization instrument.
Maximum of 20% of the

capital of a publicly traded
company.

Net Asset of a financial
institution.
Brazil Open Pension Fund (Defined 0% 10% - Allowed only for Maximum of 25% of
Contribution Plans) to all other hedging and through quotas from credit rights
Participants clearing houses funds, real estate funds
- It cannot, at any and Private Equity funds.
given time, generate
exposure superior to Maximum of 25% of the
the Net Asset Assets of a receivables
securitization instrument.

company.

institution.
Brazil Traditional Plans 0% 10% - Allowed only for Maximum of 25% of
hedging and through quotas from credit rights
clearing houses funds, real estate funds
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comments
exposure
and Private Equity funds.
- It cannot, at any
given time, generate Maximum of 25% of the
exposure superior to Assets of a receivables
the Net Asset securitization instrument.

company.

institution.
Bulgaria - Supplementary mandatory 0% 20% - Limits with respect - Limit for assets Pension insurance
universal pension funds (UPF) to the notional and denominated in company and a fund
- Supplementary mandatory Other / Comments: - Limit for market value of the currencies other than managed by it cannot Pension insurance company and
professional pension funds investments in securities derivatives = 100% BGN and EUR = 20% separately hold more than a fund managed by it cannot
(PPF) issued by the pension - The effectiveness 7 per cent of the voting acquire shares of one and same
insurance company which of the hedge shares in a single issuer. issuer.
manages the fund or by relationship should A pension fund cannot
affiliated persons/entities = be within the range hold more than 7 per cent A pension fund cannot hold
0%; of negative 80% to of the non-voting shares in more than 20 per cent of a
- Limit for securities issued by 125% a single issuer. single issue of bonds.
the fund’s custodian bank, by The pension funds
fund’s investment managed by the same
intermediary, or by affiliated pension insurance
persons or entities = 0% company can together
hold up to 20 per cent of
the voting shares and up
to 20 per cent of the non-
voting shares in a single
issuer.
A pension insurance
company and the pension
funds managed thereby
may not separately acquire
more than 15 per cent of
the shares/units in a single
collective investment
scheme.
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comments
exposure
A pension insurance
more than 7 per cent of the
shares/units in a special
investment purpose
company/ alternative
investment fund.
Bulgaria - Supplementary voluntary 5% 30% - Limits with respect - Limit for assets Pension insurance Pension insurance company and
pension funds with occupational to the notional and denominated in company and a fund a fund managed by it cannot
schemes (VPFOS) Other / Comments: - Limit for market value of the currencies other than managed by it cannot acquire shares of one and same
investments in securities derivatives = 100% BGN and EUR = 30% separately acquire more issuer.
issued by the sponsoring - The effectiveness than 7 per cent of the
undertaking = 5%; of the hedge voting shares in a single A pension fund cannot hold
- Limit for investments in relationship should issuer. more than 20 per cent of a
securities issued by the be within the range A pension fund cannot single issue of bonds.
sponsoring undertaking which of negative 80% to hold more than 7 per cent
established the scheme and 125% of the non-voting shares in
by affiliated persons/ entities = a single issuer;
10%; The pension funds
- Limit for investments in managed by the same
securities issued by the pension insurance
pension insurance company company can together
which manages the fund or by hold up to 20 per cent of
affiliated persons/entities = the voting shares and up
0%; to 20 per cent of the non-
- Limit for securities issued by voting shares in a single
the fund’s custodian bank, by issuer.
fund’s investment A pension insurance
intermediary, or by affiliated company and the pension
persons or entities = 0%. funds managed thereby
scheme;
A pension insurance
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comments
exposure
investment purpose
investment fund.
Bulgaria - Supplementary voluntary 0% 30% - Limits with respect - Limit for assets Pension insurance Pension insurance company and
pension funds (VPF) to the notional and denominated in company and a fund a fund managed by it cannot
Other / Comments: - Limit for market value of the currencies other than managed by it cannot acquire shares of one and same
investments in securities derivatives = 100% BGN and EUR = 30% separately acquire more issuer.
issued by the pension - The effectiveness than 7 per cent of the
insurance company which of the hedge voting shares in a single A pension fund cannot hold
manages the fund or by relationship should issuer. more than 20 per cent of a
affiliated persons/entities = be within the range A pension fund cannot single issue of bonds.
0%; of negative 80% to hold more than 7 per cent
- Limit for securities issued by 125% of the non-voting shares in
the fund’s custodian bank, by a single issuer;
fund’s investment The pension funds
intermediary, or by affiliated managed by the same
persons or entities = 0% pension insurance
company can together
hold up to 20 per cent of
the voting shares and up
to 20 per cent of the non-
voting shares in a single
issuer.
A pension insurance
scheme;
A pension insurance
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comments
exposure
investment purpose
investment fund.
Colombia - Conservative Fund 10% 15% No limit for hedging - Limit for REPOs and With the resources of all -- 1. Decree 765 of 2016 on
derivatives. If active similar operations type of funds, the Pension article 2.6.12.1.25 established
derivatives are for on admissible Fund Manager (PFM) is different classes of restricted
investment investments= 5% not allowed to have more investments:
purposes, there's a - Limit for REPOs and than 50% of the assets of a. Collective Investment
limit of 2% passive similar Closed-end collective Schemes with and without time
operations = 1%. These investment schemes (CIS). requirements to remain in the
operations can only be If the allocation of schemes that do not fulfill the
used to meet members' resources of all type of grading requirement set forth
retirement from the fund, funds exceeds 30% of the previously, - 90% of the fixed
or fund expenses of the Closed-end CIS, the board income securities that are part of
types of mandatory of directors of the PFM the scheme are investment
pension funds, on must approve the grade -, but those fixed income
admissible investments. investment. securities are registered within
- Limit for structured the National Registry of
Products (100% capital Securities,
protection) of national b. Retail Investment Funds that
and foreign issuers = 0%; that do not fulfill the grading
- Limit for temporary requirement set forth previously,
securities transfer - 90% of the fixed income
operations where the securities that are part of the
funds act as originators = scheme are investment grade -.
10%; c. Leveraged Collective
- Limit for investments in Investment Schemes.
foreign non-hedged d. Hedge Funds and other
currency = 15% Collective Investment Schemes
alike.
e. Securities issued by the
second market without being
rated by a credit rating agency
authorized by the Financial
Superintendence of Colombia.
For the aforementioned asset

classes, the investment limit
applied to the moderate fund is
1%, to the great risk fund is 4%
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comments
exposure
and are forbidden to the
programmed retirement and
conservative funds.
2. Decree 765 of 2016 also

established the investment limit
for the sum of securities other
than mortgage backed securities
and securities issued by entities
not supervised by the Financial
Superintendence of Colombia
that will be exclusively issued to
finance infrastructure projects
which is 1% for both the
moderate and great risk fund
and forbidden for the
conservative and programmed
retirement funds.
3. Decree 059 of 2018 allowed

the investment in alternative
assets and the respective limits.
Colombia - Moderate Fund 10% 35% No limit for hedging - Limit for REPOs and With the resources of all - 1. Decree 765 of 2016 on
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comments
exposure
alike.

conservative funds.

retirement funds.

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comments
exposure
Colombia - Great Risk Fund 10% 50% No limit for hedging - Limit for REPOs and With the resources of all -- 1. Decree 765 of 2016 on
alike.

298
comments
exposure
conservative funds.

retirement funds.

Colombia - Programmed Retirement Fund 10% 15% No limit for hedging - Limit for REPOs and With the resources of all - 1. Decree 765 of 2016 on
299
comments
exposure
alike.

conservative funds.

retirement funds.

Costa Rica Other Public Pension (Judiciary) In article 81.12 by Law N° 7333
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comments
exposure
provides that the investment
policies of the pension fund are
established by the Supreme
Court.
Costa Rica Other Public Pension (Teachers) In article 21 by Law N°8721
provides that where to invest the
resources of the scheme.
Costa Rica Other Public Pension Not allowed no limit There is not a Repos: 5% Not allowed
(Firefighters) specific limit but the Financial enterprises
Other / Comments: Not derivatives are supervised by local
allowed: allowed only to Financial entity: 15%
board members, managers, hedge the value of Retail fund with 35% in
relatives, full power of attorney the coverage. foreign issuers must be
or a physical people or legal considered as a foreign
entity who has equity (5% or retail investment fund
more) or effective control or Foreign Structured notes:
related people (economic 5%
group). Foreign issues must be
Issuer or guarantor is a at least $250 million or
relative in second degree of equivalent in yens, euro
consanguinity of board or sterling pound.
member, manager, full power Multilateral entities, AA
of attorney of regulated entity credit rate, issue of at
or enterprises where those least $50 million or
relatives have equity equivalent in euro, yens,
participation (5% or more) or sterling pound or colons.
any effective control.
Issuer or guarantor in another
regulated entity, investment
fund administrator, credit rate
entities, Stock exchange or
brokers, custody entity.
Securitized instruments by
related companies.
Structured issues by related
companies.
Costa Rica Private Pensions System: Not allowed no limit There is not a Repos: 5% Not allowed Voting rights are eliminated to
Mandatory pension funds (ROP) specific limit but the Financial enterprises elect company board.
Other / Comments: Not derivatives are supervised by local An employee or partner should
allowed: allowed only to Financial entity: 15% not be member of the company
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comments
exposure
board members, managers, hedge the value of Retail fund with 35% in board.
related companies.
companies.
Voluntary specific limit but the Financial enterprises elect company board.
Other / Comments: Not derivatives are supervised by local An employee or partner should
allowed: allowed only to Financial entity: 15% not be member of the company
board members, managers, hedge the value of Retail fund with 35% in board.
302
comments
exposure
related companies.
companies.
Special Occupational specific limit but the Financial enterprises elect company board.
complementary pensions funds Other / Comments: Not derivatives are supervised by local An employee or partner should
(DB: Lotery, FRE, ICE and DC: allowed: allowed only to Financial entity: 15% not be member of the company
BCAC Ind, BCAC Col, ICT, BCR board members, managers, hedge the value of Retail fund with 35% in board.
and Hybrid: BNCR). relatives, full power of attorney the coverage. foreign issuers must be
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comments
exposure
related companies.
companies.
Croatia Mandatory pension fund Pension company is forbidden 60% 30% Per fund/per all funds No limits for financing or
Category A to arrange transactions, in its under management of the securitisation of infrastructure
own name and for pension Other / Comments: same pension company: projects in Republic of Croatia
fund account, with exposure to one 1) 20%/25% limit for the that are classified as
management and supervisory counterparty cannot voting shares traded on infrastructure project by
board members. exceed 3% markets that have stricter government.
rules than usual regulated
Fund assets cannot be markets (i.e. official listing)
invested in securities issued – exceptionally up to 100%
by pension fund depositaries, under the condition that
any shareholder, owner of the such single investment is
pension company or any max 2% of the fund assets
person connected with above and that all such
mentioned persons. investments are max 5%
of the fund assets.
Pension company has to
record all the transactions 2) 10%/15% - limit for
arranged for pension fund voting shares traded on an
account where counterparty is usual regulated market -
shareholder of the pension exceptionally up to 100%
company, pension fund under the condition that
depositary or any other person such single investment is
related to above-mentioned max 2% of the fund
persons. assets, all such
investments are max 5%
of the fund assets.
3) 15%/20% of the closed-

end alternative investment
fund listed on official
markets.
4) 10%/15% of the non-

listed alternative
investment funds.
Other:
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exposure
1) 100%/100% of
government bonds and
government money
market instruments.
2) 10%/15% of
government guaranteed,
municipal, corporate
bonds, money market
instruments;
3) 10%/15% of non-voting
shares.
4) 20%/25% of UCITS
funds and other non-
UCITS retail funds.
5) 5%/7% of the regulatory

capital of the credit
institution through deposits
and cash accounts.
Croatia Mandatory pension fund Pension company is forbidden 40% 30% Per fund/per all funds No limits for financing or
Category B to arrange transactions, in its under management of the securitisation of infrastructure
own name and for pension Other / Comments: same pension company: projects in Republic of Croatia
fund account, with exposure to one that are classified as
management and supervisory counterparty cannot 1) 20%/25% limit for the infrastructure projects by
board members. exceed 3% voting shares traded on government.
markets that have stricter
Fund assets cannot be rules than usual regulated
invested in securities issued markets (i.e. official listing)
by pension fund depositaries, – exceptionally up to 100%
any shareholder, owner of the under the condition that
pension company or any such single investment is
person connected with above max 2% of the fund assets
mentioned persons. and that all such
Pension company has to of the fund assets.
record all the transactions
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comments
exposure
arranged for pension fund 2) 10%/15% - limit for
account where counterparty is voting shares traded on an
shareholder of the pension usual regulated market -
company, pension fund exceptionally up to 100%
depositary or any other person under the condition that
related to above-mentioned such single investment is
persons. max 2% of the fund assets
and that all such
of the fund assets.
3) 15%/20% of the closed-

end alternative investment
fund listed on official
markets.
4) 10%/15% of the non-

listed alternative
investment funds.
Other:
1) 100%/100% of
government money market
instruments.
2) 10%/15% of
government guaranteed,
municipal, corporate
bonds, money market
instruments.
3) 10%/15% of non-voting
shares.
4) 20%/25% of UCITS
funds and other non
UCITS retail funds.
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comments
exposure
and cash accounts.
Croatia Mandatory pension fund Pension company is forbidden 10% 30% Investment in equity and No limits for financing or
Category C to arrange transactions, in its alternative investment securitisation of infrastructure
own name and for pension Other / Comments: funds are not allowed. projects in Republic of Croatia
fund account, with exposure to one that are classified as
management and supervisory counterparty cannot Other: infrastructure projects by
board members. exceed 3% 1) 100%/100% of government.
Fund assets cannot be government money market
invested in securities issued instruments.
by pension fund depositaries,
any shareholder, owner of the 2) 10%/15% of
pension company or any government guaranteed,
person connected with above municipal, corporate
mentioned persons. bonds, money market
instruments.
Pension company has to
record all the transactions 3) 10%/15% of non-voting
arranged for pension fund shares.
account where counterparty is
shareholder of the pension 4) 20%/25% of UCITS
company, pension fund funds and other non-
depositary or any other person UCITS retail investment
related to above mentioned funds provided that trough
persons. such investment, pension
fund acquires indirect
exposure exclusively to
bonds and deposits
(meaning it can invest only
in MMF and bond retail
investment funds.

and cash accounts.
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comments
exposure
Croatia Open-ended voluntary pension 10% in securities whose 100% 100% Per fund/per all funds
fund issuer is a related person. under management of the
Other / Comments: same pension company:
Pension company is forbidden exposure to one
to arrange transactions, in its counterparty cannot 10%/25% of the voting
own name and for pension exceed 10% shares of one issuer
fund account, with 10%/10% of non-voting
management and supervisory shares of one issuer.
board members.
Other:
Fund assets cannot be
invested in securities issued 1) 100%/100% of
by pension fund depositaries, government or government
any shareholder, owner of the guaranteed bonds and
pension company or any money market
person connected with above instruments.
mentioned persons.
2) 10%/10% of corporate
Pension company has to or municipal bonds and
record all the transactions money market
arranged for pension fund instruments.
account where counterparty is
shareholder of the pension 3) 25%/25% of units or
company, pension fund shares of investment fund.
depositary or any other person
related to above mentioned
persons.
Croatia Closed-ended voluntary pension 10% in securities whose 30% 100% Per fund/per all funds
fund issuer is a related person. under management of the
Other / Comments: same pension company:
Pension company is forbidden exposure to one
to arrange transactions, in it counterparty cannot 1) 10% of the voting
own name and for pension exceed 10% shares of one issuer.
fund account, with
management and supervisory 2) 10%/10% of non-voting
board members. shares of one issuer.
Fund assets cannot be Other:

invested in securities issued
by pension fund depositaries, 1) 100% /100% of
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comments
exposure
any shareholder, owner of the government or government
pension company or any guaranteed bonds and
person connected with above money market
mentioned persons. instruments.
Pension company has to 2) 10% /10% of corporate

record all the transactions or municipal bonds and
arranged for pension fund money market
account where counterparty is instruments.
shareholder of the pension
company, pension fund 3) 25%/25% of units or
depositary or any other person shares of investment fund.
related to above mentioned
persons.
Dominican 5% None For a same issuer that belongs
Republic to the category of financial
Other / Comments: - Limit of Institutions: Max 10% of the
administrated pension fund for administrated pension fund
financial instruments related to For a same issuer that belongs
the pension fund administrator to the category of public or
owners and executives = 5%; private company: Max 8% of the
- Pension funds are not administrated pension fund
allowed to be invested in For a same holding company :
equity of Pension Funds Max 3% of the administrated
Administrators, Insurance pension fund
companies and credit rating
companies.
Egypt Defined benefit and defined All forms of investments with Both cash money None None No ownership concept in
contribution pension funds or in pension funds are not with local and the Egyptian private
allowed for the pension funds foreign currency pension funds
management and board of should not
directors. exceed 15% of
total pension
funds money
Gibraltar - Occupational pension schemes 0% Not specified Not specified - Not specified -
Other / Comments: -
Investments prohibited in the
share capital of the company
providing the pension or
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comments
exposure
associated companies
including preference shares;
- Loans prohibited to members
or proprietary directors of the
Company providing the
pension, or a Company which
controls that Company, or to
any other person (for example,
relatives) having a contingent
interest under the Scheme
Guernsey Private Occupational Pension Employer related investments 100% 100% None 100% Employer-Related Investments
Schemes are not permitted to exceed means:
5% of an occupational pension
scheme’s resources. (a) Shares or other securities
issued by the employer or by
any person who is connected
with (meaning the person held a
significant direct or indirect
proprietary, financial or other
interest in or connection with the
employer (other than as a
creditor, surety or guarantor) or
another person had any such
interest in or connection with
both that person and the
employer), or an associate of,
the employer;
(b) Land which is occupied or

used by, or subject to a lease in
favour of, the employer or any
such person;
(c) Property (other than land)

which is used for the purposes
of any business carried on by
the employer or any such
person;
(d) Loans to the employer or any
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comments
exposure
such person, and
(e) Any other investment which

