Funds

Alternative Investment funds

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  • Created by: Fez_xx
  • Created on: 03-01-19 15:53
What is a fund?
A 'pool of money' that is managed by a manager with the goal of increasing in value
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Funds are usually classified by...
Their structure, their strategy and their type
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What is a 'close ended' fund?
A fund that has a fixed number of shares which remains constant
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What is an 'open ended' fund?
e.g. unit trust or OEIC where new shares are created when new money is invested while existing shares are cancelled when money is disinvested
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Alternative funds have traditionally levied on investors a fee structure comprising of?
2.0% performance fee, 20% performance fee
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Traditional funds have traditionally levied on investors a fee structure comprising of?
1.0% management fee, 10% performance fee
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What is the purpose of a prospectus?
To protect the fund manager
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A passive investment fund is one which...
Tracks a particular investment index
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What is the difference in terms of role for a custodian and a prime broker?
Custodian safe-keeps the funds's cash/assets while the prime broker acts as a bank that services the funds dealing in shares etc
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What us a close-ended investment fund?
collective investment model based on issuing a fixed number of shares which are not redeemable from the fund
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An investor looking to ensure a fund has a good track record of compliance with regulatory rules is likely to look for...
A suitably qualified Chief Compliance Officer
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A pairs trading strategy is one in which a fund will seek...?
Highly correlated stocks that are temporarily diverging in price
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A long/short strategy is one where...?
You
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Other cards in this set

Card 2

Front

Funds are usually classified by...

Back

Their structure, their strategy and their type

Card 3

Front

What is a 'close ended' fund?

Back

Preview of the front of card 3

Card 4

Front

What is an 'open ended' fund?

Back

Preview of the front of card 4

Card 5

Front

Alternative funds have traditionally levied on investors a fee structure comprising of?

Back

Preview of the front of card 5
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