exchange fund

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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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For example, forwards and collars are more customized than an exchange fund and allow insiders faster execution and timing in their use.
DFID to provide a first stop loss reserve besides the Dutch Government to consolidate this innovative Currency Exchange Fund (TCX) supported by 12 IFIs and bilateral donors.
Technical, monetary and financial sources expect that the future program will be either the Exchange Fund Account (EFA) program or the Stand-By Arrangement (SBA) program, which will be extended with different terms from the current program.
BNI plans to issue US dollar denominated bonds to improve its long term structure of foreign exchange fund.
84 trillion yen in bills to meet short-term financing needs including foreign exchange fund bills issued to raise yen funds for currency interventions.
Holdings of the world's biggest gold-backed exchange fund, New York's SPDR Gold Trust , dipped by 10 tonnes, the exchange said on Thursday, but were almost unchanged month-on-month despite the fluctuations in gold prices.
An exchange fund is a vehicle that permits a contribution by an investor of a highly appreciated concentrated position to a partnership in exchange for a partnership interest without triggering the investment company rule of Sec.
The Stock Exchange fund for protecting investors from non-commercial risks Sunday was approved the Egyptian Financial Supervisory Authority (EFSA) said chairman of the Misr for Central Clearing, Depository and Registry, Mohamed Abdel-Salam.
amp;nbsp;<br />Hong Kong's Exchange Fund investment yielded HK$79 billion in 2010, and the Exchange Fund investment return was 3.
The government has approved to draw $900 million out of the Foreign Exchange Fund to finance the project.
Addressing tough challenges ahead due to the global financial crisis, Chan told reporters, ''The most important task of the HKMA will be the maintenance of the monetary and banking stability in Hong Kong, of normal functioning of the credit market and the prudent management of the Exchange Fund,'' in which the bulk of the government's financial assets are placed.
The Texas work is funded by the Texas-Israel Exchange Fund.