Unit 17 Money Management Business

Unit17 Money Management Business
Money Management
Banking, stock broking, and fund management are converging. For investment banking houses, money management business is not a question of whether to enter, but rather to "buy" or to "build". In 1970, only 7 of top 15 underwriters had affiliations with units that ran money. By 2003, nearly all major investment banks had drifted into fund management. Several factors have contributed to the growing importance of money management operations within investment banking business umbrella.
Money management business资金管理行业
Banking, stock broking, and fund management are converging.银行业、证券经纪业和资金管理业正逐渐趋同。

Converge: to come from different directions and meet at the same point to become one thing[≠diverge]:
For investment banking houses, money management business is not a question of whether to enter, but rather to "buy" or to "build. ".对投资银行来说，资金管理行业不是什么是否进入的问题，而是要去“买”还是去“新建”的问题。

In 1970, only 7 of top 15 underwriters had affiliations with units that ran money 1970年，顶级的15家承销商中只有7家拥有运营资金的附属机构。

By 2003, nearly all major investment banks had drifted into fund management. 2003年，几乎所有顶级的投资银行都介入了资金管理业务。

Drift: to move slowly
Drift into sth: to move, change, or do something without realizing it. 不知不觉的开始做某个事情
She was just drifting into sleep when her boss is coming in. 当她迷迷糊糊刚要睡着的时候，经理近来了。

（在这个句子中，nearly all major investment banks had drifted into fund management. 表达的意思是：几乎所有的顶级的投资银行都在不知不觉中介入了资金管理业务。

）
Several factors have contributed to the growing importance of money management operations within investment banking business umbrella.
A Contribute to
B : A 导致 B 的发生，A是B的原因
Several factors have contributed to the growing importance of money management operations
有几个因素导致了资金管理业务的重要性，或者说有几个因素是资金管理变的越来越重要的原因。

（好，我们再来看一下这句话中umbrella的意思，umbrella 本意是伞，在这里把investment banking比做一个大伞，在这个大伞下经营着很多的业务，money management就是其中之一.
译文：资金管理业务作为投资银行业务的一个分支，其重要性正日益增强。

导致这一现象的原因有以下几点：
First, it is to keep up with competition by providing a one-stop financial store. Running affiliated funds expands the range of products and services investment banks offer to clients. Second, it helps balance out banks' volatile income streams with a relatively stable .source of income. Affiliated funds provide support for Wall Street parents' underwriting business as well. Investment banks take in revenues to underwrite securities is sues and fee income with the help of fund management operations. It is one of the most attractive segments of the financial services industry. The total industry net assets have grown from $135 billion in 1980 to ,$4.49 trillion by December 1997. By the end of 2003, the assets of the U. S. ' s mutual funds grew to nearly $7 trillion.
First, it is to keep up with competition by providing a one-stop financial store. 首先是出于通过提供一步到位式金融服务(one- stop financial store，或称全方位金融服务) 从而保持自己竞争力的需要。

Running affiliated funds expands the range of products and services investment banks offer to clients.运营附属基金可以扩大投资银行向客户提供的产品和服务的范围；Second, it helps balance out banks’volatile income streams with a relatively stable source of income.
Volatile: 动荡不定的
Balance out: if two or more things balance out, the final result is that they are equal in amount, importance, or effect:
译文：其二，资金管理可以带来相对稳定的收入流，从而有助于抵消银行收入流的不稳定；
Affiliated funds provide support for Wall Street parents' underwriting business as well.附属基金也为其华尔街上的母公司的承销业务提供了支持，
Investment banks take in revenues to underwrite securities issues and fee income with the help of fund management operations.投资银行可以从承销证券发行得到收益，并通过经营资金管理业务获取费用型收入。

It is one of the most attractive segments of the financial services industry.资金管理是金融服务行业中最具吸引力的业务之一，
The total industry net assets have grown from $135 billion in 1980 to ,$4.49 trillion by December 1997.其行业的总净资产已经从1980年的1 350亿美元增加到了I 1997年12月的44 900亿美元。

By the end of 2003, the assets of the U. S. ' s mutual funds grew to nearly $7 trillion.到2003年年底，美国全国的共同基金资产已达到近7万亿美元。

