Investors are increasingly channeling their money into higher risk ETFs and away from more conservative fixed-income funds.
One thing about fixed-income funds in the closed-end world, Kate, is that every 12% approximately, of a discount, equals 1% of real cash flow.
Such a small move would be justified by the need to be prudent in lowering Selic to minimize the chances of a destabilizing shift from fixed-income funds to savings.
This was the lowest allocation to fixed-income securities and funds since February 2011.
Conversely, if you are underweighted in bonds, you put the new contribution to work by purchasing fixed-income securities or funds.
These are just some of reasons are why I invest my fixed-income portfolios in funds and ETFs, rather than individual issues.
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It certainly makes one question the folks who are advising her, even considering the fact that these days many Generation-Y members have their retirement money parked in super-safe money-market funds and supposedly safe fixed-income instruments, despite a 30-year or greater investment time horizon.
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Still, floating-rate bond funds may be the best fixed-income deal available in an environment of rising short-term interest rates.
There could be a provision that the mix of equities and fixed-income securities in each account would change over time: As one got older, the portion of funds invested in fixed-income instruments, such as bonds, would increase, thereby reducing stock market exposure.
The promotion of a well-regarded dealmaker like Schwartz to chief executive at a firm more known for servicing hedge funds and for fixed-income activities raises the possibility that Bear Stearns will sell additional stakes of itself or find a merger partner.
The results of this 2004 action were immediate and massive. 401k plans that had been receiving 50 to 100 basis points in revenue sharing from non-proprietary funds were cut to a maximum of 25 basis points for fixed income funds and a 35 basis point maximum for equity funds.
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Also, consider using funds to get overseas fixed-income exposure.
But in most cases, I think I have a better chance at limiting risk (and ideally boosting returns) by sticking with open-end bond funds like DoubleLine Core Fixed Income (DLFNX), DoubleLine Total Return (DLTNX), Thompson Bond (THOPX), PIMCO Income (PONDX), and PIMCO Foreign Bond US Hedged (PFODX).
Money market funds invest in short-term fixed-income securities or commercial paper from governments, financial institutions and corporations.
" Offit, with decades of experience in fixed-income markets, believes "the Fed cutting the Fed funds rate may have inconsequential value other than signaling investors that it is concerned about maintaining economic stability in the face of an eroding housing market.
Government plus and option income funds were sold to individuals living on fixed-incomes to compete with CDs.
That said, I also feel pretty confident suggesting that if you are looking at fixed-income, it would be prudent to consider individual bonds over bond funds and bond ETFs.
Harvard and Yale in particular expanded their endowments' investments beyond the traditional bounds of fixed-income and equities and into exotic financial instruments like derivatives, hedge funds and leveraged investment products.
Hedge funds tend to be more aggressive than more traditional fixed-income investors--more vocal and more creative in coming up with ways to restructure a company that will still make them money, Hong says.
The BlackRock segment manages assets on behalf of institutional and individual investors worldwide through a variety of equity, fixed income, multi-asset class, alternative and cash management separate accounts and funds, including iShares.
But Matthew Tucker, head of fixed-income investment strategy at iShares, says the iShares yields are also lower because the funds mature in March versus December for the Guggenheim offerings.
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But Paulson and other banking regulators sat tight until the subprime mortgage market imploded in the summer, bringing down with it a few hedge funds and, more significant, putting a virtual freeze on the fixed-income markets.
The money could go entirely into riskless fixed-income instruments, such as U.S. Treasurys or well-diversified, balanced mutual funds.
British-based funds, meanwhile, were more likely to trade in emerging markets and fixed-income.
In many cases, pension funds are buying government bonds because they need fixed income instruments and the near-collapse of the mortgage-backed securities market has eliminated that supply.
For years, hedge funds borrowed money in Japan at next to nothing and employed the capital in the fixed-income sector here.
That simple Follow-The-Fed investment lesson paid off with extraordinary gains last year for the hedge funds specializing in fixed income securities.
Investors of any age who are concerned about diversification but who lack the means to invest in multiple funds simultaneously can always turn to target-date funds, most of which are "funds of funds" that include a blend of domestic and foreign equities, as well as fixed-income holdings.
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