Category: Money tips Release Date: 2007-05-30
The occasion of the broad market is stable, we propose three closed-end fund investment strategy. Closed-end fund shares for those who are unwilling to take risks they would like to get market-beating returns for investors. A serious asymmetry in closed-end fund risk-adjusted returns.
1, safety programs: arbitrage trading plan in accordance with the remaining maturity period of the average annual rate of return target funds to buy one due in the coming year and stable investment yield is 15% -20%, almost no risk. Select specific fund: Fund Jin, Jijinyuyuan, fund reign Jijinpuhua, fund Yuhua, Jijinjingbo.
2, a strong program: Comprehensive maturity arbitrage trading schemes and structured arbitrage trading scheme the two programs, you can buy the fund-day China, the fund H & Q, fund Yuze, in the coming year there is some risk but with 25% -30 % investment rate of return.
3, the radical program: arbitrage trading scheme based on structured data that can be bought Jijintongsheng, the Fund Pufeng, fund Yulon, fund Jingfu, fund-hing and the next year, with about 50% of the investment rate of return in the future 5 months bear a certain risk, the risk from the next year getting smaller and smaller.
Arbitrage trading program outlined the two closed-end fund arbitrage trading schemes aimed at the natural expiration of how to make a closed-end funds invest in the basic ideas and basic strategy. Due to customer demand, the financial cost and capital investment period vary widely, we have introduced a standardized, generic risk-free arbitrage trading program for your reference. When in use, can be combined with each Fund's investment portfolio to optimize the design of the specific circumstances, for variety, proportion, duration and other elements of re-investment mix and choice. You can select only one fund classification for risk-free arbitrage trading, you can also select a number of only the funds to build a portfolio of Syria to make risk-free arbitrage, but also can limit the use of funds with the design.
As the first fund is only about to expire, for example: Fund Societe Generale is November 14, 2006 expiration, the remaining duration of the remaining 0.45 years, June 2 the unit net worth of 1.0941 yuan, the price of 1.001 yuan, the two difference for 0.0931 yuan, compared with net and the price reflected in discount, worse resale values of 8.51%. 1.001 yuan to buy now, assuming that November 4, or 1.0941 yuan after the expiration of the net, then investors can redeem in accordance with 1.0941 yuan, the investment yield of 9.30%, equivalent to an annualized yield of 21.85%. We are also holding fund the purchase of Societe Generale's market risk analysis. If you want to make the fund unit of Societe Generale's net worth fell to 1.0941 yuan from 1.001 yuan, maturity arbitrage fails, places June 2 points on the card index point-bit computing, only the broader market fell 17.97 percent, slid 300 points, or to 1369 points, Societe Generale on the Fund's risk-free arbitrage trading will constitute a failure, and thus begun to enter the position held by the risk status of the fund. Based on the same analytical methods, can calculate the remaining 53 closed-end fund arbitrage risk-free rate of return and the annualized break-even position corresponds to a large inventory.
Looking ahead to 2006, it is necessary to strengthen again, closed-end fund structured arbitrage trading ideas. If the second half of 2005 closed-end funds to promote a mainstream element of Quotes is a natural expiration of arbitrage trading scheme, then in 2006 the concept of structured arbitrage trading will be more and more recognition of institutions, especially in closed Fund ahead of schedule, and system innovation is not Ruqierzhi Fengzhuan Kai, the only determining factor is due to switch and opening up, the markets and institutions need a new valuation models and pricing methods.
Structured arbitrage trading plan The core idea is to take the first one due the fund as a benchmark to follow the time value of money will be 54 in theory the remaining duration of the fund returns and the actual rate of return for the remainder of the period compared to mining out arbitrage opportunities. Take the first duration of a closed-end funds due - Societe Generale fund the remainder of the period rate of return as a benchmark for assessing the structural arbitrage trading, followed by the 53 funds will expire in the next few years, step by step, so each fund the relative maturity of the Fund, Societe Generale has an expiration time interval, this time interval to give a certain "waiting for cost", and then a time interval to calculate a fund-based Societe Generale's adjusted earnings per Fund for the remainder of the period rate, we keep chasing the remaining period of the current actual rate of return compared to calculate each fund, based on the existence of structural arbitrage fund Societe Generale trading space, the end, each Fund, a theoretical decrease in visual shown up.