the Commission may specify
from time to time;
Hong Kong, - Mandatory provident fund 10% 70% 10% - At least 30% of a fund Securities and other -
China (MPF) schemes must be held in Hong permissible investments of
Other / Comments: Employer- Kong dollar currency the same issuer must not
sponsored schemes may not investments, e.g. exceed 10% of the fund.
invest more than 10% of their currency forward Not more than 10% of
assets in shares or other contracts to buy Hong shares of a particular
securities of, or issued by, the Kong dollars. class, or the total amount
participating employer or its - Investments in futures of debt securities, issued
associates. and options traded on by an issuer may be
exchanges approved by acquired.
the MPFA must not
exceed 10% of the fund
and must not result in the
fund becoming leveraged
- Investments in warrants
listed on an approved
stock exchange or an
approved futures
exchange must not
exceed 5% of fund. The
underlying ordinary
shares must be listed on
an approved stock
exchange. The warrant
must not contain a put
warrant (except for
hedging purposes).
-The fund may enter into
securities lending and
repurchase agreements.
Not more than 10% of
fund assets may be the
subject of securities
lending or repurchase
agreement respectively.
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comments
exposure
Not more than 50% of
the same issue or kind
may be subject of
securities lending or
repurchase agreements
respectively at any one
time
India - Central and State Government 5%. NPS investments have Not allowed 5% The portfolio Exchange traded -
Pension been restricted to 5% of the invested in derivatives regulated by
- National Pension System- ‘paid up equity capital’ of all derivatives in terms the Securities and
Government the sponsor group companies of contract value Exchange Board of India
- National Pension System- or 5% of the total AUM under shall not be in having the underlying of
Swavalamban Equity exposure whichever is excess of 5% of the any permissible listed
lower. total portfolio stock or any of the
invested. permissible indices, with
the sole purpose of
hedging.
India - National Pension System- 5%. NPS investments have Not allowed 5%. The portfolio Exchange traded -
Private been restricted to 5% of the invested in derivatives regulated by
‘paid up equity capital’ of all derivatives in terms the Securities and
the sponsor group companies of contract value Exchange Board of India
or 5% of the total AUM under shall not be in having the underlying of
Equity exposure whichever is excess of 5% of the any permissible listed
lower. total portfolio stock or any of the
invested. permissible indices, with
the sole purpose of
hedging.
Indonesia Approved Employer Pension 0% 100% 20% per issuer, only Total investment in 100%. There is no
Funds, Approved Financial allowed for put default party, direct restriction for private
Institution Pension Funds option for hedging investment, and property pension funds to have all
purposes shall not exceed 40% the voting rights of a
company.
Jamaica - Approved Superannuation 10% 20% 5% subject to any - Aggregate of all 30% A fund/scheme, either by itself
Fund investment in leases investments in leases or in conjunction with any other
- Approved Retirement Scheme Other / Comments: - Limit for and other and other investments person, is not allowed to hold or
investments in all related party investments. subject to a limit of 5%. - control in excess of 30% of the
= 10%; Derivatives for voting shares in a single issuer,
- Limit for loan to a related speculative purposes are without prior written approval of
party = 1% prohibited. the Commission
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comments
exposure
Jordan - Voluntary private pension 0% 20% The company may invest more
plans provided by life insurance than (20%) of the capital of any
companies Other / Comments: Following of the companies hereunder
investments are prohibited: (limited to these types
1- Investments or granting companies only):-
loans secured by shares of the A- Financial companies.
company itself. B- Financial consulting and
2- Issue a letter of guarantee portfolio management
or any other commitment for companies.
the benefit of a key employee C- Investment fund companies.
or a board member. D- Property investments
3- Investment in any companies.
investment fund which invest E- Information services
in financial instruments issued companies.
by the insurance company by F- Real estate brokerage
more than (10%) of the fund companies.
total investments. G- Companies providing
4- Invest in a capital of a auxiliary services to the
company in which one or more transactions of the company or
of the key employees or board its subsidiaries.
members, directly or indirectly, H- Financial holding companies,
own (10%) or more of the provided that the investment
capital of the company. percentage shall not exceed
5- Purchase or sell any assets (20%) of the invested capital of
owned by key employees or the company, except for the
board members. (Prior investments specified in (G)
approval from IC on above.
exemptions).
6- Investments in shares and
bonds issued by the mother
company.
7- Granting loans to the
mother company or sister
companies (companies the
mother company owns directly
or indirectly).
Jordan - Voluntary private pension
plans provided by Takaful
insurance companies
Kazakhstan Unified accumulative pension 5% 50% 10% Limit on investment in Limit for ownership in
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fund gold shall not exceed equity shall not exceed
Other / Comments: Other / 10%. 10% of a single issue.
Limit on investment in Central Comments: Limit for investment in
bank deposits shall not Limit on bonds (excluding local
exceed 5%. investment in government bonds and
The time to maturity of USD and/or EUR money market
deposits shall not exceed 30 shall not exceed instruments) shall not
days. 50%. exceed 25% of a single
Limit on issue.
investment in
other foreign
currencies shall
not exceed 10%.
Kazakhstan Voluntary accumulative pension 0% 0% 0% Funds may own maximum Since 2013, the Unified
funds 30% of voting shares of Accumulation Pension Fund was
one bank. established in Kazakhstan and
all private accumulative pension
funds’ assets were transferred to
it. Legislation on pension funds
provides for the possibility of
creating voluntary accumulative
pension funds in Kazakhstan.
However from 2013 to the
present, not a single voluntary
fund has been established.
Kenya - Occupational Retirement 10% 15% 5% -
Benefits Schemes
- Individual Retirement Benefits Other / Comments: - Limit for
Schemes investment in the quoted
- Umbrella Retirement Benefits equity issued by the company
Schemes controlled by or a related
- National Social Security Fund company of the sponsor =
(NSSF) 10%;
- Limit for investment in the
unquoted equity, commercial
paper, loan stock and
debentures issued by the
company controlled by or a
related company of the
sponsor = 3%
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Kosovo - Mandatory pension fund 0% 100% 0% not allowed Investment in max 5% of shares and Pension Assets may not be
securities instruments, 30% of debt sec. of a invested in:
Other / Comments: not options, futures, forward single issuer (a).securities instruments that
allowed investment in shares, and other agreements are either unlisted or not publicly
bonds and other securities with respect to securities traded;
issued by any member of and other financial (b).assets that are not capable
governing board of pension assets, except that of alienation by law;
fund, asset manager or derivatives may be used (c).securities instruments,
custodian of assets as a hedging strategy to options, futures, forward and
reduce risk, provided that other agreements with respect
the pension fund will to securities and other financial
have no uncovered assets, except that derivatives
selling position; may be used as a hedging
strategy to reduce risk, provided
that the Trust will have no
uncovered selling position;
(d).real estate or physical assets
not listed on organized markets
for which valuation is uncertain,
including, antiques, works of art,
coins, and motor vehicles and
similar;
Kosovo - Voluntary pension fund 0% 100% 0% - max 5% of shares and Pension Assets may not be
30% of debt sec. of a invested in:
single issuer (a).securities instruments that
are either unlisted or not publicly
traded;
(b).assets that are not capable
of alienation by law;
(c).securities instruments,
options, futures, forward and
other agreements with respect
to securities and other financial
assets, except that derivatives
may be used as a hedging
strategy to reduce risk, provided
that the Trust will have no
uncovered selling position;
(d).real estate or physical assets
not listed on organized markets
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exposure
for which valuation is uncertain,
including, antiques, works of art,
coins, and motor vehicles and
similar;
Liechtenstein Defined Contribution Plans Not allowed with certain 30% Only derivative - 5% -
Defined Benefit Plans exceptions e.g. bank account instruments with
Pension Funds or outstanding premiums underlying on
(limited to not more than 5 accepted
months of outstanding investments
amounts). If a pension fund of
a bank has direct investments
(e.g. a bank account with this
bank) FMA can allow that
under certain conditions.
Malawi Defined Contributions 5% None, except that None None None Malawi does not prescribe
Occupational Pension Funds; pension funds specific portfolio limits. However,
and Defined Benefit Other / Comments: Loans or must comply with trustees must consider
Occupational Pension Funds financial assistance to foreign exchange diversification in making asset
members and their relatives regulations at all allocations.
are not permitted. In addition, times.
pension funds are also not
permitted to invest more than
five per cent of their assets in
a sponsoring employer asset.
Maldives - Maldives Retirement Pension Not allowed No limit Not allowed None Maldives Pension Act No quantitative restrictions
Scheme (8/2009) does not allow imposed by the Authority
Maldives Retirement
Pension Scheme to invest
its assets in unlisted
securities. Hence it is not
possible for the fund to
own all the shares of a
company.
Malta - Occupational Retirement Not more than 5% of the No specific limit The assets of the The Scheme & its -
Schemes Scheme’s assets shall be Scheme shall be investment manager shall
invested in Contributor-related invested in derivative not acquire sufficient
investments. instruments only instruments to give it the
insofar as they right to exercise control
contribute to a over 20% or more of the
reduction of share capital or votes of a
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exposure
investment risks or company, or sufficient
facilitate efficient instruments to enable it to
portfolio exercise significant
management. They influence over the
must be valued on a management of the issuer.
prudent basis, taking
into account the
underlying asset,
and included in the
valuation of the
Schemes' assets.
Excessive risk
exposure to a single
counterparty and to
other derivative
operations shall be
avoided. The
Scheme shall not be
leveraged or geared
in any way through
the use of futures,
options or other
derivatives.
Malta - Personal Retirement Schemes Pension funds should not No specific limit No specific limit The investment policy The Scheme & its -
engage in transactions with should be clearly investment manager shall
any of its members or specified or agreed, as not acquire sufficient
connected persons thereto. the case may be, with the instruments to give it the
The pension fund member and there right to exercise control
administrator shall arrange for should be clear over 20% or more of the
the Scheme assets to be disclosure to the member share capital or votes of a
invested in the best interest of of applicable risks. company, or sufficient
Beneficiaries. In the case of a instruments to enable it to
potential conflict of interest, exercise significant
the Scheme Administrator, or influence over the
the Investment Manager that management of the issuer.
may be appointed to manage
the Scheme’s assets, shall
ensure that investment activity
is carried out in the sole
interest of beneficiaries.
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Mauritius - Occupational Voluntary 15% 70% No specific limit is A private pension scheme Loan of up to 40% to sponsoring
Pension Schemes prescribed. can own up to 20% of employer provided that
- Non-occupational (Personal) Other / Comments: - Limit for shares in a local company. repayment is fully guaranteed by
Voluntary Pension Schemes sponsoring employer’s whose However, the Act the Government of Mauritius.
shares are listed = 15%; specifies that assets
- Limit for sponsoring of a private pension Loan to members up to 15% of
employer’s whose shares are scheme shall not be the total value of assets of the
not listed = 5% invested in pension scheme provided that
derivatives except rules and the investment policy
for reducing of the scheme provide for
investment risk or for granting of loans to members of
efficient portfolio the scheme.
management.
Namibia alll pension plans There is no set limit but the 2.5% This can be done through No limit
Registrar usually grants about the catch all category
5% of totals assets called " Other Assets".
Other / Comments: A Fund

may only invest into the
business of a participating
employer once the Registrar
has approved such
investment. However, in case
of a state owned enterprise,
approval must be granted by
the Minister of Finance.
Nigeria - Defined Contribution Pension 0% 5% per issuer DC schemes cannot PFAs shall ensure that Not more than 7.5% of any The Pension Fund Administrator
Scheme (Federal invest in derivatives not more than 45% of one Fund shall be invested (PFA) or any of its agents are
The Pension Fund Government of for now. pension assets under its in the ordinary shares of a prohibited from investing
Administrator (PFA) or any of Nigeria management are directly quoted company Pension Fund Assets in the
its agents are prohibited from Eurobond); 2.5% or indirectly invested in shares or any other securities
investing Pension Fund per issue any one sector of the issued by the following: A
Assets in the shares or any Nigerian economy Pension Fund Administrator, a
other securities issued by the Pension Fund Custodian (PFC),
following: A Pension Fund a shareholder, director or
Administrator, a Pension Fund affiliate of the PFA or PFC
Custodian (PFC), a holding Pension Fund Assets on
shareholder, director or its behalf, affiliates of any
affiliate of the PFA or PFC shareholder of the PFA, an
holding Pension Fund Assets employee of the PFA, the
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exposure
on its behalf, affiliates of any spouse or any relationship with
shareholder of the PFA, an persons referred to that can be
employee of the PFA, the reasonably construed as a
spouse or any relationship related person.
with persons referred to that The PFA or any of its agents
can be reasonably construed shall not sell Pension Fund
as a related person. Assets to the following: Itself, a
The PFA or any of its agents Pension Fund Custodian, any
shall not sell Pension Fund shareholder, director or affiliate
Assets to the following: Itself, of the PFA or PFC holding
a Pension Fund Custodian, pension fund assets on its
any shareholder, director or behalf, affiliates of any
affiliate of the PFA or PFC shareholder of the PFA, any
holding pension fund assets employee of the PFA, the
on its behalf, affiliates of any spouse or any relationship with
shareholder of the PFA, any persons referred to that can be
employee of the PFA, the reasonably construed as a
spouse or any relationship related person.
with persons referred to that The PFA or any of its agents
can be reasonably construed shall not: Apply Pension Fund
as a related person. Assets under its management
The PFA or any of its agents by way of loans and credits, or
shall not: Apply Pension Fund as collateral for any loan taken
Assets under its management by any person, divulge or utilize
by way of loans and credits, or confidential information
as collateral for any loan taken regarding Pension Fund Assets
by any person, divulge or investment decisions for any
utilize confidential information personal, corporate or related
regarding Pension Fund benefit.
Assets investment decisions Members of the Board, Chief
for any personal, corporate or Executive Officer and Chief
related benefit. Investment Officer of PFAs shall
Members of the Board, Chief abstain from taking investment
Executive Officer and Chief decisions in which they have
Investment Officer of PFAs conflict of interest.
shall abstain from taking
investment decisions in which
they have conflict of interest.
Nigeria - Defined Benefit Pension The Pension Fund Not specified in Not more than 10% of Not more than 4.5% of any The Pension Fund Administrator
Scheme (Approved Existing Administrator (PFA) or any of investment pension assets under one Fund shall be invested (PFA) or any of its agents are
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exposure
Schemes “AES” and Closed its agents are prohibited from regulations but it management shall be in the ordinary shares of a prohibited from investing
Pension Fund Administrators investing Pension Fund should be within invested in all quoted company Pension Fund Assets in the
“CPFs”) Assets in the shares or any the limit specified instruments/ securities shares or any other securities
other securities issued by the by the Central (equity, money market issued by the following: A
following: A Pension Fund Bank of Nigeria and debt) issued by any Pension Fund Administrator, a
Administrator, a Pension Fund one corporate entity. Pension Fund Custodian (PFC),
Custodian (PFC), a A maximum of 45% of a shareholder, director or
shareholder, director or pension fund assets affiliate of the PFA or PFC
affiliate of the PFA or PFC under management can holding Pension Fund Assets on
holding Pension Fund Assets be invested in any one its behalf, affiliates of any
on its behalf, affiliates of any sector of the economy shareholder of the PFA, an
shareholder of the PFA, an employee of the PFA, the
employee of the PFA, the spouse or any relationship with
spouse or any relationship persons referred to that can be
with persons referred to that reasonably construed as a
can be reasonably construed related person.
as a related person. The PFA or any of its agents
The PFA or any of its agents shall not sell Pension Fund
shall not sell Pension Fund Assets to the following: Itself, a
Assets to the following: Itself, Pension Fund Custodian, any
a Pension Fund Custodian, shareholder, director or affiliate
any shareholder, director or of the PFA or PFC holding
affiliate of the PFA or PFC pension fund assets on its
holding pension fund assets behalf, affiliates of any
on its behalf, affiliates of any shareholder of the PFA, any
shareholder of the PFA, any employee of the PFA, the
employee of the PFA, the spouse or any relationship with
spouse or any relationship persons referred to that can be
with persons referred to that reasonably construed as a
can be reasonably construed related person.
as a related person. The PFA or any of its agents
The PFA or any of its agents shall not: Apply Pension Fund
shall not: Apply Pension Fund Assets under its management
Assets under its management by way of loans and credits, or
by way of loans and credits, or as collateral for any loan taken
as collateral for any loan taken by any person, divulge or utilize
by any person, divulge or confidential information
utilize confidential information regarding Pension Fund Assets
regarding Pension Fund investment decisions for any
Assets investment decisions personal, corporate or related
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exposure
for any personal, corporate or benefit.
related benefit. Members of the Board, Chief
Members of the Board, Chief Executive Officer and Chief
Executive Officer and Chief Investment Officer of PFAs shall
Investment Officer of PFAs abstain from taking investment
shall abstain from taking decisions in which they have
investment decisions in which conflict of interest.
they have conflict of interest.
North - Mandatory open pension fund 0% no limit 0% not allowed investment in Percentage of the voting
not allowed investment in
Macedonia futures, options, forward shares of a company shares, bonds and other
Other / Comments: - not contracts and other pension funds can hold :
securities that are either unlisted
allowed investment in shares, derivatives with the only 10% of the nominalor not publicly traded;
bonds and other securities exception of indirect value of single share not allowed investment in
issued by any shareholder of investment through open- issued by single company
instruments that are legally
managing PC, Custodian of end and closed-end prohibited;
Pension Fund and any person investment funds whose not allowed investment in
who is an affiliate entity and/or investment policy permits commodities that are not
person in relation to the use of derivative frequently quoted on organized
shareholder of PC and instrument up to 20% of markets and have uncertain
Custodian. investment fund assets valuation, for example antiques,
- not allowed in bank deposits only for protecting the works of art, and motor vehicles;
in banks which are efficient achievement of shall not be under an obligation
shareholder of the pension investment policy to correct immediately the
company; objectives that follow a excess of investment limits set
certain performance out in the Law, if the individual
index; excess does not exceed the limit
by 20% and the sum of total
excesses does not exceed 5%
of the net asset value of the
Pension Fund;
North - Voluntary open pension fund 0% no limit 0% not allowed investment in Percentage of the voting not allowed investment in
Macedonia futures, options, forward shares of a company shares, bonds and other
Other / Comments: - not contracts and other pension funds can hold : securities that are either unlisted
allowed investment in shares, derivatives ; only 10% of the nominal or not publicly traded;
bonds and other securities value of single share not allowed investment in
issued by any shareholder of issued by single company instruments that are legally
managing PC, Custodian of prohibited;
Pension Fund and any person not allowed investment in
who is an affiliate entity and/or commodities that are not
person in relation to frequently quoted on organized
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exposure
shareholder of PC and markets and have uncertain
Custodian. valuation, for example antiques,
- not allowed in bank deposits works of art, and motor vehicles;
in banks which are shall not be under an obligation
shareholder of the pension to correct immediately the
company; excess of investment limits set
out in the Law, if the individual
excess does not exceed the limit
by 20% and the sum of total
excesses does not exceed 5%
of the net asset value of the
Pension Fund;
Pakistan - Private pension funds under 0% not applicable not allowed For a conventional equity Except where it is A pension fund cannot acquire
VPS - equity sub-fund fund: necessary to protect its controlling interest in any
Other / Comments: Investment Single sector investment investment, the Pension company.
in self-issue or in associated limit is higher of 25% of Fund Manager shall not
concerns not allowed. the fund size or weight of seek to acquire a
For Islamic (Sharia’ compliant) the sector in the index controlling interest in any
funds only: with a maximum cap of enterprise in which it has
Investments in issues where 30% of the fund. invested or has any other
the Fund pension fund interest, which would give
manager or its connected For an Islamic (Sharia it primary responsibility for
party has acted as manager, compliant) fund: single management. (VPS Rules
arranger, under-writer, sector investment limit is 28(4))
adviser, consultant or sub- higher of 30% of the
underwriter has been capped equity fund size or weight
at 2.5% of the issue or the of that sector in the
size of equity fund, whichever index with a maximum
is lower. cap of maximum 35% of
the equity fund size.
Maximum investment in
securities of companies
having operational record
less than five years or
equity less than their paid
up capital has been fixed
at 5% of the equity fund
with a further cap of
investment up to 1% of
the paid up capital of
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exposure
such company or size of
equity fund, whichever is
lower.
Pakistan - Private pension funds under 0% not applicable not allowed Maximum 20% can be Except where it is A pension fund cannot acquire
the Voluntary Pension System invested in a single necessary to protect its controlling interest in any
(VPS) - debt sub-fund Other / Comments: Investment sector except for banking investment, the Pension company.
in self-issue or in associated sector for which the Fund Manager shall not
concerns not allowed. exposure limit has been seek to acquire a
For Islamic (Sharia’ compliant allowed up to 30% of the controlling interest in any
funds only: debt fund. enterprise in which it has
Investments in issues where a invested or has any other
pension fund manager or its Exposure to securities interest, which would give
connected party has acted as rated from A- to A+ has it primary responsibility for
manager, arranger, been capped at 25% of management
consultant, adviser under- the debt fund out of
writer, sub-underwriter has which investment in
been capped at 2.5% of the securities rated A- shall
issue or the debt fund, not be more than 10% of
whichever is lower. the debt fund.
Pakistan - Private pension funds under 0% not applicable not allowed No limit on investment in; Except where it is A pension fund cannot acquire
the Voluntary Pension System · Federal Government necessary to protect its controlling interest in any
(VPS) - money market sub-fund Other / Comments: Investment securities investment, the Pension company.
in self-issue or in associated · Bank deposits (banks Fund Manager shall not
concerns not allowed. rated A plus or higher) seek to acquire a
For Islamic (Sharia’ compliant) controlling interest in any
fund only: Investments in enterprise in which it has
issues where a pension fund invested or has any other
managers or its connected interest, which would give
party has acted as manager, it primary responsibility for
consultant, adviser, arranger, management
under-writer, sub-underwriter
has been capped at 2.5% of
the issue or the money market
fund, whichever is lower.
Pakistan - Private pension funds under 0% not applicable minimum 70% and · Minimum 70% and Except where it is A pension fund cannot acquire
the Voluntary Pension System maximum 90% to be maximum 90% of net necessary to protect its controlling interest in any
(VPS) - commodity sub-fund Other / Comments: Investment invested in assets to be invested in investment, the Pension company.
in self-issue or in associated commodity future commodity future Fund Manager shall not
concerns not allowed. contracts traded on contracts traded on seek to acquire a
Pakistan mercantile Pakistan Mercantile controlling interest in any
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exposure
exchange Exchange. enterprise in which it has
· “Earmarked” cash can invested or has any other
only be invested in cash interest, which would give
and near cash it primary responsibility for
instruments including management
treasury bills with
maturity not exceeding
90 days.
Papua New The Trustee The Trust Board
Guinea Board must must ensure that the
develop, Policy on the use of
document and Derivatives must
maintain a provide that
Currency Risk derivatives will only
Management be used to reduce
Policy in the risk of existing
consultation with investments or
the Licensed currency positions.
Investment
Manager, and
include the policy
in the Investment
Framework.
Peru - All AFPs, Protective Fund No specific limit 100% 0% Domestic issuers: -
(Fund 0)
Other / Comments: - The Bonds:
percentage of the limits of Issued by a public or
issuer, issue and holding private company: 15% of
companies must be reduced in the liabilities of the issuer,
30% when the AFP invests in considering all pension
securities issued or funds (fund 0 + fund 1 +
guaranteed by a related fund 2 + fund 3).
company. - Issuer of Securitized
Securities: 50% of the
liabilities of the issuer,
considering all pension
funds (fund 0 + fund 1 +
fund 2 + fund 3).
- Issuer of Project Finance:
15% of the liabilities of the
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exposure
issuer, considering all
pension funds (fund 0 +
fund 1 + fund 2 + fund 3).
All securities:
- All securities issued by a
single private or public
company: 15% of the
assets of the issuer
(considering all securities
issued by the issuer),
fund 2 + fund 3)
- Issuer of Securitized
fund 2 + fund 3)
15% of the assets of the
issuer (considering all
securities issued by the
issuer), considering all
fund 1 + fund 2 + fund 3)
- Local Issuance limit:

