Exam (elaborations)
IFSE - CIFC - Unit 8 Correct Answers Latest Version 2024
- Course
- Institution
IFSE - CIFC - Unit 8 Correct Answers Latest Version 2024
[Show more]
Content preview
IFSE - CIFC - Unit 8 Correct AnswersLatest Version 2024
Mutual Fund Corporation Answer: - investors are shareholders
- board of directors governs the fund
- board of directors are elected by the shareholders at the fund's annual general meeting
Mutual Fund Trust Answer: - investors are unit-holders
- no board of directors. Governed by trusts or trustees
- unit-holders don't have authority to appoint trustees
Mutual Funds Complex Answer: - mutual fund manager
- portfolio manager
- custodian
- distributor
- transfer agent
- independent review committee
Investment fund manager Answer: - aka mutual fund company
- looks at the fund's objectives and selects a portfolio manager with related experience
- name is disclosed in the prospectus
Portfolio manager Answer: - responsible for the investment decisions of a fund, including
purchasing and selling securities and determining the mix of assets
- receives management fees
, - goal is to generate the best rate of return for the fund's investors while operating with the fund's
objectives
- name disclosed in prospectus
Custodian Answer: - responsible for safekeeping the cash and securities belonging to the fund
- responsible for holding income earned by the fund until it is reinvested or distributed to fund investors
- their functions must be kept separate from those of the fund management company
- must be either a chartered bank, trust company with equity no less than $10M, or affiliate of the first 2
Distributor Answer: - the sales and marketing arm of the mutual fund company responsible for
bringing assets to the fund through sales and investors
- sells units to investors and transmits redemption requests to the investment fund management
company
- as a dealing rep, you are part of the distribution network
Transfer agent Answer: - this role is usually performed by a trust company
- either will be the fund management company, custodian, or third party
- name disclosed on prospectus
- has records of unit holders and transfers of ownership
Independent review committee Answer: - NI 81-107 requires all publicly offered mutual funds to
have one
- role is to oversee potential conflict of interest decisions involving the manager of a fund
Net Asset Value Per Unit (NAVPU) Answer: - represents the price at which units are bought and sold
on a particular day
- fund manager's responsibility to calculate it, usually daily
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Schoolflix. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
83637 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now