Investment management business itself is undergoing radical reshaping. According to a widely read report from Goldman Sachs published in 1997, consolidation is the wave of the future. Within the next few years, the industry will emerge as a handful of dominant companies and some smaller niche players. To establish and secure a position in the marketplace quickly, Wall Street firms favor buying over the build-it-yourself approach.
Investment management business itself is undergoing radical reshaping.投资管理行业本身正在进行彻底的洗牌。

According to a widely read report from Goldman Sachs published in 1997, consolidation is the wave of the future.根据高盛公司1997年发布的一项读者面较广的报告，合并将在未来掀起高潮。

Within the next few years, the industry will emerge as a handful of dominant companies and some smaller niche players.在接下来的几年内，该行业将出现由少数几家占主导地位的公司和一些较小的专业公司组成的局面。

Niche来源于法语。

法国人信奉天主教，在建造房屋时，常常在外墙上凿出一个不大的神龛，以供放圣母玛利亚。

它虽然小，但边界清晰，洞里乾坤，因而后来被引来形容大市场中的缝隙市场。

在英语里，它还有一个意思，是悬崖上的石缝，人们在登山时，常常要借助这些微小的缝隙作为支点，一点点向上攀登。

20世纪80年代，美国商学院的学者们开始将这一词引入市场营销领域。

Niche Marketing—利基市场，是指在市场中通常被大企业所忽略的某些细分市场，但是很有发展潜力的市场。

Player: 在这里指公司。

To establish and secure a position in the marketplace quickly, Wall Street firms favor buying over the build-it-yourself approach.为迅速在华尔街上崛起并争得一席之地，华尔街上的公司更偏好买入(一家现成的投资管理公司)而不是采用自己新建(一家公司)的方法。

There are several important factors about the money management. First, the money management industry itself has been through restructuring in recent years. Second, commercial banks have been buying into asset management business as well. Third, investment banking houses are also in play.
There are several important factors about the money management. 在资金管理行业有几个重要的因素需要考虑：
First, the money management industry itself has been through restructuring in recent years.第一，资金管理行业本身近年来也一直在进行重组；
Second, commercial banks have been buying into asset management business as well.第二，商业银行也在通过收购进入资产管理行业；
Buy into: to buy part of a business or organization, especially because you want to control it. 收购
Third, investment banking houses are also in play.第三，投资银行业也已经参与进来。

Types of Money Management Operation
There are many types of investment management, including mutual funds, unit investment trusts, hedge funds, private client services businesses, leveraged buyout funds, and private equity funds. Private equity funds are funds that invest primarily in private equity such as venture capital. Leveraged buyout funds invest in corporate buyouts. Unit investment trust" is a registered investment company that buys and holds a relatively fixed portfolio of securities or assets. Units in the trust are sold to investors who receive a share of principal and interest or dividends. Unit investment trusts typically have a stated date for termination. Private client services business manages money for wealthy clients. Almost all investment commercial banks run private client services businesses. For example, Goldman Sachs has some 365 brokers who specialize in money management for wealthy clients managing more than $200 billion of investor’s money.
Types of money management operations资金管理业务运营的类型
There are many types of investment management, including mutual funds, unit investment trusts, hedge funds, private client services businesses, leveraged buyout funds, and private equity funds.投资管理有许多类型，包括共同基金、单位投资信托、对冲基金、面向私人客户的服务行业、杠杆收购基金和私募股权基金。

Private equity funds are funds that invest primarily in private equity such as venture capital.私募股权基金是主要投资于私募股权的基金，如风险投资基金。

Leveraged buyout funds invest in corporate buyouts.杠杆收购基金投资于公司收购业务。

Unit investment trust" is a registered investment company that buys and holds a relatively fixed portfolio of securities or assets.单位投资信托是一家经登记的投资公司，它购买并持有相对较为固定的证券或资产组合。

Units in the trust are sold to investors who receive a share of principal and interest or dividends.该信托中的各单位被出售给投资者，投资者则拿到一份本金和利息凭证或股利凭证。

Unit investment trusts typically have a stated date for termination. 单位投资信托一般有一个规定的终止日。

Private client services business manages money for wealthy clients. Almost all investment and commercial banks run private client services businesses. 面向私人客户的服务行业是为富有的客户管理资金，几乎所有的投资银行和商业银行都经营私人客户的服务业务。

