Investments, tenth edition

 Example  4.1 

Net Asset Value 

 Consider these data from the March 2012 balance sheet of Vanguard’s Growth and Income Fund. What 

was the net asset value of the fund?  

Assets: $2,877.06 

million

Liabilities: 

$    14.73 million

Shares: 95.50 

million

 CONCEPT CHECK 

4.1 

  In the United States, investment companies are classified by the Investment Company Act 

of 1940 as either unit investment trusts or managed investment companies. The portfolios of 

unit investment trusts are essentially fixed and thus are called “unmanaged.” In contrast, man-

aged companies are so named because securities in their investment portfolios continually are 

bought and sold: The portfolios are managed. Managed companies are further classified as 

either closed-end or open-end. Open-end companies are what we commonly call mutual funds.