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Definition of Match fund
A bank is said to match fund a loan or other asset when it does so by buying (taking) a deposit of
Mutual funds that do not charge an upfront or back-end commission, but instead take out up to
For investment companies, the management fee and "other expenses,"
An investment company that invests in stocks and bonds. The same as a balanced mutual fund.
This is a fund that buys common stock, preferred stock and bonds. The same as a
The beta of a fund is determined as follows:
The measure of a fund's or stocks risk in relation to the market. A beta of 0.7 means
Also called dedicating a portfolio, this is an alternative to multiperiod immunization in
An investment company that sells shares like any other corporation and usually does not
Also called horizon matching, a variation of multiperiod immunization and cash
Interest rate associated with borrowing money.
Indicated yield represents return on a share of a mutual fund held over the past 12
funds which are electronically credited to your account (e.g. direct deposit), or electronically debited from your account on an ongoing basis (e.g. a pre-authorized monthly bill payment, or a monthly loan or mortgage payment). A wire transfer is a form of EFT.
A firm-sponsored program that enables employees to purchase shares of the firm's
Investment funds established for the support of institutions such as colleges, private
A bond portfolio management strategy that involves finding the lowest cost portfolio
Non-interest bearing deposits held in reserve for depository institutions at their district Federal
Federal funds market
The market where banks can borrow or lend reserves, allowing banks temporarily
Federal funds rate
This is the interest rate that banks with excess reserves at a Federal Reserve district bank
Federal Funds Rate
The interest rate at which banks lend deposits at the Federal Reserve to one another overnight.
Forward Fed funds
Fed funds traded for future delivery.
Set of funds with different investment objectives offered by one management company. In many
Security analysis that seeks to detect misvalued securities by an analysis of the firm's
Analysts who attempt to find under- or overvalued securities by analyzing fundamental information, such as earnings, asset values, and business prospects.
The product of a statistical model to predict the fundamental risk of a security using not
In the model for calculating fundamental beta, ratios in risk indexes other than
Debt maturing after more than one year.
Debt with more than 1 year remaining to maturity.
The price of obtaining capital, either borrowed or equity, with intent to carry on business operations.
The ratio of a pension plan's assets to its liabilities.
Related: interest rate risk
Funds From Operations (FFO)
Used by real estate and other investment trusts to define the cash flow from
A mutual fund that can invest anywhere in the world, including the U.S.
Mutual funds that seek long-term capital growth. This type of fund invests primarily in equity securities.
A fund that may employ a variety of techniques to enhance returns, such as both buying and
High-coupon bond refunding
Refunding of a high-coupon bond with a new, lower coupon bond.
A mutual fund providing for liberal current income from investments.
Mutual funds that seek regular income. This type of fund invests primarily in government, corporate and other types of bonds, debt securities, and other income producing securities and in certain circumstances can also hold common and preferred shares.
Investment fund designed to match the returns on a stockmarket index.
Mutual funds that aim to track the performance of a specific stock or bond index. This process is also referred to as indexing and passive management.
internally generated funds
Cash reinvested in the firm; depreciation plus earnings not paid out as dividends.
A mutual fund that can invest only outside the United States.
A mutual fund that can invest in securities issued anywhere outside of Canada.
International Monetary Fund
An organization founded in 1944 to oversee exchange arrangements of
International Monetary Fund (IMF)
Organization originally established to manage the postwar fixed exchange rate system.
Labour-Sponsored Venture Funds
Venture capital corporations established by labour unions. They function as other venture capital corporations but are subject to government regulation.
Liability funding strategies
Investment strategies that select assets so that cash flows will equal or exceed
Life Income Fund
Commonly known as a LIF, this is one of the options available to locked in Registered Pension Plan (RPP) holders for income payout as opposed to Registered Retirement Savings Plan (RRSP) holders choice of payout through Registered Retirement Income funds (RRIF). A LIF must be converted to a unisex annuity by the time the holder reaches age 80.
A mutual fund with shares sold at a price including a large sales charge -- typically 4% to 8% of
Low-coupon bond refunding
Refunding of a low coupon bond with a new, higher coupon bond.
A bank runs a matched book when the distribution of maturities of its assets and liabilities are equal.
See accruals accounting.
