投资学-MutualFunds
投资学题库Chap004备课讲稿
投资学题库C h a p004Chapter 04Mutual Funds and Other Investment Companies Multiple Choice Questions1.Which one of the following statements regarding open-end mutual funds is false?A. T he funds redeem shares at net asset value.B. T he funds offer investors professional management.C. T he funds offer investors a guaranteed rate of return.D. T he funds offer investors professional management and a guaranteed rate of return.E. T he funds redeem shares at net asset value and offer investors professional management.2.Which one of the following statements regarding closed-end mutual funds is false?A. T he funds always trade at a discount from NAV.B. T he funds redeem shares at their net asset value.C. T he funds offer investors professional management.D. T he funds always trade at a discount from NAV and redeem shares at their net asset value.E. N one of the options3.Which of the following functions do investment companies perform for their investors?A. R ecord keeping and administrationB. D iversification and divisibilityC. P rofessional managementD. L ower transaction costsE. A ll of the options4.Multiple Mutual Funds had year-end assets of $457,000,000 and liabilities of $17,000,000. Therewere 24,300,000 shares in the fund at year-end. What was Multiple Mutual's net asset value?A. $18.11B. $18.81C. $69.96D. $7.00E. $181.075.Growth Fund had year-end assets of $862,000,000 and liabilities of $12,000,000. There were32,675,254 shares in the fund at year-end. What was Growth Fund's net asset value?A. $28.17B. $25.24C. $19.62D. $26.01E. $21.566.Diversified Portfolios had year-end assets of $279,000,000 and liabilities of $43,000,000. IfDiversified's NAV was $42.13, how many shares must have been held in the fund?A. 43,000,000B. 6,488,372C. 5,601,709D. 1,182,2037.Pinnacle Fund had year-end assets of $825,000,000 and liabilities of $25,000,000. If Pinnacle'sNAV was $32.18, how many shares must have been held in the fund?A. 21,619,346.92B. 22,930,546.28C. 24,860,161.59D. 25,693,645.258.Most actively managed mutual funds, when compared to a market index such as the Wilshire5000,A. b eat the market return in all years.B. b eat the market return in most years.C. e xceed the return on index funds.D. d o not outperform the market.9.Pools of money invested in a portfolio that is fixed for the life of the fund are calledA. c losed-end funds.B. o pen-end funds.C. u nit investment trusts.D. R EITS.E. r edeemable trust certificates.10.Investors in closed-end funds who wish to liquidate their positions mustA. s ell their shares through a broker.B. s ell their shares to the issuer at a discount to net asset value.C. s ell their shares to the issuer at a premium to net asset value.D. s ell their shares to the issuer for net asset value.E. h old their shares to maturity.11.Closed end funds are frequently issued at a ______ to NAV and subsequently trade at a__________ to NAV.A. d iscount, discountB. d iscount, premiumC. p remium, premiumD. p remium, discountE. N o consistent relationship has been observed.12.At issue, offering prices of open-end funds will often beA. l ess than NAV due to loads and commissions.B. g reater than NAV due to loads and commissions.C. l ess than NAV due to limited demand.D. g reater than NAV due to excess demand.E. l ess than or greater than NAV with no apparent pattern.13.Which of the following statements about real estate investment trusts is true?A. R EITs invest in real estate or loans secured by real estate.B. R EITs raise capital by borrowing from banks and issuing mortgages.C. R EITs are similar to open-end funds, with shares redeemable at NAV.D. R EITs invest in real estate or loans secured by real estate and raise capital by borrowing frombanks and issuing mortgages.E. A ll of the options are true.14.Which of the following statements about real estate investment trusts is true?A. R EITs may be equity trusts or mortgage trusts.B. R EITs are usually highly leveraged.C. R EITs are similar to closed-end funds.D. R EITs may be equity trusts or mortgage trusts and are usually highly leveraged.E. A ll of the options are true.15.Which of the following statements about money market mutual funds is true?A. T hey invest in commercial paper, CDs, and repurchase agreements.B. T hey usually offer check-writing privileges.C. T hey are highly leveraged and risky.D. T hey invest in commercial paper, CDs, and repurchase agreements, and they usually offercheck-writing privileges.E. A ll of the options are true.16.In 2012 the proportion of mutual funds (based on total assets) specializing in common stockswasA. 21.7%.B. 28.0%.C. 44.8%.D. 73.4%.E. 63.5%.17.In 2012 the proportion of mutual funds (based on total assets) specializing in bonds wasA. 24.8%.B. 28.0%.C. 54.1%.D. 73.4%.E. 63.5%.18.In 2012 the proportion of mutual funds (based on total assets) specializing in money marketsecurities wasA. 21.7%.B. 28.0%.C. 54.1%.D. 73.4%.E. 23.2%.19.In 2012 the proportion of hybrid (bond and stock) mutual funds (based on total assets) wasA. 21.7%.B. 28.0%.C. 54.1%.D. 7.2%.E. 22.6%.20.Management fees and other expenses of mutual funds may includeA. f ront-end loads.B. b ack-end loads.C. 12b-1 charges.D. f ront-end and back-end loads.E. f ront-end loads, back-end loads, and 12b-1 charges.21.The Profitability Fund had NAV per share of $17.50 on January 1, 2012. On December 31 of thesame year, the fund's NAV was $19.47. Income distributions were $0.75, and the fund had capital gain distributions of $1.00. Without considering taxes and transactions costs, what rate of return did an investor receive on the Profitability Fund last year?A. 11.26%B. 15.54%C. 16.97%D. 21.26%E. 9.83%22.The Yachtsman Fund had NAV per share of $36.12 on January 1, 2012. On December 31 of thesame year the fund's NAV was $39.71. Income distributions were $0.64 and the fund had capital gain distributions of $1.13. Without considering taxes and transactions costs, what rate of return did an investor receive on the Yachtsman Fund last year?A. 22.92%B. 17.68%C. 14.39%D. 18.52%E. 14.84%23.Investors' Choice Fund had NAV per share of $37.25 on January 1, 2012. On December 31 ofthe same year the fund's rate of return for the year was 17.3%. Income distributions were $1.14, and the fund had capital gain distributions of $1.35. Without considering taxes and transactions costs, what ending NAV would you calculate for Investors' Choice?A. $41.20B. $33.88C. $43.69D. $42.03E. $46.6224.Which of the following is not an advantage of mutual funds?A. T hey offer