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A
Account currency
| |
The currency in which the account is denominated and
which is used for reporting purposes by webportfolio. |
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Account entries
| |
All deposits and withdrawals are booked to the account.
The bookkeeping system used by the account thus keeps track of changes
in the account. |
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Accounts
| |
Type of investment in the asset category "liquid
funds". Comprises all those accounts which belong to the portfolio
in which liquid funds are generally held. |
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Accumulation of capital
| |
In a mutual fund, this indicates
that income is not distributed, but rather reinvested in the fund
in order to strengthen the value of the fund. |
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Appraisal date
| |
Is the day on which the portfolio
is appraised at market prices. |
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Asset allocation
| |
The division of assets among various
asset categories according to defined weightings. The assets are
then dividend spread out among various regions, currencies and branches. |
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Asset categories
Asset management
| |
Professional management of assets. |
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B
Balance
| |
The resulting difference between the debit and credit
sides of an account (= current account balance). |
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Base instrument
| |
This is the financial instrument which underlies an
option or a warrant.
Common base instruments include currencies, shares, bonds, indices,
baskets of shares, and tangibles (such as precious metals or oil). |
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Benchmark
Bond
| |
A debt instrument which makes available long-term funding
to the borrower. Important aspects of a bond include contractually
agreed-upon redemptions and interest payments. |
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Bond fund
Bond index
| |
An index which provides information
over the average performance of a bond market is calculated on almost
all global bond markets. Bond indices frequently
serve as a benchmark for bond
funds which invest in the respective market. |
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Bond markets
| |
The general term for all organisational forms of trading
in bonds in the various countries of the world. |
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Broken interest
| |
This is the pro-rata share of the coupon on a bond
which is owed to the seller since the previous coupon payment. Broken
interest is always added to the market price. Because of the calculation
of broken interest, the purchaser and the seller are credited with
the exact pro-rata share of interest to which they are entitled. |
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C
Capital guarantee
| |
Type of investment in the asset category "bonds
& similar assets". The issuer guarantees to repay, at the
end of the maturity period, either in full or the agreed-upon portion,
the capital put at his disposal. It can also be agreed to allow the
subscriber to participate to a certain degree from the development
of the investment underlying the capital guarantee. |
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Capital market
Capital yield tax (KESt)
| |
Interest and dividends on Austrian securities are subject
to a 25% capital yield tax (KESt). This tax, which is withheld by
the Austrian custodian bank, satisfies the income tax requirement,
and in the case of debt instruments, the inheritance tax
as well. The KESt is thus an income tax in the form of a withholding
tax which is generally deemed to represent final taxation. Capital
yields for which the KESt is not treated as the final taxation are
subject to the income tax (ESt). |
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Cash
| |
Cash and asset components with a high degree of liquidity
(e.g. account deposits). |
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Cash funds
| |
(also money market funds). These are mutual
funds which invest primarily in the money
market. Money market instruments are securities with a short period
to maturity (1 day to 1 year). |
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Cash ratio
| |
Cash reserves as a percentage of overall portfolio
holdings. |
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Classical
convertible and option bonds
| |
Type of investment in the asset category "bonds
& similar assets". Option bond:
bond which also includes a warrant
in addition to the interest coupon. This warrant entitles the holder
to purchase securities, gold, foreign currency
or other participation securities during a certain period and at certain
terms and conditions. By including a warrant, the issuer
can make the bond more attractive and also pay
a somewhat lower rate of interest. Convertible
bond: bond which entitles the creditor, under
certain conditions within a certain time period to exchange his bond
(right to a claim) for shares of the company (shares
or participation certificates). |
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Closing date
| |
The date the order is executed on the respective exchange. |
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Convertible bond
Convertible/option bond
with and without issuer voting rights
| |
Type of investment in the asset category "shares
& similar assets". Version "with issuer voting rights":
With this convertible or option
bond the borrower can determine whether the bearer can exchange
the bond for shares or cash. Version "without issuer voting rights":
With this convertible or option
bond the borrower does not have the ability to choose between
shares or cash. |
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Coupon
| |
The interest warrant (for debt
instruments / bonds), dividend coupon (for shares)
or income certificate (for investment
certificates) included with a security (coupons are generally
attached to the security). The coupon entitles the holder either to
receive the income which is due, or to assert claims (e.g., a subscription
right) |
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Creditworthiness
| |
Provides information over the quality and solvency
of an issuer. |
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Currency areas
Currency options
| |
Type of investment from the asset category "other".
