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fonds à formule

English translation: formula-based fund

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
French term or phrase:fonds à formule
English translation:formula-based fund
Entered by: Stephanie Mitchel

19:45 Jun 26, 2008
French to English translations [PRO]
Bus/Financial - Investment / Securities / mutual funds
French term or phrase: fonds à formule
"Très bon placement des fonds à formule dans les deux réseaux. Au regard de la collecte réalisée par les réseaux [X] et [Y], l’appétit de la clientèle pour ces formules ne s’est pas démenti."
Stephanie Mitchel
United States
Local time: 07:10
formula-based fund
Explanation:
English translation used by the AMF.

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Note added at 11 hrs (2008-06-27 07:08:08 GMT)
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joehlindsay is right, they are (one type of) structured funds, and dubbing them "formula funds" would have been an obvious choice . . . but the regulator chose a different variant.
But they are not structured *because* they contain equity and debt securities; an ordinary balanced fund does that. The structuring has to do with risk transfer (via derivatives).
Selected response from:

rkillings
United States
Local time: 04:10
Grading comment
JL's answer was helpful but the AMF website was even more so! Thanks RK et al.
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +2formula-based fund
rkillings
4investment plan/( preset) plan for investment funds distribution
Anca Nitu
4structured fund, formula fund*
joehlindsay


  

Answers


2 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
placement des fonds à formule
investment plan/( preset) plan for investment funds distribution


Explanation:
I think you should read it like this :
Très bon placement des fonds
à formule
dans les deux réseaux
The "placement" is the one " avec la formule"not "les fonds"


see also this:

Garanti Actions ', un nouveau placement à formule au Crédit Mutuel
http://www.orange.fr/bin/frame.cgi?u=http://finances.orange....

I think it's rather "investment plan" in your context

Anca Nitu
Local time: 07:10
Native speaker of: Native in RomanianRomanian
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11 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +2
formula-based fund


Explanation:
English translation used by the AMF.

--------------------------------------------------
Note added at 11 hrs (2008-06-27 07:08:08 GMT)
--------------------------------------------------

joehlindsay is right, they are (one type of) structured funds, and dubbing them "formula funds" would have been an obvious choice . . . but the regulator chose a different variant.
But they are not structured *because* they contain equity and debt securities; an ordinary balanced fund does that. The structuring has to do with risk transfer (via derivatives).


    Reference: http://www.amf-france.org/documents/general/4718_1.pdf
rkillings
United States
Local time: 04:10
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 131
Grading comment
JL's answer was helpful but the AMF website was even more so! Thanks RK et al.

Peer comments on this answer (and responses from the answerer)
agree  joehlindsay: That is correct. I didn't explain myself well. There are also many devils in details in these, the derivatives are sometimes difficult to deal with, they usually have expiration dates, and I have only seen the term left untranslated in English documents.
9 hrs
agree  Timothy Rake: Could that also be expressed as an "indexed fund"?
835 days
  -> No. Les fonds indiciels simply track an index and don't guarantee any formula-based outcome.
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2 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
structured fund, formula fund*


Language variant: US EN

Explanation:
I think "fonds à formule" are a French product and don't exist in English speaking countries. They are "fonds commun d'investissement" (FCP) mutual funds and are based a on a basket of equities or an index. Some of them have guaranteed capital return. I would use the French term and explain it as uniquely French in a footnote.
You can find a French language explanation easily on the internet, but probably not an English equivalent. They are what is known in English as "structured" products. The term "formula investing" is used in English, and is what these funds do... they are structured and use a formula investing strategy, so i think you could dub them "formula funds" or "structured", but explain that they are not exactly equivalent to any US product. Of course, they are always introducing new investment products, so I may be wrong. I can't keep up with all of them. I enterd this before about an hour ago, buut for some reason it did not appear.


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Note added at 2 hrs (2008-06-26 22:38:47 GMT)
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I should add they can contain bonds and other debt instruments as well as equities, that's why they're "structured".

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Note added at 1 day1 hr (2008-06-27 20:57:22 GMT)
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Addendum: When I am not translating I work for a large Switzerland-based financial organization (investment bank, brokerage, wealth management, hedge funds, etc.). I have been advised that the term "formula based fund" only applies to "fonds à formule" with certain attributes, and not all fonds de formule are "formula-based" funds.

From the style of language in the quote, it looks like this is casual commentary and it's not necessary to split hairs, and formula-based fund, formula fund or structured fund would any be ok.

If the translation were a text of information upon which investors might rely for investment decisions, I would be more careful, split the hairs and pick the nit because incorrect assumptions might be conveyed..

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Note added at 1 day1 hr (2008-06-27 21:16:12 GMT)
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Please see the discourse on the redefinition of guaranteed/structured/formula-based funds by the AMF Commission des Opérations de Bourse at http://www.amf-france.org/documents/general/4449_1.pdf.

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Note added at 1 day7 hrs (2008-06-28 02:53:14 GMT)
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Yikes! I have had more feedback and withdraw my "agree" with "formula-based". The original "structured" I proposed is better.


    investopedia.com structured fund entry
    investopedia.com formula investing entry
joehlindsay
Local time: 06:10
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 22
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