What is unencumbered cash hedge fund?
What is unencumbered cash hedge fund?
Unencumbered refers to an asset or property that is free and clear of any encumbrances, such as creditor claims or liens. Examples of common unencumbered assets are houses free from mortgages and other liens, cars with paid off loans/notes, or stocks purchased in a cash account.
What is the difference between Ucits and Aifmd?
The key difference between the two texts is that UCITS requires a “risk management process” that “enables it to monitor, measure at any time” whereas the AIFMD legislation require “risk management systems” that will be used “in order to identify, measure, manage and monitor all risks … to which each AIF is or may be …
Can pension funds invest in AIFs?
Category III AIFs employ diverse or complex trading strategies and invest in listed or unlisted derivatives. Non-government funds, pension funds and gratuity funds can now invest the 5% of their investible surplus only in Category I and Category II AIFs registered with SEBI.
What does unencumbered balance mean?
An unencumbered balance is that portion of an appropriation that has not yet been spent or tagged for use. Thus, it is the amount of money remaining that is available for use. The concept is employed in governmental accounting.
Who does AIFMD apply?
The AIFMD applies not only to European Union (EU) AIFMs, but also to those non- EU AIFMs that are managing or marketing AIFMs in EU Member States which have transposed the AIFMD into national law.
Is AIFMD a UCIT?
AIFMD. The AIFMD applies to managers of funds that are not UCITS, including hedge funds, private equity funds, and real estate funds. Taken together, the UCITS Directive and the AIFMD provide for a comprehensive set of rules for fund management activities in the EU.
Who can invest in AIFS?
Eligibility Criteria. Investors can be Indian, NRI or foreign nationals. Minimum corpus should be Rs20cr for each scheme and Rs10cr for Angel Funds. Minimum investment by each investor should be Rs1cr or Rs25 lakh (in case of employees/director/fund manager of AIF).
What is unencumbered cash?
Unencumbered Cash means all cash and Cash Equivalents held by the Company and its Subsidiaries in the Principal Jurisdictions that are not subject to any Lien by any Person, other than inchoate Liens which arise by statute or operation of law, in each case, on an involuntary basis.
What is unencumbered cash flow?
Unencumbered cash is any cash asset that is not or is not anticipated to be needed to pay costs associated with the business. It is money that can be re-directed to unanticipated needs, directed to new development, or counted with other assets when profits are tallied.
How will the AIFMD affect alternative investments?
Alternative investments such as private equity and hedge funds were largely unregulated in the EU before the global financial crisis. The AIFMD was implemented in the EU in 2013. But rather than pass regulation on the funds themselves, the directive’s aim is to regulate the fund managers .
Do the cash monitoring requirements apply to the AIF/AIFM?
Answer 1: No, the cash monitoring requirements under Articles 85 and 86 of Commission Regulation (EU) No 231/2013 (the AIFMD Level 2 Regulation) do not apply to cash accounts opened in the name of companies in which the AIF/AIFM holds investments.
What does AIFMD stand for?
The Alternative Investment Fund Managers Directive (AIFMD) is a European Union (EU) regulation that applies to hedge funds, private equity funds, and real estate funds. The institutional funds that fall under the AIFMD were previously outside of EU financial regulations for disclosure…
What are the AIFMD’s remuneration policies?
In order to do this, the AIFMD mandates that remuneration policies be structured in a way that does not encourage excessive risk taking, that financial leverage is reported to the European Systemic Risk Board (ERSB), and that the funds have robust risk management systems that take liquidity into account.