For example, Goldman Sachs has some 365 brokers who specialize in money management for wealthy clients managing more than $200 billion of investor’s money.
比如，高盛公司有大约365名经纪人，他们专门为富有的客户管理资金，其为投资者管理的资金超过了2 000亿美元。

Hedge funds are unregistered, private investment pools bound by the investment agreement investors sign with the sponsors of the hedge funds. With the exception of anti-fraud standards, they are exempt from SEC regulation. The sponsors of a hedge fund generally are not subject to any limitations in portfolio selection, and are not required to disclose information about the hedge fund’s holdings and performance, even though there has been drive for disclosure on strategies and portfolios. The typical fee structure for a hedge fund is that the hedge fund manager takes a fee of 1% -- 2 % of net assets, plus 20 % incentive fees. Some have front-end charges as well. Most hedge funds impose a high minimum investment; a minimum investment of $250 000 or $500 000 is typical, though some have lower minimums and some have higher requirements.
Hedge funds are unregistered, private investment pools bound by the investment agreement investors sign with the sponsors of the hedge funds.对冲基金是一种无须登记的私募投资基金，它受投资者与对冲基金主办人之间签订的投资协议的约束。

Bound: be bound by a law, promise,agreement 意思是：受…的约束，负有…的义务
With the exception of anti-fraud standards, they are exempt from SEC regulation.除了必须受到反欺诈法的管辖外，它不受证券交易协会的监管。

Exempt免除，豁免
The sponsors of a hedge fund generally are not subject to any limitations in portfolio selection, and are not required to disclose information about the hedge fund’s holdings and performance, even though there has been drive for disclosure on strategies and portfolios.对冲基金的主办人在投资组合的方面一般不会受到任何限制，不必披露对冲基金的持仓情况和业绩表现方面的信息，尽管一直存在要求对冲基金披露策略和组合选择的倾向。

Disclose: =elicit 披露
The typical fee structure for a hedge fund is that the hedge fund manager takes a fee of 1% -- 2 % of net assets, plus 20 % incentive fees. Some have front-end charges as well.对冲基金的典型费用结构是对冲基金管理人收取净资产的1％～2％左右的费用，再加上20％的激励费，还有些基金收取前端费用。

Most hedge funds impose a high minimum investment; a minimum investment of $250 000 or $500 000 is typical, though some have lower minimums and some have higher requirements. 大多数对冲基金要求有较高的最低投资额，虽然这一要求有高有低，但通常的最低投资额是25万美元或50万美元。

Under the National Securities Markets Improvement Act of 1996, hedge funds can accept investment from an unlimited number of qualified individuals who hold at least $5 million in investments or institutions with $25 million in investments, in
addition to its 100 or fewer other nonqualified investors. However, it is prohibited from making a public offering of its securities. This is intended to limit participation in hedge funds and other types of high risk and high leverage pools to highly sophisticated investors.
Under the National Securities Markets Improvement Act of 1996, hedge funds can accept investment from an unlimited number of qualified individuals who hold at least $5 million in investments or institutions with $25 million in investments, in addition to its 100 or fewer other nonqualified investors.根据1996年美国《全国证券市场改良法》，对冲基金除了可以从其100个或少于100个的非合格型投资者手中接收投资外，还可以从符合资格的个人或机构手中接收投资，其中对个人资格的要求是至少持有500万美元的投资额，对机构的要求是至少持有2 500万美元的投资额，而对这两种投资者的数量都不加限制。

However, it is prohibited from making a public offering of its securities. 然而，法规仍禁止对冲基金公开发行其证券。

This is intended to limit participation in hedge funds and other types of high risk and high leverage pools to highly sophisticated investors. 这一规定旨在限制那些经验极其丰富、技术极其熟练的资深投资者对对冲基金和其他类型的高风险、高杠杆资产组合的参与。

Operation of Mutual Fund in America
背景介绍
美国的共同基金是一种公司型开放式基金，而我国目前的基金类型全部为契约型封闭式基金，这与我国证券市场的发展程度有很大关系。

