A fund that aims to outperform a stock market index is using active management. In active management, the manager makes intentional security selections and sometimes timing decisions with the goal of delivering returns above the chosen benchmark. Passive management, by contrast, seeks to mirror the index's returns rather than beat them. Open-ended and closed-end describe fund structures (how investors buy/sell and how shares are issued or traded) and can house either active or passive strategies, so they don’t define the management style.

Unit prices are determined from the net asset value per unit. The fund values all assets at fair value, subtracts liabilities to arrive at total net assets, and then divides that amount by the number of units outstanding to get the price at which investors subscribe or redeem. This ensures each unit represents a proportional claim on the fund’s net assets. Using a smoothed average would mask real-time value, and gross asset value would ignore liabilities, overstating the price. Cost plus mark up doesn't reflect the fund's actual value per unit.

Time value is the premium portion of an option’s price that sits above its immediate exercise value, reflecting the chance that the option could become more valuable before it expires. This extra value comes from the possibility of favorable price movements in the underlying asset before expiration. The more time there is until expiration and the higher the volatility, the greater this potential for further moves, so time value is larger. As expiration gets nearer, time value decays away (time decay). This is distinct from intrinsic value, which is the amount by which the option is already in the money if exercised now. Delta measures how much the option’s price changes with moves in the underlying, but it is not the time value itself; volatility influences time value, but the time value is the premium portion attributable to future movement.

Irish REITs are governed by rules that keep the portfolio centered on real estate. The asset side requires that a large portion of the total assets be invested in real estate assets (and cash) so the trust remains property-focused. Specifically, at least 75% of total assets must be in real estate assets or cash, allowing only a limited amount to be in other kinds of investments. On the income side, at least 75% of gross income needs to come from rents and other property-related income (such as mortgage interest on property or gains from the disposal of qualifying assets). These two requirements are the investment restrictions that shape what a REIT can hold and earn. There is also a distribution requirement, where a substantial portion of profits must be paid out to shareholders as property income distributions. However, this is a tax/compliance matter, not an investment restriction on how the assets are invested. So the statements that describe asset composition and income sources apply as investment restrictions, while the distribution rule does not.