投資學英文版課件：Chap004 Mutual Funds and Other Investment Companies

1、CHAPTER 4Mutual Funds and Other Investment CompaniesInvestment CompaniesPool funds of individual investors and invest in a wide range of securities or other assets.Services provided:Administration & record keepingDiversification & divisibilityProfessional managementReduced transaction costs2Net Asse

2、t ValueCalculation: Market Value of Assets - Liabilities Shares Outstanding3Types of Investment CompaniesUnit TrustsFixed portfolio of uniform assetsUnmanagedTotal assets have declined from $105 billion in 1990 to $29 billion in 20094Types of Investment CompaniesManaged Investment CompaniesOpen-EndF

3、und issues new shares when investors buy in and redeems shares when investors cash outPriced at Net Asset Value (NAV)5Types of Investment CompaniesManaged Investment CompaniesClosed-Endno change in shares outstanding; old investors cash out by selling to new investorsPriced at premium or discount to

4、 NAV6Types of Investment CompaniesOther investment organizationsCommingled fundsREITsHedge Funds 7Mutual Funds: Open-End Investment CompaniesMoney Market EquitySectorBondBalancedAsset Allocation and FlexibleIndex International8Table 4.1 U.S. Mutual Funds by Investment Classification9How Funds Are So

5、ldDirect-marketed fundsSales force distributedRevenue sharing on sales force distributedPotential conflicts of interestFinancial Supermarkets 10Costs of Investing in Mutual FundsFee Structure: Four typesOperating expensesFront-end loadBack-end load12 b-1 chargeFees must be disclosed in the prospectu

6、sShare classes with different fee combinations11Example 4.2: Fees for Various Classes(Dreyfus Worldwide Growth Fund)12Fees and Mutual Fund Returns:An ExampleInitial NAV = $20Income distributions of $.15Capital gain distributions of $.05Ending NAV = $20.10:13Table 4.2 Impacts of Costs on Investment P

7、erformance14Late Trading and Market TimingLate trading accepting buy or sell orders after the market closes and NAV is determinedMarket timing rapid in-and-out trading on stale net asset valuesNet effect is to transfer value from ordinary shareholders to privileged tradersMutual funds penalized for

8、improper trading. New rules to prevent these practices15Taxation of Mutual Fund IncomePass-through status under the U.S. tax codeTaxes are paid only by the investorFund investors do not control the timing of the sales of securities from the portfolioHigh portfolio turnover leads to tax inefficiencyA

9、verage turnover = 60%16Exchange Traded FundsExamples: “spiders”, “diamonds” and “cubes”Potential advantages:Trade continuously like stocks Can be sold short or purchased on marginLower costsTax efficientPotential disadvantages:Prices can depart by small amounts from NAVMust be purchased from a broke

10、r17Figure 4.2 Growth of U.S. ETFs over time18Table 4.3 ETF Sponsors and Products19Mutual Fund Investment Performance: A First LookPerformance of actively managed funds:below the return on the Wilshire index in 23 of the 39 years from 1971 to 2009Evidence for persistent superior performance (due to s

11、kill and not just good luck) is weak, but suggestiveBad performance more likely to persist20Figure 4.3 Diversified Equity Funds versus Wilshire 5000 Index21Table 4.4 Consistency of Investment Results22Information on Mutual FundsFunds prospectus describes:investment objectivesFund investment adviser and portfolio managerFees and costsStatement of Additional Informat