NO.PZ2019103001000009
问题如下:
Deveraux realizes that the fund’s return may decrease if the equity allocation of the fund is reduced. Deveraux decides to liquidate $20 million of US Treasuries that are currently owned and to invest the proceeds in the US corporate bond sector. To fulfill this strategy, Deveraux asks Dan Foster, a newly hired analyst for the fund, to recommend Treasuries to sell and corporate bonds to purchase.
Foster recommends Treasuries from the existing portfolio that he believes are overvalued and will generate capital gains. Deveraux asks Foster why he chose only overvalued bonds with capital gains and did not include any bonds with capital losses. Foster responds with two statements.
Statement 1:Taxable investors should prioritize selling overvalued bonds and always sell them before selling bonds that are viewed as fairly valued or undervalued.
Statement 2:Taxable investors should never intentionally realize capital losses
Are Foster’s statements to Deveraux supporting Foster’s choice of bonds to sell correct?
选项:
A.Only Statement 1 is correct
Only Statement 2 is correct
Neither Statement 1 nor Statement 2 is correct.
解释:
C is correct.
Since the fund’s clients are taxable investors, there is value in harvesting tax losses. These losses can be used to offset capital gains within the fund that will otherwise be distributed to the clients and cause them higher tax payments, which decreases the total value of the investment to clients. The fund has to consider the overall value of the investment to its clients, including taxes, which may result in the sale of bonds that are not viewed as overvalued. Tax-exempt investors’ decisions are driven by their investment views without regard to offsetting gains and losses for tax purposes.
第一个错是因为always吗 可以解释一下吗