At TrustINdiana, we think it is important that you understand key aspects of the business. Below are definitions for the different rates and weighted average maturities (WAM) that we report to you, the TrustINdiana Participant.
YTD “Year-to-Date” Yield (%): Is the sum of the daily dividend factors since the beginning of the calendar year, multiplied by the number of days in the year (366 days for leap years), multiplied by 100, divided by number of days that have transpired year-to-date.
30-Day Yield (%): Is the sum of the daily dividend factors for the past 30 days, multiplied by the number of days in the year (366 days for leap years), multiplied by 100, divided by 30.
Daily Yield (%): Daily dividend factor multiplied by the number of days in the year (366 days for leap years) multiplied by 100.
Daily Dividend: Is the net income divided by the number of shares in the portfolio as of the close of business.
Weighted Average Maturity (To Reset): The average time it takes for securities in a portfolio to mature, weighted in proportion to the dollar amount invested in the portfolio. WAM measures the sensitivity of fixed income portfolios to interest rate changes. The longer the WAM, the more sensitive it is to changes in interest rates. When a bond is held longer, the opportunity is greater for interest rates to move up or down and affect the performance of the bonds in the portfolio. If interest rates move up, the value of a bond decreases because there are bonds in the market that now pay more interest and therefore are more attractive. WAM (To Reset) is the WAM of the portfolio taking into account the next reset dates on the floating rate positions rather than the final maturity of the position. The WAM (To Reset) for the TrustINdiana portfolio is kept under 60 days, helping to enhance liquidity and limit market price exposure.
Weighted Average Maturity (To Final): Same as WAM (To Reset) except that the WAM calculation goes to the final maturities of all positions regardless if they may have a floating interest rate associated with them.
Put your new knowledge to the test and check out the TrustINdiana Daily Yields.