For accumulated funds, the generated income is reinvested, meaning that it is permanently held in fund assets. This increases unit value.
Accumulated deemed distribution income.
This is the fee for the advisory services of the portfolio manager.
Specified as a percentage, indicates all costs incurred in connection with fund investment costs , excluding the initial sales charge . The All-In-Fee particularly combines management and custodian fees.
An index (e.g. DAX®, the German stock index) that is used for a comparative analysis of the performance of a fund or fund portfolio.
Beta is the result of a risk comparison between the fund and the benchmark index. A figure greater than 1.00 indicates that the fund is likely to perform better than average when prices are rising and less than average when markets are falling. A beta of less than 1.00 indicates the opposite case.
Bonds are fixed-income securities that help issuers (e.g. federal government, states, municipalities, financial institutions and companies) to finance themselves on the capital market.
An internationally recognised standard method for calculating performance as defined by the German Investment Funds Association (BVI). The value of an investment is the percentage change between the assets invested at the beginning of the investment period and their value at the end of the investment period.
Derivative financial instruments that allow investors to share in the performance of other investments (e.g. securities, equity baskets, indices or any other financial product). Certificates are subject to price risk as well as issuer risk.
The correlation indicates what percentage of a fund’s movement can be explained by movements in the benchmark index. A perfect correlation is expressed by the number 1.00, and a completely negative correlation by the number –1.00. The further the number is below 1, the more independent the income of the fund is from the benchmark. The correlation is also used to determine the significance of beta: the higher the correlation, the more significant the beta because it reveals to what extent a higher or lower risk index is due to active fund management or market development.
The credit rating describes the creditworthiness and solvency of a debtor (issuer) and is considered a benchmark for the security of a bond.
The most important German stock index, consisting of the 30 largest German companies in terms of order book volume and market capitalisation.
Financial instruments whose price is governed by fluctuations in price or price expectations of other investments such as shares, bonds and commodities. Owing to the way derivatives are constructed, their fluctuations are more pronounced than those of the underlying asset. They can therefore be used both to hedge against losses and to speculate on price gains, for instance on stocks.
Distribution funds pay out the generated income to investors.
Excess liquidity is a positive or negative deviation from the real money supply (see ‘Monetary growth’). Excess liquidity also refers to liquidity that is not needed directly by the real economy and is thus available for investment purposes on capital markets.
Futures are standardised forward contracts on a particular good. You agree with the purchaser to supply or sell a certain amount of the underlying asset at a specific point in the future at a price that is established when the contract is made. The seller is subject to the same obligations from the other side.
A basic interest rate for investors that is determined arithmetically. Only once the hurdle rate has been exceeded does the asset management team receive a share of the income.
The high water mark refers to the level of realised profit that must be exceeded before the asset management team is entitled to an additional share of the income generated by the successful performance of a mutual fund or asset management mandate.
Indicative share price
The calculated value of a fund’s assets, divided by the total number of shares issued at a specific date.
The investment fee is payable once for each deposit and is deducted from the investment amount, thus reducing the amount available for investment.
Indicates a security , which has a minimum rating ( rating ) from BBB ( Standard & Poors ), Baa ( Moody's ) or higher.
A premium or supplement that may be required in addition to the purchase price for certain types of transaction. The premium is based on the face value.
Issuers are institutions that directly or indirectly issue securities or similar instruments on money markets or capital markets for the purpose of raising capital.
Capital Management Company (under German law)
Large-caps are listed companies with a high market value. This term usually refers to shares in large, international companies that are generally well known and respected with a robust balance sheet and high creditworthiness; they are characterised by asset strength and profitability.
This is the fee charged for managing a fund portfolio.
The maximum accumulated loss within the period under consideration if an investor has made the investment at the worst possible time (maximum price) and sold at the worst possible time (lowest price). At DJE, this value is based on the period of one year.
Mid caps are listed companies with a medium-high market value, such as those in the MDAX index in Germany.
Money supply refers to the entire stock of money in an economy that is not held in banks (private households, businesses, state treasury and abroad). The money supply can be increased by creating money (monetary growth) or reduced by money destruction.
MSCI World EUR
A share index that reflects the shares of 23 industrialised countries worldwide, calculated in euros.
Net asset value
The net asset value is worked out by the depositary bank. It is calculated from the sum of all evaluated assets less all liabilities. The net asset value of a share equates to the fund’s net assets divided by the number of shares in circulation. The net asset value per share of an investment fund corresponds to the redemption price, unless a redemption fee is charged.
This is the extra income that was achieved in comparison with the benchmark index, an alternative investment or a defined target.
The risk class (RC) expresses an assessment of an investor’s risk appetite. Risk appetite is divided into five categories, rated from 1 to 5. Securities with a higher risk class carry a greater risk of loss. The lowest risk of loss is covered by risk class 1, whereas the highest risk of loss is covered by risk class 5.
Short-term risk due to low price volatility. A loss of assets is unlikely in the medium and long term.
A low risk is possible due to fluctuations of share prices and interest rates. There is also a small credit risk for fixed-income securities (investment grade). Market risks concerning foreign currencies play a minor role.
Higher risks due to fluctuations of share prices, interest rates and currency exchange rates. In addition, there is a higher credit risk for fixed-income securities (mixed high-yield bonds). Basically, losses are possible due to market fluctuations.
Above-average risk due to fluctuations of share prices, interest rates and currency exchange rates. Credit risk is also higher than average for fixed-income securities (all types of bonds are possible). Greater price fluctuations are inevitable.
The highest level of risk due to fluctuations, especially with respect to share prices and foreign exchange rates. Higher-than-average volatility is consciously accepted in order to act on opportunities to realise a profit. Significant losses are possible.
The rolling performance figure depicts performance results on a periodic basis and updates existing results using the latest fund prices.
The essential concept here is to facilitate a comparison of the return and risk of different investments using a particular ratio. The Sharpe ratio describes to what extent the return of an investment outperforms the risk-free interest rate (at DJE we use the one-month EURIBOR rate) as well as the standard deviation (volatility) underlying this return. The following rule of thumb applies: the higher the Sharpe ratio, the better the investment.
Small caps is the term for smaller listed companies with low equity.
The standard deviation (volatility) is the most widely used measure of risk in the world of investment. It is a mathematical quantity that is used to gauge the risk of an investment. It provides a figure for the degree of fluctuation of share prices within a specific period (this period is one year at DJE). A higher standard deviation indicates that investing in a certain fund presents a greater level of risk but also offers more opportunities.
Individual investment funds included in the fund assets of other investment funds (e.g. funds of funds, equity funds).
The total expense ratio (TER) is a figure that provides information about the annual costs associated with an investment fund in addition to the issue surcharge.
This is a measure of the excess return of a fund compared to a risk-free form of investment and the resulting difference divided by the sensitivity of the fund price to market fluctuations (the beta). It therefore expresses the additional income per unit of risk compared to the risk-free investment.
The tracking error is the name given to an indicator of the similarity between the fund performance and the benchmark index. The lower the tracking error is, the closer the fund manager adheres to an index such as the MSCI World Index. Index funds have a tracking error that is close to zero. Funds that are actively managed, in contrast, have a relatively high tracking error.
Value at risk (VaR)
The question at stake here is what the maximum expected loss may be under normal market conditions. The value at risk can be described as the probable change in the present value of a portfolio. The calculation is performed for a specific period and a defined level of probability. For example, a 99% confidence interval results in a residual risk of 1% that the loss limit (value at risk) will be exceeded by the actual losses for a certain period (20 days at DJE).
Management Company (e.g. under Austrian or Luxembourg law)