Sentences with phrase «funds meet redemptions»

Not exact matches

Most likely, the manager will be forced to sell some bonds, potentially at a discount, as the fund needs to simply raise cash to meet redemptions.

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.

Facing redemptions of less than 2 percent of assets, it's possible that many bond funds could have met redemptions simply by drawing down cash or other liquid assets (after all, bond mutual funds held more than $ 200 billion in short - term liquid assets at the end of May).

(All that said, some active funds do better than index funds in bear markets — but this is typically because they hold a slug of cash to meet client redemptions, and this cash doesn't fall when the market does.

NextShares that transact with Authorized Participants primarily in kind may experience less cash drag than mutual funds, which often need to hold cash to meet shareholder redemptions.

It is also worth noting that during the final nine months of 2014, bank loan mutual funds were able to meet over USD 28 billion redemption requests in every single case.

The other issue of course is that the index funds will stay fully invested in the indices, rather than be caught out underinvested because they were trying to balance out exiting positions with adding positions with meeting redemptions.

Funds are in a constant state of redemption, even if it's not net Investors regularly want some of their money back to meet life's other needs or to pursue other opportunities.

When a fund is closed, redemptions are met either from a fund's cash reserves (or, more rarely, a secured line of credit) or from selective liquidation of securities in the portfolio.

Holding a wad of cash means a fund manager won't be coerced into selling holdings to meet redemptions from panicky investors.

Liquidity can be a concern when there is an asset / liability mismatch in commingled vehicles, and there is a risk that funds may sell illiquid assets to meet redemption requests.

Under the Internal Revenue Code, when a regulated investment company distributes appreciated assets to meet redemptions, no gain is recognized by the fund.

Mutual funds often have to sell holdings that have increased in value to raise cash to meet shareholder redemptions.

Because the fund managers are less concerned about having to meet investor redemptions on any given day, their strategies can be more aggressive.

Then something happens: the fund falls out of favor, all the hot money is flying out, the PM is now selling what he can to meet redemption requests with those costs again impacting the departing shareholders, but also being born by the long - term shareholders.

Purchases and sales of investments by an investment fund to put invested shareholder cash to work and to raise cash to meet shareholder redemptions.

By transacting in kind, a NextShares fund can lower its trading costs and enhance fund tax efficiency by avoiding forced sales of securities to meet redemptions.

By using in - kind distributions to meet redemptions, a NextShares fund can reduce required sales of portfolio securities to raise cash for redemptions.

Most NextShares funds are expected to meet redemptions primarily in kind by distributing portfolio securities.

This type of risk is more common in down or volatile markets where the fund can not meet the redemption needs of all the outgoing funds.

All it took was a downgrade, and when the money market funds exercised their puts, they couldn't meet the redemptions, and they were insolvent.

The Federal Reserve established two loan facilities to help money market mutual funds meet any demand for redemptions.

If a fund can't sell an investment quickly, it may lose money or make a lower profit, especially if it has to meet a large number of redemption requests.

Also, because redemptions can be met in - kind, the fund won't need to hold as much cash as a mutual fund, which can be a drag on performance when markets are up.

However, if the redemptions exceed this cash holding the mutual fund may need to sell shares to meet the requests.

To meet redemption requests, the Fund may be forced to sell securities at an unfavorable time and / or under unfavorable conditions.

In addition, the Fund could experience a loss when selling securities in order to meet unusually large or frequent redemption requests in times of overall market turmoil or declining prices for the securities sold

As a result, the commitment of a large portion of a Fund's assets to cover or segregated accounts could impede portfolio management or a Fund's ability to meet redemption requests or other current obligations.

«Fund managers are looking at last week's rally as a good opportunity to raise cash to meet future redemptions.»

The fund may use the lines to meet large or unexpected redemptions that would otherwise force the fund to liquidate securities under circumstances which are unfavorable to the fund's remaining shareholders.

As a result, such restrictions may limit a fund's ability to meet a large number of shareholder redemption requests.

As a result, such restrictions may limit the fund's ability to meet a large number of shareholder redemption requests.

Each fund may use the lines to meet large or unexpected redemptions that would otherwise force a fund to liquidate securities under circumstances which are unfavorable to a fund's remaining shareholders.

Many hedge funds are being forced to sell their best debt (the crappy stuff won't sell at all) at well - below value in order to meet redemptions.