50%, considering all
fund 1 + fund 2 + fund 3),
multiplied by the risk factor
of the issuance.
Peru - All AFPs, Conservative Fund No specific limit 100% 10% Limit on derivatives used Domestic issuers: -
(Fund 1) for hedge without
Other / Comments: - The previous authorization of Bonds:
percentage of the limits of the SBS, the sum of the Issued by a public or
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exposure
issuer, issue and holding notional: 10% private company: 15% of
companies must be reduced in the liabilities of the issuer,
30% when the AFP invests in Limits on derivatives considering all pension
securities issued or used for efficient funds (fund 0 + fund 1 +
guaranteed by a related management: fund 2 + fund 3).
company. - For derivatives that - Issuer of Securitized
seek to reduce or Securities: 50% of the
mitigate the relative risk liabilities of the issuer,
of the investment considering all pension
portfolio, and to reduce funds (fund 0 + fund 1 +
or mitigate the risks fund 2 + fund 3).
through derivatives - Issuer of Project Finance:
whose underlying asset 15% of the liabilities of the
has moderate base risk issuer, considering all
with the security or factor pension funds (fund 0 +
whose risk will be fund 1 + fund 2 + fund 3).
reduced, the sum of the
net equivalent positions All securities:
of derivatives: 4%. - All securities issued by a
-For derivatives that seek single private or public
to generate profit with a company: 15% of the
risk level which is assets of the issuer
consistent with the (considering all securities
objective, risk profile and issued by the issuer),
diversification of the considering all pension
portfolio, the sum of the funds (fund 0 + fund 1 +
absolute values of the fund 2 + fund 3)
net equivalent positions - Issuer of Securitized
of derivatives: 0% Securities: 50% of the
- Limit for the sum of the (considering all securities
resources provided as issued by the issuer),
guarantee Margins: 5%. considering all pension
Security Lending: 30% fund 2 + fund 3)
Structured Instruments 15% of the assets of the
a) 3% issuer (considering all
b) The securities issued by the
guaranteed/protected issuer), considering all
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exposure
capital notes and pension funds (fund 0 +
profitability component of fund 1 + fund 2 + fund 3)
the structured
instruments will be - Local Issuance limit:
considered within of the 50%, considering all
issuer, issuance pension funds (fund 0 +
(corresponding to the fund 1 + fund 2 + fund 3),
issuers of the securities multiplied by the risk factor
that constitute the of the issuance.
aforementioned
components), asset
category and global
foreign assets limits.
The trades of buying and

selling of each foreign
currency, under spot and
forward modality, made
by the funds managed by
a single AFP will be:
Max 0.75% from the sum
of Fund (in a day),
fund 3).
Max 1.75% from the sum
of Fund (in the latest five
days), considering all
fund 2 + fund 3).
Limit for holding

companies: 25%
Limit on autonomy
investment: 1%
Peru - All AFPs, Mixed Fund (Fund 2) No specific limit 100% 10% Limit on derivatives used Domestic issuers: -
for hedge without
Other / Comments: - The previous authorization of Bonds
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exposure
companies must be reduced in the pension fund
30% when the AFP invests in Limits on derivatives Issued by a public or
securities issued or used for efficient private company: 15% of
guaranteed by a related management: the liabilities of the issuer,
company. - For derivatives that considering all pension
seek to reduce or funds (fund 0 + fund 1 +
mitigate the relative risk fund 2 + fund 3).
of the investment - Issuer of Securitized
portfolio, and to reduce Securities: 10% of the
or mitigate the risks pension fund
through derivatives - Issuer of Securitized
whose underlying asset Securities: 50% of the
has moderate base risk liabilities of the issuer,
with the security or factor considering all pension
whose risk will be funds (fund 0 + fund 1 +
reduced, the sum of the fund 2 + fund 3).
net equivalent positions - Issuer of Project Finance:
of derivatives: 7%. 7.5% of the pension fund
- For derivatives that - Issuer of Project Finance:
seek to generate profit 15% of the liabilities of the
with a risk level which is issuer, considering all
consistent with the pension funds (fund 0 +
objective, risk profile and fund 1 + fund 2 + fund 3).
diversification of the - Limits above apply to
portfolio, the sum of the bonds, of public and
absolute values of the private companies. Not
net equivalent positions applicable to Government
of derivatives: 2% and Central Bank.
- Limits for issuer of bonds
- Limit for the sum of the are multiplied by the risk
resources provided as factor of the issuer, which
guarantee Margins: 5%. is the weighted average of
the risk factors of all debt
Security Lending : 30% securities issued by a
single issuer.
Structured Instruments - Local Issuance of bonds
a) 4% limit: 50%, considering all
b) The pension funds (fund 0 +
guaranteed/protected fund 1 + fund 2 + fund 3),
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capital notes and multiplied by the risk factor
profitability component of of the issuance.
the structured
instruments will be Equity
considered within of the Issued by a public or
issuer, issuance private company: 6% of
(corresponding to the the pension fund
issuers of the securities Issued by a public or
that constitute the private company: 12% of
aforementioned the equity of the issuer,
components), asset considering all pension
category and global funds (fund 1 + fund 2 +
foreign assets limits. fund 3).
The trades of buying and Securities: 7.5% of the
selling of each foreign pension fund
currency, under spot and - Issuer of Securitized
forward modality, made Securities: 50% of the
by the funds managed by equity of the issuer,
a single AFP will be: considering all pension
Max 0.75% from the sum funds (fund 1 + fund 2 +
of Fund (in a day), fund 3).
considering all pension - Issuer of Project Finance:
funds (fund 1 + fund 2 + 5% of the pension fund
fund 3). - Issuer of Project Finance:
Max 1.75% from the sum 12% of the equity of the
of Fund (in the latest five issuer, considering all
days), considering all pension funds (fund 1 +
pension funds (fund 1 + fund 2 + fund 3).
fund 2 + fund 3). - Limits for Issuer of Equity
are also multiplied by the
Limit for holding liquidity factor of the
companies: 25% issuer, which is the
weighted average of the
Limit on autonomy liquidity factors of all equity
investment: 1% securities issued by a
single issuer.
All securities
- Investment limit in single
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public or private company:
10%
pension funds
fund 2 + fund 3)
10% of the pension funds
pension funds (fund 0
+fund 1 + fund 2 + fund 3)
- Funds managed by a
single Manager: 10%
Foreign limits:
- Foreign issuance of
bonds limit: 35%,
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exposure
fund 3).
equity limit: 5%,
fund 3).
Peru - All AFPs, Growth Fund (Fund No specific limit 100% 20% Limit on derivatives used Domestic issuers: -
3) for hedge without
Other / Comments: - The previous authorization of Bonds
companies must be reduced in the pension fund
30% when the AFP invests in Limits on derivatives Issued by a public or
securities issued or used for efficient private company: 15% of
guaranteed by a related management: the liabilities of the issuer,
company. - For derivatives that considering all pension
seek to reduce or funds (fund 0 + fund 1 +
mitigate the relative risk fund 2 + fund 3).
of the investment - Issuer of Securitized
portfolio, and to reduce Securities: 10% of the
or mitigate the risks pension fund
through derivatives - Issuer of Securitized
whose underlying asset Securities: 50% of the
has moderate base risk liabilities of the issuer,
with the security or factor considering all pension
whose risk will be funds (fund 0 + fund 1 +
reduced, the sum of the fund 2 + fund 3).
net equivalent positions - Issuer of Project Finance:
of derivatives: 10%. 7.5% of the pension fund
- For derivatives that - Issuer of Project Finance:
seek to generate profit 15% of the liabilities of the
with a risk level which is issuer, considering all
consistent with the pension funds (fund 0 +
objective, risk profile and fund 1 + fund 2 + fund 3).
diversification of the - Limits above apply to
portfolio, the sum of the bonds, of public and
absolute values of the privates companies. Not
net equivalent positions applicable to Government
of derivatives: 3% and Central Bank.
- Limits for issuer of bonds
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comments
exposure
- Limit for the sum of the are multiplied by the risk
resources provided as factor of the issuer, which
guarantee Margins: 8%. is the weighted average of
the risk factors of all debt
Security Lending : 30% securities issued by a
single issuer.
Structured Instruments - Local Issuance of bonds
a) 5% limit: 50%, considering all
b) The pension funds (fund 0 +
guaranteed/protected fund 1 + fund 2 + fund 3),
capital notes and multiplied by the risk factor
profitability component of of the issuance.
the structured
instruments will be Equity
considered within of the Issued by a public or
issuer, issuance private company: 7.5% of
(corresponding to the the pension fund
issuers of the securities Issued by a public or
that constitute the private company: 12% of
aforementioned the equity of the issuer,
components), asset considering all pension
category and global funds (fund 1 + fund 2 +
foreign assets limits. fund 3).
The trades of buying and Securities: 7.5% of the
selling of each foreign pension fund
currency, under spot and - Issuer of Securitized
forward modality, made Securities: 50% of the
by the funds managed by equity of the issuer,
a single AFP will be: considering all pension
Max 0.75% from the sum funds (fund 1 + fund 2 +
of Fund (in a day), fund 3).
considering all pension - Issuer of Project Finance:
funds (fund 1 + fund 2 + 5% of the pension fund
fund 3). - Issuer of Project Finance:
Max 1.75% from the sum 12% of the equity of the
of Fund (in the latest five issuer, considering all
days), considering all pension funds (fund 1 +
pension funds (fund 1 + fund 2 + fund 3).
fund 2 + fund 3). - Limits for Issuer of Equity
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comments
exposure
are also multiplied by the
Limit for holding liquidity factor of the
companies: 25% issuer, which is the
weighted average of the
Limit on autonomy liquidity factors of all equity
investment: 1% securities issued by a
single issuer.
All securities
10% of the pension fund
issuer: 15% of the assets
of the issuer (considering
all securities issued by the
pension fund
fund 2 + fund 3)
10% of the pension fund
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comments
exposure
- Funds managed by a
single Manager: 10%
Foreign limits:
bonds limit: 35%,
fund 3).
equity limit: 5%,
fund 3).
Romania - Private pension fund - second 0% 100% Maximum exposure - There is no specific limit maximum 10% of a company's
pillar of a currency on pension fund's outstanding shares, including
Other / Comments: no derivative should not percentage of the voting preferred shares;
investments allowed in exceed the shares of a company. maximum 10% of a company's
securities issued by the fund maximum exposure Pension funds cannot preferred shares;
administrator or its affiliated of the portfolio on however hold more than maximum 25% of units/shares
companies that currency. 10% of a company's issued by an undertaking for
outstanding shares, collective investments,
including preferred shares. exchange-traded fund or
exchange-traded commodity;
maximum 10% of an issuer's
outstanding bonds, except for
government bonds.
Romania - Private pension fund - third 0% 100% Maximum exposure - There is no specific limit maximum 10% of a company's
pillar of a currency on pension fund's outstanding shares, including
Other / Comments: no derivative should not percentage of the voting preferred shares;
investments allowed in exceed the shares of a company. maximum 10% of a company's
securities issued by the fund maximum exposure Pension funds cannot preferred shares;
administrator or its affiliated of the portfolio on however hold more than maximum 25% of units/shares
companies that currency. 10% of a company's issued by an undertaking for
Maximum exposure outstanding shares, collective investments,
of an interest rate including preferred shares. exchange-traded fund or
derivative should not exchange-traded commodity;
exceed throughout maximum 10% of an issuer's
the period of their outstanding bonds, except for
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comments
exposure
ownership the government bonds.
principal to be
refunded to the
assets support held
in the portfolio of the
fund, and the final
maturity of derivative
must be less than or
equal to the maturity
of the underlying
asset (interest rate
derivatives allowed
only on 3rd pillar).
Russian - Mandatory funded pillar, 10% 80% 0% None Government bonds of the Not allowed: investments in
Federation default option Russian Federation of one securities issued by
Other / Comments: Cash in foreign issue: Must not exceed management companies,
currency in credit 80% of total outstanding brokers, credit institutions,
Securities issued by affiliated institutions, and bonds of that issue (if insurance organisations, the
companies of the state deposits in Russian government specialised depositary, and
management company and roubles and in bonds denominated in auditors with which agreements
the specialised depositary foreign currency roubles are privately- for providing services have been
must not exceed 10% of total in credit traded securities, then signed
portfolio. institutions – there are no limits).
USD, euro, stg.,
The proportion of deposits Yen Bonds (of Russian issuer)
placed in credit institutions of one issue which are not
affiliated with the state guaranteed by Russian
management company must government and have
not exceed 20% of total long-term credit rating of
portfolio. national rating agency:
Must not exceed 60% of
total outstanding bonds of
that issue.
Russian - Mandatory funded pillar, 10% 80% 0% None Government bonds of the Not allowed: investments in
Federation conservative option (introduced Russian Federation of one securities issued by
in 2009) Other / Comments: Cash in roubles issue cannot exceed 70% management companies,
and in foreign of total outstanding bonds brokers, credit institutions,
Max 10% in securities issued currency in credit of that issue (if Russian insurance organisations, the
by affiliated companies of the institutions – government bonds specialised depositary, and
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comments
exposure
state management company USD, euro, stg., denominated in roubles auditors with which agreements
and the specialised Yen are privately-traded for providing services have been
depositary. securities, then there are signed
no limits).
Bonds of Russian issuers

