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Document published and regularly updated by a fund provider with the key information on an investment fund (not subject to any statutory publication obligation).
An investment strategy used by hedge funds: Exploiting valuation differences between different money market instruments and/or bonds of the same, of a comparable or another borrower.
Investment fund based on a collective investment contract (Fund Contract) in which the fund management company undertakes to provide the investor with a stake in the investment fund in proportion to the units/shares acquired by the said investor, and to manage this fund in accordance with the provisions of the fund regulations and the law. The custodian bank is party to the fund contract in accordance with the tasks conferred upon it by the law and the fund regulations. The investment fund itself has no legal personality.
The fund management company can issue new units/shares at the net asset value at any time, and investors are in principle entitled to redeem units/shares at the net asset value at any time. In buying units/shares, the investor acquires a claim against the fund management company in respect of a participation in the assets and income of the investment fund.
Normal procedure under which subscription/redemption orders received up to a certain cut-off time are settled at a price calculated after the order is placed. This enables the fund company to prevent transactions in units/shares of their investment fund that could be detrimental to the interests of investors already invested in or remaining invested in the fund.
The sum of all the assets belonging to an investment fund (bank deposits, bonds, stocks, real estate) valued at market prices, minus the fund's liabilities.
Company that represents the interests of the investors and bears responsibility for this, specifically:
Define aspects such as the rights and obligations of the investor and parties involved in the investment fund, the conditions pertaining to the issue and redemption of units/shares, and the investment policy of the investment fund
Country in which the fund company and custodian bank of an investment fund are resident and to which jurisdiction they are subject. This also defines the home country of the investment fund.
Special type of investment funds that invest their assets in alternative investments and which in some cases pursue different strategies. The performance of the units/shares generally depends on factors other than those pertinent for traditional investments, and can therefore be subject to stronger fluctuations.
Typical alternative investment instruments:
Regulates in the fund's country of domicile the foundation, administration and distribution of investment funds, the approval and authorization processes for commencing investment fund activities, and for investment funds and their supervision, as well as the distribution of foreign investment funds. Its primary purpose is to protect investors. The pertinent legislation in Switzerland comprises the Federal Act on Collective Investment Schemes (CISA) of 23 June 2006, the Ordinance on Collective Investment Schemes (CISO) of 22 November 2006, and the Ordinance of the Swiss Financial Market Supervisory Authority on Collective Investment Schemes (CISO-FINMA) of 21 December 2006.
Manages the fund in accordance with the provisions of the fund contract independently and in its own name, but for the account of the investors. It decides on the investment of the fund's assets, keeps the accounts of the fund, decides on the issue and valuation of units, and exercises all rights associated with the fund. As a rule, the fund management company delegates some of the duties incumbent on it, in particular the investment of the fund's assets or certain administrative tasks; however, it remains responsible for the proper execution of the delegated tasks.
An investment fund that invests its assets in other investment funds (target funds).
Company that acts as the primary provider of an investment fund; in most cases this is taken to be the fund management company, promoter or a primary distributor.
Assessment of a fund by an independent agency. Unlike rankings that are based solely on quantitative data (above all performance and volatility), ratings also take into account qualitative criteria (evaluation of the investment strategy and asset management).
Define aspects such as the rights and obligations of the investor and parties involved in the investment fund, the conditions pertaining to the issue and redemption of units/shares, and the investment policy of the investment fund