MSI-Preferred Investment Fund, Ltd - 2. Glossary Of Terms

Administrator:
The company that maintains the Register of Shareholders and records of the Fund, produces monthly NAV reports, and liaises with shareholders.

Class A Shares:
The participating shares that represent equity ownership in the Fund. These are issued to the investor at their current NAV and have no voting rights.

Class B Shares:
The non-participating management shares of the Fund. These are issued to the Fund Manager and have exclusive voting rights.

Commercial Paper:
Debt obligations issued by established companies for their short-term working capital needs.

Domestic:
Of, in, or relating to The Bahamas.

Equities:
The shares or instruments of a company that indicate an interest in the assets of the company.

Fund Manager:
The company that sponsors the Fund and offers the Fund's shares for subscriptions.

Investment Account:
An account established with Montaque Securities International to reflect the value of each shareholder's ownership in the Fund.

Investment Advisor:
The professional money manager that provides the investment advice and management services to the Fund.

NAV (Net Asset Value):
The value of the Fund's assets, less its liabilities.

Open-end Mutual Fund:
A mutual fund with no specified subscription limit or closing date, and which redeems its own shares or units.

Redemption:
The repurchase of Class A shares by the Fund.

Registered Stock:
Long-term securities of The Bahamas Government, issued to finance its ongoing fiscal needs.

Shareholder:
Any individual, partnership, or corporation with a beneficial interest in the Fund through the holding of Class A shares.

Subscription:
The Application for shares in the Fund.

Treasury Bills:
Short-term securities of The Bahamas Government, with 91- and 182-day maturities.

Valuation Date:
The last business day of the month, when the Fund's NAV is computed, and subscriptions and redemptions are deemed effective.

Yield:
The rate of return on an investment.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances