Preservation of Capital

Preservation of Capital

A conservative investment strategy that attempts merely to avoid the loss of value. Retirees often prefer this strategy for their savings because the rate of return is designed only to keep up with inflation, ensuring that the value of their savings does not decrease over time. This often works in the short-term for pensioners, but using capital preservation as a long-term strategy often adds exposure to inflation risk rather than reduces it. Capital preservation strategists usually invest in fixed-income securities and other low-risk investments.
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DMF is a non-diversified closed-end management investment company that aims to maximise current income exempt from federal income tax to the extent consistent with the preservation of capital, while the other two are diversified closed-end management investment companies that seek to maximise current income exempt from federal income tax to the extent consistent with the preservation of capital.
The fund is intended to serve institutional investors and is designed for preservation of capital with maximum liquidity while providing current income.
This focus on preservation of capital, through creation of value while managing risk, has since 1991 consistently produced superior returns for our investors.
Also, the investment objective of (NYSE MKT:VCF) and (NYSE MKT:VMM) is to provide current income exempt from federal income tax and from the personal income tax of its state, if any, consistent with the preservation of capital, while (NYSE MKT:VFL)'s is to provide current income exempt from regular federal income tax consistent with the preservation of capital.
Additonally, the first two funds provide current income exempt from federal income tax and from the personal income tax of its state, if any, consistent with the preservation of capital, while the investment objective of the third fund is to provide current income exempt from regular federal income tax consistent with the preservation of capital.

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