exchange fund

(redirected from Exchange Funds)

Exchange fund

Investment vehicle introduced in 1999 that appeals to wealthy investors with large holdings in a single stock who want to diversify without paying capital gains taxes. These funds allow investors to exchange their stock for shares in a diversified portfolio of stocks in a tax-free transaction.

Exchange Fund

An investment vehicle allowing investors with large holdings in a single stock to exchange them for a diversified portfolio. This allows the investors to diversify their holdings without selling any stocks, thereby avoiding taxes on their capital gains until the shares are actually sold. Exchange funds are controversial as investors could avoid taxes completely by never selling the portfolio and simply borrowing against it. They were originally introduced in 1999. An exchange fund is also called a swap fund.

exchange fund

An open-end investment company that swaps its own shares for an equal value of securities owned by an individual investor. Although the exchange is tax-free, the fund assumes the stockholder's basis on the securities it obtains. Thus, exchange funds ordinarily have large potential capital gains liabilities. Because of a 1967 Internal Revenue Service ruling, shares of these funds are no longer offered.
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Over the past four years, hundreds of victims - both corporations and consumers -- have lost enormous sums of money, life savings, and suffered significant tax liabilities due to theft and speculative investment of 1031 exchange funds by QIs.
These mergers are designed to simplify Manulife Mutual Funds investment platform, remove sub-scale products, and manage Manulife Investment Exchange Funds Corp.
Use of separate escrow or trust account: Most QIs do not put the exchange funds into a separate trust or escrow account, which could protect the funds from creditors.
Investment offerings include alternative investments such as private equity funds, hedge funds and exchange funds.
1] Nevertheless, a wide range of scholarships are offered by 16 different types of sources, from university grants, over regional prizes to bilateral exchange funds.
With help from a sophisticated matching system, banks exchange funds with other members of the network.
The remaining $215,000 new mortgage does not offset the boot; the boot, essentially, equals the remaining exchange funds refunded to the taxpayer at the exchange's completion.
The SAS 70 Type II certification is part of a proven set of measures NESF has taken to protect its clients' exchange funds and the integrity of exchange transactions.
As per the blueprint released in December 2013, Companies and individuals can open special accounts with banks, insurers and brokerages in the FTZ that can eventually be used to move local and foreign exchange funds into and out of China without being subject to the strict capital controls.
Express Trust Accounts To protect client funds from QI bankruptcy, exchange funds are placed in express trust accounts.
Because Zions Bank is heavily regulated, however, clients can rest assured that their exchange funds are held in a reputable institution that offers FDIC insurance up to $250,000.
CurrencyFair customers are able to exchange funds and transfer them overseas at a fraction of the cost of traditional banks or brokers, due to its unique and innovative p2p model.