Time horizon – The amount of time that you expect to stay invested in an asset or security. Short-term investment – Asset purchased with an investment life of less than a year. Share classes – Classes represent ownership in the same fund but charge different fees. This can enable shareholders to choose the type of fee structure that best suits their particular needs. Relative risk and potential return – The amount of potential return from an investment as https://transmarana.solbyte.dev/canpeak-resources-review-2025-a-reliable-pathway/ related to the amount of risk you are willing to accept.
Prospectus – Formal written offer to sell securities that sets forth the plan for proposed business enterprise or the facts concerning an existing one that an investor needs to make an informed decision. Prospectuses are also issued by mutual funds, containing information required by the SEC, such as history, background of managers, fund objectives and policies, financial statement, risks, services and fees. Ownership of property, usually in the form of common stocks, as distinguished from fixed-income securities such as bonds or mortgages. The value of investments and the income derived from them may rise as well as fall, and investors may not get back the amount originally invested.
Standard Deviation – A statistical measure of the degree to which an individual value in a probability distribution tends to vary from the mean of the distribution. Sector – A group of similar securities, such as equities in a specific industry. R2 – The percentage of a fund’s movements that result from movements in the index ranging from 0 to 100. A fund with an R2 of 100 means that 100 percent of the fund’s movement can completely be explained by movements in the fund’s external index benchmark.
ICI Commends House Passage of the INVEST Act
Market Cap – Most indexes are constructed by weighting the market capitalization of each stock on the index. In such an index, larger companies account for a greater portion of the index. Value stock – Typically an overlooked or underpriced company that is growing at slower rates. United Nations-convened Net-Zero Asset Owner Alliance – An international group of institutional investors delivering on a commitment to transition investment portfolios to net-zero GHG emissions by 2050.
- EPS – The portion of a company’s profit allocated to each outstanding share of common stock.
- Sustainability-Linked Bonds (SLB’s) – Bond instrument for which the financial and/or structural characteristics can vary depending on whether the issuer achieves predefined Sustainability/ ESG objectives.
- Securitisation involves bundling the cash flows from various loans, such as mortgages, car loans and credit card payments, into bonds.
- P/E Ratio (1 yr trailing) (long position) – Price of a stock divided by its earnings from the latest year.
- Also, a method of calculating an investment’s return that takes share price changes and dividends into account.
Investment & Capital Markets
Climate action 100+ – An investor-led initiative to encourage better climate disclosures and emission reduction strategies for a group of large greenhouse gas-emitting companies. Capital gain – The difference between a security’s purchase price and its selling price, when the difference is positive. In general, someone is bullish if they believe the value of a security or market will rise.
EU participation in international forums
Fixed income security – A security that pays a set rate of interest on a regular basis. Corporate engagement – Shareholders entering into discussions with company management in order to better understand the company’s management of certain risks and/or to influence a company’s decision making process. The EU agreed in November 2015 on a reformed investment dispute settlement approach to stay up-to-date with the highest standards of legitimacy and transparency.
Portfolio allocation – Amount of assets in a portfolio specifically designated for a certain type of investment. Interest-rate risk – The possibility of a reduction in the value of a security, especially a bond, resulting from a rise in interest rates. Investment stewardship – Engaging with companies and voting proxies to ensure our clients’ interests are represented and protected and the company is focused on responsible allocation of capital and long-term value creation. Financial materiality – An event or information that are reasonably likely to impact the financial condition or operating performance of a company and should be considered during the investment decision-making process.
Dollar cost averaging – Investing the same amount of money at regular intervals over an extended period of time, regardless of the share price. By investing a fixed amount, you purchase more shares when prices are low, and fewer shares when prices are high. Dividend reinvest NAV – Dividends paid to the shareholder of record that are automatically invested in more shares of the security or mutual fund that are purchased at the security’s net asset value.
Sharpe Ratio – A risk-adjusted measure that measures reward per unit of risk. The numerator is the difference between the Fund’s annualized return and the annualized return of the risk-free instrument (T-Bills). Renewable Energy Certificates (RECs) – A market-based instrument that is issued when one megawatt-hour of electricity is generated and delivered to the electricity grid from a renewable energy resource.