The accounting principle that requires the recognition of all costs that are associated with
The process of linking recognized revenue to any associated
An accounting principle that ties expense recognition to revenue recognition,
Floating rate note whose interest rate is reset at more frequent intervals than the rollover
Money market fund
A mutual fund that invests only in short term securities, such as bankers' acceptances,
money market fund
A type of mutual fund that invests primarily in short-term debt securities maturing in one year or less. These include treasury bills, bankers’ acceptances, commercial paper, discount notes and guaranteed investment certficates.
Mutual funds are pools of money that are managed by an investment company. They offer
When you buy a mutual fund, you are pooling your money with that of other investors. An investment professional called a portfolio advisor takes that money and invests it for all the investors in a variety of different securities as determined by the investment objectives of the mutual fund. This gives you the benefit of diversification that is, being invested in many different investments at once.
Mutual fund theorem
A result associated with the CAPM, asserting that investors will choose to invest their
Net advantage of refunding
The net present value of the savings from a refunding.
A mutual fund that does not impose a sales commission. Related: load fund
No load mutual fund
An open-end investment company, shares of which are sold without a sales charge.
Not permitted, under the terms of indenture, to be refundable.
NSF (non-sufficient funds)
This appears on your statement if there are insufficient funds in your account to cover a cheque that you have written or a pre-authorized payment that you have already arranged. You will be charged a service fee for non-sufficient funds.
Objective (mutual fund)
The fund's investment strategy category as stated in the prospectus. There are
Also called a mutual fund, an investment company that stands ready to sell new shares to the
Overfunded pension plan
A pension plan that has a positive surplus (i.e., assets exceed liabilities).
Assets used to pay the pensions of retirees. An investment institution established to manage the assets used to pay the pensions of retirees.
Private Export Funding Corporation (PEFCO)
Company that mobilizes private capital for financing the
Resembles a sinking fund except that money is used only to purchase bonds if they are selling
Pure index fund
A portfolio that is managed so as to perfectly replicate the performance of the market portfolio.
Eligible for refunding under the terms of indenture.
Also called a prerefunded bond, one that originally may have been issued as a general
The redemption of a bond with proceeds received from issuing lower-cost debt obligations
A mutual fund that invests in a specific geographical area overseas, such as Asia or Europe.
Registered Retirement Income Fund (Canada)
Commonly referred to as a RRIF, this is one of the options available to RRSP holders to convert their tax sheltered savings into taxable income.
A fund accounting for all revenues from an enterprise financed by a municipal revenue bond.
Mutual funds that seek to preserve capital. This type of fund invests primarily in short-term securities with an average term to maturity of one year or less, or in the case of money market funds, 90 days or less.
Savings Incentive Match Plan for Employees (SIMPLE)
An IRA set up by an employer with no other retirement plan and employing fewer than 100 employees,
Sometimes called seg funds, segregated funds are the life insurance industry equivalent to a mutual fund with some differences.The term "Mutual fund" is often used generically, to cover a wide variety of funds where the investment capital from a large number of investors is "pooled" together and invested into specific stocks, bonds, mortgages, etc.
A pool of assets held by the insurer, to back a specific liability to a policyholder. Segregated funds flucuate in value depending on the market value of a specific group of assets the company must maintain separately.
The capital invested in a business by the shareholders, including retained profits.
Single country fund
A mutual fund that invests in individual countries outside the United States.
fund established to retire debt before maturity.
Sinking fund requirement
A condition included in some corporate bond indentures that requires the issuer to
Stopping curve refunding rate
A refunding rate that falls on the stopping curve.
Cash flow available after payment of taxes in the project.
Symmetric cash matching
An extension of cash flow matching that allows for the short-term borrowing of
Term Fed Funds
Fed funds sold for a period of time longer than overnight.
Two-fund separation theorem
The theoretical result that all investors will hold a combination of the riskfree
Underfunded pension plan
A pension plan that has a negative surplus (i.e., liabilities exceed assets).
Debt maturing within one year (short-term debt). See: funded debt.
If the average maturity of a bank's liabilities is less than that of its assets, it is said to be
Graham-Harvey Measure 1
Performance measure invented by John Graham and Campbell Harvey. The
Graham-Harvey Measure 2
Performance measure invented by John Graham and Campbell Harvey. The
Preferred habitat theory
A biased expectations theory that believes the term structure reflects the
Liquidating an existing position and simultaneously reinstating a position in another futures
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