FAQ
General
GeneralAre »BANTLEON bond funds« quoted on a stock exchange?»BANTLEON bond funds« are quoted every trading day on the Luxembourg Stock Exchange. Are the funds licensed for public distribution?»BANTLEON bond funds« are licensed for public distribution in Germany, Luxembourg and Switzerland. Who can buy »BANTLEON bond funds«?»BANTLEON bond funds« are suitable for any institutional investor for whom capital security is paramount and who always views yields in relation to risk. Investors include one sixth of all German savings banks and major cooperative banks, as well as specialist banks, insurance companies, pension funds and industrial companies. How are purchases and sales transacted?Fund units can be bought and sold on every trading day via the following banks:
BANTLEON BANK AG The purchase price is paid directly into the custodian bank in favour of the fund. Purchases or sales take place cash on delivery, with units being deposited into the investor’s designated securities account. As an alternative to deposition in a securities account, entry in the fund register of names held by the custodian bank is also possible. Can »BANTLEON bond funds« be acquired in favour of a special fund?As well as direct deposition of »BANTLEON bond fund« [units] in a securities account, they may also be booked to a special fund. All that is required to do this is to adjust the fund’s investment guidelines to the provisions of the German Investment Act, which has been in force since 1 January 2004 (see § 145 paragraph 2 InvG). The new Investment Act allows investment in a special fund with no upper limit. Can life assurance companies, pension schemes and pension funds invest restricted assets in »BANTLEON bond funds«?Due to their net asset value, governing rules and legal form as public funds, »BANTLEON bond funds« meet the statutory and supervisory requirements for the capital investment of the restricted assets of life assurance companies and pension schemes (§ 54 VAG) and pension funds (§ 115 VAG). Are »BANTLEON bond funds« suitable for the statutory reserves of social insurance schemes?In accordance with § 83 SGB IV, statutory health, accident, pension and long-term care insurance companies may make capital investments for statutory reserves in »BANTLEON bond funds«. SecurityWhat is the fund portfolio composed of?»BANTLEON bond funds invest exclusively in high-quality bonds, in particular government bonds and euro area Pfandbriefe. How is the solvency of the fund portfolio guaranteed?The reliable fund portfolio is very clearly and unambiguously regulated by the respective fund rules. In addition, each fund has a portfolio rating of the overall solvency of its portfolio which is published along with every fund report. The fund portfolio along with the individual rating is available daily (!) for scrutiny on the »BANTLEON BANK AG« client website. This means that every investor enjoys the greatest possible degree of transparency regarding their bond fund, including a view of its historical performance. Can foreign currency bonds be purchased?The management rules of »BANTLEON bond funds« do not permit investments in foreign currency assets. Where are the fund assets held?The custodian bank is UBS (Luxembourg) S.A., a wholly-owned subsidiary of UBS AG. AccountingWhere are the unit prices published?
How are »BANTLEON bond funds« carried in accounts?»BANTLEON bond funds« are carried under the balance sheet item »Shares and other non-fixed-interest securities«. The earnings are assigned to the associated income statement item (»Earnings from Shares and other fixed-interest securities«). An alternative is assignment to the item »Interest income«. The interest portion included in the unit price on purchase may be capitalised as »Purchased accrued interest«. How do banks value »BANTLEON bond funds« in connection with the major credit limits (Großkreditgrenzen) of § 13 and § 14 of the German Banking Act (Kreditwesengesetz – KWG)?The borrower within the meaning of §§ 13 and 14 KWG is specified in accordance with the »basic or alternative approach« in § 6 of the Regulation Governing Large Exposures and Loans of €1.5 Million (Großkredit- und Millionenkreditverordnung – GroMiKV). Under the basic approach the fund assets are treated as a borrower and are thus subject to the reporting and individual upper limits pursuant to § 13 KWG. Accordingly, the alternative approach is normally applied, whereby borrowers are the sole loan debtors in the fund assets in accordance with the procedure in Portfolio A. For the application of the alternative approach banks receive a monthly report stating the percentage shares of the individual debtors. Why are »BANTLEON bond funds« launched as public funds and what does this mean in relation to IAS/IFRS international accounting rules?The public fund legal form offers considerable advantages for institutional investors as compared to a special fund:
As regards the new international IAS/IFRS accounting rules which will in future apply to many investors, each security in a special fund must be valued separately. In contrast, in a public fund such as the »BANTLEON bond funds« the fund unit is carried in accounts as a unitary whole. ControllingHow does reporting take place?»BANTLEON bond funds« have deliberately been designed as standardised public funds and as such are much easier to control than a portfolio of many different directly held bonds. their individual requirements. The funds’ bond holdings, key indicators and cash flows can be input or imported into all standard IT systems. The portfolio rating puts on record the greatest possible degree of capital security for the decision-makers, departments and governing bodies of institutional investors. How do banks comply with Principle 1 (solvency weighting)?As with any bond the calculation is done automatically in the securities account by the responsible computing centre. The fund is thus included in the automated GSI calculation. The risk weighting is calculated on the basis of the actual fund assets. Is there a duty of disclosure in accordance with § 9 of the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG)There is no duty of disclosure in accordance with § 9 WpHG paragraph 1a sentence 2 in connection with the purchase of [units in a] public fund. How much strain is placed on investors’ risk budgets?The funds’ active management and concentration on high-quality bonds greatly reduces the volatility of the unit price. Depending on the management methods and investment goal the volatility as compared to directly held bonds is often significantly less, thus relieving the risk budgets of institutional investors. The respective key risk indicators will be made available to investors. |
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