TTD is a government agency

glossary


 


 

- A -

Secured - Describes a risk in a portfolio or from an investment that has been neutralized in whole or in part by holding an equalization position in a security or a derivative instrument.

SECTION - Abbreviation for “Asset-Backed Security”.

Absolute return - The returns on an investment, expressed without reference to a benchmark return. A mutual fund can be described as an “absolute return fund” if its objective is to generate a positive return, rather than to generate a return that exceeds a specified benchmark.

Processing (drawing) - The process by which securities or shares in a mutual fund are delivered in exchange for cash.

ADR - An American Depositary Receipt (ADR) is a negotiable security that represents the securities of a non-US company traded on the US financial markets.

AED - The legal currency of the United Arab Emirates.

AFN - The legal currency of Afghanistan.

Agency passthrough - A security that receives payments from an intermediary who, in turn, receives payments from a pool of assets, e.g. B. Receives mortgages guaranteed by a government agency.

share - A long-term, growth-oriented investment that represents an investment in a company.

shares - Shares issued by a company that represent ownership of it, which sets them apart from fixed income securities such as bonds or mortgages.

Equity funds - A mutual fund / collective fund in which the money is primarily invested in common and / or preferred stocks. Equity funds may vary depending on the investment objective of the fund.

Share-linked securities - Hybrid debt instruments whose return is linked to an underlying stock or derivative instruments whose price is linked to the price of an underlying stock or an underlying stock index.

Equity market neutral - An investment strategy that involves offsetting long and short positions in stocks so that the portfolio has little or no exposure to movements in the stock market as a whole and is instead exposed to more specific risks.

shareholder - The holder of common or preferred shares in a company. Also called “Shareholder”.

Active spread duration - The active spread duration is the difference between the spread duration of a portfolio and that of its benchmark. Spread duration is the sensitivity of a security's price to changes in its credit spread. The credit spread is the difference between the return on a security and the return on a benchmark rate, e.g. B. a cash interest rate or a government bond yield.

Active spread duration contribution - The active spread duration is the difference between the spread duration contribution of a particular security or market segment to a portfolio and the contribution to the portfolio's benchmark. The spread duration contribution corresponds to the spread duration of a security or market segment multiplied by the size of the allocation to it.

Current Portfolio Return (%) - The current portfolio return is a market value-weighted average of the current returns of the positions in the portfolio, which is calculated as the coupon (base rate plus spread) divided by the current price. The measure is used to compare the estimated short-term returns of portfolios as opposed to their estimated returns over time or to maturity.

ALLES - The legal currency of Albania.

alpha - The risk-adjusted excess return on an investment in the Fund compared to the benchmark.

Alternative investment strategies - Generally speaking, an investment that is not one of the three classic types of asset (stocks, bonds and cash). Alternative investment strategies typically operate in private, unlisted markets or have the ability to use leverage, short selling and active risk management to generate returns that have a low correlation to traditional types of assets.

Alternative risk premium - A source of return that compensates for taking an investment risk that cannot be avoided through diversification and that is not one of the “classic” investment risks (market risk, equity risk, credit risk, interest rate risk, inflation risk). Examples of alternative risks are value, momentum, carry, and volatility.

AMD - The legal currency of Armenia.

Investment advisor - An organization employed by a mutual fund to provide professional advice on the fund's investments and asset management practices.

Asset class - A group of securities that have similar characteristics and perform similarly in the market. The most common asset classes are stocks, bonds, and near money. Asset classes are generally subject to the same rules and regulations.

Asset class attribution - Part of the portfolio's total return attributed to the portfolio manager's allocation to an asset class.

Investment objective - The objective of an investment fund and its unitholders, e.g. B. Growth, Income, Growth and Income.

bond - A bond works like a loan or note issued by a corporation, community, or US government. The issuer promises to repay the full amount of the loan on a specific date and to pay a specified return on the use of the money to the investor at specific time intervals.

Bonds - Debt issued by non-governmental, non-governmental and non-local government bodies.

Acceptance deadline - The last time on each day on which an application for subscription or redemption of units in an investment fund can be submitted to the fund management company. Applications received after this deadline will be processed the next day.

Annualized - A process of projecting or averaging numbers covering a period of less than or more than a year to present a number for a twelve month period. It is commonly used to express return or volatility / standard deviation data.

proportion of - A share in an investment, such as a share or a mutual fund share.

Share class - Classes represent ownership of the same fund but charge different fees. This may allow Shareholders to choose the type of fee structure that best suits their particular needs.

amount of positions - Total number of individual securities in a fund or portfolio.

AOA - The legal currency of Angola.

ARS - The legal currency of Argentina.

AUD - The legal currency of Australia.

Inception date - The date on which the fund is launched.

surcharge - The amount by which a bond or stock is sold above its face value.

Breakdown by sector - Breakdown of the securities in a portfolio by industry category.

