Repurchase Transactions
Securities repurchase transactions involve the investor's sale of a large block of stock with a simultaneous commitment by Jakob Fugger to resell the securities back to the investor at a later date for a specific price. We utilize our longstanding relationships with international securities trading firms to provide assurances to investors that their securities will be available for resale to them on the designated date.
To further eliminate any uncertainties, all transfers in a securities repurchase transaction are conducted electronically on a delivery-versus payment basis. Investors pay a defined repurchase premium on that date as consideration for those assurances, and that premium will affect the total return that the investor realizes.
An investor might consider participating in a securities repurchase transaction when he or she is willing and able to transfer full legal and equitable title to the securities to Jakob Fugger until the repurchase date, at which time the full legal and equitable title is transferred back to the investor. We take no position and make no recommendations regarding the benefits or adverse consequences of that title transfer, and direct investors to determine those benefits and consequences for themselves within the context of their asset environment.