7 - indirect investment

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7 Terms

1
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what is indirect investment

for example retail clients who aren’t allowed to trade in derivatives directly

2
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what are the two main routes of indirect investment

accounts that are discretionally managed

pools/funds like CISs

3
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the pools/funds are more likely to be…

…unregulated, since we r dealing with derivatives here so they might be derivatives based funds

4
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3 features of the investment style of derivatives based funds

speculative

guaranteed

synthetic

5
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speculative

highly geared, high risk but high potential returns

6
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guaranteed

exposure to a market with a ‘capital guarantee’ (eg. buying a bond and a call so the money isn’t just cash)

7
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synthetic

designed to replicate the performance of an index