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P&I (CLASS 3) / PART VII / RULE 40
INVESTMENT
40.1 Investment Management
Subject to the approval of the Board the funds of this Class of the Association may be invested by the Managers or by any investment manager or firm of brokers or agents appointed by the Managers. The Board may from time to time and at any time lay down such guidelines for the investment of the funds of the Association as it shall think fit.
40.2 Investment Media
Such investments may be made by means of the purchase of such stocks, shares, bonds, debentures or other securities or the purchase of such currencies, commodities or other real or personal property, or by means of being deposited in such accounts as the Managers may think fit, or by such other method as the Board may approve.
40.3 Pooling of Funds
Unless the Board otherwise decides the funds standing to the credit of all Policy Years and, subject to the provisions of Rule 39.2 Overspill Reserve, of any reserve or account of this Class, shall be pooled and invested as one fund.
40.4 Gains and Losses
When funds are so pooled any dividends, interest, or accruals of interest and any realised or unrealised investment gains or losses, arising on the pooled funds shall be credited or debited, as the case may be, to the income and expenditure account of the Association in the financial year in which such gains or losses arise.
40.4.1 Any such gains may be used to meet:
40.4.1.1 the claims, expenses, losses and other outgoings (whether incurred, accrued or anticipated) which in the opinion of the Board necessarily and properly fall upon this Class of the Association; or
40.4.1.2 such transfers to reserves or provisions as the Board may deem it expedient to make, including transfers to reserves and provisions in respect of any deficiency which has occurred or which may be likely to occur in respect of any Closed Policy Year as the Board thinks fit.
40.4.2 Any such losses shall be treated as an expense of the Association and may be made up either by a transfer from any investment reserve, the General Reserve or by Calls under Rule 10.1 Mutual Insurance.