Course Outline Mutual Funds
Terms
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- The people who establish investment policy and select and oversee the Investment adviser, custodian and transfer agent. Also establish dividends and capital gains.
- Board of Directors
-
A _________ (_______ _______)
is hired by the Board to manage the mutual fund - Manager (Investment Adviser)
- The ______________ _______ markets the shares to the public.
-
Principle Underwriter
(Distributor or Sponsor) -
Underwriter Marketing Style:
Three ways of maketing a fund -
-Own Sales Force
-Through broker dealers
-Through Plan company - Some funds do not use underwriters. This would be a ___-________ fund.
- NO-Load fund
- Load tacked onto the fund to cover costs is a.
- 12b-1
- The entity that is charge of holding the portfolio securities in safekeeping and handles the clerical functions of the fund.
- Custodian Bank
- The entity in charge of issuance of shares or book entry, cancellation of redeemed shares and disbursement of dividends and capital gains to shareholders is the.
- Transfer Agent
- A reduction in sales charges for quantity purchases within the fund "family".
- Breakpoints
- If one makes an investment which reaches a breakpoint, one will receive the breakpoint on that investment, not just on the amount that exceeds the breakpoint. Valuation method- amout invested or current value, whichever is greater... not time limit
- Right of Accumulation
-
This calculation gives the...
Ask minus bid divided by ask price(Max sale charge is 8 1/2% of ask price) - Sales charge percentage
- NAV divided by 100% minus sales charge percentage.
- Ask Price
- NAV (bid) times number of shares redeemed (minus a redemption fee, if any)
- Redemption Proceeds
- Investing a fixed sum over a period of time and having the price fluctiate, will result in lower cost per share but does not assure profits. This is know as.
- Dollar-cost-averaging
- inducing a purchase just before a distribution is paid is not allowed and is called.
- Selling dividends
- Inducing a purchase just below a breakpoint is prohibited and is called..
- Breakpoint sales violation
- Classes of Mutual fund shares
-
Class A - front end load
Class B - Back end load