40+ CITCO Repeated Interview Questions & Answers

Citco is a large privately owned global hedge fund administrator. It is headquartered in Tortola in the British virgin islands. It is the world's largest hedge funds administrator. Citco was founded in the year 1948. Fund managing over 1$ trillion in assets under administration. The CEO of Citco is Christopher Smeets. Let's dive into the important interview questions. Find Citco jobs and apply here.

CITCO Technical Questions

Q1. About CITCO company?

A: Citco is a large privately owned global hedge fund administrator. It is the world’s largest hedge funds administrator Citco was founded in 1948. Fund managing over 1$ trillion in assets under administration.
The CEO of CITCO is Christopher Smeets. (Verify once)

Q2. NAV and What are the types of NAV?

A: The value of the net asset (NAV) is defined as the value of the assets of the fund minus the value of its liability. In regard to mutual funds, the term ‘net asset value’ is widely used. It is a measure to calculate the value of the assets in funds. NAV is commonly used as a per-share value calculated for a mutual fund.

Types of NAV:

Daily net asset valuation
Basic calculation of Net Asset Value
Total Assets – Total Liabilities
The formula for the NAV = --------------------------------
Total no of outstanding units

Q3. Difference between Mutual funds and Hedge funds

A: Mutual funds are regulated investment products offered to the public and available for daily trading. Where Hedge funds are private investments that are only available to accredited investors. Hedge funds are known for using higher-risk investing strategies with the goal of achieving higher returns for their investors.

Q4. Present Sensex value

A: Do Google for the current Sensex value

Q5. About Hedge funds in detail

A: Hedge funds are another name for investment partnerships. The meaning of the word ‘Hedge’ is protecting oneself from financial losses; thus, Hedge funds are designed to do so. Although a risk factor is always involved, it depends on the return. The more the risk, the higher the return.

Hedge funds are alternative investments done by pooling funds involving several strategies to earn high returns for the investors. Hedge funds can be used for a range of securities compared to mutual funds. Hedge funds work for long & Short positions strategies which means investing in long positions i.e., buying stocks as well as short positions which means selling stocks with the help of borrowed money and then buying again when the price is low.

Q6. Corporate actions

A: A company initiates several actions, apart from those related to its business, that have a direct implication for its shareholders. These include sharing of surplus or profits with the shareholders in the form of dividends, changes in the capital structure through the further issue of shares, buyback, mergers and acquisitions, delisting, raising debt, and others. In a company that has made a public issue of shares, the interest of the minority investors has to be protected.

Mainly there are 2 types of corporate actions.
(i) Mandatory corporate actions include
a. Dividends
b. Bonds
c. Stock Split
d. Reverse Split
e. Mergers & De-Mergers
(ii) Non-Mandatory corporate actions include
a. Right issue
b. Buyback offers

Q7. KYC (Know Your Customer) and AML (Anti Money Laundering)

A: The Know Your Customer or Know Your Client guidelines in financial services require customer identification and screening, and ensuring you understand their risk to your business. To ensure that bank services are not misused.

AML – Anti Money Laundering. AML refers to all efforts involved in preventing money laundering. Such as stopping criminals from becoming customers and monitoring transactions for suspicious activity.

Q8. Full name of CITCO

A: Citco, also known as the Citco Group of Companies and the Curacao International Trust Company (CITCO).

Q9: Working Capital

A: Working Capital also known as Net Working Capital (NWC) is the difference between a company’s current assets – Such as cash, Accounts receivable, customers unpaid bills, and inventories of raw materials and finished goods and current liabilities such as accounts payable and debts. Net Working Capital = Current Assets – Current Liabilities.

Q10. Types of Trade in Mutual Funds

A: When you buy or redeem a mutual fund, you are directly purchasing and selling with the funds. Whereas with ETFs and stocks, you are trading on the secondary market. When you initiate a trade to buy or sell mutual funds shares it will be executed at the next available net asset value. Most mutual funds fall into 4 main categories

Money market funds
Bond funds
Stock funds
Target date funds

Q11. About IR Data processor with Example

A: The investors (IR) department is a division of a business, usually a public company, whose job it is to provide investors with an accurate account of company affairs. This helps private and institutional investors make informed decisions on whether to invest in the company. (IR) Department and work to communicate with investors, shareholders, government organizations, and the overall financial community.

Q12. About Bond Market

A: The bond market refers broadly to the buying and selling of various debt instruments issued by a variety of entities. Corporations and government issue bonds to raise debt capital to fund operations. In return, they promise to pay the original investment amount plus interest.

Q13. Types of Bonds

A: Some of the common types of bonds are

Zero – Coupon bond
Floating–rate bond
Convertible bonds
Amortization bonds
Callable bonds
Puttable bonds
Payments in kind (PIK) Bonds
Principal – Protected Note (PPN)
Inflation-Protected Securities

Q14. Types of Trade

Day Trading
Position Trading
Swing Trading
Short Term & Long-Term Trading

Q15. What is Private Equity

A: Private equity is an alternative form of private financing, away from public markets, in which funds and investors directly invest in companies. Private equity firms make money by charging management and performance fees from investors in a fund.

Q16. Trade Cycle

A: A trade cycle refers to the fluctuation in economic activities especially in employment, output and income, prices, profits, etc. It has been defined by different economists. According to Mitchell, the “Business cycle is of fluctuations in the economic activities of organized communities”

Q17. What is investment and capital market

A: An investment involves putting capital in bonds, stocks, real estate property, or a business and hopes of a greater payoff in the future than what was originally put in.

Journal entry: Cash a/c --------Dr
To investor a/c

Q18. Derivatives

A: A capital market is a place where buyers and sellers indulge in trade (buying/selling) of financial securities like bonds, stocks, etc. The trading is undertaken by participations such as individuals and institutions. Read full page here...

General/HR Questions

Note: Some of the answers to the questions, you will find here: Click to read

Self-introduction Click to read the answer
Family Background
How many emails can you respond to and reply to in a day?
Previous job role
Why I should hire you
A: Although I have no experience, I am serious and willing to learn anything. That is to be learned for the enhancement of the growth of the organization as well as the self.
I am also a hardworking, dedicated, trustworthy & Self-motivated person. Finally, I am confident I’ll be the best candidate for this position.