Investment funds stand for transparency. Investors know how and where their money is invested, and they are clearly informed about the costs and fees. This builds lasting investor confidence.
Transparency is more than just a legal duty to provide information: transparency creates trust. Investors can clearly see and readily understand how investment funds are constructed and how they work.
Information on aspects such as the investments a fund makes, how these investments have performed, and what costs and fees are involved in investing in the fund can be found in the simplified prospectus, the prospectus, the fund regulations and regularly published factsheets, and also in the annual and semi-annual reports.
Investment funds – transparency engenders trust.
Investment funds enable retail investors to enjoy the benefits of professional and integrated asset management. For many, investment funds are also a worthy alternative to asset management mandates, which are otherwise the exclusive purview of private investors with suitable high volumes of assets.
Transparency and protection are also core elements when it comes to pricing. Forward pricing prevents any investors from gaining individual advantages when buying into a fund.
Forward pricing ensures fairness.
Investors redeeming fund units do not know their value when they place the redemption order. This value is only determined on the following day based on the closing prices from the redemption date. This method, which is known as forward pricing, is used in particular by contractual funds and SICAVs – both examples of open-end funds. It offers effective protection for investors by ensuring that nobody can exploit an information advantage to their favor, rake in risk-free profits, or essentially speculate against the fund and other investors.