government of one issue:
that issue.
Russian Mandatory funded pillar, life 10% 80% 0% None Government bonds of the Not allowed: investments in
Federation annuities portfolio Russian Federation of one securities issued by
must not exceed 10% of total in credit traded securities, then signed.
portfolio. institutions – there are no limits).
USD, euro, stg.,
management company must government and bonds of
not exceed 20% of total issuers that have long-
portfolio. term credit rating of
national rating agency:
that issue.
Bonds (of Russian issuer)

of one issue which are
government Must not
exceed 70% of total
issue.
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comments
exposure
Russian Mandatory funded pillar, term 10% 80% 0% None Government bonds of the Not allowed: investments in
Federation annuities portfolio Russian Federation of one securities issued by
must not exceed 10% of total in credit traded securities, then signed.
portfolio institutions – there are no limits).
USD, euro, stg.,
management company must government and bonds of
not exceed 20% of total issuers that have long-
portfolio. term credit rating of
national rating agency:
that issue.
Bonds (of Russian issuer)

of one issue which are
government Must not
exceed 70% of total
issue.
Russian Mandatory funded pillar 10% 80% 0% None Proportion of shares of Not allowed: investments in
Federation one issuer must not securities issued by
Investment portfolios chosen by Other / Comments: Cash in foreign exceed 10% of total management companies,
participants currency in credit capitalisation of that brokers, lending institutions,
Max 10% in securities issued institutions, and issuer. insurance organisations, the
by affiliated companies of deposits in specialised depositary, and
management company and roubles and in Max 35% in government auditors with which agreements
the specialised depositary. foreign currency bonds of the Russian for providing services have been
in credit Federation of one issue. signed.
Max 20% in deposits placed institutions –
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comments
exposure
with lending institutions USD, euro, stg., Max 40% in bonds of one
affiliated with management Yen issuer (of the aggregate
company. volume of the issuer's
bonds in circulation),
excluding bonds of
Russian government,
bonds of Russian issuers
government and mortgage
bonds issued in
accordance with the law
about mortgage securities.
Russian - Mandatory funded pillar 10% 30% Aggregate value of None 15%
Federation Non-state pension funds derivative lots,
Other / Comments: Other / securities (cash) Proportion of securities of
Comments: received by the one issuer or a group of
Aggregate value of securities Aggregate value asset management affiliated legal entities shall
issued by entities affiliated of assets company of the fund not exceed 15% of
with a fund, asset nominated in for the first part of a investment portfolio of a
management company, foreign currency REPO agreement fund until June 30, 2019,
special depositary and actuary shall not exceed and the value of 14% from July 1, 2019,
shall not exceed 10% of total 30% of total obligations to deliver 13% from January 1, 2020,
investment portfolio of the investment assets as to other 12% from July 1, 2020,
fund. portfolio of a deals with execution 11% from January 1, 2021,
fund. date being not less 10% from July 1, 2021,
Aggregate value of bank than 4 working days excluding government
deposits in credit organisation shall not exceed securities of the Russian
affiliated with a fund, asset 10% of investment Federation, securities
management company shall portfolio of a fund at guaranteed by the Russian
not exceed 20% of total the date of entering Federation, as well as
investment portfolio of the into the above eligible mortgage
fund. mentioned deals securities.
(including the value
Proportion of securities of an of such deals) and
issuer being the fund’s shall not exceed
investor shall not exceed 5% 20% of investment
of pension reserves, except portfolio of a fund in
for the cases when these total.
securities are included in the Redemption and
quotation list of the highest purchase of shares
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comments
exposure
requirements. of a fund may not be
at the expense of the
It is not permitted to invest in fund.
securities issued by the asset
management company, broker
firms, special depository or
auditors that have agreements
with the fund.
It is not permitted to invest in

owners of the asset
management company of the
fund, the affiliated legal
entities of such owners, the
affiliated legal entities of the
asset management company
and in the shares of
investment funds managed by
the asset management
company of the fund (except
for securities in quotation
lists).
Russian - Voluntary pension plan 5% 100% None None Proportion of securities of Redemption and purchase of
Federation one issuer, excluding shares of a fund may not be at
It is not permitted to invest in There is possibility government securities of the expense of pension
securities issued by the for investing in the Russian Federation, reserves.
owners of the asset derivatives but there regional government
management company of the is no definite limit for securities and shares of Shares of investment funds
fund, the affiliated legal their percentage in equity investment funds, managed by the same asset
entities of such owners, the portfolio. shall not exceed 15% of management company shall not
affiliated legal entities of the pension reserves. exceed 25% of pension
asset management company, Proportion of government reserves.
in securities issued by the securities of the Russian
special depository and the Federation of one issue or
auditor of the fund, in the regional government
shares of investment funds securities of one issue
managed by the asset shall not exceed 35% of
management company of the pension reserves.
fund (except for securities in
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comments
exposure
quotation lists).
It is not permitted to invest in

securities issued by the asset
management company
(companies), specialised
depositary, auditors, actuaries
and their affiliated entities
(except securities in quotation
list).
Proportion of financial
instruments issued by one
issuer (who is the fund’s
sponsor at the same time),
excluding cases when these
securities are included in the
highest quote list of a Russian
stock exchange, shall not
exceed 5% of pension
reserves.
Serbia Voluntary pension funds Up to 5% of voluntary pension 100% 0% - No more than 15% of
fund assets shall be invested ownership stake, or voting
in securities issued by the shares of a single issuer,
organiser of the pension may be acquired through
scheme which joined the fund. investment of voluntary
pension fund assets.
Voluntary pension fund assets
may not be invested in By investing in investment
securities issued by: units of the open-end
1) the management company; investment fund VPF may
2) the custody bank with which acquire at most 10% of net
the account of the voluntary assets of the open-end
pension fund is maintained; investment fund.
3) a broker-dealer company,
and/or authorised bank, which
performs brokerage services
in securities trade for the
management company;
4) a shareholder of the
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comments
exposure
management company;
5) a related party of the
persons referred to in indents
1) to 4) hereof.
Fund assets may not be

invested in money deposits
with a custody bank or a bank
which is a founder of a fund
management company and/or
a bank which is directly related
to the founder of the company.
Investment fund management

company in whose units
pension fund invests assets is
not a related party of the VPF
management company,
custody bank, broker-dealer
company or shareholder of the
VPF management company.
Seychelles - Seychelles Pension Fund
South Africa - Pension fund established for 5% 25% Look-through to the Max. 5% on South 49%
public servants, for parastatal underlying asset African Futures
institutions established by Other / Comments: Max. 5% Exchange (SAFEX).
special laws in investments in the business
- Occupational Pension funds of the participating employer
- Umbrella funds/Multi-employer (up to 10% with the approval
funds of the registrar and members
- Retirement Annuity Funds of the fund).
- Preservation funds
Suriname Voluntary occupational pension Pension funds must have a Investments must 10% The sum of claims on the
funds code of conduct for the board first be locally employer and shares of
to prevent conflicts of interest and if not Other / Comments: the employer may not
and abuse of information and possible, some Pension funds exceed 10% of total assets
resources present in the investments such cannot invest in of the fund. There are no
pension fund. as securities, derivatives without rules with regard to the
treasury bills, approval of the percentage of
mutual funds, Central Bank. shares/voting rights of a
investments that company (as a % of all the
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comments
exposure
need approval of shares/voting rights of this
the Bank could company) that pension
be made abroad, funds can hold.
based on limits
and in the case of
securities in
countries with
investment grade
ratings and in the
case of T-bills in
the G-15
countries. Other
investments such
as term deposits
and saving
accounts have no
limits.
Tanzania All mandatory and Conflicts of interest are Stated in the Not stated Not stated Not stated Investment Guidelines allow off
supplementary social security provided in the social security Banking and shore investment for east
schemes and Fund Managers investment guidelines, as well Financial African region only; Funds hold
operating in Tanzania Mainland as investment policies and institutions their investments locally and
procedures of each pension regulations, valued at local currency. It has
fund. specifically for been made mandatory for
banks. The limit Pension Funds to use Fund
is 20% of the managers to invest; in-house
core capital. investment is prohibited.
Thailand - Provident fund 15% No limit on a) for hedging Additional product limit: 25% -
foreign currency purpose: product - Securities lending: ≤25%
Other / Comments: exposure but limit shall not exceed - Reverse Repo: ≤25%
a) Limit of 15% in total disclosure is the actual risk
applied if the following (i) and required. exposure;
(ii) are met:
(i) employer or its affiliated b) for non-hedging
persons is obligator of the purpose:
securities that its provident (i) in the case
fund invests in; and where provident fund
(ii) infrastructure fund or has NO policy to
property fund that aims to involve complex
invest in the assets owned by strategic investment
employer or its affiliated or exotic derivatives
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comments
exposure
persons (with the fiscal annual  net exposure in
average of ≥ 65% of the NAV). derivatives not
exceeding 100% of
b) ≤15% in the case where the the NAV;
following provident fund (ii) in the case
invests in CIS, infrastructure where provident fund
fund or property fund that is has policy to involve
managed by employer: complex strategic
(i) single-employer provident investment or exotic
fund; or derivatives 
(ii) multi-employer provident net exposure in
fund where the total NAV of derivatives is limited
such employers are more than as follows:
half of NAV of the provident - absolute VaR
fund. ≤20% of the NAV;
- relative VaR is
not greater than
twice the VaR of the
reference portfolio.
Trinidad and All Occupational Pension Plans 0% 20% 0% Total foreign assets must 30% Max of 30% of the issued
Tobago not exceed 20% of total ordinary shares of any
Other / Comments: Self- assets corporation
investment is not allowed.
Uganda
Ukraine Other assets not
prohibited by legislation –
max 5% of assets
Uruguay Mandatory personal pension 0% 35% 10% only for 12.5% in case of financial Not stated
funds: defined contribution Fund hedging purposes trusts administered by
A – Workers under 55 years old -shares or bonds of pension the same company
fund administrators
-shares or bonds of insurance

companies
-shares or bonds of related

companies
10% time deposits on related
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comments
exposure
banks
Uruguay Mandatory personal pension 0% as no bonds or shares are 15% 10% only for 12.5% In case of Not stated
funds: defined contribution allowed to be invested in. hedging purposes financial trusts
Fund B – Workers over 55 years administered by the
old 10% of time deposits in same company
related banks
Zambia 5% - A pension fund shall not 10% Not more than 10% ownership
invest in derivatives, of the share capital of any one
Other / Comments: Not more hedge funds or any other company.
than 5% of the fund size of a speculative investments.
pension fund, where it is ' Not less than 2.5% of
invested in listed or unlisted the fund size in collective
equities or securities of the investment scheme.
sponsoring employer where Provided that not more
the sponsoring employer than 10% of the fund size
includes direct and successive shall be invested in a
subsidiaries and holding single unit trust.
companies of the sponsoring
employer.
A pension scheme shall not,
without the approval of the
Registrar, directly or indirectly
grant a loan, or invest in any
debt instrument or shares of
the company or its subsidiary
or holding company or
successive subsidiary or
holding company controlled by
a member or trustee of the
fund or a director of the
sponsoring employer of the
fund.
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Table 4: Main Changes to Pension Fund Investment Regulations During The Period 2002-2018
Main Changes to Pension Fund Investment Regulations During The Period 2002-2018
Country Table 1: Table 2: Table 3:
Portfolio ceilings on pension fund investment by broad asset Additional quantitative restrictions on foreign Additional quantitative restrictions classified by type of
classes investment regulation
Australia - - -
Austria 2003: Investment limit in loans of 10% was eliminated. - 2006: The regulation ‘Besondere Veranlagungsvorschriften
2006: Investment limit in bank deposits of 10% was eliminated. für Pensionskassen' requires Pensionskassen not applying
the regulation ‘Risikomanagementverordnung
Pensionskassen - RIMAV-PK’ (Risk management) to
maintain additional asset limits (in addition to the limits of
the Federal Act on the Establishment, Administration and
Supervision of Pensionskassen). Since 2012 eliminated.
2012: If a pension company does not comply with the
regulation on risk management, the financial market
authority may apply quantitative restrictions which are
stricter than those enacted by the law.
Belgium - - -
Canada - 2005: Investment limit in foreign investment of 30% was 2010: Quantitative limits on real estate and resource
eliminated property investments by pension funds were eliminated.
2015 (some rules were effective as of 2016): There were

many changes made to the federal investment regulations,
including but not limited to:
The 10 percent concentration limit was amended to limit

pension funds to investing a maximum of 10 percent of the
market value of assets of the pension fund (rather than the
book value) in any one entity.
The exception to the self-investment prohibition for shares

purchased on a public exchange was removed. The rules
now allow the administrator to indirectly invest in the
securities of a related party if the securities are held in an
investment fund or segregated fund in which investors other
than the administrator and its affiliates may invest and that
complies with certain quantitative limits.
Chile 2002: Chile pension funds must offer four different funds
with different risk/return profiles: fund B with an equity share
of up to 60%. Fund C with an equity share of up to 40%.
Fund D with an equity share of up to 20%. Fund E with no
345
equity exposure. Additionally, pension funds can offer
voluntarily the fund A with an equity share of up to 80%
2007: New procedures established to grant a license to new
AFPs, and the minimum percentage of total investments
that must be under custody were increased. Also, global
investments limit in foreign assets is being increased
gradually from 30% to 45%, and mutual fund shares and
investment fund shares are not considered in the variable
income securities limit as long as they do not invest any of
their holdings in equities.
2008. Law 20.255 in investments matters, eliminated an
important group of restrictions defined by law, which
contains only the structural limits for multifunds and those
limits which avoid obtaining controlling interest. In the new
scheme, the detailed regulation is defined by the Investment
Regime, a new document issued by the Superintendence of
Pensions and approved by the Ministry of Finance and the
Technical Council. The Technical Council is a new
independent institution, whose objective is to advice in
investments issues. Other main changes are the following:
• Required AFPs to issue an Investment Policy Document in
order to disclose the AFPs investment rules to general
public.
•The 2008 Pension Reform increased the maximum limit for
variable income securities Fund E to 5%. Before the
maximum limit was 0%.
• Increased the maximum global limit of the range for
investment abroad to 80%.
2008. Establishment new limits by type of Pension Funds for
investment abroad. The Central Bank set these limits at
80%, 70%, 60%; 30%, and 25%, for Funds Type A, B, C, D
and E, respectively.
• Permitted AFPs to invest a limited portion of Pensions
assets in relatively risky instruments (under investment
grade, illiquid and high-risk instruments).
• Authorized derivative instruments (apart from hedge)
subject to some limits and the implementation of a risk
management policy.
• Consider for limits the indirect investments in securities
and issuer trough certain investment vehicles.
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• Simplified analysis for authorizing investment in domestic
equity.
• Possibility to introduce portfolio risk management
techniques requirements.
2010: The Investment Regime changed the definition of
hedging in January 2010. Until 2009, the hedging was made
in relation with the denomination currency of mutual funds
and investment funds. Since 2010, hedging can be made in
relation with denomination currency (only until 50% of
foreign investments) or in relation with the currency of
underlying assets of mutual funds and investment funds.
Also during 2010 Central Bank increased global investments
limit in foreign assets to 65% and limits of each type of fund
to 85% (Type A), 75% (Type B), 65% (Type C), 35% (Type
D) and 30% (Type E).
Since September 1st 2011 the global limit was increased to
80%, and the limits per fund were also raised to 100% ( A),
90% (B), 75% (C), 45% (D) y 35% (E).
Since January 1st 2012 the treatment of the derivatives
used to hedge exchange rate risk changed. Derivatives are
considered to hedge this risk for a value of: up to 100% of
holdings in investment-grade foreign debt instruments; up to
70% of holdings in non-investment foreign debt instruments;
and up to 50% of holdings in foreign equity instruments.
2016: The Government introduced new alternatives of
investments for Pension Funds in Law N°20.956.
Particularly, this investment includes “alternative assets”,
such as instruments, operations and contracts related with
real estate, private equity, private debt, infrastructure and
other assets established by the Investment Regime. The
maximum limits were established between 5% to 15%
depending of the type of Funds,
2017: The Investment Regime established the conditions for
eligibility and supervision of investment in alternative assets.
The specific maximum limits were established by the
Central Bank for each type of Funds as follows: 10% (Type
A), 8% (Type B), 6% (Type C), 5% (Type D or E)
Additionally, there are specific limits for Private Equity: 7%,
6%, 4%, 3% and 2%, for Fund A, B, C, D and E,
respectively.
347
Czech Republic 2004: Investment limits in shares and investment funds of 25% and 2004: Increase from 5% to 10% the limit for maximal total
investment limit of 10% on bank deposits were eliminated investment in real estate or movable assets
2013 – transformation of pension funds – segregation of the clients 2009 - decrease of the limit on the assets which shall be
and shareholders assets denominated in the currency of the liabilities of the pension
2013 – introduction of new 3rd pillar. fund to its participants (from 70% to 50%)
2013 – introduction of new 1st bis

/2nd/ pillar – mandatory for members who decided for 1st. bis.
2016 – increase from 35% to 60% of the limit for collective

investment funds authorized to be publically offered in the Czech
Republic
2016 – increase from 5% to 20% for UCITS funds
2016 – The 1st bis (2nd) pillar was liquidated.
Denmark 2016: Solvency II for pension saving with Life Insurers and larger - -
pensions funds.
2016: Adjusted investment rules (Solvency II- style) for LD and ATP
2019: IORP 2 for small company pension funds
In all cases, the changes from 2016-2019 meant a change from

quantitative restrictions to the prudent person principle.
Estonia In 2007, investment limits for real estate and real estate funds were - -
increased from 10% to 40% and for venture capital funds from 30%
to 50%.
Finland - 2017: removal of absolute maximum limits 2005: Increase from 5% to 10% in the limit in foreign -
assets from OECD countries other than EEA countries
2017: removal of regional sorting
France In France, traditionally a Member State without any IORPs, a new
legislation was adopted allowing the creation of IORPs in 2017. The
new legislation introduced a new type of undertaking (Fonds de
Retraite Professionelle Supplémentaire - FRPS) subject to a
framework compliant with the IORP2 Directive. This FRPS
framework introduced thus some quantitative restrictions. Insurance
companies will be allowed to transfer their pension liabilities into
these entities. The remaining liabilities of the insurers will be
submitted to the Solvency 2 regulation, as after 2021 no more RPS
“IORP regulated” activities would be allowed to remain inside
insurance organisations.
348
Germany - - 2004: Hedge funds are permitted for the first time max. 5%;
single hedge funds 1%
2005: Currency matching requirement decrease from 80%
to 70%
2015: Hedge Funds max. 7.5%
Greece Since 2014 came into force more detailed and strict rules as regard - -
the investments’ allocation.
Until 2014 portfolio ceilings that had been placed were according the
general provisions of the Directive 2003/41/EC
Hungary 2004 (VPF): Investment limit in equities of 60% was eliminated 2005: Investment limit in foreign assets of 30% was Since 2007: Introduction of a voluntary life-cycle portfolio
2005 (MPF): Investment limit in equities of 50% was eliminated eliminated system (from 2009 this amendment will become
mandatory).This system offers to pension fund members the
option to choose between 3 different portfolios
(conventional, balanced and growth).
2007 - VPF. In the portfolio of the fund the combined weight
of assets specified in investment units shall not exceed 50%
of the invested assets of the fund, with the stipulation that
the fund may invest 10% of its assets in any single
investment fund, and 30% of its assets in investments funds
managed by a single fund manager was eliminated.
Iceland 2006: Investment limit in shares issued by corporations was raised -
from 50% to 60%.
2015: Pension funds allowed to invest in residential housing
2016: Bill passed to ease investment regulation towards risk based
supervision. These changes will take place on the 1st of July 2017.
These changes include new risk classifications of instruments.
Example of changes: ownership of shares in a single firm rose from
15% to 20% of issued shares.
Ireland Ireland implemented the investment provisions of the IORP Directive Ireland implemented the investment provisions of the IORP Ireland implemented the investment provisions of the IORP
which was transposed in 2005. Directive which was transposed in 2005. Directive which was transposed in 2005.
2010 - the Occupational Pension Schemes (Investment)

