The fund typically favors longer
maturities than our benchmark and tends to lean toward riskier paper, both of which increase yield.
Active bond managers try to hold shorter
maturities than their benchmark when rates are rising, and longer maturities when rates are falling.
As a result, it has a longer weighted - average
maturity than our benchmark, as well as most other intermediate - term credit funds.
Not exact matches
The first is by adjusting
maturities — that is, by selecting a portfolio of bonds with shorter or longer terms
than the
benchmark.
Apparently their newest opportunities lie in being just a bit more aggressive
than a money market fund, since they've adopted the Bank of America Merrill Lynch U.S. Dollar Three - Month LIBOR Constant
Maturity Index as their new
benchmark.