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Target Fund

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Target Fund
A mutual fund that invests exclusively in bonds with maturities around a certain date. Once that date is reached, all proceeds are distributed to shareholders; the fund liquidates and ceases to exist. A target fund operates much like a unit investment trust (UIT) because both have final maturity dates; however, a target fund is actively managed, while a UIT is not.

target fund
A specialized self-liquidating mutual fund that invests in bonds maturing around a specific date. After the last maturity, the fund distributes its assets to the owners and ceases business. The limited life of the fund makes it much like a unit trust except that the portfolio is managed. An annual management fee is charged.


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With this successful first closing we are confident of reaching the target fund size of the $350 million in the next few months" said deputy CEO at Rasmala and member of the Fund's investment committee Tamer Bazzari.
With this successful first closing we are confident of reaching the target fund size of the USD 350 million in the next few months" said Tamer Bazzari, Deputy CEO at Rasmala and member of the Fund's investment committee.
During times of financial stress, the effective funds rate has fallen below the target funds rate.
 
 
 
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