Shares of an income fund


A buyer bought shares of an income fund one year ago with $700,000. Since the buyer bought A shares, the buyer paid a 1% front-end load. The Net Asset Value 1year ago was 12.05 and NAV return has been 12% since the purchase. The fund has distributed $0.05 of dividends and $0.45 capital gains per share.

i) How many shares of the income fund did the buyer receive with their $700,000 purchase?

ii) If the investor sells their income fund position today, what is their holding period return?

 

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Financial Accounting: Shares of an income fund
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