(Amendment) Regulations 2010 introduced requirement
that:
- for schemes other than a one-member arrangement or a
small member-controlled scheme, self-investment in the
employer shall not exceed 5% of the resources of the
scheme and total self-investment in the employer group
shall not exceed 10%.
- for a small member-controlled scheme, self-investment in
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the employer group shall not exceed 20%.
Israel Until 2003: 70% of the pension funds' assets were invested in
earmarked bonds.
2003: Investment limit in these Bonds has been reduced from 70%
to 30%.
In 2012: new investment regulations were published. The main
amendment was:
-In old pension funds (established before 1995):
- 30% can be invested in earmarked bonds.
- 48% can be invested in loans or bonds rated BBB- at least.
- 22% can be invested according to investment rules which are
described through this document.
In new pension funds (established after 1995):
- 30% can be invested in earmarked bonds.
- 70% can be invested according to investment rules which are
described through this document.
2018: Investment limit for commercial loans that are rated less than
BBB- (or not rated) has increased from 3% to 5%. This amendment
applies to all pension funds (old and new).
Italy 2014: New regulation on investments has been issued, relaxing 2014: New regulation on investments has been issued, 2007: following the implementing of the Directive IORP
some quantitative restrictions and putting greater emphasis on the relaxing some quantitative restrictions and putting greater 2003/41/EC into the primary law on private pensions
adequacy of pension funds’ organisational structure and risk emphasis on the adequacy of pension funds’ (Legislative decree 252/2005), quantitative limits on self-
monitoring systems with respect to their investment policy. organisational structure and risk monitoring systems with investments have been integrated.
respect to their investment policy. 2014: New regulation on investments has been issued,
relaxing some quantitative restrictions and putting greater
emphasis on the adequacy of pension funds’ organisational
structure and risk monitoring systems with respect to their
investment policy.
Japan - - -
Korea Personal -None -None -None
Pension
Korea Corporate 2008:(DB) Investment limit in indirect investment securities -2008:(DC) abolition of extra investment limit in foreign
pension increased from 30% to 50% bond fund
2015: (DB,DC) new investment regulations were published. Total
exposure for investments in risk asset became 70%.
- DB: 70% can be investment in equity, bills and bonds issued by
public administration, bonds issued by the private sector, Retail
investment funds, and Private investment funds
350
- DC: 70% can be investment in bills and bonds issued by public
administration, bonds issued by the private sector, and Retail
investment funds
2018: for DB plans, investments in REITs listed on regulated market

were allowed.
DB, DC plans: investment limit in target date funds of 70% was
eliminated.
Latvia - 2007: Total exposure for investments in equity increased from 30% - 2007: Limit for non-EU/EEA/OECD countries' bonds and -2007: - Limit for total investments in investment funds and
State funded to 50% MMI listed on regulated market in EU/EEA and OECD AIFs managed by a company belonging to the same group
pensions - 2017: Total exposure for investments in equity increased from 50% increased from 0% to 10%; as the manager of the funded pension scheme increased
(mandatory) to 75%; - 2017: Limit for non-EU/EEA/OECD countries' bonds and from 5% to 15%;
MMI with qualified rating not listed on a regulated market in - Limit for total investments in investment funds and AIFs
EU/EEA, but with reference in prospectus that they will be managed by the manager of the funded pension scheme
included on a regulated market in EU/EEA within a year was limited to 10%;
increased from 0% to 10% 2009: - Limit for investments in securities issued by the
companies belonging to the same group as the manager of
the funded pension scheme (in regulated markets traded
only) increased from 2% to 5%
- 2014: Limit for investments in a single non-UCITS fund
increased from 5% to 10%;
- 2017: Limit for total investments in non-UCITS funds
increased from 10% to 15%;
- 2017: Limit for investments in currencies unmatched to the
obligations in single currency = 10%; in total = 30% was
changed to the limit for net foreign exchange position in a
single currency = 10%; in total = 20%.
Latvia 2005: Adoption of IORP directive restrictions 2005: Adoption of IORP directive restrictions 2005: Adoption of IORP directive restrictions;
Private pension - Limit was set up for net foreign exchange position in single
funds (voluntary) currency = 10%; in total = 20%.
Lithuania None None From the end of 2012 it is allowed to invest up to 30% into
"Risk capital"
Luxembourg - - -
SEPCAV and
ASSEP
Luxembourg CAA 2005: Adoption of IORP directive restrictions 2005: Adoption of IORP directive restrictions 2005: Adoption of IORP directive restrictions
supervised
pension funds
Mexico 2005: Investment limits in equities increased from 0% to 15%. 2005: Investment limit in foreign investment was raised 2005: Mexican pension funds must offer two different basic
Derivatives, repos and securities lending counterparties limits are from 0% to 20%. funds with different risk/return profiles: Fund 1 (SIEFORE 1)
351
introduced. Those limits depend on counterparty’s credit rating: 5% This allows only fixed income and equity. with no equity exposure and Fund 2 (SIEFORE 2) with an
for AAA, 3% for AA and 1% for A. 2011: Allowed investment mandates (segregated equity limit of 15%.2007:
2006: Investment limit in equities for non-mandatory Funds accounts) for foreign assets. The family of funds is extended from 2 basic funds to 5
(Voluntary savings) was expanded from 15% to 30%. 2012: Colombia, Peru, Singapore and Korea became basic funds. Workers are assigned a fund according to their
2007: Three New Basic Funds were created according to a life cycle eligible countries for investment. Now the number of age.
design. eligible countries is 45. New equity limits are defined for basic funds 3, 4 and 5:
New securities were allowed as well as new limits: The minimum credit rating for international 20%, 25% and 30% respectively.
· Investment limit in equities was expanded up to 30% only for Basic debt/counterparties is BBB- (investment grade). Investment in securitizations is allowed. The following limits
Fund 5. 2013: Authorization to invest in REITs through indexes (the apply: 10%, 15%, 20%, 30% y 40% from SB1 to SB5
· Investment in Mexican private equity through listed structured notes mandates should invest in individual REITs). respectively.
in the Mexican Stock Exchange. 2017: Malaysia, New Zealand, South Africa, Thailand and Structured instruments to finance real projects, venture
- Investment in real estate issued through public offerings. Taiwan became eligible countries for investment. Now the capital, private equity, and infrastructure are authorized. The
- Investment in securitizations is allowed. The following limits apply: number of eligible countries is 49. limits for funds 1 to 5 are, respectively: 0%, 1%, 5%, 7.5%,
10%, 15%, 20%, 30% y 40% from SB1 to SB5 respectively. 2018: - Investment in foreign private equity is allowed and 10%.
2008: Limits for AA and A bonds from issuers different than Federal through a SPV called CERPI. In order to compute as a For FIBRAS (Mexican REITS), the following limits apply: the
Government were raised to 50% (from 35% previously) and 20% Mexican security, at least 10% of the total outstanding has limits defined for each basic fund were 0%, 5%, 5%, 10%
(from 5% previously), respectively. Non-convertible subordinated to be invested in Mexican projects, otherwise will be and 10%maximum limits for VaR were defined as 1.3% for
obligations are permitted under the same asset class as the computed within the 20% limit of foreign securities. Basic Fund 3, 1.6% for Basic Fund 4 and 2% for Basic Fund
structured instruments. The limits for this asset class are changed. 5.
2009: Individual stocks of companies who are not listed in any At least 90% of the index market capitalization should 2009: Up to 35% of the amount outstanding of any single
authorized index, IPOs, subordinated debt and convertible include companies supervised by some authority of the issuance hold by all the Basic Funds operated by an
obligations were included in the structured instruments asset class countries eligible for investments AFORE (except for Mexican Federal Government and the
(applies to any of the above provided that they are listed in the Central Bank issues).
Mexican Stock Exchange). 2010: The lowest credit rating allowed for fixed-income
2010: Subordinated debt, convertible and non- convertible bonds of Mexican corporations and government agencies
obligations started to be considered as debt instruments rather than and local (state and municipal) bonds denominated in local
structured instruments. and foreign currency is BBB in local scale and BB in global
Mandatory convertible debt and Mexican issuers’ large market scale respectively.
capitalization IPO´s listed on the Mexican Stock Market started to be 2011: The limits in portfolio (VaR) were raised:
considered as equity instruments rather than structured instruments. · Basic Fund 1: 0.7%
Mexican REITS (FIBRAS) started to be considered as structured · Basic Fund 2: 1.1%
instrument. · Basic Fund 3: 1.4%
Investment limits in equities were raised: · Basic Fund 4: 2.1%
· Basic Fund 1. Not allowed. · Basic Fund 5: 2.1%
· Basic Fund 2 from 15% to 20% The single issuance limits were raised: 100% of the amount
· Basic Fund 3 from 20% to 25% outstanding of any single issuance if it´s lower than 300
· Basic Fund 4 from 25% to 35% million pesos, otherwise only 35%.
· Basic Fund 5 from 30% to 35% 2012: The resources of Basic Fund 5 was removed and
Investment limits in structured instruments were raised: merged with the Basic Fund 4, preserving the latter's
· Basic Fund 1, 0%. investment regime. This change was necessary given that
352
· Basic Fund 2 from 5% to 10%, and Basic Fund 5 (for the younger affiliates) managed a small
· Basic Funds 3, 4 and 5 from 10% to 15%.Single Mexican issuer amount of resources representing an operating cost. The
rated A in local scale limit was raised from 1% to 2%. This limit Basic Fund 4 had almost the same investment regime than
applies for Basic Fund 2, 3, 4 and 5. Basic Funds 2, 3, 4 and 5 can the Basic Fund 5.
invest 1% in debt rated BBB+/BBB in local scale or BB+/BB in global A leverage limit through derivatives was introduced using
scale. This limit applies to subordinated debt rated BBB-/BB+ in local the Conditional Value at Risk (CVaR) differential.
scale and BB-/B+ in global scale. Liquidity ratio limits to manage derivative margin call was
2011: Investment limits in equities were raised: also introduced.
· Basic Fund 1 from 0% to 5% (local plus foreign) Basic Fund 0 was created for those affiliates who are more
· Basic Fund 2 from 20% to 25% (foreign up to 20%) exposed to market volatility such as public servants
· Basic Fund 3 from 25% to 30% (foreign up to 20%) employees who decided to have the new scheme of
· Basic Funds 4 and 5 from 35% to 40% (foreign up to 20%) individual accounts (Defined Contribution) instead of the
Aggregate investment limits for the same credit rating were previous scheme (Defined Benefit) when the system was
discarded (i.e., 100%-AAA, 50%-AA and 20%-less). reformed in 2007. These workers were paid a bonus, which
Mutual funds, commodities and investment mandates (segregated could be withdrawn at any time and in a single exhibition.
accounts) were incorporated in the investment regime. There are also affiliates who can withdraw their money at
Investment limits in commodities were defined for each basic fund: any time and in a single exhibition since they did not reach
· Basic Fund 1: Not allowed. the minimum number of weeks of contribution, among
· Basic Fund 2: 5% others.
· Basic Fund 3: 10% 2013: The operations with swaption-liked derivatives were
· Basic Fund 4: 10% authorized.
· Basic Fund 5: 10% The investment in debt linked to private equity flows is
authorized and classified as alternative investment.
2012: Investment limits in structured instrument were raised for each REITS in eligible foreign markets are authorized. The VaR
basic fund: limits applicable to each basic fund is lifted if the pension
funds properly defines own benchmarks (for each fund it
· Basic Fund 1. Not allowed. operates) and uses them as asset allocation objective and is
· Basic Fund 2 from 10% to 15% supplemented with a deviation policy.
· Basic Fund 3 from 20% to 15% 2014: AFORE (pension funds) are obliged to use
· Basic Fund 4 from 20% to 15% benchmarks in accordance to rules and regulations. AFORE
· Basic Fund 5 from 20% to 15% are allowed to self-regulate VaR measurements from Basic
Funds 2 to 4 in accordance to a risk-time (efficient) strategy
Maximum limits for issuer or counterparty, except subordinated debt, and the approved benchmark.
are settled at 5% as long as the AFORE (pension fund) totally The investment regime for Basic Fund 0 is established and
implements a credit rating model additional from those provided by its profile is non-aggressive.
the credit rating agencies; otherwise it will stay as AAA is 5%, AA is 2015: The following securities were added to the investment
3% and A is 2%. regime:
2013: Basic Fund 1 is allowed to invest in FIBRAS (Mexican REITs) - FIBRA-E: It is a Mexican REIT whose objective is the
through indices or individually and REITs (through indices). The investment in energy infrastructure. It is similar to the well-
maximum limit: 5%. known Master Limited Partnership (MLP).
353
2015: A new bucket was created for Mexican REITs (FIBRAS) and - CERPI (Investment Projects Certificates). Similar to the
international REITs. Previously, this asset class was considered as CKDs (Development Capital Certificates) in structure and
structured instrument. Investment limits are: investment objectives (private equity, real estate,
· Basic Fund 1: 5% infrastructure) but with a difference in its corporate
· Basic Fund 2: 10% governance. In the CKD, investment decisions are made by
· Basic Fund 3: 10% institutional investors who belongs to the Technical
· Basic Fund 4: 10% Committee and in the CERPI, the manager is the one who
makes the investment decisions and institutional investors
A conservative investment regime was defined for the Basic Fund 0 only oversight such decisions on the Investment Committee.
with assets such as cash; bonds issued by the Mexican Government - The AFOREs are required to define an internal credit
with maturity less than or equal to a year; 25% on debt issued by the model for debt instruments in order to obtain their own
Mexican Gov with revisable rate with maturity greater than a year, ratings in addition to those provided by the Credit Rating
among others. Agencies (CRAs). Once the internal credit models are
approved by the CONSAR, the AFORE may use the internal
2016: Investment limits in equities were raised: model results to substitute the current issuer’ limits, which
· Basic Fund 1 from 5% to 10% (local plus foreign) previously were dependent solely on the credit ratings
· Basic Fund 2 from 25% to 30% (foreign up to 20%) provided by the CRAs (5% AAA, 3% AA, 2% A and 1%
· Basic Fund 3 from 30% to 35% (foreign up to 20%) BBB). The maximum issuer limit of 5% AUM will still remain.
· Basic Funds 4 and 5 from 40% to 45% (foreign up to 20%) 2016: A special issuer limit of 10% is set for debt issued by
State Productive Enterprises.
2017: Basic Fund 1 is allowed to invest in inherited structured
instruments from prior Funds. The maximum limit: 10%. 2017: Investments in a single issue of a structured
instrument can be up to 100% (or 3% of the AUMs), subject
2018: Investment in Mutual Funds with active strategies is allowed. to a limit in the financed projects (Up to 50% if the issuance
Investment in SPACs is allowed. These instruments are computed in exceeds certain threshold, or 80% if it is below the
the equity limits. threshold).
2018: Pension Funds’ Investment Committees may now

