Sentences with phrase «bonds in the fund mature»

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

Not exact matches

As older bonds mature, newer bonds are purchased and the portfolio manager of the fund generally tries to keep the average maturity in the range that is stated in the fund's objective.

The fund holds 802 bonds that mature in an average of 6.4 years.

If you buy the 2017 fund, for example, then you will be investing in a portfolio of bonds which all mature within months of July 1st, 2017.

For example, shares in a mutual fund, which can be sold at will, are more liquid than a Treasury bond, which pays interest once a year and can take a decade to mature.

Sustainability is in Klabin's DNA, and to sustain its investments in these practices, the company recently (September 2017) raised funds in the international market through its first issue of green bonds amounting to around R$ 1.6 billion, maturing in 10...

So, for example, when the CD matures in in six years (or sooner if I do an early withdrawal), I could reverse what I just did, and transfer the money back to Vanguard to invest in a bond fund — with no fees.

In any bond fund, the manager is constantly collecting interest payments and cashing in bonds as they maturIn any bond fund, the manager is constantly collecting interest payments and cashing in bonds as they maturin bonds as they mature.

Each of the eight funds holds a portfolio of bonds that mature in a specific year, from 2013 to 2020 (the ticker symbols are RQA to RQH).

And while rising rates are bad for bonds and bond funds in the short - term, climbing yields can actually boost returns on a diversified portfolio of bonds over the long haul, as interest income and proceeds from maturing bonds are re-invested at higher rates.

As central banks move away from ultra-loose monetary policy, and the global economic expansion matures, bond fund managers will need to ensure their portfolios draw on a truly diverse range of sources of return and carefully consider portfolio risk if they are to generate yield in the current market environment.

For instance, a fund might hold only bonds that mature in 2015.

Leading up to the final distribution date, the individual bonds in the ETFs mature and the funds transition into short - term taxable instruments and cash.

It is true that bond funds fluctuate in value but unless you need money maturing at a certain point in the future, bond funds are an acceptable alternative to owning bonds directly in long - term portfolios.

A bond ladder is set up so there are sufficient bonds maturing in each year to fund a retiree's draws.

For a fund, the instant change in value, i.e. change in value for a given change in rate, will be close, but my remarks about maturing to full value only applies to individual bonds, not funds.

But, unlike a single bond where the buyer can hold to maturity, i.e. the duration drops about one tear for each year of real time passing, a fund of treasuries will never mature, the duration will remain somewhat constant as new treasuries are purchased when others mature or new money comes in.

During the final year of the Fund's operations, as the bonds held by the Fund mature and the Fund's portfolio transitions to cash and cash equivalents, the Fund's yield will generally tend to move toward the yield of cash and cash equivalents and thus may be lower than the yields of the bonds previously held by the Fund and / or prevailing yields for bonds in the market.»

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

However when you decide to sell LQD, the share price may not be where it was when you bought it, even though many of the bonds held in the fund's portfolio may have matured.

As the name implies, this fund only invests in corporate bonds which mature between April 2015 and March 2016.

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.

The reason is that a bond fund is always investing the interest payments from the bonds it holds as well as reinvesting the proceeds of maturing bonds in new bonds.

The portfolio managers of these funds are constantly reinvesting in new bonds when the old ones mature.

While long - term gilt funds can have securities maturing in as long as 30 years, the short term funds typically invest in securities in short maturity period as well as long - term bonds with short term residual maturities.

If interest rates rise, these bonds will mature in short order and the investment team will seek to reinvest the Fund's portfolio into higher yielding bonds.

While the current round of quantitative easing and bond buying will end in October, the Fed will continue to reinvest funds from coupon interest and maturing bonds until sometime after they begin raising interest rates.

For example, shares in a mutual fund, which can be sold at will, are more liquid than a Treasury bond, which pays interest once a year and can take a decade to mature.

In return for the loan of your funds, the issuer agrees to pay you interest and ultimately to return the face value (principal) when the bond matures or is called, at a specified date in the future known as the «maturity date» or «call date.&raquIn return for the loan of your funds, the issuer agrees to pay you interest and ultimately to return the face value (principal) when the bond matures or is called, at a specified date in the future known as the «maturity date» or «call date.&raquin the future known as the «maturity date» or «call date.»

Many of the funds he invests in also own short - duration bonds — fixed - income that matures in one to five years.

In the final months of each Fund's operation, as the bonds it holds mature, its portfolio will transition to cash and cash - like instruments.