This list is not exhaustive and, in particular, when a fund manager has decided to outsource some of these tasks to an external entity, some or all of the Fund`s administrative activities can be characterized as “fund management.” Specific activities that are definitely not part of the management of the fund are those directly related to the marketing and development of a collective investment: prior to the attached decision, the Tribunal found that, although the administrative agreements did not expressly designate the applicants as third-party beneficiaries, the applicants satisfactorily intended to allow the application of measures by third parties. , since the administrative agreements are, in the first place, that the citco defendants provide a specific service directly to the applicants.  The Tribunal also found that the applicants reasonably asserted that there was a discrete group of potential investors known to managers and that the managers intended to rely on the NAV to invest in the funds.  In addition, the Tribunal found that the administrator who forwarded NAV statements to interested parties to investors was sufficient to assert a “binding requirement.”  The “credit crisis” of the early 2010s had a significant impact on fund management service providers. The NAV, which was to be independently calculated and declared by [the directors], was fundamental to the applicants` initial investment decisions, decisions to invest additional resources, and decisions to maintain investments over time. The number of shares the applicants received in exchange for their investment amounts depended on the calculations of the NAV [of the trustees]. The applicants` subsequent reported profits also reversed [the trustees`] calculations. Therefore, the applicants necessarily based themselves on the calculations of THE NAV [the administrator].  Fund managers often choose to outsource some or all of these activities to external specialized companies, such as the deposit bank of a fund.B. These companies are often referred to as fund managers. These administrative activities may include the following administrative functions, including “fund accounting functions.” Some of these positions may be specific to fund transactions in the United States, and others refer only to the question of whether the fund is an SEC-registered fund: according to some fund managers, any task required to maintain the fund, which does not fall within one of the two categories mentioned above, could be considered a fund management and could be a candidate for outsourcing.
Anwar v. Fairfield Greenwich (SDNY) is the main case related to the liability of fund managers for non-compliance with its NAV obligations.   This was a consolidated proceeding against the defendants, the complainants of investors whose investments in the Bernard Madoff Ponzi system were lost, who provided audit and hedge fund management services. The defendants were companies and individuals related to, among others, The Fairfield Greenwich Group, Citco Group Ltd (Citco) and GlobeOp Financial Services.   Investors accused the accused of collecting hundreds of millions of dollars in fees for their services, while ignoring warning signs that should have drawn attention to the existence of Madoff`s fraud. The complainants claimed that they had lost $7.5 billion.   The undersigned herethly confirms that he is an approved signatory to the IndexIQ Active ETF Trust (trust) and that the following funds will be included in the Management and Accounting Agreement of November 18, 2013 by the Trust and the Bank of New York Mellon.