Glossary


Offshore fund	An investment fund with its legal domicile in a country which offers tax exemption or tax breaks (such as the Bahamas, Bermuda). In Switzerland only offshore funds from countries which have comparable fund supervision to Switzerland’s are allowed to be sold publicly.
Open-end fund	An investment fund with variable capital which can continually issue new units but which must also redeem the units issued upon request at their net asset value. Swiss investment funds, except for real estate funds, are open-end funds.
Opportunity Portfolio	The Opportunity Portfolio is that part of the portfolio of a (dynamic) capital preservation fund that invests in international financial markets with the aim of participating in the movements on these markets. Investments are usually made in foreign-currency bonds and in equities.
Options	The buyer of an option acquires the right – but not the obligation – to buy (call option) or sell (put option) a specified amount of a certain underlying instrument at a predetermined price on or by a specified future date. The buyer pays the seller of the option a premium (option price) for this right.
Ordinance of the Federal Banking Commission on Investment Funds	Investment Fund Ordinance issued by the Federal Banking Commission (IFO-FBC) on 27 October 1994, which contains detailed provisions regarding the Investment Fund Act.
Other funds	Investment funds which are neither securities funds nor real estate funds. They may contain investments which have limited marketability, are subject to greater price swings, have a limited diversification of risk or which are difficult to value (e.g. investments in precious metals, commodities, options, forward contracts, units of other investment funds and other rights).
Other funds with special risks	Investment funds which, unlike funds in the other funds category, have a special risk which is not comparable to the risk of securities funds. There must be explicit reference to this fact in the fund name, the prospectus and in advertisements. The units of such funds may only be sold on the basis of a written agreement in which the special risk is stated.

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