Fixed Income Universe Guide | 1 Page Summary Page

Fixed Income Universes

Fixed Income Universe Guide

Fixed Income Mutual Funds Universe

The funds normally have more than 75% of assets in fixed income issues. All returns are net of fees. Fund data, investment objectives, and style definitions are provided by Morningstar. Although data are gathered from reliable sources, accuracy and completeness cannot be guaranteed.

Funds are selected using the following criteria:

  • The investment objective of the fund must be Corporate-General, Corporate-High Quality, Government-General, Government-Treasury, or Government-Mortgage.
  • The average maturity of the fund must be greater than one year.
  • Funds must also have a minimum of four years of history and at least $10 million in net assets.
Currency: US dollars

Fixed Income Accounts Universe

A combination of the Fixed Income Pooled Accounts and Fixed Income Separate Accounts universes. Consists of investment advisor, bank, and insurance company portfolios. These are fixed income-oriented, fully discretionary, tax-free portfolios. Pooled accounts are included from investment advisors if the advisor is (1) organized as a trust company or (2) a registered investment company acting as an advisor to a bank. Mutual funds can be included if they are gross of fees.

Currency: US dollars

Fixed Income Pooled Accounts Universe

Consists of tax-free, fully discretionary, fixed income pooled accounts for banks, insurance companies, and investment advisors. Pooled accounts are included from investment advisors if the advisor is (1) organized as a trust company or (2) registered as an investment company acting as an advisor to a bank. Mutual funds can be included if they are gross of fees.

Currency: US dollars

Fixed Income Separate Accounts Universe

Consists of investment advisor, bank, and insurance company fixed income separate accounts. These are fixed income-oriented, tax-free, fully discretionary portfolios of bonds. Employee benefit accounts are preferred.

Currency: US dollars

Fixed Income Universe Overview

Frank Russell Company's fixed income universes are designed to illustrate representative manager performance within a specific portion of the fixed income markets. The criteria for including accounts is simply based on whether the account is managed in a discretionary manner against a benchmark that represents that portion of the market. Within the US fixed income market, Russell universes are predominantly based on either maturity or sector groupings. The maturity based universes are:

Universe

Maturity Range

STIF/Cash

0 to 1 years

Short Term

0 to 3 years

Short-Intermediate

1 to 3 years

Intermediate

1 to 10 years

Sector Rotation

1 to 30 years

Active Duration

1 to 30 years

Long Term

10 to 30 years

Within these universes that are grouped by maturity, there are three that deserve further comment. The two broad universes, Sector Rotation and Active Duration, differ in that the Sector Rotation universe includes accounts where the duration is managed within a range of one year around the duration of a broad index. The Active Duration universe includes accounts with allowable duration ranges that exceed a one-year range. The Long Term universe differs from the other universes in that it is a collection of accounts which all have a long maturity emphasis, but there is no single maturity focal point.

The remaining US fixed income universes are based on sector groupings and include the municipal, high yield, and mortgage universes. These universes are based on investment returns for specific sectors within the market. In the multi-currency fixed income area, universes are created based on different geographical and currency exposures. Russell currently has an unhedged global, an unhedged non-US, and a hedged non-US universe.



For over 1,000 additional terms and definitions please see our Investment Glossary Guide.

Related to Fixed Income Universe Guide:


Tags: Fixed Income Universe Guide, fixed income universes, fixed income mutual funds universe, universe of fixed income investments, fixed income, fixed income securities

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.