Asset class classification: differences between asset classes

Dear Sir or Madam,

We are still in the process of classifying our assets according to the table 5.2 provided in the FI guidance document. It seems, the asset classes mentioned are not mutually exclusive.

Can you please provide more guidance on classification of following strategies into the right product/asset class?

  1. Commercial Mortgage Loan
    These could be classified both as “Corporate Loan: Commercial Real Estate” or as “Private Debt”. Can you please provide further background (and examples) to clarify the difference between these two categories?
  2. Infrastructure Debt
    These can be classified either as “Private Debt”, “Project Finance” or “Corporate Loan”. Can you please provide further background (and examples) to clarify the difference between these three categories?
  3. Direct Lending
    These could be classified both as “Corporate Lending: SME Loans” or as “Private Debt”. Can you please provide further background (and examples) to clarify the difference between these two categories?

Further, does the FI have to provide argumentation why we would potentially allocate investments in optional asset classes?

Many thanks for your feedback.

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