Glossary


Large caps	Companies with very large stock market capitalisation in relation to the market on which they are traded.
Late stage	Late-stage financing refers to mature companies that have been in existence for some years. Such investments typically involve relatively large amounts, but are more liquid and less risky, as the companies can be sold more quickly or floated on the stock exchange.
Leader	Leading company which is the best in its sector in terms of environmental and social performance.
Leverage	With derivative instruments, greater returns can be earned with a comparatively low capital investment than with an investment in the actual underlying instrument. This effect is called leverage.
Liquidity	Units of investment funds enable the unit holders to remain liquid, i.e. they can redeem their units as a rule at any time. The management company is obliged to redeem the units at the current redemption price without any notice of termination.
Listing	The admission of a security to official trading on a stock exchange, which is usually subject to the fulfilment of certain criteria. UBS’s real estate funds are listed on the Swiss Exchange.
Long/short	The strategies that come under this heading invest in a combination of different financial instruments to optimise risk and return. The purchase of an equity that promises an increase in value (long) is combined with the sale of another equity where the value is expected to fall (short). Short selling and credit financing for investments are explicitly permitted.
Long-term funds	An investment fund which invests in bonds with a (term to) maturity of at least 5 years.
Luxembourg-based funds	An investment fund established under Luxembourg law and managed by a management company domiciled in Luxembourg.

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