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A pay-for-performance fee structure, in relation to the investment industry, describes a management fee that is paid to a financial adviser or investment manager when their performance returns exceed those of their designated benchmark. The performance fee is generally calculated as a percentage of the investment outperformance gained. The ...
An important property of bond funds is the rating of the bonds they own. Funds may be rated from high to low credit quality. The quality of a fund is the average of the bonds owned by the fund. Funds that pay higher yields typically own lower quality bonds. Like stocks, the price of high-yield bonds is subject to fashion. [3] [4] For example ...
A performance bond, also known as a contract bond, is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. The term is also used to denote a collateral deposit of good faith money , intended to secure a futures contract , commonly known as margin .
Bond funds, specifically bond ETFs, benefit from economies of scale, allowing them to negotiate better prices on bond purchases. As a result, investors in bond funds often pay lower costs.
Rise in bond prices: When rates fall, the prices of bonds held by the bond fund go up. This is because the older bonds in the fund pay higher interest rates compared to newer bonds, so the value ...
The Fidelity Investment Grade Bond Fund is an actively managed fund that seeks to provide a high level of current income. The fund typically invests at least 80 percent of its assets in all types ...
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