a variety of investment styles.B. T hey offer small investors the benefits of diversification.C. T hey treat income as "passed through" to the investor for tax purposes.D. A ll of the options are advantages of mutual funds.E. N one of the options is an advantage of mutual funds.25.Which of the following would increase the net asset value of a mutual fund share, assuming allother things remain unchanged?A. A n increase in the number of fund shares outstandingB. A n increase in the fund's accounts payableC. A change in the fund's managementD. A n increase in the value of one of the fund's stocks26.Which of the following characteristics apply to unit investment trusts?I) Most are invested in fixed-income portfolios.II) They are actively managed portfolios.III) The sponsor pools securities, then sells public shares in the trust.IV) The portfolio is fixed for the life of the fund.A. I and IVB. I and IIC. I, III, and IVD. I, II, and IIIE. I, II, III, and IV27.Jargon Rapid Growth is a mutual fund that has traditionally accepted funds from new investorsand issued new shares at net asset value. Jeremy Jargon manages the fund himself and has become concerned that its level of assets has become too high for his management abilities. He issues a statement that Jargon will no longer accept funds from new investors, but will continue to accept additional investments from current shareholders. Which of the following is true about Jargon Rapid Growth fund?A. J argon used to be an open-end fund but has now become a closed-end fund.B. J argon has always been an open-end fund and will remain an open-end fund.C. J argon has always been a closed-end fund and will remain a closed-end fund.D. J argon is an open-end fund but would change to a closed-end fund if it wouldn't acceptadditional funds from current investors.E. J argon is violating SEC policy by refusing to accept new investors.28.As of 2012 which class of mutual funds had the largest amount of assets invested?A. E quity fundsB. B ond fundsC. M ixed asset classes such as asset allocation fundsD. M oney market fundsE. G lobal fundsmingled funds areA. a mounts invested in equity and fixed-income mutual funds.B. f unds that may be purchased at intervals of 3, 6, or 12 months at the discretion ofmanagement.C. a mounts invested in domestic and global equities.D. c losed-end funds that may be repurchased only once every two years at the discretion ofmutual fund management.E. p artnerships of investors that pool their funds, which are then managed for a fee.30.Which of the following is true regarding equity mutual funds?I) They invest primarily in stock.II) They may hold fixed-income securities as well as stock.III) Most hold money market securities as well as stock.IV) Two types of equity funds are income funds and growth funds.A. I and IVB. I, III, and IVC. I, II, and IVD. I, II, and IIIE. I, II, III, and IV31.The fee that mutual funds use to help pay for advertising and promotional literature is called aA. f ront-end load fee.B. b ack-end load fee.C. o perating expense fee.D. 12b-1 fee.E. s tructured fee.32.Patty O'Furniture purchased 100 shares of Green Isle mutual fund at a net asset value of $42 pershare. During the year Patty received dividend income distributions of $2.00 per share and capital gains distributions of $4.30 per share. At the end of the year the shares had a net asset value of $40 per share. What was Patty's rate of return on this investment?A. 5.43%B. 10.24%C. 7.19%D. 12.44%E. 9.18%$21 per share. During the year you received dividend income distributions of $1.50 per share and capital gains distributions of $2.85 per share. At the end of the year the shares had a net asset value of $23 per share. What was your rate of return on this investment?A. 30.24%B. 25.37%C. 27.19%D. 22.44%E. 29.18%34.Assume that you purchased shares of High Flying mutual fund at a net asset value of $12.50 pershare. During the year you received dividend income distributions of $0.78 per share and capital gains distributions of $1.67 per share. At the end of the year the shares had a net asset value of $13.87 per share. What was your rate of return on this investment?A. 29.43%B. 30.56%C. 31.19%D. 32.44%E. 29.18%35.Assume that you purchased shares of a mutual fund at a net asset value of $14.50 per share.During the year you received dividend income distributions of $0.27 per share and capital gains distributions of $0.65 per share. At the end of the year the shares had a net asset value of $13.74 per share. What was your rate of return on this investment?A. 2.91%B. 3.07%C. 1.10%D. 1.78%E. -1.18%During the year you received dividend income distributions of $0.05 per share and capital gains distributions of $0.06 per share. At the end of the year the shares had a net asset value of $8.16 per share. What was your rate of return on this investment?A. -18.24%B. -16.1%C. 16.10%D. -17.3%E. 17.3%37.A mutual fund had year-end assets of $560,000,000 and liabilities of $26,000,000. There were23,850,000 shares in the fund at year-end. What was the mutual fund's net asset value?A. $22.87B. $22.39C. $22.24D. $17.61E. $19.2538.A mutual fund had year-end assets of $250,000,000 and liabilities of $4,000,000. There were3,750,000 shares in the fund at year-end. What was the mutual fund's net asset value?A. $92.53B. $67.39C. $63.24D. $65.60E. $17.4640,150,000 shares in the fund at year-end. What was the mutual fund's net asset value?A. $9.63B. $57.71C. $16.42D. $17.87E. $17.2640.A mutual fund had year-end assets of $750,000,000 and liabilities of $7,500,000. There were40,000,000 shares in the fund at year-end. What was the mutual fund's net asset value?A. $9.63B. $18.56C. $16.42D. $17.87E. $17.2641.A mutual fund had year-end assets of $465,000,000 and liabilities of $37,000,000. If the fundNAV was $56.12, how many shares must have been held in the fund?A. 4,300,000B. 6,488,372C. 8,601,709D. 7,626,515E. N one of the optionsNAV was $26.12, how many shares must have been held in the fund?A. 17,534,456B. 16,488,372C. 18,601,742D. 17,542,51543.A mutual fund had year-end assets of $327,000,000 and liabilities of $46,000,000. If the fundNAV was $30.48, how many shares must have been held in the fund?A. 11,354,751B. 8,412,642C. 10,165,476D. 9,165,414E. 9,219,16044.A mutual fund had year-end assets of $437,000,000 and liabilities of $37,000,000. If the fundNAV was $60.12, how many shares must have been held in the fund?A. 6,653,360B. 8,412,642C. 10,165,476D. 9,165,414E. 9,219,160year the fund's NAV was $19.14. Income