ACTUARIAL RATE

The effective rate of return of a bond or bond portfolio is the actual rate of return of the bond or portfolio for an investor who holds it until it is redeemed and on the assumption that it reinvests interest at the same actuarial rate.

ALTERNEXT PARIS

Alternext is an organized multilateral trading system. It is a market halfway between a regulated market like Euronext and a free market, with stronger reporting requirements. Alternext offers simplified access conditions for companies seeking to raise capital in the euro area.

ANNUAL REPORT

Regulatory document prepared at the end of each financial year of a company (or SICAV), presenting the elements of the management policy followed and the detailed accounts of the company for the year in question. It is held at the disposal of the shareholders of the SICAV with the management company.

ARBITRAGE

Operation consisting in selling units or shares of one UCITS for the benefit of another UCITS. The transaction is transparent to the employee and is similar to a transfer of assets between the proposed investment vehicles.

BASIS POINT

Used by the financiers, this expression means 0.01%, basic unit of the variation of the interest rates.

BENCHMARK OR REFERENCE INDEX

Index representing the evolution of the comparator market (s) of a UCITS. An index fund will evolve in parallel with the benchmark, a non indexed UCITS will follow its index in trend.

BETA

Measurement of the sensitivity of the fund’s performance relative to the change in the performance of its benchmark. If the beta is higher (lower) than 1, the fund will tend to amplify (dampen) market trends.

BOTTOM-UP SELECTION

This method of selecting securities first favors the characteristics of each security and not those of the sector or country in which the company operates.

CAP / DISTRIBUTION

Choice made by UCITS to distribute or not the income received from their portfolio. When the revenues are capitalized, they contribute to the increase in the net asset value of the SICAV shares and the FCP units: however, the tax credits attached to the capitalized dividends are not recovered.

CAPITAL GAIN

Gain resulting from the difference between the selling price (- the exit rights) of a security and its purchase or subscription price (+ the entrance fees).

CATEGORIES OF SHARE

Possibility of creating several classes of units or shares within the same UCITS. Accordingly, the subscription of a class of units or shares may be reserved for a class of investors, as defined in the full prospectus, according to objective criteria such as a subscription amount, a minimum investment period or any other commitment of the holder.

CFD (“CONTRACT FOR DIFFERENCE”)

CFDs are financial futures. They fall into the category of complex financial instruments defined by the AMF General Regulation because they can cause the customer a loss that exceeds their acquisition cost (leverage effect).

CIF (FINANCIAL INVESTMENT ADVISOR)

Person who practices the following activities as a regular trade: investment advice; advising on the performance of investment services; advising on the execution of transactions on various goods.

COMMISSION OF SUBSCRIPTION OR “RIGHT OF ENTRY”

Amount (usually expressed as a percentage) in addition to the net asset value of the UCITS, which the investor must pay each time he buys units or shares of UCITS. These fees are of two types: firstly, a commission earned by the UCITS which aims to ensure the equality of the holders (the holder who enters the fund generates specific costs which it is legitimate to him impute and not to all carriers); on the other hand, a commission remunerating either the management company or the distribution of the UCITS. Update 2013 03 12 5

COORDINATED

A UCITS is said to be “coordinated” when the supervisory authority of its country of origin attests that it complies with the European directive 85/611. Coordinated, a UCITS may be marketed in the various countries of the European Union after a simplified local procedure.

COUPON

Income received by the holder of a bond.

CORRELATION

Between -1 and +1, it expresses the strength of the link between the fund’s performance and that of its benchmark. A correlation of 1 means that the fund behaves exactly like its benchmark. A negative correlation indicates the fund’s performance is inverse to that of the index.

CUSTODY RIGHT

Amount of fees levied by a financial intermediary for the maintenance of securities accounts.

CONVERTIBLE BOND

Obligation that may, under certain conditions, be converted into shares of the issuing company.

DEDICATED PRODUCT – DEDICATED FUNDS

Customized financial product specially developed for an investor or a restricted group of investors and whose subscription is reserved for them.

DELTA

The delta is an indicator that measures the sensitivity of an option to fluctuations in the value of the underlying. The delta is defined as the change in the price of the option in euro for a change of 1 euro of its underlying. The delta of a call (call option) is always positive and varies from 0 to 1. The delta of a put (put option) is always negative and varies from -1 to 0.

DEPOSITARY

Provider responsible for the custody of securities and the control of the regularity of management decisions taken on behalf of the UCITS. The custodian may delegate contractually to another institution with the capacity to perform the function of custodian accountant, part of its functions (including the retention of assets to a “custodian”). It can not, however, delegate the task of controlling the regularity of the decisions of the management company of the UCITS.

