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IFSE - CIFC - Unit 8 Exam with complete solutions 2024_2025.
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IFSE - CIFC - Unit 8 Exam with complete solutions 2024_2025.
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IFSE - CIFC - Unit 8 Exam with completesolutions 2024/2025
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
Valuation date - ANSWER-- date on which earnings are allocated to an investor's
account
- requests must be received by 4 pm Eastern time
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