What is the minimum investment requirement for feeder funds in target funds?

The minimum investment requirement for feeder funds in target funds is set at 90% of the fund. This percentage is designed to ensure that a significant majority of the feeder fund's assets are allocated towards the target fund, aligning with the objective of the feeder fund to invest primarily in the designated target fund.

This requirement not only facilitates a meaningful investment in the target but also provides investors with the exposure they seek by ensuring that most of their investment is directly linked to the performance of the target fund. By stipulating a 90% minimum, the regulatory framework aims to protect investor interests by promoting consistency and reducing the potential for dilution of investment focus that could occur if the feeder fund retained a large portion of its assets elsewhere.