After section 7 of the Principal Act , the following section is inserted in Part 2:

7A.     Power of Board to establish subfunds

(1)  The Board may establish and maintain within the Fund such subfunds as, in the opinion of the Board, are necessary or convenient for the administration of this Act or the Trust Deed but must ensure that, in respect of each subfund –

(a) there are separately identifiable assets and beneficiaries; and

(b) each beneficiary of that subfund has an interest only in the assets of that subfund and not in the other assets of the Fund; and

(c) there is no transfer of assets, benefits or money between that subfund and another subfund unless there is a transfer of a corresponding beneficial interest; and

(d) the insurance and administration costs levied on that subfund are attributable only to that subfund.

(2)  Without limiting subsection (1) , the Board may establish separate asset portfolios for each subfund, comprising assets of the Fund allocated by the Board, all of which are to be invested for the purposes of the Fund.

(3)  For the purpose of investment and allocating the investment earnings of the Fund or for related purposes, the Board –

(a) may treat 2 or more subfunds as one subfund; and

(b) may treat one or more subfunds as being invested as part of one or more asset portfolios; and

(c) must, if so required, determine the parts of each subfund which are to be treated as being invested in one or more asset portfolios.