In webportfolio, this means the right to purchase or sell a set amount
of currency at set price (= base price) within an agreed-upon period
or at a specified deadline. |
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D
Debt instruments
| |
Securities which provide the
investor (in this case he is the creditor, thus also creditor instrument)
with specifically-defined claims (e.g., repayment date, repayment
amount, interest, ...) against the issuer. Example:
bonds. |
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Deferred capital yield (KESt)
tax
| |
The KESt amount that would be due and payable is deducted
from the customer's accounts and safe custody accounts as per the
reporting date. |
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Derivatives
| |
(Also called derivative financial instruments). Rights
whose value depends largely on the price and price movements and expectations
with regard to the underlying base instrument
(shares, foreign currencies, indices,
bonds, etc.).The most important types of derivatives
include options, financial futures and swaps. |
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Distribution
Diversification
| |
The diversification of assets among various securities
and/or asset categories. The broadest
possible diversification of a portfolio is
one of the most important factors which helps to reduce exposure to
risk. |
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Diversification
of risk
Dividend rights certificates
| |
Type of investment in the asset category "shares
& similar assets". A dividend right entitles the holder to
a certain portion of the net profit and/or the liquidation proceeds
of a company. A dividend right is evidenced in writing in the form
of a dividend rights certificate which embodies neither voting rights
nor other rights with respect to the company. |
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Dividends
| |
The portion of a joint stock company's profits which
are distributed to shareholders. |
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Duration
| |
The duration is an indicator of the medium-term period
for which capital is locked in for a bond or a
bond fund. It describes how sensitive the
price of a bond is to changes in interest rates. The larger the duration
of a bond fund, the more sharply the value of the bond or bond
fund will climb or fall in response to changes in interest rates.
The duration is thus an indicator of risk. |
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E
End of period
| |
The last day of a month, quarter or a year. |
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Enforceable instrument
| |
In webportfolio, this is the same as a precisely defined
security (a particular bond, a particular share, a particular fund). |
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Equity certificates
| |
These generally comprise shares and investment certificates.
Equity certificates are securitised rights which represent either
an interest in the share capital of a joint-stock company (including
related rights such as voting rights, entitlements to dividends, etc.),
or co-ownership in a mutual fund (without the right to participate
in decisions by the investment company managing the fund). |
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Equity fund
Equity markets
| |
The general term for all organisational forms of trading
in equities in the various countries of the world - in particular,
exchanges. |
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Euro-zone
| |
A region in webportfolio which comprises those countries
which are members of the European Monetary Union. |
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EU Withholding Tax
| |
Pursuant to Council Directive 2003/48/EC dated 3rd June 2003, interest income
paid to natural persons domiciled in another EU member state or in an associated region is
likely subject to an EU withholding tax beginning 1st July 2005 (15% beginning 1st July 2005,
20% beginning 1st July 2008, 35% beginning 1st July 2011). The EU withholding tax should
be able to be completely offset against the taxes of the country of domicile. A combination
with other withholding taxes (QSt) can occur - not, however, with the Austrian yield tax. |
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Exchange
| |
A market where prices are fixed pursuant to formal
regulations for fungible goods (securities,
as well as for commodities or foreign currencies). |
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Expected income
| |
Coupon payments on a bond
which are expected in the future are reported by webportfolio as "expected
income." |
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Expected redemptions
| |
Bond redemptions expected in the future are reported
by webportfolio as "expected redemptions". |
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F
Fixed deposits
| |
Funds deposited at a bank at a fixed rate of interest
for a period of time which is specified in advance (at least 30 days).
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Forward foreign exchange transactions
(foreign currency futures)
| |
A type of investment in the asset category "liquid
funds". A foreign currency future is the contractual obligation
between parties to the contract to trade an agreed-upon currency at
a certain time at a previously agreed-upon price. The purchaser of
a currency future is obligated, once the future matures, to purchase
the currency at the agreed-upon price. The seller of a foreign currency
future is obligated to deliver the currency at this point. |
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Fund assets
| |
Also referred to as fund volume. Total assets including
cash reserves which are managed within a mutual
fund. |
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Fund of funds
Futures
| |
Futures are standardised contracts that authorise and
obligate the parties to the contract to buy/sell a certain item of
trade (for example, securities, foreign currencies, commodities, etc.)
at the end of the predetermined period at a set price. Unlike options,
futures obligate the purchaser and seller to deliver and pay for the
items traded, while an option gives the purchaser of the option the
right to choose between these possibilities.. |
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Futures funds
| |
Type of investment in the asset category "other".
