Funds Investing

Termination and winding-up applies to all funds with a fixed termination date or a stated duration and in certain circumstances to other funds or the sub-funds of umbrella funds.

Whilst some of today’s mutual funds have been in existence for 50 or more years, at some point all funds face the prospect of termination, either because falling investor interest leads to mass redemption’s, making the fund uneconomic to operate, or because changes in the investment or economic environment make the investment objective unattractive or unachievable, making it extremely difficult to attract new investors. In such cases, the manager may be permitted to apply to the regulator for the fund’s authorisation to be revoked on the grounds that its continued operation is no longer commercially viable, and for it to be wound up or terminated. Read the rest of this entry »

I talk with prospective brokerage clients all the time, and find it revealing, although not surprising, that while they’ll lose sleep worrying about how many dollars their holdings are worth, it rarely occurs to them to worry about the worth of the dollars themselves.

That’s an enigma that shouldn’t be an enigma. In a well managed economy, dependable purchasing power should not be a problem. Domestic investors shouldn’t have to worry about the dollar.

The fact that the declining dollar is a domestic problem and people aren’t generally aware of it shows how successfully the government has used the consumer price index (CPI) as a red herring to divert attention from the real cause and extent of inflation. Read the rest of this entry »