Large-scale outflows cause problems for commercial property funds because they are based on assets that are difficult to sell quickly when investors want their money back.
Oil companies' market valuations are based on "assets" whose value has been wiped out by a cruel twist of atmospheric physics.
Large-scale outflows cause problems for these funds because they are based on assets – in this case, commercial property – that are difficult to sell quickly when investors want their money back.
"There is a profound conflict of interest built into the industry's structure," he wrote, "one that grows out of the fact that the management companies are independently owned, separate from the funds themselves, and managers profit by maximizing the funds under management because their fees are based on assets, not performance".
In addition, some $541 million in new capital that the Antigua-based bank claimed to have injected in fact turned out to be based on assets the bank had already purchased in 2008 for $88.5 million, according to court documents.
(Fees for the bank were based on assets under management — real or imagined).
But that figure is based on assets, not earnings, and a far smaller number of residents earn income each year that would place them in the high bracket: some 46,000 people, or 1.3 percent of people filing taxes.
But they also increase investment advisory fees, which are based on fund assets.
And its derivatives operation, through the London-based OMLX, pales in comparison to the Frankfurt exchange's Eurex, which is the world's largest market for trading derivatives, the complex financial contracts whose values are based on underlying assets like stocks, bonds, commodities and currencies.
But some of the debts are based on underlying assets and some are not.
