The capital market where investors buy new securities directly from the issuer or an intermediary.
An approach used by shareholders to actively engage with companies in which they are invested.
‘Active funds’ are managed by managers who attempt to surpass an index over time, while ‘passive funds’ track an index.
Pools of securitised residential mortgage loans issued and guaranteed by US government agencies.
A measure of an investment portfolio’s performance against a certain benchmark, usually a stock market index.
A financial product that pays a guaranteed income stream in the future for a specified duration or the remainder of the investor's life out of invested funds. An annuity is usually used for retirement purposes.
Securities derived from a pool of underlying assets. To create asset-backed securities, financial institutions pool multiple loans into a single security that is then sold to investors.
A group of financial instruments which have similar financial characteristics and behave similarly in the marketplace. Examples include fixed income, equity and multi-asset.
Determined by comparing the percentage of a holding’s value within a portfolio to other holdings within the same portfolio.
The average total value of portfolio securities, minus any liabilities, over a period of time.
The balance sheet shows the financial status of an organisation at a particular instant in time – normally at the end of a reporting period such as a financial year, half-year or quarter.
A trust company within a bank, acting as an agent, fiduciary, or trustee on behalf of a third party.
An investment strategy that aims to find a balance between risk and reward by investing in high-risk and low-risk assets.
Refers to the currency in which the fund's net asset value (NAV) is calculated.
Otherwise known as "bips", a unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. One basis point is equivalent to 0.01% (1/100th of a percent) or 0.0001 in decimal form.
A financial market in which prices are falling, especially over a long period of time.
19 October 1987, when stock markets around the world crashed, shedding huge value in a very short time.
Used to identify global exchanges, these are used together with Market Identifier Codes (MICs) to map where securities are being traded.
Common stock of a nationally known company that has a long record of profit growth and dividend payment and a reputation for quality management, products and services.
A debt instrument, essentially a loan, issued by governments (a sovereign bond) or corporates (a corporate bond) and financed by investors. The bondholder receives interest payments, known as a coupon, and the principal of the bond when it is due.
An investment approach that focuses on the analysis of individual securities before subsequently considering economic and market cycles.
The difference between yields on nominal and inflation-linked bonds.
A measure of profitability based on the revenue required to cover all expenses. A declining breakeven ratio means companies can achieve profitability at a faster rate, and vice versa.
A financial market in which prices are increasing, especially over a long period of time.
When a company purchases its own shares on the stock market.
Refers to financial assets or the financial value of assets.
A rise in the value of an asset based on a rise in market price. This occurs when the asset invested commands a higher price in the market than an investor originally paid for the asset. The capital appreciation portion of the investment includes all of the market value exceeding the original investment or cost basis.
The money a company spends to acquire, upgrade and maintain fixed assets such as equipment, property and buildings.
A subsidiary of Capital Group.
The difference between an asset’s adjusted purchase price and selling price when the difference is positive.
Measures the assets required to generate a certain level of income, determined by a business’ total assets divided by its total sales.
Securities that are intended for short-term investing. Normally, they have solid credit quality and are highly liquid. They are considered equivalent to cash because they can be converted to actual cash quickly.
The charges a fund investor pays are used to pay the costs of running the fund, including the costs of marketing and distributing it. These charges reduce the potential growth of your investment. In addition to the Total Expense Ratio (TER), entry charges may apply according to provisions described in the Prospectus. Charges are likely to change over time and do not constitute a commitment from the management company.
A network used by approved financial institutions to access and trade Chinese onshore bonds.
Securities listed on a Mainland Chinese exchange and priced in Chinese renminbi.
In general, commodities are raw materials to be processed for goods and products, they can be bought and sold in markets or by using derivatives such as options or futures.
The rise and fall of the prices of raw materials over a long-term time horizon, for instance, during 2000-2014, when prices of commodities went through a period of inflation and deflation.
Units of ownership of a public corporation. Owners typically are entitled to vote on the selection of directors and other important matters as well as to receive dividends on their holdings.
