Capital Guarantee Fund

(redirected from Capital Guarantee Funds)

Capital Guarantee Fund

Any investment vehicle where the investor is guaranteed not to lose the capital he/she places into the vehicle. That is, the company offering the investment must bear any losses suffered itself. Because this completely eliminates the investor's risk, capital guarantee funds offer a very low rate of return. See also: Principal Protected Note, Risk-Free Rate of Return.
References in periodicals archive ?
Second Stage Loan Guarantee - Pennsylvania provides a $50 million pool of working capital guarantee funds to manufacturing, advance technology and biotech firms.
Every business day, each of the four Capital Guarantee Funds reports a 'Net Unit Value' (NUV), representing the current value of the investment.
According to Sleyster, the benefits of the Capital Guarantee Funds extend beyond principal protection, growth potential and investment-gain guarantees.
We believe the Capital Guarantee Funds provide a compelling foundation for retirement portfolios by offering a distinctive combination of principal protection and growth potential built right into a single investment vehicle," Sleyster said.
Capital Guarantee Funds are a part of this Secure Retirement approach, since these Funds can help defined contribution participants enjoy growth potential and manage investment risk.
The design shift from defined benefit to defined contribution has transferred investment risk from the plan sponsor to plan participants, and our Capital Guarantee Funds allow DC participants, particularly pre-retirees who fear the risk of loss associated with owning equity securities, to participate in the potential benefits of owning equity securities without risking any loss of principal as they approach retirement," Sleyster said.
Full browser ?