Liquidity Fund - Revision history

imported>Doug Williamson: Spelling 'minimise'.

2022-08-13T22:14:41Z

Spelling 'minimise'.

← Older revision		Revision as of 22:14, 13 August 2022
Line 1:		Line 1:
	''Investment - bond funds - risk management - interest rate risk - duration.''		''Investment - bond funds - risk management - interest rate risk - duration.''

	A liquidity fund means a fund that seeks to generate income by investing in a portfolio of short-term obligations in order to maintain a stable net asset value per unit or ~~minimize~~ principal volatility for investors.		A liquidity fund means a fund that seeks to generate income by investing in a portfolio of short-term obligations in order to maintain a stable net asset value per unit or minimise principal volatility for investors.

imported>Doug Williamson: Add links.

2022-07-09T14:07:43Z

Add links.

← Older revision		Revision as of 14:07, 9 July 2022
Line 20:		Line 20:
	* [[Cash and cash equivalents]]		* [[Cash and cash equivalents]]
	* [[Constant net asset value]] (CNAV)		* [[Constant net asset value]] (CNAV)
			* [[Credit risk]]
	* [[Duration]]		* [[Duration]]
	* [[Fixed income]]		* [[Fixed income]]
Line 25:		Line 26:
	* [[IAS 7]]		* [[IAS 7]]
	* [[Interest rate risk]]		* [[Interest rate risk]]
			* [[Investment grade]]
	* [[Investment horizon]]		* [[Investment horizon]]
	* [[Liquidity]]		* [[Liquidity]]
	* [[Macaulay duration]]		* [[Macaulay duration]]
	* [[Maturity]]		* [[Maturity]]
			* [[Money market fund]] (MMF)
	* [[Modified duration]]		* [[Modified duration]]
	* [[Net asset value]] (NAV)		* [[Net asset value]] (NAV)
Line 34:		Line 37:
	* [[Principal]]		* [[Principal]]
	* [[Risk management]]		* [[Risk management]]
			* [[Security]]
	* [[Short]]		* [[Short]]
	* [[Short term]]		* [[Short term]]
Line 39:		Line 43:
	* [[Short Duration Fixed Income Bond Fund]]		* [[Short Duration Fixed Income Bond Fund]]
	* [[Ultra short duration bond fund]] (USBF)		* [[Ultra short duration bond fund]] (USBF)
			* [[Variable net asset value]] (VNAV)
	* [[Volatility]]		* [[Volatility]]
	* [[Weighted Average Life]] (WAL)		* [[Weighted Average Life]] (WAL)

imported>Doug Williamson: Add quote - source - ACT knowledge hub - https://hub.treasurers.org/ultra-short-duration-funds-short-by-name-hybrid-by-nature/

2022-07-09T14:04:23Z

Add quote - source - ACT knowledge hub - https://hub.treasurers.org/ultra-short-duration-funds-short-by-name-hybrid-by-nature/

← Older revision		Revision as of 14:04, 9 July 2022
Line 2:		Line 2:

	A liquidity fund means a fund that seeks to generate income by investing in a portfolio of short-term obligations in order to maintain a stable net asset value per unit or minimize principal volatility for investors.		A liquidity fund means a fund that seeks to generate income by investing in a portfolio of short-term obligations in order to maintain a stable net asset value per unit or minimize principal volatility for investors.


			:<span style="color:#4B0082">'''''Liquidity Funds and Ultra short duration bond funds (USBFs) compared'''''</span>

			:# USBFs can invest in longer maturity securities, typically out to three years, and have longer average maturities.
			:# Exposure to low-quality investment-grade credit is probable, along with an overall greater exposure to credit reflected in a longer weighted average life.
			:# USBFs are bond funds that when seeking a fund rating will be assigned a bond fund rating. While the same designation (AAA, AA, A) is used for both bond funds and MMFs, it is important for an investor not to assume this means the same level of risk.
			:# USBFs are variable net asset value (VNAV), hence influenced by mark-to-market prices creating an element of price volatility.
			:# Same-day settlement is not a feature of an USBF, with typical settlement periods of two days or longer.
			:# The investment horizon is longer for USBFs and not intended for daily cash flows.
			:# USBFs do not typically meet the IAS7 accounting definitions for cash and cash equivalents.

			:''Ultra Short Duration Bond Funds: Seeking the right balance between risk and return - ACT Knowledge Hub.''


	== See also ==		== See also ==
			* [[Cash and cash equivalents]]
	* [[Constant net asset value]] (CNAV)		* [[Constant net asset value]] (CNAV)
	* [[Duration]]		* [[Duration]]
	* [[Fixed income]]		* [[Fixed income]]
	* [[Fund]]		* [[Fund]]
			* [[IAS 7]]
	* [[Interest rate risk]]		* [[Interest rate risk]]
			* [[Investment horizon]]
	* [[Liquidity]]		* [[Liquidity]]
	* [[Macaulay duration]]		* [[Macaulay duration]]
Line 22:		Line 38:
	* [[Short duration]]		* [[Short duration]]
	* [[Short Duration Fixed Income Bond Fund]]		* [[Short Duration Fixed Income Bond Fund]]
	* [[Ultra short duration bond fund]]		* [[Ultra short duration bond fund]] (USBF)
			* [[Volatility]]
	* [[Weighted Average Life]] (WAL)		* [[Weighted Average Life]] (WAL)
	* [[Weighted average maturity]] (WAM)		* [[Weighted average maturity]] (WAM)


			==Other resource==
			[https://hub.treasurers.org/ultra-short-duration-funds-short-by-name-hybrid-by-nature/ Ultra Short Duration Bond Funds: Seeking the right balance between risk and return - ACT Knowledge Hub]

	[[Category:The_business_context]]		[[Category:The_business_context]]

imported>Doug Williamson: Create page - source - Law Insider - https://www.lawinsider.com/dictionary/liquidity-fund

2022-07-09T07:01:15Z

Create page - source - Law Insider - https://www.lawinsider.com/dictionary/liquidity-fund

New page

''Investment - bond funds - risk management - interest rate risk - duration.''

A liquidity fund means a fund that seeks to generate income by investing in a portfolio of short-term obligations in order to maintain a stable net asset value per unit or minimize principal volatility for investors.

== See also ==
* [[Constant net asset value]] (CNAV)
* [[Duration]]
* [[Fixed income]]
* [[Fund]]
* [[Interest rate risk]]
* [[Liquidity]]
* [[Macaulay duration]]
* [[Maturity]]
* [[Modified duration]]
* [[Net asset value]] (NAV)
* [[Portfolio]]
* [[Principal]]
* [[Risk management]]
* [[Short]]
* [[Short term]]
* [[Short duration]]
* [[Short Duration Fixed Income Bond Fund]]
* [[Ultra short duration bond fund]]
* [[Weighted Average Life]] (WAL)
* [[Weighted average maturity]] (WAM)

[[Category:The_business_context]]
[[Category:Investment]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]