A nine-digit number uniquely assigned to most financial instruments, including stocks of all registered US and Canadian companies, commercial paper and US government and municipal bonds.
A single group of discretionary portfolios that collectively represent a particular investment strategy or objective.
The average annual growth rate of an investment over a specified period of time longer than one year, including the effect of compounding.
Typically, it’s used to measure and compare investment results or to project expected future returns, including the interest earned on interest.
The interest on your invested sum (the principal) plus interest.
The potential for financial loss due to an overexposure to a single counterparty, sector or geographical region.
A clause in a contract providing for increases or decreases in inflation if certain conditions change while the contract is in effect.
Securities, usually bonds or preferred shares, that can be converted into common stock. Convertibles are most often associated with convertible bonds, which allow bondholders to convert their creditor position to that of an equity holder at an agreed-upon price.
A style of active management in which portfolio managers construct portfolios based on an area of expertise, with little or no focus on market indices. High-conviction strategies are typically characterized by a relatively low number of holdings, held for longer periods, and managers sticking to their investment style through the market cycle.
The system of rules, practices and processes by which a company is directed and controlled.
A measurement of the strength of a relationship between two variables that move in tandem.
A curve that shows the relationship between production output and the cost involved in producing the output.
The difference between the yield (return) of two different debt instruments with the same maturity but different credit ratings.
A cycle involving the access to credit by borrowers.
Independent ratings assigned by credit agencies, from AAA/Aaa (highest) to D (lowest), that measure an issuer's ability to repay its debt.
The sum of all income over a specified period.
The accumulated gain or loss of a stock (excluding dividends) over time, independent of the amount of time involved.
Refers to stocks, companies or industries which are cyclical and whose underlying business generally follows the economic cycle of expansion and recession.
An evaluation of a company's financial leverage by comparing its total liabilities to its shareholder equity. It reflects the ability of shareholder equity to cover all outstanding debts in the event of a business downturn.
A bond is considered to be in default if the issuer misses a coupon interest payment or cannot repay the principal amount at maturity. The default rate measures the percentage of issuers in each fixed income asset class that failed to make either of these payments in the prior 12 months.
A decrease in the prices of goods and services in an economy.
A defensive stock is one in which a company’s earnings and revenues have the potential to hold up fairly well during a recession.
A conservative method of portfolio allocation and management aimed at minimising the risk of losing the principal.
Refers to the degree to which demand changes when there is a change in another economic factor, such as price or income.
A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset (like a security) or set of assets (like an index). Common underlying instruments include bonds, commodities, currencies, interest rates, market indexes, and stocks.
Where markets no longer move in tandem.
An economy with relatively high level of economic growth, standard of living, income or GDP per capita and infrastructure.
An economy which functions primarily by means of digital technology, especially electronic transactions made using the Internet.
A form of investment management in which buy and sell decisions are made by a portfolio manager.
The disbursement of assets from a fund to investors. An accumulating policy means any income generated from a fund is automatically invested back into it, whereas a distributing policy totally or partially distributes the income to the investor. The frequency and amount distributed may vary depending on the fund.
A measure of cash flow paid by a fund to reflect the distribution amount to be expected in the next 12 months, as a percentage of the net asset value (NAV) of the fund at a specific point of time.
The range of potential outcomes based on historical volatility or returns.
A sum of money paid regularly by a company to its shareholders out of its profits (or reserves).
Reinvesting dividend payments from stocks back into an investment portfolio rather than spending them.
Dividend yield – Dividends are a payment made by a company to its shareholders. The dividend yield is the ratio of dividends paid over the last 12 months to the company’s stock price.
Annualised dividend yield is determined by the most recent dividend payment when, in the last 12 months:
Dovish central bank policy generally involves lowering interest rates or keeping them low, because loose monetary policy increases the money supply.
The period of time after a market top during which a security’s price trends downwards.
Measures the underperformance of an investment compared to an index during down markets.
An investment position that seeks to reduce the frequency and/or magnitude of capital losses resulting from the decline of a stock or a fall in the overall market.
