efficient portfolio management

(in COLL and DISC) techniques and instruments which relate to transferable securities and approved money-market instruments and which fulfil the following criteria:

1. (a) they are economically appropriate in that they are realised in a cost effective way;

2. (b) they are entered into for one or more of the following specific aims:

   1. (i) reduction of risk;
   2. (ii) reduction of cost;
   3. (iii) generation of additional capital or income for the scheme with a risk level which is consistent with the risk profile of the scheme and the risk diversification rules laid down in COLL.

   [Note: article 11 of the UCITS eligible assets Directive]