Investment strategy where fund managers attempt to achieve excess returns compared to a benchmark through targeted selection and weighing of securities.

Metric that measures the excess return of an investment compared to a benchmark (such as a market index). A positive alpha means the investment strategy performs better than the reference index – the central goal of active management.

The strategic weighting of different asset classes within a portfolio with the aim of balancing risk and return in line with investment objectives.

An asset class refers to a group of investment types with similar characteristics and comparable risk‑return profiles, such as equities, bonds, real estate, or commodities.

A metric that describes the typical degree of price fluctuation of a security or index over a specified period. It is usually calculated as the average standard deviation of returns across that time frame and expressed as a percentage. High average volatility indicates strong price swings and therefore higher risk, while low average volatility suggests more stable price movements.

This index reflects the performance of euro denominated corporate bonds. The index includes only investment grade bonds with a minimum remaining maturity of one year. Each bond must have an outstanding amount of at least 300 million euros to be eligible for inclusion. Further information on the index and on the general methodology of the Bloomberg indices can be found at https://www.bloombergindices.com/.

Financial service provider who executes the purchase and sale of securities on behalf of investors. Brokers establish the connection between investors and exchanges, enabling them to trade ETFs, stocks, and other securities.

The CME is one of the world's largest futures exchanges for financial derivatives (futures and options), trading various types of financial instruments, including interest rates, stocks, currencies, and commodities.

Investment strategy where a large portion of the portfolio (core) is allocated to broadly diversified investments, while smaller portions (satellites) are invested in more specialized strategies.

A statistical measure that quantifies the degree of linear relationship between two securities or asset classes. Correlation is expressed on a scale from -1 to +1, where +1 indicates a perfect positive correlation (both move in the same direction), -1 indicates a perfect negative correlation (both move in opposite directions) and 0 indicates no correlation.

The cost‑average effect describes the phenomenon whereby regular investments of a fixed amount at different price levels can result in a lower average entry price over time.

Refers to a borrower’s ability and willingness to meet financial obligations in full and on time.

The yield premium investors receive for holding bonds that carry default risk compared with risk free securities. This premium compensates for the possibility that the issuer of a debt security may not meet its payment obligations. The size of the credit spread depends on the issuer’s credit quality and has a significant impact on the total return of corporate bonds and other risk bearing debt instruments. It represents a key incentive for investors to take on additional risk relative to top rated government bonds.

Amount that a company distributes to its shareholders per share as a profit share. This key figure is proposed by the company management and decided upon by the shareholders at the annual general meeting. It forms the basis for calculating the dividend yield.

Duration measures the average capital commitment period and the interest rate sensitivity of a bond, expressed in years. The higher the duration, the more strongly the price reacts to changes in interest rates. Modified duration indicates the percentage change in price resulting from a one percentage point change in market interest rates.

Fixed‑income securities issued by governments, government‑related entities, or companies from emerging markets. They generally offer higher return potential but may also involve increased risks, such as currency, economic, or political risks.

ETCs are generally collateralised debt securities backed by one or more underlying assets. ETCs can be traded on an exchange.

A fund traded on an exchange that typically tracks an index or follows a defined investment strategy.

The central reference interest rate for the European money market, reflecting the average rate at which banks in the euro area lend short term, unsecured euro funds to one another. It is determined on each trading day by the European Money Markets Institute, which collects the interest rate submissions from a panel of selected major banks within the euro area. The EURIBOR is calculated and published for a range of different maturities.

Eurex is one of the world's largest futures exchanges for financial derivatives (futures and options), trading various types of financial instruments, including interest rates, stocks, currencies, and commodities.

Class of bonds with a fixed maturity and regular interest payments. These include various forms of bonds such as government bonds, corporate bonds, or covered bonds. The issuer who issues the security generally commits to predefined interest payments and repayment of the nominal value at the end of the term.

Class of bonds with a fixed maturity and regular interest payments. These include various forms of bonds such as government bonds, corporate bonds, or covered bonds. The issuer who issues the security generally commits to predefined interest payments and repayment of the nominal value at the end of the term.

