Tài liệu miễn phí Quỹ đầu tư
Download Tài liệu học tập miễn phí Quỹ đầu tư
Risk Taking by Mutual Funds as a Response to Incentives
In general, you’ll have to pay tax on the money you make on a fund. Interest, dividends and capital gains are all treated differently for tax purposes and that will affect your return from an investment. Keep in mind that distributions are taxable in the year you receive them, whether you get them in cash or they are reinvested for you. However, if you hold your mutual funds in a registered plan, you won’t pay income tax on the money you make as long as that money stays in the plan. When you withdraw money from the plan, it will...
8/30/2018 1:40:20 AM +00:00
Sovereign Wealth Funds-State Investments On The Rise
Mutual funds are not covered by the Canada Deposit Insurance Corporation, the Autorité des marchés financiers’ fonds d’assurance-dépôts (Québec) or other deposit insurance. However, there are some safeguards in place to help protect investors. For example, a mutual fund’s assets must be held separately by a third party called a custodian. This is usually a chartered bank or trust company. Also, an independent auditor reviews and reports on the fund’s financial statements each year. If a firm goes bankrupt There are two funds in place that may help protect your investment if the firm you dealt with goes bankrupt....
8/30/2018 1:40:20 AM +00:00
Does Fund Size Erode Mutual Fund Performance? The Role of Liquidity and Organization
Sales charges are the commissions that you may have to pay when you buy or sell a fund. If you pay this charge when you buy the fund, it’s called an initial sales charge or front-end load. If you pay it when you sell, it’s called a deferred sales charge or back-end load. Some funds are sold on a “no-load” basis, which means you pay no sales charge when you buy or sell. Comparing sales charge options With initial sales charges, the cost can vary from firm to firm and may be negotiable. Shop around, and remember that every dollar you pay in commission is a...
8/30/2018 1:40:20 AM +00:00
Passive Investment Strategies And Efficient Markets
MERs can range from less than 1% for money market funds to more than 3% for some specialty funds. More complex funds tend to have higher MERs because the manager needs to do more to effectively manage the fund, and these funds are more costly to run. Index funds usually have very low MERs because duplicating an index involves less research and less trading. For this reason, they often outperform actively managed funds over the long term. However, keep in mind that a low MER doesn’t necessarily mean more money in your pocket. For example, you’ll make more on a fund...
8/30/2018 1:40:20 AM +00:00
The Performance and Prospects of European Venture Capital
You’ll pay a commission when you buy and sell an ETF. ETFs pay management fees and operating expenses. They may also pay trailing commissions. The fees and expenses for an ETF are often lower than what you would pay for a mutual fund. If an ETF simply follows an index, the manager doesn’t have to do as much research into investments or as much buying and selling of investments. Segregated funds Segregated funds are insurance products that combine investment funds with insurance coverage. You buy and sell segregated funds under an insurance contract. The contract comes with a guarantee that protects some...
8/30/2018 1:40:20 AM +00:00
A faulty model? What the Green Climate Fund can learn from the Climate Investment Funds
Securities regulators oversee Canada’s capital markets and the advisers who sell and manage securities traded in those markets. We strive to protect investors from unfair, improper and fraudulent practices while fostering a fair and efficient marketplace. You can contact your local securities regulator listed on page 20 to check the registration of an individual or firm, and to find out if they have been involved in any disciplinary actions. If you have a complaint If you believe that your adviser is not working in your best interests, you may want to make a complaint or consider finding another adviser....
8/30/2018 1:40:20 AM +00:00
Mutual Fund Reports
Investing in higher-risk, illiquid, targeted investments are part of an active portfolio and are more time-intensive than a passively managed portfolio. As such, pension funds that have adopted formal policies limit their total investments in this category to two percent of total assets in line with their broader strategic asset allocation policy. Pension funds seek portfolio diversification through a strategic asset allocation policy in which the fund or its consultants set a target percentage to each asset class—traditional and alternative investments. Allocating two percent of total assets to targeted investments contributes to the fund’s overall strategic asset allocation policy and...
8/30/2018 1:40:20 AM +00:00
Evaluation of European Mutual funds Performance
A public pension fund’s decision to invest in emerging domestic markets is driven first and foremost by its fiduciary duty and overarching mission to achieve competitive financial returns for its pension fund retirees and beneficiaries. Public pension funds, as with any institutional fund, seek to outperform the market. Investments targeted to EDM can both achieve good returns and help overall fund performance by diversifying the pension fund’s portfolio. A well-diversified portfolio is made up of a spectrum of asset classes as a means of spreading risk across classes. Targeted investments in EDM can play a part in this strategy to...
