RSM230H1 Lecture 8: Investment Funds Review
Document Summary
Delegated fund management - intermediary hired to manage portfolio; indirect investing - investment funds. Investors do not directly own the shares in portfolio. Confidence index - mutual funds hold more cash when they are not confident in market or expect large redemptions. Usually p trades at 10% discount but moves to premium sometimes i. e. real estate investment trusts, income trusts. Etfs (exchange trade funds) i. e. state street"s spdrs, barclay"s iunits. Trade like shares of a stock like close-end. Net asset value (nav) = (market value assets - accrued liabilities) / Nav calculated at the end of each business day; based on closing market prices closing market prices. Buying shares with cash does not change nav. No need to hold cash for redemption s. In-kind share exchange; do not cash out redemptions. & no capital gains tax categories; often holds illiquid assets. Low trading costs & no forced trades & no capital gains tax.
