Objective
The MGOV-Roll3M Fund is designed to provide a consistent income stream by investing in short-term government bonds. These bonds, typically issued by highly-rated governments, offer low credit risk while delivering periodic interest payments. The fund's main goal is to offer a safe and liquid investment option, ideal for investors who are looking for preservation of capital with minimal exposure to market fluctuations.
Investment Strategy
The fund follows a strategy of rolling over investments in short-term government bonds with maturities of up to three months. This means that as bonds mature, the proceeds are reinvested into new bonds, typically with similar terms and credit quality. By focusing on bonds with such short maturities, the MGOV-Roll3M Fund is able to mitigate the impact of interest rate fluctuations and maintain high liquidity.
The fund primarily invests in debt securities issued by government institutions, including treasury bills and other short-term government instruments. These securities are considered to be low-risk investments, as they are backed by the credit of the issuing government, providing a high level of security for investors.
The "rollover" approach ensures that the fund stays nimble and able to react to changing interest rates or market conditions. The reinvestment strategy allows the fund to maintain a steady yield, even in a fluctuating interest rate environment. shutdown123