Library / Page 1 of 35 MIDSTREAM PETROLEUM HOST COMMUNITIES DEVELOPMENT TRUST REGULATIONS, 2024
Page 1 of 35 MIDSTREAM PETROLEUM HOST COMMUNITIES DEVELOPMENT TRUST REGULATIONS, 2024

Page 26 of 35
 
 
 
 
Page 26 of 35 
 
(2) Money standing to the credit of the reserve fund shall be invested 
by the Fund Manager with the objectives of safety and 
maintenance of fair returns on amounts invested. 
 
(3) The Fund Manager shall only invest in allowable instruments 
prescribed under the relevant Regulation on Investment of Pension 
Fund Assets subject to the quality ratings set out therein.   
 
(4) The funds in the reserve fund shall not be invested in unlisted 
securities by the fund manager, where the investment -  
(a) 
is in early or start up stage of the target company, or may 
qualify as seed capital; 
(b) 
shall cause the value of the fund so invested in the securities 
of the unlisted company to exceed 5% of the net asset value of the 
reserve fund; or 
(c) 
is in a company where the board, management, or affiliate 
of the fund manager or licensee jointly or severally have more than 
5% equity stake. 
 
(5) Fund managers shall not invest funds in the reserve fund in any 
instruments that are subject to any type of prohibitions or limitations on 
sale or purchase of such investment save for close-ended funds. 
 
(6) Fund managers shall ensure that they maintain a diversified 
portfolio of allowable instruments and avoid undue concentration in 
one of the allowable instruments.   
(7) The proportion of reserve fund invested in a particular allowable 
instrument shall not exceed 5 % of the amount in the reserve fund. 
 
(8) Fund managers shall not apply funds in the Reserve Fund by way of 
loans or credit or as collateral for any loan taken by any person 
including the licensee. 
 
(9) Interests derived from any investments shall be dealt with as 
directed by the Board of Trustees subject to section 246 of the Act. 
 
(10) 
In accordance with section 256 of the Act, interests, 
dividends, profits, investments and other incomes accruable to the 
reserve fund shall be tax exempted.