Content of the investment policy (Article 3.1.1.4.2. Decree 2555 of 2010)

The investment policy of a FIC must be clearly defined in the fund's regulations, in the framework regulations and in the fund's prospectus. This policy should be understandable to investors and the general public (Article 3.1.1.4.1. Decree 2555 of 2010), and should contain at a minimum:

• Investment Plan, which must include the purpose of the fund, the list of acceptable assets, portfolio diversification criteria, and the minimum and maximum limits by type of asset and issuer.
• Parameters for the management of operations in the money market.
• Policy on deposits in checking or savings accounts.
• Background risk profile.
• Risk management policy.

In the event of extraordinary conditions, temporary adjustments to the investment policy may be made, always informing investors and the SFC of the measures adopted and their justification (Article 3.1.1.4.3. Decree 2555 of 2010).

Acceptable Assets to Invest (Article 3.1.1.4.4. Decree 2555 of 2010)

FICs may invest in a variety of assets, including, but not limited to:

• Securities registered or not in the RNVE.
• Documents representing monetary obligations.
• Securities issued by foreign banks or by foreign companies with shares in recognized stock exchanges.
• Bonds issued by multilateral organizations, foreign governments or public entities.
• Shares in foreign investment funds or funds that emulate national or foreign indices.
• Foreign currency with the limitations of the exchange regime.
• Real Estate, Real Estate Projects & Commodities
• Derivatives for investment purposes.

Repo, Simultaneous Operations and Temporary Transfers (Article 3.1.1.4.5. Decree 2555 of 2010)

Management companies may carry out active and active repo operations, as well as temporary transfer of securities, which must be in line with the fund's investment plan and not exceed 30% of the fund's total assets.

The securities received in these operations may only be transferred to fulfill the planned operation.

Transactions may not have as counterparty, directly or indirectly, related entities of the collective investment fund managing society, or of the external manager if there is one.

Derivatives Trading (Article 3.1.1.4.6. Decree 2555 of 2010)

Management companies may engage in derivatives transactions, including those for investment purposes, provided that they comply with the terms of the fund's regulations. These transactions must comply with the clearing and settlement criteria established by the SFC and must be subject to risk management and disclosure criteria.