随着我国证券市场的成熟与发达，共同基金将是我国基金的发展方向或样板。

事实上，国际市场的基金类型也是以开放式为主的，因此，了解共同基金或开放式基金的具体运作是非常必要的。

Open-end investment companies are so called because of their fluctuating capitalization.
As investors deposit money to purchase mutual fund shares, the fund's transfer agent issues new shares at the current NA V plus a sales charge, if any. If shares are tendered for redemption, the transfer agent cancels them and pays their NA V to the shareholder. Thus, if investors buy more new shares than they redeem, the number of outstanding shares rises. Conversely, when redemptions exceed sales, outstanding shares decline in number.(Redemption at net asset value precludes the possibility of mutual funds selling at a discount, as their closed-end cousins sometimes do.) Consequently, the number of shares of the typical mutual fund fluctuates frequently, often daily. This constant flux in capitalization has led to the application of the terms open end to describe mutual funds, and closed end to describe the type of Management Company that makes a one-time offering of shares.
Mutual Funds共同基金
Open-end investment companies are so called because of their fluctuating capitalization. 开放式投资公司之所以这样命名是因为它们拥有波动的资本总额。

As investors deposit money to purchase mutual fund shares, the fund's transfer agent issues new shares at the current NA V plus a sales charge, if any.
transfer agent: 销售代理人
当投资者出资购买基金份额时，基金销售代理人出售新的份额，（at表示以什么样的价格出售）以当前净资产值(NA V: net asset value)加上一定的销售费用(如果存在的话)
译文：当投资者出资购买基金份额时，基金销售代理人就以当前净资产值(NA V)加上一定的销售费用(如果存在的话)出售新的份额。

If shares are tender ed for redemption, the transfer agent cancels them and pays their NA V to the shareholder. 如果基金份额被要求赎回，销售代理人就购回这部分份额并按其净资产值向股东支付现金。

Redemption n. redeem v. 赎回
Thus, if investors buy more new shares than they redeem, the number of outstanding shares rises. 因此，如果投资者购买的新份额超过赎回的份额，基金的未清偿余额就增加。

Conversely, when redemptions exceed sales, outstanding shares decline in number. 相反，如果赎回超过销售，未清偿余额就减少。

Consequently, the number of shares of the typical mutual fund fluctuates frequently, often daily. 因此，典型的共同基金的份额数目总是频繁波动，经常每日如此。

This constant flux in capitalization has led to the application of the terms open end to describe mutual funds, and closed end to describe the type of Management Company that makes a one-time offering of shares. 资本总额的这种固有的不断变动导致了应用术语“开放式”来描述共同基金的特性，而“封闭式”用来描述那种一次性出售基金份额的管理公司。

Flux: a situation in which things are changing a lot and you cannot be sure what will happen
Flux=fluctuation
Term: 术语
Mutual funds are offered to investors either at NA V or at NA V plus a sales charge, usually called a load in industry usage. Those offered to investors at NA V are sold directly by the fund's distributor, often a captive organization of the management group that operates the fund. These groups have no commissioned sales force and thus invest all of the money an investor deposits. They are called no-load funds and are growing rapidly in both numbers and in assets under management.
Mutual funds are offered to investors either at NA V or at NA V plus a sales charge, usually called a load in industry usage. 共同基金或者以净资产值，或者以净资产值加销售费用——行业内部通常称为手续费，出售给投资者。

Those offered to investors at NA V are sold directly by the fund's distributor, often a captive organization of the management group that operates the fund. 以净资产值向投资者出售的那些基金直接由基金的分销商出售，分销商通常是经营基金的管理集团控制下的一个组织。

Captive: 被监禁的，被关押的
a captive organization：被控制的组织
These groups have no commissioned sales force and thus invest all of the money an investor deposits. 这些集团没有收取佣金的销售组织，因而投资者的出资全部用于基金投资。

They are called no-load funds and are growing rapidly in both numbers and in assets under management. 它们被称为不收费基金，其数量和所管理的资产规模都在迅速增加。

Funds that charge a sales load are both more numerous and generally better known to the investing public. They are sold through commissioned sales forces, including those of major brokers and insurance companies. Advertising budgets of these organizations are often substantial. More importantly, registered representatives of brokerage firms ordinarily do not get paid for selling no-load funds. Should an investor want to buy a mutual fund from a broker therefore, the chances of a recommendation featuring a no-load fund are rather small.
Funds that charge a sales load are both more numerous and generally better known to the investing public. 对投资公众来说，收取销售费用的基金不仅数量更多，也更为闻名。

