SEC regulations prevent investment firms from investing more than 5% of its total assets in a single investment company or 3% of the total outstanding voting securities of another investment company. The regulations also prevent an investment company from investing more than 10% of its total assets in two or more investment companies.”
“The HealthShares ETFs, a series of 20 exchange-traded funds, will be the first in XShares’ families of ETFs to be exempt from the investing limit set by Section 12(d)1,” said Jeffrey L. Feldman, founder and chairman of XShares Group. “The relief will allow mutual funds greater flexibility in investing in HealthShares necessary to achieve their asset allocation and investment strategies.”