A fund cannot buy what its investment policy statement does not permit. Widening the permitted band is therefore a decision taken years before the position appears, and it is rarely reversed on a drawdown.
The stated rationale
Correlation behaviour during recent stress episodes and concern about the concentration of reserve assets in a small number of issuers.
The practical effect
A slow, price-insensitive bid that shows up in the statistics long after it has done its work in the market.
