AI For Trading:Handling Withdrawals and Closed End Funds (39)

Holding Cash

The total return of an open end fund is a weighted average of its portfolio return and the return on its cash holdings. The fraction invested in equities × return on equities + fraction invested in cash × return on cash = total return \(\frac{1}{2} \times 10\% + \frac{1}{2} \times 2\% = 5\% + 1\% = 6\% \)

Total return of a fund

• 50% in Equities
• Return on Equities:10%
• 50% in Cash
• Return on Cash:25%

开放式基金的总回报率是其投资组合收益率和现金持有收益率的加权平均值。投资于股票的比例×股票回报率+现金投资回报率×现金回报率=总回报率

练习题

A mutual fund expects $10,000 of redemptions on any given day. So the fund keeps this amount in cash. It has $100,000 of Assets Under Management (AUM), $10,000 in cash, and remaining $90,000 is invested in a portfolio of stocks. Its portfolio of equities returns 5%, while the cash returns 0.5%. What is the total return of the fund?

A: 2.75%
B: 4%
C: 4.59%
D: 4.55%

答案：D

The 5% return is weighted by 90/100, while the 0.5% return is weighted by 10/100. The weighted average (total return) is 0.05 (90/100) + 0.005 (10/100) = 4.55%.

Closed End Funds(封闭式基金)

Closed End Funds accept investors at the start of the fund, and do not take new investments nor handle redemptions afterward. This means that the closed end fund does not need to keep cash for liquidity purposes or to handle redemptions. Investors who wish to stop investing in the fund may sell their shares to other investors on a stock exchange, the same way they would sell stocks.

封闭式基金在基金开始时接受投资者，之后不会接受新投资或处理赎回。这意味着封闭式基金不需要为流动性目的保留现金或处理赎回。希望停止投资该基金的投资者可以将其股票出售给证券交易所的其他投资者，就像卖出股票一样。

为者常成，行者常至