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Prior charges |
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Prior chargesThe fixed liabilities of an investment trust including loan capital and usually preference shares. The subtraction of these charges from total assets gives the net asset value of the trust. Prior charges may be expressed either at par value or current market value.Similar MatchesManagement chargesManagement chargesCharges made by the managers of, for example, a mutual fund or unit trust which cover investment management and administration costs. Charges usually take the form of a percentage fee based on the value of the fund. The charges for unit trusts tend to be higher than for investment trusts (typically 1.5% as against under 1%). Tracker funds, which are passively managed to follow an index, are much cheaper to run, and the costs passed on to investors are correspondingly lower. Exchange-traded funds, a new type of collective fund imported from the USA, also have lower charges than conventional unit trusts. Carrying ChargesCarrying ChargesThe costs involved in keeping a property which is intended to produce income (either by sale or rent) but has not yet done so. Carrying chargesCarrying chargesThe cost of storing a physical commodity, consisting of interest on the invested funds, insurance, storage fees, and other incidental costs. Carrying costs are usually reflected in the difference between futures prices for different delivery months. When futures prices for deferred contract maturities are higher than for nearby maturities, it is a carrying charge market. A full carrying charge market reimburses the owner of the physical commodity for its storage until the delivery date. |
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