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 average portfolio duration will vary based on PIMCO's economic forecast and active investment process, and will not normally exceed one year.»
The fund seeks to maintain
an average portfolio duration of zero to ten 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.
Another $ 431 billion is invested in short - term
portfolios (one - to 3.5 - year
average duration).
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).
To reduce your
portfolio's sensitivity to rising interest rates you want to lower the
average duration of your holdings.
AM: One can measure interest rate risk by looking at «
Average Maturity» or «Modified
Duration» of the
portfolio.
The fund currently has an
average maturity of 0.97 years and
duration of 0.83 years but at times of a favorable interest - rate scenario, it may increase the
portfolio maturity little above one year, keeping in mind the safety and liquidity.
The Fund's principal investment strategies emphasize strategic management of the
average interest rate sensitivity («
duration») of
portfolio holdings, the Fund's exposure to changes in the yield curve, and allocation among fixed income alternatives and inflation hedges.
The «Starting
Average Duration» (i.e. the starting average duration in the tool above) is the average duration of the por
Average Duration» (i.e. the starting average duration in the tool above) is the average duration of the po
Duration» (i.e. the starting
average duration in the tool above) is the average duration of the por
average duration in the tool above) is the average duration of the po
duration in the tool above) is the
average duration of the por
average duration of the po
duration of the
portfolio.
The fund holds debt with maturities ranging from one to five years, giving the
portfolio an
average weighted maturity of 2.9 years and a
duration of 2.7 years.
His suggestion is that the
average duration of the
portfolio, the
average term, should, «reflect — at least to some degree — the time at which you anticipate spending the money.»
The management cost is 0.4 %, compared with an
average of 0.8 % for similar funds, and the
portfolio duration is 4.2.
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 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.
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 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.
Note also that the
average bond
duration for these fixed income funds will influence their rates of
portfolio turnover.
Note also that the
average bond
duration for these bond funds will influence their rates of
portfolio turnover.
Bond
duration is the weighted
average of the expected cash flows for the bonds in the
portfolio.
Bond
portfolio managers increase
average duration when they expect rates to decline, to get the most benefit, and decrease
average duration when they expect rates to rise, to minimize the negative impact.
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.
Under normal conditions, the
portfolio duration is two to eight years and the dollar - weighted
average maturity ranges from two to fifteen years.
In addition, we continued enhancing our conservative balance sheet with the August $ 1.3 billion senior unsecured notes tender and $ 900 million notes issuance, extending the
duration of our senior notes
portfolio while decreasing the weighted
average interest.»