They are sold through commissioned sales forces, including those of major brokers and insurance companies. 它们由收取佣金的销售组织出售，包括一些主要的经纪人和保险公司。

Advertising budgets of these organizations are often substantial. 这些组织的广告预算经常相当可观。

More importantly, registered representatives of brokerage firms ordinarily do not get paid for selling no-load funds. 更重要的是，经注册的经纪公司的代表们一般对出售不收费基金不能收取佣金.
Should an investor want to buy a mutual fund from a broker therefore, the chances of a recommendation featuring a no-load fund are rather small.因此，如果投资者想从经纪人手中购买共同基金时，得到经纪人以不收费基金为主进行的推荐的机会就相当小。

The sales load can range from as little as 1% or 2% to as much as 8.5%. The latter percentage was the industry standard for many years, but has been shrinking under the pressure of more aggressive advertising by no-load competitors and the increasing financial sophistication of the average investor. A charge of 4.5% to 5% is probably the most widespread.
The sales load can range from as little as 1% or 2% to as much as 8.5%.销售费用的范围小到1 ％或2 ％，大到8.5 ％。

The latter percentage was the industry standard for many years, but has been shrinking under the pressure of more aggressive advertising by no-load competitors and the increasing financial sophistication of the average investor. 后一百分比在过去的许多年曾经是该行业的标准，但后来日趋降低，这是由于来自不收费基金的更为进攻性的广告战和普通投资者的金融经验和技术逐渐成熟所带来的压力。

Shrink: to become smaller or to make sth to become smaller 缩水，收缩
(In this sentence, the percentage of the industry standard has been shrinking)
A charge of 4.5% to 5% is probably the most widespread.收取4.5 ％到5 ％的费用可能较为普遍。

The load fund industry has responded to these pressures by increasing some fees that are perhaps less obvious than the up-front sales charge. A number of load funds have reduced the initial charge to something like 3% or 4%, but added a "back-end load" which might tack on an additional 4% if the investor liquidates within a given period, for example, 48 months, aider purchase.
The load fund industry has responded to these pressures by increasing some fees that are perhaps less obvious than the up-front sales charge. 收费基金行业为适应这些压力，增加了一些比前端销售费用可能更为隐蔽的费用。

A number of load funds have reduced the initial charge to something like 3% or 4%, but added a "back-end load" which might tack on an additional 4% if the investor liquidates within a given period, for example, 48 months, after purchase.. 大量的收费基金已经将首次收费降低到3 ％或4 ％，但同时增加了“后续费用”它是指如果投资者在一定期间内要求赎回，比如在购买后的48个月内，则要收取4 ％的附加费用。

Tack on: v. 增补；附加
Liquidate:v. 停业清算，偿还债务(在这里理解为“赎回”)
the Purchase Methods of Mutual Fund
Purchase Methods
Mutual funds can be bought through a variety of means. The most popular method with investors is to buy in dollar amounts, such as $5 000 worth. The fund's transfer agent can confirm the purchase of fractional shares, typically up to 3 decimal places. Shares are not commonly delivered to investors so that distributions may be reinvested in new shares to achieve a compounding effect. Although individual stocks may offer dividend reinvestment plans, the mutual fund offers it, in effect, on an entire portfolio.
Purchase Methods购买方法
Mutual funds can be bought through a variety of means. 可以通过许多方式购买共同基金。

The most popular method with investors is to buy in dollar amounts, such as $5 000 worth. 对投资者来说最常见的就是以美元整数额购买，如5 000美元。

Worth: 表示价值多少，$5 000 worth:价值5000美圆
The fund's transfer agent can confirm the purchase of fractional shares, typically up to 3 decimal places. 基金销售代理人能够接受零额购买，通常可达到小数点后三位。

Shares are not commonly delivered to investors so that distributions may be reinvested in new shares to achieve a compounding effect. (基金支持的) 股票通常并不移交给投资人，这样能使收益分配再投资于新的股票以取得复合效应。

Although individual stocks may offer dividend reinvestment plans, the mutual fund offers it, in effect, on an entire portfolio. 尽管个股也可能提供股利再投资计划，但实际上共同基金是对整个投资组合提供这种计划。

