What is a contractual open ended fund?

Contractual **, also known as unit trust**, refers to the establishment of the investor, the manager, and the custodian as the parties, and the issuance of beneficiary certificates in the form of a contract.

The contractual type is established by relying on the trust law or referring to the trust jurisprudence, and its establishment is based on the contract. **The deed is a trust deed in countries (regions) with trust laws, and in countries or regions without trust laws, the spirit of trust laws is referred to. Contract-based ** according to ** (trust) deed to raise investor funds; The Manager carries out management activities in accordance with the (trust) deed; Proceeds are distributed between the parties pursuant to a (trust) deed.

The ** investment trusts in Japan, South Korea and Taiwan, and the unit trusts in the United Kingdom and Hong Kong are all contractual **. At present, China's mainland China has taken the form of a contract.

Contractual investment** can be divided into two types: 1. Unit investment**; 2. **Type investment**. There are no fixed limits on the size and duration of the latter, as well as on fund-raising and investment activities, and are differentiated independently by unit.

**The institution calculates the net value of each beneficiary certificate according to the value of the investment, plus management fees, handling fees and other expenses, and timely announces the purchase and selling price of the beneficiary certificate, and investors can buy and sell the beneficiary certificates in their hands according to their trading**.

Features: 1) Unit trust is a document called a trust deed and formed a manager company, in terms of organizational structure, it does not have a board of directors, the manager company itself as a entrusted company to set up, itself or then hire a manager to manage the operation and operation of the company, and usually designate a company or underwriting company to handle the issuance, sale, transfer, transaction, profit distribution, income and principal and benefit repayment payment of the beneficiary certificate - single certificate.

2) The trustee accepts the entrustment of the ** manager company, and registers and opens an account for ** in the name of the trustee or trust company. The account is completely independent of the account of the custodian company, and even if the custodian company goes bankrupt due to poor management, its creditors cannot use the assets of the custodian. Its responsibilities are to manage, keep and dispose of the trust property, supervise the investment work of the ** manager, ensure that the ** manager complies with the investment requirements set out in the prospectus, and make the investment portfolio they adopt meet the requirements of the trust deed.

In the event of a problem with a unit trust**, the trustee is liable to the investor for the claim.

That is, the market is said to be open**.

The most abundant kind on the market right now.

Contractual open**.

It means that the **unit cannot be on the **exchange**.

Listed Investments. Although this kind of ** cannot be listed and traded on the ** exchange, it can be traded through "subscription" and "redemption", and the two parties to the contract open ** transaction are investors and ** companies.

With the continuous development of social economy, many friends should buy all kinds of ** in real life to make their lives better, but in fact, in the process of buying**, we should pay attention to distinguishing some ** characteristics, such as contract type, open and listed open What are the characteristics and differences between these two **, let's take a look.

First of all, we need to understand that the contract type **.

It includes contract-type open-ended ** and contract-type closed**, and the ** currently issued in our country are contractual**, and there is no company**. In addition, we also need to understand that the term between the two is not the same, generally speaking, the closure period of the contract type ** is usually five years or ten to 15 years, and after the approval of the people's congress and the consent of the competent authority, the appropriate period can be extended, while the period of closure of the listed type ** is not the same, and there is a fundamental difference between the two.

In addition to these reasons, both ** legal personality.

It is different, the contract type ** does not have legal personality, but for the latter it has legal personality, that is to say, the legal person of the company itself is actually the share of legal personality. Of course, the difference between these two types of ** also includes that the financing channels are also different, because the listed ** has the qualification of a legal person, in the case of good operation of funds, under the condition that the business is carried out smoothly, you can borrow from the bank, but for the contract **, because it does not have the qualification of a legal person, it is not possible to borrow from the bank.

To sum up, we can clearly find that the difference between these two kinds of ** is different, not only in the qualification of legal persons, but also in the financing channels and other aspects, so when we buy two kinds of **, we must carefully distinguish, only in this way can we help us get better returns, in order to make our investment more stable.

The contractual ** is not redeemable, and the open-ended ** can be redeemed as a gift, and the benefits of the two ** are not the same, and the value of the two ** is not the same, etc., so the difference is also very big.

Listed trading open-ended refers to the **investment** of the unit listed and traded on the **exchange**, and the two parties to this kind of transaction are individual investors. Contractual open-ended refers to the investment that cannot be listed and traded on the exchange. This type of ** cannot be listed and traded on ** exchanges.

One is redeemable, the other is non-redeemable, and there is a difference, and one is fixed income and the other is non-fixed income, and the difference between the two is also very large.

Contractual vs. Corporate.

According to the different organizational forms and legal status, there are basically two types of investment: contract type and company type.

