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THE

BEECHAMBER

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NEWS

RULES WHEN CALCULATING MANDATED INVESTMENTS

The following rules apply when calculating Mandated Investments for Statement 100, Ownership.



"Mandated Investments means any investments made by or through any third party regulated by legislation on behalf of the actual owner of the funds, pursuant to a mandate given by the owner to a third party, which mandate is governed by that legislation. Some examples of domestic mandated investments and the portions of those investments subject to the Exclusion Principle are contained in Annexe 100A attached to statement 100."


Furthermore, as per clause 3.7 of Statement 100 of the Amended Codes of Good Practice, the following is stated:


"3.7 Mandated Investments


3.7.1 When determining Ownership in a Measured Entity, Rights of Ownership of Mandated Investments may be excluded.


3.7.2 The maximum percentage of the Ownership of any Measured Entity that may be so excluded is 40%.


3.7.3 A Measured Entity electing not to exclude Mandated Investments when it is entitled to do so may either treat all of that Ownership as non-Black or obtain a competent person's report estimating the extent of Black rights of Ownership measurable in the Measured Entity and originating from that Mandated Investments.


3.7.4 A Measured Entity cannot selectively include or exclude Mandated Investments and therefore an election to exclude one Mandated Investment is an election to exclude all Mandated Investments and visa versa.


3.7.5 A Measured Entity applying the Exclusion Principle to Mandated Investments cannot benefit from the Modified Flow-Through Principle."


The Ownership Support Desk can assist members with any queries relating to the Ownership Scorecard.





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