Compounding - Compounding of interest is the process by which over time the growth in the dollar value of an asset exceeds that implied by the annual percentage growth rate, since the annual percentage growth rate affects not only the investment capital but the capital plus any subsequent returns. The same process means that the negative growth in the dollar value of an asset is less than that implied by a negative annual percentage growth rate.

Failure risk - The risk that companies or individuals will not be able to make their required payments in relation to their debt obligations.

Issue surcharge (max.) - The maximum amount that a mutual fund investor may have to pay to invest in the fund, expressed as a percentage of the value of the investment.

Distribution class - Any share class that pays dividends.

AWG - The lawful currency of Aruba.

AZN - The legal currency of Azerbaijan.

 

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- B -

BAM - The legal currency of Bosnia and Herzegovina.

Bank loan - An amount of money that is loaned to a borrower by a bank with interest for a period of time, usually against the deposit of a security.

Consumer staples - The sector of the economy that represents companies that produce goods and services that are considered vital by consumers and that they cannot or do not want to remove from their budget regardless of their financial situation.

Base currency - The currency in which the net asset value of each portfolio is determined.

BBD - The legal currency of Barbados.

BDT - The legal currency of Bangladesh.

Conditional Deferred Sales Fee (CDSC) - A deferred sales charge that is imposed when shares are redeemed from a fund. This fee usually decreases over time.

Benchmark - A standard, usually an unmanaged index, used for comparison purposes when assessing the performance of a portfolio or mutual fund.

Secured bond - A type of bond secured by the issuer pledging a specific asset, which is a type of security for the loan.

Secured Loan - A loan where the collateral in the form of assets of the borrower is pledged to pay off the lender in the event of default under a loan agreement. Secured loans are commonly used in the leveraged loan market.

beta - A measure of the correlation and volatility of a portfolio compared to a benchmark based on historical returns. The beta of the benchmark is always 1. For example, a beta that is above the benchmark (ie more than 1) indicates that a portfolio is more volatile than the benchmark and is likely to outperform on rising markets and one on falling markets Will underperform.

rating - An estimate of the value of a company; the price that investors assign to a single security.

BGN - The legal currency of Bulgaria.

BHD - The legal currency of Bahrain.

BIF - The legal currency of Burundi.

Bloomberg - Is a major global provider of 24/7 financial news and information, including real-time and historical price data, financial data, trading news and analyst reports

BMD - The legal currency of Bermuda.

BMRK / Benchmark - An index that is used to compare the performance of a fund, or is used to track the return of such an index, or is used to define the asset allocation of a portfolio, or to calculate performance fees. Indice de Référence: Un indice qui est utilisé pour comparer la performance d'un funds, ou qui est utilisé dans le but de suivre le rendement de cet indice, ou qui est utilisé pour définir la répartition d'actifs d'un portfolio ou pour calculer des commissions de performance

BND - The legal currency of Brunei Darussalam.

BOB - The legal currency of Bolivia.

Listed stocks - Shares that are traded on at least one stock exchange or an over-the-counter market.

Bottom-up analysis - A bottom-up investment approach focuses on analyzing individual bonds and stocks and the businesses of the companies that issue them. The focus is on data that is specific to the issuing companies, rather than the industry in which they operate or the economy as a whole.

BP (basis points) - Base point (BP) refers to a unit of measure for interest rates and other percentages in finance. One basis point is equal to one hundredth of 1%, or 0.01% (0.0001).

Broadly based indices - An index designed to reflect the movement of the entire market.

BRL - The lawful currency of Brazil.

Gross exposure - The face value exposure to market fluctuations in an investment portfolio, expressed as the sum of its long positions (where securities are held directly or through the use of derivatives) and its synthetic short positions (where securities are borrowed and sold for later repurchase). A strategy with 50% of the portfolio's assets in long positions and 50% in short positions would e.g. B. a net market exposure of 0% and a gross market exposure of 100%.

BSD - The legal currency of the Bahamas.

BTN - The legal currency of Bhutan.

BWP - The legal currency of Botswana.

BYR - The legal currency of Belarus.

BZD - The legal currency of Belize.

 

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- C -

CAD - The legal currency of Canada.

Carry - The cost (or profit) of holding an investment regardless of movements in its price. Carry can also refer to the premium paid (or received) for assuming the risk of holding an investment. A "carry trade" is a two-leg trade in which the investor sells or borrows an asset with a low carry to buy or lend an asset with a high carry and wins the spread between the two.

CBOE Russell 2000 PutWrite Index (PUTR) & # x2028 - This index is intended to represent a proposed hypothetical short put strategy that sells a monthly at-the-money put option on the Russell 2000 Index. The written put option on the Russell 2000 is secured by a money market account that is invested in one month treasury bills.

