Sentences with phrase «shareholder redemptions»

Mutual funds often have to sell holdings that have increased in value to raise cash to meet shareholder redemptions.

A mutual fund manager must constantly re-balance the fund by selling securities to accommodate shareholder redemptions or to re-allocate assets.

The board forthrightly attributed the closure to «recent Fund performance, the inability of the Fund to garner additional assets, the relatively small asset size of the Fund, recent significant shareholder redemptions, and other factors.»

Even if bond funds had to sell securities to meet shareholder redemptions, the amount of redemptions in June would have equaled less than 1 percent of the trading volume of the primary dealers.

Money Market Stress Tests - Our sophisticated stress testing tools help clients address the procedures required by the SEC to estimate the effect of tail events on liquidity, issuer concentration and shareholder redemptions.

NextShares that transact with Authorized Participants primarily in kind may experience less cash drag than mutual funds, which often need to hold cash to meet shareholder redemptions.

The fact that ETFs are traded on the secondary market just like stocks and bonds also helps reduce asset turnover by making it less likely the funds will need to sell assets to cover a shareholder redemption.