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.

Group of investments that share similar characteristics, behave similarly in the market, and are subject to the same laws and regulations. Common asset classes include equities (stocks), fixed income (bonds), cash or money market instruments, real estate, commodities, and alternative investments.

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.

Credit quality is a measure of the financial solvency of an individual or an entity such as a company or a government. Specifically, it is an evaluation of the ability of that person or entity to repay their debts.

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.

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.  

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.  

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 publicly traded companies with medium‑sized market capitalization, typically between USD 2 billion and USD 10 billion. As the name suggests, they sit between large‑cap and small‑cap companies. Mid‑cap firms are often in the middle of their growth cycle and are expected to expand their earnings, market share and productivity over time.

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.

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.

Small caps are shares of companies with relatively low market capitalization, typically below USD 2 billion. These companies are often younger, less established and active in niche markets. They may offer higher growth potential but also carry greater risks — including higher volatility, lower liquidity and less analyst coverage. Small caps often react more strongly to domestic economic conditions than to global market trends and can therefore contribute to portfolio diversification. Small‑cap indices track this segment specifically. This term is also referred to as “secondary markets.”

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.

A metric that represents the total annual cost of an ETF as a percentage of its fund assets. The TER includes all ongoing expenses such as management fees, licensing costs and operational costs. It is the key metric used to compare costs across ETFs.

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.

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.