This refers to mutual funds which invest
exclusively in derivatives. |
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G
Gross value
| |
webportfolio calculates gross value pursuant to the
formula: market price x number of items (shares) or market price x
nominal value (bonds). Gross value plus all applicable charges and
taxes result in the figure presented by webportfolio under the heading
"account movements in account currency". |
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H
Hedge fund
| |
Investment fund which in many cases pursues unconventional
and risky investment techniques and strategies (use of derivatives,
selling short, raising out loans, etc.) in order to achieve substantial
leverage. The risks generally involved are substantial. |
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I
Index, indices
| |
An index reflects the value of the selected group of
securities contained in the index. Indices are calculated on an ongoing
basis for most of the world's markets. The best-known index in the
world - the American Dow Jones - is a share
index based on the current market prices of the thirty largest
U.S. stocks. When assessing bond markets
on the other hand one uses a bond index.
Indices are often used as a benchmark for
the performance of a fund. |
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Index certificates
| |
Type of investment in the asset category "shares
& similar assets". Certificates whose market price is linked
the the development of the underlying index. |
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Index futures
| |
Future, where the underlying
commercial item is an index. The contract is generally settled in
cash ("cash settlement"). |
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Interest
| |
Remuneration for making available capital. In webportfolio,
"interest" refers to the regular income from a bond; depending
on the bond's terms and conditions, interest is usually paid quarterly,
semi-annually or annually; between payment deadlines, our system calculates
broken interest on a daily basis, and
displays it on a per period and cumulative basis. |
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Interest futures
| |
Type of investment from the asset category "bonds
& similar assets". This describes standardised futures contracts
which require the purchase or sale of a specified nominal amount in
a synthetic government bond at a certain date. Futures contracts are
traded with the delivery months of March, June, September and December,
with the next following three delivery months being available. Prices
are established on the futures exchanges on an ongoing basis. Delivery
is made in the form of actually existing government bonds. |
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Interest options
| |
Type of investment from the asset category "bonds
& similar assets". The option is an agreement between two
parties which gives the purchaser of the option the right to purchase
(call option) or to sell (put option) a specific product or a specific
service at a set price. The seller is obligated to meet the agreement,
and thus is exposed to the risk that the purchaser will make use of
his right to exercise the option. For accepting this obligation, the
seller receives a premium from the purchaser. In the case of an interest
option, an interest rate or financial instrument (e.g. 3-month LIBOR,
swap, interest future) serves as the base value. Compare also option.
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Interest warrants
| |
Type of investment from the asset category "bonds
& similar assets". This describes a warrant
whose base instrument is an interest option. |
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Investment certificate
| |
Security which evidences an
investor's share of ownership in the assets of a mutual fund. Investment
certificates do not have a nominal value, but rather indicate ownership
of one of more shares. |
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Issuer
| |
Company or public-law corporation which "issues"
securities in order to raise funds. |
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J
K
L
Liquid funds (liquidity)
cash
| |
Asset category. Defined
by webportfolio as readily available funds, e.g., account balances,
fixed and time deposits as well as forward foreign exchange transactions. |
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M
Mixed funds
| |
Type of investment in the asset category "other".
This refers to mutual funds which invest
in both shares and bonds. |
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Money market
| |
Market for funds which are available for a short period
of time, generally with maturity periods of up to one year. Money
market investments: short-term financial investments at a fixed rate
of interest with maturity periods of between 1 day and 12 months. |
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Money market
securities
| |
Securities with a short period to maturity. The most
important money market securities in Austria are Austrian treasury
bills (ATBs). Of particular importance for short-term investments
abroad are American money market securities such as treasury bills,
bankers acceptances, commercial papers, finance papers and certificates
of deposit, which generally have periods to maturities of three to
six months. |
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Mutual fund
| |
Special assets comprising securities
selected according to the principle of the diversification
of risk. These assets are divided into shares which are evidenced
by investment certificates. A
mutual fund is established and managed by an investment company pursuant
to law (in Austria: "Austrian Mutual Fund Law"), and jointly
owned by shareholders. |
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N
Nominal amount, face
value
| |
The nominal amount printed on the face of a security.
