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					                                                                                                                              1
                                      INVESTMENT RESTRICTIONS APPLICABLE TO PENSION FUNDS

                                             WORLD PENSION ASSOCIATION (WPA)




              INVESTMENT
            RESTRICTIONS TO
             PENSION FUNDS
                                                          APRIL 2002




0c651693-5a4c-4914-9eac-1a4d4b99b46e.doc                                                    Worls Pension Association, april 2002
                                                                                                                              2
                                      INVESTMENT RESTRICTIONS APPLICABLE TO PENSION FUNDS




                                             EUROPE


0c651693-5a4c-4914-9eac-1a4d4b99b46e.doc                                                    Worls Pension Association, april 2002
                                                                                                                                                                                         3
                                       INVESTMENT RESTRICTIONS APPLICABLE TO PENSION FUNDS


                                                                                                                            Minimum %            Maximum %
                         Country                                        Characteristics                                                         same
                                                                                                                                Total                  total
                                                                                                                                               issuer
                    Austria                 Equities, options & convertible bonds                                                                                50
                                            foreign equities                                                                                                     30
                                                            1
                    (Only assets held       foreign assets                                                                                                       50
                    in Pensionskassen)      real estate                                                                                                          20
                                            loans to sponsoring company                                                                                          10
                                            in EMU fixed interest securities-                                                     35
                              2                                                                        3
                    Belgium                 bonds issued by states or firms not belonging to zone A                                                              10
                                            mutual investment funds not subject to legislation of an EU Member
                                                                                                                                                                 10
                                            State (Directive 85/611/EEC)
                                            non-quoted values                                                                                                    10
                                            real estate certificates                                                                               5
                                            options, futures and other derivatives not used for hedging                                                          5
                                            non-guaranteed loans                                                                                   1             5
                                            direct real estate in one value                                                                       10
                                            equities, bonds from one issuer and/or loans to one borrower                                           5
                                            equities, bonds, loans issued by sponsoring employer (self-investment)                                15
                              4
                    Denmark                 so-called “High Risk assets” (see annex 1)                                                                           50
                                            unlisted certificates (shares etc.) and other securities which are listed
                                                                                                                                                                 10
                                            in countries not belonging to Zone A (included in the 50% above)
                                            total technical reserves which can be invested in one single
                                            issuer/debtor remains in place,                                                                        2
                                            excl. mortgage credit institutes                                                                                     40
                                            currency matching rule (of which 50% can be in EURO or in an EU
                                                                                                                                  80
                                            currency)
                                            No restrictions


1
  Non-Euro currencies and bearer bonds, foreign currency deposits in Austrian banks and cash held in foreign currencies
2
  min. technical reserves = minimum reserves + solvency ratio + 60% of difference between plan reduction and actuarial reduction in case of early retirement
3
  According to directive 89/647/EEC, the following countries are included in zone A: the countries of the EU, Hungary, Iceland, Norway, Switzerland, Turkey, Czech, the U.S., Canada,
Mexico, Japan, Australia, New-Zealand and Saudi-Arabia
4
  changed end 1994 i.e. application of Third Life Insurance Directive in Danish Regulation
0c651693-5a4c-4914-9eac-1a4d4b99b46e.doc                                                                                                               Worls Pension Association, april 2002
                                                                                                                                                                           4
                                      INVESTMENT RESTRICTIONS APPLICABLE TO PENSION FUNDS


                                                                                                                      Minimum %    Maximum %
                                                                      Characteristics
                        Country                                                                                                   Same
                                                                                                                        Total                   Total
                                                                                                                                  issuer
                   Finland:                quoted shares and bonds of companies domiciled in an EEA state
                                                                                                                                                   50
                                           units in investment funds that invest their assets in shares and bonds
                   Main restrictions       Bonds traded on a regulated market in an EEA state or issued by credit
                   of the Decree on        institutions (excl. deposit banks) or corporations licensed or domiciled                                50
                   the coverage of         in an EEA state
                   the pension             units in an individual investment fund                                                   25
                   liabilities of          Real property and shares in real estate corporations in an EEA state                                    40
                   pension                 real property and shares and holdings in real estate corporations,
                   foundations                                                                                                                     70
                                           mortgages on real estate in EEA
                   issued on               property                                                                                                25
                   23/12/1998              one single investment target                                                             15
                                           Units in an interest funds                                                                          No limit
                                           Currency matching                                                             80
                   France: Insured
                                           Fall under the restrictions of Life insurance Directive
                   schemes
                   France: AGIRC &         Since 1994 the legal restrictions on investments have been abolished.
                   ARRCO                   However there is a set of internal rules, which apply to all of the
                                           member pension schemes.
                   Germany:                EU equities (including Germany)                                                                         30
                   Pensionskasse           non EU equities                                                                                          6
                                           stock of any company                                                                     10
                                           EU bonds                                                                                                 6
                                           non-EU bonds                                                                                             5
                                           real estate (EU-wide)                                                                                   25
                                           deposits                                                                                                10




