当前位置:首页 >> 财会/金融考试 >>

2005 CFA level 1 Junwei Notes 18


“Alternative Investments”
Level 1 Session 18 Asset Valuation

Copy Right 2004 Thomas Wang, CFA

www.junwei.net

310

“Alternative Investments”

What’s Ahead?
Introduction Investment Companies Real Estate Private Equity: Venture Capital
Level 1 Session 18 Asset Valuation

Hedge Funds and Absolute Return Strategies Closely Held Companies and Inactively Traded Securities Distressed Securities

Copy Right 2004 Thomas Wang, CFA

Commodity Markets and Commodity Derivatives
311

www.junwei.net

“Alternative Investments”

Got a question? Go to Junwei Forums!

Alternative Investments: An Overview
Alternative investments are investments that complement traditional financial instruments such as stocks and bonds. Alternative investments can be classified into two groups:
Alternative assets, which are assets not traded on exchanges.


Examples include real estate, venture capital, etc.

Level 1 Session 18 Asset Valuation

Alternative strategies, which are investment strategies that mostly use traded assets for isolating bets and generating positive excess risk-adjusted return (called alpha).


Examples include hedge funds, and mutual funds.

Copy Right 2004 Thomas Wang, CFA

www.junwei.net

312

“Alternative Investments”

Got a question? Go to Junwei Forums!

General Features of Alternative Investments
Illiquidity
Since most alternative investments are not traded on exchanges, they usually cannot be quickly converted to cash at a price close to fair market value. As a result, investors typically require a liquidity premium on alternative investments.

Level 1 Session 18 Asset Valuation

Difficulty in determining current market value Limited information on historical risk and return Extensive investment analysis required A segmentation premium
This premium is required because alternative assets are typically not priced in a fully integrated global market.

Unique legal and tax considerations
Copy Right 2004 Thomas Wang, CFA

Many alternative investments use special legal structures to avoid some taxes or regulations.
313

www.junwei.net

“Alternative Investments”

What’s Next?
Introduction Investment Companies Real Estate Private Equity: Venture Capital
Level 1 Session 18 Asset Valuation



Hedge Funds and Absolute Return Strategies Closely Held Companies and Inactively Traded Securities Distressed Securities

Copy Right 2004 Thomas Wang, CFA

Commodity Markets and Commodity Derivatives
314

www.junwei.net

“Alternative Investments”

Got a question? Go to Junwei Forums!

Investment Companies: Introduction
An investment company is a financial intermediary that raises capital from investors by issuing new shares and then invests the capital into a portfolio of securities. Each investor who buys the shares of the investment company owns the appropriate percentage of the overall portfolio and its performance. The primary clients of investment companies are individual investors with small pools of capital.

Level 1 Session 18 Asset Valuation

Copy Right 2004 Thomas Wang, CFA

www.junwei.net

315

“Alternative Investments”

Got a question? Go to Junwei Forums!

Types of Investment Companies: An Overview
Investment Companies

Unmanaged Investment Companies

Managed Investment Companies

Revise the portfolio of investments over time

Level 1 Session 18 Asset Valuation

LOS 1.a

Hold a fixed portfolio of investments over Closed-End Funds the life of the company Do not redeem shares Continue to after the initial offering redeem shares at market value after their initial offerings Load Funds

Open-End Funds (Mutual funds) Continue to redeem shares after their initial offerings

No-Load Funds Do not charge commissions at purchase or exit 316

Copy Right 2004 Thomas Wang, CFA

www.junwei.net

Charge commissions at purchase or exit

“Alternative Investments”

Got a question? Go to Junwei Forums!

Closed-End vs. Open-End Funds
Closed-end funds: just like any other publicly traded firms.
They are initiated through a stock offering to raise capital. Their stocks trade on regular secondary market. The market price of their shares is determined by supply and demand. They typically do not offer new shares after the initial offering, and no investment can be withdrawn from these funds.
Level 1 Session 18 Asset Valuation



Thus, investors must trade in public secondary market (e.g., NYSE) to buy or sell shares.

Open-end funds: commonly known as mutual funds.
Different from closed-end funds, open-end funds continue to sell and repurchase shares after their initial offerings. Some funds may charge fees on the transactions.
317

LOS 1.a

Copy Right 2004 Thomas Wang, CFA

www.junwei.net

“Alternative Investments”

Got a question? Go to Junwei Forums!

Fees Charged by Mutual Funds
Annual charges: charged by all mutual funds.
These are mainly the operating expenses of a fund, including:


Management fees Administrative fees Distribution fees, which are paid to the party that arranged the initial sale of the shares.

Level 1 Session 18 Asset Valuation

Annual charges are typically calculated as a percentage of the average net assets of the fund. The ratio of annual charges to average assets is called the fund’s expense ratio.

Sales charges:
Loads, also called front-end loads, are sales commissions charged by funds when an investor purchases the shares.


LOS 1.c

Funds that charge loads are called load funds. Funds that do not charge loads are called no-load funds.

Copy Right 2004 Thomas Wang, CFA

www.junwei.net

Redemption fees, also called back-end loads, are fees charged when investors sell back the shares to the funds.
318

“Alternative Investments”

Got a question? Go to Junwei Forums!

The Nature of Fees Charged by Mutual Funds and the Impact of Such Fees on Fund Performance
Loads, redemption fees, and distribution fees are sales incentives.
Redemption fees are used to discourage quick trading turnover. In general, the longer the investors hold the shares, the lower the redemption fees.


Redemption fees that are set up in this structure are called contingent deferred sales charges.