distributions were $0.57 and the fund had capital gain distributions of $1.12. Without considering taxes and transactions costs, what rate of return did an investor receive on the fund last year?A. 11.26%B. 10.54%C. 7.97%D. 8.26%E. 9.63%46.A mutual fund had NAV per share of $23.00 on January 1, 2012. On December 31 of the sameyear the fund's NAV was $23.15. Income distributions were $0.63 and the fund had capital gain distributions of $1.26. Without considering taxes and transactions costs, what rate of return did an investor receive on the fund last year?A. 11.26%B. 10.54%C. 8.87%D. 8.26%E. 9.63%47.A mutual fund had NAV per share of $26.25 on January 1, 2012. On December 31 of the sameyear the fund's rate of return for the year was 16.4%. Income distributions were $1.27 and the fund had capital gain distributions of $1.85. Without considering taxes and transactions costs, what ending NAV would you calculate?A. $27.44B. $33.88C. $24.69D. $42.03E. $16.62year the fund's rate of return for the year was 26.6%. Income distributions were $1.79 and the fund had capital gain distributions of $2.80. Without considering taxes and transactions costs, what ending NAV would you calculate?A. $17.44B. $13.28C. $14.96D. $17.25E. $16.6249.A mutual fund had NAV per share of $36.15 on January 1, 2012. On December 31 of the sameyear the fund's rate of return for the year was 14.0%. Income distributions were $1.16 and the fund had capital gain distributions of $2.12. Without considering taxes and transactions costs, what ending NAV would you calculate?A. $37.93B. $34.52C. $44.69D. $47.25E. $36.2850.A mutual fund had NAV per share of $37.12 on January 1, 2012. On December 31 of the sameyear the fund's rate of return for the year was 11.0%. Income distributions were $2.26 and the fund had capital gain distributions of $1.64. Without considering taxes and transactions costs, what ending NAV would you calculate?A. $37.93B. $34.52C. $37.30D. $47.25E. $36.2851.Differences between hedge funds and mutual funds are thatA. h edge funds are only subject to minimal SEC regulation.B. h edge funds are typically open only to wealthy or institutional investors.C. h edge fund managers can pursue strategies not available to mutual funds, such as shortselling, heavy use of derivatives, and leverage.D. h edge funds are commonly structured as private partnerships.E. A ll of the options52.Of the following types of mutual funds, an investor who wishes to invest in a diversified portfolio ofstocks worldwide (including the U.S.) should chooseA. i nternational funds.B. g lobal funds.C. r egional funds.D. e merging market funds.53.Of the following types of mutual funds, an investor who wishes to invest in a diversified portfolio offoreign stocks (excluding the U.S.) should chooseA. i nternational funds.B. g lobal funds.C. r egional funds.D. e merging market funds.54.Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio thattracks the S&P 500 should chooseA. S PY.B. D IA.C. Q QQQ.D. I WM.E. V TI.55.Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio thattracks the Dow Jones Industrials should chooseA. S PY.B. D IA.C. Q QQQ.D. I WM.E. V TI.56.Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio thattracks the Nasdaq 100 should chooseA. S PY.B. D IA.C. Q QQQ.D. I WM.E. V TI.tracks the Russell 2000 should chooseA. S PY.B. D IA.C. Q QQQ.D. I WM.E. V TI.58.Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio thattracks the Wilshire 5000 should chooseA. S PY.B. D IA.C. Q QQQ.D. I WM.E. V TI.59.Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio thattracks the MSCI Japan Index should chooseA. S PY.B. E WJ.C. Q QQQ.D. I WM.E. V TI.tracks the MSCI France Index should chooseA. S PY.B. E WJ.C. E WQ.D. I WM.E. V TI.61.A mutual fund had average daily assets of $3.0 billion in 2012. The fund sold $600 million worthof stock and purchased $700 million worth of stock during the year. The fund's turnover ratio isA. 27.5%.B. 12%.C. 15%.D. 25%.E. 20%.62.A mutual fund had average daily assets of $2.0 billion in 2012. The fund sold $500 million worthof stock and purchased $600 million worth of stock during the year. The fund's turnover ratio isA. 27.5%.B. 12%.C. 15%.D. 25%.E. 20%.63.A mutual fund had average daily assets of $4.0 billion in 2012. The fund sold $1.5 billion worth ofstock and purchased $1.6 billion worth of stock during the year. The fund's turnover ratio isA. 37.5%.B. 22%.C. 15%.D. 45%.E. 20%.64.A mutual fund had average daily assets of $4.7 billion in 2012. The fund sold $2.2 billion worth ofstock and purchased $3.6 billion worth of stock during the year. The fund's turnover ratio isA. 37.5%.B. 22.6%.C. 15.3%.D. 46.8%.E. 20.7%.65.You purchased shares of a mutual fund at a price of $20 per share at the beginning of the yearand paid a front-end load of 5.75%. If the securities in which the fund invested increased in value by 11% during the year, and the fund's expense ratio was 1.25%, your return if you sold the fund at the end of the year would beA. 4.33%.B. 3.44%.C. 2.45%.D. 6.87%.66.You purchased shares of a mutual fund at a price of $12 per share at the beginning of the yearand paid a front-end load of 4.75%. If the securities in which the fund invested increased in value by 9% during the year, and the fund's expense ratio was 1.5%, your return if you sold the fund at the end of the year would beA. 4.75%.B. 3.54%.C. 2.65%.D. 2.39%.67.You purchased shares of a mutual fund at a price of $17 per share at the beginning of the yearand paid a front-end load of 5.0%. If the securities in which the fund invested increased in value by 12% during the year, and the fund's expense ratio was 1.0%, your return if you sold the fund at the end of the year would beA. 4.75%.B. 5.45%.C. 5.65%.D. 4.39%.68.You purchased shares of a mutual fund at a price of $20 per share at the beginning of the yearand paid a front-end load of 6.0%. If the securities in which the fund invested increased in value by 10% during the year, and the fund's expense ratio was 1.5%, your return if you sold the fund at the end of the year would beA. 1.99%.B. 2.32%.C. 1.65%.D. 2.06%.E. N one of the optionsShort Answer Questions69.List and describe the more important types of mutual funds according to their investment policyand use.70.Discuss the taxation of mutual fund income.71.What is an exchange-traded fund? Give two examples of specific ETFs. What are someadvantages they have over ordinary open-end mutual funds? What are some disadvantages?72.Discuss the consistency of mutual fund performance results, as