Core Plus
Definition of 'Core Plus'A fixed-income investment management style that permits managers to add instruments with greater risk and greater potential return - high-yield, global and emerging market debt, for example - to core portfolios of investment-grade bonds. |
|
Investopedia explains 'Core Plus'Investment advisors will advocate building portfolios with core holdings that consist of securities and/or mutual funds that reflect market positions and performance prospects that are so strong that these holdings may be maintained in the portfolio virtually forever. Such holdings might represent as much as 75% of the portfolio. The remaining balance would then consist of higher risk holdings, which may have shorter investment horizons than the core component of the portfolio. As such, a portfolio's core investments would represent a solid foundation to which more aggressive, diversified investments could be added.With mutual funds, the core designation is used to describe categories of large-cap, mid-cap, small-cap, multi-cap and international funds that represent a blend of stocks in the value and growth investment styles. |
Related Definitions
Articles Of Interest
-
Evaluating Bond Funds: Keeping It Simple
Discover some of the key factors for determining a fund's risk-return profile. -
Bond ETFs: A Viable Alternative
Discover the advantages of a security that tracks bond index funds, but trades like a stock. -
A Guide To Core/Satellite Investing
Find out how this approach reduces risk and costs so you can maximize your portfolio return. -
How To Cut Your Mutual Fund Fees By Up To 90%
Most mutual funds don’t come close to beating the indexes they’re compared against. And yet they carry steep fees for active management. Find out how a little research and effort can cut your ... -
A Top-Down Approach To Investing
Use a global view to determine which stocks belong in your portfolio. -
Should You Offer Alternative Investments?
Find out what problems arise for financial representatives when they start to diversify their client offerings. -
Beware Of The Mutual Fund Performance Trap
Want to own a mutual fund that will double its reported return in the next six months? Chances are, you already do. Every equity mutual fund on the planet is about to report a big jump in ... -
An Overview Of Commodities Trading
Commodities markets, both historically and in modern times, have had tremendous economic impact on nations and people. Investing in commodities can quickly degenerate into gambling or speculation ... -
How And Why Do Companies Pay Dividends?
If a company decides to pay dividends, it will choose one of three approaches: residual, stability or hybrid policies. Which a company chooses can determine how profitable its dividend payments ... -
Investing In Fine Wine
If you fail to uncork profits in this market, you can always toast your loss.
Free Annual Reports