Fund derivative

Fund derivative

A fund derivative is a financial structured product related to a fund, normally using the underlying fund to determine the payoff. This may be a mutual fund or a hedge fund. Purchasers might want exposure to a fund to get exposure to a star fund manager or management style as well as the asset class.

Typical fund derivatives might be a call option on a fund, a CPPI on a fund, or a leveraged note on a fund. More complicated structures might be a guarantee sold to a fund that ensures it cannot fall in value by more than a certain amount. Maturities might range from three to ten years. The big players in this field are BNP Paribas, Societe Generale, Barclays, Deutsche Bank, Citigroup, Credit Suisse, etc.

Fund derivatives have had explosive growth over the past 10 years but are still a major growth area. New structures are constantly being developed to suit market and client opportunities.

External link

* [http://www.kbcfp.com/ourproducts/fundderivatives.html KBC Financial Products: Fund derivatives]
* [http://www.barcap.com/sites/v/index.jsp?vgnextoid=ab8c15cd3f4f8010VgnVCM1000002581c50aRCRD Fund-linked Derivatives]
* [http://www.altrus.com/ Nomura wins Silver Award for Best Hedge-Fund Linked Certificate]


Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • derivative counterparty — An entity which enters into derivative contracts (used for the purposes of efficient portfolio management or to protect against exchange risks) with the fund or other counterparty. Related links portfolio Practical Law Dictionary. Glossary of UK …   Law dictionary

  • Derivative (finance) — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • Credit derivative — In finance, a credit derivative is a securitized derivative whose value is derived from the credit risk on an underlying bond, loan or any other financial asset. In this way, the credit risk is on an entity other than the counterparties to the… …   Wikipedia

  • Mutual fund — This article is about mutual funds in the United States. For other forms of mutual investment, see Collective investment scheme. A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors… …   Wikipedia

  • Hedge fund — A hedge fund is a private investment fund open to a limited range of investors which is permitted by regulators to undertake a wider range of activities than other investment funds and which pays a performance fee to its investment manager.… …   Wikipedia

  • Stock fund — A stock fund or equity fund is a fund that invests in Equities more commonly known as stocks. Such funds are typically held either in stock or cash, as opposed to Bonds, notes, or other securities. This may be a mutual fund or exchange traded… …   Wikipedia

  • National Council for Social Security Fund — Agency overview Formed 2000 Jurisdiction  People s Republic of China Headquarters …   Wikipedia

  • Collateralized fund obligation — A collateralized fund obligation (CFO) is a form of securitization involving private equity fund or hedge fund assets, similar to collateralized debt obligations. CFOs are a structured form of financing for diversified private equity portfolios,… …   Wikipedia

  • Equity derivative — In finance, an equity derivative is a class of financial instruments whose value is at least partly derived from one or more underlying equity securities. Market participants trade equity derivatives in order to transfer or transform certain… …   Wikipedia

  • Energy derivative — Also known as energy trade, oil trade, gas trade, power trade. Major players include major trading houses, oil companies, utilities, financial institutions.This article can briefly present the definition, applications, and brief history of the… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”