Sentences with phrase «portfolio duration»
"Portfolio duration" refers to the measurement of the sensitivity of a collection of investments to changes in interest rates. It helps investors understand how the value of their overall investment portfolio may change as interest rates fluctuate. Full definition
The fund seeks to maintain an average portfolio duration of zero to ten years.
mutualfunds.com
The fund might appeal to investors who strongly believe in an upward interest - rate path or as a tool to shorten their fixed - income portfolio duration.
In bonds, the recent rally in straight bonds provides a reasonable opportunity to reduce portfolio duration.
In fact, the TIAA Life Funding Agreement portfolio allocation stabilizes the portfolio in later years, and helps align portfolio duration with the anticipated college funding liability.
What this means is that bond sector allocations and portfolio duration for mutual funds will not deviate too far (10 - 20 % at most) from the sector allocations and duration of the benchmark index.
Prior to 8/19/13, Fund employed a strategy of investing in fixed - rate bonds with a dollar - weighted average portfolio duration of between three and nine years.
One way to shorten portfolio duration is by replacing the longer - dated cash securities with shorter - dated securities...
100 - bond Portfolio Duration and Convexity Calculator: Calculate all of the usual Macaulay / modified duration and convexity numbers, and see how assumed changes in interest rates change the price of each bond, and the combined portfolio of up to 100 bonds.
It aims for net -7 years portfolio duration by holding a short - term high - yield portfolio and aggressively shorting Treasury futures.
Our current portfolio duration is driven by the prevailing Market Climate we observe (not by those views about the Fed), but we're comfortable with a fairly typical duration here in bonds.
So we would estimate a 40-30-30 % mix of stocks, bonds, and cash to have an overall portfolio duration of about 22 years here.
By heavily shorting a variety of Treasury futures, the fund aims to achieve net -5 portfolio duration.
Schroders» Core Fixed Income strategy typically maintains portfolio duration at + / - 10 % of the duration of the benchmark.
An investment policy will specify what percentage of an investment portfolio must be in cash, list the investment goals, and identify acceptable levels of risk (defining, for example, maximum portfolio duration and the minimum credit rating for a security in the portfolio).
Is unconstrained by the maturity or duration of MBS securities due to a hedging process that adjusts portfolio duration to closely match the Fund's benchmark
We propose a two - factor model to seek to collect an active return from security selection, identifying relative value opportunity in credit returns while keeping portfolio duration and credit duration natural to the underlying universe.
Manages risk by monitoring portfolio duration, credit quality, sector over / under weightings relative to the benchmark and changes in fundamentals driving credit quality
The Fund seeks to maintain an average portfolio duration of less than four and a half years while maintaining a flexible approach.
Unlike its duration - neutral sister fund HYZD, HYND is suitable for investors who seek to profit from an upward - interest - rate path or to use the fund as a tool to shorten their fixed - income portfolio duration, all the while maintaining credit risk exposure.
100 - bond Portfolio Duration and Convexity to Call Calculator: This is the same as the 100 - bond calculators sheet described above, but it calculates duration to call, and convexity to call, numbers based on data input into the regular 100 - bond calculator sheet.
The fund shorts Treasury futures to achieve a net - zero portfolio duration.
While I would expect downward pressure on Treasury yields in the event of fresh credit strains, we are not inclined to increase our portfolio duration until (unless) we observe a spike in the 10 - year yield toward 4 % or higher.
A 40 % allocation to equities contributes 20 years to portfolio duration.
The Strategic Total Return Fund continues to hold a portfolio duration of about 6 years, meaning that a 1 % (100 basis point) change in interest rates would induce a roughly 6 % change in the value of the Fund.
Accordingly, just as we increased our portfolio duration when interest rates spiked a few weeks ago, I reduced the duration of the Strategic Total Return Fund late Friday, to about 2.5 years.
In addition to being a tool to capture the credit spread, HYGH may also appeal to existing HYG investors who want to shorten their portfolio duration without significantly altering their underlying credit and liquidity profile.
HYGH — an actively managed fund - of - funds — primarily takes a long position in HYG (an iShares corporate high - yield ETF) and shorts Treasury futures to achieve a net - zero portfolio duration.
By shorting a variety of Treasury futures, the fund aims to achieve a net - zero portfolio duration, hence «eliminating» — or at least greatly minimizing — interest - rate risk.
The strategy is duration neutral, meaning that portfolio duration is set in an attempt to meet client objectives and does not incorporate interest rate forecasts or speculation.
There are a number of ways to re-target your portfolio duration.
This makes the portfolios duration somewhere in the middle.
As a result, fixed income investors should consider lengthening their portfolio duration.
Invests in a diverse portfolio of primarily private fixed income assets with a portfolio duration of medium term
The portfolio duration for short duration bond funds is 1.5 to 2.5 years; these funds can thus offer still - higher yields and returns than reserve funds, while controlling for risk and maintaining a focus on preservation of principal.
A strategy for reserve cash could have a portfolio duration of up to one year, investing in commercial paper, assetbacked securities and corporate bonds, among other securities.
A good bond manager has already decreased the portfolio duration (selling long term bonds to buy more short term bonds) to make sure that the bond fund doesn't drop drastically.
The management cost is 0.4 %, compared with an average of 0.8 % for similar funds, and the portfolio duration is 4.2.
The average portfolio duration will vary based on PIMCO's economic forecast and active investment process, and will not normally exceed one year.»
Portfolio duration increased to 3.72 years at month end.
Portfolio duration increased to 2.32 years at month end due to a decrease in active short positions.
Portfolio duration decreased to 0.86 years at month end due to an increase in active short positions.