8/30/2018 1:40:20 AM +00:00
FUTURE INVESTMENT FUND
In addition to return and diversification goals, public pension funds target investments to benefit the economic climate where their beneficiaries live and work. Often public employees retire in their state. For example, the New York State and Local Retirement System (New York State Common) has 77 percent of retirees and beneficiaries that remain New York State resi- dents (NYSLRS 006). Pension funds therefore adopt targeted investment policies to seek competitive returns while also allowing a fund to create healthy communities benefiting their retirees and beneficiaries. ...
8/30/2018 1:40:20 AM +00:00
Amana Mutual Funds Trust
We estimate that there are approximately $11 billion of public-sector pension fund commitments (across all asset classes) in urban revitalization, emerging domestic markets, or, more broadly, economic development, through either formal targeted investment policies or one off investments as of 007. We also find that momentum for this type of investment seems to be picking up. Recently several new public-sector pension fund investors in urban revitalization include the Connecticut Retirement Plans and Trust Funds (CRPTF), Contra Costa County Retirement System, Los Angeles City, County, Fire and Police, and increased investment from CalPERS, CalSTRS, New York City and State (moving into...
8/30/2018 1:40:20 AM +00:00
Investment Intermediaries in Economic Development: Linking Public Pension Funds to Urban Revitalization
One significant obstacle pension funds face is a history of failed economically targeted investments (ETIs) from the 1980s that have resulted in negative perceptions of investments in the underserved markets. In part, many of those failed investments were driven by an overly aggressive effort to achieve the social benefits first, and the market rates of return came second. To make matters worse, critics argue that ETI investments are prone to political interfer- ence (Romano 1993) and can distract pension funds from their mission. They argue that these investments are politically motivated and can be referred to as “Politically Targeted Invest- ments—PTIs,” in...
8/30/2018 1:40:20 AM +00:00
Climate Investment Funds
Some critics also view these investments as running counter to the fund’s fiduciary duty. While public-sector pension funds are exempt from ERISA (1974 federal law over private pension funds) and are governed by varied state laws, ERISA standards and its treatment of economically targeted investments (ETIs) are cited as a transferable legal framework. The Department of Labor issued an interpretative bulletin (1994) stating that private pension funds may pursue ETIs as long as they meet standard prudent investment guidelines and seek appropriate risk/return characteristics (U.S. Department of Labor 1994). ...
8/30/2018 1:40:20 AM +00:00
Investment Companies How the Dodd-Frank Act Should Affect Mutual Funds, Including Money Market Funds
Other obstacles include pension fund consultants (gatekeepers) who may not be inclined to track targeted investments because they are not an established asset class, or they are more time consuming and costly, or pension funds themselves may not have dedicated staff to review and monitor targeted investments. By far, however, the main problem with pension funds making targeted investment in the emerging domestic markets is that the deals are too small, hard to find, and require in-depth knowledge of what a community needs for its improvement....
8/30/2018 1:40:20 AM +00:00
Understanding mutual funds
The investment in stock market is increasing at a faster rate in the recent years because of FIIs, FDIs, Stock market awareness etc. investment in Debentures, Bank Deposits, are not so attractive because of less amount of interest, as in real terms the value of money decreases over a period of time. The other option is to invest money in stock market, but a common man is not much aware of market and he is not much component enough to understand the functions of stock market and also it is an expansive proposal. The question to be answered is:...
8/30/2018 1:40:20 AM +00:00
An Empirical Study on Performance of Mutual Funds in India
Stock market plays a very vital role in developing economy in India. It is also attracting the rural people in recent years. Investors usually perceive that all capital market investment avenues are risky. Based on objectives and risk bearing capacities, investors go for different investment alternatives. Among the various investment possibilities, mutual fund seems to be viable for all kind of investors as it is considered to be a safer mode of investment. This study is an attempt to understand the performance of share market and to analyze the correlation of performance of mutual funds with market indices like...