The FTSE All‑World is a global equity index that tracks the performance of large- and mid-cap companies from developed and emerging markets worldwide and is frequently used as a benchmark for the global equity market.

The FTSE All‑World ex U.S. is a global equity index that tracks the performance of large- and mid-cap companies from developed and emerging markets worldwide, excluding U.S. equities.

A future or forward is a standardised derivative contract that obliges the buyer and seller to transact a specified underlying asset at a predetermined price on a set future date. Futures are traded on regulated exchanges, centrally cleared, and subject to daily margining, which mitigates counterparty risk. Contract terms such as size, maturity, and settlement are fixed by the exchange, enhancing liquidity and price transparency. 

In a finance context, an economic situation that is “just right”—not too hot (overheating, high inflation), not too cold (recession), but ideal for growth and stable markets.  

Bonds are fixed‑income securities with a defined maturity that provide predetermined interest payments over a specified period. Government bonds are public‑sector bonds issued by sovereign states. Governments finance part or all of their budget deficits through the issuance of such bonds.

A risk management strategy aimed at reducing investment risks such as credit or market risk, or specifically limiting fluctuations in exchange rates (currency hedging).

High yield bonds – also known as non‑investment‑grade bonds – are corporate bonds rated below investment grade by rating agencies. Due to the higher default risk, these bonds typically offer higher yields than bonds with higher credit quality.

This index reflects the performance of euro denominated floating rate notes (FRNs). The index includes only short term bonds with a remaining maturity of 0 to 3 years that are issued by investment grade issuers. To ensure broader market representation, the weighting of individual issuers within the index is limited. Further information on the index and on the general methodology of the Markit iBoxx indices can be found at https://www.markit.com.

This index reflects the performance of euro denominated government bonds issued by governments of the Eurozone. The index includes only investment grade bonds with a minimum remaining maturity of one year, thereby enabling exposure across the entire yield curve. Each bond must have an outstanding amount of at least 1 billion euros to be eligible for inclusion in the index. Further information on the index and on the general methodology of the Markit iBoxx indices can be found at https://www.markit.com.

Figure that represents the performance of a specific market or market segment. A price index reflects only the price development of a market, while a performance index additionally accounts for dividends and other returns such as interests. Indices serve as reference points for market developments and as benchmarks for evaluating investment strategies.

Trading of securities during official exchange trading hours on a trading day.

Collective investment vehicle that pools capital from many investors and invests according to a defined strategy. A fund manager invests the pooled funds in various securities – which can be stocks in equity funds or bonds in fixed income funds.

International Securities Identification Number – international securities code that uniquely identifies securities worldwide. It consists of 12 alphanumeric characters and follows a standardized format of country code, base number, and check digit.

This term refers to a leading economic indicator from the Institute for Supply Management that tracks incoming demand for goods and services, signaling future business activity and GDP growth.  

The issuer is the entity that issues a security – such as a state, company, or financial institution – and is responsible for fulfilling the economic obligations to investors.

The risk that the issuer of a security fails to meet its contractual obligations in whole or in part, for example if interest or principal payments are not made due to insolvency.

Large caps are large publicly listed companies with high market capitalization, typically above USD 10 billion. These companies often hold established market positions (frequently industry leaders) and tend to offer greater stability, though with lower growth potential. Large‑cap stocks represent around 98.5% of the U.S. equity market and are commonly used as core investments due to their stability, transparency, and generally reliable dividends. The term “cap” is short for “capitalization.”

The London Bullion Market Association is an international trade association for precious metals and the global authority on the London gold and silver market. Founded in 1987, it sets standards for the trading, production and storage of gold and silver. The LBMA's most important seal of approval is the ‘Good Delivery’ certificate, which is awarded to refineries for compliance with strict purity and quality standards, thus giving investors certainty about the quality of the bars.

This metric describes the total value of a company’s outstanding shares, calculated by multiplying the current share price by the number of shares in circulation. Free‑float‑adjusted market capitalisation takes into account only those shares that are freely tradable. Shares held in stable ownership (e.g. by major shareholders, governments, founding families or strategic investors) are excluded. Weighted market capitalisation refers to a company’s market capitalisation multiplied by a weighting factor that may reflect, for example, free float, capping limits or index rules.

