Liquidity Fund and MCT: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add quote - source - ACT knowledge hub - https://hub.treasurers.org/ultra-short-duration-funds-short-by-name-hybrid-by-nature/)
 
imported>Doug Williamson
(Added link to the MCT qualification.)
 
Line 1: Line 1:
''Investment - bond funds - risk management - interest rate risk - duration.''
Member of the Association of Corporate Treasurers.


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.
The MCT Advanced Diploma is the full membership qualification for the ACT and leads to the designatory letters MCT.  


 
[http://www.treasurers.org/qualifications/mct The MCT qualification.]
:<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]]
* [[AMCT]]
* [[Constant net asset value]] (CNAV)
* [[Association of Corporate Treasurers]]
* [[Duration]]
* [[TMA]]
* [[Fixed income]]
* [[Fund]]
* [[IAS 7]]
* [[Interest rate risk]]
* [[Investment horizon]]
* [[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]]  (USBF)
* [[Volatility]]
* [[Weighted Average Life]]  (WAL)
* [[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:Investment]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 16:20, 25 August 2013

Member of the Association of Corporate Treasurers.

The MCT Advanced Diploma is the full membership qualification for the ACT and leads to the designatory letters MCT.

The MCT qualification.


See also