Examples of OTC Swap in a sentence
Such Pre-Hedging Costs will be accounted for in the relevant OTC Swap Transaction(s) and accordingly in determining the NAV per Share.
Depending on the value of the OTC Swap Transaction(s) and its chosen structure (as described above), an Indirect Investment Fund will at any time be exposed to the Swap Counterparty.
Investment in FDIs for direct investment purposes may involve the use of exchange-traded or over-the-counter Investments including, but not limited to, OTC Swaps which will enable a Fund to receive, from a counterparty, the return of a particular Index or basket of reference assets in return for periodic cash payments from the relevant Fund (a cash OTC Swap).
Unfunded OTC Swap Model Where specified in the investment policy of the relevant Fund Supplement, a Fund may seek to gain exposure to the performance of an Index (or one or more constituents of an Index) by entering into “unfunded” total return OTC Swaps with one or more counterparties (each, a “Long Index Swap”) (the “Unfunded OTC Swap Model”).
As the Long Index Swaps are “unfunded”, the cash received by the Fund from investor subscriptions is retained by the Fund (i.e. it is not transferred to the relevant counterparties as would be the case with a “funded” swap) and invested and managed in accordance with the arrangements described under the heading below entitled “Portfolio management arrangements used in conjunction with the Unfunded OTC Swap Model”.
Where a cash OTC Swap is used, the return will also be dependent on any earnings from investment in a Common Investment Pool or through the use of stock lending, repurchase and/or reverse repurchase agreements and/or other Swap Arrangements.
Portfolio management arrangements used in conjunction with the Unfunded OTC Swap Model Under the Unfunded OTC Swap Model, cash received by a Fund from investor subscriptions and any cash paid to the Fund by one or more counterparties as profit on the Long Index Swaps is invested and managed in accordance with either the “Reverse Repurchase Agreement" model or the "Short Basket Swap" model, each of which is described below.
In either case, the return that an investor will receive will be dependent on the performance of the Index, the performance of the OTC Swap used to track or replicate the performance of an Index, and the level of fees and expenses paid by the relevant Fund.
As mentioned in section 5(a) above, the Reference NAV of each Terminating Share Class will take into account, amongst other expenses, all costs resulting from the realisation and liquidation of the remaining investments (e.g. the Primary Market Transaction Costs, the OTC Swap Transaction(s) and the Invested Assets (where applicable) of such Terminating Share Class.
In order to achieve its investment policy, each Fund that seeks to track or replicate an Index may also acquire Investments which are unrelated to the constituents of the relevant Index and enter into OTC Swapswhich exchange the performance of such Investments for the performance of the Index (a non-cash OTC Swap).