CBOE S&P 500 PutWrite Index (PUT) & # x2028 - This index is intended to represent a proposed hypothetical short put strategy. PUT is an award-winning benchmark index that measures the performance of a hypothetical portfolio that sells put options on the S&P 500 Index against collateralized cash held in a money market account. The PUT seeks to sell a range of one-month at-the-money put options on the S&P 500 index and invest cash at the rates of one- and three-month Treasury bills.

CDF - The legal currency of the Democratic Republic of the Congo.

CHF - The legal currency of Switzerland.

CLP - The legal currency of Chile.

CMBS - Abbreviation for Commercial Mortgage-Backed Security, which is a type of mortgage-backed security that is secured by mortgages on commercial real estate instead of residential real estate.

CNY - Chinese yuan Renminbi, the legal currency of the People's Republic of China.

COP - The lawful currency of Colombia.

CRC - The legal currency of Costa Rica.

CRTs - Securities, insurance contracts, and other agreements issued by the US Federal Housing Finance Agency under the Credit Risk Transfer Program for US government mortgage agencies.

CUC - The legal currency of Cuba.

CVE - The legal currency of Cape Verde.

CZK - The legal currency of the Czech Republic.

 

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- D -

Delta-adjusted engagement - The amount of simple market exposure a Fund has, usually expressed as a percentage of the total assets of the Fund, without adjusting for the relative risk of the positions held (which would be measured, for example, as a "beta adjusted" exposure). The “gross exposure” is calculated by adding up the long and short positions.This can be more than 100% of the total assets of the Fund, as long positions can be funded through leverage or through the possession of derivative instruments whose notional exposure is greater than the capital deposited as collateral for them and because short positions Positions arise from borrowing (instead of owning) securities or owning derivative instruments whose notional exposure is greater than the capital deposited as collateral for them. The “net exposure” is calculated by subtracting the Fund's short positions from its long positions.

Custodian - A bank that holds the assets of a mutual fund, handles all portfolio business and collects most of the valuation data required to calculate the net asset value (NAV) of a fund.

Derivative financial instruments (FDI) - Financial instruments that are linked to another specific financial instrument or indicator or commodity and through which specific financial risks can be traded independently on financial markets; their value is derived from the price or level of the underlying asset or indicator. Examples are futures, options, and swap contracts.

Discretionary investment process - An investment decision-making process based on the judgment of a portfolio manager as opposed to computer generated inputs or signals or strict rules.

DJF - The legal currency of Djibouti.

DKK - The legal currency of Denmark.

Domicile - The geographic location where a fund is established.

DOP - The legal currency of the Dominican Republic.

Duration - A measure of the sensitivity of the price of a bond or loan to a change in interest rates, expressed in years. A longer duration indicates a higher sensitivity. A “modified” duration makes no adjustments to account for changes in the bond's expected cash flows in response to changes in yield and is often used to evaluate securities with no options, such as equity securities. B. government bonds are used. The "effective" duration is a calculation that includes an option pricing model to account for embedded options, e.g. B. an option for the issuer to make early repayment of capital or an option for the holder to request early capital repayment. This measure of duration takes into account the fact that expected cash flows will fluctuate as interest rates change.

Average duration (years) - The mean average duration of a portfolio of bonds or loans. Duration is a measure of the sensitivity of the price of a bond or loan to a change in interest rates.

Average credit quality - A weighted average of the credit ratings of all bonds in the portfolio.

Average monthly return (%) - The mean average of all returns for the calendar month over the life of a fund.

DZD - The legal currency of Algeria.

 

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- E -

EGP - The legal currency of Egypt.

Return on equity - The return on equity is the amount of net income generated as a percentage of the equity holder's equity.

EMD - Abbreviation for "Emerging Market Debt"

Issuer - A legal entity that issues, registers and sells securities in order to finance its business.

EPS - Earnings per share: The proportion of a company's earnings that is allocated to each common share in circulation.

EPS growth - EPS growth (growth in earnings per share) shows the growth in earnings per share over time. Investors can use the EPS growth rates to identify stocks whose earning power is increasing or decreasing. The estimated EPS growth per unit over 3 to 5 years is an estimate that indicates how much the earnings per unit are expected to grow over the next 3 to 5 years. There is no guarantee that the Sub-Fund's investment objective will be achieved.

ERN - The legal currency of Eritrea.

ETB - The lawful currency of Ethiopia.

ETF - Abbreviation for “Exchange-traded funds”, which are tradable securities that track an index, commodity, bonds or basket of assets such as an index fund. Unlike mutual funds, an ETF is traded on an exchange like a common stock.

Euro, EUR or € - The single currency of the participating member states of the European Monetary Union, which was introduced on January 1, 1999.

European Event Driven & Equity Long / Short - Hedge fund strategies targeting corporate events such as mergers, acquisitions or financial difficulties in European stocks, trading long and short positions in European stocks.