select the national stocks index to set the domestic stock
picking limits per issuer.
Netherlands - - -
New Zealand KiwiSaver Default investment fund option within an Appointed - -
KiwiSaver Scheme since inception (1 July 2007) are required to
invest not less than 15% or more than 25% of default members’
assets in growth assets.
All other KiwiSaver schemes and registered superannuation
schemes NIL.
Norway - 2008: Exposure limit on equity was eliminated. - -
The Norwegian Ministry of Finance had a major overhaul of the
regulation of pension funds asset management in 2008. In the new
354
regulation the prudent person principle has a more prominent part.
Poland 2013/2014 (OPF): the major revision of investment policy: treasury 2013/2014 (OPF) - as a result for the ruling of ECJ, the
bonds and any state-backed assets no longer allowed, no maximum limit for foreign investments is increased form 5% to 30%
limit for equities, introduced minimum limit for equities (75% down to (with 3 years adjustment period)
0% in consecutive years)
Portugal 2007: (Without prejudice to the specific limits in place for PPR 2007: Clarification of what is considered regulated market 2007: (Without prejudice to the specific limits in place for
pension funds) withdrawn of the 55% limit on equities and 50% on PPR pension funds) raised the global limit on the amount of
real estate, mortgages and loans to members; increase in the limit assets that can be used in securities lending by the pension
for non-harmonized investment funds from 5% to 10% and fund, from 10% to 40%; introduction of an investment limit in
introduction of a 2% investment limit in a single non-harmonised a single non-harmonised investment fund; withdrawn of the
investment fund 25% limit in real estate used by the sponsors of the fund (or
by companies that hold a controlling ownership or group
2018: Withdrawal of the 55% limit on equities for personal retirement relationship with these sponsors); withdrawn of the limit on
saving schemes (PPR) financed through pension funds ownership of shares or voting rights of an individual firm
from each pension fund or group of pension funds managed
by the same manager; and increase in the limit for group of
sponsors (or companies that hold a controlling ownership or
group relationship with the sponsors) from 5% to 10%.
Slovak Republic 2009: 2005: A pension fund’s assets may not include
- Maximum share of investing in unit certificates of open-ended - Minimum value of securities or money market instruments - shares of the PFMC/SPMC´depositary,
mutual funds and securities of foreign collective investment invested in Slovak Republic decreased from 50% to 30%. - unit certificates of open-ended mutual funds managed by a
undertakings decreased from 50% to 25% 2009: management company with which the PFMC/SPMC
- Limit for the value of newly issued transferable securities – 5% - - Condition of minimum share of securities issued or company managing the given pension fund forms a group
was cancelled guaranteed by the Slovak Republic was abandoned. with close links
(Privately managed mandatory pension system) - Investing in unit certificates of open-ended mutual funds - securities issued by the PFMC or by companies that are
2013:- Deposits on current and deposit accounts in one bank – max: managed by a management company with which the members of its governing bodies or that have a controlling
10% PFMC managing the given pension fund forms a group ownership or group relation with the PFMC, or directly or
2012: with close links is not allowed. indirectly hold more than 10% of its share capital or voting
- Limit for investing in Open-ended mutual funds has decreased from 2012: rights
25% to 20% (Privately managed mandatory pension system) in derivatives that have any type of previous metal as their
2013: underlying instrument shall constitute not more than 20%
Legislative changes in investment rules – optimisation of quantitative of the net asset value of a pension fund other than a
and qualitative limits to increase the activity of administrators, guaranteed bond pension fund (Privately managed
reduction of “hard regulation” and strengthening prudential regulation mandatory pension system)
principles
- Limit for mortgage bonds issued by a single bank has increased
from 15% to 25% (Voluntary personal pension system)
Slovenia On 1.1.2013 new Pension and Invalidity Act came in force as Currently there is no restriction regarding the positions in - lower restrictions on investments in open-end funds,
consequence of adoption of pension reform; Regarding the foreign currency (before this legislative change, 80% of - no restrictions on “Schuldschein”, although the competent
investment limits Pension and Invalidity Act refers to Investment total assets had to be invested in EUR). regulator may impose some restrictions in process of
355
Funds and Management Companies Act. Investment limits are authorisation of the pension funds’ investment policies.
UCITS orientated with some particularities. - restrictions in alternative investment funds are now less
restrictive since 2017.
Spain - Between 2001 and 2004, Royal Decree 1307/1988 is applied. - -
- 2004: Adoption of IORP directive restrictions.
- Between 2004 and 2008, a new Royal Decree 304/2004 is applied.
- As of 2009: a new modification of the Royal Decree came into
force.
- On February 10th 2018, the Royal Decree 62/2018 was published,
amending the regulation of plans and pension funds approved by
Royal Decree 304/2004. The Royal decree incorporates the
necessary references to the law 22/2014 of November which
regulate capital-risk entities, other entities of collective investment of
closed type, and have been collected as eligible assets for the
investment pension funds the Participations in European Capital
Risk funds (FCRE) and participations in European social
entrepreneur funds
Sweden --2006: Adoption of IORP directive restrictions. - -
– 2016: Adoption of Solvency II directive, which voluntarily may be
applied by a life insurance undertaking to its occupational pensions
business as regards solvency requirements and investments.
Solvency II rules on corporate governance are, however, mandatory
for all life insurance undertakings.
Switzerland 2009 new investment regulations (Amendment to Ordinance 2009 new investment regulations (Amendment to 2009 new investment regulations (Amendment to Ordinance
BVV2/OPP2), cf. new limits. Ordinance BVV2/OPP2), cf. new limits BVV2/OPP2), cf. new limits
1.7.2014: new investment regulations (Amendment to Ordinance
BVV2, French: OPP2: definition of alternative investments, leverage
and securities, lending/repo restrictions
Turkey 2007: The 76% ceiling on equities was eliminated. 2007: The 15% cap on foreign investment was eliminated. -
2013: Lease certificate has been included in the fund portfolio
investment.
United Kingdom 2005 adoption of IORP Directive but no restrictions on investments - -
except those relating to employer investment
United States None None None
Albania The law on the voluntary pension funds came into force in December - -
2009, and the regulation "On allowed assets, restrictions and
maximum limits of pension fund investments" came into force on
January 2010. This regulation was first amended in 18.10.2010
regarding the investments’ ceilings on treasury bills, bonds and other
356
securities issued or guaranteed by the Republic of Albania, which
changed from 70% to 100%. The second amendment took place in
21.03.2012 and it specified that pension funds are allowed to invest
in bank deposits from licensed banks only. The latest amendment of
this regulation was in 24.08.2016 and considers even current
accounts as allowed investments.
Armenia Mandatory pension fund: Voluntary pension fund: Mandatory pension fund:
- Max 50% of assets in securities issued or guaranteed by Armenian - Max 25% of assets for investments in one foreign country - A fund may acquire no more than 40% of the debt
government and Central Bank of Armenia - Max 40% of assets in - Max 3% for investments in non-convertible foreign securities of a single issuing body
securities issued or guaranteed by foreign governments or foreign currency
central banks
- Limit on covered bonds is removed.
- Max 50% of assets in open-end public standard funds registered in
Armenia or foreign open-end public funds, at least 90% of assets of
which shall be invested in bank deposits, government bonds, listed
securities or other liquid assets
- Max 25% of assets in a fund or funds under management of the
same manager or related managers.
- Max 10% of assets with a bank or related banks
- Max 10% in derivatives with single counterparty, if the counterparty
is a bank or transaction was made on regulated market, and
maximum 5% for other cases.
- Fund may invest in new securities, in case according to the
prospectus or offering memorandum, those securities must be
admitted to trading on a regulated market within 12 months after
issuance
- Rule prohibiting self-investment was amended adding derivatives,
and now pension assets may not be invested in the securities and
derivative instruments of the fund manager and custodian, as well as
affiliated persons. The new provision was introduced in law starting
from 26 November 2016.
Voluntary pension fund:

- Max. 75% of assets in equity
- Max 40% of assets in securities issued or guaranteed by foreign
governments or foreign central banks
- Max 50% of assets in open-end public standard funds registered in
Armenia or foreign open-end public funds, at least 90% of assets of
which shall be invested in bank deposits, government bonds, listed
securities or other liquid assets
357
- Max 25% of assets in a fund or funds under management of the
same manager or related managers.
- Max 10% of assets with a bank or related banks
Botswana
Brazil - 2009: Change in main directive of regulation limits from individual - 2009: Raise in the foreign investment alternatives and
assets to issuer. limits. - 2013 Included 10% limit of the resources for
- 2015: broad revision of general limits for open private pension investment funds classified as external debt into foreign
funds. investments - 2013 Included 25% limit of the fund equity for
- 2018: increased focus on the investment decision-making process investment funds classified as external debt into foreign
of the pension fund. investments
- 2018: Change in main directive of investment regulation. - 2018: new rule for foreign investment.
- 2018: additional requirements for investing in private equity. - 2018: reorganisation of the rules and insertion of new
- 2018: prohibition of direct investment in real estate. possibilities for investment abroad without altering
quantitative limits.
- 2018: prohibition of acquisition of Brazilian private equity
funds made out to invest abroad (with the suffix
"Investment Abroad").
Bulgaria July 2003 July 2003 November 2018
Mandatory funds: Mandatory funds: Mandatory and Voluntary funds:
New allowed investments: derivatives – put options on indices and - increasing the upper limit for foreign investments from - Limit for sovereign securities of third-country,
bonds, traded on a regulated markets (if decrease the investment 10% to 15%; admitted to trading in a regulated market in a EU
risks) - max 2,5;mortgage bonds, issued by domestic banks – max Member State has been introduced = 10%.
30% (max 10% in a single bank); investment property (instead of Voluntary funds: - Limit for debt securities issued or guaranteed by
real property and mortgages) - increasing the upper limit for foreign investment from 10% international financial organisations with
Introduction of ceilings on investments in bank deposits (25%; 10% to 20% investment grade credit rating has been
in a single bank), mortgage bonds (30%), municipal bonds (10%), introduced = 10%.
shares, issued by domestic companies and traded on regulated February 2006 - More restriction on ownership concentration have
markets (10%) and corporate bonds, issued by domestic companies Mandatory and Voluntary funds: been introduced.
and traded on regulated markets (10%). - the limits for foreign investments were removed - A restriction has been introduced that a pension
fund cannot hold more than 20 per cent of a single
Voluntary funds: min 30% in government bonds issue of bonds.
- increasing the upper limit for investment properties from 5% to 10% November 2018
Mandatory and Voluntary funds:
February 2006 -The opportunity to invest in third country (outside those
Mandatory and Voluntary funds: specified in the ordinance of the national competent
- the minimum levels for the investment in government bonds were authority) government debt has been introduced if debt
removed; securities are admitted to trading in a regulated market in a
- the list with the financial instruments, that are allowed for pension EU Member State: max 10%.
fund investments, was expanded;- overall limits by type of securities -The opportunity to invest in a collective investment
admitted to trading on regulated markets were introduced scheme the exclusive object of which is investment in real
358
June 2009 estate, which has been authorised to carry on business
Investments in infrastructure bonds have been permitted: max 10% under the law of a EU Member State has been introduced.
for mandatory funds and no limit for voluntary funds
August 2017
Investments in shares, offered under the terms of an IPO pursuant to
the legislation of the member state, for which a prospectus has been
approved and published, providing for the obligation for securities
acceptance request and securities to be admitted to trading on a
member state regulated market within 12 months of their issuing
have been permitted: max 1% for mandatory funds and 2% for
voluntary funds and voluntary pension funds with occupational
schemes.
November 2018
Mandatory and Voluntary funds:
- The list with the financial instruments, that are allowed for pension
fund investments, has been expanded. Investments in bonds offered
under the terms of an IPO pursuant to the legislation of the member
state and in alternative investment funds managed by a person,
authorised pursuant to the requirements of Directive 2011/61/EU
have been permitted.
- The overall limits on investment in equity, in bonds issued by
private sector and in retail investment funds have been changed.
Colombia 2002: International Mutual Funds, that invest only in variable income According to External Circular 034 of October, 2005: As of 2009:
securities are now included as an admissible investment - Requirements for custody with international custodians - The designations of “Standard & Poor’s, Fitch Inc. or
2004: are established. Moody’s” were replaced by “international recognized rating
- Securities issued by entities located abroad other than banks are According to External Circular 036 of September, 2009: agency”
now included as an admissible investment. - Modification regarding assets under management of the - According to the case, the country where the international
- Maximum Global limit for Securities issued by entities located fund managers of private equity funds located overseas or mutual fund is located, the country where the manager of
abroad is increased from 10% to 20%. its head office has been changed from US$ 10.000 MM to the international mutual fund is located, the country where
- Minimum rating requirement changes from "A-“ and "1" to US$ 1.000 MM the headquarters of the international mutual fund is located,
investment grade. From 2011 on: the country where the stock market or the market where the
- The investment limit in securities issued by entities affiliated to the - It is not allowed to the Conservative and Programmed shares and stock are traded is located, must be rated
Pension Fund Manager decreases from 15% to 10% Retirement Funds to invest in private equity funds, investment grade by an international recognized rating
2005: including funds of funds. Nevertheless, investments in this agency
- Structured products (100% protection of capital) are now included type of assets had an increase of up to 7% of the Great - At least one of the following entities must be located in one
as an admissible investment, when fulfilling certain requirements Risk Fund jurisdiction with investment grade by an international
demanded by the Financial Superintendence of Colombia. recognized rating agency: i) The vehicle which helps to
359
2007: constitute the Private Equity Fund, ii) the manager of the
- Uncovered position in foreign currency limit is increased from 20% Private Equity Fund (also known as the fund manager), its
to 30% of the fund's value headquarters, or its agencies, or iii) The manager of the
- Operations similar to repo agreements in foreign and national Private Equity Fund which is a corporate body.
securities are now included as admissible investment.
2008:
- Commodity Index funds and Fixed Income funds are included as
admissible investment. ETFs fall into this category.
- ADRs and GDRs are now included as an admissible investment.
- Private Equity Funds located overseas are now included as an
admissible investment and the maximum limit is 5%. Nevertheless,
certain requirements must be fulfilled in order to invest in these
assets, such as, clear investment policy, broad experience managing
such funds and the fund manager must have at least $ 10.000
million dollars in AUM.
- The limit’s sum for National and Foreign Variable Income 40%.
- OTC negotiations of derivative instruments with entities affiliated to
the pension manager were forbidden and the Clearing Houses
where these negotiations can take placed where added.
- The pension fund manager with the resources of the mandatory
pension fund cannot make repo agreements nor other similar
operations with entities affiliated to it.
2009:
- Investments in "Funds of funds" regarding Private Equity Funds are
now included as an admissible investment.
In March, 2011 the new multifund scheme began operations and a
new investment regime was created for each new type of fund. The
following limits are the most remarkable:
- Investment in public debt cannot surpass 50% of the lump sum of
all the funds' values.
- National variable income now has different maximum limits for each
type of fund:
a. Fund A and D: 15%
b. Fund B: 35%
c. Fund C: 45%
- Forbiddance to invest in structured products by the Conservative
and Programmed Retirement Fund.
- Established maximum and minimum limits for each type of fund in
national and foreign variable income:
a. Fund A and D: Max 20%, Min 0%
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b. Fund B: Max 45%, Min 20%
c. Fund C: Max 70%, Min 45%
- The uncovered position on foreign currency cannot be higher than

35% of the Moderate fund value, 10% of the Conservative fund value
nor 50% of the Great Risk fund value
- Decree 1242/2013, regarding collective investment schemes.
- Decree 816/2014. Created an alternative to invest in private equity
funds that invest 2/3 of the fund's value in infrastructure projects
under private-public associations.
- Decree 1385/2015 allowed investments in Private Equity Funds
issued, accepted, guaranteed or owned by the PFM, its subsidiaries,
HQs or affiliated companies if those investment vehicles allocate 2/3
of the fund's value in infrastructure projects as established under
Decree 816 of 2014
- Decree 765/2016. Modified certain investment classes of the
investment regime, including new kinds of allowed asset classes
such as REITs, ETFs linked to commodity and currency prices and
CIS that invest in real estate and hedge funds, also including the
investment limits of such investments. The Decree also restricted
investments in other asset classes.
- Decree 059/2018. Changed the investment regime of the
Programmed Retirement Fund, allowing the investment in REITs,
Collective Investment Schemes that invest in real estate and Private
Equity Funds, among others. It modified the calculation of the
Minimum Return for this type of fund, changing the accumulative
period and the procedure, as well. This Decree also allows that up to
30% of the fund's portfolio can be valued at amortized cost and the
rest at reasonable value.
- Decree 959/2018. Establshed the condition that when the new
members don't choose the type of fund they want to make their
quotations into, then the pension fund manager can invest all his/her
resources in the High Risk Fund until the member turns 47 years old
for men and 42 years old for women. At that age, the resources must
converge to the moderate fund on a 20% rate on a yearly basis until
the member becomes 50 years old for men and 45 years old for
women. This, with the purpose to keep the balance between risk and
returns, according to age and gender of members.
Costa Rica 2003: Introduction of risk perspective, private debt and foreign 2003: Issue: at least $500 million or equivalent in euros 2003: short term debt issued by financial institutions
investment associated with credit rating qualification. supervised by local supervision entity: 10%
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Government and Central Bank: 50%. Gradualism: 80% in 2003 up to Fund patrimony: at least $500 million or equivalent in
50% in 2009 euros. 2008: short term debt issued by financial institutions
Financial public sector: 20% supervised by local supervision entity: 15%
No financial public sector: 5% 2007: Issue: at least $250 million or equivalent in euros,
Private sector: 70%, according credit rating: AAA: 70%, AA: 50%, A: sterling pound, yen. 2013: Use of derivatives as hedge of pension funds. Options
20% are not allowed. There are requirements for the
Foreign investment: 25%. Allowed debt and ETF. Debt AAA: 25%, Fund patrimony: at least $100 million or equivalent in counterparties and financial intermediaries. In OTC markets
AA: 15%, A: 5% euros, sterling pound, yen. a single counterparty must have as a maximum, 5% of
By foreign issuer: 10%, AAA: 10%. AA: 5%, A: 3% Equity fund: 40% must not be concentrated in ten issuers. pension fund value.
2007:Other public sector:35% 2008: Local retail investment fund with 35% on foreign
Private sector:100%, debt:70% (according credit rating) assets must be account to foreign limit.
Foreign investment: 50% according credit rating

Structured notes: 5%
2008: Government and Central Bank: 50%, gradualism: 50%
reached in 2018
2009: 20% per each authorized issuance
2014:Government and Central Bank: 50%, gradualism: 50% reached
in 2019
Croatia 2014. Croatia adopted the Law by which was implemented IORP
Directive - Voluntary Pension Funds Act.
2018. – two changes of Voluntary Pension Funds Act :
1. Minor changes, do not include changes in investment rules and
limits
2. Changes as a part of overall pension system reform – only few
changes in investment rules and limits (applying from 1.1.2019).
2014. new Mandatory Pension Funds Act adopted. Three categories

of mandatory pension funds introduced:
Category A – Higher risk category with possibility of investing more
in equity markets.
Category B – Middle risk category.
Category C – Low risk category, any exposure toward equity
markets is forbidden.
2018. – two changes of Mandatory Pension Funds Act:
1. Minor changes of the Act, including minor changes in the
investment rules
2. Changes as a part of overall pension system reform – moderate
changes of investment rules and limits: loosed restrictions for
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investments in equity markets and infrastructure projects,
introduction of SME investments etc (applying from 1.1.2019).
Dominican 2007: Investment limits for instruments issued by the Central Bank: N/D
Republic 20% Dominican Pension funds are not allowed yet to invest in
2011: Increase in limit for Central Bank instruments: foreign instruments or markets.
50% (current)
2009: Investment limits for instruments issued by Multilateral entities
for the finance of local projects: 10%
Egypt Since the issuance of the law 54 for the year 1975 and until 2005 Egyptian pension funds are not allowed to invest in foreign None
investment of funds' money was as follows: instruments or markets.
First: at least 25% in securities guaranteed by the government
Second: 60% at most in some or all of the following fields:
(A) to own property in the country
(B) securities tradable on the stock market within 50% of the fund's
money
(C) fixed cash deposits in Egyptian banks
(D) granting loans to members in the light of the Statute
(E) any other investments with guaranteed returns is subject to the
Authority's approval
Third: deposit in a checking account in one bank shall not exceed
15% of the fund's money.
Since 2005, Law 54 for the year 1975 was amended, as mentioned
in table (1) above
In 2015 a new regulation was issued to re organize the investment

categories for pension funds, in summery it has been changed to be
like this :
Investment channel/pool Min. Max.
Banking Deposit & Saving certificates 0% 35%
Investment certificates, Gov. Bonds &
15% 70%
Treasury bills
Bonds & Securitization Bonds 0% 15%
Fixed income Funds & Investment funds. 0% 20%
Investment holding funds 0% 15%
Stocks 0% 20%
Real estate investment funds 0% 10%
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Real estate 0% 10%
Loans 0% 25%
Others investments 0% 5%
Gibraltar The assets shall be predominantly invested on regulated markets. Investment in derivative instruments shall be possible
Investment in assets which are not admitted to trading on a insofar as they contribute to a reduction of investment risks
regulated financial market must in any event be kept to prudent or facilitate efficient portfolio management. They must be
levels. valued on a prudent basis, taking into account the
underlying asset, and included in the valuation of the
institution's assets. The institution shall also avoid excessive
risk exposure to a single counterparty and to other
derivative operations.
Guernsey
Hong Kong, Legislative amendment in 2006: None Fund approval criteria issued in 2011: Approval of a new
China - Increased investment flexibility and removed some restrictions, e.g. constituent fund with an equity focus need to demonstrate
allowing acquisition of securities that are to be listed in the near the investment profile of the new fund is at least as diverse
future as a broadly based regional equity fund, such as an Asia
- Enhanced protection of scheme assets, e.g. improve the operations Pacific (ex Japan) equity fund.
of the spread requirement and clarifying the definition of “deposit” to
exclude structured products Added REITs listed outside of Hong Kong on selected
approved stock exchanges and some stapled securities as
In 2016: permissible investments in 2013.
Changed minimum credit rating requirement for permissible bonds
e.g. from BBB to BBB- by S&P and Baa2 to Baa3 by Moody’s. Clarified the use and permissibility of interim ratings for a
debt security in 2014.
In 2017:
Legislative amendment to require all approved trustees to provide in Added SFC authorized index funds with some exceptions as
each MPF scheme a highly standardized, globally diversified and permissible investments within the 10% of “Other Securities”
fee-controlled default investment strategy class in 2015.
Added a type of depository receipts as permissible

investment within the 10% of “Other Securities” class in
2017
Reclassified all investments in an SFC authorised REIT as