An estimation of a security's potential loss in value if the market causes a decline in that security's price. Depending on the measure used, downside risk explains a worst-case scenario for an investment and estimates how much the investor stands to lose.
A measure of the approximate sensitivity of a bond portfolio's value to interest rate changes.
Effective duration provides a measure of interest-rate sensitivity. The longer duration is, the more sensitive to shifts in interest rates.
An emerging market economy is the economy of a developing nation that is becoming more engaged with global markets as it grows.
An investment fund established for the purpose of supporting a charitable foundation or non-profit organisation.
Shares of ownership in a company.
A type of investment fund that usually tracks – but, if actively managed, can deviate from – a specific index, and which can be traded on a stock exchange.
In investment terms, exposure refers to the amount of capital invested in a particular asset, industry or sector within a portfolio, and is usually expressed as a percentage.
A bond that has been downgraded from investment grade to junk bond status.
A privately held company that manages the financial assets of one or a small number of ultra-high-net-worth families.
The target rate reflects the upper bound of the Federal Open Markets Committee’s (FOMC) target range for overnight lending among US banks.
A fund that pools investors' money which is then fed into a master fund.
Refers to using borrowed capital in investments to increase a company's asset base and amplify potential returns.
Refers to efforts to make financial products and services accessible and affordable to all individuals and businesses.
Harsh economic policies implemented by a government to reduce budget deficit. Examples include tax increases and government spending cuts.
A debt instrument issued by a government, corporate or other entity.
A non-profit organisation or charitable trust that provides funding and support to other charitable organisations via grants.
A ratio that indicates how much cash is available to a company after covering its operating and capital expenses, reflecting its capital intensity. It is calculated by dividing free cash flow by cash flow from operations.
A ratio that indicates how much cash is available to a company after covering its operating and capital expenses, an indication of its capital intensity. Defined here as free cash flow divided by cash flow from operations.
Countries with investable stock markets that are less established than those in the emerging markets.
A financial vehicle made up of a pool of money collected from many investors to invest in securities such as stocks and bonds.
A measure of a fund’s results, it is calculated by dividing total earned income (after taxes and before management fees and expenses) by average net assets over the past 12 months.
An investment vehicle that invests in other funds, rather than investing directly in stocks, bonds or other securities. The FOF strategy aims to achieve broad diversification and minimal risk.
An investment professional responsible for evaluating/setting portfolio strategies for firms’ fund platforms.
A method of evaluating a security in an attempt to measure its intrinsic value, by examining related economic, financial and other qualitative and quantitative factors.
A third party that sells or distributes mutual funds to investors on behalf of fund management companies. They generally have no direct relationship to the funds and may come with additional charges.
Financial contracts under which an agreed price for an asset must be transacted at a certain time regardless of the asset’s current market value.
A portfolio that invests across both global equity and global fixed income assets. In general, it maintains a 60% allocation to equities and a 40% allocation to fixed income.
When one company purchases another, the intangible (non-physical) assets associated with that transaction are considered goodwill.
The system of rules, practices and processes by which a company is directed and controlled.
The worst economic downturn in the history of the industrialised world to date, the Great Depression lasted from 1929 to 1939.
A type of bond that helps companies and governments raise funds for environmentally-friendly projects.
Measures the monetary value of final goods and services – that is, those that are bought by the final user – produced in a country in a given period of time (for example over a quarter or a year). Real GDP takes into account inflation.
The amount of money a company makes after the cost of producing the goods or services, expressed as a percentage.
The return on an investment before/after the deduction of taxes and expenses, expressed in percentage terms. This differs from the yield of each share class.
The amount of money a company makes after deducting the costs from making and selling its products and services.
Equity funds focused on long-term capital appreciation.
Equity funds focused on generating long-term returns from a combination of capital appreciation and dividend income.
Typically companies that aim to increase their revenue and earnings at a faster rate than the market average.
A strategy focused on increasing an investor's capital by investing in companies or sectors that are currently in a growth phase and expected to continue growing.
Generally natural resources mined or extracted from the earth, including ore, petroleum products and metals.
