Represents a pool of money gathered from retail and institutional investors with the objective of investing in the capital markets (stocks, bonds and/or other securities) by a professional investment firm, known as the portfolio manager or asset manager. Investors receive shares in the fund, proportional to their initial investments, and are entitled to receive the capital gains, dividends and interest income derived by the fund.
Closed End Mutual Fund
Issues a fixed amount of shares, which are then listed and traded on a stock exchange like a common stock. An investor can acquire shares through an IPO allocation, or by buying shares in the secondary market.
Institutional investor(s) who provides at least 10% of the fund capital and initiates the mutual fund. The sponsor can set the policies and guidelines, choose the Asset Manager, the Trustee and the Custodian, who together are responsible for managing the operations and investments of the mutual fund.
An institution which acts as the guardian of the fund, ensuring that the interests of the investors are being upheld and that the fund operations are compliant with all rules and regulations.
An institution which keeps the investment securities of the mutual fund in safe custody and in the interest of the shareholders.
Asset Management Company
An institution which is responsible for investing and operating the fund in accordance with the agreement set forth with the investors. RACE Management, PCL is such an Asset Management Company.