closing funds

07:01 May 6, 2011
This question was closed without grading. Reason: Other

English language (monolingual) [PRO]
Bus/Financial - Investment / Securities
English term or phrase: closing funds
Despite the sharp retracement of Green stocks in April, strong relative performance and effective trading at the margin meant that our Green stocks outperformed their index by 1.9% on a currency adjusted basis (+3.9% YTD), losing 1.1% of closing funds invested in actual terms.

Do you think the author really meant "closing funds" here? The end of the sentence is not clear to me.
Stéphanie Soudais
France
Local time: 01:28


SUMMARY OF ALL EXPLANATIONS PROVIDED
3funds that close to investors at a set time
Stephanie Ezrol


Discussion entries: 4





  

Answers


3 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5
funds that close to investors at a set time


Explanation:
This probably refers to a type of fund that pre-announces at set time of closure for investment.

HERE ARE TWO DISCUSSIONS OF CLOSING FUNDS:

Say you are reading the paper and you notice that a certain fund will be closing its doors to new investors by the end of the current business day. What exactly does this mean? Should you rush to invest in it, increase your holdings in it or rush to sell? Read on to learn the characteristics of closing funds, the reasons why they close and the key factors you must consider when evaluating a closing fund.
...
Closed funds are open-end funds that will no longer accept money from new investors (investors who do not currently own any shares in the fund). For closing funds performing a "soft close", existing shareholders can still buy shares of the fund after its doors have closed to the public. In a "hard close", which is more rare, a fund does not accept new money from new or existing shareholders.
http://www.investopedia.com/articles/mutualfund/03/080603.as...

The study didn't provide average returns versus benchmarks -- investment indexes that matched the kinds of stock the closing funds invested in. But Mr. Kinnel said the funds were typically trouncing their benchmarks prior to closing, and after closing, many were often hovering closer to their benchmarks.

More than 30 funds have closed to new investors so far this year, largely a reflection of the popularity of funds that invest in small companies, which have enjoyed a run on the stock market. In just the past few months, Fidelity Japan Smaller Companies and Royce Funds' Royce Micro-Cap funds closed. One of the more well-known funds to close was the Vanguard Capital Opportunity Fund, which closed in March 2005.
http://online.wsj.com/article/SB114480768842223683.html




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Note added at 5 hrs (2011-05-06 12:45:01 GMT)
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The phrase "closing funds" seems to be used in a somewhat broad way to encompass different types of "closed funds." The "fonds fermés" in French is certainly close to the same meaning, but as in many such terms, it may not be an exact match.

Stephanie Ezrol
United States
Local time: 20:28
Native speaker of: English
PRO pts in category: 4
Notes to answerer
Asker: What is funny is that this client never mentionned such funds (fonds fermés" then?) in the the past (and I have translates a lot of them)


Peer comments on this answer (and responses from the answerer)
neutral  dennis_bg: Doubtful. How do you reconcile it with the phrase about "losing 1.1% of the funds"?
14 hrs
  -> If you read through the Wall Street Journal article, they refer to investors running into closing funds, which in some cases then performed more poorly than the hype, or lost money
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