“higher risk assets” for the purpose of investment by
constituent funds under the default investment strategy in
2018.
India For NPS – Govt. Sector: - Investment outside India is not allowed. The following restrictions/filters/exposure norms would be
(i) Govt. Sec= up to 50% applicable to reduce concentration risks.
364
(a) Government securities
(b) Other securities the principal whereof and interest
whereon is fully and unconditionally guaranteed by the a) NPS investments have been restricted to 5% of the ‘paid
Central Government or any state government except up equity capital’* of all the sponsor group companies or 5%
those covered under (ii) (a) below of the total AUM under Equity exposure whichever is lower,
(c) Units of mutual funds set up as dedicated funds for in each respective scheme and 15% in the paid up equity
investment in government securities and regulated by capital of all the non-sponsor group companies or 15% of
Securities Exchange Board of India the total AUM under Equity exposure whichever is lower, in
Provided that the exposure to a mutual fund shall not be each respective scheme.
more than 5% of the total portfolio at any point of time. *‘Paid up share capital’: Paid up share capital means market
(ii) Debt securities up to 40% value of paid up and subscribed equity capital.
Debt securities with maturity of not less than three b) NPS investments have been restricted to 5% of the ‘net-
years tenure issued by Bodies Corporate including worth’# of all the sponsor group companies or 5% of the
banks and public financial institutions total AUM in debt securities (excluding Govt. securities)
Provided that at least 75% of the investment in this whichever is lower in each respective scheme and 10% of
category is made in instruments having an investment the net-worth of all the non-sponsor group companies or
grade rating from at least one credit rating agency 10% of the total AUM in debt securities (excluding Govt.
Term Deposit receipts of not less than one year securities) whichever is lower, in each respective scheme.
duration issued by scheduled commercial banks. #Net Worth: Net worth would comprise of Paid-up capital
Provided that the schedule commercial banks must plus Free Reserves including Share Premium but excluding
meet the conditions of: Revaluation Reserves, plus Investment Fluctuation Reserve
Continuous profitability for immediately preceding three and credit balance in Profit & Loss account, less debit
years balance in Profit and Loss account, Accumulated Losses
Maintaining a minimum Capital to Risk Weighted Assets and Intangible Assets.
Ratio of 9% c) Investment exposure to a single Industry has been
Having Net non-performing assets of not more than 2% restricted to 15% under all NPS Schemes by each Pension
of the net advances Fund Manager as per Level-5 of NIC classification.
Having a minimum net worth of not less than Rs. 200 d) If the PF makes investments in Index funds/ETF/Debt
crores. MF, in addition to the investments in Equity/Debt
C) rupees bonds having an outstanding maturity of at instruments, the exposure limits under such Index
least 3 years issued by institutions of the International funds/ETF/Debt MF should be considered for compliance of
Bank for Reconstruction and Development, the prescribed Industry Concentration, Sponsor/ Non
International Finance Corporation and the Asian Sponsor group norms.( For example, if on account of
Development Bank. investment in Index Funds/ ETFs/Debt MFs , if any of the
(iii) Money market instruments up to 5% concentration limits are being breached then further
Money market instruments including units of money investment should not be made in the respective Industry
market mutual funds. /non sponsor company/sponsor company.
(iv) Equity related instruments up to 15%
Shares of companies on which derivatives are available
in Bombay Stock Exchange of National Stock Exchange
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or equity linked schemes of mutual funds regulated by
the Securities and Exchange Board of India
For NPS – Pvt Sector: -
Equity: - 75%
Govt. securities = 100%
Corporate Bonds= 100%
Money Market= 5%
Asset class A = 5%
Asset class A is allowed only in case of private sector NPS. The

asset class A comprises of:-
(a) Commercial mortgage based Securities or Residential mortgage
based securities.
(b) Asset Backed Securities regulated by the Securities and
Exchange Board of India.
(c) Units issued by Real Estate Investment Trusts regulated by the
Securities and Exchange Board of India
(d) Units of Infrastructure Investment Trusts regulated by the
Securities and Exchange Board of India.
(e) Investment in SEBI Regulated ‘Alternative Investment Funds’
AIF (Category I and Category II only) as defined under the SEBI
(Alternative Investment Fund) regulations 2012.
(f) Basel III Tier-1 bonds issued by scheduled commercial banks
under RBI Guidelines.
Indonesia 2008: 2015: none
• loan was not allowed (previously allowed up to 20%) foreign direct investment was allowed up to 5%, subject to
• introduction to new instruments (i.e. asset-backed securities, approval of OJK (previously no foreign investment was Notes:
REITs, and derivative) allowed) Prior to 2013, private pension in Indonesia was regulated by
• investment limit in direct investment was reduced to 10% the ministry of finance; Since 2013, mandate to regulate and
(previously 20%) supervise private pension became the responsibility of OJK.
2015:
• introduction to new instruments (i.e. MTN and REPO)
• investment limit in direct investment was increased to 15%
• investment limit in property was increased to 20% (previously
15%)
Jamaica none none none
Jordan 2006: issue "Instructions of the Basis of Investing the Funds of the 2006: issue "Instructions of the Basis of Investing the 2006: issue "Instructions of the Basis of Investing the Funds
Voluntary private Insurance Company and Determining the Nature and the Location of Funds of the Insurance Company and Determining the of the Insurance Company and Determining the Nature and
366
pension plans the Insurance Company's Assets that Match its Insurance Nature and the Location of the Insurance Company's the Location of the Insurance Company's Assets that Match
provided by life Obligations" No. (1) of 2006. Assets that Match its Insurance Obligations" No. (1) of its Insurance Obligations" No. (1) of 2006.
insurance 2006.
companies 2010: amend above mentioned instructions; prohibit purchasing 2010: amend above mentioned instructions; prohibit
lands for purposes of reforming, developing, and subdivision unless investment in shares and bonds issued by the mother
through a subsidiary licensed to transact such business. company, and prohibit granting loans to the mother
company or sister companies.
Kazakhstan Unified accumulative pension fund:
2016:
˗ Investment limit for local banks reduced from 50% to 40%;
˗ Investment limit for local government bonds increased from 50% to
70%;
˗ Investment limit for local state-owned enterprises increased from
15% to 25%.
Kenya 2002; Amendment of the upper ceiling of the corporate bonds 2007; Guidelines amended to allow investment in Ugandan 2003: Small schemes with a fund value of less than Kshs 5
investment from 15% to 30%. and Tanzanian equities as domestic investments. million allowed to invest the entire scheme fund in
government securities.
2008: Amendment of the upper ceiling of the “any other asset“
investment from 5% to 10%. 2005: A scheme can now invest a maximum of 10% of fund
assets in quoted equity of the sponsor only. The maximum
2009: Amendment of the upper ceiling of the Kenya government investment in other assets of the sponsor remains at 3%.
securities investment from 70% to 90%.
2009: The threshold amount for which a scheme can invest
2015: introduction of Private Equity and Venture Capital (10%) 100 percent in Government Securities increased from Kshs
5 Million to Kshs 100 Million.
2016: The investment assets classes expanded to fourteen to
incorporate: Exchange traded derivatives contracts approved by the 2009: Schemes that receive statutory contributions required
capital markets (5%); listed real estate investment trusts to invest only in Government securities or infrastructure
incorporated in Kenya and approved by the Capital Markets bonds issued by public institutions.
Authority (30%);
2009: Infrastructure Bond issued by public institutions
included as an allowable investment asset under the
Government security category.
2015: introduction of per issue and per issuer limit (15%) but
does not apply to government securities
Kosovo In 2005 began to apply the limit of 5% Portfolio ceilings on
pension fund investment by broad asset classes. The
legislation was amended in 2012 but the limit did not
change.
367
Liechtenstein Reduction of real estate investment to 30% Introduction of limit of 10% on real estate outside of EEA Reduction of limits for equity, bonds issued by the private
and Switzerland sector by 5%
Malawi Not applicable, Pension legislation enacted in 2011 Not applicable, Pension legislation enacted in 2011 Not applicable, Pension legislation enacted in 2011
Maldives 2011: allowed ceiling limits for Domestic equity and Domestic debt
Restricted the MRPS in maintaining a minimum in cash and cash

equivalent investments (T-bills and FDs)
2013:
Set the maximum exposure to single investment for fixed income to
10 percent of anticipated value of the portfolio in 6 months’ time
For non-sovereign bonds, the maximum exposure to single

investment to less than 60 percent of that issue at the time of
purchase.
(The major change from 2011 to 2013 was that limits were specified
in more detail)
Malta Limit for not traded on a regulated market securities increased from No Changes No Changes
10% to 30% and for securities traded on regulated market 100%.
Mauritius Not Applicable Not Applicable Not Applicable
Namibia Equity portfolio limit reduced from 75% to 70% (01/01/2008 to Regulation 28 was amended in 2008 and 2014. Regulation
31/01/2009) and then to 65% (from 01/02/2009). 28 sets quantitative limits for investments in asset classes,
Unlisted shares and shares is development capital sector of Namibia including single issuer limits. A new category was
Stock exchange (limit was 5%). This was removed in 01/01/2008. introduced, requiring all pension plans to invest a minimum
All pension plans to invest a minimum of 1.75% and a maximum of of 1.75% of total assets in local unlisted (private)
3.5% of total assets in local unlisted companies, excluding property companies. Regulation 29 was introduced in 2009, which
companies. (As from 01/01/2014). complements regulation 28 and requires that all unlisted
Equity Portfolio limit increased from 65% to 75%. (As from investments be done by unlisted investment managers
01/01/2014). through Special Purpose Vehicles. These new entities have
to be approved by the Regulator.
All pension fund regulations have been revised effective 31

August 2018, and the “old” regulation 28 provisions are now
contained in regulations 12 and 13, while the “old” regulation
29 provisions are now contained in regulations 14 to 40.
Nigeria April 2017 nil April 2017
Introduction of Multi-Fund Structure for RSA Funds. Funds are i. Fund I and Fund II shall each have a minimum of
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structured demographically to fit the risk appetite of Contributors The 2.5% of pension fund assets under management
funds have different limits of exposure to variable income invested in alternative assets, namely
instruments. Infrastructure, Private Equity and Real Estate
(Housing).
The fund types are as follows:
Fund I (Below 50 years by choice): 75% of Portfolio Value ii. Increase in the number of rating requirements of
Fund II (Below 50 years by default): 55% of Portfolio Value debts Securities, from one rating to two ratings,
Fund III (50 years and above by default): 20% of Portfolio Value obtainable from Securities and Exchange
Fund IV (Retirees only): 10% of Portfolio Value Commission (SEC) registered/ recognized Credit
rating agencies.
iii. Amendment of the minimum requirements for

PE/Infrastructure projects to be located in Nigeria
with the aim of encouraging international expert
fund managers to invest in the fund. The minimum
was reduced from 75% to 60% of PE/infrastructure
projects.
iv. Introduction of new allowable securities i.e. newly

listed companies which evolved as a result of
mergers, acquisitions or other combination
arrangements; Non-Interest Capital Market
Products (NICMP), such as Sukuk and other
Shariah-compliant financial instruments; and the
Mortgage Bonds.
A minimum of 60% (reduced from 75%) of Infrastructure and

Private Equity Fund projects to be sited within Nigeria, to
qualify for pension fund investments.
North Macedonia 2008: for mandatory restriction limits in investments in investment 2008: for mandatory relax limits for investment abroad; 2009: for mandatory not allowed investments in bank
fund in R. Macedonia 5%; 2009:- for mandatory relax the number of countries for deposits in banks which are shareholder of the pension
2010:- for mandatory investment limit for bonds of municipality in R. investment to OECD country-members company;
Macedonia; - for mandatory relax limits for investment abroad to 30%
- for mandatory restriction limits for bank-deposits 60% to 30% 2010: for mandatory relax limits for investment abroad to
2010/2011: for mandatory and voluntary defining limits per nominal 50%
value and issuer in R. Macedonia 2010-2011: for mandatory and voluntary defining limits per
2011: for mandatory investment limit for open-end, closed-end and nominal value and issuer from EU and OECD country
private investment funds;
2011: for voluntary investment limit for bonds of municipality in R.
Macedonia
369
2012-2013: for mandatory and voluntary, investments in bonds and
other securities issued or guaranteed on domestic markets by the R.
Macedonia
Pakistan 1. Pension funds were launched in 2007 and investment policy for Regulations are silent on foreign investments (neither Same as table 1.
the funds was specified in the same year i.e. 2007. Since then, prohibit nor allow), however no pension fund manager has
revisions have been made on the following account:- approached SECP for investment in foreign assets. If a
• Investment in securities rated BBB or below prohibited request is received, SECP will consider it on merit.
• Portfolio duration of debt sub-fund reduced from 10 to 5 years.
• Deposits in banks rated below A+ (plus) prohibited.
• Per sector limits for equity sub-funds increased (due to sector
reclassification on the stock exchange).
• Investment parameters for investments in commodities and
commodity contract introduced in May 2013.
2. Pension fund managers directed not to charge sales load if the
investors approached their sales staff or offices themselves. (year
2015)
3. Fund managers shall not charge sales load on repeat investments
by a participant of a fund. (year 2015)
4. Fund managers to send acknowledgement letters and details of
allocation of invested funds to an investor (participant) within 48
hours of the realisation of funds. (year 2015)
5. Investment in securities rated A- to A+ capped at 25% out of that
total investment in securities rated A- not to exceed 10% of the fund
size (year 2016).
6. Islamic (Sharia’ compliant) fund allowed to invest in securities for
which the connected party of the pension fund manager has acted
as arranger, manager, adviser, consultant underwriter or sub-
underwriter but investment in such securities capped at 2.5% of the
fund or the issue, whichever is lower. (year 2016)
7. Limit for deposit in a single bank by a debt fund increased from
10% to 20% of the debt fund. (year 2016)
Papua New
Guinea
Peru 2008: Foreign investment limit: 2003:
-Investment Limit in securities issued by a Government, Central 2002 - 31/05/2003: 7.5% -Establishment of the Multi-fund System (implemented in
Bank, or international agency (whose long term bonds are not rated 01/06/2003 - 31/03/2004: 9% 2005).
“AAA”) or by a financial and non-financial issuer was modified from 01/04/2004 - 31/10/2006: 10.5% Fund Type 1
2% to 3%. 01/11/2006 - 31/01/2007: 12% Short Term Security : Max 40% x AUM
-Investment limit in a single foreign mutual fund changed from 2% to 01/02/2007 - 30/04/2007: 13.5% Fixed Income Security: Max 100% x AUM
5% (considering the sum of all Funds) 01/05/2007 - 31/12/2007: 15% Equity: Max 10% x AUM
370
-Investment limit based on the equity of a single mutual fund 01/01/2008 - 31/03/2008: 17% Hedging Derivatives Max 10% x AUM
increased from 10% to 35% (considering the sum of all Funds) 01/04/2008 - 30/09/2009: 20%
- Investment limit applicable to the issuance amount of fixed income 01/10/2009 - 26/01/2010: 22% Fund Type 2
securities went up from 10% to 35%. 21/01/2010 - 14/06/2010: 24% Short Term Security: Max 30% x AUM
15/06/2010 - 14/07/2010: 26% Fixed Income Security: Max 75% x AUM
15/07/2010 - 13/09/2010: 28% Equity: Max 45% x AUM
14/09/2010 - 20/01/2013: 30% Hedging Derivatives Max 10% x AUM
21/01/2013 - 10/02/2013: 32%
11/02/2013 - 07/04/2013: 34% Fund Type 3
08/04/2013 - 15/12/2013: 36% Short Term Security: Max 30% x AUM
16/12/2013 - 14/01/2014: 36.5% Fixed Income Security: Max 70% x AUM
15/01/2014 - 14/02/2014: 37% Equity: Max 80% x AUM
15/02/2014 - 14/03/2014: 37.5% Hedging Derivatives Max 20% x AUM
15/03/2014 - 14/04/2014: 38%
15/04/2014 - 14/05/2014: 38.5% 2008:
15/05/2014 - 14/06/2014: 39% -During 2008 the requirements to invest in equity,
15/06/2014 - 14/07/2014: 39.5% derivatives and mutual funds were modified. It included the
15/07/2014 - 30/09/2014: 40% adjustment of the methodology of the investment in
01/10/2014 - 31/10/2014: 40.5% derivatives (changed the criterion of notional value to market
01/11/2014 - 30/11/2014: 41% value) as well as of the percentages maximum of
01/12/2014 - 31/12/2014: 41.5% investment.
01/01/2015 - 31/04/2017: 42%
01/05/2017 – 31/05/2017: 43% -Furthermore, the derivatives were included within of the
01/06/2017 – 16/07/2017: 44% limit by issuer (local and foreign), in each asset category
17/07/2017 – 16/08/2017: 45% (depending of underlying asset). Also, the investment limits
17/08/2017 – 31/01/2018: 46% were modified, in the case of Fund Type 1 and 2 the sum of
01/02/2018 – 28/02/2018: 46.5% transactions in forwards contracts or swaps or futures, or
01/03/2018 – 31/03/2018: 47% options or guaranteed margins changed from 2% to 5%;
01/04/2018 – 30/04/2018: 47.5% while in the Fund Type 3 changed from 2% to 8%.
01/05/2018 – 31/05/2018: 48% Additionally, changed the methodology, before it was
01/06/2018 – 30/06/2018: 48.5% calculated in function of sum of all funds, nowadays it’s in
01/07/2018 – 31/07/2018: 49% function of value of fund.
01/08/2018 – 31/08/2018: 49.5%
01/09/2018 – 31/12/2018: 50% -In the case of mutual funds, we have changed the
requirement regarding to the minimum amount of AUM
(asset under management) from US$ 10 billion to US$ 500
million. In addition, the minimum expertise of the Fund
Manager changed from 10 years (in traditional and
alternative fund) to 5 years.
371
-Besides, we have modified the concentration limit to 35%
for investor of the mutual fund. Before, the investment limit
required that the five biggest investors could not have more
of the 50% of the mutual fund.
2009:
-We have approved the investment in Security Lending
(whose investment limit corresponds to 20% of each Fund)
2010:
- The investment limit for local Financial and Non-Financial
Issuer was modified. It included a limit according to the risk
profile of each type of Fund. Moreover, was incorporated the
limit to Exchange Traded Fund (considering the creation of
the EPU)
-Furthermore, was established a new global limit in
alternative investment Funds (3% of the sum of Funds,
whose risk profile permits these investments (like Fund
Type 2 and 3)
-Establishment of the foreign currency trading limit. It
established that the trades of buying and selling of each
foreign currency, under spot and forward modality,
performed by the funds managed by a single AFP will be:
• Max. 0.85% from the sum of Fund (in a day)
• Max. 1.95% from the sum of Fund (in the latest five days)
-Moreover, we have issued a document with precisions
respect to the direct and indirect investment of Pension
Funds in hedging derivatives.
2011:
-Establishment of new criteria that the AFP must follow for
issue the Investment Policy Statement.
2012:
By Law N° 29903 was approved the Reform of the Private
Pension System, however the Superintendence of Bank,
Insurance and Pension Funds shall issue final regulations to
implement this Law.
The main modifications with respect to investment limits are

