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Corporate income fund (CIF) |
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Corporate income fund (CIF)A unit investment trust featuring a fixed portfolio of high-grade securities and other investments, usually with monthly distribution of income.Corporate income fund (CIF) Similar MatchesCorporate bondCorporate bondCorporate bonds are issued by companies to raise capital. They are an alternative to issuing new shares on the stock market (equity finance) and are a form of debt finance.A bond is basically an IOU - a promise to pay back your original investment (the 'principal') at a maturity date, plus interest payments (the 'yield' or 'coupon') at regular intervals between now and then. The bond is a tradeable instrument in its own right, which means that you can buy and sell it during its life, and its value will tend to rise and fall as interest rates change.For private investors, the safest way into corporate bonds is to invest in a corporate bond fund which spreads the money from lots of investors across lots of corporate bonds, thus diversifying the risk. As with all funds, you need to choose the one that matches your investment objectives and risk profile. Some bond funds aim for 'high yield' (i.e. high income) but to get it they may have to invest in riskier companies. Other bond funds will aim for more modest income, and will only buy bonds of the most dependable blue-chip companies.When choosing a corporate bond fund, make you that you find out whether the fund manager's charges are taken from the capital of the fund or from the income it generates. Charges taken from income will lessen the income returned to investors, but will allow the capital to grow, whilst charges taken from the fund's capital will maintain quoted income levels but will reduce the capital. Corporate actionsCorporate actionsThis rather grand term refers to various things that companies can do which affect the number of shares in issue. Examples are:TakeoversBonus/scrip issuesShare SplitsBuybacksRights issuesConsolidationsMost corporate actions will in some way change the number of shares you have, or the ratio of your holding to the total number in issue, or the acquisition cost of your shares for tax purposes. Market based corporate governance systemMarket based corporate governance systemOrganization of a corporation whereby the supervisory board represents a dispersed set of largely equity shareholders. Corporate income taxCorporate income taxA tax on the profits of corporations. Differences in corporate tax rates across countries can be a cause of foreign direct investment as well as transfer pricing. Bank based corporate governance systemBank based corporate governance systemOrganization of a supervisory board so that it is dominated by bankers and corporate insiders. Further SuggestionsCorporate tax viewCorporate equivalent yield Corporate charter Corporate taxable equivalent corporate warrant Corporate repurchase Corporate Trust Corporate acquisition Corporate bonds Lehman Brothers Corporate Bond Index corporate raider Corporate financial planning Corporate financial management Lehman Brothers Government or Corporate Bond Index Corporate tax Reorg (or Corporate Action or Reorganization) |
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