Article 6
Criteria to determine the percentage referred to in Article 18(2), first subparagraph, point (d), of Regulation (EU) 2015/760
When determining the percentage referred to in Article 18(2), first subparagraph, point (d), of Regulation (EU) 2015/760, the manager of an ELTIF shall take into account all of the following elements:
the ELTIF’s liquidity profile, assets and liabilities, risks of liquidity mismatches, and expected inflows and outflows;
the life-cycle of the assets of the ELTIF, the life of the ELTIF, the overall stability of the investment strategy of the ELTIF throughout its life and the potential market events that may affect the ELTIF;
the planned and expected frequency of redemptions of the ELTIF and the risks of dilution effects of such redemptions for investors;
the availability and nature of existing liquidity management tools;
the financial performance of the ELTIF, including the free cash flows and the ELTIF’s balance sheet;
potential market circumstances and conditions that would affect the ELTIF when the percentage is set, and the extent to which the units or shares of the ELTIF can be redeemed in such market circumstances and conditions;
the availability of reliable information on the valuation of the ELTIF’s assets;
the ELTIF’s stability, investment strategy, and portfolio composition throughout the life-cycle of the ELTIF after a redemptions;
other relevant information, based on the circumstances of the ELTIF and its assets and investment strategy, that are necessary to determine that percentage in stressed market conditions and normal market conditions.