博迪投资学Chap004章节.pptVIP

CHAPTER 4 Mutual Funds and Other Investment Companies 4-* Bodie, Kane and Marcus Slides by Susan Hine McGraw-Hill/Irwin Copyright ? 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Investment Companies These companies perform several important functions for investors: Administration record keeping Diversification divisibility Professional management Reduced transaction costs Net Asset Value Used as a basis for valuation of investment company shares Selling new shares Redeeming existing shares Calculation Market Value of Assets - Liabilities Shares Outstanding Types of Investment Companies Unit Trusts Managed Investment Companies Open-End Open-end: shares outstanding change when new shares are sold or old shares are redeemed Priced at Net Asset Value(NAV) Closed-End no change in shares outstanding unless new stock is offered Priced at Premium or discount to NAV Figure 4.1 Closed-End Mutual Funds Types of Investment Companies Continued Other investment organizations Commingled funds REITs Hedge Funds Mutual Funds—Investment Policies Money Market Equity Sector Bond Balanced Asset Allocation and Flexible Index International Table 4.1 U.S. Mutual Funds by Investment Classification How Funds Are Sold Direct-marketed funds Sales force distributed Revenue sharing on sales force distributed Potential conflicts of interest Financial Supermarkets Costs of Investing in Mutual Funds Fee Structure Operating expenses Front-end load Back-end load 12 b-1 charges distribution costs paid by the fund Alternative to a load Fees and Mutual Fund Returns Fees and Mutual Fund Returns:An Example Initial NAV = $20 Income distributions of $.15 Capital gain distributions of $.05 Ending NAV = $20.10: Table 4.2 Impacts of Costs on Investment Performance Trading Scandal with Mutual Funds Late trading – allowing some investors to purchase or sell later than other investors Market timing – allowing investors to buy or sell on stale net asset values Intern