Difference between revisions of "Reserves"

Revision as of 13:48, 8 February 2014

Reserves are created when a proportion of Surplus is allocated to an account that provides working capital / protection against changes in the trading environment.

By default, a fixed amount or % of surplus (whichever is greater) is transferred to reserves each year, and part of the reserve is allocated to a Redemption Fund to fund the future redemptions (transfers) of members' Investor Shares.

Return to the FairShares Glossary.