Fixed Income Securities. A Sub-Fund, where stated in Annex A, may invest in bonds or other fixed income securities, including, without limitation, commercial paper and "higher yielding" (including non-investment grade) (and, therefore, higher risk) debt securities. A Sub-Fund may therefore be subject to credit, liquidity and interest rate risks. Higher-yielding debt securities are generally unsecured and may be subordinated to certain other outstanding securities and obligations of the issuer, which may be secured on substantially all of the issuer's assets. The lower rating of debt obligations in the higher-yielding sector reflects a greater probability that adverse changes in the financial condition of the issuer or in general economic conditions or both may impair the ability of the issuer to make payments of principal and interest. Non-investment grade debt securities may not be protected by financial covenants or limitations on additional indebtedness. In addition, evaluating credit risk for debt securities involves uncertainty because credit rating agencies throughout the world have different standards, making comparison across countries difficult. Also, the market for credit spreads is often inefficient and illiquid, making it difficult to accurately calculate discounting spreads for valuing financial instruments. It is likely that a major economic recession could disrupt severely the market for such securities and may have an adverse impact on the value of such securities. In addition, it is likely that any such economic downturn could adversely affect the ability of the issuers of such securities to repay principal and pay interest thereon and increase the incidence of default for such securities. Inflation Risk. Inflation may reduce the asset value of the investment. The purchasing power of the invested capital is reduced if the inflation rate is higher than the income generated by the investments. Leverage. Investments in a Sub-Fund may comprise elements of leverage through the use of derivative instruments which may potentially magnify losses and may result in losses greater than the amount invested in the derivative itself. Hedging. Hedging strategies in general are usually intended to limit or reduce investment risk, but they can also be expected to involve transaction costs, involve a risk of loss, may give rise to liquidity problems or may inherently limit or reduce the potential for profit. Currency Hedging. A Sub-Fund may enter into foreign currency forward contr...
Fixed Income Securities. All fixed income products, have their own official statements and other disclosure materials from the issuer, which are avail- able from your Financial Advisor or Stifel. The three most com- mon categories of bonds are municipal bonds, U.S. Treasury securities, and corporate bonds. Fixed income securities are priced by a computerized pricing ser- vice or, for less actively traded issues, by utilizing a yield-based matrix system taking various factors into consideration to arrive at an estimated market value. Prices shown should only be used as a general guide to portfolio value and cannot be guaranteed. For an actual quote, speak to your Financial Advisor.
Fixed Income Securities. Georgian Government Treasury Bills per executed trade up to 0.3% of the trade amount (Minimum GEL 20.00) exact commission rate is agreed between parties in advance and indicated in the respective trade order Other sovereign securities and Corporate bonds per executed trade up to 0.5% of the trade amount exact commission rate is agreed between parties in advance and indicated in the respective trade order. Interest Payment on securities is taxed by Income Tax as determined by the law. Other securities Per executed trade exact commission rate is agreed between parties in advance and indicated in the respective trade order.
Fixed Income Securities. Bonds or other fixed income securities, including, without limitation, bonds, notes and debentures issued by corporations, debt securities issued or guaranteed by the federal, state or provincial government in the United States or Canada or a governmental agency, and commercial paper pay fixed, variable or floating rates of interest. The value of fixed income securities will change in response to fluctuations in interest rates. In addition, the value of certain fixed-income securities can fluctuate in response to perceptions of credit worthiness, political stability or soundness of economic policies. Fixed income securities are subject to the risk of the issuer's inability to meet principal and interest payments on its obligations (i.e., credit risk) and are subject to price volatility due to such factors as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity (i.e., market risk). If fixed income investments are not held to maturity, the value of your Portfolio may suffer a loss at the time of sale of such securities.
Fixed Income Securities. - Money market instruments including CDs, Commercial Paper, Bankers Acceptances, Time Deposits, Repurchase and Reverse-repurchase agreements, Floating rate instruments, US money market funds and bank STIFs - Securities issues by the US Treasury, government agencies and government sponsored enterprises - Corporate Bonds - Asset-Backed Securities - Mortgage-Backed fixed Income Securities including CMOs and CMBSs - US dollar-denominated securities issued by foreign governmental and corporate entities that meet the Fund's criteria for quality
Fixed Income Securities. A fixed income security is an investment that provides a return in the form of fixed periodic payments and eventual return of principal at maturity. The day the fixed income investment is to be paid back is called the maturity date. Fixed income investments that mature within a year are often referred to as money market instruments. Trades typically settle in one business day but settlement can be required for the same day depending on the issuer. GICs, Treasury Bills, Bonds, Debentures and Preferred Shares are examples of fixed income securities. Guaranteed Investment Certificates (GICs) - GICs are deposit instruments most commonly available from financial institutions, requiring a minimum investment at a pre-determined rate of interest, for a stated term. They are generally non-redeemable prior to maturity, but there can be exceptions. Treasury Bills - Treasury bills are short-term debt instruments issued by federal, provincial or municipal governments in large denominations and sold at a discount. Bonds & Debentures - A bond evidences the issuer's agreement to pay a specified rate of interest to the investor at intervals over a given period of time and to then repay the principal on the bond's maturity date. Bonds (other than government bonds) are secured with collateral, such as mortgages or future revenues. Debentures are similar to bonds, but are not backed by collateral. Instead, their security depends on the issuer’s creditworthiness.
