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Foreign bonds. Bonds issued by a foreign corporation or by a foreign government or government agency.
Foreign mutual fund. A mutual fund that invests primarily in non-U.S. securities. Also known as International mutual funds.
Foreign stocks. Represent ownership in a foreign corporation. The stocks of a few large foreign companies are traded on U.S. stock markets, but for the most part, foreign stocks must be purchased in the countries where they are issued.
Ginnie Mae. Mortgage-backed security guaranteed by the Government National Mortgage Association (GNMA). Ginnie Mae guarantees are backed by the full faith and credit of the U.S. government, which guarantees that investors will receive timely principal and interest payments even if homeowners do not make mortgage payments on time.
Global mutual fund. Assets in U.S. markets as well as in Europe, Asia, and often developing market countries. Global funds differ from foreign mutual funds, which invest primarily in non-U.S. securities.
Hedging. Strategy used to offset investment risk. A perfect hedge is one eliminating the possibility of future gain or loss.
Index. Statistical composite that measures changes in the economy or in financial markets. Examples are the
Dow Jones
® Industrial Average and S&P 500®.
International mutual fund. See Foreign mutual fund.
Investment-linked Insurance Products (ILP). These products are basically mutual funds with an added insurance coverage. They have greater liquidity as compared to traditional insurance products. However, the insurance coverage will cease once the units are redeemed.
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