Event Driven (event driven) - An investment strategy that seeks to take advantage of price inefficiencies that arise before or after company-specific events such as bankruptcies, mergers, acquisitions and spin-offs.

 

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- F -

Due Date - The date on which an asset such as B. a bond or a derivative has to be redeemed by its issuer. For a bond, this is the date on which the last coupon is paid and the principal is returned to investors. For a derivative, this is the date on which the contract expires.

Prefabricated houses - Houses that are largely manufactured (prefabricated) in a factory before being transported to a property for assembly.

Fixed Income - Describes an asset that makes a regular payment at a pre-defined level until due. Typically refers to bonds or funds that invest in bonds.

Notional percentage of collateral (%) & # x2028 - The notional value of options (exercise price x contracts x multiplier) divided by the sum of the collateral investments.

FJD - The legal currency of Fiji.

FKP - The legal currency of the Falkland Islands.

Funds - A pool of funds raised to purchase securities from a group of investors.

Asset backed security - A security that is backed by a loan, rental, or receivable on assets, other than real estate and mortgage-backed securities.

Free cash flow - Free cash flow is the liquidity that a company generates from its net profit after deducting investments to maintain and expand its capital.

Free cash flow rate of return - A valuation parameter for a share, calculated from the expected free cash flow per share that a company should generate, divided by the company's share price. It is the opposite of the price / free cash flow ratio.

Detached - Properties that are not connected to other buildings or parts of building complexes, such as B. a shopping center or an office building.

Fundamental analysis - A method of assessing the intrinsic value of a security or an issuing company by examining related economic, financial, and other qualitative and quantitative factors.

Fundamental short positions - Short positions in individual stocks or sectors based on their fundamental investment characteristics (as opposed to “market shorts”).

FX - An abbreviation for "Foreign exchange".

 

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- G -

GBP - The lawful currency of the United Kingdom.

Fees (deferred issue fees, issue fees, and royalty-free) - Distribution fees for mutual funds. A deferred sales charge is payable on redemption (see Conditional Deferred Sales Fee), while an issue charge is paid at the time of purchase. Royalty Free Funds have no sales fees.

GEL - The legal currency of Georgia.

Money market - A market in which financial instruments with high liquidity and very short terms are traded.

Near money means - A short-term money market paper, e.g. B. a treasury bill or repurchase agreement that has such high liquidity and security that it can easily be converted into cash.

Monetary policy - The macroeconomic policy set by the central bank. This includes managing the supply of money and interest rates to influence the levels of inflation, consumption, growth and liquidity.

Total return - Includes all dividends and interest received, net of fees and expenses, in addition to changes in net present value, including the price of Shares, assuming that the dividends and capital income of the Fund are reinvested.

Weighted duration (years) - The weighted average amount of time it takes a portfolio of debt securities to reach maturity. This value is also used to measure the percentage change in price when the interest rate changes by 100 basis points.

Weighted average duration (years) - The weighted average duration of a portfolio of bonds or loans, weighting each position in the portfolio according to its size. Duration is a measure of the sensitivity of the price of a bond or loan to a change in interest rates.

Weighted Average Current Return (Years) - The median average return on a portfolio of bonds or loans, weighting each position in the portfolio according to its size and calculating the return simply by dividing the annual coupon payments for the portfolio by the current market value of the portfolio. This measure is used to compare the estimated short-term returns on bonds or loans as opposed to their estimated returns over time or to maturity.

Weighted average market capitalization - The mean average market capitalization of a portfolio of securities, with each position weighted according to its size in the portfolio. Market capitalization is the total value of all outstanding issues of a type of security from an issuer at current market prices.

Weighted Average Return on Payments (%) - The market value weighted average return for individual securities in the portfolio. The repayment yield on a security is the discount rate which, when applied, equates the current value of future cash flows to its current market rate plus accrued interest, assuming the security will be held to maturity. When calculating the repayment yield, the current market rate, the nominal value, the coupon rate and the term are taken into account. It is assumed that all coupons are reinvested at the rate of the redemption yield.

Weighted average days to maturity - The average number of days until the due date (weighted according to fictitious engagements).

Weighted average yield-to-worst (%) - The median average return on a portfolio of bonds or loans, with each position weighted according to its size in the portfolio and the return being the worst available when calculating to maturity and when calculating call options (the borrower's right to capital before the Repayment due date), put options (the right of the lender to request payment of principal before the due date) or other special features may be taken into account.

Weighted average coupon - Is the weighted average gross interest rate of a pool of securities at the time the securities were issued.

Weighted Average Percentage of Moneyness (%) - The average exercise price of options as a percentage of the current underlying index / ETF price.

Weighted average price - The weighted average of the market prices of the securities held in a portfolio. Typically used for bond portfolios. Corresponds to the portfolio price.

Weighted Average Breakeven (%) - The average percentage decrease / increase that would be required for the underlying price level to fall / increase below the breakeven price level (exercise price minus / plus the premium received).