8/30/2018 1:40:20 AM +00:00
OECD Working Papers on Insurance and Private Pensions No. 12: Pension Fund Investment in Hedge Funds
Title IV of the Act - entitled “Regulation of Advisers to Hedge Funds and Others”1 - eliminates the “private adviser” exemption from registration under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). The “private adviser” exemption, formerly contained in Section 203(b)(3) of the Advisers Act, generally exempted from SEC registration any investment adviser that, in the course of the preceding twelve months, (i) had fewer than 15 clients and (ii) did not hold itself out to the public as an investment adviser or act as an investment adviser to any registered investment company or business development...
8/30/2018 1:40:20 AM +00:00
RECENT TRENDS AND REGULATORY IMPLICATIONS IN SOCIALLY RESPONSIBLE INVESTMENT FOR PENSION FUNDS
In addition, the Act significantly narrows the exemptions from registration contained in (i) Section 203(b)(1) of the Advisers Act (which generally exempts from SEC registration intrastate advisers) to expressly exclude investment managers that advise Private Funds, and (ii) Section 203(b)(6) of the Advisers Act (which generally exempts from SEC registration advisers registered with the Commodities Futures Trading Commission (“CFTC”) as commodity trading advisers) to limit that exception to advisers who do not “predominately” provide securities-related advice. Under the Act, the SEC is required to take into account the size, governance and investment strategy of Private Funds when prescribing regulations...
8/30/2018 1:40:20 AM +00:00
Exchange-Traded Funds Challenging the Dominance of Mutual Funds?
The Act requires the SEC to share any Private Fund Information filed with, or provided to it under the Advisers Act, with the Oversight Council and other federal departments, agencies or self-regulatory organizations. The SEC may not withhold any Private Fund Information from Congress, and must comply with any proper requests for Private Fund Information made by other U.S. federal departments, agencies, or self-regulatory organizations. The Act requires the Oversight Council or other recipient of such information to keep such information confidential, and specifically exempts the Oversight Council, the SEC, and any other recipients of Private Fund Information...
8/30/2018 1:40:20 AM +00:00
INVESTMENT FUNDS: An overview of our practice
In addition, the Volcker Rule does not apply to Banking Entity’s investing in or sponsoring hedge funds or private equity funds that occur solely outside the United States as long as (i) no ownership interest in such funds is offered to U.S. residents, and (ii) the Banking Entity is not directly or indirectly controlled by another Banking Entity that is organized under the laws of the United States or a U.S. state). Under the Act, the Federal banking agencies, the SEC, the CFTC and the Board of Governors of the Federal Reserve System (the “Fed”) will coordinate to...
8/30/2018 1:40:20 AM +00:00
Investment Style and Performance in The Global Real Estate Mutual Fund Market
Putting some real numbers around this provides more color. A fund with $200 million in AUM and zero or negative performance would generate revenue of $3 million. A return of 5% bumps the total revenue up to $5 million. With a 7.5% return, the fund’s revenues are $6 million: $3 million from the management fee and $3 million from the performance fee. Beyond the 7.5% performance mark, the incentive fee becomes the primary revenue contributor. The performance fee effect is what makes the hedge fund model so appealing and unique. Where- as traditional asset management models derive revenues almost exclusively based...
8/30/2018 1:40:20 AM +00:00
Voucher Privatization with Investment Funds: An Institutional Analysis
Looking more closely at the revenue inputs, two clear con- cepts emerge regarding the hedge fund business model. First, because hedge funds can be opportunistic with how they invest, both the manager and investor stand to benefit tremendously when the manager performs well. Second, there is only one consistently reliable revenue input for funds: the management fee. Not surprisingly, the manag- ers we work with who are most sustainability-minded think of their revenues in terms of their management fee alone. In fact, we recommend that a conservative place to start with the hedge fund business model is to base revenue expectations on...
8/30/2018 1:40:20 AM +00:00
Variable Annuities - What You Should Know
When companies calculate their breakeven points, they often come at it from the perspective of how much revenue they require to cover their expenses: “If we don’t sell $2 million worth of widgets this year, we’ll face a shortfall and we’ll need to downsize.” Similarly, a hedge fund manager may ask: “What level of assets and performance do I need to cover my expenses?” However, the hedge fund business model allows for a different approach. Since hedge funds have a fixed revenue stream – their management fee – and since they know their current level of AUM, they can work...
