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Futures Disclosure

In: Business and Management

Submitted By rigoletto81
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Futures contracts provide for the delayed delivery of the underlying instrument as a fixed price or for a cash amount based on the change in the value of the underlying instrument at a specific date in the future. Upon entering into a futures contract, the Fund is required to deposit with the broker, cash or securities in an amount equal to a certain percentage of the contract amount which is referred to as the initial margin account. Subsequent payments, referred to as variation margin, are made or received by the Fund periodically and are based on changes in the market value of open futures contracts. The unrealized app.dep on future contracts is disclosed in the statement of net assets under “Unrealised app/dep on futures contracts”. Changes in the market value of open futures contracts are recorded as unrealized app/dep in the SOP and changes in net assets under “Change in net unrealized app/dep on futures contracts”. Realised gain or losses, representing the difference between the value of the contract at the time it was opened and the value at the time it was closed, are reported at the closing or expiration of futures contracts in the SOP and and changes in net assets under “Net realized gain/losses on futures contracts”. Securities deposited as initial margin account are designated in the statement of investment and cash deposited is recorded in the statement of net assets. A receivable and/ or a payable to brokers for the daily variation margin is also recorded in the…...

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