How to determine the Investor Concentration Percentage by Retail Investors and by Professional Clients?

Concentration Percentage by Retail investors as a percentage of NAV (AIF Question 120)

A retail client is simply defined as being not a professional client, see Directive 2004/39/EC Article 4:

  • “Retail client” means a client who is not a professional client.

So we need to know what a professional client is in order to determine this field.

Concentration Percentage by Professional clients as a percentage of NAV (AIF Question 119)

Concentration Percentage by Professional clients [119] is not entered on our templates, it is calculated by our system as:

  • 100% - Concentration Percentage by Retail investors [120].

According to Directive 2004/39/EC the following entities are considered professional clients. Please see the directive for the full details.

  • Credit institutions.
  • Investment firms.
  • Other authorised or regulated financial institutions.
  • Insurance companies.
  • Collective investment schemes and management companies of such schemes.
  • Pension funds and management companies of such funds.
  • Commodity and commodity derivatives dealers.
  • Local firms as defined in Article 3(1)(p) of Directive 2006/49/EC.
  • Other institutional investors.
  • Large undertakings meeting two of the following size requirements on a company basis: balance sheet total: EUR 20 000 000, net turnover: EUR 40 000 000, own funds: EUR 2 000 000.
  • National and regional governments, public bodies that manage public debt, Central Banks, international and supranational institutions such as the World Bank, the IMF, the ECB, the EIB and other similar international organisations.
  • Other institutional investors whose main activity is to invest in financial instruments, including entities dedicated to the securitisation of assets or other financing transactions.

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