0c651693-5a4c-4914-9eac-1a4d4b99b46e.doc                                                                                                 Worls Pension Association, april 2002
                                                                                                                                                                          5
                                      INVESTMENT RESTRICTIONS APPLICABLE TO PENSION FUNDS


                                                                                                                     Minimum %    Maximum %
                                                                    Characteristics                                              Same
                        Country                                                                                        Total                   Total
                                                                                                                                 issuer
                          Greece                         NO INFORMATION available – will be updated
                          Iceland                                        foreign investments                                                      50
                                                                  Foreign and domestic equities                                                   50
                                                                          unlisted securities                                                     10
                                                                   one single investment target                                    10
                                                                       Stock of a single firm                                      15
                                                               Shares in any mutual or equity fund                                 25
                         Ireland                              NO RESTRICTIONS ( see annex 2)
                           Italy                              NO INFORMATION – will be updated
                      Luxembourg                               NO RESTRICTIONS (see annex 3)
                     The Netherlands       self-invested in the employing company – (no self-investment possible                   5
                                                                    for industry pension funds)
                                                   self-invested in the employing company (additional max.)                         5
                                           total assets of the pension fund that can be invested in the sponsoring                 10
                                                                               company
                                                The restrictions relating to self-investment can be waived, if the
                                              Insurance Chamber agrees, in situations where the employer has
                                               taken on new financial obligations due to an increase in pension
                                                            benefits relating to years of past service.
                          Norway                                                Equities                                                          35
                                                                   Shares in a single company                                      15
                    Results still need                                         property                                                           60
                       updating




0c651693-5a4c-4914-9eac-1a4d4b99b46e.doc                                                                                                Worls Pension Association, april 2002
                                                                                                                                                                            6
                                       INVESTMENT RESTRICTIONS APPLICABLE TO PENSION FUNDS


                                                                                                                       Minimum %     Maximum %
                                                                     Characteristics                                               Same
                        Country                                                                                          Total             Total
                                                                                                                                   issuer
                                                                                                                                      5
                    Portugal               equity or loans issued by the same company                                                5
                    in force since         equity or loans (including bank deposits) issued by the same group of                     20
                    January 31, 1998       companies
                                           property investments being used by the Fund Sponsor or an associate                                      25
                                           Any one property investment                                                               10
                                           (meaning limit to a group of real estate investment, that by its location
                                           or functional dependency, can be considered as only one investment)
                                                                                       6
                                           Stocks denominated in foreign currencies                                                                 20
                                           Direct equity holdings                                                                                   50
                                           Unquoted direct equity holdings                                                                           3
                                           Land and buildings                                                                                       45
                                           Land, property, property investment funds, mortgage loans, securities                                    50
                                           bonds issued by companies whose incomes are derived from property
                                           Bank term deposits and deposit certificates                                                              30
                                           Bonds and commercial paper, other than those issued by the                                               60
                                           Portuguese State
                                           Open or close ended unitised/pooled equity, bonds and mixed funds                                        30
                                           (excluding property related) quoted in or outside Portugal
                                           Mortgage loans                                                                                           25
                    Spain                  Sum of equities, bonds, properties, credits with mortgages, banking            90
                                           deposits listed or negotiated in organised markets
                                           Banking deposits                                                                                         15
                                           Securities issued or guaranteed by the same entity                                         5
                                           Sum of securities issued or guaranteed by the same entity and credits                     10
                                           granted or guaranteed by it.
                                           Sum of securities issued or guaranteed by entities belonging to the                       10
                                           same group and credits granted or guaranteed by it.
                                           Cash                                                                            1
                                           No restrictions in equities or foreign investments

5
    in some circumstances the limit may be increased to 10%
6
    EURO denominated assets, whether or not quoted on the Lisbon Stock Exchange or issued by foreign companies are NOT treated as foreign assets.
0c651693-5a4c-4914-9eac-1a4d4b99b46e.doc                                                                                                  Worls Pension Association, april 2002
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                                        INVESTMENT RESTRICTIONS APPLICABLE TO PENSION FUNDS