When used in connection with shares, it represents
the amount of the shareholder's claim to the company's nominal share
capital. When used in connection with bonds, it
represents the amount of the shareholder's claim against the issuer. |
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O
Option
| |
Security which gives the holder the right, but not
the obligation, to accept a purchase (call) or sell (put) offer during
a specified period of time. American style option: may be exercised
at any time during the entire period. European style option: may only
be exercised at the end of the period. The American style option is
the the most frequently used option, including on the European exchanges. |
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Option bond
Options on index
futures
| |
Type of investment from the asset category "shares
& similar assets". They represent an option
on an index future. |
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Options on shares and
indices
| |
Type of investment in the asset category "shares
& similar assets". These options entitle the bearer to purchase
or sell shares or share
indices within a specified period of time at a set price. |
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Other countries
| |
In webportfolio, this refers to all countries which
have not been assigned to a specific region. |
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P
Participation certificate (PC)
| |
Participation certificates are bearer instruments which
allow the investor to participate in the assets and business success
of a company. They are very similar to preference shares, since holders
of a PC is entitled to only some, but not all, of the rights of shareholders. |
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Performance
| |
The overall increase in value of a capital investment
during a specified period of time, expressed in per cent. It takes
into consideration the change in value of the invested capital, as
well as distributions and their reinvestment (e.g. in the case of
mutual fund). |
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Portfolio
| |
The total inventory of assets which are invested in
the various asset categories. Securities
portfolio: the part of the portfolio that consists exclusively of
securities. |
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Portfolio development
| |
The presentation in webportfolio includes the following
items:
Portfolio development:
The balance of assets at the beginning of the reporting period
plus deposits
minus withdrawals
minus withholding taxes paid
plus (minus) profits (losses)
results in the balance at the end of the reporting period.
Performance:
Change in value during the reporting period,
once after charges but before withholding taxes, a second time
after charges and after withholding taxes.
Change in value since the start of asset management
Total, after charges and before withholding taxes
Annual average, after charges and before withholding taxes |
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Price, market value
| |
The market price for securities
traded on an exchange. Bond prices are quoted
in terms of the % of face value. |
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Price gain
| |
This refers to the positive difference between the
price at which the security was purchased,
and the price at which it is currently trading or at which it was
sold. In Austria, price gains realised by private investors are not
subject to taxes, if the period between the purchase and sale of the
security is longer than one year. |
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Product
| |
With webportfolio it is possible to access reports
over a variety of asset management products. The reporting varies
from product to product. If you own several "products" and
have online access to webportfolio, please indicate the product abbreviation
(VM = asset management, PC = Portfolio Classic, IP = Investment Programme,...)
and enter the safe custody account number of your respective asset
management product to obtain an online report. |
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Profit participation certificate
| |
Type of investment in the asset category "shares &
similar assets". While a share evidences the right to a company, a
profit participation certificate evidences a special dividend right
to the net profits or the liquidation proceeds of a company. |
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Q
Quotation per unit
| |
For participation instruments, it is common to quote
the price per security. |
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R
Real estate fund
| |
Type of investment in the asset category "shares
& similar assets". This is the term used for investment funds
whose assets are invested in real estate and participations in and
claims against real estate companies. |
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Real estate profit
sharing certificate
| |
Type of investment in the asset category "bonds
& similar assets". Real estate profit sharing certificates
are dividend rights certificates which allow
the bearer to participate in the income and increase in value of real
estate. The income which is generated in this regard is generally
not distributed (see also accumulation of
capital). |
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Redemption
| |
The repayment of a debt (for debt instruments: the
repayment of the capital raised by the issuer). This can occur:
- in a single sum at the end of the maturity period (final maturity)
- prematurely on account of the security being called or
- prematurely (graduated in terms of time) through drawings |
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Reference currency
| |
The currency selected by the holder of the portfolio
which is to be used when reporting over the assets in the portfolio.
