2 years ago, Julian purchased 500 units of CommonWealth (CW) Equity funds from Royal Investors Financial, a mutual fund dealer. Royal Investors Financial distributes mutual funds with a front-end load of 4%. Dianne is the Dealing Representative who has been servicing his account for the past year. They have decided it is in Julian's best interest to change 250 units of his CW Equity fund to units of the CW Bond fund. Which of the following statement is CORRECT? There will be a 4% front-end load charged on the market value of units being switched to the CW Bond fund. O Due to Julian already having existing investments with Royal Investors Financial no front end load is applied to additional purchases. If the CW Equity fund were being changed to units from a different fund family a front end load would apply. When switching units between mutual funds from the same fund family, there are no tax consequences. Which of the following form part of the disclosure documents relating to mutual funds? O balance sheet, income and cash flow statements of the portfolio management company ○ statement of net assets, annual information form, management reports of fund performance O annual proxy voting record, audited financial statements, and proof of registration new account information form, quarterly financial statements, and security certification
2 years ago, Julian purchased 500 units of CommonWealth (CW) Equity funds from Royal Investors Financial, a mutual fund dealer. Royal Investors Financial distributes mutual funds with a front-end load of 4%. Dianne is the Dealing Representative who has been servicing his account for the past year. They have decided it is in Julian's best interest to change 250 units of his CW Equity fund to units of the CW Bond fund. Which of the following statement is CORRECT? There will be a 4% front-end load charged on the market value of units being switched to the CW Bond fund. O Due to Julian already having existing investments with Royal Investors Financial no front end load is applied to additional purchases. If the CW Equity fund were being changed to units from a different fund family a front end load would apply. When switching units between mutual funds from the same fund family, there are no tax consequences. Which of the following form part of the disclosure documents relating to mutual funds? O balance sheet, income and cash flow statements of the portfolio management company ○ statement of net assets, annual information form, management reports of fund performance O annual proxy voting record, audited financial statements, and proof of registration new account information form, quarterly financial statements, and security certification
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:2 years ago, Julian purchased 500 units of CommonWealth (CW) Equity funds from Royal Investors Financial, a mutual fund dealer.
Royal Investors Financial distributes mutual funds with a front-end load of 4%. Dianne is the Dealing Representative who has been
servicing his account for the past year. They have decided it is in Julian's best interest to change 250 units of his CW Equity fund to units
of the CW Bond fund.
Which of the following statement is CORRECT?
There will be a 4% front-end load charged on the market value of units being switched to the CW Bond fund.
O Due to Julian already having existing investments with Royal Investors Financial no front end load is applied to additional
purchases.
If the CW Equity fund were being changed to units from a different fund family a front end load would apply.
When switching units between mutual funds from the same fund family, there are no tax consequences.
Transcribed Image Text:Which of the following form part of the disclosure documents relating to mutual funds?
O balance sheet, income and cash flow statements of the portfolio management company
○ statement of net assets, annual information form, management reports of fund performance
O annual proxy voting record, audited financial statements, and proof of registration
new account information form, quarterly financial statements, and security certification
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