studied by Goetzmann andIbbotson (1994) and Malkiel (1995).Chapter 04 Mutual Funds and Other Investment Companies Answer Key Multiple Choice Questions1.Which one of the following statements regarding open-end mutual funds is false?A.The funds redeem shares at net asset value.B.The funds offer investors professional management.C.The funds offer investors a guaranteed rate of return.D.The funds offer investors professional management and a guaranteed rate of return.E.The funds redeem shares at net asset value and offer investors professional management.Mutual funds do not offer a guaranteed rate of return.AACSB: AnalyticBlooms: RememberDifficulty: IntermediateTopic: Mutual Funds2.Which one of the following statements regarding closed-end mutual funds is false?A.The funds always trade at a discount from NAV.B.The funds redeem shares at their net asset value.C.The funds offer investors professional management.D.The funds always trade at a discount from NAV and redeem shares at their net assetvalue.E.None of the optionsClosed-end funds are sold at the prevailing market price.AACSB: AnalyticBlooms: RememberDifficulty: IntermediateTopic: Mutual Funds3.Which of the following functions do investment companies perform for their investors?A.Record keeping and administrationB.Diversification and divisibilityC.Professional managementD.Lower transaction costsE.All of the optionsInvestment companies are attractive to investors because they offer all of the listed services.AACSB: AnalyticBlooms: RememberDifficulty: BasicTopic: Investment Organizations4.Multiple Mutual Funds had year-end assets of $457,000,000 and liabilities of $17,000,000.There were 24,300,000 shares in the fund at year-end. What was Multiple Mutual's net asset value?A.$18.11B.$18.81C.$69.96D.$7.00E.$181.07($457,000,000 - 17,000,000)/24,300,000 = $18.11.AACSB: AnalyticBlooms: ApplyDifficulty: IntermediateTopic: Mutual Funds5.Growth Fund had year-end assets of $862,000,000 and liabilities of $12,000,000. There were32,675,254 shares in the fund at year-end. What was Growth Fund's net asset value?A.$28.17B.$25.24C.$19.62D.$26.01E.$21.56($862,000,000 - 12,000,000)/32,675,254 = $26.01.AACSB: AnalyticBlooms: ApplyDifficulty: IntermediateTopic: Mutual Funds6.Diversified Portfolios had year-end assets of $279,000,000 and liabilities of $43,000,000. IfDiversified's NAV was $42.13, how many shares must have been held in the fund?A.43,000,000B.6,488,372C.5,601,709D.1,182,203($279,000,000 - 43,000,000)/$42.13 = 5,601,708.996.AACSB: AnalyticBlooms: ApplyDifficulty: IntermediateTopic: Mutual Funds7.Pinnacle Fund had year-end assets of $825,000,000 and liabilities of $25,000,000. IfPinnacle's NAV was $32.18, how many shares must have been held in the fund?A.21,619,346.92B.22,930,546.28C.24,860,161.59D.25,693,645.25($825,000,000 - 25,000,000)/$32.18 = 24,860,161.59.AACSB: AnalyticBlooms: ApplyDifficulty: IntermediateTopic: Mutual Funds8.Most actively managed mutual funds, when compared to a market index such as the Wilshire5000,A.beat the market return in all years.B.beat the market return in most years.C.exceed the return on index funds.D.do not outperform the market.Most actively managed mutual funds fail to equal the return earned by index funds, possibly due to higher transactions costs.AACSB: AnalyticBlooms: RememberDifficulty: BasicTopic: Investment Organizations9.Pools of money invested in a portfolio that is fixed for the life of the fund are calledA.closed-end funds.B.open-end funds.C.unit investment trusts.D.REITS.E.redeemable trust certificates.Unit investment trusts are funds that invest in a portfolio, often fixed-income securities, andhold it to maturity.AACSB: AnalyticBlooms: RememberDifficulty: BasicTopic: Investment Organizations10.Investors in closed-end funds who wish to liquidate their positions mustA.sell their shares through a broker.B.sell their shares to the issuer at a discount to net asset value.C.sell their shares to the issuer at a premium to net asset value.D.sell their shares to the issuer for net asset value.E.hold their shares to maturity.Closed-end fund shares are sold on organized exchanges through a broker.AACSB: AnalyticBlooms: UnderstandDifficulty: IntermediateTopic: Investment Organizations11.Closed end funds are frequently issued at a ______ to NAV and subsequently trade at a__________ to NAV.A.discount, discountB.discount, premiumC.premium, premiumD.premium, discountE.No consistent relationship has been observed.Closed-end funds are typically issued at a premium to net asset value and subsequently trade at a discount.AACSB: AnalyticBlooms: UnderstandDifficulty: IntermediateTopic: Investment Organizations12.At issue, offering prices of open-end funds will often beA.less than NAV due to loads and commissions.B.greater than NAV due to loads and commissions.C.less than NAV due to limited demand.D.greater than NAV due to excess demand.E.less than or greater than NAV with no apparent pattern.Open-end funds are redeemable on demand at NAV so they should never sell for less thanNAV. However, loads and commissions can increase the price above NAV.AACSB: AnalyticBlooms: UnderstandDifficulty: ChallengeTopic: Investment Organizations13.Which of the following statements about real estate investment trusts is true?A.REITs invest in real estate or loans secured by real estate.B.REITs raise capital by borrowing from banks and issuing mortgages.C.REITs are similar to open-end funds, with shares redeemable at NAV.D.REITs invest in real estate or loans secured by real estate and raise capital by borrowingfrom banks and issuing mortgages.E.All of the options are true.Real estate investment trusts invest in real estate or real-estate-secured loans. They mayraise capital from banks and by issuing mortgages. They are similar to closed-end funds, and shares are typically exchange traded.AACSB: AnalyticBlooms: UnderstandDifficulty: IntermediateTopic: Investment Organizations。
ch04MUTUAL FUNDS AND OTHER MANAGED INVESTMENTS(投资学,赖利)
Mutual Fund Drawbacks
Active trading contributes to high costs which lower fund returns Tax consequences can be a disadvantage
Tax impacts of asset trading are passed through to investors Tax bill can be large even when the NAV falls
Chapter 4
MUTUAL FUNDS AND OTHER MANAGED INVESTMENTS
Chapter 4 Questions
What is a mutual fund? How does one compute the net asset value (NAV)? What expenses and changes might a mutual fund investor face? What does research on mutual fund performance tell about fund expenses, portfolio turnover, and returns?
