GUANGZHOU (Fund China) – Clone Fund abroad is very common, can be divided into two forms: one is through derivative products to copy the target fund’s market performance; the other is the investment strategy replication.

The former mainly due to the use of the regulatory, and other causes not directly fund investment objectives of the circumstances, such as the Canadian investors can invest overseas pension funds have restrictions, Canadian investors who wish to have more S&P 500 Index Fund, then he can be through investment in the S&P 500 Index Fund and bypass copy restrictions.

The latter mainly in the use of funds for the success of the Company’s products replication, when a very successful fund – a large scale, high net worth, in order to better protect the interests of investors, fund managers manage and facilitate the operation of foreign fund management companies the fund often make copies. This type of replication is the general management by the same fund managers with the same orientation of investment, investment objectives, investment policies, investment strategy, risk preferences, such as mode of operation is similar performance.

Copyright Fund China 2009.

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