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

Dream of the New World — Fund in the United States (1)

Investment funds originated from the United Kingdom, in the 1920s came to the United States, and greatly to the development and popularity. Near the 1980, only 1 / 16 families to invest in mutual funds, and now, This figure has exceeded 1 / 3, we have changed from a depositor of countries evolve into an investment by the people of countries. Today, the investment fund industry has the world’s largest amount of assets and the most comprehensive management system, known as the Kingdom of the Fund.

Through the United States to jointly review the history of the Fund, We explain to a large extent why the mutual fund industry according to the present mode structure. This part of history in the 20th century and beyond the period of a few obvious :

Initially, including from the 19th century and the turn of the 20th century to the 20th century, the early 1920s;

1920s period of prosperity, but also drawbacks practices throughout the period in 1929 when the crisis reached its peak;

During the Great Depression, at this point in the development and adoption of appropriate laws, including 1940’s “Investment Company Act”;

Slow but steady growth in the period, from 1940 to the late 1970s;

Explosive development period, the 80th and 20th century, the 1990s.

1, the beginning stage

After the First World War, the United States unprecedented economic prosperity in the rapid growth of the national income, domestic and foreign investment activities unusually active and the same time, economic activity has become more complicated. Under such circumstances, the British investment trust system will have been introduced into the United States.

Towards the end of the 19th century and early 20th century, the United States emerged with the English and Scottish Investment Trust similar investment instruments. 1889 established the New York Stock malicious Trust, 1893 The Boston trust and personal property in 1904 and the establishment of the Electric Railway Corporation. And so on the various investment trust on behalf of the American investment ratio is small, in the United States household financial assets value is much lower than the proportion of 1%.

Dream of the New World — Fund in the United States (2)

2, the noise of the 1920s and the collapse

World War I changed the United States and Europe between the creditor and the debtor status of the war destroyed the majority of European industrial base infrastructure, and to the United States miraculously industrial expansion into new markets this has provided an opportunity. In the 1920s, the income of Americans not only to meet consumption, but also to have some of the surplus for investment. The fund industry Equally important is that during the war, the United States government to the people of Taiwan freedom to sell bonds some of them small denominations of 50 dollars, which makes 20 million Americans Institute investment. The 1920s bull market had attracted many of the Americans were directly invested in common stocks. But the advantages of investment trusts are also attracting a lot of investors.

Trust and Investment specific types of trust with the types of changes. 20 era of investment trusts broadly divided into two categories. Article one of the most popular is similar to that of England and Scotland investment trust, or we call closed-end funds. In April 1921, article appeared in the United States organized an investment fund of American International Securities Trust the operation of the fund and the previous British fund basic identical, and also closed-end funds that the Fund issued and outstanding benefit remains fixed number of vouchers, and investors can only market for the benefit of the transaction documents. their prices by regulating supply and demand. From 1924 until 1929 the five years, the establishment of the 56 closed Investment Trust. In a crisis, 89 outlets investment trust closed to the public disclosure of the assets they hold a total value of around 30 billion dollars.

Another 20’s first major investment in the type of company is an open-end fund. Sometimes also called the Boston-based investment trust. Although in the 1920s before the formation of a number of open-end investment trust, but the trust is not public. For example, 1907 Alexander established by the Fund has started as a small circle of investment scope friends a choice — although base The final public. Alexander Fund is an open-end fund, because its charter stipulates that the fund can purchase at any time require funds to the issuer to redeem their purchase fund and in accordance with the date of the unit net cash.

Dream of the New World — Fund in the United States (3)

1924. first appeared in the United States only in the establishment of the first on sale to the public of an open-end fund — Massachusetts Investment Trust (MIT). Within the first year, the fund has attracted 200 investors, 32,000 copies of unit trusts worth a total of 39. 20,000 U.S. dollars. MIT today should also be known as the largest market equity funds. It is from the investment in the 19 blue-chip stocks, 14 Railway Unit, 10 public utilities stocks and shares two insurance companies, begins Cost of sales and effective control of the 5% level. It was originally the asset size of only 50,000 U.S. dollars. is a professor at Harvard University 200 investors of investment purpose is to provide professional investment management, It is administered by the Massachusetts financial services companies. The development of the fund, assets have more than one billion U.S. dollars, more than 85,000 investors. An open-end fund as a novelty the first time in history, truly born. Its birth is bound to the development of the fund industry have brought a new revolution. Here, we wanted to commemorate an open-end fund shape : Edwards. Lefler. Securities has been a vendor, he was one of the small investors have been dissatisfied with the treatment, that the ideal investment vehicle should have professional management and to reduce the risk of portfolio investment, in the demand for liquidity features. Lefler spent three years time to promote his concept of an open-end fund. 1936, the Securities and Exchange Commission to participate in hearings, the right to show their personal interests of the investors concerned, This concern for the mutual fund industry in establishing immortal feats.

Although Following MIT, the other open-end fund to imitate, but However, in an open-end fund is far less popular closed-end funds, in 1929, only 19 open-end fund, its total assets was only 140 million U.S. dollars.

Copyright Fund China 2009.

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