Limited Duration Bond Fund seeks to deliver a high level of current income consistent with low volatility of principal.
Not exact matches
Under its current asset - buying and lending tool, the BOJ
limits the
duration of government
bonds it buys to three years because it wants to push down the cost of borrowing for companies, many of whom work in three - year investment cycles.
By providing liquidity to the broader eurozone (in the form of its monthly
bond - buying program), the European Central Bank (ECB) is helping to
limit the scale and
duration of any contagion related to events in Greece.
Franklin
Limited Duration Income (FTF) is a closed end fund that seeks high current income and capital appreciation through investment in high yield corporate
bonds, floating rate bank loans and mortgage and other asset backed securities.
For now, the Strategic Total Return Fund continues to carry a
limited duration of about 2 years (meaning that a 100 basis point move in interest rates would be expected to impact the Fund by about 2 % on the basis of
bond price fluctuations), mostly in Treasury Inflation Protected Securities.
In
bonds, the Market Climate was characterized by relatively neutral valuations and unfavorable market action, holding the Strategic Total Return Fund to a relatively
limited duration of about 2.5 years.
Find your flavor of short
duration Shorter
duration bonds may provide
limited price volatility and varying levels of income.
Duration under 2 years; Canadian
bonds may be better if you wish to
limit your US currency exposure.
By providing liquidity to the broader eurozone (in the form of its monthly
bond - buying program), the European Central Bank (ECB) is helping to
limit the scale and
duration of any contagion related to events in Greece.
The strategy of Strategic Total Return has never relied much on the existence of a bull market in
bonds (indeed, our average
bond duration has rarely exceeded 4 years since the inception of the Fund, and has often been
limited to just 1 - 2 years).
These included: Victory INCORE Fund for Income (VFFIX), Nuveen
Limited term Municipal
Bond (FLTRX), First Trust Short
Duration High Income Fund (FDHIX), Guggenheim Floating Rate Strategies (GIFIX), and Eaton Vance High Income Opportunities Fund (EIHIX).
So by
limiting yourself to
bond funds with short
durations or by splitting your
bond stake between funds with short
durations (say, two to three years) and ones with intermediate
durations (say, five to seven years), you can mitigate the damage somewhat should rates rise.
The fund, with a
duration of 6.6,
limits currency risk by investing mainly in foreign
bonds issued in dollars.
The iShares $ Corporate
Bond Interest Rate Hedged UCITS ETF, iShares $ Corporate
Bond UCITS ETF, iShares $ High Yield Corporate
Bond UCITS ETF, iShares $ Short
Duration Corporate
Bond UCITS ETF, iShares $ Short
Duration High Yield Corporate
Bond UCITS ETF, iShares $ Ultrashort
Bond UCITS ETF, iShares # Corporate
Bond 1 - 5 yr UCITS ETF, iShares # Corporate
Bond ex-Financials UCITS ETF, iShares # Corporate
Bond UCITS ETF, iShares # Ultrashort
Bond UCITS ETF, iShares Euro Corporate
Bond Large Cap UCITS ETF, iShares Euro Covered
Bond UCITS ETF, iShares Euro Government
Bond 1 - 3 UCITS ETF (Acc), iShares Euro Government
Bond 3 - 7 UCITS ETF (Acc), iShares Euro Government
Bond 7 - 10 UCITS ETF (Acc), iShares Euro High Yield Corporate
Bond UCITS ETF, iShares Euro Inflation Link
Bond UCITS ETF, iShares Euro Ultrashort
Bond UCITS ETF, iShares Global High Yield Corp
Bond CHF Hedged UCITS ETF, iShares Global High Yield Corp
Bond GBP Hedged UCITS ETF, iShares Global High Yield Corp
Bond UCITS ETF, iShares USD Government
Bond 1 - 3 UCITS ETF (Acc), iShares USD Government
Bond 3 - 7 UCITS ETF (Acc), iShares USD Government
Bond 7 - 10 UCITS ETF (Acc) and iShares USD Inflation Linked
Bond UCITS ETF are not sponsored, endorsed, or promoted by Markit Indices
Limited.
A balance must be struck between
limiting risk using shorter
duration or higher credit quality
bonds versus maximizing investment yield with longer
duration or lower credit quality
bonds.
This involves both
limiting duration exposure in most economies — we own no U.S. Treasuries or Japanese government
bonds — and using currency and other exposures to potentially benefit from rising rates.
The
Bond Fund Interest Rate Sensitivity Illustrator also allows you to hypothetically add or remove funds from your portfolio to see the estimated impact on the portfolio's Weighted Average
Duration and value within the 1 % rate change
limit.
A 28 - year Fidelity veteran, Galusza manages short
duration portfolios, including Fidelity Short - Term
Bond Fund, Fidelity Advisor Short Fixed - Income Fund, Fidelity Intermediate
Bond Fund, Fidelity
Limited Term
Bond Fund, and Fidelity Advisor
Limited Term
Bond Fund.