Refers to money issued by a nation that is seen as politically and economically stable. Hard currencies are widely accepted around the world as a form of payment for goods and services and may be preferred over the domestic (local) currency.
Hawkish economic policy is generally when a central bank uses interest rate rises in an attempt to curb inflation.
A method of reducing unnecessary or unintended risk, usually regarding currency transactions.
May offer a higher risk, higher potential return profile.
May offer a lower risk, lower potential return profile.
A high-yield bond is one with a lower credit rating than an investment grade bond. High-yield bonds typically offer a higher rate of interest because of a greater risk of default.
Companies with outstanding quality characteristics, which may include low debt, more stable earnings, stronger balance sheets and higher margins to outperform over a long time horizon.
An investment strategy that aims to achieve a measurable and beneficial social or environmental impact alongside a financial return on investment.
An index represents a particular market or segment of it, and is a tool used to describe the market and compare returns on specific investments.
An investment bank that provides strategic and financial advice to clients primarily including corporations, financial sponsors, and governments.
The rise in the prices of goods and services, as happens when spending increases relative to the supply of goods on the market – in other words, too much money chasing too few goods.
A measure of a portfolio manager’s added value, calculated by dividing the excess return by the tracking error.
Assets that do not have a physical shape or form. Other examples of intangible assets include brand and intellectual property.
A code that uniquely identifies a specific securities issue.
A single business or group of businesses in which a fund, such as a venture capital firm or private equity firm, has directly invested.
A professional who makes decisions about investing money on behalf of their clients.
May include portfolio managers, investment analysts, economists and traders.
In investing, style refers to the investment approach or objective that an asset manager uses with the ultimate goal of generating returns.
The overarching approach a portfolio manager follows when assembling a portfolio of asset. Investment style can be divided into various categories and tends to be based on parameters such as growth vs. value orientation, risk preference and/or market cap.
An investment vehicle is any financial instrument or product into which an investor can invest and ideally grow their money. Examples include stocks, bonds, mutual funds.
A legal entity that develops, registers and sells securities to finance its operations. Issuers may be corporations, investment trusts, or governments.
Refers to the economic problems Japan has faced since the 1990s, characterised by chronically low economic growth and weak inflation.
When an investment management company becomes heavily reliant on a single person or a few key individuals (including ‘star managers’).
Document that provides key information about investment funds.
Generally, laddering is used to describe different investing strategies that aim to produce steady cash flow by deliberately planning investments, creating an influx of liquidity at a predetermined time, and/or matching a desired risk profile.
A publicly traded company with a market value between US$10 billion and US$200 billion.
Best-in-class companies in sustainable sectors with high ESG ratings.
Leverage is the amount of debt a company has in its mix of debt and equity (its capital structure). A company with more debt than is average for its industry is considered highly leveraged.
Describes the degree to which an asset or security can be quickly converted into cash without a significant concession in price.
A currency that can be spent in a particular geographical locality at participating organisations.
Stocks offering low earnings in the near-term but which are expected to generate most of their cashflows in the distant future, typically interest rate sensitive as the value of future cashflows is determined by the interest rate.
The study of trends that pertain to the whole economy, rather than to the different elements (companies, industries, consumers, etc.) that make up the economy.
Charges collected by the management company to compensate investment managers for their services, as well as distributors and other intermediaries or for related services. Entry charges, as described in the fund prospectus, may also apply.
Value of a company as determined by the market price of its outstanding common stocks.
Trends or patterns that may exist in a given market environment.
The date when the principal of a fixed income security is due to be repaid.
The average of the combined projected earnings based on estimates from professional analysts that cover the stock.
A publicly traded company with a market value between US$2 billion and US$10 billion.
European Union (EU) legislation to regulate financial markets in the bloc and better protect investors. Its aim is to standardize practices across the EU and restore confidence in the industry, especially after the 2008 financial crisis.
Refers to an economic moat, meaning a business’s ability to maintain advantages over its competitors in order to protect its long-term profits and market share from competing firms.
