Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Malyshek who wrote (29114)	3/6/2003 6:59:37 AM
From: TheSlowLane	Respond to of 36161

Malyshek - The Templeton Dragon Fund trades as TDF and trades more like an ETF than a mutual fund (i.e. you can buy/sell it during the day, it is not subject to 4:00 pricing).

To: Malyshek who wrote (29114)	3/6/2003 9:12:23 AM
From: Art Bechhoefer	Respond to of 36161

Malyshek, the Templeton Dragon Fund (TDF) trades on NYSE as a closed end mutual fund. Because it is a closed end fund (fixed number of shares), its market price reflects investor demand at any given point. Typically closed end funds trade at a discount to their net asset value, as is the case here. The largest institutional owner of these shares is the Harvard University endowment fund, which is trying to get the fund turned into a mutual fund in order to eliminate the discount on the current shares. This causes pressure on the fund and tends to push its current price closer to its net asset value, though the net asset value is still somewhat higher. The purpose of investing in this fund would not be for any short term gain but for long term appreciation in companies that benefit from 8+ percent economic growth in China, as opposed to only about 1.5 percent growth in the U.S. and even less in Europe and Japan. The fund can also be used to balance a portfolio of oil stocks, since if the price of oil drops, economic growth, particularly in countries that are net importers of oil, accelerates. Art