Chapter 4 Questions
What is a good procedure for determining which mutual funds to purchase? When might it be appropriate to sell shares in a mutual fund? What are the similarities between mutual funds and some other managed investments?
投资学第10版课后习题答案
CHAPTER 4: MUTUAL FUNDS AND OTHER INVESTMENTCOMPANIESPROBLEM SETS1. The unit investment trust should have lower operating expenses.Because the investment trust portfolio is fixed once the trust isestablished, it does not have to pay portfolio managers toconstantly monitor and rebalance the portfolio as perceived needsor opportunities change. Because the portfolio is fixed, the unitinvestment trust also incurs virtually no trading costs.2. a. Unit investment trusts: Diversification from large-scaleinvesting, lower transaction costs associated with large-scaletrading, low management fees, predictable portfolio composition,guaranteed low portfolio turnover rate.b. Open-end mutual funds: Diversification from large-scaleinvesting, lower transaction costs associated with large-scaletrading, professional management that may be able to takeadvantage of buy or sell opportunities as they arise, recordkeeping.c. Individual stocks and bonds: No management fee; ability tocoordinate realization of capital gains or losses withinvestors’ personal tax situation s; capability of designingportfolio to investor’s specific risk and return profile.3. Open-end funds are obligated to redeem investor's shares at netasset value and thus must keep cash or cash-equivalent securitieson hand in order to meet potential redemptions. Closed-end funds do not need the cash reserves because there are no redemptions forclosed-end funds. Investors in closed-end funds sell their shareswhen they wish to cash out.4. Balanced funds keep relatively stable proportions of funds investedin each asset class. They are meant as convenient instruments toprovide participation in a range of asset classes. Life-cycle fundsare balanced funds whose asset mix generally depends on the age of the investor. Aggressive life-cycle funds, with larger investments in equities, are marketed to younger investors, while conservative life-cycle funds, with larger investments in fixed-income securities, are designed for older investors. Asset allocation funds, in contrast, may vary the proportions invested in each asset class by large amounts as predictions of relative performance across classes vary. Asset allocation funds therefore engage in more aggressive market timing.5. Unlike an open-end fund, in which underlying shares are redeemedwhen the fund is redeemed, a closed-end fund trades as a security in the market. Thus, their prices may differ from the NAV.6. Advantages of an ETF over a mutual fund:ETFs are continuously traded and can be sold or purchased on margin.There are no capital gains tax triggers when an ETF is sold(shares are just sold from one investor to another).Investors buy from brokers, thus eliminating the cost ofdirect marketing to individual small investors. This implieslower management fees.Disadvantages of an ETF over a mutual fund:Prices can depart from NAV (unlike an open-end fund).There is a broker fee when buying and selling (unlike a no-load fund).7. The offering price includes a 6% front-end load, or salescommission, meaning that every dollar paid results in only $ going toward purchase of shares. Therefore: Offering price =06.0170.10$Load 1NAV -=-= $8. NAV = Offering price (1 –Load) = $ .95 = $9. Stock Value Held by FundA $ 7,000,000B 12,000,000C 8,000,000D 15,000,000Total $42,000,000Net asset value =000,000,4000,30$000,000,42$-= $10. Value of stocks sold and replaced = $15,000,000 Turnover rate =000,000,42$000,000,15$= , or %11. a. 40.39$000,000,5000,000,3$000,000,200$NAV =-=b. Premium (or discount) = NAVNAV ice Pr - = 40.39$40.39$36$-= –, or % The fund sells at an % discount from NAV.12. 100NAV NAV Distributions $12.10$12.50$1.500.088, or 8.8%NAV $12.50-+-+==13. a. Start-of-year price: P 0 = $ × = $End-of-year price: P 1 = $ × = $Although NAV increased by $, the price of the fund decreased by $. Rate of return =100Distributions $11.25$12.24$1.500.042, or 4.2%$12.24P P P -+-+==b. An investor holding the same securities as the fund managerwould have earned a rate of return based on the increase in the NAV of the portfolio:100NAV NAV Distributions $12.10$12.00$1.500.133, or 13.3%NAV $12.00-+-+==14. a. Empirical research indicates that past performance of mutualfunds is not highly predictive of future performance,especially for better-performing funds. While there may be some tendency for the fund to be an above average performer nextyear, it is unlikely to once again be a top 10% performer.b. On the other hand, the evidence is more suggestive of atendency for poor performance to persist. This tendency isprobably related to fund costs and turnover rates. Thus if the fund is among the poorest performers, investors should beconcerned that the poor performance will persist.15. NAV 0 = $200,000,000/10,000,000 = $20Dividends per share = $2,000,000/10,000,000 = $NAV1 is based on the 8% price gain, less the 1% 12b-1 fee: NAV1 = $20 (1 – = $Rate of return =20$20 .0$20$384.21$+-= , or %16. The excess of purchases over sales must be due to new inflows intothe fund. Therefore, $400 million of stock previously held by the fund was replaced by new holdings. So turnover is: $400/$2,200 = , or %.17. Fees paid to investment managers were: $ billion = $ millionSince the total expense ratio was % and the management fee was %, we conclude that % must be for other expenses. Therefore, other administrative expenses were: $ billion = $ million.18. As an initial approximation, your return equals the return on the shares minus the total of the expense ratio and purchase costs: 