By: Sun Zhao Yang
Compiler: http://www.fundcn.org

When mankind entered the era of industrial civilization, wealth, the enrichment road has become more civilized, observe the sequence. People not only created a capital market, so that all the industrial and economic capital of the Lane blend gathering also invented a new type of a more professional management, investment pools and spread the risks, and shared interests. sharing risks for the characteristics of the financial instruments — Investment Fund, and it swept the world soon, to flourish.

Understanding of the past in order to better grasp the future; To obtain overseas is to advice from others away into jade. Fund 100 years of history, of ups and downs, but its vigorous development is an indisputable fact. Let us approached history, to listen to a different country from the wealth Door open voice; Let us also look at the fans towards this door to the wealth of young creatures. For this reason, the joint special gold and silver introduced on Capitol Hill : “open fund for the development of history”, the United Kingdom, the United States, Japan and China fund for the development of historical analysis, to enable more investors to understand the open-end fund.

From the fund for the development of history, an open-end fund generally after four stages of development :

Have stage. Since 1868 the first public investment funds and the Foreign and C. olonial government Trust in the United Kingdom to the United States in 1924 as Boston up the world’s first company only open-end funds — Massachusetts Investment Trust Fund;

The initial development stage. From 1924 to 1940 the United States “Investment Company Act” enacted;

Steady growth stage. 1940 to the 1980s of the 20th century;

The rapid development stage. 1980s of the 20th century to date, the Global Fund to be rapid development.

An open-end fund origin — Fund in the United Kingdom (1)

From the open-end fund earliest history of the origin of view, the Fund derived from the market economy is more developed capitalist development period.

In 1774 and 1776, Dutch Ebaer Mr Xu Huai Teweixi respectively, and the creation of Quantity Fund and Favorable and cautious Fund — This is the earliest history the Fund.

19th century Europe, a number of VIPs to their personal property, specialized financial well-hire lawyers and accountants to use their management of the property, paid only a small amount of management fees. Dutch King William I, in 1822 founded the first private funds invested in the securities market. and in Europe and the Americas between the monetary value of investments. By the world public that the early Securities Investment Trust Fund. As a community of financial instruments, the funds can really originated in the United Kingdom.

Modern Britain is the birthplace of investment funds. The mid-18th century, the British in the wake of the first industrial revolution, by virtue of industrial development and foreign expansion has accumulated substantial wealth, causing domestic interest rates declining, the value of funds to seek a way out. But at that time, the Fund has also been very popular, investors own extreme lack of international investment in the field of knowledge, the international investment environment not a clear understanding, and unfamiliar, language unrelated, serious prevented with the local exchange, unable to manage themselves. Results and some speculative elements fraudulent use of their outward rush of enthusiasm for investment, the establishment of a large number of joint-stock companies, encourage investors to buy their shares and then declare bankruptcy, with money to escape. A large number of investors who suffer taken, for bankrupt regrettable. However, it is brewing a new fund industry changes. Investors after painful lesson, they yearn to have a large pool of investment funds, commissioned investment and management ideas. The idea of the British government’s support of the government organizations and investment companies, commissioned expertise fiscal experts invested, and to spread the risks allow small investors to large investment and enjoy the same international investment handsome rewards Meanwhile lawyers commissioned letter signed investment contracts to ensure the safety and value. Such a pool of experts commissioned by everyone operating capital investment, investors will soon be a warm response. This early investment trust companies have emerged. 1868. The world’s first investment trust of the Foreign and Coloni al government Trust was born in England, is the first one specifically for small investors to achieve economies of scale investment for the purpose of raising funds. Diversify investment in foreign colonial mainly corporate bonds, totaling 480,000 pounds, the Trust for the period of 24 years investors to 7% annual rate of return over the British government bonds than the 3.3% annual interest rate to more than double. Such funds with similar stock, not divestment, nor units convertible, interest is limited to dividends and bonuses. Their mode of operation similar to the modern closed contractual funds through contracts binding the parties to the relationship, and the use of an agent to manage the Fund assets and fixed interest rate system. Therefore, the lease Fund is the first of a fund than corporate funds to back the development. Meanwhile, this fund also reflects some features of the modern features of the Common Fund. If 3% of the cost of sales and 25 basis points in management fees.