                                                                                         Minimum %     Maximum %
                                                                       Characteristics               Same
                          Country                                                          Total             Total
                                                                                                     issuer
                      Sweden “bigger        Equities                                                                  25
                      friendly societies”   Property                                                                  25
                      (“understödsfören-    Fixed income                                                             100
                              7
                      ingar”)               Currency matching                               80
                      Sweden: “small        Equties                                                                   0
                      friendly societies”   Property                                                                 100
                      (“understödsfören-    Fixed income                                                             100
                      ingar”)               Currency matching                               100
                      Switzerland           NO RESTRICTIONS (see annex 4)
                      U.K.                  Self-investment                                                           5
                                            Any one unit trust                                         10
                                            Unit trusts run by any one manager                                        25




7
    Same restrictions as for life assurance companies (Third life directive)
0c651693-5a4c-4914-9eac-1a4d4b99b46e.doc                                                                    Worls Pension Association, april 2002
                                                                                                                                                                              8
                                      INVESTMENT RESTRICTIONS APPLICABLE TO PENSION FUNDS


Annex 1
A. The so-called “high risk assets” are the following:

1)    UCITS (EU Directive 85/611).
2)    Other bonds and loans listed of public stock exchanges of Zone A (= OECD); (other than those considered “low-risk” and also belonging to Zone A such as
      government bonds; listed bonds issued by international organisations: mortgage-credit bonds as well as other bonds issued in Denmark or similar bonds issued in
      Zone A; land and buildings and/or loans secured by registered mortgages thereon; loans secured on the company’s own life insurance policies up to their surrender
      value).
3)    Shares and other certificates of capital participations listed on the public stock exchange in Zone A.
4)    Land and buildings not considered “low-risk” (see 2).

B. Previously a minimum of 60% had to be invested in “low-risk assets”; this has now been replaced by a maximum of 50% in so-called “high-risk assets” as defined in the
table.

Annex 2

Theoretically, pension funds invested through an insurance company are subject to the Third Life Directive. However, these restrictions apply to the total business of the
Insurance Companies and they are able to organise their affairs in such a way that in practice the restrictions do not apply to the pension fund portfolios.

Annex 3
In the current Luxembourg pensions law, there are no quantitative investment restrictions, but a “Prudent Person” approach is requested. The investment policy has to be
accepted and is supervised by the CSF (Commission de Surveillance du Secteur Financier).

Annex 4
Since April 2000 the new Swiss pensions law does no longer incorporate any quantitative investment restrictions, but a “Prudent Person” approach is requested.




0c651693-5a4c-4914-9eac-1a4d4b99b46e.doc                                                                                                    Worls Pension Association, april 2002
                                                                                                                              9
                                      INVESTMENT RESTRICTIONS APPLICABLE TO PENSION FUNDS




        SOUTH & CENTRAL
           AMERICA

0c651693-5a4c-4914-9eac-1a4d4b99b46e.doc                                                    Worls Pension Association, april 2002
                                                                                                                                                                                          10
                                        INVESTMENT RESTRICTIONS APPLICABLE TO PENSION FUNDS


                                                                                                                              Minimum %             Maximum %
                         Country                                         Characteristics                                                           same
                                                                                                                                   Total                  total
                                                                                                                                                  issuer
                    Argentina                Equities                                                                                                              70
                                             Public bonds                                                                                                          80
                                             Corporate bonds                                                                                                       40
                                             Real estate certificates                                                                                              40
                                             Mutual funds                                                                                                          30
                                             Options and futures                                                                                                   10
                                             Fixed term deposits in financial institutions                                                                         30
                                                                                   8
                                             Securities issued by foreign entities                                                                                 20
                    Chile                    Public bonds                                                                                                          50
                                             Term deposits and securites issued or guaranteed by financial
                                                                                                                                                                   50
                                             institutions
                                                                                           9
                                             Bonds issued by public or private companies                                                                           45
                                             real estate certificates                                                                                              50
                                             Equities                                                                                                              40
                                             Mutual funds                                                                                            5             25
                                                                                   10
                                             Securities issued by foreign entities                                                                                 16
                    Colombia                 Public bonds and other securities issued by public entities                                                           80
                                             Term deposits and securites issued or guaranteed by financial
                                                          11                                                                                                       42
                                             institutions
                                             Real estate certificates                                                                                              40
                                             Corporate Bonds                                                                                                       30
                                             Mutual funds                                                                                                           5
                                                                       12
                                             International investments                                                                                             10
                                                   13
                                             Equity                                                                                                                30