12% % 4% = %.But the precise return is less than this because the 4% load is paid up front, not at the end of the year. To purchase the shares, you would have had to invest: $20,000/(1 = $20,833. The shares increase in value from $20,000 to: $20,000 = $22,160. The rate of return is: ($22,160 $20,833)/$20,833 = %.19. Assume $1,000 investmentLoaded-Up Fund Economy Fund Yearly growth (r is 6%) (1.01.0075)r +-- (.98)(1.0025)r ⨯+- t = 1 year$1, $1, t = 3 years$1, $1, t = 10 years$1, $1,20. a. $450,000,000$10,000000$1044,000,000-= b. The redemption of 1 million shares will most likely triggercapital gains taxes which will lower the remaining portfolio by an amount greater than $10,000,000 (implying a remaining total value less than $440,000,000). The outstanding shares fall to 43 million and the NAV drops to below $10.21. Suppose you have $1,000 to invest. The initial investment in ClassA shares is $940 net of the front-end load. After four years, yourportfolio will be worth:$940 4 = $1,Class B shares allow you to invest the full $1,000, but yourinvestment performance net of 12b-1 fees will be only %, and you will pay a 1% back-end load fee if you sell after four years. Your portfolio value after four years will be:$1,000 4 = $1,After paying the back-end load fee, your portfolio value will be:$1, .99 = $1,Class B shares are the better choice if your horizon is four years.With a 15-year horizon, the Class A shares will be worth:$940 15 = $3,For the Class B shares, there is no back-end load in this casesince the horizon is greater than five years. Therefore, the value of the Class B shares will be:$1,000 15 = $3,At this longer horizon, Class B shares are no longer the betterchoice. The effect of Class B's % 12b-1 fees accumulates over time and finally overwhelms the 6% load charged to Class A investors.22. a. After two years, each dollar invested in a fund with a 4% loadand a portfolio return equal to r will grow to: $ (1 + r–2.Each dollar invested in the bank CD will grow to: $1 .If the mutual fund is to be the better investment, then theportfolio return (r) must satisfy:(1 + r–2 >(1 + r–2 >(1 + r–2 >1 + r– >1 + r >Therefore: r > = %b. If you invest for six years, then the portfolio return mustsatisfy:(1 + r–6 > =(1 + r–6 >1 + r– >r > %The cutoff rate of return is lower for the six-year investment because the “fixed cost” (the one-time front-end load) is spread over a greater number of years.c. With a 12b-1 fee instead of a front-end load, the portfoliomust earn a rate of return (r ) that satisfies:1 + r – – >In this case, r must exceed % regardless of the investmenthorizon.23. The turnover rate is 50%. This means that, on average, 50% of theportfolio is sold and replaced with other securities each year. Trading costs on the sell orders are % and the buy orders toreplace those securities entail another % in trading costs. Total trading costs will reduce portfolio returns by: 2 % = %24. For the bond fund, the fraction of portfolio income given up tofees is: %0.4%6.0= , or % For the equity fund, the fraction of investment earnings given up to fees is:%0.12%6.0= , or % Fees are a much higher fraction of expected earnings for the bond fund and therefore may be a more important factor in selecting the bond fund.This may help to explain why unmanaged unit investment trusts are concentrated in the fixed income market. The advantages of unit investment trusts are low turnover, low trading costs, and low management fees. This is a more important concern to bond-market investors.25. Suppose that finishing in the top half of all portfolio managers ispurely luck, and that the probability of doing so in any year is exactly ½. Then the probability that any particular manager would finish in the top half of the sample five years in a row is (½)5 = 1/32. We would then expect to find that [350 (1/32)] = 11managers finish in the top half for each of the five consecutiveyears. This is precisely what we found. Thus, we should not conclude that the consistent performance after five years is proof of skill. We would expect to find 11 managers exhibiting precisely this level of "consistency" even if performance is due solely to luck.。
Mutal Funds
Reward-to-Risk Ratio: Definition and Example
21
The reward-to-risk ratio is the slope of the line
illustrated in the previous example
Slope = (E(RA) – Rf) / (A – 0) Reward-to-risk ratio for previous example = (20 – 8) / (1.6 – 0) = 7.5
Remember: Beta measures systematic risk
Total versus Systematic Risk
19
Consider the following information: Standard Deviation Beta Security A 20% 1.25 Security B 30% 0.95
9
Performance Evaluation
NAV of Mutual Funds
10
NAV =(Net Market Value of Assets)/Number of
Shares Outstanding Example 1: Mutual fund A has 100 IBM stocks and 200 GM stocks. The fund has 1000 shares outstanding. Today’s price of these two stocks are $100 and $40, respectively. What is the NAV? Example 2: New investors buy 250 shares of mutual fund A at $20 per share. The fund manger uses the new funding to buy Pfizer stocks that is trading at $25. What is new NAV?
Investment 4 投资学
shares purchased. Value” or “ NAV”.
The value of each share is called “ Net Asset Calculation:
4-6
NET ASSET VALUE: EXAMPLE 4.1
Consider a mutual fund that manages a portfolio
4-9
TYPES OF INVESTMENT COMPANIES
Managed Investment Companies Open-End funds
Fund issues new shares when investors buy and
redeems shares when investors cash out Priced at Net Asset Value (NAV) Do not trade on exchanges Investors buy and liquidate through the investment company at net asset value Mutual Funds are known as Unit Trusts in some countries such as Singapore, Malaysia, and Australia
Exchanged-traded funds(ETFs)
4-3
INVESTMENT COMPANIES
Financial intermediaries that collect funds