8/30/2018 1:40:20 AM +00:00
UBS Balanced Investment Fund: Product Disclosure Statement
The $200 million AUM fund described earlier could therefore base its annual revenue projections around its $3 million management fee (i.e., 1.5% of AUM) and set its expense caps accordingly. Dur- ing a strong-performing year the fund will run with a surplus which, like other businesses, it can use for capital expenditures, incentive bonuses, cash reserves and so forth. A start-up fund can apply the same principal based on realistic AUM assumptions. (For most funds, “re- alistic” start-up capital consists of investments by partners, friends and family.) A fund with $20 million in start-up capital and a 1.5 and 20 arrangement could...
8/30/2018 1:40:20 AM +00:00
Understanding Mutual Fund Strategies and Fundamental Risk
It’s also important for managers of start-up funds to understand the numerous expenses associated with operating a hedge fund. As an example, many funds – like the $20 million fund described above – cannot afford a non-bundled third-party vendor’s order management system (OMS), risk management product, aggregation service, trade allocation module and attribution tools. Once a fund understands its expenses, it can determine exactly the asset level and performance combination necessary to cover those expenses and have an adequate profit. For a prospective start-up fund, this analysis will determine whether the business plan is realistic or needs refinement before it...
8/30/2018 1:40:20 AM +00:00
Mutual Funds: What You Need To Know
It’s important to understand why some funds target operating in the green zone, and why other funds may intentionally operate in the yellow or red zones. The green zone calculus is simple: when a fund maintains fixed expenses that are lower than its fixed revenues, it operates with a margin of safety. In a green zone fund, both the fund and its investors have a reasonable cushion to ride out difficult periods of low or no performance, and the fund operates with less business risk. In other cases, a manager may wish to operate in the yellow or even red...
8/30/2018 1:40:20 AM +00:00
Investment Funds The Right Model for Every Type of Investor
For instance, based on the pure management fee model described above, a fund with a 1.5% management fee and fixed expenses of $600,000 would break even at $40 mil- lion in AUM. By decreasing fixed expenses by $60,000, or 10%, the fund’s breakeven AUM drops by $4 million to $36 million. Stated differently, $15,000 in fixed expenses equates to $1 million in AUM. In some cases, reducing fixed expenses may mean cutting excess and non-core spending across the board – including measures such as reducing headcount, taking smaller space and cutting budgets by a prescribed percentage in each area. Sometimes such...
8/30/2018 1:40:20 AM +00:00
Pabrai Investment Funds
Like many businesses, hedge funds have to make difficult decisions about which tasks they should perform in-house and which they should outsource. Third-party service providers are available to do nearly all of a fund’s activities outside of making investment decisions. Our observation is that funds typically prefer to do as much of their work in-house as is possible. As a result, they tend to build up significant fixed costs. Some hedge funds are concerned that reliance on a third-party will increase risk or lead to an opera- tional or compliance failure. Many emerging managers come from larger funds and have therefore...
8/30/2018 1:40:20 AM +00:00
Starting a Forex Fund
Hedge funds rely on the economies of scale available through third-party providers all the time. They don’t borrow stock directly; they leverage the scale of their prime broker. They don’t issue commercial paper directly to finance long positions; they leverage the banks. Similar opportunities exist across a wide range of fund activities, from trading and technology, to human resource support, to risk manage- ment and reporting. By moving the burden of high-expense activities from their own P&L to a service provider, hedge funds can reduce their fixed expenses. The resulting model is leaner and more effective, and it can be scaled...
8/30/2018 1:40:20 AM +00:00
Wolfsberg Statement - Anti-Money Laundering Guidance For Mutual Funds And Other Pooled Investment Vehicles
Market conditions have never been better for setting up a forex fund. The number of forex funds and corresponding investors has grown as a result of expanding customer markets. Therefore, traders interested in starting a forex fund (or managing customer accounts) should familiarize themselves with the legal landscape as they consider earning a living in this profitable retail industry. An experienced and disciplined forex fund manager can earn a substantial income. Most forex funds to which we provide services are small. We often encounter people who have been trading accounts for others under the table and now...
8/30/2018 1:40:20 AM +00:00
The Business of Running a Hedge Fund
One key advantage to starting a forex fund is that the fund manager can legally accept compensation for his or her trading and advisory services. In many cases, the fund manager can legally advertise their services as well. This compensation can provide an excellent supplement to an existing income or it may allow trader to work as a paid forex adviser on a full-time basis. In our experience, many forex new fund managers also keep their day jobs for a while until they are certain this is the business they want to be in. Market conditions have never been better...
8/30/2018 1:40:20 AM +00:00