A set of tools used by a central bank to manage the country’s money supply and promote economic growth. In an economic slowdown, a central bank may adopt an accommodative (expansionary) policy, also known as quantitative easing, to boost the economy by measures such as lowering interest rate and purchasing securities. When inflation is high, a central bank may adopt a contractionary policy, also known as quantitative tightening, by increasing interest rate to slow growth and decrease inflation.
The market for trading short-term debt investments.
Funds aiming to provide current and/or growing income by investing in a flexible mix of equities and fixed income securities.
A way of assessing the value of a company by comparing it to peers, usually by a ratio. This helps to quantify a company's health and find investment opportunities.
These pool the capital of individual investors to invest in a portfolio of equities, bonds and other assets.
Where a change in a particular input has the impact of causing a greater change in output.
The world’s stocks of natural resources, which include geology, soil, air, water and all living things.
Moving production and other outsourced operations closer to a company’s registered country or region.
Describes an index which reinvests dividends from its constituent corporate securities after the deduction of withholding taxes.
Typically measure the amount of money that a bank is earning in interest on loans versus what it is paying in interest on deposits.
The amount spent by a company or an economy on capital assets, or gross investment, less depreciation. Net investment helps give a sense of how much money a company is spending on capital items used for operations, such as property, plants, equipment, and software.
Refers to achieving a balance between the amount of greenhouse gas emissions produced and those removed from the atmosphere in order to reduce global warming.
Refers to the actual dollar amount of money that a company expects to take in and pay out, without any adjustment for inflation.
A process used in investing to remove from consideration certain types of companies, sectors or practices based on specific criteria, such as ethical or social reasons.
A type of UK-based investment fund that is structured as a company in order to invest in stocks and other securities.
A type of investment fund that issues unlimited shares.
The operating currency of a mutual fund refers to the currency in which the fund’s net asset value (NAV) is calculated.
A measure of how much profit a company’s sales can make after variable costs of production.
Financial instruments that are derivatives based on the value of underlying securities such as stocks. An options contract offers the buyer the opportunity to buy or sell - depending on the type of contract they hold - the underlying asset. Unlike futures, the holder is not required to buy or sell the asset if they choose.
The measurement of the spread of a fixed income security rate and the risk-free rate of return, which is adjusted to take into account an embedded option.
A company whose goods are used as components in the products of another company, which then sells the finished item to users.
Securities traded directly between parties via a dealer network, instead of using a centralised exchange.
Countries that are less developed than the semi-periphery and core countries.
A representation of the economic relationship between the rate of change in unemployment, which affects the rate of change in wages as a result of inflation.
An approach where companies are included in a portfolio according to defined criteria.
Measures the sensitivity of demand for a good relative to a change in its price. A good is elastic when a change in price leads to substantial change in demand. A good is inelastic when the demand remains constant or has little change when price changes.
The ratio for valuing a company that measures its current share price relative to its earnings per share (EPS).
Packaged retail investment and insurance-based products make up a broad category of financial assets provided to consumers in the European Union.
The capital market where investors buy new securities directly from the issuer or an intermediary.
In investment terms, this is the original sum of money used to buy an asset.
A portfolio manager accountable for ensuring the overall portfolio is achieving its objective.
Investments in private, non-publicly traded debt instruments.
A fund that normally invests in private, non-publicly traded companies and businesses.
A profitability ratio that measures the degree to which a company makes money by calculating the percentage of sales that has turned into profits.
Refers to government policies that protect domestic industries against foreign competition by means of tariffs, subsidies, import quotas, or other restrictions or handicaps placed on the imports of foreign competitors. They can also be implemented for safety or quality concerns.
A company owning and typically operating real estate that generates income.
Income after factoring in inflation.
A return to inflation (an overall increase in prices), from a state of deflation (an overall decrease in prices).
An individual financial advisor or a company that provides its clients with financial advice.
The possibility that cash flows received from an investment will earn less when reinvested in new or existing security.
A measure of the outperformance (or underperformance) of a portfolio relative to the associated benchmark.