DEPRECIATION

Loss resulting from the difference between the selling price of a security and its purchase or subscription price.

DIVIDEND / COUPON

Net dividend: amount actually received by the customer, Global dividend: net dividend plus tax credits or tax credits. The payment date of this dividend (also called “coupon”) – for the dividend paid and the forecast – corresponds to the credit date in the account. It usually occurs on the business day following the day the coupon is detached.

Detachment: Dividend deduction in the accounts of the UCITS. On the secondment day, the net asset value of the UCITS is reduced by the amount of the dividend.

Payment: registration in shareholders’ account of the amount of the dividends. On the day of payment, the shareholders’ account is credited.

ETF (EXCHANGE TRADED FUND)

See Trackers (indexed UCITS listed)

FINANCIAL INSTRUMENT

Financial instruments include: shares and other securities that give or may give access to voting rights (investment certificates, share subscription warrants, etc.); debt securities (bonds, OCEANE bonds, perpetual subordinated bonds, etc.); units or shares of undertakings for collective investment (SICAV shares, FCP units, etc.); forward financial instruments (call or put option contracts, forward financial contracts, swap contracts, etc.).

FINANCIAL INTERMEDIARY

Professional to whom investors must apply to sell or buy on the financial market. It can be a bank, an investment firm, an online broker, etc. Depending on his status, he can do order reception / transmission, bookkeeping / custody, negotiation, etc.).

FREE MARKET

Unregulated market, that is to say that it is not subject to the same control as the regulated market or Alternext. As a result, the levels of liquidity, security and information offered to investors are not the same. Thus, all transactions of exchange, withdrawal or repurchase of the shares of the minority shareholders in this market are carried out outside intervention and control of the Autorité des Marchés Financiers.

GOOD SUBSCRIPTION

Gift giving right to the holder to subscribe to a share at a price fixed in advance and up to a specified date.

ISIN CODE

Code used to identify a financial instrument (share, bond, UCITS …). UCITS and listed companies use an ISIN (International Securities Identification Number) place code issued by EUROCLEAR, which in France acts as the central depository. Some UCITS do not have to have a place code (the FCPE, for example) in which case the AMF assigns them and uses an AMF code to identify them.

LATE TRADING

Subscription-redemption transaction resulting from an order transmitted beyond the time limit mentioned in the prospectus: such an operation is prohibited.

LIBERALIZED LUMP SUM TICKET

Option offered to income recipients of French bonds and negotiable debt securities to choose a 25% tax (CSG, CRDS and 2% social levy included) in order not to include this income in the tax base. income (IRPP).

LIQUIDITY

The quality of a market, or a security, on which the transactions (buy-sell) are carried out in a fluid way, without a strong variation of the price, because of the abundance of the traded securities.

LEVERAGE

Measure of the risk taken from the use of financial derivative instruments or indebtedness. Leverage measures the fund’s ability to amplify market movements. If the markets rise, the value of the fund may rise faster. On the other hand, if they fall, the value of the fund may fall faster.

LIFE INSURANCE

Limited or life insurance contract by which an insurer agrees to pay benefits in the form of capital: to the insured if he is alive at maturity, or to the beneficiary (s) ) if the insured dies before maturity. Funds placed on a life insurance policy are invested in UCITS.

MARKET TIMING

Arbitrage transaction consisting of taking advantage of a difference between the book value of a fund and its market value: such an operation is reprehensible if it undermines the equal treatment of holders.

MATIF

As a regulated market for derivatives on interest rate and commodity instruments, MATIF is now managed by Euronext LIFFE. It protects against the depreciation of financial assets. It can also be used in a speculation or arbitrage strategy.

MATURITY

Maturity is the life of the bond. The bond market is a long-term market. The longer the life of the bond, the higher the risk attached to the bond as the likelihood of interest rates rising or the issuer defaulting (liquidation, etc.) increases over time.

MAX DRAWDOWN

Indicator to measure which was the largest decline in capital invested over a specified period, representing the negative cumulative gains and losses. The advantage of the Max Drawdown is that it allows to know, and therefore to deviate from its selection, the funds that have suffered over a given period the largest losses, regardless of their performance.

MEDIAN

Border separating data into two equal masses. The median that appears in our performance dispersion graph is the value beyond which the best half of the calculated performance is.

MONEP

Regulated market for derivative instruments (futures and options) on equities or indices, the MONEP is now managed by Euronext LIFFE. It offers investors the means to hedge their positions against abnormal or unanticipated stock price fluctuations. It is also a tool of speculation or arbitration.

