Contingent Immunization

Categories: Mutual Funds, Strategies,

A fund management strategy in which the manager of a fund's portfolio replaces an active strategy with an immunization strategy if the return on the portfolio falls to a certain point. If the portfolio return remains above the point, the contingent immunization plan is not needed and the manager will continue to use an active management strategy. If used, the immunization strategy will hold assets and liabilities of equal risk and duration, and allows the portfolio to return to a safety-net level return.