Weighted Average Delta & # x2028 - The approximate percentage change in the fund price in the event of a corresponding one percent change in the price of the underlying index or indices.

GHS - The legal currency of Ghana.

GIP - The legal currency of Gibraltar.

Global macro strategy - An investment strategy that creates portfolios and trades based on broad macroeconomic views, usually comparing growth, interest rate and inflation expectations of countries, and by taking long and short positions in stock market indices, currency, government bond and interest rate markets as well Raw materials is expressed.

Global Interest - Short and long term interest rates in the global currency and government bond markets.

GMD - The legal currency of Gambia.

GNF - The legal currency of Guinea.

GTQ - The legal currency of Guatemala.

GYD - The legal currency of Guyana.

 

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- H -

Hard currency - A currency accepted in many countries around the world for the payment of goods and services. Examples of hard currencies are the US dollar and the euro.

Leverage - An investment technique that gives an investor exposure to the returns on an asset in excess of the amount invested. Usually this is "financial leverage" (borrowing money to increase the size of an investment) or "derivative leverage" (allocating collateral to a derivative instrument to give it a higher notional exposure to its underlying asset produce).

High water mark - The highest peak value that an investment fund or account has achieved. It is often used to determine when a fund investor can be charged a performance fee.

High yield - A security or asset - usually a bond or a loan - that has received a rating below BBB- / Baa3 or no rating from a nationally recognized statistical rating organization. Such bonds or loans are sometimes referred to as “speculative” or “junk” bonds or loans, or “uninvestment grade” bonds or loans.

HKD - The lawful currency of Hong Kong.

HNL - The legal currency of Honduras.

Hong Kong (H shares) - Shares in a company incorporated in mainland China that is listed on the Hong Kong Stock Exchange or another overseas exchange

Hong Kong (Red Chips) - A mainland China company incorporated internationally and listed on the Hong Kong Stock Exchange.

HRK - The legal currency of Croatia.

HTG - The legal currency of Haiti.

HOOF - The legal currency of Hungary.

Hybrid corporate bonds - Hybrid corporate bonds are structured securities that combine features of stocks and bonds.

Hybrid Financial Capital - Global - Bond-like securities that are expected to benefit an issuer's equity because they have equity-like properties, e.g. B. unlimited or very long terms and that issuers can postpone coupon payments at their discretion.

 

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IDR - The lawful currency of Indonesia.

ILS - The legal currency of Israel.

index - An investment index tracks the performance of many investments in order to measure the overall performance of a particular type or category of investment. The S&P 500 is widely regarded as the benchmark for investors in large stocks. It tracks the performance of 500 stocks of major US companies.

Index allocations - The percentage of the portfolio allocated to instruments that replicate specified indices.

Index products - An investment product that is designed to match or track the components of a market index.

Indices - plural of index.

inflation - An increase in the prices of goods and services, which is often equated with a loss of purchasing power.

Information Ratio (IR) - The expected active return of an investment strategy (alpha) in relation to its benchmark or reference value, divided by its tracking error. This is a measure of the efficiency with which an investment strategy takes risks relative to its benchmark.

INR - The legal currency of India.

Investment grade - A security or asset - usually a bond or loan - that has been rated BBB / Baa or higher by a leading credit rating agency.

Investment company - A company, trust or partnership that invests pooled shareholder dollars in securities suitable for the purposes of the organization. Mutual funds, closed-end funds, and unit investment trusts are the three types of investment company.

ISIN - Abbreviation for "International Securities Identification Number". A unique international code that identifies an issue of securities. Each country has a national numbering agency that assigns ISIN numbers for securities in that country.

ISK - The legal currency of Iceland.

 

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Annual report - The annual audited record of the condition and performance of a mutual fund, which is distributed to the unitholders.

JMD - The legal currency of Jamaica.

IODINE - The lawful currency of Jordan.

JPY - The lawful currency of Japan.

 

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- K -

capital - Funds that are used to generate income or to make an investment. Companies raise capital from investors by selling stocks and bonds and use the money to expand, make acquisitions, or otherwise build the business. The term “capital markets” refers to the physical and electronic environments in which this capital is raised, either through public offering offers or through private placements.

capital - The initial amount of money invested in an asset.

KES - The legal currency of Kenya.

KGS - The legal currency of Kyrgyzstan.

KHR - The legal currency of Cambodia.

KMF - The legal currency of the Comoros.

Municipal bonds - A security that is issued by a state, a municipality or a district.

correlation - The probability, based on a historical relationship, that the price of a security will move in the same direction as another security or benchmark over a period of time (usually a month). “Correlation Risk” means the risk that the realized correlation between one asset and another could differ from that implied by the historical relationship.

borrower - Also known as the debtor. This is a person or a company who is legally or contractually obliged to provide a service or a payment to another.

