International Funds (eBook)

A Practical Guide

Catherine Turner (Autor)

eBook Download: PDF

2004 | 1. Auflage
240 Seiten
Elsevier Science (Verlag)
978-0-08-049158-5 (ISBN)

Infos

'International Funds' will provide readers with:
*A greater understanding of the benefits and limitations of funds to both retail and institutional investors
*An easy-to-read, yet technically comprehensive, insight into fund structures
*An overview of the variety of legal structures, regulatory categories and investment profiles available
*A detailed understanding of the practical aspects of fund valuation and administration, and the role of the various practitioners
*A view of the future of the international funds industry in the light of changing markets, regulation and investor appetite

* An easy-to-read, yet technically comprehensive, insight into fund structures
* Provides an overview of the variety of legal structures, regulatory categories and investment profiles available
* Presents a view of the future of the international funds industry in the light of changing markets, regulation and investor appetite'

Inhalt

Cover 1
Copyright Page 5
Contents 6
Introduction 10
Part 1: Principles of Fund Management 12
Chapter 1. The concept of collective investment schemes 14
1.1 What is a FUND? 14
1.2 Capital structures 18
1.3 Legal structures 19
1.4 The size of the funds universe 19
1.5 Origins: the first collective investment vehicles and the emergence of a funds industry 20
1.6 Purposes, advantages and disadvantages of collective investment schemes 22
1.7 The market for funds – institutional, retail, specialist 27
1.8 The role of funds as a node between the investing public and the capital markets 28
1.9 Listed funds 31
1.10 Fund categorizations 35
1.11 Matching investors’ objectives 36
Chapter 2. Different fund structures 50
2.1 The different capital structures: open- vs. closed-ended schemes 50
2.2 Legal structures: corporate, trust-based, partnership and contractual vehicles 54
2.3 ‘Onshore’ vs. ‘offshore’ vs. ‘international’ 60
2.4 ‘Umbrella fund’ structures 61
2.5 Protected Cell Companies 62
2.6 Feeder funds 63
2.7 Funds-of-funds 66
2.8 Exchange traded funds 67
Chapter 3. The regulatory environment 69
3.1 Recap: the regulatory definition of a fund 69
3.2 Regulation of schemes, and applicable exemptions 70
3.3 Regime for functionaries, and applicable exemptions 72
3.4 Compensation schemes 73
3.5 Advantages and disadvantages of regulated status 74
3.6 Applying for a license, and applicable exemptions 76
3.7 ‘Fit and proper’ status – sponsors, service providers 78
3.8 Ongoing supervision 80
3.9 Investor due diligence requirements 81
3.10 Recognition regimes for foreign schemes 85
3.11 The rationale for investment restrictions 86
3.12 Typical restrictions on securities funds 87
3.13 Typical restrictions on money market funds 91
3.14 Restrictions on feeder funds 91
3.15 Restrictions on funds-of-funds 92
3.16 Restrictions on futures and options funds (FOFs) 92
3.17 Restrictions on geared futures and options funds (GFOFs) 93
3.18 Restrictions on property funds 93
3.19 Umbrella funds 94
3.20 Investment trusts 94
3.21 ‘Offshore funds’ 98
3.22 Hedge funds 99
Part 2: Practical Aspects of Fund Management 102
Chapter 4. Overview of the operation of a fund 104
4.1 The fund sponsor 104
4.2 The fund manager 105
4.3 Managed managers 108
4.4 The Authorized Corporate Director 109
4.5 The investment adviser or manager 110
4.6 The directors of the fund company (OEICs and investment trusts, not unit trusts) 111
4.7 Fund administrators 112
4.8 Registrar 114
4.9 The trustee (unit trusts) 114
4.10 The custodian (OEICs, investment trusts, not unit trusts) 118
4.11 The regulator 119
4.12 Distributors 120
4.13 Auditors 120
4.14 Legal adviser 122
4.15 Brokers 122
4.16 Insurers 123
