These risks may increase
the funds share price volatility.
Not exact matches
The Oakmark Equity and Income
Fund invests in medium - and lower - quality debt securities that have higher yield potential but present greater investment and credit risk than higher - quality securities, which may result in greater
share price volatility.
This means that investors in high yield municipal bond
funds should be willing to accept much higher
volatility in both the
share price of the
fund and the income stream that it provides.
Funds that concentrate on a relatively narrow market sector face the risk of higher
share -
price volatility.
Closed - end
funds tend to trade with higher
volatility from their NAV than ETFs because ETFs have authorized participants that actively follow the
shares and take action to reconcile the
price in the open market when it deviates from the NAV.
The
fund employs leverage through the issuance of senior fixed rate notes which creates an opportunity for increased income, but, at the same time, creates special risks (including the likelihood of greater
volatility of net asset value and market
price of common
shares).
They recognize the geological uncertainty attached to all resource bodies, the possible political risks, the business risks, the multi - year / decade timescale, the significant capital / operating costs, the cash / debt /
share dilution required to
fund them, the
volatility of commodity
prices, etc..
Furthermore, the use of leveraging can magnify the potential for gain or loss and amplify the effects of market
volatility on the
Fund's
share price.
A
Fund's investment in the common
shares of closed - end
funds that are financially leveraged may create an opportunity for greater total return on its investment, but at the same time may be expected to exhibit more
volatility in market
price and net asset value than an investment in
shares of investment companies without a leveraged capital structure.