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IFSE - CIFC - Unit 8 Correct Answers Latest Version 2024
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IFSE - CIFC - Unit 8 Correct Answers Latest Version 2024
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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
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