Mid caps are companies with a medium market capitalization, typically between 2 and 10 billion USD. They are generally considered more stable than small caps, while potentially offering a more favourable risk-return profile. The term “cap” is short for “capitalization,” meaning market capitalization.

The MSCI World IMI is a global equity index that tracks the performance of large, mid- and small-cap companies from developed markets worldwide. By including all three size segments, the index covers a very large portion of the free‑float market capitalisation of these markets.

An investment approach that takes multiple asset classes into account, such as equities, bonds, alternative investments, and others.

Refers to the regular adjustment of portfolio weightings through the buying or selling of investments in order to restore the originally defined asset allocation.

A US tax rule that makes sure foreign investors pay US withholding tax on dividend-like payments from US shares—even if they use financial products (like swaps or synthetic ETFs) instead of owning the shares directly.

Companies that invest in real estate and are legally required to distribute a large proportion of their profits—often at least 90%—to investors as dividends. As a result, REITs resemble real estate funds with equity‑like characteristics.

Small caps refer to shares of companies with a relatively low market capitalisation, typically below 2 billion USD. These companies are often younger, less established, and operate in niche markets. They may offer higher growth potential but are also associated with greater risks, including higher volatility, lower liquidity, and reduced analyst coverage. Small caps often react more strongly to domestic economic developments than to global market trends and can therefore contribute to portfolio diversification. Small‑cap indices specifically track this segment of the market. In technical terms, this segment is also referred to as secondary market segments.

This index reflects the performance of a deposit remunerated at the short-term euro interest rate (€STR), plus a spread of 8.5 basis points. The interest earned is reinvested on a daily basis. Further information about the index and the underlying methodology is available at https://www.solactive.com and https://www.ecb.europa.eu.

The current market price of a security or commodity for immediate delivery and payment. In contrast to futures contracts, where delivery takes place at a later date, the spot price refers to transactions with immediate settlement (usually within two business days).

A type of derivative in which an agreement is made between two parties to exchange cash flows for a specified period of time.

Synthetically replicating ETFs do not directly hold the securities of the index, but rather a basket of collateral and use derivatives, usually swaps (exchange agreements), to track the performance of a reference index. The ETF exchanges the performance of the securities held as collateral by the ETF with the counterparty for the return of the index to be replicated, less variable costs (also known as swap spreads), which depend on current market conditions. Synthetically replicated ETFs provide access to markets that are difficult or impossible for physically replicated ETFs to access, such as commodity markets or certain emerging markets.

The total expense ratio includes the base fee and the currency‑hedging fee. The base fee covers certain administrative expenses, including the determination agent fee, the custodian fee, the program manager fee, the trustee fee, and the listing agent fee. The currency‑hedging fee covers the costs associated with providing the currency‑hedged exposure. In some documents, the total expense ratio is also referred to as the product fee or the total expense ratio.

Shows the difference between the net performance of an ETF and the performance of the benchmark index that the ETF tracks over a specific period.

Council Directive 85/611/EEC of 20 December 1985 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities.

The UCITS Directive is a European regulation governing investment funds, which strengthens investor protection through uniform standards and the principle of risk diversification. It lays down rules on the types of assets in which funds may invest and requires comprehensive information to be provided to investors, such as prospectuses and reports.

A class of bonds with a fixed maturity but interest payments that adjust periodically. Instead of paying a constant coupon, the interest rate is linked to a reference interest rate, such as LIBOR or EURIBOR, and is updated at regular intervals (for example every three or six months). These bonds can include various types such as government, corporate, or covered bonds. The issuer commits to repaying the principal at the end of the term, while the interest payments vary over time in line with market conditions.

A measure of how much the price of a security or index fluctuates over a given period. It is usually calculated as the standard deviation of returns and expressed as a percentage. High volatility indicates larger price swings and therefore higher risk, while low volatility suggests more stable price movements.

Securities identification number – six-digit alphanumeric code for uniquely identifying securities in the German market.

Return investors earn from an investment, such as interest or dividends.