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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The following is issued on behalf of the Hong Kong Monetary Authority:The Hong Kong Monetary Authority (HKMA) released today (March 14) the key analytical accounts of the Exchange Fund at the end of February 2018.
M2 EQUITYBITES-March 7, 2016-Mediatrix Capital expands foreign exchange fund platform
BANKING AND CREDIT NEWS-March 7, 2016-Mediatrix Capital expands foreign exchange fund platform
For example, forwards and collars are more customized than an exchange fund and allow insiders faster execution and timing in their use.
An exchange fund is a private placement limited partnership that allows clients to contribute certain concentrated positions to the partnership in exchange for shares of interest in the fund.
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.
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.