Question

Last year at this time, a mutual fund had an NAV of $13.20 per share. Over the past year the fund paid dividends of $0.70 per share and had a capital gains distribution of $1.20 per share. What is the holding period return assuming that the current NAV is $14.42

Answer 1

HPR = 23.64%

Step-by-step explanation:

The one period rate of return can be calculated as the change in per unit net assets value plus per unit capital gains and per unit capital gains

HPR = D + (NAVend - NAVbeg) + C /NAV beg

Given NAVbeg = $13.20, D = $0.7, NAVend = $14.42 C = $1.20

HPR = 0.7+(14.42-13.20)+1.20/13.20

=0.2364/23.64%