Download - CFM - RC VA20 Arbitrage Index - V1 01-06 11
Participation Units Participation in the Strategy will be sub-divided
into standard participation units with a nominal
value of £1 each. The Strategy Manager may
issue additional units or cancel units as necessary
to facilitate contributions to or withdrawals from
the Strategy.
Valuation The Strategy will be valued on a mark to market
basis quarterly on the last calendar day of each
quarter. The Strategy Manager may at its absolute
discretion determine additional valuation dates on
an ad-hoc basis.
The Strategy’s value will be determined by
deducting the total liabilities from the total assets of
the Strategy. The value of the assets and liabilities
of the Strategy will be determined in accordance
with CFML’s standard strategy valuation policy,
which is available on request and may be
published from time to time on CFML’s website.
Unit Pricing The net asset value per unit will be calculated by
dividing the net asset value of the Strategy by the
total number of units participating in the Strategy.
The Directors reserve the right to adjust the unit
price on any valuation date to reflect the
approximate true cost or value per unit
associated with any investment or redemption
from the strategy.
Publication of Unit Pricing
The unit price of the strategy will be available on
request from CFML. The unit price may also be
published on CFML’s website. CFML will
additionally endeavour to maintain pricing of the
strategy on Bloomberg.
Introduction The CFM RC VA20 Arbitrage Index (the “Index”)
was formed by Capital Financial Markets Limited
(“CFML”) in June 2011.
Operating Memorandum This Operating Memorandum details the basis by
which the Index will be managed and how the
index levels are calculated.
Reference Strategy The Index is based on the performance of an
underlying reference strategy called the CFM RC
VA20 Arbitrage Strategy (the “Strategy”) and the
rest of this document details how this Strategy
operates.
Strategy Manager The Strategy is managed by Capital Financial
Markets Limited (“CFML” or the “Strategy
Manager”) of Capital House, Circular Road,
Douglas, Isle of Man, IM1 1AG.
CFML is a specialist provider and issuer of
contracts for difference and spread bet contracts.
CFML is licensed by the Isle of Man Financial
Supervision Commission (“FSC”).
CFML is a wholly owned subsidiary of Capital
International Limited (“CIL”).
CFML is a member of the Capital International
Group.
Custodian & Broker The Strategy Manager has appointed Capital
International Limited (“CIL”) of Capital House,
Circular Road, Douglas, Isle of Man, IM1 1AG as
lead custodian and broker to the Strategy.
CIL provides international dealing, custody,
investment management and portfolio
administration services. At the time of publication,
CIL administered over $4 billion of assets. CIL is a
member of the London Stock Exchange and is
licensed by the FSC. CIL is a member of the
Capital International Group.
CFM RC VA20 Arbitrage Index SRI Operating Memorandum
www.capital-iom.com
Contributions & Withdrawals The Strategy is a private strategy operated by
CFML. From time to time CFML may choose to
contribute additional monies to or withdraw monies
from the Strategy at its absolute discretion.
Contribution and withdrawals may only be made
on a valuation date. The amount of the
contribution or withdrawal (after deduction of any
charges) divided by the unit price on that valuation
date will determine the number of units invested
or disinvested.
The Strategy is subject to certain restrictions and
minimum notice periods with respect to
withdrawals.
Investment Objective To track the performance of the Venture 20 Cell, a
Cell of the Venture Assets PCC (the “Fund”).
Base Currency Sterling
Management Approach The Strategy is passively managed by the Strategy
Manager and is intended to track the performance
of the Fund.
Leverage & Borrowing Powers The Strategy will not utilise leverage or borrow
against the assets of the Strategy.
Restrictions The Strategy only tracks the Fund, and no other
securities. It is anticipated that the Strategy will
hold a modest cash balance from time to time.
Risk Due to the focused nature of the investment
Strategy, there is likely to be higher levels of
volatility and risk when compared to more
diversified strategies.
It is the responsibility of the regulated adviser,
recommending the Index to a client, to provide a
copy of this Memorandum and such relevant
documentation relating to the Fund, in order that
the client is able to adequately understand the
risks of entering into a spread bet against the
Index.
Fees, Charges and Expenses he following fees and charges will be applied to
the Strategy.
An initial Set-Up Fee of 1.0% will be deducted
at outset.
An Investment Administration Fee will be
calculated and deducted quarterly, as follows:
0.7% per annum on first £1m of assets
valued in the Strategy
0.5% per annum on assets held in the
Strategy of between £1m and £2.5m
0.3% per annum on assets held in the
Strategy of between £2.5m to £5m
0.2% per annum on assets held in the
Strategy of between £5m to £10m
0.1% per annum on assets held in the
Strategy in excess of £10m
Financial Advisers may be paid initial and ongoing
commission and these amounts will be levied in
addition to the Set-Up Fee and the Investment
Administration Fee. For further details prospective
investors should contact their financial advisers.
The Set-Up Fee and the Investment
Administration Fees are inclusive of all custody
and administration charges.
All dealing and clearing costs, miscellaneous and
legal costs will passed onto the Strategy.
Capital Financial Markets Limited Capital House Circular Road Douglas Isle of Man IM1 1AG
www.capital-iom.com
T : +44 (0) 1624 654200 E: [email protected]
Contact Details
Capital International Limited and Capital Financial Markets Limited are members of the Capital International Group
Capital International is a member of the London Stock Exchange and is licensed by the Isle of Man Financial Supervision Commission Capital Financial Markets Limited is licensed by the Isle of Man Financial Supervision Commission
Registered Address: Capital House, Circular Road, Douglas, Isle of Man, IM1 1AG
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The constituents of CFM RC VA20 Arbitrage Index include certain non-regulated funds, including but not limited to the Venture 20 Cell - a Cell of the Venture Assets PCC (the “Fund”), which is only suitable for persons that are Experienced, Sophisticated, Professional or Institutional Investors and are sufficiently experienced to understand the risks associated with an investment in the Fund.
This declaration is to be completed by the financial adviser who has advised the investor with regard to a spread bet referenced against the CFM RC VA20 Arbitrage Index.
I confirm that:-
a) I am the appointed financial adviser for the client ; and
b) I have discussed the features and risks attendant to this CFM RC VA20 Arbitrage Index and the constituent exposure to the performance of the Fund; and
c) I have discussed the specific risks attendant to an exposure to the Fund and the possible impact thereof on the performance of the client’s spread bet against the CFM RC VA20 Arbitrage Index; and
d) I have provided the client with a copy of this Index Memorandum and such relevant documentation relating to the Fund to enable the client to adequately understand the risks of entering into a spread bet against the CFM RC VA20 Arbitrage Index; and
e) the client has confirmed that they are a sufficiently qualified and experienced investor to understand these risks and wish to deal in spread bets referenced against the CFM RC VA20 Arbitrage Index and I consider this a suitable transaction for the client.
I am not aware of any information that would lead me to believe that the client does not understand and accepts these risks.
Signature Print Name Business Name
Adviser Declaration SRI Operating Memorandum