What is a bond fund?

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Bond funds primarily invest in securities called bonds . A bond is a debt security issued by a company, a government... When a bond is purchased, the money is loaned to the company that issued the bond. In exchange, the issuer promises to repay the borrowed amount on a set date. With this loan, the issuer pays interest for the life of the loan.

Bond funds tend to be less volatile than stock funds. There is a different level of risk for this type of fund which depends on the maturity date (date on which the company or the State must repay its loan) of the security.

Some examples of bond funds:

• Schelcher Prince Short Term Bonds

• Lazard Convertible Global unit EUR

• Schelcher Prince European Opportunities