Glossary


Macroeconomics	In macroeconomics, the development of the economy as a whole is studied. Sectors and regional economic systems are looked at rather than individual economic units.
Management fee	The charge levied by the management company for the administration of an investment fund. The amount of the fee is expressed in percentage or tenth of a percentage of the fund assets or in basis points. Less comprehensive than UBS’s all-in fee and covers only part of the costs due.
Management style	Manner in which the investment decisions are made to achieve the investment objective.
Market capitalisation	The market value of a listed company, corresponding to the current market price of its shares multiplied by the number of all the equity securities in circulation.
Market risk	Risk that depends on factors which influence the whole market and which cannot be reduced or excluded by diversifying the portfolio.
Market value	The current value of a property, assessed by independent experts, which would be obtained were the property to be sold in a conscientious manner at the time of the valuation. Valuations are generally carried out once a year in accordance with the valuation method used by the fund management company.
Maturity	Period of time from the issue of a bond to its due date or to the premature repayment of the bond. Not to be confused with duration. See also term to maturity.
Medium-term fund	At UBS, investment funds which invest in bonds with a (term to) maturity of 3–5 years.
Medium-term notes	Fixed-income investment instruments issued by banks, with maturities between two and eight years. Bond funds cannot invest in medium-term notes as they are not permitted for official stock exchange trading.
Mid caps	Companies with medium-sized market capitalisation. Also called secondary stocks.
Money market funds	Investment funds which invest in short-term fixed-interest paper (less than a year to maturity) in specific currencies.
Money market instruments	Securities with maturities of no more than one year which are traded on the money market. The classic money market instruments in Switzerland are domestic bills of exchange, treasury bills and treasury notes. Key foreign investments include commercial paper and certificates of deposit.

Top