Research analysts conduct in depth, proprietary research on companies, they then make recommendations to portfolio managers and are also allocated part of the fund assets to manage.
Involves making well-reasoned decisions about the products we buy, by taking into account environmental impacts at all stages of the product life cycle.
An investment approach that explicitly acknowledges the relevance to the investor of environmental, social and governance factors.
A ratio that measures how well a company uses its capital to generate profits.
A central bank policy tool to help regulate monetary supply.
Bonds rated as a junk bond but which could become investment grade because of improvements in the issuing company's credit quality.
The degree of uncertainty and/or potential financial loss inherent in an investment decision. In general, as investment risks rise, investors seek higher returns to compensate themselves for taking such risks.
Any asset that carries a degree of risk. Risk asset generally refers to assets that have a significant degree of price volatility, such as equities, commodities, high-yield bonds, real estate, and currencies.
The risk indicator is a guide to the level of risk of this product compared to other products.
Generally refers to markets with the potential for significant price volatility, such as equities, high-yield bonds, commodities, options, derivatives, and currencies.
A concept in investment management that potential return rises with increased risk, and vice versa.
Money movement from one type of investment to another as investors anticipate the movement of the economic cycle.
Scope 1 are those direct emissions that are owned or controlled by a company.
The capital market where previously issued securities, such as stocks and bonds, are traded among investors.
Occurs when there is a long-lasting and essential shift in an industry or sector leading to substantial growth.
A secular tailwind refers to economic trends that unfold over long time horizons that help encourage market growth, in contrast to cyclical factors that limit growth.
Financial securities that are created by securitising individual loans (debt).
A mutually interchangeable, negotiable financial instrument that holds some type of monetary value. It represents an ownership in a publicly-traded corporation — via stock; a creditor relationship with a governmental body or a corporation — via bond; or rights to ownership via an option.
Segregated bank accounts are accounts that hold the funds of a customer separated from the funds of a FX or brokerage company in the interests of the customer's security. They are designed to achieve specific client investment objectives in an effective and transparent manner.
A Société d'investissement à Capital Variable, or SICAV, is a publicly-traded open-end investment fund structure offered in Europe. SICAV funds are similar to open-end mutual funds in the US. Shares in the fund are bought and sold based on the fund's current net asset value.
A publicly traded company with a market value between US$250 million and US$2 billion.
Any type of bond instrument where the proceeds are to be exclusively used to finance or re-finance, in part or in full, a new and/or existing eligible social project.
A software delivering and licensing model where users subscribe to and access the software online, rather than installing it on individual computers.
Refers to investors that are either sovereign States themselves or are intrinsically linked to a sovereign State, the most common types of which are State-owned enterprises (SOEs) and sovereign wealth funds (SWFs).
The price quoted for immediate settlement on a commodity, a security or a currency. The spot rate, also called 'spot price', is based on the value of an asset at the moment of the quote.
Measures how much the returns from an investment can vary from its average return and is calculated after fees.
An individual portfolio manager running a portfolio by themselves.
Companies with high return on invested capital, a high quality franchise and recurring revenues built on intangible assets, and which possess pricing power and low capital intensity.
A seven-character code used to identify unit trusts, investment trusts, insurance-linked securities, and domestic and foreign stocks, trading on the London Stock Exchange and various smaller UK- based exchanges.
The act of loaning a stock, derivative or other security to an investor or firm.
A strategy of investing across the fixed income spectrum, from corporate bonds to high-yield bonds. With a strategic bond strategy, exposure to different bond types can be increased or decreased, depending on factors including the economic environment.
In investing, structural themes occur as one-off shifts that change an existing economic paradigm. These are typically long-term structural changes driven by powerful forces such as disruptive technologies or changing demographics and consumer behaviour.
In investing, style refers to the investment approach or objective that an asset manager uses with the ultimate goal of generating returns.
A strategy for passing each key roles within a company to someone else in a way that the company continues to operate after the incumbent leader is no longer in control. Succession planning helps ensure that businesses continue to run smoothly after the business’ more senior people move on.
