Based on the ISO definition of an investment fund specifying that an investment fund is a collective investment scheme based on a diversified portfolio of assets that is managed by a professional fund manager, the content of module 6 focuses on:
Main characteristics of investment funds (based on ISO 10962)
Types of investment funds - Traditional “long only” funds (in Europe, UCITS funds), hedge funds, private equity funds, real estate funds, exchange-traded funds, funds of funds, pension funds, others
Attributes of investment funds - Open end/closed end funds, liquid assets/illiquid assets, asset type, level of regulation, incorporated/unincorporated, domicile, active/passive management, alternative management
Pricing of investment funds - NAV, negotiated price (ETFs)
Factors influencing the performance of investment funds - Price of the underlying assets, costs/revenues of the fund, leverage, performance of the fund manager, market situation
Costs associated with transactions and services involving investment funds - Sales charges (subscription/redemption fees), performance fees, administration fees, other fees (e.g., switching fees), commissions
Structure of the market for investment funds
Types of markets (regulated, OTC) - Direct subscriptions/redemptions with the fund (through a distributor and the transfer agent), organised markets (exchanges, MTF, OTF, SI) for ETFs
Primary and secondary markets - Launching a fund (open- end/closed-end), primary market for funds on exchanges (primarily ETFs), normal fund operations (subscriptions/redemptions)
Market players - Fund manager, distributor, fund administrator (includes fund accountant, transfer agent, domiciliary agent), custodian/depositary, exchange and brokers (for ETFs), paying agent
Financial instruments as investments
Market practice - Instrument with wide range of risk (from UCITS to hedge funds), collective investment, economies of scale, long-term savings instrument, low volatility, low fees
Main risks - Market risk, liquidity risk, credit risk, operational risk
Tax aspects - Withholding tax, capital gains tax, tax reclamation, subscription tax
Market forces that impact performance - Price of the underlying assets, volatility, liquidity, interest rates, currencies, macroeconomic factors
Understanding instrument’s performance - Value of the underlying assets, performance of the fund manager, costs/revenues of the fund, market perspective, volatility
Documentation related to the instrument - Prospectus (or offering/information memorandum), KIID, PRIIP, terms and conditions, fact sheets
The persons concerned by the Training Programme are all persons placed under the authority of a professional (or acting on his behalf) subject to prudential supervision by the CSSF, i.e. individuals providing investment advice (“Advisory profile”) or information (“Information profile”) on financial instruments, investment services or ancillary services to clients.
Experienced professional specialists selected on the basis of their in-depth knowledge of markets and financial products under MiFID rules I and II, and ESMA criteria.
Support de cours
Pour des raisons de respect de l'environnement veuillez noter qu'aucun support papier ne vous sera fourni lors de votre formation. Votre support de cours peut être téléchargé gratuitement avant le début du cours via notre portail client (télécharger ici le guide du portail client). Vous pourrez ainsi le consulter sur l’écran de votre appareil mobile ou l'imprimer en cas de besoin. Si votre inscription a été effectuée par un responsable formation de votre entreprise veuillez le contacter pour qu'il puisse vous y donner accès ou vous l'envoyer.
This module is part of the MiFID II Certification. For more details about this Certification, please click here.