Managed funds

[qaz]

After reading the post about Navra's managed fund and asking why managed funds are generally open ended (unlimited units) rather than close ended like stock market shares (scarcity factor). Does anyone know why this is a case. At the end of the day, managed funds and business's are there to do the same thing, make money. Why arent managed funds simply listing as small public investment companies and getting their profits from increasing their unit/share price and giving the investor the benefits of relative scarcity instead of simply creating more units should the fund do reasonably well and experience a boost in funds.

[Garry K]

After reading the post about Navra's managed fund and asking why managed funds are generally open ended (unlimited units) rather than close ended like stock market shares (scarcity factor). Does anyone know why this is a case. At the end of the day, managed funds and business's are there to do the same thing, make money. Why arent managed funds simply listing as small public investment companies and getting their profits from increasing their unit/share price and giving the investor the benefits of relative scarcity instead of simply creating more units should the fund do reasonably well and experience a boost in funds.

Listed Investment Companies already exist (over 30)
eg Argo Investments (ARG), Aust Foundation Investment Co (AFI)
Milton (MLT) etc

GarryK

[qaz]

How do they compare (returns wise) to open ended unit trusts? (in general of coarse)

[Garry K]

How do they compare (returns wise) to open ended unit trusts? (in general of coarse)
They vary - depends on the fund.
Looking at the table in personal investor mag the returns for 12 months to 30/5/04 vary from 2% to 36%.

Suggest you check out their individual LIC web sites.


GarryK