Restrictions in a Mutual Fund

Author: Gemini Fund

August 14, 2015

WHAT ARE THE RULES AND RESTRICTIONS A 1940 ACT MUTUAL FUND NEEDS TO FOLLOW?

Diversification: 50% of a mutual fund’s assets must be invested in diversified assets. This means 50% of a fund’s assets must be in holdings of 5% or less. A mutual fund can also satisfy the diversification requirement by investing in other registered investment companies, such as mutual funds or exchange-traded funds (ETFs). Cash and cash products are always considered a diversified investment.

Leverage: Mutual funds cannot exceed 33% leverage. This rule refers to leverage used by the fund itself and not to any underlying funds. The underlying investments can use leverage, and levered ETFs can be a useful part of a portfolio.

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Porting Performance

Author: Gemini Fund

August 14, 2015

When hedge fund managers or advisors with separately managed accounts (SMAs) consider launching a mutual fund, they often ask similar questions. Can performance be ported over from a hedge fund or SMA strategy to the mutual fund for marketing purposes? What are the rules about porting or using past performance?

The answers to these questions are complex. We’ll discuss some of the issues below and if you have further questions, please reach out to us anytime.

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Switching Fund Administrators

Author: Gemini Fund

August 14, 2015

Why do firms delay a move to a stronger service partner as they grow? Most often, it is the fear of a conversion. For mutual funds, a well-planned, comprehensive and timely conversion plan, focused on your most important clients – shareholders, RIA’s, wirehouses, institutional investors and platforms – will yield a well-executed conversion that is seamless (and possibly invisible) to them.

Moving your fund administration, accounting and transfer agent services is a process, but it
doesn’t need to be a difficult one. Every conversion has common processes but unique details.

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Mutual Fund Technology

Author: Gemini Fund

March 3, 2015

Gemini Fund Services, LLC (Gemini Fund) has been a fund administrator, accountant and transfer agent for over 30 years. Our commitment to our customers has always been to provide accurate and timely service and to be responsive to our clients’ needs, and to the needs of their customers, every day.

Making sure you have the right tools to be agile and responsive to customer needs is why we continue to build on our decade-long partnership with Envision Financial Systems and its PowerAgent system for our transfer agent. It’s also why in 2015, we are converting our fund accounting system to InvestOne by SunGard. It’s important to us that our technology is top notch, providing us accurate information that we pass onto your fund seamlessly.

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How Alternatives are Changing the Landscape of Investing

Author: Gemini Fund

December 12, 2014

The development of alternative rock music in the 1980s and ‘90s changed music forever. The name “alternative rock” is an umbrella term for underground music that emerged in the wake of punk rock in the mid-80s. According to various definitions, alternative music includes everything from the gloomy soundscapes of gothic rock to the jangling guitars of indie pop to the dirty guitars of grunge to the revivalism of Britpop.

Alternative investments have also been around for decades, but they have not become mainstream until now. Alternative mutual funds are relatively new and gaining popularity. These are publicly offered, SEC-registered funds that use investment strategies which differ from the buy-and-hold strategy typical of mutual funds. Compared to a traditional mutual fund, an alternative fund typically holds less traditional stock/bond investments and employs more complex trading strategies.

Alternative investments, much like alternative music in its beginnings, are still not completely understood by a majority of investors. Searching for something new that can offer them different risks than their normal investments, investors are starting to flock to alternative mutual funds, much like followers of mainstream rock music flocked to the bands playing in small clubs and recording on indie labels.

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