Hedge Fund Certificate

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The hedge fund certificate is either a bearer bond or an index certificate , the market price of which depends on the development of a hedge fund index.

General

A hedge fund certificate is therefore not an investment certificate in terms of securities law, as is the case with classic investment funds , as its name might suggest. Since it therefore has no share certificate at a hedge fund portfolio or fund of hedge funds represents -Portfolio, not even the tax provisions of the need Investment Tax Act are observed.

economic aspects

The performance of the hedge fund index is linked to the performance of a specific hedge fund portfolio with the help of a total return swap , so that the economic performance of the bond is dependent on that of the hedge fund. Based on the net asset value ( English net asset value , NAV) of hedge funds is calculated an index on which a hedge fund certificate issued is.

Since investors in hedge fund certificates hold a bond, they do not have a share of ownership as with investment certificates , but are creditors and as such are exposed to the risk of insolvency ( issuer risk ) of the issuer (does not have to be the hedge fund). In the event of insolvency, investors are not entitled to any separate rights as with traditional investment funds, because the fund assets of the hedge funds are not tied.

The advantage of a hedge fund certificate is, on the one hand, the lower minimum participation and, on the other hand, the easier tradability . Certificates are available from € 100, while hedge funds usually require a minimum investment of € 50,000 or € 100,000. Some of the certificates are also traded on the stock exchange or can be returned to the issuer on a daily basis. The return of funds, on the other hand, can be regulated very differently. Most funds can be returned on a monthly basis to the investment company that manages the fund.

Before the withholding tax was introduced , certificates were also more attractive for tax purposes than funds, as they could be sold tax-free after the speculation period had expired .

Web links

Individual evidence

  1. ↑ Hans Stamm / Hilger von Livonius, Hedge Funds for Private Investors in Germany , in: Absolut-Report 13, 2003, p. 49
  2. ↑ Achim Pütz, Hedge Fund Certificates and Foreign Investment Act , in: Absolut-Report 1, 2001, p. 24
  3. ↑ Markus Sievers, Investing in Hedge Funds , 2007, p. 51