Unlike earlier iterations published, the final RTS do not contain any strict requirements with respect to the duration of the minimum holding period of an ELTIF.
To determine the maximum size of redemption gate at a given redemption date under Annex I and II of the RTS, ELTIF managers may apply a sum of UCITS eligible assets at the redemption date and the expected cash flow forecasted on a prudent basis over 12 months.
It will be interesting to see if, as is currently expected, indeed the adoption of the RTS will accelerate the uptake of the ELTIF 2.0 semi-liquid products.
To read the full article, please visit the Delano magazine website.
Read more on the topic!
The RTS clarify various aspects with respect to ELTIF 2.0., including, but not limited to the (i) minimum holding period, (ii) minimum notice period, (iii) liquidity management tools (“LMTs”), (iv) redemption gates and (v) liquidity pocket provisions that are applicable to open-ended European long-term investment funds (“ELTIFs”). Have a look at the key changes in this detailed article.
