What is a merger fund?
What is a merger fund?
Mutual fund merger means the merger of two mutual funds or more resulting in one mutual fund by establishing the new mutual fund so as to purchase or accept the transfer of assets, rights and duties of the former mutual funds and then dissolve the former mutual funds; Sample 1.
How to calculate distribution rate?
In general, a distribution rate is calculated by annualizing the most recent amount paid to investors and dividing the resulting amount by either the market price or the fund’s NAV.
What happens when mutual funds merge?
A merger between two mutual funds may also mean a merger of schemes as both may have similar schemes. Post Sebi’s scheme categorization rules, mutual funds can have only one open-ended scheme in each category, and the merged entity will have to take steps to merge schemes that fall in the same category.
Is merger arbitrage a good strategy?
Merger arbitrage tends to be a high-turnover strategy with many low-risk/low-return positions that change every few months. Because of this lower perceived risk, most merger arbitrage funds use leverage to boost their potential returns and their risk.
What is distribution amount?
Distribution Amount means the sum of (a) Available Funds and (b) Additional Funds Available. Total Distribution Amount means, with respect to any Payment Date, the aggregate amount of collections on or with respect to the Receivables with respect to the related Collection Period.
What is a good distribution yield percentage?
What is a good dividend yield? In general, dividend yields of 2% to 4% are considered strong, and anything above 4% can be a great buy—but also a risky one. When comparing stocks, it’s important to look at more than just the dividend yield.
How much alpha is good in mutual fund?
Anything more than zero is a good alpha; higher the alpha ratio in mutual fund schemes on a consistent basis, higher is the potential of long term returns. Generally, beta of around 1 or less is recommended.
Which is better beta or alpha?
Key Takeaways. Both alpha and beta are historical measures of past performances. A high alpha is always good. A high beta may be preferred by an investor in growth stocks but shunned by investors who seek steady returns and lower risk.
Are mutual fund mergers taxable?
The mergers are not expected to be taxable events for federal income tax purposes, and a Form 1099 will not be generated for shareholders who remain invested in the merging funds through the close of the merger.
How do merger arbitrage funds work?
Merger arbitrage hedge funds make investment profits when they successfully anticipate the outcome of an announced merger or acquisition, and capture the spread between the current market price, and the price at which the stock will be trading after the merger is completed.
What happens if you short a stock during a merger?
A merger is quite similar to a split. The old company’s stock is converted two the new companies stock at some ratio (ie 10 shares become 1 share) and then converted 1-to-1 to the new symbol. Shorting a stock that splits is no different.
Do I pay taxes on distributions?
Dividends come exclusively from your business’s profits and count as taxable income for you and other owners. General corporations, unlike S-Corps and LLCs, pay corporate tax on their profits. Distributions that are paid out after that are considered “after-tax” and are taxable to the owners that receive them.
How much do I need to live off dividends?
To live off dividends, the average household in the United States needs to have $1,687,500 invested. This amount is based on the median household income of $67,500. And assumes a 4% dividend yield on the amount invested in dividend stocks.
What is a good Sharpe ratio for a mutual fund?
Investments having less than 1.00 do not generate higher investor returns. However, investments with Sharpe Ratio between 1.00 to 3.00 are considered great Sharpe Ratio and investments above 3.000 are considered excellent Sharpe Ratio.
Should alpha be high or low?
A high alpha is always good. A high beta may be preferred by an investor in growth stocks but shunned by investors who seek steady returns and lower risk.
What is a good alpha for a mutual fund?
What does Kayne Anderson do?
Kayne Anderson Capital Advisors, L.P., founded in 1984, is a leading alternative investment management firm focused on real estate, credit, infrastructure/energy, renewables, and growth equity.
Why Westchester Capital Management?
With over 50 years of cumulative experience, Westchester Capital Management’s team follows a management style based on the belief that a balanced, diversified portfolio of selected stocks and bonds coupled with a longer-term holding period will outperform a passive investment strategy.
Who is the Managing Partner of Westchester?
Mr. Behren was named managing partner of Westchester in 2010, having held the role of chief compliance officer from September 2002 through June 2010. He joined Westchester in 1994 from the U.S. Securities and Exchange Commission’s New York Regional Office, where he worked as an enforcement attorney for seven years.
What is the merger & acquisition fund?
The Fund seeks to deliver consistent, positive absolute returns with lower volatility to traditional stocks by investing in publicly announced mergers, acquisitions, takeovers, and other corporate reorganizations globally.
Why invest in the merger fund® VL?
Since then, they have been providing investors access to a proven array of alternative strategies, like The Merger Fund ® VL, with the goal of identifying publicly announced, event-driven opportunities.