8
  10% in securities issued by foreign states or international public bodies and 10% in securities issued by foreign companies.
9
  Of which, up to 10% may be invested in convertible bonds issued by public or private companies
10
   The maximum permitted in international equity is 10%, while investments in international bonds may reach 16%.
11
   10% in securities issued by the Investments Guaranteed Fund + 30% in fixed income securities issued or guaranteed by financial institutions + 2% in oversight deposits.
12
   Includes bonds issued or guarantedd by foreign goverments, central banks and comercial or investment banks, mutual funds that invest in bonds and index funds.
13
   Equity with a high or medium liquidity. The maximum permitted in not very liquid or illiquid equity is 5%.
0c651693-5a4c-4914-9eac-1a4d4b99b46e.doc                                                                                                                 Worls Pension Association, april 2002
                                                                                                                                                                      11
                                      INVESTMENT RESTRICTIONS APPLICABLE TO PENSION FUNDS



                                                                                                                  Minimum %    Maximum %
                                                                   Characteristics
                        Country                                                                                               Same
                                                                                                                    Total                   Total
                                                                                                                              issuer
                       El Salvador                          Securities issued by public entitites                                             100
                                                     Corporate bonds issued by domestic companies                                              40
                                                            units of domestic investment funds                                                 20
                                             Equity and convertible bonds issued by domestic companies                                         20
                                                       Securities backed by real property guarante                                             40
                                           Certificates of deposits and securities issued by domestic financial
                                                                                                                                               40
                                                                         institutions
                                                            Securities issued by public entities                                              40
                                           Deposits and bonds issued or guaranteed by financial institutions.                   10            55
                                                             Mortage certificates or securities                                               40
                                                                      Corporate bonds                                                         40
                           Perú
                                                                           Equity                                               15            35
                                                                      Investment funds                                          12            12
                                                                 International investments                                                    7,5
                                                          Operations of hedging of financial risks.                                            5
                         Uruguay                                National Government Bonds                                                     65
                                                                        Term deposits                                                         30
                                                    Securities issued by public and private companies                                         25
                                                                  Real Estate certificates                                                    30




0c651693-5a4c-4914-9eac-1a4d4b99b46e.doc                                                                                             Worls Pension Association, april 2002
                                                                                                                             12
                                      INVESTMENT RESTRICTIONS APPLICABLE TO PENSION FUNDS




                           OTHERS OECD
                            COUNTRIES


0c651693-5a4c-4914-9eac-1a4d4b99b46e.doc                                                    Worls Pension Association, april 2002
                                                                                                                                                                                                 13
                                          INVESTMENT RESTRICTIONS APPLICABLE TO PENSION FUNDS


                                                                                                                                    Minimum %             Maximum %
                                                                            Characteristics                                                             Same
                           Country                                                                                                      Total                   Total
                                                                                                                                                        issuer
                                                                                                                                                                              14
                     Canada                    Foreign investments                                                                                                       30
                                               Securities issued by a non Government issuer                                                                10
                                               Voting securities                                                                                                          30
                                               PRUDENT MAN RULE
                                                                                                                                                                              15
                     USA                       PRUDENT MAN RULE                                                                                                          30
                                               SPECIFIC INVESTMENT RULES for:
                                                   Employee Stock Ownership Plan (ESOP):
                                                                                                                                               17
                                                                - Stock of the sponsoring company                                         50
                                                             16
                                                   DC plan (including 401K):
                                                   DB plan:
                                                                - Stock of the sponsoring company                                                          10
                                                                - Real Estate                                                                                             10
                                 18
                     Australia                 Stock of the sponsoring company                                                                              5
                                               No restrictions regarding the investment in different asset classes




14
   30% of book value of portfolio.
15
   30% of book value of portfolio.
16
   These plans may allow the participants to invest directly their account balances. In this case, the plan must provide at least three investment options that represents different levels of risk.
17
   Except, for participants who are age 50 or older and for those who have more than 15 years of service.
18
   It does not exist rules which direct or restrict investment into asset classes.
0c651693-5a4c-4914-9eac-1a4d4b99b46e.doc                                                                                                                        Worls Pension Association, april 2002

				
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