dual purpose fund

Dual Purpose Fund

A closed-end fund that offers two types of shares: income shares and capital shares. Income shares offer holders a portion of the fixed return on the fund's portfolio, and attract low-risk investors. Capital shares do not offer a portion on the fixed return, but instead offer holders a portion of the returns on stocks or similar investments, attracting medium- or high-risk investors. An advantage to the dual purpose fund is that it offers shareholders a choice as to which type of investment they would like to make.

dual purpose fund

A special-purpose, unusual type of closed-end investment company offering two classes of stock in approximately equal amounts. One class, called income shares, is entitled to all the portfolio's income, while the second, called capital shares, is entitled to appreciation in investments in the firm's portfolio. At the time a dual purpose fund is established, a date is set on which the fund will be liquidated. At that time, income shareholders receive preference up to the par value of their shares and capital shareholders receive any excess. Also called dual fund, leveraged investment company.
References in periodicals archive ?
Brennan as Chief Executive Officer of The Vanguard Group and of a closed-end, dual purpose fund, Gemini II (NYSE: GMI and GMP), which is a member of The Vanguard Group of Investment Companies.
18 per unit from the sale by Oppenheimer Capital (the "Operating Partnership") of its investment advisory contracts and other business relationships for the Quest for Value Dual Purpose Fund Inc.
Bogle serves as Chairman of the Board of Directors of a closed- end, dual purpose fund, Gemini II (New York Stock Exchange: GMI and GMP), which is a member of The Vanguard Group of Investment Companies.
Included in net income is the Partnership's share of a gain recorded by Oppenheimer Capital (the "Operating Partnership") resulting from the sale of the investment advisory and other contracts and business relationships for its Quest for Value Dual Purpose Fund (the "Dual Purpose Fund sale") to OppenheimerFunds, Inc.
Net income (excluding the Dual Purpose Fund sale) for the fiscal quarter ended July 31, 1997 was $16.