Glossary of Terms
A benchmark is a tool used to monitor a fund's performance. For instance, a Swiss equity fund will be compared to the Swiss Market Index in order to check whether the fund has over or underperformed the market.
A measure of an investment's relative sensitivity. For instance, a fund with a beta coefficient of 1.2 is likely to be more volatile, varying by 12% when the market fluctuates by 10%. A fund with a beta coefficient of 1.0 will move exactly like the market.
Shares of top-quality companies, with a track record of earnings growth, solid finances, efficient management, and internationally and nationally competitive.
Debt instrument issued by a government (sovereign bond), company (corporate bond) or public body entitling the holder to receive an annual payment of fixed interest (the coupon) up to the date of maturity.
Bond which entitles the holder to convert it into another security (such as a share) within a given time and at a given price.
Detachable segment of a security which entitles the holder to interest (bonds) or a dividend (shares).
Corp responsible for the safekeeping of a fund's assets. It is also responsible for checking that the fund management company complies with the law and the fund's own regulations.
Term used to describe shares whose business prospects are closely influenced by economic and business cycles (e.g. the car industry).
Term used to describe shares that are considered to be less sensitive to swings in economic cycles (e.g. food processing, public utilities).
A proportion of earnings that is paid to the owner of a security or a unit in a fund. All Comming Tci Investments Funds, barring those established under Swiss law and Comming Tci Investments Fixed Income Fund Unit B, are funds in which dividends are automatically reinvested.
Average period left before a bond matures, with account being taken of all payments (interest and principal). A measure of the sensitivity of a fixed-income investment. The impact of movements in interest rates on the performance of a bond mutual fund is described by the average duration of that particular bond fund.
The fund manager is responsible for managing the fund's investments in keeping with the investment policy that has been laid down for the relevant fund.
The company that is responsible for monitoring risk, ensuring quality control and undertaking the marketing for investment funds.
Portfolio of securities comprising most representative companies in a specific market and used to approximate its evolution.
Term used to describe a market in which a security can be traded in large enough volumes without the price of the security being unduly distorted.
Assets that can be quickly converted into cash.
Payment made to the fund's management company as remuneration for its management of the mutual fund. It is expressed as a percentage of the fund's assets.
Date on which the principal value of the bond or debt instrument becomes due and payable in full to the holder.
The value of a unit in a fund calculated by dividing the fund's net assets by the number of units in circulation.
Percentage change in the value of an investment during a given period, with due account being taken of any income (dividend) that is reinvested.
Currency used as the unit of account for the fund.
The short-term savings rate on which the return can be earned without investors running a risk.
A unit of equity ownership in a company or investment fund.
The Sharpe ratio compares the over performance of a given investment with the risk being incurred (volatility expressed as the standard deviation). The over performance is defined as the difference between an investment's performance and the risk-free rate (in general, short-term interest rates). A high Sharpe ratio indicates a more attractive risk/reward trade-off.
In the case of investments, this usually refers to assets with a maturity of up to one year.
Ratio comparing the total fees incurred in running the fund with the average value of that fund's assets in a given period.
Collective assets held in an investment fund divided into units managed by a fund management company on behalf of investors known as unit-holders.
Unit of ownership representing a fraction of the assets of an undertaking for collective investment.
Variability of movements in the price of a security.
Internal rate of return expressed as a percentage.