Gavin and Lara are planning to invest $36,000 into the UMA China Growth Segregated Fund. While they
Question:
Gavin and Lara are planning to invest $36,000 into the UMA China Growth Segregated Fund. While they think that the Chinese market will perform well, the manufacturing index has declined and they want to be able to lock in returns when Chinese markets are up. They are considering their reset options. Which of the following is a correct statement about reset features?
a)The term to maturity of a segregated fund without a reset feature will be longer.
b)The reset occurs at the scheduled intervals, whether the market value increases or declines.
c)The management expense ratio (MER) of a segregated fund with a reset feature will be higher.
d)The value of the guarantee remains the same, whether the reset is utilized or not.
Operations and Supply Chain Management
ISBN: 978-0077403652
13th edition
Authors: F. Robert Jacobs, Richard Chase