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Weighted Average Maturity (WAM)

The weighted average maturity (WAM) of a fund determines the average time to maturity of all securities held in the portfolio, weighted by the percentage of net assets owned by each instrument. The computation takes into consideration the final maturity for a fixed income security and the interest rate reset date for any variable rate instruments included in the portfolio. This is a method of calculating a fund's sensitivity to possible interest rate fluctuations. See average maturity.



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