Response to the following problem:
A year ago, the Really Big Growth Fund was being quoted at an NTA of $21.50 and an offer price of $23.35; today it is being quoted at $23.04 (NTA) and $25.04 (offer). What is the holding period return on this listed fund (a) based on NTA values and (b) based on offer prices?
Assume that it was purchased a year ago and that its income and capital gains distributions over the year have totalled $1.05 per share?
Which HPR would you use to evaluate the fund manager's performance? Why?