Our Glossary

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Participation certificates	With a participation certificate, you can directly benefit from the development of the underlying instrument. Participation certificates are comparable to index certificates, they differ by their underlying. While index certificates have an equity index as underlying, the underlying of a participation certificate can be something else like an equity basket or a commodity (e.g. gold).
Passive Portfolio Management	It is based on an effective behaviour of capital markets. The aim is to achieve a rate of return, which exactly replicates the set benchmark.
Payment of Yields	The payment is made up by the yields achieved within a given period. In funds with yield payment, the yields are paid mostly once a year. The yields are gathered in the fund’s assets up to the date of payment and thus increase the share value during the year. By making the payment, the value of the share is reduced on the payment date by the amount paid.
Performance	See Performance
Performance	Yield of an investment over a period of time (usually indicated as a percentage per annum). Previous performance of an investment instrument may be a guide for investors, however, it does not guarantee the same performance in the future.
Political Risk	Means the risk of changes of the price or negotiability of financial instruments due to changes in the political situation.
Portfolio	Composition of the investment. In open-end mutual funds, it is a summary of investment instruments owned by the fund.
Portfolio Management	A method of managing the composition of a securities portfolio mainly in terms of yield and risk diversification.
Portfolio Turnover Ratio (PTR)	The rate (speed) of portfolio turnover (portfolio turnover rate) measures the amount of trade during the monitored period (usually a year).
Portfolio Turnover Ratio (PTR)	The indicator of the assets turnover ratio indicates how often and to what extent the mutual fund’s portfolio is modified. The closer the turnover ratio indicator to zero, the much more closely the conducted asset transactions are related to the purchases and sales of share certificates by investors.

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