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Glossary
 
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A.E.D.A.K. (Mutual Fund Management Company S.A.)
A company whose exclusive purpose is the operation and management of Mutual Funds. Additionally the company may provide services according to Article 4 of Law 4099/2012.   
Arbitrage
The simultaneous purchase and sale of an asset in order to profit from a difference in the price. This usually takes place on different exchanges or marketplaces.
Balanced Fund
A mutual fund with a minimum 10% equity exposure as well as a minimum 10% bond exposure. Investments in securities, bonds or money market instruments can not exceed 65% of its net assets.
Bear market
A market condition in which the prices of securities are falling or are expected to fall. Although figures can vary, a downturn of 15-20% or more in multiple indexes is considered an entry into a bear market.
Benchmark
An independent and broadly accepted index, specified by a Mutual Fund Management Company in order to evaluate the performance of its funds.
Beta factor
A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.
Bond
A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time (more than one year) at a fixed or floating interest rate. Bonds are used by companies, municipalities, and governments to finance a variety of projects and activities.
Bull market
A financial market of a group of securities in which prices are rising or are expected to rise.
Capital gain
Profit that results when the price of a security held by a mutual fund rises above its purchase price and the security is sold (realized gain). If the security continues to be held, the gain is unrealized. A capital loss would occur when the opposite takes place.
Credit risk
The possibility of  loss occurring due to the failure to meet contractual debt obligations.
Custodian
A bank legally operating in Greece (Greek or foreign) which safeguards the property, cares for collections and payments and for the correct performance of transactions. The Custodian controls the lawfulness of all movements and the observance of the regulation, at any moment.
Custodian Fee
It includes Custodian's fee or third parties fee regarding the safekeeping of all or part of the mutual fund's assets.
Dividend
The proceeds of the Mutual Fund from interests, dividends, and profits from above par drawing, may be distributed to the shareholders, annually, after having deducted the total expenses for the financial year.
Dividend yield
A financial ratio that shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. Dividend yield is calculated as followed:

Domestic Mutual Fund
A Domestic Fund invests in bank deposits, money market instruments, bonds or stocks issued mainly by entities registered in Greece.
Equity Fund
A mutual fund that invests principally in stocks.
Exchange Traded Fund (ETF)
A mutual fund that tracks an index and is listed in a stock exchange. 
Fixed Income Fund
A Fixed Income Fund invests mainly in bonds and secondarily in securities up to 10% of its net assets. 
Floating-Rate Note (FRN)
A note with a variable interest rate which is tied to a certain money-market index. 
Foreign Mutual Fund
A Foreign Mutual Fund invests in bank deposits, money market instruments, bonds or stocks issued mainly by cross-border domiciled entities. 
Fund of Funds (FoF)
A Fund of Funds (FoF) invests in other mutual funds. 
Hedging
Making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract.
Hellenic Capital Market Commission
The Supervisory and Regulatory Body of M.F. Management Companies and Portfolio Investment Companies. It is the equivalent of the Bank of Greece for Banks. It comes under the jurisdiction of the Ministry of National Economy and controls the operation of all M/Fs available in Greece. Receives and investigates complaints of citizens concerning Mutual Funds and Portfolio Investment Companies (PICs).
Inflation risk
This is the loss of the real value of capital due to an unexpected increase in the rate of inflation.    
Interest rate risk
The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between two rates, in the shape of the yield curve or in any other interest rate relationship. Such changes usually affect securities inversely and can be reduced by diversifying (investing in fixed-income securities with different durations) or hedging (e.g. through an interest rate swap). 
Investment  
This means placing a certain amount of capital in securities with the expectation of future cash flows from revenues (interest, dividends) and/or capital gain.    
Limit up – Limit down
The maximum / minimum amount by which the price of a security may advance in one trading day.
Liquidity risk
The risk stemming from the lack of marketability of an investment that cannot be bought or sold quickly enough to prevent or minimize a loss.
Management Fee
It includes Mutual Fund Management Commpany's fee, the financial advisor's or/and investements manager's fee for undertaking the professional management of the fund.
Money Market Fund
A Money Market Fund invests mainly in bank deposits and money market instruments. The fund can not invest in stocks. 
Mutual Fund
A Mutual Fund (MF) is a professionally managed type of collective investments scheme that consists of money market instruments, stocks, bonds and cash. Its assets belong ab indiviso to more than one unit holders according to Law 3283/2004. 
Mutual Fund Assets
The total property of the Fund in current prices. Prices of bonds, interests, cash, stocks, foreign exchange, etc. are calculated on a daily basis and added up to give the assets. The value of assets is affected both by the fluctuation of the value of investments and by the subscriptions and redemptions performed each day.
Mutual Fund Regulation
The document describing the purpose of each Mutual Fund, its obligations, how it operates, and anything concerning the Fund. This document is binding for the shareholders, the Custodian, and the Mutual Fund Management Company, and must always be read by prospective shareholders.
Mutual Fund Units
The assets of a mutual fund are divided into units of equal value or, where the fund’s units are not listed on a regulated market in line with Article 24a of Law 3283/2004, into nominal fractions of units. 
Net unit price
The net price is the result of the division of the value of the Fund's assets of each day, with the total number of units that day. The net price (appearing in the newspapers every day) is used to calculate the return on investments as well as the offer and redemption prices.
Option
A financial derivative that represents a contract sold by one party (option writer) to another party (option holder). The contract offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security or other financial asset at an agreed-upon price (the strike price) during a certain period of time or on a specific date (excercise date).
P/BV
A ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.
P/E
A valuation ratio of a company's current share price compared to its per-share earnings.

