A major investee pool refers to an investee pool that is designated to receive at least ten percent of the net asset value of a larger investment pool. This designation is important for understanding the allocation of resources within investment structures, particularly in the context of commodity pools.
This term is primarily used in the context of investment management and regulation, especially under the Commodity Futures Trading Commission (CFTC) guidelines. It is relevant for commodity pool operators and advisors who manage investment pools involving multiple investors. Understanding major investee pools can help users navigate compliance and reporting requirements effectively.
Here are a couple of examples of abatement:
Example 1: A hedge fund has a total net asset value of $100 million. If it allocates $15 million to a specific investee pool, that pool qualifies as a major investee pool because it exceeds the ten percent threshold.
Example 2: A commodity pool operator manages several investee pools. If one pool is allocated $12 million out of a total of $80 million, it is also considered a major investee pool. (hypothetical example)
| Term | Definition | Difference |
|---|---|---|
| Investee Pool | A pool of investments managed by a commodity pool operator. | A major investee pool specifically meets the ten percent allocation threshold. |
| Commodity Pool | A collective investment vehicle that invests in commodity futures. | A major investee pool is a specific part of a larger commodity pool. |
If you are involved in managing or investing in a commodity pool, it is essential to understand how major investee pools work. Ensure that you comply with relevant regulations and consider using US Legal Forms to access templates that can help you manage your investments effectively. If your situation is complex, consulting a legal professional is advisable.
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A major investee pool is any investee pool that is allocated at least ten percent of the net asset value of a larger pool.