related to:
(i) The establishment of the Fund Type 0
Fund Type 0
372
Short Term Security : Max 100% x VF
Fixed Income Security: Max 75% x VF
(ii) Moreover, this Law set a new asset category

denominated “Alternative Investment”, whose limits are as
follows:
Alternative Investment (included domestic and foreign)

• 15% Fund 2
• 20% Fund 3
2013:
Amendment of the foreign currency trading limit. It
established that the trades of buying and selling of each
foreign currency, under spot and forward modality,
performed by the funds managed by a single AFP will be:
• Max. 0.75% from the sum of Fund (in a day)
• Max. 1.75% from the sum of Fund (in the latest five days).
2014
Alternative Investment sublimits:
- Fund 2:
- Private Equity: 12%
- Venture Capital: 6%
- Real Estate: 6%
- Hedge Funds: 4%
- Commodity Funds: 4%
- Fund 3:
- Private Equity: 15%
- Venture Capital: 8%
- Real Estate: 8%
- Hedge Funds: 5%
- Commodity Funds: 4%
- If the fund establishes in its investment policy that it will
invest at least 80% in debt securities which finance
infrastructure projects, it will be considered as a fixed
income security.
New methodology for calculating limits on derivatives

through the use of the equivalent position (delta*notional).
373
Limit on derivatives used for hedge without previous

authorization of the SBS:
- Fund 1: 2%
- Fund 2: 4%
- Fund 3: 6%
Limits on derivatives used for efficient management of the

portfolio:
- For derivatives that seek to reduce or mitigate the relative
risk of the investment portfolio, the sum of the equivalent
positions of derivatives will be up:
- Fund 1: 2.5%.
- Fund 2: 5%
- Fund 3: 7.5%
- To reduce or mitigate the risks through derivatives whose
underlying asset has moderate base risk with the security or
factor whose risk will be reduced, and to generate profit with
a risk level which is consistent with the objective, risk profile
and diversification of the portfolio, the sum of the absolute
values of the net equivalent positions of derivatives will be
up:
- Fund 1: 0%.
- Fund 2: 2%
- Fund 3: 3%
Repeal of the limits on forwards, futures, swaps and options.
Limit on autonomy investment:

- Fund 1: 1%
- Fund 2: 1%
- Fund 3: 1%
2015
- Establishment of the methodology for the determination of
the amount corresponding to derivative contracts that
computes in the foreign limit.
2016
Modification of the following limits:
- Limit on derivatives used for hedge without previous
374
authorization of the SBS:
- Fund 1: 10%.
- Fund 2: 10%
- Fund 3: 10%
- Limits on derivatives used for efficient management:
o For derivatives that seek to reduce or mitigate the
relative risk of the investment portfolio, and to
reduce or mitigate the risks through derivatives
whose underlying asset has moderate base risk
with the security or factor whose risk will be
reduced, the sum of the net equivalent positions
of derivatives will be up:
- Fund 1: 4%.
- Fund 2: 7%
- Fund 3: 10%
o For derivatives that seek to generate profit with a

risk level which is consistent with the objective,
risk profile and diversification of the portfolio, the
sum of the absolute values of the net equivalent
positions of derivatives will be up:
- Fund 1: 0%.
- Fund 2: 2%
- Fund 3: 3%
- Limit on security lending:
- Fund 1: 30%.
- Fund 2: 30%
- Fund 3: 30%
- Structured instruments:
- Fund 1: 3%.
- Fund 2: 4%
- Fund 3: 5%
All the previous limits were updated in the corresponding
tables.
Romania 2009: regulation regarding investment of pension funds asset was No specific limits on foreign investments. The limits are the 2011: regulation regarding investment of pension funds
introduced. same with the limits on each assets class. asset has been modified.
The regulation aims to establish portfolio ceilings on asset classes.
2011: regulation regarding investment of pension funds asset was

modified.
375
At the beginning of 2012 a new regulation regarding the investments
of private pension funds was enforced (Norm no 11/2011 regarding
the investment and valuation of private pension funds’ assets). It
changed the previous regulations by changing some limits and
introducing new asset classes in which pension funds’ assets could
be invested, such as ETFs. It also removed the possibility of
investing in certain assets such as commodities or infrastructure.
Since 2013 the limit regarding investment in private equity has been
applied only for voluntary pension funds, while private pension funds
are not allowed to perform such investments.
Starting 2015, voluntary pension funds are allowed to invest in
interest rate derivatives.
Russian 2007: New rules regulating investments in voluntary pillar were 2007: restrictions in investments abroad in voluntary pillar 2009, Mandatory pillar: some quantitative restrictions for
Federation introduced were relaxed investments in single issuer/issue were relaxed.
2009, Mandatory pillar: restrictions on the investments of the State 2009: bonds of international financial organisations and 2013, Mandatory pillar: quantitative restrictions for
asset manager (default option) were relaxed. Besides Russia deposits denominated in foreign currencies were allowed in investments have not changed. Some requirements set by
government and mortgage bonds it can now invest in Regional mandatory pillar the government concerning qualitative requirements for
government bonds, bonds of other Russian issuers, bonds of investments have been changed.
international financial organisations, place deposits with lending 2014: On December 25, 2014, the Bank of Russia adopted
institutions Regulation No.451-P "On establishment of additional
Limit for deposits and balances in accounts with lending institutions restrictions on the investment of pension savings of a
was lifted from 20 to 80% private pension fund providing mandatory pension
insurance, additional requirements to credit institutions, in
which pension funds and savings for housing for military
personnel are placed, as well as additional requirements
that management companies are obliged to observe within
the period of the contract of trust management of pension
savings. " This Regulation came into force in February
2015.
2017: On March 1, 2017 the Bank of Russia adopted
Regulation No. 580-P, which replaced Regulation No.451-P
and introduced additional portfolio requirements concerning
REPO deals and derivative instruments.
Also a single limit for investment in a single issuer and its
affiliated legal entities was established - 15% of the fund’s
investment portfolio value.
2018: for private pension funds concentration limits for
equity of a single issuer should be gradually narrowed to 5%
by July 1, 2021; for securities of one legal entity or a group
of related entities – to 10% by July 1, 2021.
376
Serbia 2006. Rules regulating voluntary pension funds, including investment 2006. Rules regulating foreign investment of voluntary Not applicable.
rules were introduced. pension funds were introduced (total investment of fund
2007. Limit for investment in equity was changed from 30% to 50%. assets abroad under all grounds may not
2009. Changes in qualitative conditions that must be met by equity in exceed 10% of fund assets).
which VPF assets could be invested. 2011. Investments in investment units of open investment
2010. Changes in qualitative conditions that must be met by funds were introduced.
corporate bonds in which VPF assets could be invested.
2011. Changes in following limits:
- securities issued by autonomous provinces and local government
units in the Republic of Serbia from 20% to 50% or 100% (with the
guarantee of the Republic of Serbia),
- corporate bonds from 20% to 50% or 100% (with the guarantee of
the Republic of Serbia),
- mortgage bonds from 30% to 50%,
- equity from 50% to 40%,
- depositary receipts from 20% to 10%,
- money deposits from 5% to 35%,
- real estate from 15% to 5%,
- investment units of open investment funds from 0% to 5%.
Seychelles
South Africa - addition limits on real estate Additional allowance for 5% investment in Africa
- specific allowance for the classification and investment in islamic
- classification and limitation of private equity and hedge funds
- allowance for the registrar to prescribe conditions and limits in
respect of derivative instruments
Suriname 2003: Ceilings in percentages of pension provision 2003: Ceilings in percentages of pension provision:
Local - Bonds: 20%
- Mortgages: 35% - Term deposits <1yr: 5%
- Real estate: 25% - Term deposits ≥1yr: 5%
- Government securities: 20% - Saving accounts: 5%
- Private securities: 10%
- Treasury bills: 20% 2007: Maximum ceilings in percentages of total assets:
- Term deposits <1yr: 30% - Total of securities (Government and private; local and
- Term deposits ≥1yr: 50% foreign): max. 60%
- Current account with the employer: 10% - Treasury bills: 60%
- Gold certificates: 20% - Mutual funds: 20%
- Personal loans: 10% - Investments to which the Bank has no objections: 10%
- Other investments: 10%
377
2007: Maximum ceilings in percentages of total assets
Local
- Mortgages:50%
- Real estate:50%
- Securities (total of Government and private; local and foreign):
60%
- Term deposits: 100%
- Current account with the employer: 10%
- Gold certificates: 50%
- Personal loans: 50%
- Mutual funds: 20%
- Investments to which the Bank has no objections: 10%
Tanzania Social security schemes investments guidelines of 2012 were According to the social security schemes investment -
revised in 2015 wherein portfolio ceilings have been stipulated as guidelines 2015, Off-shore investment by the schemes
percentage of total assets of the scheme; shall be in accordance with, and governed by the Foreign
Government Securities (Treasury Bills, Treasury Exchange Act and Regulations, Directives and Rules
Bonds.) 20 -70 issued by the Bank from time to time. Currently offshore
Direct Loans to the Government 10 investments are only allowed for EAC region
Commercial Paper, Promissory Notes and
Corporate Bonds 20
of which Unlisted Corporate Debt 5
Real Estate 30
of which Non-Income Earning Property 5
Ordinary and Preference Shares 20
of which Unquoted Equity 5
Infrastructure Investments 25
Fixed Deposits, Time Deposits and Certificates of
Deposits with Licensed Banks and Financial
Institutions. 35
Investment in Licensed Collective Investment
Schemes 30
Loans to Corporate and Cooperative Societies 10
Others -subject to prior approval by the Bank
Thailand Major changes in investment restrictions of provident fund were Major changes in investment restrictions of provident fund Major changes in investment restrictions of provident fund
made In 2016 with the aim of providing greater flexibilities and were made In 2016 with the aim of providing greater were made In 2016 with the aim of providing greater
making the regulations in line with international standards. flexibilities and making the regulations in line with flexibilities and making the regulations in line with
international standards. international standards.
Trinidad and 2007: 50% limit where the pension plan is less than 150% funded No changes No changes
Tobago (as certified by the actuaries); 70% limit where the pension plan is
over 150% funded (as certified by the actuaries)
378
Uganda
Ukraine 2006: It is forbidden to:
1) invest in securities credit rating of which is not determined by the
Rating Agency or credit rating of which meets the speculative grade
according to the National Scale Rating, determined by the legislation
of Ukraine;
2) to purchase the securities of the issuers, credit rating of which is
not defined by authorized Rating Agency or credit rating of which
meets the speculative grade according to the National Scale Rating,
determined by the legislation of Ukraine;
3) Keep funds in bank deposits and in saving certificates of banks,
credit rating of which is not determined by the Rating Agency or
credit rating of which meets the speculative grade according to the
National Scale Rating, determined by the legislation of Ukraine.
Since 01.01.2011
It is prohibited:
1) to purchase or additionally invest in mortgage bonds and
mortgage certificates more than 40% of total value of the retirement
assets;
2) to purchase or additionally invest in precious metals, including the
opening of current and deposit accounts in precious metals in banks
more than 10% of total value of the retirement assets;
3) to purchase or additionally invest in other assets, not restricted by
the legislation of Ukraine, but not mentioned in this article on the
value of more than 10% of the total value of the retirement assets.
Since 01.10.2012
It is prohibited:
1) to purchase or additionally invest in mortgage bonds on the value

of more than 40% of total value of the retirement assets;
2) to purchase or additionally invest in other assets, that can be
evaluated at market value and are not restricted by the legislation of
Ukraine, but not mentioned in this article, including shares acquired
as a result of the transformation of a legal entity in the joint-stock
company, whose corporate rights were in the retirement fund assets
- more than 5% of total value of the retirement assets;
3) To purchase or additionally invest in securities of one issuer more
than 5 percent of the total value of assets (other than securities,
379
repayment and income guaranteed by the Cabinet of Ministers of
Ukraine).
The limits, set by this paragraph shall not be applied during six
months in case of additional investment of retirement assets in
shares of the corresponding issuer in case of additional issue of
shares, provided that the share of the pension fund in the share
capital of the relevant issuer is remained, and the shares of the
corresponding issuer included in pension fund assets;
Uruguay 2007 2007- 2014
- Inclusion of derivatives for hedging purposes with limit of 10%.
-Inclusion of bonds issued by multilateral international Limit on investment funds administered by the same
2010 credit organisations with limit of 15% manager from 10% to 12.5%
-Government plus Central Bank bonds and bills limit reduced from
90% to 75% 2010 Limit on financial trusts administered by the same firm from
-Inclusion of Financial Trusts within the private sector bonds -Inclusion of AA- and better rated sovereign risk within the 10% to 12.5%
category with a comprehensive limit incremented from 25% to 50% same category of multilateral international credit
-Deposits in banks limit incremented from 15% to 30% organisations, the limit remaining in 15%
2014
- Previous pension fund divided in Fund A (under 55 years old) and
Fund B (over 55 years old) Fund B basically is not allowed to be
invested in private sector or foreign assets and maturity of
instruments must be under five years
Zambia -- Not less than 2.5% of its fund size in cash, bank balances and -- Not more than 30% of its fund size outside the Republic
money market instruments. as may be authorised by the Minister under the Act.
- Not less than 5% of its fund size in corporate bonds. - No investment in property outside the Republic
- Not more than 30% of its fund size in property (property classified
earlier on).
- Not less than 5% but not more than 70% of its fund size in listed
and quoted entities.
- Not less than 2.5% of the fund size in government securities.
- Not more than 2.5% of the fund size in collective investment
schemes.
- Not more than 10% of the fund size in any policy with a registered
insurer.
380

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ANNUAL SURVEY OF

Table 1: Portfolio Limits on Pension Fund Investment in Selected Asset Categories 7

Table 3.a: Investment limits in single issuer/issue by asset categories 149

COUNTRIES INCLUDED IN THE SURVEY

4. The survey contains five different tables:

 Table 3.b contains other quantitative restrictions classified by type of regulation.

Bills and bonds Bonds issued Retail Private

Other / Comments: Other / Other / Other / Other / Other /

Infrastructure Fund global

Russian Bonds of Cash in roubles

The aggregate of securities

The local investments could

Other / Other / Other / Other / Other / Other / Other /

Other / Other / Other / Other / Other /

Other / Other / Other / Other / Other / Other / Other /

Other / Other / Other / Other / Other / Other / Other / Other /

Other / Other / Other / Other / Other / Other / Other / Other /

Other / Other / Other / Other / Other / Other / Other /

Other / Other / Other / Other /

Bulgaria - Supplementary mandatory 5% 5% 100% 5% 5% 0% 0% 5% -

Bulgaria - Supplementary voluntary pension 5% 5% 100% 5% 10% 0% 0% 5% -

Costa Rica Private Pensions System: 5% 0% 10% 10% 5% 0% 0% Each pension

Other / Other / Other / Other / Other / Other /

Other / Other / Other /

Value of the issue of

Bonds of one issuer or a

Bonds of one issuer

Bonds of one issuer

25% of total portfolio for

(2) issuer limit

Other / Other / Other /

Other quantitative rules

c) securities issued or fully

e) a fund or derivative that

f) where the value of the

Administrators that currently

- Mutual aid associations

Limit for authorized

Limit for authorized

Limit for authorized

Maximum of 20% of the

Maximum of 20% of the

Maximum of 20% of the

Maximum of 20% of the

Maximum of 20% of the

Maximum of 20% of the

For the aforementioned asset

2. Decree 765 of 2016 also

3. Decree 059 of 2018 allowed

For the aforementioned asset

2. Decree 765 of 2016 also

3. Decree 059 of 2018 allowed

For the aforementioned asset

2. Decree 765 of 2016 also

3. Decree 059 of 2018 allowed

For the aforementioned asset

2. Decree 765 of 2016 also

3. Decree 059 of 2018 allowed

3) 15%/20% of the closed-

4) 10%/15% of the non-

5) 5%/7% of the regulatory

3) 15%/20% of the closed-

4) 10%/15% of the non-

5) 5%/7% of the regulatory