Sentences with phrase «average bond duration»

Note also that the average bond duration for these bond funds will influence their rates of portfolio turnover.

Note also that the average bond duration for these fixed income funds will influence their rates of portfolio turnover.

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).

Not exact matches

But that total is dwarfed by the more than $ 1.5 trillion invested in intermediate - term portfolios (3.5 - to six - year average duration), which include core bond funds hewing to the Bloomberg Barclays U.S. Aggregate index.

According to Morningstar Direct, $ 59 billion is invested in long - term bond funds and exchange - traded funds (defined as portfolios with average durations above six years).

Yes the Index - linked fund is more susceptible to interest rate risk than the regular bond fund, but not by the nature of it being a linker, it's because the average duration is longer.

I got in touch with L&G in 2014 to ask them about the average duration of holdings in the Global Inflation Linked Bond Index Fund, they responded that it was 8.20.

Currently, 1 ETF track the Bloomberg Barclays Rate Hedged U.S. Aggregate Bond Index, Negative Five Duration with more than $ 30.73 M in ETP assets with an average expense ratio of 0.28 %.

Even without any selling, the value of the fund's share price would fall (roughly as a function of the fund's average «duration», a measure of interest rate sensitivity that is a related to a bond's maturity).

Specifically, the effective duration of the S&P 500 is presently about 50 years, with average bond market duration closer to 6 years, and of course zero duration for cash holdings.

Unique to bond funds, you may also want to consider the fund's average duration, credit quality and yield.

Two of the largest risks are that the average credit quality of bonds in this sector is well below investment grade and the heavy issuance of zero coupon bonds creates a sector that has one of the longest durations in the municipal bond market.

The average duration of a bond fund should, in general, match the period of time in which you expect to keep your investment dollars in the fund.

Many investment managers have lowered the average duration of their fixed - income investments well below that of the overall bond market.

Some might say this is a good time to have an average duration or maturity of the bonds in bond funds to be under ten years — perhaps even well under ten years.

One thing you can do is find out the average duration and maturity of the bonds in your fund (s).

High yield bonds have more interest rate sensitivity with duration of just less than 5 years and an average maturity of 6.8 years.

Therefore, you'd want the average duration or maturities in your bond fund (s) to be shorter, not longer.

Noload bond funds will have turnover that also varies, because of the average duration of the bonds in the fund.

This means that it may actually be prudent for an average investor to shorten the duration by moving a part of investment in bonds to money market funds.

On that basis, I'd bought XSB (a short - term bond index, average duration of about 2.9 years).

Of course, bond mutual fund turnover can vary significantly due to the average duration of the bonds within the fund.

So in an intermediate - term bond fund, with an average duration of four to five years, the loss would be about 4 % to 5 %.

These funds have no choice but to use sampling: they buy a smaller number of bonds that approximate the overall characteristics of the index (average term, coupon, duration, etc.).

The average duration of the S&P Municipal Bond Tobacco Index is over 11.5 years.

Effective Duration - This statistic provides a measure of the sensitivity of the Fund's price to changes in interest rate changes and is calculated as the weighted average of the individual bond durations.

On their websites, many mutual fund companies report the average duration of the bonds in their funds.

The interest rate sensitivity (duration) of a bond is related to the average date at which an investor receives payment of principal and interest.

The modified duration of a bond is a measure of its price sensitivity to interest rates movements, based on the average time to maturity of its interest and principal cash flows.

With a current duration of 4.85 (Morningstar category average: Investment Grade Bonds, 6/18/2015), the typical bond fund is very susceptible to capital losses should interest rates rise from their current low of 2.35 % to the historical average over the last 30 years of 5.44 %.

The benchmark is similar to the widely followed DEX Universe Bond Index in average term (about 10 years), yield to maturity (about 2.5 %) and duration (about 7 years).

Read the prospectus for your fund and it will have the average duration as well as information about the issuers of the bonds it does invest in (govt, agency, mortgage backed, foreign, high quality corporate, etc) and whether there are constraints on the target average maturity.

If you want technical details, look at the «average duration» or «average maturity» of the bond fund; as a rough guide, if the duration is 10, then a 1 % change in interest rates would be a 10 % gain or loss on the fund.

Aggregate bonds have an average duration of around 5 years.

Investor's first can look for bonds that have above - average yields and below - average durations.

In the construction of the S&P U.S. High Yield Low Volatility Corporate Bond Index, an individual bond's credit risk in a portfolio context is measured by its marginal contribution to risk (MCR), calculated as the product of its spread duration and the difference between the bond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see EquationBond Index, an individual bond's credit risk in a portfolio context is measured by its marginal contribution to risk (MCR), calculated as the product of its spread duration and the difference between the bond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see Equationbond's credit risk in a portfolio context is measured by its marginal contribution to risk (MCR), calculated as the product of its spread duration and the difference between the bond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see Equationbond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see Equation 1).

MCR borrows the concept of DTS by multiplying spread duration by the difference between bond OAS and portfolio average OAS, instead of OAS directly.

Income, Yield and Duration: Investment grade municipal bonds on average have a higher coupon cash flow to bondholders than corporate bonds and that cash flow is exempt from federal taxation.

Bond index average duration is an important characteristic that investors should monitor.

To make a fair comparison between the two asset classes indices were selected that have comparable weighted average modified durations: S&P National AMT - Free Municipal Bond Index and the S&P 500 5 - 7 Year Investment Grade Corporate Bond Index.

Among the top five, Pimco dominates with three of its funds: Extended Duration Institutional (PEDIX), Income Institutional (PIMIX) and Pimco Fixed Income Shares C (FXICX), having 10 - year average returns of 9.43 %, 9.15 % and 8.68 %, respectively, vs. the Bloomberg Barclays U.S. Aggregate bond index's 4.01 %.

A repeat from last year and in second place is the $ 691 million Delaware Extended Duration Bond Institutional (DEEIX) with a 10 - year average annual return of 9.41 %, and handsomely beating the benchmark's 3.54 % last year with a 12.38 % return.

Average Effective Duration measures the expected volatility of a bond fund in response to interest rate fluctuations.

What's not in equities, you could put in short term bonds, meaning an average duration of about 3 years.

As these are revenue bonds with slightly longer durations the average yield is naturally higher than the overall market, Year - to - date this group of bonds have outperformed the investment grade muni market.

In order to address interest rate sensitivity in a low rate environment, many investors will reduce the average duration of their bond portfolios by moving to shorter maturities.

The duration of the S&P U.S. Issued High Yield Corporate Bond Index is 5 years, while the average life of senior loan is 4.48 years as measured by the S&P / LSTA U.S. Leveraged Loan 100 Index.

Prior to 8/19/13, Fund employed a strategy of investing in fixed - rate bonds with a dollar - weighted average portfolio duration of between three and nine years.

The investment manager for the stable value fund invests in a portfolio of intermediate term bonds with an average duration of approximately three to four years that will provide a significantly higher interest rate, or yield, than for example the short - term (average 60 days or less) securities typically held by a money market fund.

Duration is a term that defines the average term of a bond, taking into account the present value of all the parts of a bond, as well as all cash flows from interest and principal payments.