- 20 -
vi. Foreign Equities
The Lipper table lists 91 funds under the heading “World
Equity Funds” and contains NAV and price data for 89 of those
funds.19 Unlike Mr. Burns, we exclude from our sample three
funds from the Lipper table which were trading at unusually high
premiums relative to the other foreign equity funds listed in
that table.20
f. Representative Discount Within the Range of Sample
Fund Discounts
Mr. Dankoff calculates the mean (average) discount and the
median (midpoint) discount with respect to each of his fund
samples. In each instance, the median discount is greater than
the mean discount. Mr. Dankoff opts to use the median, rather
than the mean, discount with respect to each sample for purposes
of determining a minority interest discount factor for each
18(...continued)
table was trading at a premium greater than 11.1 percent.
By contrast, discounts among general equity funds listed in
the Lipper table showed less variation, ranging from 2.1 percent
to 26.4 percent and averaging 12.8 percent.
19 Mr. Dankoff inexplicably derives his sample from the
“World Income Funds” (global bond funds) listed by Lipper.
20 Shares of “Thai Capital” (TC), “Malaysia” (MF), and
“Thai” (TTF) were trading at premiums of 35.1 percent, 36
percent, and 55.7 percent, respectively. No other world equity
fund listed in the Lipper table was trading at a premium greater
than 21.9 percent.
By contrast, discounts among world equity funds listed in
the Lipper table showed less variation, ranging from 1.6 percent
to 31.3 percent and averaging 16.8 percent.
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