1) Contractual type Contractual type, also known as unit trust, refers to a kind of contract issued by investors, managers and custodians as parties. It is an investment behavior organized based on the principle of contract, without a charter and a board of directors of the company, but through the enterprise to regulate the behavior of the three parties. The administrator is responsible for the management of operations.

As the nominal holder of the assets, the custodian is responsible for the custody and disposal of the assets and supervises the operation of the manager.

As the initiator of the company, the manager raises funds to form trust property by issuing beneficiary certificates. According to the trust deed, the custodian is responsible for keeping the trust property, and specifically handling the trust property, cash management and related business. The investor is the holder of the beneficiary certificate, and through the purchase of the beneficiary certificate, he participates in the investment and enjoys the investment benefits.

The beneficiary certificate issued indicates the investor's interest in the investment.

2) Company type** is also called common**, which means that ** itself is a share**. Established in accordance with the Company Law, through the issuance of ** shares.

The pooled funds are invested in a variety of valuable **. The company's assets are owned by investors (shareholders), and the board of directors elects the board of directors, and the board of directors hires the manager first, and the manager is responsible for managing the business. The establishment of the company type shall be registered with the Ministry of Industry and Commerce and the ** Trading Commission, and shall also be registered in the place where the ** is issued.

The organizational structure of the company mainly includes the following parties: shareholders, companies, investment advisers or managers, custodians, converts, and lead underwriters.

The **investment** issued by the **management company in China is all contractual**. There are two types of private placements: contractual and corporate.

According to the classification of legal status, **can be divided into contract type and company type, and the so-called contract type** is actually the closed type and open ** that we come into contact with every day.

Take GF Innovative Medical's two-year holding period hybrid **investment** as an example:

Investors are: users who buy **;

The manager is: GF ** management;

The custodian is: Industrial and Commercial Bank of China shares****;

Therefore, when we buy, the funds will be transferred directly to the custodian bank, and the company is only responsible for issuing the operation order of selling, and will not directly contact the user's funds, so these three form a contract.

Extended Information: What are the characteristics of the contract type**?

The characteristic of the contract type is that the manager cannot directly contact the funds, and there will be no leakage of the management of the user's funds, even if it goes bankrupt because of poor management, it will not affect the safety of the user's funds, because the funds are held in custody in the bank.

Secondly, it is worth noting that the contractual investor has no decision-making and voice on how to operate, and can choose to redeem if he is not satisfied, but cannot ask the manager how to operate.

Contractual Sun Argument is a type of contract established on the basis of a contract. A contract is a basic legal document that stipulates the rights and obligations between the parties.

In China, the contractual type is established on the basis of the contract signed between the manager and the custodian; Investors become the holders of the shares and the parties to the contract after obtaining the shares, and enjoy the rights and assume obligations in accordance with the law.

According to the legal form, investment can be divided into contract, company, limited partnership and other forms. At present, China's ** are all contract-based**, and the company ** is represented by the investment blind company in the United States.

Contractual **, also known as unit trust fund** (unit trust fund), refers to the establishment of a ** management company jointly funded by specialized investment institutions (banks and enterprises), and the ** management company as the settlor issues a beneficiary certificate in the form of a "trust deed" with the trustee - "** unit holding certificate" to raise idle funds in the society.

Contract** is an investment behavior organized on behalf of Somori based on a certain contract principle. It is composed of three parties: the principal, the beneficiary and the trustee.

The consignor is the setter of the investment, that is, the setting and organization of various types of investment, the issuance of benefits, the management of the funds raised by the trustee, and the specific investment use of the raised funds. The beneficiary is the holder of the beneficiary, which is an ordinary investor, who buys the beneficiary**, participates in the investment, becomes one of the parties to the contract, and enjoys the right to distribute the investment income.

The trustee is a trust company or a bank, and in accordance with the provisions of the trust deed, it specifically handles **, cash management and other related ** business and accounting business.

First, the front. Deed sales type, also known as unit trust, refers to the investor, the manager, and the custodian as the parties, and the establishment of a beneficiary certificate in the form of a contract.

2. Specific analysis.

3. Is the contractual type ** safe?

In the contractual type, the authority of the manager is relatively large, and the major investment decisions of investment, operation, management, and trading are all made by the manager alone.

There is also a lack of clear norms and constraints on the decision-making authority and operational behavior of contract-type managers in the current regulations.

On April 18, 2016, AMAC issued the Guidelines for Private Equity Investment Contracts in Deficit No. 1 (Guidelines for the Content and Format of Contractual Private Placement Contracts).

On the basis of the Interim Measures for the Supervision and Administration of Private Investment, the Guidelines further clearly stipulate 21 management obligations of **managers.

These provisions detail the management responsibilities of the ** manager, which is conducive to further improving the security of the ** contract property.