An open-end fund origin — Fund in the United Kingdom (2)

Investment fund its heyday in 1868 after. Scots — to the rich that is considered to be the pioneer investment trust. After he inspected the field, that the United States urgently needs a large number of railway construction funds, therefore, 1873 in the investment fund birthplace — Dan city, the first professional fund management organization established Scottish Trust for the Americas. Late 19th century British law as a collective investment funds provide a good environment. To 1875, has 18 overseas with the colonial government and the Trust have similar trust, Trust the total paid-up capital of more than 6.5 million pounds. These England and Scotland, investment trust and closed-end funds are similar to the overall focus on creating investment income. 1879 “British Company Law” was promulgated and Since then investment funds from the lease-entered the era of professional management Co., This is also the history of the development fund a big leap. This corporate fund the elimination of some provisions, such as the right of investors to pay for such dividend identified. Investment securities and various financial products it is the largest and only business activities. Its operating system is some flavor of the latter, the significance of the Trust no longer exists.

From 1870 onwards the 60-year period, a total of more than 200 British investment fund management company set up throughout the country. In 1931, England only the first in the world to net asset value to the investor buys fund units of investment funds, It has become a modern investment trusts milestone.

1943, the British government set up a trust deed overseas organizations, The fund, except for fund companies to redeem the net asset value of fund units, still trust deed clearly a flexible portfolio, marking the British modern securities investment funds start.

An open-end fund origin — Fund in the United Kingdom (3)

The end of the 19th century and early 20th century British investment fund most advanced stage. British investment fund has been closed is the main type leases. 20 Century 60’s, the open-end fund size of the total assets of steady growth, 1980s of the 20th century to more than 25% of the average annual growth rate is far higher than the closed-end funds with a growth rate in 1984 after an open-end fund has been higher than the size of closed-end funds. Closed-end funds in 1965, the market is an open-end fund six times, In 1987 only open-end fund 40%.

British closed-end funds to the general investment trust company shares to the public in the form of fund-raising. and the open-end fund to the general unit trust funds in the form of existence by large financial institutions, such as banks, insurance companies and investment management groups and so on. The unit trust fund management and the availability of total assets, exceeding the investment trust companies. In 1987, an open-end fund management institutions of a total of 161. But the greatest of these 20 institutions manages 2 / 3 of the Fund. As of the end of 1997, the British unit trust management companies 154, Trust fund management unit nearly 1,600, managing assets over 150 billion pounds; and the investment trust companies have more than 570, managing assets of £ 58 billion. To March 2002, the United Kingdom some 1,980 unit trust funds from 150 management companies, assets of about 240 billion pounds. As of June 2003 the British investment fund assets valued at 215 billion pounds, the fund management companies 130.

British investment fund industry assets under management, standardized English investment fund industry is the main law in 1986, “Financial Services Act” 1997 “Open Investment Company Law” in 2001 and the entry into force of the “financial services and market law.”

British investors preferred stock investment fund the end of 1999, equity funds accounted for the value of the assets of British fund about 84%, bond funds accounted for 85% The remaining mixed funds or balanced funds. British money market fund assets almost non-management assets less than 1% of the total. British investors to turn the Common Fund mainly as a long-term investment vehicle. British equity funds and developed money market funds small-scale; mainly because the Bank of England Mutual Assistance Association, and housing on small savings deposits restricted stock market trading was active, Therefore, investors will have little funds parked in money market funds, which with the United States singing with the other European countries are markedly different.

Although British investors in the open-end fund redemption annually are rapidly increasing, but the rate of increase in subscription faster, The result is an open-end fund in each of the net amount of investment is rapidly increasing. As can be seen, the British Open Fund of the more slow, but once there, their development has been faster, far exceeds the huge size of the closed-end funds, and this trend as an open-end fund, is the annual increase.

Copyright Fund China 2009.

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