Our Glossary
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| Financial Economic Indicators | Standard indicators from financial business practice. They are used mainly for business or sector comparisons over several periods. Their basis is the balance sheet and the profit and loss statement for historical periods included in the analysis. To improve the information value, the individual indicators must be further classified or contrarily, other indicators must be added for clearer explanations. The information value of the analysis prepared based on the indicators is increased by using a system of indicators, since it absorbs in itself a systematic approach and excludes spontaneous decisions about which indicators should be included in the analysis and which should not. |
| Financial Index | Statistically expressed value of selected financial instruments (shares, bonds). |
| Financial Markets | All the markets in which financial funds and securities are traded. |
| Floater | A bond with a floating interest rate. The yield of this bond is usually linked to a reference interest rate and is determined at regular dates. Risks – see Bonds |
| Forward | An investment (fixed-term/derivative) instrument in the form of a non-standardised agreement between two parties to buy or sell the underlying asset at a predetermined price, settled at a future date. Here, in addition to the risks associated with products of derivative type, also the counterparty risk is included. |
| Fund Assets | The value of assets is calculated based on the market value of all assets included in the fund’s portfolio as at a particular date. |
| Fund Statute / Fund Prospectus | Statute (or prospectus, in the case of funds registered abroad) is the fundamental document of the fund. It contains information about the investment policy focus and objectives, the method of use of yields, principles of the fund’s assets management and information on the investment company. The statutes of all Czech funds are approved by the Czech National Bank. |
| Fund’s Business Assets (NAV – Net Asset Value) | Business assets of the fund mean the total assets of the mutual fund. It consists of securities and other rights, account balances and deposits, claims for yields (yield compensation), but may also contain fixed-term financial instruments (such as options, futures, swaps, etc.). On the other hand, business assets reduce loans and other liabilities. The fund’s business assets are the sole property of the shareholders and the investment company is only its manager. Therefore, the fund’s assets remain in the hands of the shareholders even in the case of liquidation of the investment company or the depository. |
| Funds Focused on Shares of New Companies | Mutual funds that are primarily focused on investments in shares of newly founded companies. There is a relatively high risk of bankruptcy in these companies, but in some of them there will be a significant increase in their value and thus in the value of their shares in the short term. For these reasons, however, this risk of these funds is higher. |
| Funds of Funds | Mutual funds that invest in share certificates of other funds. The particular composition of the portfolio and the resulting risks depend on the focus of the fund. |