[The Auditors Institute Ltd]

Hello SP

Thanks for the question.

Yes, a further acquisition of units can occur, but as you make reference, further units would count towards the IHA limit to the extent that that UT does not comply with Regulations 13.22C and 13.22D (that is, the UT has no gearing/borrowings and meets all the other requirements in these regulations).

In the scenario where the UT satisfies the requirements of Regulations 13.22C and 13.22D, additional units would not count towards the 5% IHA limit.

It should be possible to subscribe for additional units by issuing them against the balance of the loan account.   The challenge will be ensuring that the units are issued at their market value.

Best regards

The Auditors Institute