Credit rating / creditworthiness - A rating assigned by an agency such as Moody's, Standard & Poor's, Fitch Ratings or others to a bond or loan or an issuer of bonds or loans that expresses the agency's assessment of the probability of default of the bond or the issuer. These ratings are usually represented by letters (e.g. AAA, B, CC). “Credit rating” is often used interchangeably to describe a bond or loan, an issuer, or a portfolio of bonds or loans.

Cumulative performance - The returns generated by an investment over a specific period of time, in contrast to the performance of an investment over a specific period of e.g. B. a month, a quarter or a year.

coupon - The periodic interest payments made by the issuer of a bond to an investor.

Price-to-book ratio - The share price of a security divided by its book value (net value) per share. In the case of a stock portfolio, this value is the weighted average price-to-book ratio of the stocks in its portfolio.

Price / free cash flow ratio - A rating for a share, calculated from a company's share price and divided by the expected free cash flow per share that the company is expected to generate. It is the opposite of the free cash flow rate of return.

Price / earnings ratio - The price / earnings ratio is a key figure that expresses how the share price relates to the annual net profit that the company generates per share.

Price-to-sales ratio - The share price of a company divided by its sales per share. An alternative method to price / earnings ratio for valuing a stock.

Short term investment - Asset that has a remaining term of less than a year at the time of purchase.

Short term trading - A trading strategy where the time between buying and selling ranges from a few days to a few weeks.

KWD - The legal currency of Kuwait.

KYD - The legal currency of the Cayman Islands.

KZT - The legal currency of Kazakhstan.

 

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LAK - The legal currency of the People's Democratic Republic of Laos.

Country allocations - The total of the investments in the portfolio categorized by country.

Long-term investment strategy - A strategy that ignores the daily fluctuations in the stock and bond markets and reacts to fundamental changes in the financial markets or the economy.

Large cap - Describes companies and stocks whose market capitalization is greater than $ 10 billion.

Long-term debt ratio - A measure of a company's gearing calculated by dividing its long-term debt by the total of its equity and debt.

Runtime distribution - The breakdown of the assets of a portfolio based on the timeframe in which the investments mature.

LBP - The legal currency of Lebanon.

Lipper rating - The Lipper Mutual Fund Industry Average is the performance level of all mutual funds as reported by Lipper Analytical Services in New York. A ranking of the performance of all investment funds by type of fund, such as aggressive growth funds or income funds, is compiled every quarter and annually. Mutual fund management companies aim to outperform the industry average and other funds in their category.

liquidity - The ability to have easy access to cash invested in a fund, or the ability to buy and sell securities relatively quickly and cheaply. Many Funds are sold in shares that can be redeemed at current value within a single business day.

LKR - The legal currency of Sri Lanka.

Long - Describes a portfolio, a portfolio position or an investment strategy that is characterized by owning the security or securities or by exposure to a derivative instrument, whereby a profit is generated if the price of the security or the underlying asset increases. The opposite is a “short” portfolio, a “short” portfolio position, a “short” exposure or a “short” investment strategy.

Long / short stocks - An investment strategy that takes both long and short positions in stocks or stock indices.

LRD - The legal currency of Liberia.

LSL - The lawful currency of Lesotho.

LYD - The legal currency of Libya.

 

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MAD - The legal currency of Morocco.

Management fee - The fixed annual fee an investor pays for having assets managed in a mutual fund or by an investment manager.

Margin increases - Increases in the difference between a company's income and the expenses necessary to generate that income.

"Market shorts" - Short positions that are not taken in individual stocks or sectors, but in the entire market or in parts of a market with a specific market capitalization range. They are implemented using S&P futures or listed funds (Exchange Traded Funds, "ETF").

Market capitalization - The market value of a company, calculated by multiplying the number of shares in circulation by the share price, or the market value of a company's bonds in circulation.

Market price - The current price of an asset.

Maximum monthly profit - The largest gain a fund has made on its historical returns in a single calendar month.

Maximum monthly loss - The largest loss a Fund has in any single calendar month on its historical returns.

Maximum depreciation - The largest loss, measured from high to low before a new high is reached, that a fund has within its historical returns.

MDL - The legal currency of the Republic of Moldova.

MEA - The English abbreviation for the countries in the Middle East and Africa.

Merger arbitrage - An investment strategy that seeks to take advantage of the volatility in the price of company stocks that occurs when companies are merged or acquired. Usually the strategy has long positions in target companies and short positions in acquiring companies.

MGA - The legal currency of Madagascar.

MKD - The legal currency of the Former Yugoslav Republic of Macedonia.

MMK - The legal currency of Myanmar.

MNT - The legal currency of Mongolia.

Next generation mobility - Describes the spread of autonomous, electric and connected vehicles in connection with the movement of people and goods.

