12. Funds Management Flashcards Preview

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Flashcards in 12. Funds Management Deck (4)
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1
Q

Private Management Firm

A

Each investor has their own separate account with the firm, customised, client relationship

2
Q

Investment (Fund) Company

A

One portfolio providing a wide-range of investment solutions for all investors
-Issue shares representing the proportional ownership of the fund

3
Q

NAV (concept)

A

Net Asset Value: for an investment company is similar to the share price of a corporation’s common stock

  • Closed-end: stock trades on secondary market
  • Open-end: mutual funds, managers sell and redeem (buy back) shares at the NAV
4
Q

Load vs. No-Load Open-End Funds

A
  • The offering price for a share of a load fund equals the NAV of the share plus a sale charge
  • A no-load fund imposes no initial charges so it sell shares at the NAV