The Fund aims to achieve a return on your investment through a combination of capital growth and income on the Fund’s assets. The Fund invests primarily in fixed income securities (such as bonds) on a global basis and money-market instruments (i.e. debt
The Fund aims to achieve a return on your investment through a combination of capital growth and income on the Fund’s assets. The Fund invests primarily in fixed income securities (such as bonds) on a global basis and money-market instruments (i.e. debt
Interest Rate Risks: An increase in interest rates may adversely affect the value of the bonds held by the Fund. Non-Investment Grade / Unrated Bonds Risks: Investment in non-investment grade or unrated bonds, including sovereign debts, may subject the Fund to higher credit/default risks. If ...
Interest rate risk: bond prices have an inverse relationship with interest rates such that when interest rates rise, bonds may fall in value. Rising interest rates may cause the value of your investment to fall. Emerging market risk: Emerging markets tend to be more sensitive to economic and...
A variable annuity invests in stocks or bonds, has no predetermined rate of return, and offers a possibly higher rate of return when compared to a fixed annuity. The remainder of this article focuses on variable annuites. A variable annuity is an investment vehicle designed for retirement saving...
¹ The yield to maturity (YTM) is the rate of return anticipated on the portfolio if the current bonds in the portfolio were held until the end of their lifetime. YTM is an annualised rate and takes into account the current market price, par value, coupon interest rate and time to ...
The tables below summarize the Underlying Fund's exposure to interest rate risks from its investments in bonds and derivative instruments by term to maturity. September 30, 2024 Less than 1 year 1-5 years 5-10 years Greater than 10 years Total Total sensitivity to interest rate cha...
Bonds / 17 1.5.1 Estimating the Zero-Coupon Discount Function / 18 1.5.2 Data and Bond Illiquidity / 19 1.6 Inlation-Protected Securities / 19 1.7 Floating Rate Notes / 22 1.8 Conclusion / 24 References / 24 2 Money Market Instruments 25 2.1 Overview of the Money Market / 25 2.2 U.S...
We show that commercial banks have significant holdings of relatively illiquid long-term fixed-income securities, such as asset-backed securities, mortgage-backed securities, and corporate bonds. At the same time, banks generally avoid the most liquid debt securities, such as short-term money market...
rate, a periodic reset interest rate and an interest rate lock-in feature; a processor operably coupled to said storage device, configured to change an interest rate applied to the account value from said reset interest rate to said guaranteed interest rate, in accordance with said interest ...