Momentum - Momentum is the tendency for the price of a security to move in a certain direction - up or down. The term can also refer to the premium paid for taking on the risk of holding (or selling) an investment that has increased (or decreased) in price or an investment strategy aimed at taking advantage of that premium.

MOP - The legal currency of Macau.

Morningstar Analyst Rating - The Morningstar Analyst RatingTM (shown as a label) uses the expertise of Morningstar's analysts to assess factors they believe are of paramount importance to predicting a fund's future success.

Morningstar category - A category introduced by Morningstar that is assigned to a fund based on its underlying securities.

Morningstar Rating - A measure of a fund's risk-adjusted return compared to similar funds, calculated by Morningstar. Funds are awarded one to five stars, with the best performing funds receiving five stars and the worst performing funds receiving a single star.

Mortgaged-Backed Securities - A Mortgage-Backed Security (MBS) is asset-backed security that is secured by one or more mortgages.

MRO - The legal currency of Mauritania.

MSCI All Country World Index (net) - The MSCI All Country World Index (net) is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging countries. The index comprises 47 country indices, of which 23 are industrial and 24 are emerging market indices. The industrialized country indices include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the USA. The emerging market indices include: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, the Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand , Turkey and the United Arab Emirates. Chinese A shares are included from June 1, 2018 and are partially represented with 5% of their free float-adjusted market capitalization. Total Net Return Indices reinvest dividends net of withholding tax, with (international) indices using a tax rate that applies to non-resident institutional investors who do not benefit from double taxation treaties.

MSCI China Index (net) - The MSCI China Index (Net) is a free float-adjusted market capitalization weighted index designed to measure the stock market performance of Chinese securities that are easily accessible to non-resident investors. The index includes stocks that are issued by companies in the People's Republic of China ("PRC") and that are listed as Chinese B shares on the Shanghai Stock Exchange (in USD) or on the Shenzhen Stock Exchange (in HKD) or as Chinese H- Shares are listed on the Hong Kong Stock Exchange (in HKD) and other overseas exchanges. It also includes red chips and P chips that are not based in the PRC and listed on the Hong Kong Stock Exchange. Red Chips are companies that are directly or indirectly controlled by organizations or companies owned by the state, provinces, or municipalities of the PRC. P Chips are non-state owned, non-Chinese mainland companies that are traded in Hong Kong. US-listed Chinese stocks are also included in the index. Chinese A shares are included from June 1, 2018 and are partially represented with 5% of their free float-adjusted market capitalization. Total Net Return Indices reinvest dividends net of withholding tax, with (international) indices using a tax rate that applies to non-resident institutional investors who do not benefit from double taxation treaties.

MSCI EAFE index - This index is a free float-adjusted market capitalization index that measures the equity market performance of developed markets, with the exception of the United States and Canada. As of November 27, 2013, the MSCI EAFE Index was composed of the following 21 developed market indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.

MSCI Emerging Markets Index (net) - The MSCI Emerging Markets Index (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of emerging countries. The index comprises the following 24 emerging market indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, the Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and the United Arab Emirates. Chinese A shares are included from June 1, 2018 and are partially represented with 5% of their free float-adjusted market capitalization. Total Net Return Indices reinvest dividends net of withholding tax, with (international) indices using a tax rate that applies to non-resident institutional investors who do not benefit from double taxation treaties.

Multi-asset - An investment strategy that invests more than one type of asset class.

Multi-cap - Investment opportunities in stocks across multiple market caps.

MUR - The lawful currency of Mauritius.

MVR - The legal currency of the Maldives.

MW - An abbreviation for "market value".

MWK - The legal currency of Malawi.

MXN - The legal currency of Mexico.

MYR - The lawful currency of Malaysia.

MZN - The legal currency of Mozambique.

 

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NAD - The legal currency of Namibia.

Face value - The face value is the amount originally paid for a bond and the amount that will be repaid when due. Bonds are typically sold in multiples of $ 1,000.

Net exposure - The face value exposure to market fluctuations in an investment portfolio, expressed as its long positions (when securities are held) minus its short positions (when securities are borrowed and sold for later repurchase).

Net Asset Value per Share (NAV) - The current value of an individual investment fund share; also known as the share price. The Fund's NAV is determined daily by dividing the Fund's total assets after deducting its liabilities by the number of Shares in circulation. The NAV does not take into account the sales fee. The process of calculating the NAV is called pricing.

Net long exposure excluding forex - The amount of exposure, usually expressed as a percentage of the total assets of the Fund, that a Fund has through its long positions, excluding any additional currency exposure that may arise if those positions are denominated in foreign currencies. This can exceed 100% of the total assets of the Fund as long positions can be financed through leverage or through the possession of derivative instruments whose notional exposure is greater than the capital deposited as collateral for them.

