Sentences with phrase «bonds in his fund -lsb-»

As the price of bonds in a fund adjusts to a rise in interest rates, the fund's share price may decline.

Whether the profit from the sale of a bond in the fund is taxed at ordinary income tax rates or is eligible for a reduced capital gains rate is dependent on the same factors as explained above.

Bond Statistic Average Coupon: The average coupon is the weighted average coupon rate of all the bonds in the fund.

This means the bonds in the fund should not decrease in value quite as quickly as the prices in the longer - dated Aggregate Bond fund.

Matt's take: YTM is a good indicator of what the bonds in the fund are yielding at a current point in time.

As the prices of bonds in a fund adjust to a rise in interest rates, the fund's share price may decline.

What it means: This yield measure represents the weighted average YTM of the bonds in the fund as of a date, assuming that the bonds will be held to maturity and that all coupon payments and the final principal payment will be made on schedule.

The dividend payments float as the bonds in the fund change, and the value of the share price changes daily.

The bad news: Bond funds come with management fees, and the value of your investment will change as the market rerates the prices of the bonds in the fund's portfolio.

This can occur on a broad scale where a fund manager might alter the ratio of stocks to bonds in his fund -LSB-...]

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

Thus, as prices of bonds in the fund adjust to a rise in interest rates, the fund's share price may decline.

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

That means all the bonds in the fund will come due in the same year, and once they're redeemed, the fund will be liquidated and all the money returned to investors.

The reason it pays that hefty 4.5 % distribution is that all the bonds in the fund were issued several years ago, when interest rates were higher.

You could lose money on your investment in the Fund or the Fund could underperform because of the following risks: the market prices of stocks or bonds may decline; the individual stocks or bonds in the Fund may not perform as well as expected; and / or the Fund's portfolio management practices may not work to achieve their desired result.

The bonds in this fund are extremely safe with 90 % of their portfolio rated as A and above!

This duration figure means that if interest rates were to rise one percent this year, the value of the bonds in this fund would fall approximately 2.7 %.

If you buy bond fund shares and hold them longer than the duration of the bonds in the fund (i.e. hold a 10 year fund longer than 10 years), then you get the full coupon and maturity payments for all the bonds in the fund at that moment, exactly the same as if you bought them individually.

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

The average maturity is derived by adding up the maturities of each bond in the fund and dividing it by the number of bonds the fund holds.

After all the bonds in the fund's portfolio mature, you get cash deposited back into your account.

After all the bonds in the fund's portfolio mature, the funds are liquidated and all cash is distributed back to shareholders.

All the bonds in each fund either mature or are callable in the same calendar year.

This is much different than the ETF LQD discussed above, where as bonds in the fund's portfolio mature, the fund immediately invests into new bonds.

On the other hand, just as I reccomended throughout 2014, I believe it makes sense to remain committed to longer - term bonds in funds like iShares 10 - 20 Year Treasury (TLH) as well as lower volatility stocks across the sector spectrum.

As prices of bonds in a fund adjust to a rise in interest rates, the fund's share price may decline.

yields of all bonds in the fund.

In addition, although some municipal bonds in the fund may not be subject to ordinary income tax, they may be subject to federal, state, and local alternative minimum tax, if an investor sells a tax - exempt bond fund at a profit, there are capital gains taxes to consider.

Key credit spreads were widening, such as those between intermediate - term treasury bonds and riskier corporate bonds in funds like iShares Baa - Ba Rated Corporate Bond ETF (BATS: QLTB) or SPDR High Yield Bond (JNK).

Thus, as the prices of bonds in each fund adjust to a rise in interest rates, each fund's share price may decline.

Michael Burry is a value investor notable for being one of the first, if not the first, to short sub-prime mortgage bonds in his fund, Scion Capital.

The value of bonds in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons including general financial market conditions, changing market perceptions of the risk of default, changes in government intervention, and factors related to a specific issuer or industry.

The average maturity of the bonds in the fund and index is between five and 10 years.

Yesterday I ran a post on Dr. Michael Burry, the value investor who was one of the first, if not the first, to figure out how to short sub-prime mortgage bonds in his fund, Scion Capital.

What's missing in the new reports are the fees paid to investment managers for selecting and managing the stocks and bonds in the funds, and the management fees associated with owning ETFs.

Although bonds in the fund mature eventually, the proceeds are reinvested in new bonds rather than returned to investors.

These Balanced Funds have both stocks and bonds in the fund.

As the price of bonds in a fund adjusts to a rise in interest rates, the fund's share price may decline.

Not exact matches

«Finally, the increased role of bond and loan mutual funds, in conjunction with other factors, may have increased the risk that liquidity pressures could emerge in related markets if investor appetite for such assets wanes.»

And so what the Fed is basically saying here is that because investors are using mutual funds to invest in bonds, instead of owning the bonds, there could be a problem if investors all want to leave at the same time.

A better option, in Hallett's opinion, is an actively managed global bond fund, in which the manager can move in and out of countries as he or she sees fit.

That climb got its start with financing through the offering from individual and institutional investors and bond investors, which in large deals like Trump's were typically pension funds and insurance companies.

In the Minutes from the January FOMC meeting, the Federal Reserve addressed the financial situation, and noted that the increasing role of bond and loan mutual funds could pose a liquidity risk if everyone tries to get out of the market at the same time.

Also, a bond fund is only going to have so much cash on hand, so if the investors in a certain fund all want to redeem their shares of the fund at the same time, it will pose problems for the fund manager trying to meet redemption requests.

Some in the market have attributed the sharp market swings seen during the downturns in October and December as indicating structural problems with liquidity in the market — and some fingers have been pointed at the proliferation of bond funds.

By comparison, popular intermediate - term U.S. bond funds managed by PIMCO and others run $ 1.02 trillion, up 2.6 percent in net assets this year.

Emerging markets - focused bond mutual and ETF funds have only increased their assets by 1.72 percent in 2014, according to data from Morningstar, and manage just $ 86 billion.

When you own a bond mutual fund, you don't actually own a bond — which will continue to pay a coupon so long as the issuer isn't in default — you just own a share of the fund, which is comprised of lots of bonds and sometimes other things.

Exchange - traded funds that track high - yield bond indexes have been the beneficiaries of a cash surge in recent weeks.