A question from Egypt

Q – What is a third party sponsored mutual fund? – S.N., Egyptian Capital Market Authority

A – Very nice to hear from someone in Egypt, a country I have visited on two occasions and greatly enjoyed.

A third party fund is one that is sold by a financial institution that is not one of their own products. For example, in Canada all the major banks have their own lines of mutual funds. Using the Royal Bank as an example, these would be the Royal Funds.

But the banks have found that there is a demand for one?stop shopping, so they now also offer access to mutual funds from other companies, such as Fidelity and AIM. These are called third?party funds. – G.P.