The High Yield Bonds portfolio invests based on each day’s bond market prices. When you invest, your funds are used to cover both the bond’s market price (which may include a premium or discount) and accrued interest.
Here’s what that means:
- Accrued interest is the interest that has accumulated since the last coupon payment. You’ll receive this amount back with your first coupon payment.
- Bond price may be higher or lower than its nominal value. If a bond is purchased at a premium, your invested amount will appear slightly below your deposit. If it’s bought at a discount, your total holdings may actually be above your deposit.
So, the difference between your deposit and your displayed invested amount reflects how your investment was allocated based on current market conditions.