Glossary

The most important terms from the world of funds - arranged alphabetically. Click one of the letters to display the relevant terms.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Income

Possibility of distributing interest rates and dividends twice a year.

Index

The index is the measurement for the security performance of a certain market. It depicts the performance of all or the most important securities. So for example the ATZ contains the 20 most liquid equities on the Vienna Stock Exchange. The most important international equity indices: Dow Jones, Nasdaq, DAX, Nikkei Index, MSCI and S&P family.

Industry Fund

Investment fund that invests primarily or exclusively in equities for a particular industry (e.g. energy suppliers).

Institutional Investors

Institutional investors are participants in the market that have large-scale involvement in the money and capital markets (for example: insurance companies, investment trusts, etc.).

Interest Rate Curve

The interest rate curve reflects the applicable interest rates for various timeframes. Short term interest rates (1 year) are normally lower than long term ones (10 years). The interest rate curve can be steep or flat; in exceptional circumstances it can be inverted, i.e. the long term interest rates are lower than the short term ones.

Interest Rate Spread

(See: Spread)

Investment Certificate

A security that embodies a co-ownership equity of the assets in an investment fund.

Investment Company

A company that invests and manages customers' money in investment funds. These companies are also called investment trusts.

Investmentfondsgesetz (InvFG = Austrian Investment Trust Law)

The Austrian Investment Fund Law is a federal law that regulates the legal basis between investors and investment trusts. It is characterised by strong provisions that protect investors. From 1/3/1998 there are new provisions concerning: funds of funds, trust funds, pension investment funds, cumulative funds. At the heart of the extremely strict Austrian law are precise regulations on investing in securities and detailed provisions on auditing and publishing relevant data (management and mid-year reports).

Investment Fund

Refers to a special fund made up of securities (a fund that is subject to certain statutory requirements and offers the investor additional security), also called securities fund. This special fund is divided into equal shares (fund equities). The shareholders are co-owners of the total fund assets. Investment funds are managed by investment trusts in line with the provisions of the Investment Fund Law.

Investment Funds

See Investment Funds.

Investment Matrix

A table containing the percentage distribution of the capital to be invested. It is divided into equities, bonds, liquidity, currencies, countries and industries.

Investment Period

The period during which you can not use your private capital or part of it, for other purposes. It is useful to select a long-term investment period - with a minimum of three years.

Investment Strategy

See Asset Allocation

Investment Trust

Investment trusts (also: capital investment companies) manage investment funds.

IREA Figures

The IREA (Investment Fund Risk Return Analysis) figures are figures for average return and average value fluctuation (= risk). These figures are calculated monthly by the OeKB (Austrian Control Bank) and are used to compare various funds within a single return/risk category with each other.

Issue Price

An investment fund can be bought at this price. It is made up of the net asset value plus the subscription fee.