Get Form Revised 10/29/09 The Term Fund Can Have Multiple Meanings ...

The current names rule generally requires that if a fund's name suggests a focus in a particular type of investment, or in investments in a particular industry or geographic focus, the fund must adopt a policy to invest at least 80% of the value of its assets in the type of investment, or in investments in the industry ...

A fund is a pool of money set aside for a specific purpose. The pool of money in a fund is often invested and professionally managed in order to generate returns for its investors. Some common types of funds include pension funds, insurance funds, foundations, and endowments.

The Securities and Exchange Commission (SEC) issues final rule amendments to Section 35d-1 of the Investment Company Act of 1940, commonly referred to as the fund “Names Rule”, with the goal of preventing fund names from misrepresenting a fund's investments and risks.

Mutual funds are pooled investments managed by professional money managers. They trade on exchanges and provide investors with access to a wide mix of assets selected for the fund. A professional fund manager handles this mix of investments, and the fund's assets and goals are detailed in the prospectus.

The Names Rule, as amended, generally requires a fund, when calculating compliance with the 80% investment policy, to value each derivative instrument in its portfolio using its notional amount, as opposed to the market value of the derivative.

The Names Rule requires that if a Fund's name suggests that the Fund invests in a particular type of investment or investments, or in investments in a particular industry, group of industries, countries, or regions, then such Fund must adopt a policy to invest at least 80 percent of the value of its assets2 in such ...

The amendments to the Names Rule will become effective on December 11, 2023, 60 days after publication in the Federal Register. Fund groups with net assets of $1 billion or more will have 24 months to comply with the amendments, and fund groups with net assets of less than $1 billion will have 30 months to comply.

Fund term – exiting investments. • This period also generally lasts 4-6 years. • The fund will exit investments and distribute profits among the investors (and carryholders).