Ii-semester lesson 1

VOCABULARY PRACTICE


Ex. 1. Look at the words in the box, all of which are from this unit. Match the words with the correct definition from the list below.

portfolio, no-load fund, mutual fund, performance, diversification, bracket, managed fund

1. Form of unit trust that employs no salesmen and therefore incurs no commission.

2. The practice of spreading investments over several different securities to reduce risk.
3. An open-end investment company which pools the investments of many investors to provide them with professional management, diversification and other advantages.
4. Holdings of securities of an individual or institution may contain bonds, preferred stocks and other securities.
5. Earnings or losses made on a security or by a company.
6. A group of people or things that are in some way similar to each other.
7. Fund that is set up by an intermediary, and invested (using a stockbroker) on behalf of an investor.


Ex. II. Look through this excerpt and then fill the spaces with words from the box. Translate the text into Russian.

investment trusts, stock price indices, trust funds, pool, invested, open-end investment (2), frond-end load

I. Stock Investment Trusts.

Recently, there was an increase in funds linked to ... ... (1) and funds ... (2) in some specific industry groups. In open sales, unit-type ... ... (3) constituted the mainstream in the past, but recently, ... ... (4) trust funds were established one after another. In general, ... (5) trusts attained phenomenal growth. In the recent one-year period, establishments of stock investment ... ... (6) totaled Ұ17,724.9 billion, and the net increase in funds was Ұ1,877.0 billion.

funds, NAV, tax-exempt, open-end product, bond investment trusts

II. Bond Investment Trusts.

Investment trust companies displayed ingenuity in recent years in the development of new products for ... ... (1), such as an ... ... (2) which mainly invest in foreign bonds and enables each investor to freely choose different courses of risk hedging* on the basis of his judgment about the yen's future – whether the yen will rise or decline. Establishments of bond investment trusts in the recent one-year period totaled Ұ13,910.7 billion, and their ... (3) showed a net increase of Ұ491,8 billion.
*hedging – хеджирование, минимализация риска

managed, portfolio, investment trust, balanced fund, transaction, conversion, load, redemption

III. Peculiarities of Portfolio Securities.

During the past one-year period, ... ... (1) made net purchases of stocks totaling Ұ1,898.8 billion on the market. Because the stock appreciation was superimposed on that, the total value of shares in investment trust ... (2) rose by Ұ4,761.4 billion to Ұ17,322 billion as of June 30, 1989. (Its ratio to total net assets was 31.4%, including Ұ451,0 billion in foreign stocks.)
Bond ... (3) ran net purchases of Ұ1,346.5 billion. However, because ... (4) and ... (5) into shares totaled Ұ4,432.9 billion, bonds in investment trust portfolios decreased by Ұ2,264.4 billion to Ұ20,264.4 billion (their ratio to total net assets was 36.8%, including Ұ4,563.5 billion in foreign bonds).
Investment in foreign stocks decreased by Ұ11.1 billion (2.4%), while investment in foreign bonds rose Ұ747.4 billion (19.6%). As in the preceding year, investment trusts ... (6) their funds with emphasis on domestic stocks and foreign bonds.