Calculated as:

Portfolio Turnover Rate (PTR)
This index is calculated using the following formula:
PTR= ((Total 1 – Total 2) / M) x 100
where: 
Total 1 is the sum of the total value of purchases and sales of mutual fund assets during the previous year.
Total 2 is the sum of the total value of mutual fund units made available to investors or redeemed from the fund.
Μ is the fund's average net assets.
Redemption  
The procedure for the "withdrawal" of invested funds from the Mutual Fund. It may be a partial redemption (a specific amount, part of the total capital) or a total redemption, and the filling-in of an application is required. Funds are credited back within five days at the latest from the date of the application, based on the redemption price on the day the application was submitted. All co-unitholders have separate redemption rights.
Redemption price
This is the net price less the redemption commission.    
Re-investment risk
The risk that future proceeds will have to be reinvested at a lower potential interest rate.
Return
The difference between the subscription cost and current value of a unit expressed in percentage terms. Return = (Current value – subscription cost) / subscription cost     
Risk
The chance that an investment's actual return will be different than expected. This includes the possibility of losing some or all of the original investment. Risk is usually measured by calculating the standard deviation of the historical returns or average returns of a specific investment.
Share
A unit of ownership interest in a corporation or financial asset. While owning shares in a business does not mean that the shareholder has direct control over the business's day-to-day operations, being a shareholder does entitle the possessor to an equal distribution in any profits, if any are declared in the form of dividends. The two main types of shares are common shares and preferred shares.
Split
A corporate action in which a company's existing shares are divided into multiple shares. Although the number of shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same compared to pre-split amounts, because no real value has been added as a result of the split.
Spread
The difference between the bid and the ask price of a security.
Subscription
The admission in a MF. The subscription date is the value date of cash deposited in the Mutual Fund, or the value date when proceeds (e.g. from cheques) are made available to the Mutual Fund. The subscription price is the offer price on the value date.
Subscription price
This is the net price increased by the front-end commission.    
Systematic risk  
The risk inherent to the entire market or entire market segment.
T Bill  
A short term dept obligation with a maturity of less than one year. 
Total Expense Ratio (TER)
The fund's TER is calculated every year and is defined as the quotient of total operating costs (management / custodian fees, certified auditors fees, publication and unit holders briefing expenses) to the average net assets
Unit holder
The person who owns units of a mutual fund.    
Unsystematic risk
Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through appropriate diversification. 
Zero – Coupon
A debt security that doesn't pay interest (a coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.
UCITS DO NOT HAVE A GUARANTEED RETURN AND PREVIOUS PERFORMANCE DOES NOT GUARANTEE FUTURE RETURNS.
WHERE THERE ARE DISCREPANCIES BETWEEN THE GREEK AND ENGLISH TEXT THE GREEK TEXT SHALL TAKE PRECEDENCE