If the reference currency is, for example, EUR and the portfolio also
contains USD, SFR and GBP denominated securities, all USD, SFR and
GBP amounts will be converted to EUR. |
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Regions and currency
areas
| |
webportfolio works with the following regions/ currency
areas: euro-zone / EUR. UK / GBP. remaining
Europe (e.g. Switzerland, Denmark, Sweden, Norway) / CHF, DKK, SEK,
NOK. USA / USD. Japan / JPY. Other countries
(e.g. Canada, Australia, Hong Kong) / CDN, AUD, HKD. |
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Remaining period of
maturity
| |
The time remaining until the redemption (repayment
of capital) of bonds. |
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Report
| |
"Report" gives you the ability to call up
selected individual pages from webportfolio. (See also "Help
on Individual Reports"). |
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Reporting date
| |
The reporting date indicates the date on which the
value of the portfolio is ascertained (e.g. end of month = last bank
business day in month, end of year = last bank business day in year,
current = previous bank business day). |
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Reporting period
| |
Is the period for which the performance of the monitored
portfolio has been evaluated. |
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Residential
construction bond
| |
Type of investment in the asset category "bonds
& similar assets". Residential construction bonds are bonds
which serve to refinance residential construction (new construction
and major renovations). The first 4% in interest
paid to private investors is exempt from the capital
yield tax (KESt). |
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Residential
construction convertible bonds
Risk
| |
In connection with investments of capital, risk describes
the possibility of a change in value (deviation) of an investment
from past performance and from its anticipated future performance.
Risk thus not only refers to the possibility of a loss, but also to
the possibility of a profit. |
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S
Safe custody account
| |
Used to physically safeguard securities
at a bank. The deposit is generally made in the form of a global certificate,
i.e., one customer's securities are stored together with the same
type of securities owned by another customer. Since the securities
are kept in a safe custody account, the owner is protected in case
the securities are lost. The management of the securities is also
significantly simplified for the customer, since maturity dates for
interest payments, dividends and other distributions
etc. are handled automatically by the bank. Securities held in bank
safe custody account on behalf of a customer can also be recovered
from a bankrupt's estate. |
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Safe custody
account entries
| |
All incoming/outgoing deliveries and/or purchases/sales
of securities are booked to the safe custody account. The bookkeeping
system used by the safe custody account thus keeps track of changes
in the inventory of securities. |
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Sectoral funds
| |
These are mutual funds which
specialise in investments in specific sectors (e.g. technology, pharmaceuticals,
commodities, gold, etc.) |
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Securities
identification number (WP-No.)
| |
The securities identification number is a code which
unequivocally identifies each security. |
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Security
| |
Document which evidences a private right which can
only be asserted with the possession of the document. Securities are
generally understood in a more narrow sense, namely shares,
bonds and mutual funds. |
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Share
| |
Security which represents the
right to a certain percentage of the share capital of a joint-stock
company. |
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Share index
| |
An index which provides information
over the general growth trend of an equity market or a specific segment,
is calculated on almost all equity markets
in the world. Share indices frequently serve as a benchmark
for equity funds which invest in the respective
market. |
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Speculation period
| |
The period between the purchase and subsequent sale
of a security. Under current Austrian law, there is a one year speculation
period which has the following consequences: if securities held as
private assets are sold within a year of their purchase, any profit
in excess of the exemption limit is subject to income tax. |
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Subscription right
| |
With regard to a share, the right
of the "previous" shareholder to purchase new shares, which
are issued pursuant to a share capital increase, within the subscription
period (usually one or two weeks) at a favourable price (subscription
price) and at a set subscription ratio. |
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T
Type of investment
Type of investment
in the asset category "bonds & similar assets"
Type
of investment in the asset category "liquid funds"
Type of investment
in the asset category "other securities"
Type of
investment in the asset category "shares & similar assets"
U
V
Value date
| |
The date from which interest calculations begin. For
credit entries (deposits), the value date is generally the next business
day. For debit entries, the value date is normally the same business
day the debit entry is made. |
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W
Warrant
| |
Type of investment in the asset category "shares
& similar assets". Like options, warrants evidence the right
to purchase or sell a certain asset at a set price within or at the
end of a certain period. But while options are highly standardised,
warrants can reflect the particularities of individual issuers. |
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Withholding tax
| |
A general term for taxes on income from capital assets
that are deducted directly at the "source", i.e. before
the income is distributed to the investor. Example: capital yield
tax on dividends. |
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Withholding taxes
X
Y
Yield
| |
The total profit of an investment during a specified
period, based on the capital invested and expressed in terms of per
cent. |
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Z |
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