The International Encyclopedia of Mutual Funds, Closed-End Funds, and REITs

376 Pages·2000·18.237 MB·English

by  Peter W. Madlem, Thomas K. Sykes

The International
Encyclopedia of
Mutual Funds,
Closed-End Funds and
Real Estate Investment
Trusts
Peter W. Madlem
Thomas K. Sykes
| J Routledge
Taylor &. Francis Group
LONDON AND NEW YORK
First published 2000 by
The Glenlake Publishing Company, Ltd.
Published 2013 by Routledge
2 Park Square, Milton Park, Abingdon, Oxon 0X14 4RN
711 Third Avenue, New York, NY, 10017, USA
Routledge is an imprint of the Taylor & Francis Group, an informa
business
© 2000 The Glenlake Publishing Company, Ltd.
All rights reserved. No part of this book may be reproduced in any form or by
any means electronic, mechanical, photocopying, recording, or otherwise with­
out the prior written permission of the publisher.
ISBN 13: 978-1-579-58086-5 (hbk)
ABOUT THE AUTHORS
Peter W. Madlem has over 15 years of experience in investment research
and management. He has been a registered investment advisor and presi­
dent of his own publishing and investment advisory companies. He is cur­
rently a portfolio manager with Santa Barbara Bank & Trust.
A published author, he has written five books and numerous articles
on investment topics. His comments and insights have appeared in the
pages of many leading financial newspapers and magazines including the
New York Times, Wall Street Journal, Investor’s Business Daily, Los
Angeles Times, Money Magazine, and Kiplinger’s Personal Finance.
Mr. Madlem is also a published and recorded classical composer
whose works are heard in concert halls around the world and are avail­
able on Sony/Classical and Sonora Records.
Thomas K. Sykes is a financial analyst with the investment management
deparment of Santa Barbara Bank & Trust. He is also a database devel­
oper for numerous companies in Santa Barbara, California.
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TABLE OF CONTENTS
Section I MUTUAL FUNDS .................................................................1
WHAT IS A MUTUAL FUND?...............................................................1
HOW TO INVEST IN A MUTUAL FUND...........................................4
HOW A MUTUAL FUND OPERATES.................................................6
CATEGORIES OF MUTUAL FUNDS....................................................7
Diversified Common Stock Companies ...........................................7
Aggressive Growth Funds............................................................7
Emerging Market Funds...............................................................8
Europe Stock Funds.....................................................................9
Foreign Stock Funds.....................................................................9
Growth Stock Funds...................................................................10
Pacific Stock Funds ...................................................................10
Small Company Funds ...............................................................10
World Stock Funds ......................................................................11
Balanced Companies..........................................................................11
Asset Allocation Funds...............................................................11
Balanced Funds ..........................................................................12
Growth and Income Funds........................................................13
Income Companies............................................................................14
Equity-Income Funds.................................................................14
Multi-Asset Global Funds...........................................................15
Specialized Companies......................................................................15
Bond and Preferred Stock Companies.............................................15
Convertible Bonds ......................................................................16
Corporate Bonds—General ......................................................16
Corporate Bonds—High Quality................................................17
Corporate Bonds—High Yield....................................................17
Government Bonds—Adjustable Rate Mortgage.....................18
Government Bonds—General....................................................18
Government Bonds—Mortgage..................................................19
Government Bonds— Treasury ..................................................19
Multi-Sector Bonds......................................................................19
Municipal Bonds ........................................................................19
Short-Term World Income Bonds .............................................20
World Bonds................................................................................20
MUTUAL FUND TABLE KEY.............................................................20
MUTUAL FUND TABLE .....................................................................24
Section II CLOSED-END FUNDS .................................................235
WHAT IS A CLOSED-END FUND? .................................................235
Diversifiied versus Non-Diversified Closed-End Funds..............237
Fees and Expenses...................................................................237
HOW TO PURCHASE A CLOSED-END FUND.............................237
Items to Consider when Buying a Closed-End Fund..................237
REGULATION.......................................................................................238
DISCOUNTS ..........................................................................................238
How to Calculate the Discount or Premium ................................240
RIGHTS OFFERINGS ..........................................................................241
CLOSED-END FUND CATEGORIES ...............................................242
Bond Funds .....................................................................................243
Corporate Bond Funds—General...........................................244
Corporate Bond Funds—High Yield......................................244
Income Funds............................................................................245
International Bond Funds........................................................245
Multi-Sector Bond Funds ........................................................246
Municipal Bond Funds—National...........................................246
Municipal Bond Funds—Single State ....................................247
U.S. Government Bond Funds.................................................247
Equity Funds ...................................................................................247
Convertible Funds ...................................................................248
Domestic Equity Funds.............................................................249
Single Country Equity Funds .................................................249
World Equity Funds .................................................................250
CLOSED-END FUND TABLE KEY .................................................250
CLOSED-END FUND TABLE.............................................................254
Section III REAL ESTATE INVESTMENT TRUSTS (REITs) .283
WHAT IS A REAL ESTATE INVESTMENT TRUST (REIT)? . . .283
HISTORY................................................................................................287
THE MODERN REIT............................................................................288
REIT Management..........................................................................288
HOW TO INVEST IN A REIT............................................................288
Funds From Operations...................................................................289
Share Price.......................................................................................289
REIT CATEGORIES ............................................................................289
Property Type...................................................................................290
Geographic Focus............................................................................290
THE UPREIT.........................................................................................290
THE DownREIT.....................................................................................291
REIT TABLE KEY................................................................................291
REIT TABLE.........................................................................................294
INDEX OF MUTUAL FUNDS, CLOSED-END FUNDS, AND
REITs .....................................................................................................307
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Section I
MUTUAL FUNDS
The most extraordinary financial development in the last half of the twen­
tieth century has been the growth and development of the Investment
Company. Investment companies, or mutualfunds, currently number over
8,000 in the U.S. alone. That’s over three times more than all the stocks
trading on the New York Stock Exchange (NYSE). The mutual fund
industry is now the second largest financial institution in the nation, with
assets approaching $4 trillion, up from $1 trillion in 1991. Over the past
five years, the percentage of U.S. households that invest in mutual funds
has risen from 25 to 37 percent.
Investment companies have been in existence long before World War
II. Their origins can be traced back to the early traders of biblical times.
Mutual funds enjoyed considerable popularity in England and Scotland
beginning some 140 years ago. Many of these early British funds helped
the westward expansion in the United States by supplying capital to pur­
chase land and build railroads. In the U.S., early investment companies
known as investment trusts played a prominent role in the booming
1920s.
Many innovations have brought the modem mutual fund to its current
position as an important financial institution. Millions of people now con­
sider mutual funds in the same class as banks, savings and loans, and life
insurance as tools for the accumulation of wealth and financial planning.
Mutual funds are ideally suited for the smaller investor, but many
wealthy and institutional investors find investment companies can effec­
tively address particular investment issues and provide effective returns.
WHAT IS A MUTUAL FUND?
A mutual fund is an investment company, a corporation, or trust whose
sole business is to make investments on behalf of individuals and institu-
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