from individual investors and invest in a wide range of securities or other assets.
Chap004投资学(英)《Mutual Funds and Other Investment Companies》
• Equity funds
• Invest in stock, some fixed-income, or other securities
• Specialized sector funds
• Concentrate on particular industry
• Bond funds
• Specialize in fixed-income (bonds) sector
SEC regulation
The McGraw-Hill Companies, © 2013
64-6
4.3 Mutual Funds
• Investment Policies
• Money market funds
• Commercial paper, repurchase agreements, CDs
4-11 11
4.4 Costs of Investing in Mutual Funds
• Fee Structure
• Operating expenses: Costs incurred by mutual
fund in operating portfolio
• Front-end load: Commission or sales charge
54-5
4.2 Types of Investment Companies
• Other Investment Organizations
• Commingled Funds
• Partnership of investors pooling funds; designed for
trusts/larger retirement accounts to get professional management for fee
共同基金
4-19
假定有一投资基金，管理着价值1.2亿美元 假定有一投资基金，管理着价值1.2亿美元 的资产组合，假设该基金欠基金管理费和 托管费400万美元，并欠租金、应发工资及 托管费400万美元，并欠租金、应发工资及 杂费100万美元。该基金发行在外的股份为 杂费100万美元。该基金发行在外的股份为 500万，则 500万，则 资产净值＝ ( 1.2亿美元－500万美元) / 500 1.2亿美元－500万美元) 万股＝23美元/ 万股＝23美元/份
开放式基金：发行新的股票或赎回老的股票时将有变化
OpenOpen-end: changes when new shares are sold or old shares are redeemed
4-12
开放式基金和封闭式基金的主要区别 OpenOpen-End and Closed-End Funds: Key ClosedDifferences
Types of Investment Organizations 其他投资组织 Other investment organizations 综合基金 Commingled funds 不动产投资信托 REITs 对冲基金 Hedge Funds
4-10
共同基金共同基金-投资策略
Investment Policies
4-3
共同基金 Mutual fund
基金托管人 Fund Trustees 基金托管人是投资人权益的代表，是基金资产的名义 持有人或管理机构。为了保证基金资产的安全，按照 资产管理和资产保管分开的原则运作基金，基金设有 专门的基金托管人保管基金资产。基金托管人应为基 金开设独立的基金资产帐户，负责款项收付、资金划 拔、证券清算、分红派息等，所有这些，基金托管人 都是按照基金管理人的指令行事，而基金管理人的指 令也必须通过基金托管人来执行。 在外国，对基金托管人的任职资格都有严格的规定， 一般都要求由商业银行及信托投资公司等金融机构担 任，并有严格的审批程序。
投资学第4章金融工具2：证券投资基金
13
（5）按照募集方式分类
➢ 公募基金（Public offering fund）：向非特定的 对象募集基金份额。
阳光操作、信息披露、严格监管。中国规定所有基 金必须公募集，美国规定共同基金必须公募。
➢ 私募基金（Private placement fund）：向特定 的对象募集基金份额。
无需披露信息，监管不严，具有隐蔽性。如美国的 对冲基金（Hedge fund），采取合伙制度，人数不 等超过100人。14交易所上市基金（LOF）
▪ LOF是Listed Open-Ended Fund的缩写，是一种可 以在交易所挂牌交易的开放式基金，LOF也就是 上市型开放式基金，发行结束后，投资者既可以 在指定网点申购与赎回基金份额，也可以在交易 所买卖该基金，因此，为机构及个人投资者的投 资和套利操作提供了便捷的交易平台。
8
开放式基金与封闭式基金比较
期限
规模 交易场所 价格形成 方式 投资策略
激励机制
封闭式基金 5年以上，多数15年
不变 可以上市 主要是供求关系
开放式基金 没有固定存续期
可变 不可上市 完全取决于净值
没有赎回的压力，可 有赎回压力，资金不
长期投资
能完全用于长期投资
缺乏
较好
9
（2）按照组织形式分
➢ 契约型（Contractual-type fund）基金：三方 签订基金契约——基金管理人、投资者、托管 人。他们之间是合同关系，基金本身不是一 个法人，是虚拟企业。
投资学 第4章
金融工具（2）：证券投资基金
投资学 第4章
1
引言
▪ 在现实中，有各种各样福利性质的基金如中国 青少年发展基金、国家自然科学基金；产业基 金，风险基金等；但这些基金都不是本文所要 讨论的金融工具。
投资学全英文ppt13
Copyright ©2014 Pearson Education, Inc. All rights reserved.
12-9
Closed-End Investment Companies
• Sell shares in the fund only at the initial offering
– “Diamonds” (DIA) track DJIA – “Spiders” (SPY) track S&P 500 – “Qubes (QQQ) track NASDAQ 100
Copyright ©2014 Pearson Education, Inc. All rights reserved.
12-4
Attractions of Mutual Funds
• Portfolio Diversification
– Owning numerous securities reduces risk
• Professional management • Ability to invest small amounts
12-11
Load and No-Load Funds
• Load Fund: a mutual fund that charges a commission when shares are bought
– Typically sold through a broker
• No-load Fund: a mutual fund that does not charge a commission when shares are bought
• More mutual funds in existence today than stocks listed on NYSE and AMEX combined
投资基金和其它金融工具
上证综合指数
市场加权股指
（1）基日、基期、基期指数 以1990年12月19日为基日； 以该日所有股票的市价总值为基期，基期 亦称为除数；基期指数定为100点。自 1991年7月15日起正式发布。
（2）公式为： 报告期指数 ＝[报告期成份股的总市值 / 基 期 ]× 基期指 数 其中，总市值 = ∑(市价×发行股数) 目前世界上大多数都是派许指数,偏重报告期 的 发行股数(或成交股数)。
Mortgage-Backed Securities抵押支持证券
贷款购房者
贷款银行 本利
本利服务费
代理机构
本利-
证券投资者
服务费担保费
QUESTION 思考题?
抵押支持证券是资产支持证券（ Assets-Backed Securities ，简称ABS）的一种。国内ABS市场如 何？ 如何让信用级别较低的资产也进行证券化处理？
四、Derivatives Securities
Futures 期货合约 Basic Positions Long (Buy)多头 Short (Sell)空头 Terms Delivery Date交割日 Assets 标的商品
Options期权合约 Basic Positions Call (Buy)看涨 Put (Sell)看跌 Terms Exercise Price实施价格 Expiration Date到期日 Assets 标的商品
Examples of Indexes
Domestic中国：沪深300、上证综指、深
证成指、上证50、创业板指数、中小板 指数 美国
Dow Jones Industrial Average (30 Stocks) 道琼斯指数 Standard & Poor’s 500 Composite标普500 NASDAQ Composite纳斯达克指数 NYSE Composite纽约证券交易所指数 Wilshire 5000威尔逊5000
投资学chap004---精品模板
Multiple Choice Questions1. Which one of the following statements regarding open—end mutual funds is false?A）The funds redeem shares at net asset value。
B）The funds offer investors professional management.C) The funds offer investors a guaranteed rate of return。
D） B and C。
E) A and B。
Answer: C Difficulty： ModerateRationale: No investment offers a guaranteed rate of return。
2. Which one of the following statements regarding closed-end mutual funds is false？A）The funds always trade at a discount from NAV。
B）The funds redeem shares at their net asset value.C）The funds offer investors professional management。
D) A and B.E）N one of the above。
Answer: D Difficulty： ModerateRationale： Closed-end funds are sold at the prevailing market price.3. Which of the following functions do mutual fund companies perform for theirinvestors？A）Record keeping and administrationB) Diversification and divisibilityC）Professional managementD) Lower transaction costsE) All of the above。
chapter 6 Mutual Fund
UNIVERSIT A LBUSINESS AND ECONOM YOF INTERN TIONA S
一家上市公司或上市公司，是一家有限责 任公司，提供向公众出售其证券（股票/股 票，债券/贷款等）。这不应与通常称为共 有公司的政府全资拥有的公司相混淆。
UNIVERSIT A LBUSINESS AND ECONOM YOF INTERN TIONA S
UNIVERSIT A LBUSINESS AND ECONOM YOF INTERN TIONA S
每个人都不愿意有损失，基金也是一样。 所幸的是，在分配给股东之前，资本所示 可以抵减资本利得。
UNIVERSIT A LBUSINESS AND ECONOM YOF INTERN TIONA S
UNIVERSIT A LBUSINESS AND ECO YOF INTERN TIONA S
Chapter 6 Mutual Fund
I . Open Questions
1.What is mutual fund? 2.What’s the role of an investment adviser? 3.How does a mutual fund’s Net Asset Value increase? 4.What are the advantages of mutual funds? 5.How to build a mutual fund portfolio?
