What does this statement mean in the prospectus of an ETF? - etf prospectus
However, if the administrator believes that the current strategy of synthetic replication of the most effective way to track the index is to decide the manager to adopt a different strategy in its sole discretion, and so often that it considers appropriate to the to achieve investment objective of the Fund.
Monday, January 18, 2010
Etf Prospectus What Does This Statement Mean In The Prospectus Of An ETF?
2 comments:
This essentially means that the manager retains the right to change the mind or the investment strategy and thereby in accordance with the said fund investment strategy. I would not think much of the statement, because if you do not have enough confidence in the manager to trust his opinion, it is probably not down anyway. In addition, most funds have been similar warnings and have much larger reserves of a fund, because it links into the hands so that they adapt stiff and unable to adapt to changing market conditions.
Which seems that this fund a strategy of "some" is used in order to have their investments, but the manager to deviate from this strategy in May, in the absence of alternatives or the current seems not a good idea.
An example could be that the fund in May to 50% equities and 50% bonds, but if the future is the kindergarten Stokes Stong bond market could change 40% and 60% bonds.
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