Net short exposure excluding FX - The amount of exposure, usually expressed as a percentage of the Fund's total assets, that a Fund has through its short positions, excluding any additional foreign currency exposure that may arise when those positions are denominated in foreign currencies. This can exceed 100% of the total assets of the Fund as short positions are created by borrowing (instead of actually owning) securities or by owning derivative instruments whose notional exposure is greater than the capital held as collateral for them was deposited.

NGN - The lawful currency of Nigeria.

Not settled net positions - Reflects the trades of a strategy that are pending settlement.

Not protected - Describes an investment position that presents certain risks to a portfolio that can be hedged (e.g. interest rate or foreign currency risks) but have not been hedged. The term is mostly used to describe positions that have a foreign currency risk.

Non-governmental RMBS - United States home loan collateral that is not issued and marketed by any of the federal government mortgage lenders.

NOK - The legal currency of Nicaragua.

NAV (net asset value) - The net asset value of a portfolio.

NOK - The legal currency of Norway.

Non-Agency MBS / CMOs - A mortgage-backed security (MBS) that is not guaranteed by the US government or any other government sponsored agency.

Non-investment grade (without investment quality) - A security or asset, usually a bond or loan, that has been rated below BBB / Baa or has no rating at all by a nationally recognized statistical rating organization. These are sometimes referred to as speculative, high yield, or junk bonds or loans.

Listing - The stock exchange on which a security or investment fund is listed and traded.

NPR - The legal currency of Nepal.

NRSO - The abbreviation stands for Nationally Recognized Statistical Rating Organization.

NW (nominal value) - The total underlying asset value of an exposure that is built in whole or in part through derivatives, given the current spot price of the underlying assets. A large total asset exposure in the markets can be built through a relatively small allocation of cash collateral to hedge a derivative contract. The true extent of exposure is therefore reflected in this leveraged nominal value rather than in the value of the cash allocation

NZD - The lawful currency of New Zealand.

 

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OAS (bp) - The option-adjusted spread (OAS) is the difference in basis points ("bp") between the return on an asset and the return on a reference rate such as B. the risk-free cash index, with an adjustment to the value of the options embedded in this asset. For example, some bonds and loans give the issuer the right to “call” the security before its maturity (i.e. to repay the principal early to the investor)

UCITS - An abbreviation for “Undertakings for Collective Investment in Transferable Securities”, which is the regulatory framework of the European Commission for the creation of a harmonized Europe-wide system for the management and sale of mutual funds.

OMR - The lawful currency of Oman.

option - A financial derivative that is subscribed by one party and held by another. The contract gives the holder the right, but not the obligation, to buy a security or other financial asset at a pre-agreed price (the exercise price) during a specified period or on a specified date (the exercise date) (if it is a call Option) or sell (if it is a put option).

Option strategy - An investment strategy that uses buying and selling options.

OTC derivatives - An abbreviation for "over-the-counter derivatives", which are private contracts that are traded between two parties without going through an exchange or other intermediary.

 

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PAB - The lawful currency of Panama.

PEN - The legal currency of Peru.

PGK - The legal currency of Papua New Guinea.

PHP - The lawful currency of the Philippines.

PKR - The legal currency of Pakistan.

PLN - The legal currency of Poland.

Portfolio - A collection of investments held by an organization or an individual and managed as a whole with specific investment objectives.

Portfolio allocation - The amount of assets in a portfolio that is specifically designed for a particular type of investment.

Portfolio positions - The investments contained in a portfolio.

Portfolio price - The weighted average of the market prices of the securities held in a portfolio. Typically used for bond portfolios.

Portfolio ending active share - Measures the proportion of stocks in a manager's portfolio that deviates from the benchmark index.

Portfolio return - The expected return on an investment portfolio, expressed as an annual percentage.

Portfolio manager - The person or company responsible for making investment decisions about the Portfolio in order to achieve the Portfolio's specific investment objective.

Price / funds from business activity - A valuation figure that is usually used by real estate investment companies (REIT), which compares the market price of the REIT with its cash flow from business activities and which is calculated by adding the loss in value and depreciation to the income and then subtracting the capital gains.

Price volatility - The movement in the price of an asset or security, usually expressed as its standard deviation.

Put option - An options contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time period.

PYG - The legal currency of Paraguay.

 

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QAR - The legal currency of Qatar.

Quasi-government bond - Quasi-government bond issuers include public corporations, local government agencies, and 100% state-owned companies, as well as companies in which states hold more than 50% of the voting rights.

Withholding tax - Means the tax that will be deducted before the dividend / interest is paid.

 

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R² (R-Squared) - A statistical measure of the percentage of fluctuations in an investment portfolio that can be explained by fluctuations in the benchmark. A high R² value (between 85 and 100) indicates that the portfolio has performed in line with the benchmark in the past.

Rates - Interest-bearing securities issued by government entities. Securities that involve additional risks for the investor, for example foreign currency risks, must be hedged against these additional risks so that they can be referred to as "rates".

REIT