UNIVERSIT A LBUSINESS AND ECONOM YOF INTERN TIONA S
资产组合是属于投资者的，或由金融机构 （如银行），养老基金，投资信托基金持 有的整个投资组合。
UNIVERSIT A LBUSINESS AND ECONOM YOF INTERN TIONA S
基金入门
★★基金入门Mutual Funds Basics★★＊共同基金--基本定义（英文为Mutual 共同基金在国内的正式名称叫做「证券投资信託基金」Fund 或Investment Company ），在美国称为「投资公司」，英国则称为「单位投资信託」（Unit Trust ）。
共同基金是由证券投资信託公司以发行公司股份或是受益凭证的方式，募集小额投资人的钱，将多数人的资金累积成一笔大钱，由专业的投资基金经理人操作管理并由信託保管银行为投资人保管基金资产。
将钱投资在股票、债券、期货、贵金属、选择权、认股权证、房地产等各种投资标的，以使基金资产不断成长，让投资人能分享资金成长的利益，惟并不代表绝无风险、一定会获利。
＊共同基金--一般分类I~ 依基金成立的方式：公司型：公司型基金系以成立公司发行股票的方式来募集投资大众的资金，募集一种基金即成立一家公司，而基金投资人即为公司股东。
美国的共同基金多属此一类型。
契约型：基金本身不成立公司，而是由基金经理公司、基金保管机构及投资人﹝受益人﹞三方签定信託契约，规范基金的投资运作。
本国基金公司所发行之基金皆属此一类型，而这也是英国的基金之常态。
~ 依变现的方式与交易价格分：开放型：基金规模可因投资人之申购而扩大，可因投资人买回而缩小，申购及买回价格系以基金的净资产价值来计算。
封闭型：基金成立后规模固定，并在证券交易所挂牌，而由买卖双方投资人委託证券经纪商至证券交易所依市价买卖交易。
这时基金净资产价值仅供参考，因此封闭式基金会有折、溢价之情形产生。
＊共同基金--一般分类II~ 依投资方针区分：成长型：此种基金的投资方针在于获得长期的资本增值，故多投资于具成长潜力公司的股票。
国外有部份基金公司成立以融资方式进行投资的基金又称为积极成长型。
收益型：特别注重基金投资的收益，多投资于国库券、附息债券及配息稳定之公司债等，以获取长期稳定的收益。
平衡型：投资方针为求取长期资本成长及稳定收益。
基金ppt课件英文
3
Asset Allocation
The fund's asset allocation policy determines how it will allocate its investments across different asset classes, such as stocks, bonds, cash equivalents, and alternative investments
Benefits of Investing in Mutual Funds
1 Diversion
Mutual funds offer investors diversification across multiple assets, reducing the risk of investing in individual securities
2 Professional Management
Mutual funds offer investors diversification across multiple assets, reducing the risk of investing in individual securities
3 Convention
Types of Mutual Funds
Equity funds
Invest in stocks of companies and aim to provide capital accommodation
Fixed income funds
Invest in a mix of equity and fixed income securities, seeking to balance
- 1、下载文档前请自行甄别文档内容的完整性，平台不提供额外的编辑、内容补充、找答案等附加服务。
- 2、"仅部分预览"的文档,不可在线预览部分如存在完整性等问题,可反馈申请退款(可完整预览的文档不适用该条件!)。
- 3、如文档侵犯您的权益，请联系客服反馈,我们会尽快为您处理(人工客服工作时间：9:00-18:30)。
I OVERVIEW OF FUND
MANAGEMENT
DEFINE: FUND (ASSET) MANAGEMENT
Pool of money: design investment strategies for this pool of money --- “institutional investors” Public pool of money
Investor
Funds
Investors’ Trust
ROLE OF FUND MANAGEMENT
It
is on the buy side & top rank in the food chain
Ultimate valuation agent Taking the Ultimate Risk
How to evaluate the performance of funds
JM Chapter 13 (required) BKM Chapter 24 (required)
Is there performance in mutual funds?
JM Chapter 7 (required): BKM Chapter 4; Chapter 11(required)
stock exchange typically with passive investment strategies. Actively managed ETFs were allowed since 2008. a fixed number of shares, with a preset termination date and a fixed portfolio.
Close-end
Funds: issue a fixed number of shares (IPO) and then list these shares on a stock exchange. Exchange-traded Funds: issue and list shares on a
Goal
Goal
FOOD CHAIN ILLUSTRATION
In IPO Process
On-time Information Flow
Valuation Responsibility
6
Issuing Company
Investment Bank
Broker S
GOAL OF
Goal
FUND MANAGEMENT
of Economic
Efficient Allocation of the limited resources to satisfy the unlimited needs and wants of Finance of Fund Management Efficient Allocation of the limited capital Rational Allocation of Gathered Funds
2.1 CONCEPTS ABOUT FUNDS
Source： 2018 Investment Company Fact book
TYPES
Mutual
Funds (Open-end Funds): issue a non-fixed
number of shares that can be redeemed by the fund.
Unit investment trust: UITs issue redeemable and
FUND TYPES
An Open-end fund is an investment company that stands ready to buy and sell its shares to investors.
Rational
Allocation
Think about How the World is Changing
Risk Control is the foundation Return is the by - product
II Concepts and facts about funds
INVESTING IN FUNDS
LEARNING OBJECTIVE
Overview: fund management Concepts and facts about funds
JM Chapter 4 (required) BKM Chapter 4 (recommended) 2018 Investment Company Fact book by ICI
Investment companies: mutual funds, ETFs, Unit Investment Trusts (covered in today’s lecture)
Private pool of money
Hedge funds, private banking etc (optional notes on Hedge funds and Risk Management) HF are private investment partnerships of high wealth individuals or qualified institutions (pension funds, LTCM, DFA, HMC etc). In the US, HF are usually up-to-500-investor partnerships. Investors are limited partners and managers are general partners. General partners typically have a significant portion of their wealth invested in their partnerships.