MOTION COMMITTEE

Commission invoiced to the UCITS in the course of transactions carried out on the portfolio (purchase and sale of shares, for example). The prospectus details these commissions. The management company may benefit from the retrocession of part of this commission, under the conditions set out in the prospectus.

MULTILATERAL NEGOTIATING SYSTEM

A system which, without having the status of a regulated market, ensures the meeting, within itself and according to rules, of multiple buyers ‘and sellers’ interests expressed by third parties on financial instruments, so as to conclude transactions on these instruments. It can be managed by an authorized investment services provider or by a market operator.

NET ASSETS

Total net amount of assets of a UCITS valued at the market price, less debts.

NET ASSET VALUE (NAV)

Value obtained by dividing the net assets of a unit class of a UCITS by the number of units of the class in circulation. The net asset value is used as the basis for calculating the subscription price (net asset value plus entry fees) and redemption price (net asset value less exit fees) of the UCITS. The net asset value is calculated daily or weekly.

NYSE EURONEXT PARIS SA

Market company that organizes transactions on Euronext’s French markets. It performs the following functions:

management of trading information systems;
registration of trading between Euronext members through a clearing house that guarantees payment and delivery of securities;
management of membership membership;
management of admission and write-off of financial instruments;
establishment of market rules, previously submitted to the Autorité des marchés financiers;
dissemination of stock market information and conditions of execution of the negotiations;
market promotion with issuers and investors.
OBLIGATION

Debt security issued by a company, repayable on a date and for an amount fixed in advance and which earns interest. There are other debt instruments that have particular characteristics.

OAT / OATI

Assimilated Treasury Bond / Assimilated Treasury Bond Indexed: bonds representing the debt of the French State, issued over the water during the year.

OPTION

An option contract entitles the holder to buy (call option) or sell (put option) a number of assets or securities (shares, bonds, OPVCM, indices, interest rates, raw materials, etc.) determined at a price and on a date fixed in advance. The option may or may not be exercised on the basis of the prices observed on the market at the specified date.

PEA

Stock savings plan: fiscal framework allowing, under certain conditions of duration, to be exempted from taxation on the capital gain realized on a portfolio mainly invested in eligible securities: shares, investment certificates of listed French companies, shares of SARL or companies with an equivalent status in another Member State of the European Union (including Iceland and Norway), rights and warrants attached to these shares. Also included in this definition are the coordinated OPVCMs (including Iceland and Norway) invested 75% in eligible securities. To be eligible for the PEA, an OPVCM must hold at least 75% of eligible securities.

PER (PRICE EARNING RATIO)

This is the ratio between the share price and the net earnings per share (price / EPS). It measures the number of times past or future profits are capitalized in the company’s share price.

PERFORMANCE BASE 100

Evolution of an amount of 100 Euros invested in the fund between the two extreme dates of the period studied.

PERFORMANCE 1 YEAR

Evolution at the calculation date of the amount of 100 Euros invested in the fund 365 days ago.

PERFORMANCE COUPON REINVESTED

A reinvested coupon return is calculated on the assumption that the investor immediately and without charge replaces its coupon in the UCITS that has just distributed it. This method has the advantage of allowing reliable comparisons between different UCITS which can detach their coupon at very different dates.

PORTFOLIO MANAGEMENT COMPANY

Investment services provider primarily engaged in the management on behalf of third parties (individual through a management mandate, collective through a UCITS) and subject to approval by the AMF.

PROSPECTUS (FORMERLY INFORMATION NOTICE)

Document submitted before any subscription and giving precise information on the identified risks of the UCITS. It also provides essential information on the operating procedures and characteristics of the UCITS.

RATING AGENCIES

Independent bodies that judge the financial quality of companies, communities and sovereign states. Ratings assess the ability of rated participants to service their debt. With respect to UCITS, the rating rewards the quality of the assets, but also the reliability of the accounting and administrative processes.

RATE OF ROTATION OF PORTFOLIO

Difference between the sum of purchases and sales of shares in the portfolio and the sum of subscriptions and redemptions on the fund or the SICAV, based on the average net assets of the fund. Calculated annually, based on the accounting year, it is expressed as a percentage.

REGULAR MARKET

Multilateral system that ensures or facilitates the meeting, within and according to rules, multiple interests buyers and sellers expressed by third parties on financial instruments. A regulated market is managed by a market operator.

RECOMMENDED INVESTMENT PERIOD

Duration that seems at the minimum necessary to take full advantage of the characteristics of a UCITS and to obtain the best possible profitability.

REDEMPTION BOARD OR “EXIT RIGHT”

Same principle as the subscription commission but applied the resale of the shares.

RULES

Rules governing the life of a mutual fund. It is held at the disposal of the Fund’s unitholders at the management company.

