Benham opens new zero coupon portfolio.MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Feb. 16, 1996--The Benham Group has added a new portfolio to its unique series of zero coupon bond Coupon Bond A debt obligation with coupons attached that represent semiannual interest payments. Notes: No record of the purchaser is kept by the issuer, and the purchaser's name is not printed on the certificate. This is also known as a bearer bond. funds. The new fund is Benham Target Maturities Trust 2025 Portfolio. The 2025 Portfolio replaces the 1995 Portfolio, which matured in December of 1995. The 1995 Portfolio was the second Target Portfolio to successfully mature since the Trust's inception in 1985. The 1990 Portfolio matured five years ago. "These portfolios offer individual investors easy access to a marketplace previously dominated by large institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. ," said James M. Benham, chairman of the board of the Benham funds and vice chairman of Twentieth Century. "I'm pleased that the portfolios have continued to perform as we anticipated," he added. Unlike traditional coupon-bearing bonds, which pay interest periodically, zeros pay no interest. Instead, these securities are issued at a substantial discount and then redeemed for their full face value at maturity. When held to maturity, a zero's entire return comes from the difference between its purchase price and its value at maturity. Most investors use zeros to add interest rate sensitivity to their portfolios or to help meet future lump sum Lump sum A large one-time payment of money. needs without reinvestment risk Reinvestment Risk The risk that future proceeds will have to be reinvested at a lower potential interest rate. Notes: This term is usually heard in the context of bonds. . Benham Target Maturities Trust consists of six no-load portfolios with maturities staggered five years apart starting with the 2000 Portfolio and ranging up to the new 2025 Portfolio. Zero coupon funds are known for their volatile performance over the short-term and the predictability they can provide when held to maturity. David Schroeder, a vice president for Benham Management Corp., has managed the Target Portfolios since 1990. Last year, Benham merged with Twentieth Century. With more than $45 billion in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. , the combined Twentieth Century and Benham companies provide a broad family of no-load mutual funds No-load mutual fund An open-end investment company whose shares are sold without a sales charge. There can be other distribution charges, however, such as Article 12B-1 fees. A true no-load fund has neither a sales charge nor a distribution fee. for more than 2 million individual and institutional investors. Headquartered in Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Mo., Twentieth Century was founded in 1958 by its chairman, James E. Stowers James E. Stowers (born 1924) is the founder of American Century Investments and the Stowers Institute for Medical Research. Born and raised in Kansas City, Missouri, Jim Stowers graduated from Kemper Military School in Boonville, Missouri. Jr. The Benham Group was founded in 1972 by James M. Benham, chairman of the board of the Benham funds and vice chairman of Twentieth Century. For more complete information, including charges and expenses, call 1-800-331-8331 for an information kit and prospectus, which should be read carefully before investing or sending money. By itself, the portfolio does not constitute a balanced investment program. CONTACT: Benham Funds, Mountain View, Calif. Jim A. Benham, 415/967-9777 |
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