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3) Class Three Chapter TWO How Mutual Funds Work (Mutual Fund Management)
3) Class Three Chapter TWO How Mutual Funds Work (Mutual Fund Management)
3) Class Three Chapter TWO How Mutual Funds Work (Mutual Fund Management)
Assets Number of
Net Asset
minus shares
Value (NAV)
Liabilities outstanding
Protection of
material • To prevent insider trading.
nonpublic
information
Mutual Fund Management (GA31203)
Semester II, Session 2017/2018 Instructor: IFTEKHAR AMIN CHOWDHURY
FKAL, UMSKAL
Components of a Registered Investment
Adviser’s Code of Ethics (2)
Limits on gifts
• Usually applies to gifts both given and
and received.
entertainment
• Trust account
– For high net worth individuals.
– High customer service level.
• Exchange-traded funds
– Shares listed for trading on a stock exchange; price determined by
supply and demand.
– Adjust the number of shares outstanding so that the market price
remains close to NAV.
– Are tax-efficient.
– Are growing in popularity.
• Hedge funds
– Aren’t required to register with the SEC, unlike the other
commingled vehicles discussed.
– Usually structured as limited partnerships.
– Limit investor ability to redeem.
– Use aggressive investing techniques and are not subject to
investment restrictions.
– Generally don’t have a board of directors.
Pass-through tax X X X X X
status
Ongoing professional X X X No X
management
Supervision by X X X No No
independent
directors