ROE

Financial ratio of English Return On Equities. It is calculated by dividing the net income of a company by the amount of its equity. ROE therefore measures the profitability of a company’s capital.

SCHOLARSHIP DAY

Day when the stock market is open, ie where there are official quotations.

RATE OF RATES

Photograph at a given moment of current interest rates in a currency with different maturities, from short term to long term. Inversion of the yield curve: the yield curve is reversed when the rates of the shorter durations are higher than the rates of the longest durations.

SENSITIVITY

Sensitivity is an indicator used to measure the percentage increase or decrease in the price of a bond or the net asset value of a UCITS bond, induced by a 1% fluctuation in the interest rate. market interest. Example: A sensitivity of 4 means that the price will rise from 100 to 104 when the market rates fall by 1 point and conversely will decrease from 100 to 96 when the rates will rise by 1 point.

SUPERFORMANCE COMMISSION

It remunerates the management company if the UCITS exceeds the objectives set out in the prospectus.

SPREAD

The spread corresponds to the difference between the actuarial rate of return of a bond and that of a “risk free” loan of the same duration. It represents the risk premium that the issuer must offer the investor to pay for the risk he takes by investing in his security. The riskier the investment, the higher the risk premium offered.

SECURITIES

Securities issued by public or private legal entities, transferable by book-entry or tradition, which confer identical rights by category and give access, directly or indirectly, to a share of the capital of the issuing legal entity or to a right of claim on his heritage. Securities of mutual funds and mutual funds are also securities.

SHARE

Title of property representing a part of the capital of the company that issues them. The share can pay a dividend and gives a voting right to its owner. Shares may be listed but not necessarily.

SHARE WITH SHARE SUBSCRIPTION (ABSA)

Share with one or more warrants entitling the holder to subscribe for further shares at a previously fixed price.

STOCK EXCHANGE

The stock market is a financial market where financial instruments (stocks, bonds, etc.) are sold and bought. It is one of the sources of financing for the economy. It allows private and public companies, local authorities and the state to raise funds to finance their investments by appealing to savers.

SHARE CAPITALIZATION

This is the value of a company on the stock market at a specific time. It is obtained by multiplying the number of shares of a company by its share price. We can distinguish the large caps or “blue chips” values of the main companies of a country (often grouped in the same index example the CAC 40 in Paris) of medium and small caps.

TRACKERS (OR EFT FOR EXCHANGE TRADED FUNDS)

Index or index-based UCITS class listed on a regulated market. They aim to replicate variations of a predetermined index or to evolve according to a predetermined formula based on a given index. They can be bought or sold on the stock market throughout the trading day, as “classic” shares.

TRACKING ERROR

Standard deviation of the fund’s relative performance relative to its index. This notion makes it possible to verify whether the fund’s changes are similar to the changes in its benchmark. A tracking error of zero means that the fund’s relative performance relative to its index is constant.

UCITS (MUTUAL SECURITIES INVESTMENT ORGANIZATION)

Savings product approved by the Autorité des marchés financiers and intended for retail and institutional investors. Invested in financial instruments (equities, bonds, debt securities, etc.) according to the criteria indicated in the prospectus, UCITS are managed by entities (portfolio management companies), which are also subject to the approval of the ‘Autorité des marchés financiers. A UCITS provides the opportunity to access a diversified portfolio of securities; his portfolio is entrusted to a professional; its units or shares may be redeemed at any time at their net asset value.

CAPITALIZATION UCITS

UCITS which automatically reinvests the income from securities held in the portfolio.

DISTRIBUTION UCITS

UCITS which periodically distribute the income from securities held in the portfolio.

UCITS COMPLIES WITH EUROPEAN STANDARDS

UCITS of a country of the European Union which may be freely marketed in other Member States after obtaining a marketing authorization.

UCITS OF OPCVM (OR FUNDS OF FUNDS)

UCITS invested for more than 10% in shares or in units of other undertakings for collective investment in French or foreign securities. The level of investment that the UCITS is authorized to make must be specified in the prospectus (less than or greater than 50% of the net assets).

VOLATILITY

A term that expresses, for the real return of a value, the relative amplitude of price movements of a security around its average value over a given period. Volatility is a risk indicator: the higher it is, the higher the risk is statistically large.

WARRANT (OR “OPTION VOUCHER”)

This is a speculative instrument issued by credit institutions which makes it possible to buy (call warrant) or sell (put warrant) a value (share, bond, index, etc.) at a price and a maturity given.

YTD PERFORMANCE (YEAR TO DATE)

Evolution of an amount of € 100 invested in the fund between December 31 of the previous year and a given date.