Most load funds offer reduced sales charges to investors buying in dollar amounts above certain levels. The levels at which these charges come into effect are called breakpoints. If an
investor makes a purchase at or over the breakpoint the reduced sales charge applies to the entire purchase, not just the portion in excess of the breakpoint. Some funds also offer rights of accumulation which allow the investor to count the current market value of his holdings toward satisfaction of a breakpoint. This feature offers a reward to the small investor who may be loyal to the fund but never invests enough to meet the reduced sales charge requirement. For example, suppose an investor has a current market value in XYZ fund shares of $8 700 and wants to invest another $1 500. If the fund has a breakpoint at $10 000, the entire investment is made at the lower charge, because when added to his current holdings, the new investment carries him over the breakpoint. The investor does not receive any refund of previously paid charges, but all subsequent investments are made at the new, lower level until the next breakpoint is reached, where the process starts anew.
Most load funds offer reduced sales charges to investors buying in dollar amounts above certain levels. 当投资者购买基金的美元总额超过一定标准时，大多数收费基金向投资者收取的销售费用会逐渐降低。

The levels at which these charges come into effect are called breakpoints. 达到能使销售费用降低的投资额标准称为临界点。

If an investor makes a purchase at or over the breakpoint the reduced sales charge applies to the entire purchase, not just the portion in excess of the breakpoint. 如果投资者在临界点水平或超过此水平购买，则降低的销售费用就适用于全部投资而不仅仅适用于超过临界点水平的那部分投资。

Some funds also offer rights of accumulation which allow the investor to count the current market value of his holdings toward satisfaction of a breakpoint. 一些基金也提供积累的权利，它允许投资者依靠其持有的基金份额的当前市值总额达到临界点要求而享受费用降低的好处。

This feature offers a reward to the small investor who may be loyal to the fund but never invests enough to meet the reduced sales charge requirement.这种工具为那些可能对基金非常忠诚但其每次投资额从未达到可降低销售费用标准的小额投资者提供了一种回报。

For example, suppose an investor has a current market value in XYZ fund shares of $8 700 and wants to invest another $1 500. 例如，假设一个投资者拥有当前市值为8,700美元的XYZ基金份额，并想追加投资1 500美元。

If the fund has a breakpoint at $10 000, the entire investment is made at the lower charge, because when added to his current holdings, the new investment carries him over the breakpoint.如果该基金的临界点为l0 000美元，该投资者的投资就可以在较低的费用基础上进行，因为新的投资加入到他当前持有的总额中使得他的总投资超过了临界点。

The investor does not receive any refund of previously paid charges, but all subsequent investments are made at the new, lower level until the next breakpoint is reached, where the process starts anew.对于以前已经支付的费用投资者不会获得任何补偿。

但是所有随后的投资将在一个新的,较低的费用标准上进行，直到达到下一个临界点开始重新执行新的标准。

Most mutual funds can also be purchased in small amounts. Some funds require a minimum purchase amounts like $1 000 or $2 500. Subsequent purchases, however, can often be
made in much smaller amounts, like $50, or even less. Others have no minimum purchase requirement at all. Investors can usually open a voluntary accumulation plan or an open account. This allows the investor to make purchases at any time merely by mailing in a check or having the payment regularly deducted from a checking account. If pursued on a regular basis monthly, for instance ~the investor can take advantage of dollar cost averaging. The advantage of this system is that is leads to establishing a holding with a lower average cost per share than the average prices per share on the purchase dates.
Most mutual funds can also be purchased in small amounts. 大多数基金也能以小额资金购买。

Some funds require a minimum purchase amounts like $1 000 or $2 500. Subsequent purchases, however, can often be made in much smaller amounts, like $50, or even less. 有一些基金要求最低购买额，如1 000美元或2 500美元，然而随后的购买经常能在更小的金额基础上进行，如50美元甚至更少。

Others have no minimum purchase requirement at all. 有些基金根本就没有最低购买额要求。

Investors can usually open a voluntary accumulation plan or an open account.投资者通常可开立自愿积累计划或一一开放账户。

This allows the investor to make purchases at any time merely by mailing in a check or having the payment regularly deduct ed from a checking account. 它允许投资者随时购买基金而仅仅通过用支票寄款或定期地从支票账户上扣除的方式支付。

Deduct: to take away an amount or part from a total 扣除，减少
If pursued on a regular basis monthly, for instance ---the investor can take advantage of dollar cost averaging. 如果在定期的基础上购买——比如每月一次——投资者可以利用美元成本平均法。