4.17 Putting it all together 124
4.18 Tax considerations and the allocation of responsibilities 125
Chapter 5. Valuations and pricing 127
5.1 Open-ended schemes – first principles of pricing 127
5.2 Why are valuations carried out? 128
5.3 What are the various elements of a valuation? 128
5.4 Recap: the basis of NAV-based pricing 129
5.5 Typical dual pricing models 130
5.6 Simple practical example of a dual pricing valuation 132
5.7 Dual priced funds and ‘spreads’ 132
5.8 Calculating yields 133
5.9 Adjustments to the spread on dual priced funds: pricing on a ‘Bid’ or an ‘Offer’ basis 133
5.10 Typical offshore pricing models 135
5.11 Simple practical example of an offshore fund 137
5.12 Adjustments to single prices: dilution levy (also known as ‘Dealing Charge’) 138
5.13 Valuation checks 139
5.14 Consequences of over- and under-pricing 140
5.15 Forward and historic pricing 141
5.16 Valuation patterns for funds with income and accumulation units/shares 142
5.17 Pricing of closed-ended funds (e.g. investment trusts) 143
5.18 Publication of pricing data 143
Chapter 6. Documentation 145
6.1 Introduction 145
6.2 Trust Deed (unit trusts only) 146
6.3 Declaration of trust 149
6.4 Memorandum and Articles of Association (OEICs, not unit trusts) 150
6.5 Partnership agreement (funds established as partnerships) 152
6.6 The management agreement 152
6.7 Other agreements 153
6.8 The offering documents and scheme particulars 153
6.9 Key features document 155
6.10 The fund’s license/authorization 156
6.11 Application/registration details form 156
6.12 Contract note 158
6.13 Cancellation forms 158
6.14 Unit/share certificates 159
6.15 Form of renunciation 160
6.16 Report and accounts/financial statements 160
6.17 Income distribution voucher/warrant 163
6.18 Grant of probate 163
6.19 Power of attorney 164
Chapter 7. The dealing desk 165
7.1 Communications with existing and prospective investors 165
7.2 Placing investor deals 166
7.3 Other dealing room activities 169
7.4 Registration 172
7.5 The manager’s box 173
7.6 Pricing errors 174
7.7 Large deals and their impact 175
7.8 Equalization and performance fees 177
Chapter 8. Income distributions 181
8.1 Nature and source of income 181
8.2 Income distribution mechanics 182
8.3 Price of shares/units 182
8.4 Dividend/distribution re-investment 183
8.5 How often are distributions made? 183
8.6 Responsibility for the calculation and payment of distributions 183
8.7 Calculation of distributions 184
Part 3: Markets and Developments 186
Chapter 9. Domestic funds regimes 188
9.1 The UK market 188
9.2 The US market 194
9.3 The European market 198
Chapter 10. Distribution regimes: selling foreign schemes into regulated jurisdictions 204
10.1 The regulatory environment: recognition of foreign schemes 204
10.2 Overseas schemes: regulatory distribution issues in the United Kingdom 205
10.3 Facilities to be maintained by foreign schemes recognized in the United Kingdom 208
10.4 The UK distributor status regime 209
Chapter 11. A comparison of some international funds centres 211
11.1 Bermuda 211
11.2 The British Virgin Islands 214
11.3 Cayman 214
11.4 Dublin 215
11.5 Guernsey 216
11.6 Isle of Man 218
11.7 Luxembourg 221
Chapter 12. Miscellaneous 223
12.1 Insurance issues: when things go wrong 223
12.2 Some useful checklists 225
Index 238

Produkt-Details

• Erscheint lt. Verlag: 29.10.2004
• Sprache: englisch
• Themenwelt: Sachbuch/Ratgeber ► Beruf / Finanzen / Recht / Wirtschaft ► Geld / Bank / Börse
• Themenwelt: Recht / Steuern ► Wirtschaftsrecht
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Unternehmensführung / Management
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Finanzwissenschaft
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Makroökonomie
• ISBN-10: 0-08-049158-8 / 0080491588
• ISBN-13: 978-0-08-049158-5 / 9780080491585