Introduction and Overview of 40 Act Liquid Alternative Funds (Citi)

July 2013

KEYWORDS: 40 Act liquid alternative funds, alternative investment, board of directors, broker-dealer, commodities, commodity trading advisor, controlled foreign corporation, CTA, ETFs, FCM, fees, futures commission merchant, hedge fund registration, investment adviser, Investment Company Act, Liquidity, long/short equity, marketing, mutual funds, NAV, pooled investment vehicles, prime broker, redemption terms, SEC, Securities Act of 1933, Securities and Exchange Commission, Securities Exchange Act of 1934, service providers, tax

Authors:

Citi Prime Finance

Organizations:
  • Citi

Summary:

This document is an introduction to ’40 Act funds for hedge fund managers exploring the possibilities available within the publically offered funds market in the United States. The document is not a comprehensive manual for the public funds market; instead, it is a primer for the purpose of introducing the different fund products and some of their high-level requirements. This document does not seek to provide any legal advice. We do not intend to provide any opinion in this document that could be considered legal advice by our team. We would advise all firms looking at these products to engage with a qualified law firm or outside general counsel to review the detailed implications of moving into the public markets and engaging with United States regulators of those markets.

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