The advantage of this system is that it leads to establishing a holding with a lower average cost per share than the average prices per share on the purchase dates.这种方法的优点在于能以低于购买日每股平均价的每股平均成本建立持有的基金资产。

For example, suppose an investor buys $100 in fund shares on the first of each month. Because the market price is bound to fluctuate, the payment will buy more shares when the price is low and fewer shares when the price is high. Suppose further that the market prices per share were $10, $11, $12, and $8 on each of the first 4 months of the plan. The investor would have purchased 10, 9.09, 8.33, and 12.5 shares, respectively. In other words, a $400 investment bought 39.92 shares, an average cost of $10.02 per share. The average price, on the other hand, was $10.25. The plan works, however, only if the market continues its customary long-term advance, and if the investor continues to make payments during those inevitable periodic (and frightening) declines which may last months, or even years.
For example, suppose an investor buys $100 in fund shares on the first of each month. 例如，假设一个投资者在每月的第一日买入100美元的基金份额。

Because the market price is bound to fluctuate, the payment will buy more shares when the price is low and fewer shares when the price is high. 由于市场价格肯定处于波动之中，因此，当基金价格较低时，就能买入较多的份额，而价格较高时买入的份额就较少。

Suppose further that the market prices per share were $10, $11, $12, and $8 on each of the first 4
months of the plan. 进一步假设，在本计划的头四个月中每个月的每股市价分别是10、11、12和8美元。

The investor would have purchased 10, 9.09, 8.33, and 12.5 shares, respectively. In other words, a $400 investment bought 39.92 shares, an average cost of $10.02 per share. The average price, on the other hand, was $10.25. 投资者将分别买入10、9.09、8.33和12.5份。

换句话说，400美元共买入39.92份基金，每股平均成本l0.02美元而平均价格是10.25美元。

The plan works, however, only if the market continues its customary long-term advance, and if the investor continues to make payments during those inevitable periodic (and frightening) declines which may last months, or even years.然而仅仅当市场继续他的常规的长期发展，并且在那些不可避免的周期性的(令人恐惧的)可能持续数月甚至数年的市场下跌期间投资者仍继续地进行定期支付时，该计划才能奏效。

Investors should, however, be wary of the "contractual" of "periodic payment plan." In this type of plan, the investor commits to a monthly payment of a set amount for a fixed period, for example, 120 payments spread over 10 years. Although if completed, such plans may produce beneficial results, their early cancellation often leads to a loss. This is because much of the sales charge for the entire plan (if completed) is deducted in the first few years. As much as 50% of the first year's payments can be deducted in sales charges, although 20% is probably more common. The plans are often sold to inexperienced investors who are unaware that a voluntary plan with no prepaid sales charge is usually available from the same fund.
Investors should, however, be wary of the "contractual" of "periodic payment plan." 然而，投资者应对“契约式”或“定期支付计划”持谨慎态度。

In this type of plan, the investor commits to a monthly payment of a set amount for a fixed period, for example, 120 payments spread over 10 years. 在这种类型的计划中，投资者承担了在固定时期内每月进行既定金额的支付的义务。

例如，在10年内支付120次。

Although if completed, such plans may produce beneficial results, their early cancellation often leads to a loss. 尽管如果计划正常结束可能给投资者带来有益的结果，但一旦计划提前结束，就经常会导致损失。

This is because much of the sales charge for the entire plan (if completed) is deducted in the first few years. 因为对于整个计划来说，大部分销售费用都已经在最初的几年内扣除了(如果计划完全执行的话)。

As much as 50% of the first year's payments can be deducted in sales charges, although 20% is probably more common. 投资者第一年的支付中可能有50 ％被扣减以支付销售费用，尽管20 ％的比例更为常见。

The plans are often sold to inexperienced investors who are unaware that a voluntary plan with no prepaid sales charge is usually available from the same fund.这些计划通常出售给那些没有经验的投资者，因为他们并不知道可以由同一家基金得到无须提前支付销售费用的自愿性计划。

Prospectus Requirement
Mutual funds are constant offerings of new issues. The buyer of mutual fund shares is buying directly from the issuer, not from a previous owner, such as an investor buying stock on the NYSE.。