Fixed Income Securities bonds
3.3.1 Bonds and bond funds tend to produce less volatile and often more predictable overall returns than equities and equity funds. The interest on bonds may be fixed or variable, the former providing a greater surety of return. Government bonds are known as sovereign debt while company bonds are called corporate bonds. UK government bonds are often called “gilts”.
3.3.2 The return, or yield, from a fixed income bond depends on the interest paid – the coupon – and the price paid. The coupon typically depends on the risk of default by the issuer. The lowest-risk bonds are usually issued by governments and pay the lowest interest. Bonds issued by less developed countries typically have a greater risk of default and thus typically pay higher interest. Corporate bonds have higher yields as compensation for the risk of that their issuers will default.
3.3.3 The most significant determinants of the market value of a fixed interest security are the issuer’s financial health and interest rate changes. In the short term, fixed interest prices will typically change as investors’ perceptions change about prospects for central bank- controlled interest rates and inflation. If a central bank raises rates or inflation risks are seen to be rising, fixed interest bond prices are likely to fall. Differences between the rates paid by higher- and lower-risk bonds will vary over time as investors’ assessments of the economic cycle changes.
3.3.4 In the event of default, capital may be difficult or impossible to recover. The recovery process may also take a long time and involve complex legal procedures.
Fixed Income Securities. Regulatory Considerations * Risk Based Capital The Company, as an insurance entity, is regulated by various state insurance departments, NAIC and A.M. Best. One element of the regulation is risk based capital which has a RBC component related to the investment portfolio. There are three factors which are evaluated by RBC: quality of invested assets, mixed of invested assets and affiliate risk. Manager should be aware of the RBC's current factors at all times when evaluating appropriate investment consideration and not participate in any investment decision which would be detrimental to the client's Risk Based Capital. Addendum B INVESTMENT PLAN OF PENN STAR INSURANCE COMPANY Investment Portfolio- Objectives and Guidelines The Board of Directors of PENN-STAR INSURANCE COMPANY (the "Company") authorizes the Company's officers to engage the services of an Investment Manager who possesses the necessary personnel and research facilities to manage the Company's investment portfolio. The portfolio consists of common stocks, preferred stocks and cash equivalents. The policy guidelines for the Investment Portfolio shall be as stated herein, and are subject to modification with Board approval from time to time by the Company after consideration of the advice and recommendations of the Investment Manager. Execution of All Trades: It is hereby understood that all investment transactions must have prior approval either written or verbal, of the Chairman of the Investment Committee, Irvin Saltzman, prior to thxxx xxxxxxxxxx by the investment manager, provided, however, that if the Chairman of the Investment Committee is not available to give such approval and Advisor, in the exercise of its fiduciary responsibility, believes the investment transaction should be executed promptly, and the investment is within Client's Investment Objectives and Policy Guidelines and Advisor's investment selection criteria, then Advisor may execute the investment transaction and so advise the Chairman of the Investment Committee as soon thereafter as possible. Investment Portfolio The Company's investment portfolio consists of funds allocated and invested in one of two (2) basic forms of investment:
(A) Money market and analogous cash equivalent funds, awaiting permanent investment into equities securities.
(B) Equity issues including common and preferred stocks, units of beneficial interest, American Depository Receipts, and convertible securities. The Company shall establish percentage a...
Fixed Income Securities. Regulatory Considerations * Risk-Based Capital The Company, as an insurance entity, is regulated by various state insurance departments, NAIC and A.M. Best. One element of the regulation is risk based capital which has a RBC component related to the investment portfolio. There are three factors which are evaluated by RBC: quality of invested assets, mixed of invested assets and affiliate risk. Manager should be aware of the RBC's current factors at all times when evaluating appropriate investment considerations and not participate in any investment decision which would be detrimental to the client's overall Risk-Based Capital. ADDENDUM C
Fixed Income Securities. The collateral
