average maturity

Average maturity

The average time to maturity of securities held by a mutual fund. Changes in interest rates have greater impact on funds with longer average maturity.

Average Maturity

In a mutual fund containing debt securities, the average amount of time until the debt securities mature. It is calculated by adding together the total amount of time until maturity and dividing by the number of debt securities in the mutual fund. The shorter the average maturity is, the less the fund's share price will fluctuate with changes in interest rates. See also: Weighted average maturity.

average maturity

The average time to maturity of all the debt securities held in a portfolio. A relatively short average maturity results in smaller price fluctuations in response to changes in market rates of interest. A short average maturity subjects the owner of a debt portfolio to the risk that maturing debt will be replaced with debt carrying a lower interest rate. Average maturity is an important consideration for investors who hold bond and money market funds.
References in periodicals archive ?
In addition, with weighted average maturity of the investment portfolio capped at 90 days and allocation to marketable instruments, there is limited interest rate and liquidity risk, the agency noted.
28, 2018, the weighted average maturity of the fund was 37 days.
While 60% of companies fall into average maturity at stage three, only 14% of companies are above average at stage four and 2% at the highest maturity level of five stage 5, leaving significant room for advancement.
The existing bank loans have a weighted average maturity of 5.7 years and a weighted average interest cost of 4.44% per annum.
The sound credit and liquidity profile of the fund emanates largely from fund"s investment of more than 70% in short term government securities with average maturity of less than 60 days at end-Jan11.
We also view positively the possible extension of the A4 Turin-Milan concession - 30% of consolidated EBITDA - as it slightly increases the average maturity of group concessions.
In addition, part of the proceeds is planned for balance sheet optimization to lengthen the average maturity of its debt whilst reducing its average cost of capital.
Weighted average maturity of the fund was low at 18 days at year-end 2010.
As of March 31, 2018, the Company had $3,525 million in notional amount of interest rate swap agreements with a weighted average pay fixed rate of 1.75% and a remaining weighted average maturity of 5.5 years.
Provide monthly investment reports for the City s entire portfolio detailing holdings, composition and sector analysis, return, weighted average maturity and daily transaction activity.6 9.
The operation resulted in extension of the average maturity of unused back-up credit lines to four from two and a half years.
Interest rate risk is contained with the portfolio's weighted average maturity (WAM) kept below 90 days, in line with Fitch criteria for 'AAAmmf(mar)' rated funds.

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