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In short, when an investor places his money (ie invests) in such a fund, he will receive a certain number of fund units - depending on the value of the fund unit that is periodically established / calculated by the Fund Manager; this operation is called the purchase (subscription) of fund units.
Each fund unit issued by such an investment vehicle owned by an investor represents both its ownership in that fund and the ownership of that investor in a share of the profits generated by that fund.
The reverse transaction is called a “redemption” of units of funds - and is the procedure in which the investor asks the Fund Manager to redeem the securities held, which means that he will transfer the securities in question and receive in their place the calculated equivalent amount of money. depending on their market value - less any fees and related fees communicated by the Fund Manager at the time of purchase of those securities.
Amounts collected by the fund from purchases of securities (also called subscriptions) made by investors, are invested by the Investment Management Company that manages that fund, in different markets, in different asset classes - in accordance with those set out in fund documents.
The current value of all investments of the fund forms the total assets of the fund. The total operating expenses of the fund are deducted from the total assets, resulting in the net assets of the fund. The current value of a security (fund unit), abbreviated VUAN, is obtained by dividing the fund's net assets by the total number of securities / units issued by the fund and in circulation (unredeemed). The result is the amount at which investors can make purchases / redemptions of securities at a certain time (any fees associated with these transactions must also be taken into account).
Please note: A fund's assets are securely held by a bank (as the Fund's Depositary) which verifies, certifies and is responsible for the correct disclosure. All three entities (Fund, Fund Manager and Depositary) are authorized, supervised and controlled by state authorities and operate in accordance with both national law and regulations and those valid throughout the European Union. The value of a fund unit (VUAN) is determined and published periodically (usually daily) by the Fund Manager, the value being certified independently by the Depositary, thus ensuring the correct registration of the purchase / redemption of fund units .
Each fund unit issued by such an investment vehicle owned by an investor represents both its ownership in that fund and the ownership of that investor in a share of the profits generated by that fund.
The reverse transaction is called a “redemption” of units of funds - and is the procedure in which the investor asks the Fund Manager to redeem the securities held, which means that he will transfer the securities in question and receive in their place the calculated equivalent amount of money. depending on their market value - less any fees and related fees communicated by the Fund Manager at the time of purchase of those securities.
Amounts collected by the fund from purchases of securities (also called subscriptions) made by investors, are invested by the Investment Management Company that manages that fund, in different markets, in different asset classes - in accordance with those set out in fund documents.
The current value of all investments of the fund forms the total assets of the fund. The total operating expenses of the fund are deducted from the total assets, resulting in the net assets of the fund. The current value of a security (fund unit), abbreviated VUAN, is obtained by dividing the fund's net assets by the total number of securities / units issued by the fund and in circulation (unredeemed). The result is the amount at which investors can make purchases / redemptions of securities at a certain time (any fees associated with these transactions must also be taken into account).
Please note: A fund's assets are securely held by a bank (as the Fund's Depositary) which verifies, certifies and is responsible for the correct disclosure. All three entities (Fund, Fund Manager and Depositary) are authorized, supervised and controlled by state authorities and operate in accordance with both national law and regulations and those valid throughout the European Union. The value of a fund unit (VUAN) is determined and published periodically (usually daily) by the Fund Manager, the value being certified independently by the Depositary, thus ensuring the correct registration of the purchase / redemption of fund units .
