Fund Basket definition
Examples of Fund Basket in a sentence
As the value of the Reference Fund Basket fluctuates, the multiplier or leverage also changes.
The investment objective of the Certificates is to provide an investor with a target leveraged economic exposure to the performance of an equally weighted basket of funds (each a "Reference Fund" and, together, the "Reference Fund Basket").
In particular, as the NAV of the Reference Fund Basket increases, the effective leverage decreases, and as the NAV of the Reference Fund Basket decreases, the effective leverage increases.
Fluctuations in the value of a Reference Fund in the Reference Fund Basket may, where applicable, be offset or intensified by fluctuations in the value of other Reference Funds.
The Basket Value at any time represents the weighted sum of the NAV of each Reference Fund in the Reference Fund Basket multiplied by the number of units of the Reference Fund in which a Certificate is notionally invested at such time.
Please see Condition 14 (Provisions relating to Reference Fund Basket Securities) in the "Terms and Conditions of the Certificates" below.
MSI plc and other affiliates may also carry out hedging activities related to the Certificates, including trading in the underlying Reference Funds as well as in other instruments related to the Reference Fund Basket.
A holder of Certificates could therefore realise a bigger gain (if the Reference Fund Basket increases in value) or a bigger loss (if the Reference Fund Basket decreases in value) than if there was no leverage.
The return of the Certificates depends on the performance of the Reference Fund Basket, amongst other things, as described in "What are the potential returns on the Certificates?" above.
This Condition 14 (Provisions relating to Reference Fund Basket Securities) shall apply only to Certificates specified in the Contractual Terms as being Reference Fund Basket Securities.