Section 1: UCITS.

I. – A UCITS with a formula is a UCITS which meets the following two conditions: 1° It is managed passively and its management objective is to reach, at the end of a given period, an amount determined by the mechanical application of a predefined calculation formula, with reference to financial market indicators or financial instruments, and, where applicable, to distribute the remuneration predefined in the regulatory documents; 2° It…

I. – A UCITS may not borrow. It may, however, acquire currencies by means of cross-currency loans. II. – By way of derogation from I, a UCITS may borrow provided that such borrowings : 1° Are used on a temporary basis and represent no more than 10% of its assets; or 2° enable the acquisition of real estate necessary for the direct pursuit of its activities and, in the case…