Document ID: chunk:federal_register_of_legislation:F2024L00653:body:0:p4
Version: federal_register_of_legislation:F2024L00653
Segment Type: other
Provision Reference: 
Character Range: 12315–16371

are not applied, may use high levels of leverage;

                                                                                          (b) significant performance fees (often in the form of a percentage of profits) are paid to the manager in addition to an annual management fee;

Alternative strategy fund                                                                 (c) investors are typically permitted to redeem their interests periodically (e.g. quarterly, semi-annually or annually);

                                                                                          (d) significant 'own' funds are often invested by the managers;

                                                                                          (e) derivatives are used, often for speculative purposes, and there is an ability to short sell securities; and

                                                                                          (f) more diverse risks or complex underlying products are involved.

Alternatives (strategic sector) / (strategic subsector) / (asset class sector type)       Means any investment which does not meet the definition of the other strategic sectors.

Alternatives Activist (asset class characteristic 2)                                      Means an investment strategy that involves taking large positions in corporations and using the ownership to participate in the management of the corporation.

Alternatives Commodities (asset class characteristic 2)                                   Means an investment in natural resources that are either grown or extracted from the ground.

Alternatives Convertible Bond Arbitrage (asset class characteristic 2)                    Means an investment strategy that takes advantage of relative discrepancies in prices between convertible bonds and corresponding equity securities.

Alternatives Credit Distressed (asset class characteristic 2)                             Means an investment strategy that invests in fixed income securities of corporations facing bankruptcy or severe financial distress.

Alternatives Equity Market Neutral (asset class characteristic 2)                         Means an investment strategy invested in equity securities that aims for little or no correlation to overall market exposure.

Alternatives Event Driven (asset class characteristic 2)                                  Means an investment strategy that finds investment opportunities in corporate transactional events such as consolidations, acquisitions, recapitalisations, bankruptcies and liquidations.

Alternatives Fixed Income Arbitrage (asset class characteristic 2)                        Means an investment strategy invested in fixed income securities that takes advantage of relative discrepancies in price between securities.

Alternatives Global Macro (asset class characteristic 2)                                  Means an investment strategy that takes sizeable positions in equity, fixed income or currency markets in anticipation of global macroeconomic events.

Alternatives Insurance Linked Securities (asset class characteristic 2)                   Means an investment in instruments whose value is affected by insured events, such as natural disasters or longevity. Includes catastrophe bonds and life policy investments.

Alternatives Long Short Credit (asset class characteristic 2)                             Means an investment strategy invested in fixed income securities that uses market movements, trends or inconsistencies when picking securities, and hedges long positions with short sales of fixed income securities or derivatives.

Alternatives Long Short Equity (asset class characteristic 2)                             Means an investment strategy invested in equity securities that uses market movements, trends or inconsistencies when picking securities, and hedges long positions with short sales of equity securities or derivatives.

Alternatives Managed Futures Or Commodity Trading Advisor (asset class characteristic 2)  Means an