北大汇丰金融市场课件Lec_04.ppt

Lecture 4: Mutual Funds Financial Markets, Fall 2011 Prof. Wei Cen * * * * * * * * * * * INVESTMENTS | BODIE, KANE, MARCUS INVESTMENTS | BODIE, KANE, MARCUS Copyright ? 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Clarification on Price-Contingent Orders Investment Companies Pool funds of individual investors and invest in a wide range of securities or other assets. Services provided: Administration record keeping Diversification divisibility Professional management Reduced transaction costs Net Asset Value Calculation: Market Value of Assets - Liabilities Shares Outstanding Types of Investment Companies Unit Trusts Fixed portfolio of uniform assets Unmanaged Total assets have declined from $105 billion in 1990 to $29 billion in 2009 Types of Investment Companies Managed Investment Companies Open-End Fund issues new shares when investors buy in and redeems shares when investors cash out Priced at Net Asset Value (NAV) Types of Investment Companies Managed Investment Companies Closed-End no change in shares outstanding; old investors cash out by selling to new investors Priced at premium or discount to NAV Types of Investment Companies Other investment organizations Commingled funds REITs Hedge Funds Mutual Funds: Open-End Investment Companies Money Market Equity Sector Bond Balanced Asset Allocation and Flexible Index International 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: Four types Operating expenses Front-end load Back-end load 12 b-1 charge Fees must be disclosed in the prospectus Share classes with different fee combinations Example 4.2: Fees for Various Classes(Dreyfus Worldwide Growth Fund) Fees and Mutual Fund Returns:An Example Initial NAV = $20 Income distributions of $.15 Capital gain distributions of $.05 Ending NAV = $20.10: