| NAV | DERIVATIVE EXPOSURE | |
|---|---|---|
| UK EQUITIES | 100,000 | |
| FTSE 100 FUTURE | -50,000 | |
| NAV | 100,000 |
The fund has a NAV of £100,000 and has invested 100,000 in UK equities.
It has also entered into a qualifying hedge of £50,000 short position through a FTSE 100 future.
AIFMD COMMITMENT EXPOSURE
The AIFMD Commitment Exposure is 50% – 50,000 net exposure after taking account of hedging. In other words, the portfolio is 50% deleveraged.
UCITS GLOBAL EXPOSURE
The UCITS Global Exposure is zero. The FTSE 100 future is a hedge and hence gives zero derivative exposure.
FUNDS-AXIS VIEW
The AIFMD approach is preferable.
It is equally important to know where funds are deleveraged, as this helps understanding whether they are meeting their investment objectives.