Level 1 Session 18 Asset Valuation

Management fees are a portfolio performance incentive.
However, management fees are based on net assets of the fund, not on its rate of return. As a result, management fees are not an effective performance incentive because fund managers receive such fees even if the funds perform very badly.

LOS 1.c

Copy Right 2004 Thomas Wang, CFA

www.junwei.net

Generally, fees charged by funds reduce fund performance.
319


相关文章:
JunweiL1Session1_图文.pdf
JunweiL1Session1 - 2005 CFA JUNWEI NOTES... 2005 CFA JUNWEI NOTES Level 1 Junwei? 2004 CFA? ...18 www.junwei.net “Standard of Practice Book” Got ...
2005 CFA level 1 Junwei Notes 18_图文.pdf
2005 CFA level 1 Junwei Notes 18_财会/金融考试_资格考试/认证_教育专区。CFA Level 1 历年讲义资料汇总 “Alternative Investments” Level 1 Session 18 Asset...
2005 CFA level 1 Junwei Notes 13_图文.pdf
2005 CFA level 1 Junwei Notes 13_财会/金融考试_资格考试/认证_教育专区。...18: Alternative Investments 308 Level 1 2005 About the Author THOMAS WANG ...
2005 CFA level 1 Junwei Notes 15_图文.pdf
2005 CFA level 1 Junwei Notes 15_财会/金融考试_资格考试/认证_教育专区。... CFA Financing the Purchases of Bonds in the Secondary Market 18 www....
2005 CFA level 1 Junwei Notes 14_图文.pdf
2005 CFA level 1 Junwei Notes 14_财会/金融考试_资格考试/认证_教育专区。CFA Level 1 历年讲义资料汇总 Level 1 Session 14 Junwei? Illustrated CFA? Study...
2005 CFA level 1 Junwei Notes 11_图文.pdf
2005 CFA level 1 Junwei Notes 11_财会/金融考试_资格考试/认证_教育专区。...1, pp. 1822 B. “The Cost of Capital,” Ch. 9 C. “The Basics...
2005 CFA level 1 Junwei Notes 16_图文.pdf
2005 CFA level 1 Junwei Notes 16_财会/金融考试_资格考试/认证_教育专区。CFA Level 1 历年讲义资料汇总 Level 1 Session 16 Junwei CFA Illustrated Study ...
2005 CFA level 1 Junwei Notes 12_图文.pdf
2005 CFA level 1 Junwei Notes 12_财会/金融考试_资格考试/认证_教育专区。CFA Level 1 历年讲义资料汇总 Level 1 Session 12 Junwei Illustrated CFA Study ...
Junwei Cfa Flashcards - 2005 Level 1 - Thomas Wang.unkown
Thousands of CFA candidates have used Junwei Illustrated Study Notes for ... Junwei CFA Flashcards - 2005 Level 1 Pages: 00000 (Encrypted PDF) On ...
...Reading Assignments Workbook For 2005 CFA Level 1 Exam ....unkown
(CFA) Chartered Financial Analyst 2005 Level I Learning Outcome Statements Preliminary Reading Assignments Workbook For 2005 CFA Level 1 Exam Chartered ...
Additional info: CFA Level 1 Exam passed in December 2005.unkown
contracts Transitional capacity market Price forecasting for middle and long run Additional info: CFA Level 1 Exam passed in December 2005 ...
SUNAMERICA SERIES TRUST.unkown
PROSPECTUS May 1, 2016 SUNAMERICA SERIES TRUST (Class 1, Class 2 and Class 3 Shares) Aggressive Growth Portfolio Balanced Portfolio Blue Chip Growth ...
PROSPECTUSMay 1, 2013.unkown
(Class 1, Class 2 and Class 3 Shares) ...2005 2006 2007 2008 2009 2010 2011 2012 ... CFA Todd Jablonski, CFA Title Portfolio Manager ...
Comprehensive AnnualFinancial Report.unkown
CFA Executive Director Fay Kopp Deputy Executive ... 2005 upon reaching statutorily designated levels. ...As discussed in Note 1, the financial statements...
Regional Economic Outlook.unkown
58 v Abbreviations CEMAC CFA CPI DAC EMP FDI ...2005 2006 2007 2008 2009 2010 2011 Sources: IMF... -7.1 -2.5 -14.1 -12.9 -6.1 -6.2 -...
Author manuscript, published in "Proteomics 7, 18 (2007) 3384....unkown
ew Wiley - VCH Page 1 of 74 PROTEOMICS The ... R., et al., Proteomics 2005, 5, 3765-3777...CFAIPVRPDDPVLSAGGIQCLD LVR LLPAEYGDGVYVPR SNI...
rom product mix to speed of technology migrationG.unkown
CFA - NSI sidney.ho@nomura.com +1 212 298 ...level heralding supply overheating, in our view....notebook in developed countries & PC in BRICs ...
KITE REALTY GROUP TRUSTQUARTERLY FINANCIAL SUPPLEMENTJune 30,....unkown
Jeffrey J. Donnelly, CFA (617) 603-4262 jeff....594 $ 18,304,809 4,664,968 4,569,309 1,...2005 1989 2006 1958/2008 2005 1999 2005 2005 ...
#387070 Description.unkown
2/18/04 *Note: In the rating of this ... Loopshared service to change the voice CFA. ...Level 3 = 4 One Comm = 4 Penn Telecom= P ...
CFA EXECUTIVE BOARD MEETING OCTOBER 1/2, 2005.unkown
CFA EXECUTIVE BOARD MEETING OCTOBER 1/2, 2005 Index to Minutes Secretary's note: This index is provided only as a courtesy to the readers and is not...
更多相关标签: