Financial Planning Exercise 1 Estimating cost of mutual fund investments Use the

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Financial Planning Exercise 1 Estimating cost of mutual fund investments Use the mutual fund quotes in table below, and assume that you can buy these funds at their quoted net asset values EXHIBIT 13.4 Mutual Fund Quotes Open-end mutual funds are listed separately from other securities and have their own quotation system; an example is shown here in online quotes from The Wall Street Journal. Note that these securities are also quoted in dollars and cents and that the quotes include not only the fund's NAV but also yearto-date (YTD) returns. Also included as part of the quotes is an indication of whether the fund charges redemption and/or 12b-1 fees. American Century Core Plus Fund, class A shares a fund with a front-end load fee (p YTD 3-year Family/Fund American Century A CorePis p EmgMktAt Growth p IntlBnd t LtTf Artisan Funds EmgMktslnv EmgMktslnst IntlVal Inv MidCaplnv MidCapVal Inv SmCapVal Inv Valuelnv Symbol NAV Chg %return %chg American Century Emerg- ing Markets, class A shares; a fund with both 12b-1 and front-end load fees (t) -0.01 Accax AEMMX TCRAX AIBDX MMBAX 2.2 9.6 16.7 -3.5 0.01 10.87 0.9 9.31 0.04 11.9 29.68 12.41 0.10 -5. 11.41 American Century Interna- tional Bond Fund, class A shares; a fund with a front- end load fee and possible redemption fee (p) 0.01 -0.5 ARTZX APHEX ARTKX ARTMX ARTOX ARTVX ARTLX 13.03 12.93 36.81 -0.21 48.20 25.61 14.30 13.87 -0.04 0.04 0.03 8.9 13.03 5.3 18.8 17.9 16.5 8.0 15.4 American Century Long- lerm lax-Hree Fund, clasS A shares; a fund with a front- end fee (p Artisan International Value Fund, a true no-load fund (no front-end, back-end, or 12b-1 fees) 7.6 -0.01 -0.07 -0.09 3.9 1.1 6.0 p-Distribution costs apply, 12b-1 r-Redemption charge may apply. t-Footnotes p and r apply. Source: The Wall Street Josernal, http://onlinc.wsj.commdolpublipage2 3048-usmfunds A-usmfunds.html, accossed May 22, 2015; NAV-nct assct valuc. Chg-change in NAV from previous trading day. 3-ycar % chg-s trailing three-year annualized.

Explanation / Answer

a) $9.31 per unit for American Century Emerging Markets Funds

b) $29.68 per unit for American Century Growth Funds

c) $12.41 per unit for American Century International Bond Funds

d) $14.30 per unit for Artisan Small Cap Value Fund Investor Shares

ACCQX and TCRAX have 12b-1 fees.

AEMMX and AIBDX have redemption fees.

ARTKX is a true no-load fund.

AEMMX has the highest YTD return of 11.9%.

AIBDX has the lowest YTD return of -5.1%.

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