Bonds where the proceeds will be exclusively applied to finance or refinance a combination of both green and social projects.
A proposed set of rules that will govern sustainability disclosure requirements for financial market participants in the U.K.
A collection of 17 interlinked objectives adopted by the United Nations in 2015 designed as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.
A European regulation that lays down harmonized rules for financial market participants on transparency with regard to the integration of sustainability risks and the provision of sustainability-related information for financial products.
Covers funds that do not integrate the EU criteria for environmentally sustainable economic activities into the investment process and could include stocks currently ineligible for inclusion in ESG funds.
A derivative contract traded primarily between businesses or financial institutions outside of exchanges, through which they exchange one financial instruments for another. It usually involves cash flows but the instrument can be almost anything. The swaps are customised to the needs of both parties, and retail investors do not generally engage in swaps.
A classification system that enables businesses to identify whether or not a given economic activity should be considered “environmentally sustainable”.
In finance, refers to a certain situation or condition that may lead to higher profits, revenue, or growth.
Terming out debt means refinancing short-term debt into long-term debt, which may make sense when interest rates are very low.
Since 1931, our firm, Capital Group, has been singularly focused on delivering superior, consistent results for long-term investors using high-conviction portfolios, rigorous research and individual accountability.
Our distinctive investment approach, harnesses high conviction investing from multiple investment professionals working independently alongside each other with the overall aim of producing smoother returns that align with our investors’ long-term objectives.
An investment approach which focuses on where a company derives its revenues rather than just where it is based.
A form of investment that aims to identify macro-level trends, such as clean energy or technology, and the underlying investments that stand to benefit from those trends materialising.
An investment approach that involves looking at the overall picture of the economy and then breaking down the various components into finer details.
A measure of the total costs associated with running the fund, including marketing and distribution costs.
A measure of how closely a portfolio follows its reference index by assessing the volatility of the difference in returns between the portfolio and the index.
Companies looking to transition their business models to a sustainable future.
A type of debt issued by the US Treasury.
Turnover is calculated over the last 12 months as the lesser of monthly purchases and sales divided by the average net assets.
Undertakings for Collective Investment in Transferable Securities (UCITS) is a regulatory framework that allows for the sale of cross-Europe mutual funds.
Conceived by the United Nations, a call to companies to align standards and operations with universal principles on human rights, labour, environment and anti-corruption.
An investment strategy that does not require a fund or portfolio manager to adhere to a specific benchmark.
A collection of 17 interlinked objectives adopted by the United Nations in 2015 designed as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.
The period of time after a market bottom during which a security’s price trends upwards.
Refers to the potential for an investment to increase in value, as measured in terms of money or percentage.
Measures the outperformance of an investment compared to an index during up markets.
An estimated value of an asset or a business.
An investment strategy that involves picking stocks that appear to be trade at a significant discount to their intrinsic value.
A stock that appears to trade at a lower price compared to the worth of its fundamentals (such as cashflows, dividends, earnings, or sales), making it attractive to value investors as they anticipate its price to rise and eventually reflect the true potential of the company.
A statistical measure of the pace, frequency and magnitude of a security’s price movement over a period of time, expressed in standard deviation.
The portion of a portfolio that is invested in a stock, bond, industry, sector or issuer at any point of time, expressed in percentage. In index terms, it is the percentage of the index’s total market value allocated to the same categories.
Typically refers to a full-service brokerage firm that assists individuals with financial planning decisions and services, such as investment advice, portfolio management and brokerage services.
The income returned on an investment, such as the interest or dividends received from holding an asset. The yield is usually expressed as an annual percentage rate based on the investment’s current market cost.
A line showing bond yields (interest rates) of equal credit quality but differing maturity dates.
Occurs with long-term interest rates rising more than short-term rates, or short-term rates falling more than long-term rates.
The annualised return on a bond when held to maturity.
The lowest possible yield that can be received on a bond that fully operates within the terms of its contract without defaulting.
Any type of bond instrument where the proceeds are to be exclusively used to finance or re-finance, in part or in full, a new and/or existing eligible social project.