Fee-based accounts
Fee-based accounts feature low and steady annual fees with little to no transaction costs. The financial advisor's compensation is directly related to the size of the assets rather than the level of trading activity.
Fixed-income arbitrage
An investment strategy that aims to profit from arbitrage opportunities in interest rate securities. The strategy will typically go long and short two related debt securities in an attempt to capture a converging spread, while limiting interest rate risk.
Front-end load
A front-end load is a commission or sales charge applied at the time of the initial purchase for an investment. It is deducted from the investment amount and as a result, it decreases the size of the investment.
Fund codes
Alphanumeric codes used to identify funds for purchases and redemptions in the investment management industry. For example, the BluMont Hirsch Performance Fund's fund code is BCC 500.
Fund manager
Fund manager (or “investment manager”) are the person(s) responsible for implementing a fund’s investment strategy and managing its portfolio activity.
Fund of funds
A fund of funds invests in a number of funds and fund strategies that generally are uncorrelated to each other. Generally, a fund of funds will have at least 20 separate funds under its umbrella of investments.
Fund sponsor/promoter
Handles marketing and client servicing duties for an investment fund.
Fundamental equity analysis
An equity valuation method that analyzes the fundamental characteristics of a stock in an effort to determine the intrinsic value of that security. Fundamental managers attempt to study everything that affects the value of a security such as financial statements, the management of companies and the impact of macroeconomic and industry conditions.
Futures contract
Traded on an organized exchange and based on the exchange's rules, a futures contract constitutes an agreement calling for the delivery of a commodity at a pre-determined future date at a price established at the time of contracting.
