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ESMA_QA_2476
Topic
14/03/2025
Subject Matter
Redemption policy
Question
Can an ELTIF use borrowings, as referred to in Article 16(1) of the ELTIF Regulation, to meet redemptions?

Can confirmed but undrawn credit lines be considered as “expected cash flows”, as referred to in Article 5(6) of the ELTIF Delegated Regulation, and thus be taken into account in the maximum limit referred to in Article 18(2), point (d) of the ELTIF Regulation?

What are the criteria to assess the “prudent” nature of the expected cash flows forecasted […] over 12 months, as referred to in Article 5(6) of the ELTIF Delegated Regulation that could be added to the maximum size of redemption at a given redemption date?

For private debt ELTIFs, what elements should be taken into account in the abovementioned "expected cash flows"?
ESMA_QA_2475
Topic
14/03/2025
Subject Matter
Redemption policy
Question
Should the ELTIF comply with the minimum liquid asset requirements referred to in Annex II of the Delegated Regulation at all times, and if not, which types of “necessary measures”, as referred to in Article 5(7) of the ELTIF Delegated Regulation, and within which time frame, are expected to be implemented by the ELTIF manager?
ESMA_QA_2473
Topic
14/03/2025
Subject Matter
Redemption policy
Question
Should the minimum percentage of liquid assets referred to in Annex II of the ELTIF Delegated Regulation solely comprise, as per Article 5(5) point b) of the ELTIF Delegated Regulation, the UCITS eligible assets, or should it also include, as it is the case for the purpose of the denominator of the percentage referred to in Article 18(2) point (d), the expected cash flow, forecasted on a prudent basis over 12 months?
ESMA_QA_2472
Topic
14/03/2025
Subject Matter
Redemption policy
Question
Pursuant to Article 23(4) point (d) of the ELTIF Regulation, shall the ELTIF disclose in its rules or instruments of incorporation a minimum (and not only a maximum, as per the requirements of Article 18(2) point d) of the ELTIF Regulation) percentage of liquid assets referred to in article 9(1) point (b) to be used for redemption requests?